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Trump Administration to Release Over $5 Billion in Frozen Education Funds

ByYasmeeta Oon

Jul 29, 2025

Trump Administration to Release Over $5 Billion in Frozen Education Funds

The Trump administration has decided to release the remainder of nearly $7 billion in public school funding that was abruptly frozen earlier this month, following a programmatic review.

A senior administration official told CNN that the additional funds will now be distributed to states. The administration had previously announced the release of $1.3 billion from the frozen funds.

“Guardrails are in place to ensure these funds will not be used in violation of Executive Orders or administration policy,” the official added.

Impact of the Funding Freeze on Schools

The nearly monthlong pause caused a scramble for schools as they prepared for the upcoming fall semester and summer camps. Many programs faced immediate disruption, with some fearing they would not be able to remain open through the summer.

The funding supports K-12 programs including teacher education and recruitment, English language learner initiatives, student enrichment, and nonprofit learning centers partnering with schools. Much of this money benefits some of the nation’s most economically disadvantaged children.

Controversy and Legal Challenges

A day before the funds were due for release, the Department of Education sent program recipients a letter notifying them that funds would be withheld pending a review. The letter stated, “The Department will not be issuing Grant Award Notifications obligating funds for these programs on July 1 prior to completing that review.”

The administration claimed the funding was being used to promote “leftwing” ideologies and sought to review the spending accordingly. This move comes amid the Trump administration’s ongoing efforts to dismantle the Department of Education, with mass layoffs underway and potential budget cuts looming.

Following widespread backlash—especially from summer camps and nonprofit organizations like the Boys and Girls Club—the Office of Management and Budget released $1.3 billion of the nearly $6 billion earmarked for 21st Century Community Learning Centers (21st CCLC). These funds are critical for after-school and summer programs.

However, the remaining funds stayed frozen until this week’s announcement.

Earlier in the month, roughly two dozen Democratic-led states filed a federal lawsuit demanding the release of the funds, which Congress had already approved.

What The Author Thinks

Freezing billions in essential school funding with little notice is a reckless political gamble that directly harms children and communities relying on those resources. Regardless of ideological battles, education programs should not become pawns in political disputes. This delay risks eroding trust in government support for public education and jeopardizes the well-being of vulnerable students across the country.


Featured image credit: Wikimedia Commons

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Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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