Billions in withheld grant money for schools to be released, $800 million in California
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- Billions of dollars in grants to schools that had been withheld by the Trump administration will be released, the Education Department said.
- An estimated $800 million in California funds had remained frozen.
- California and other states had sued the administration last week to release the money.
The Trump administration is releasing billions of dollars in grants to schools for adult literacy, English language instruction and other programs, including at least $800 million for California alone.
On July 1, the administration withheld the education funds — already appropriated by Congress — as it conducted a “programmatic review” about how the money was being spent and whether it complied with President Trump’s priorities, policies and executive orders. The actions disrupted school districts throughout the country — including in Republican-led states — that were depending on the release of the funds.
The funding freeze had been challenged by at least two major lawsuits, including one from California and other states in which Atty. Gen. Rob Bonta played a key role in filing.
Nationwide, the release is estimated to total between $5 billion and $6 billion.
The federal Office of Management and Budget “has completed its review,” Madi Biedermann, a spokesperson for the U.S. Department of Education, confirmed Friday. The Education Department “will begin dispersing funds to states next week.”
The department provided no further elaboration.
The latest announcement comes one week after the Trump administration said it would release $1.3 billion of similarly withheld funds, including about $158 million for California.
The full amount withheld — and now released — totaled close to $7 billion and was part of a budget bill signed earlier this year by Trump. But despite the president’s signature, the administration held back the funds.
The unexpected hold upended school system budgets that already had programmed the funding, including by hiring staff.
Some school districts, including Los Angeles Unified, floated ongoing programs using money intended for other purposes. This funding shift preserved efforts such as a summer program at the L.A. Zoo that provided enrichment and academic catch-up for the children of low-income seasonal agricultural workers who must frequently move from place to place.
On Friday, state officials and L.A. Unified confirmed that this migrant education program was among those with funding restored, at least in the near term.
The Trump administration has identified the program as too costly and also a potential diversion of taxpayer funds to help people who are not legal U.S. residents.
Some conservatives supported the defunding on the principle that such programs should be paid for with state and local resources.
“We are pleased that the federal government is releasing the funds — as it should,” said L.A. schools Supt. Alberto Carvalho. “Public schools will now receive the resources already appropriated by Congress for the 2025-26 school year. This is not only necessary — it’s the right thing to do. These funds help us avoid making impossible choices that would impact students, educators, and communities.”
In all, L.A. Unified tallied at least $123 million in funding that was planned for, but suddenly pulled back.
- Support services for migrant students ($1.4 million)
- Training for teachers ($30.2 million)
- Support for English learners ($10 million)
- College and career support ($45.4 million)
- After school programs ($23.2 million)
- Support for adults to learn English as a second language and civics ($12.9 million)
Many other school systems immediately began to make cuts — which affected summer programs for students while also leading to layoffs just before the start of the new school year.
Without the money, school districts and nonprofits such as the YMCA and Boys & Girls Clubs of America had said they would have to close or scale back educational offerings this fall.
California Supt. of Public Instruction Tony Thurmond applauded the funding release, sharply criticized the Trump administration and looked cautiously forward.
“If we finally receive grant notifications next week, we will review them carefully,” Thurmond said. “We are hopeful that the administration follows through on their announcement and quickly sends us these dollars that were appropriated by Congress ... so that we can use them to serve our students.”
Widespread calls to restore money
The blowback to the funding hold was bipartisan — as members of Congress from both parties and others called for the administration to release the money.
The administration alleged instances of what it considered to be noncompliance in support of a “radical left-wing agenda,” such as academic instruction in languages other than English and also advocacy and assistance for immigrants without legal status to live in the United States.
The administration did not present evidence that these alleged uses of federal funding were widespread.
The lawsuit filed by a coalition of states, including California, called the action “unconstitutional, unlawful and arbitrary.”
Another lawsuit included the Anchorage School District, Cincinnati Public Schools, several state teachers unions and the Florida PTA.
“While this development shows that legal and public pressure can make a difference, school districts, parents, and educators should not have to take the administration to court to secure funds for their students,” said Skye Perryman, president and chief executive of Democracy Forward, which had organized the latter litigation.
Trump is holding back funds to help educate English learners and the children of migrant seasonal workers. The cuts total at least $811 million in California.
The Trump administration began to release the funds days after 10 Republican senators sent a letter imploring it to do so.
Sen. Shelley Moore Capito (R-W.Va.) was among those calling for the release of the grants.
“The programs are ones that enjoy long-standing, bipartisan support,” she said. She pointed to after-school and summer programs that allow parents to work while their children learn and classes that help adults gain new skills — contributing to local economies.
States sue over billions in federal education funding that was supposed to begin flowing July 1. Trump officials are reviewing the congressionally approved funding.
The held-back funds were tied to programs that, in some cases, have received these dollars for decades. Each year the U.S. Department of Education makes around 25% of the funds available to states on or about July 1. This permits school districts to begin or continue their efforts in these areas.
The long-term funding outlook remains in doubt. Many of these programs or funding areas remain targeted for elimination in the proposed budget for the next funding cycle.
For supporters of the Trump agenda, these changes represent important cost savings and needed reforms. But critical advocacy groups, including EdTrust, sounded an alarm.
“While some funding is being restored today, the president’s proposed budget would cut additional education investments and eliminate crucial programs altogether,” EdTrust said in a statement.
The Associated Press contributed to this story.
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