Education Department to Release Billions in Withheld Grant Money After Review
The Education Department announced on Friday, July 25, 2025, that it will release billions of dollars in grant money that had been withheld from schools. This decision comes after the Office of Management and Budget (OMB) completed its review of the programs.
The funds are expected to begin flowing to states the week of July 28, 2025. This announcement follows a partial release of $1.3 billion specifically for after-school and summer programming that occurred the previous week.
Initial Suspension and Review
The Trump administration initially suspended more than $6 billion in federal education funding on July 1, 2025. The administration stated that a review was necessary to ensure the spending aligned with White House priorities. According to the OMB, there were concerns that some programs supported a "radical leftwing agenda."
Bipartisan Pressure to Release Funds
The withholding of funds led to significant uncertainty among educators and prompted several lawsuits. It also triggered bipartisan calls from Congress for the funds to be released. On July 16, 2025, a group of 10 Republican senators sent a letter to the administration, urging them to release the frozen education money.
U.S. Sen. Shelley Moore Capito (R-W.Va.) stated, "The programs are ones that enjoy longstanding, bipartisan support." The senators emphasized the importance of these programs to local communities.
The GOP senators responded in their letter: "We share your concern... However, we do not believe that is happening with these funds."
Details of the Released Funds
The grants under review included approximately $2 billion for teachers' professional development and efforts to reduce class size (Title II-A), $1 billion for academic enrichment grants (Title IV-A), often used for science and math education, $890 million for students learning English (Title III-A), $375 million for migrant education (Title I-C), and $376 million to educate the homeless.
Last week, prior to July 25, 2025, the Education Department released $1.3 billion in Title IV-B funds for after-school and summer programs.
Stakeholders and Their Reactions
The key stakeholders involved in this situation include the Trump Administration, the Education Department, the Office of Management and Budget (OMB), school districts, nonprofits such as the YMCA and Boys and Girls Club of America, members of Congress, and educator associations.
School districts and nonprofits were directly affected by the freeze, as they rely on these grants for vital programs, including English language instruction, adult literacy, teacher professional development, academic enrichment, and after-school and summer activities. Many had warned they would have to close programs or scale back offerings if the funds were not released.
Educator associations, such as AASA and the American Federation of Teachers (AFT), expressed relief at the announcement. AFT President Randi Weingarten thanked Congress for their efforts in securing the release of the funds.
Controversy and Public Reaction
The decision to withhold congressionally appropriated funds based on the OMB's assertion of a "radical leftwing agenda" sparked significant backlash and legal challenges. Educators, school districts, and organizations expressed strong concerns about the immediate and long-term impact on critical programs and services. The uncertainty led to warnings of employee dismissals and scaling back essential educational offerings.
Terms of the Release
A senior administration official confirmed the release, stating, "The programmatic review is over. Funds will be released to the states," and that "guardrails are in place to ensure these funds will not be used in violation of Executive Orders or administration policy."
