Trump releases nearly $1B in delayed education funds for California schools

The Trump administration will release $5.5 billion in federal education funding that was previously withheld from public schools in 33 states, including an estimated $939 million that California schools were relying on for their 2025-26 academic year.

The freed-up grants support state programs including adult education, after-school services, teacher training, and services for marginalized students such as children of migrant workers and English learners. Nationwide, the freeze had thrown school districts into budget turmoil just weeks before the academic year, disrupting plans for staffing, curriculum, and student support services.

The Trump administration faced growing bipartisan pressure over its decision to withhold nearly $7 billion in education funding approved by Congress, according to The New York Times, including a rare public letter from 10 Senate Republicans urging the White House to release the money.

The disbursement on July 1 was abruptly frozen the day prior.

In its brief letter announcing the freeze, the U.S. Department of Education notified states that it was reviewing several grant programs for compliance with President Donald Trump’s policy priorities after finding some money had been “grossly misused to subsidize a radical left-wing agenda.” The agency said final decisions had not been made about awards for the upcoming school year.

But an administration official, acknowledging the pushback, said Friday that “guardrails” would ensure funds are not used in violation of executive orders or administration policy, according to The Washington Post.

School programs ‘can breathe a little easier’

Despite the uncertainty, California officials viewed the move as a victory.

Earlier this month, California Attorney General Rob Bonta joined a suit alongside 23 other state attorneys general, arguing the freeze violated federal law by blocking funds already allocated by Congress. Separately, the California Federation of Teachers joined a federal lawsuit led by school districts, teachers, and education advocates.

CFT President Jeffrey Freitas said he learned of the reversal while attending an event in Washington, D.C., for the American Federation of Teachers.

“Everyone in that room is an educator throughout the country and they knew what this impoundment meant and they know what freeing these dollars up means from the students and for public education,” he said.

Freitas called the release a win, but said ongoing legal and political resistance was necessary.

“It just proves that he’s continually violating the law and we’ll have to continue fighting him through the courts, through protests and nonviolent marches,” he said. “But he needs to be stopped eventually through the ballot box.”

Also on Wednesday, Bonta and 20 other attorneys general reached an agreement blocking the administration from expanding ineligibility for public benefits based on immigration status. The policy shift would have affected access to programs such as Head Start and adult education.

“The Trump administration threw Head Start and other social safety net programs into chaos when it abruptly reversed nearly three decades of federal law and policy that opened these programs up to all,” said Bonta. “With today’s agreement, these critical programs — and the families who rely on them — can breathe a little easier. California will not back down in the fight to protect access to these programs that help ensure that our communities thrive.”

The blocked funding included more than $2 billion nationally for teacher recruitment and training in underserved areas, arts and music programs, and language instruction for English learners — services heavily relied upon by both urban and rural districts.

Ten Republican senators joined Democrats in a rare bipartisan letter urging the administration to reverse course, citing widespread disruption in school operations across the country.

Effect on public schools

The funding freeze, announced one day before scheduled disbursements, disrupted school budgets statewide. Districts had already made staffing and programming decisions based on anticipated federal aid.

Although the grants account for less than 1% of the state’s annual K-12 budget, educators said the cuts would have had significant effects. Freitas warned that schools faced the prospect of larger class sizes, teacher layoffs, and reduced programming.

A survey by the School Superintendents Association recently released found that 85% of respondents said they have existing contracts paid with federal funds that were then being withheld, and had to cover those costs with local dollars. Three-quarters said they would need to eliminate academic services, and half anticipated layoffs.

The survey also showed that impacts extended well beyond California, with superintendents in states like Michigan, Georgia and Washington warning of imminent staff reductions and curtailed student services.

The California Department of Education was at risk of losing $29 million in federal money that funded 109 full-time employees, which would have put many state workers at risk of layoffs. The loss of funding could have also meant reassigning employees working on programs that supported children of migrant workers to other areas.

The state agency did not immediately respond to a request for comment.

Jennah Pendleton

The Sacramento Bee

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Jennah Pendleton is an education reporter for The Sacramento Bee. She previously covered schools and culture in the San Francisco Bay Area. She grew up in Orange County and is a graduate of the University of Oregon.