Trump administration says it is releasing the rest of the education funding it froze last month

About $6.8 billion appropriated by Congress for states and local districts was supposed to be distributed on July 1.
July 25, 2025
2 min read

The Trump administration has decided to release billions of dollars in frozen education funds after weeks of widespread outcry about the devastating effects the freeze was having.

Chalkbeat reports that the White House Office for Management and Budget (OMB) says it has completed its review told the U.S. Education Department to release the money.

The Trump administration notified states on June 30 that it would be holding back roughly $6.8 billion in education funds that were due to arrive July 1. That money includes funding for services related to English learners, migrant students, teacher training, enrichment and afterschool programs, and adult education.

Allison Socol, vice president of EdTrust, says the release of the funds is a major victory for students.

“But to be clear, this funding should never have been held hostage in the first place," Socol said. "President Trump and [Education] Secretary McMahon have treated America’s students like unwitting characters in a reality TV show. It took an overwhelming wave of bipartisan and public pressure to get them to do what the law requires."

The National Education Association says the funding freeze has undermined planning, staffing and support services at schools across the nation.

“Playing games with students’ futures has real-world consequences," says NEA President Becky Pringle. "School districts in every state have been scrambling to figure out how they will continue to meet student needs without this vital federal funding, and many students in parts of the country have already headed back to school."

Defending the initial decision to freeze funding, an OMB spokesperson contended that some money was being used to support a left-wing agenda, a charge that districts and states disputed.

Last week, the administration released $1.3 billion of the frozen funds, but said nothing about the rest of the money.

About the Author

Mike Kennedy

Senior Editor

Mike Kennedy has been writing about education for American School & University since 1999. He also has reported on schools and other topics for The Chicago Tribune, The Kansas City Star, The Kansas City Times and City News Bureau of Chicago. He is a graduate of Michigan State University.

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