Billions in approved federal K–12 education funds remain withheld by U.S. Department of Education

As of July 1, billions in federal education funds approved by Congress remain frozen by the U.S. Department of Education (ED), raising alarms among education advocates and state officials. These funds, intended to support summer and after-school programs for migrant students, English learners, and underserved communities, have yet to be distributed, despite being authorized in a continuing resolution passed in March and signed into law by President Trump.

In March of this year, Congress passed a continuing resolution that provides federal funding through the end of fiscal year 2025, which President Trump signed into law. This law includes approximately $45 billion to support K–12 students nationwide, with most funding targeted towards the country’s most underserved students. On June 30, states were notified by the Department of Education that “decisions have not yet been made concerning submissions and awards for this upcoming academic year,” with no date provided for when or if states would receive these funds.

Impoundment and Congressional Rescission

This delay, known as impoundment, occurs when the executive branch withholds funds that Congress has appropriated. While the president can temporarily hold back funds, the Impoundment Control Act prohibits permanent withholding without Congressional approval. To do so legally, the administration must issue a “special message” to Congress outlining a formal request for rescission. This allows for a 45-day review period during which both chambers must approve the withholding. To date, no such message has been submitted for these K–12 education funds.

If Congress does not approve a rescission request by an administration within 45 days, the request is considered denied, and the administration must release the funds. As of the time of this posting, no special message has been sent by the current Administration to Congress regarding these four programs.

Annual practice is that, after Congress appropriates the funds, ED provides states and territories with “allocation tables” that inform them of the exact amount of funding they will receive from each federal education formula grant program. Typically, ED provides state educational agencies with the formula program allocation tables and access to draw down those funds by July 1, allowing states and districts to plan, budget, and begin spending for the upcoming school year.

Typically, by July 1 each year, the Department of Education distributes “allocation tables” to states and territories, allowing education agencies to plan budgets and begin accessing funds. The delay now jeopardizes programs scheduled for summer and early fall, with unallocated money at risk of expiring and reverting to the U.S. Treasury.

Impacted Student Programs

As of today, states have not received the allocation tables necessary for them to draw down funds for several education programs authorized under the Elementary and Secondary Education Act and available through the continuing resolution. Five of these programs include:

1. Migrant Education. These funds support migratory children in reaching challenging academic standards and graduating from high school.
2. Supporting Effective Instruction. These funds support increasing student achievement by improving the quality and effectiveness of educators and underserved students’ access to effective educators.
3. English Language Acquisition. These funds help students learn English and meet challenging state academic standards.
4. Student Support and Academic Enrichment Program. These funds support improving student academic achievement, including providing students with access to a well-rounded education, enhancing school conditions for student learning, and enhancing the use of technology.
5. Nita M. Lowey 21st Century Community Learning Centers. These funds provide academic enrichment opportunities, such as literacy and other educational services, during non-school hours (e.g., through after-school or summer programs) for students and their families, particularly those in underserved and low-performing schools.

An estimated total of $6.2 billion in Congressionally appropriated funds across these five programs currently remains unavailable to states and territories. All states and territories are facing severe impacts, with the funds across these five programs totaling 10% or more of their overall federal K–12 funding. And for 17 states and territories, the total funds are 15% or more of their overall federal K–12 funding, potentially forcing brutal cuts to critical programs.

Government Accountability Office (GAO)

If the Education Department refuses to make these funds available to states and territories without Congressional approval, the Government Accountability Office (GAO) is responsible for taking action.

Starting on July 1, the GAO can investigate the effects of the withholding on states and territories, school districts, and students and report illegal impoundment to Congress. The GAO can then bring civil action against the Executive Branch for failing to obligate appropriated funds promptly.

GAO is already investigating at least 39 potential violations of the Impoundment Control Act by the current Administration. The GAO is beginning to release initial findings from some of the investigations and has recently found, for example, that the Administration illegally withheld funds intended for the Institute of Museum and Library Services. If the GAO takes civil action as a result of any of these investigations, it will be a lengthy process that could eventually reach the U.S. Supreme Court.