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Trump Administration Frees $1.3 Billion in After-School Grants as $5 Billion Remains Frozen

Legal challenges continue as schools face budget uncertainty ahead of the new academic year.

Melissa Smith, executive director of South Baltimore Learning Center, stands outside its Federal Hill facility. On the doors are notices of the center’s temporary closure due to withheld federal funding. (Racquel Bazos/Staff)
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Overview

  • On July 18, the Department of Education released $1.3 billion for Title IV-B after-school and summer programs under compliance guardrails following bipartisan letters and lawsuits.
  • Roughly $5 billion in adult education, English learner, migrant and other K-12 grants remain paused pending a programmatic review over alleged “leftwing radical” uses.
  • Coalitions of states, school districts and teachers’ unions have filed multiple lawsuits in Rhode Island and elsewhere, accusing the administration of illegally withholding congressionally approved funds.
  • Sen. Lisa Murkowski and other Republican senators warned that prolonged delays could lead to school closures, layoffs and cuts to critical programs in high-poverty areas.
  • Districts nationwide are scrambling to finalize fiscal 2025-26 budgets and contingency plans given uncertainty over when the remaining funds will be released.