Trump WH Withholding Billions in State Education Funding

The Trump administration said it will be withholding billions of federal dollars from state and local schools that were expected to be available Tuesday.

"The Department remains committed to ensuring taxpayer resources are spent in accordance with the President's priorities and the Department's statutory responsibilities," the Education Department wrote Monday in notices to states about its plans, Politico reported.

A Trump administration official told Politico Tuesday that the funding was part of a policy-related review and it was incorrect to characterize it as a "freeze."

The total amount affected nationwide is estimated between $5 billion and $6.8 billion, according to Newsweek, including at least $811 million for California and $396 million for Florida. Many of the states hired staff and planned programs expecting the money to arrive.

The move affects more than 10% of federal K-12 education funding delivered to states, Newsweek reported, endangering after-school initiatives, professional development for teachers, support for migrant families, and English language learning.

In an early version of his fiscal 2026 education budget request, Trump signaled his intention to streamline several federal education grants into a single block that states would get with fewer strict guidelines.

For English language learning, the administration wrote: "Parents, states and localities, not the federal government, are best suited to determine what evidence-based literacy instructional materials will improve outcomes for all students, without the unnecessary administrative burden imposed by the federal government."

In its notice to states, the administration listed the affected programs by their federal designation: Title III-A, for example, supports students who are learning English. Title I-C helps overcome the learning challenges of the children of migrant workers. Funds for programs were withheld, the Los Angeles Times reported.

The Times reported that an OMB official cited examples of funding allegedly being used improperly.

"This funding has been used to essentially advocate for illegal immigration," the official said, adding that in one instance there "was the production of this newcomer toolkit, which described illegal immigration as, quote, a healthy contribution to democracy."

In another instance, the official said, a large school system in the eastern U.S. "took some of this grant money, ostensibly to support English-language learners, to provide funding for illegal immigrant advocacy organizations, providing legal aid and other things to illegal immigrants. That was part of what already came up in our review, and why these funds are being held right now while we continue the review."

An administration official who asked not to be identified told Newsmax the notice is part of an ongoing review and that no final decisions had been made.

Members of the administration have argued the president doesn't have to spend all the money allocated by Congress, citing the Impoundment Control Act of 1974, which is the main legal mechanism for the president to delay or permanently cancel federal funding once it has been allocated by Congress. Lawsuits are expected to challenge the impoundment effort, with the American Federation of Teachers among those calling the move "illegal."