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Trump Administration Releases $1.3 Billion in Grants as $5.5 Billion Remains Frozen

Legal challenges under the Impoundment Control Act are seeking to force release of the remaining $5.5 billion pending an undefined programmatic review.

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 restored $1.3 billion for 21st Century Community Learning Centers after-school and summer programs under new constitutional and Civil Rights guardrails.
  • Roughly $5.5 billion in congressionally approved K-12 grants for migrant, adult and English learner services remains on hold pending a presidential programmatic review.
  • Coalitions of school districts and teachers’ unions filed lawsuits on July 22 under the Impoundment Control Act and Administrative Procedure Act, arguing the administration lacks authority to withhold the funds.
  • Earlier bipartisan pressure, including letters from 10 Senate Republicans and a lawsuit by 24 states, helped secure the partial release of after-school funding.
  • The administration’s FY 2026 budget proposal seeks to eliminate dedicated funding for 21st CCLC programs, raising fresh concerns about the future of federal after-school and summer support.