On July 25, 2025, the Office of Management and Budget confirmed that the Trump administration will release nearly $6 billion in K-12 education grant funding that was previously frozen on July 1, 2025, pending programmatic reviews.
See SLB 419 “Federal Withholding of Over $6 Billion in K-12 Grants Poses Immediate Challenges for School Districts” for our prior analysis on this issue.
This decision follows sustained advocacy and two legal challenges aimed at restoring access to critical funding for school districts. Further, it reflects the collective efforts of policymakers, educators, nonprofit leaders, and parent advocates who applied pressure to reinstate the funding.
The Funds
While the release is welcome news, it comes with a caveat: new federal safeguards will be implemented to ensure that the funds are not used in violation of current executive orders or administration policy directives.
Funds being released include:
• $1.3 billion for Title IV-B (21st Century Community Learning Centers) – for which disbursements are already underway
• $2.2 billion for Title II-A (Effective Instruction)
• $1.4 billion for Title IV-A (Student Support and Academic Enrichment)
• $890 million for Title III-A (English Learners and Immigrant Students)
• $375 million for Title I-C (Migrant Education).
Impact
The release of these funds brings major relief to school administrators who faced sudden budget disruptions, halted programming, and emergency restructuring as a result of the freeze. Districts can now re-engage long-planned initiatives that had been placed on hold.
Bottom Line For Schools
Districts should expect relief on both budget and planning fronts but must remain vigilant about federal compliance. As federal education policy continues to evolve, school leaders must stay informed of ongoing legal and political developments, review all federal funding uses for compliance with new restrictions, and continue advocating for the needs of students, teachers, and communities.
