White House to Release $5.5 Billion in Frozen Education

The White House is in the process of releasing approximately $5.5 billion in federal education funds that had been frozen since July 1, 2025. This decision comes after weeks of intense pressure from educators, bipartisan lawmakers, parents, and a series of lawsuits filed by states challenging the legality of the freeze.

Programmatic Review”: On June 30, the Trump administration’s Office of Management and Budget (OMB) notified states that it was withholding over $6 billion in congressionally approved education grants. The stated reason for the freeze was a “programmatic review” to ensure the funds aligned with the administration’s priorities.

“Radical Leftwing Agenda” Claim: An OMB spokesperson asserted that initial findings showed “many of these grant programs have been grossly misused to subsidize a radical leftwing agenda,” a claim widely denied by districts and states.

Affected Programs: The frozen funds were earmarked for various critical programs, including:

21st Century Community Learning Centers (CCLC): Supports before- and after-school, and summer enrichment activities, particularly in underserved areas (initially $1.3 billion released last week).Separately, the Government Accountability Office (GAO) recently concluded that the Department of Health and Human Services (HHS) violated federal law by withholding Head Start funds, adding to the legal pressure on the administration regarding federal funding freezes

Adult Education and Integrated English Literacy and Civics Education.

Disruption to Schools: The unexpected freeze caused significant chaos for school districts nationwide, many of whom had already finalized their budgets for the upcoming 2025-2026 academic year based on the expectation of these funds. This led to:

Cancellation of summer programs.

Halt on hiring processes and staff layoffs.

Reductions in planned services.

Budgetary uncertainty and scramble for alternative funding.

Reasons for the Release:

Widespread Outcry: Educators, school superintendents, parents, and advocacy groups loudly condemned the freeze, highlighting the severe negative impact on students and communities, especially in high-poverty areas.

Bipartisan Pressure: Republican senators joined their Democratic counterparts in urging the administration to release the funds, emphasizing that these programs enjoyed longstanding bipartisan support and were crucial for local communities.

Legal Challenges: A coalition of over 20 states, led by California, filed a federal lawsuit arguing that withholding the already appropriated funds was unconstitutional and violated administrative protocols. Another lawsuit was filed by a coalition of school districts, parents, teachers’ unions, and non-profit organizations.