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Trump Administration Releases $1.3 Billion in Frozen After-School Funding, Leaves $5 Billion on Hold

Bipartisan lawsuits prompted the Education Department to release funds under compliance guardrails

Education Secretary Linda McMahon, talks to her staff as they wait on the North Lawn of the White House for a TV interview, Tuesday, July 15, 2025. (AP Photo/Manuel Balce Ceneta)
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A student exits a bus as he arrives at Venice High School in Los Angeles, California December 16, 2015.  REUTERS/Jonathan Alcorn/File Photo
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Overview

  • On July 18, the Education Department released $1.3 billion for after-school and summer programs under the 21st Century Community Learning Centers initiative after completing an Office of Management and Budget review.
  • Roughly $5 billion in Congressionally approved K-12 grants for adult literacy, English instruction and enrichment programs remains frozen pending a broader OMB bias investigation.
  • Democratic-led states filed a lawsuit under the Impoundment Control Act and 10 Senate Republicans sent a letter to OMB arguing the funding pause harmed established bipartisan programs.
  • Nonprofits and school districts, including After-School All-Stars Las Vegas and the YMCA, warned the freeze threatened services for thousands of low-income students before today’s partial release.
  • Education associations and lawmakers such as AASA executive director David Schuler and Sen. Patty Murray urged the White House to free the remaining funds to ensure community providers can operate this fall.