Overview

• The Office of Management and Budget completed its review this week and ordered the Education Department to unlock more than $5 billion in frozen K-12 grant funding.
• The July 1 pause had held up over $6 billion in congressionally approved formula grants for after-school programs, English-learner support, teacher training and other services.
• A July 18 partial release of $1.3 billion for after-school and summer programs followed bipartisan pressure from Democratic-led state lawsuits and a letter from 10 Republican senators.
• School districts and nonprofits warned that without the money they would face program cuts or staff layoffs in initiatives run by entities like the YMCA and Boys & Girls Clubs.
• The Department will begin sending the remaining funds to states next week under new policy guardrails, clearing the way for schools to firm up plans for the 2025-26 school year.