The Trump administration notified states that it would withhold more than $6 billion in previously approved federal education grants.

The Education Department's announcement came one day before the July 1 deadline by which those funds have traditionally been distributed, and is likely will affect the plans of school districts across the country for the fall.

The National Education Association (NEA) denounced in a press release that, despite the fact that Congress passed a continuing resolution in March (which President Trump signed extending previous funding levels through fiscal year 2025), the Department of Education is taking a first step toward “impoundment,” the illegal withholding of money appropriated by Congress to fund federal programs and activities.

“If the funds are not released soon, this measure will force schools to cut educator salaries, as well as reading and math supports, student services (including summer and after-school programs), and supports for migrant students and English learners. Educators will face layoffs, resulting in considerably larger class sizes,” the NEA warned.

Scope of allocated funds being withheld

The total amount affected nationwide is estimated to be between $5 billion million and $6.8 billion, including at least $811 million earmarked for California alone.

The measure came with little notice to states, many of which had already hired staff and planned programs in anticipation of the funding.

Which programs are affected

The affected funds include major federal grant programs such as the State Teacher Training Grants (Title II-A), the 21st Century Community Learning Centers for summer and after-school activities,Student Support and Academic Enrichment (Title IV-A) grants and programs for migrant education (Title IC) and English learner education (Title III-A).

Notices sent to state education agencies and cited by several media outlets indicated that the Department of Education “will not issue Notices of Grant Award obligating funds for these programs on July 1 before completing such review.”

Why and how these already allocated funds are being withheld

The White House and Education Secretary Linda McMahon previously stated their intention to reevaluate or cut these programs, citing a desire to align funding with the president’s education priorities, including opposition to bilingual education and some diversity initiatives.

Office of Management and Budget Director Russell Vought has stated that the funding could be rescinded through a “pocket rescission,” a tactic that allows the administration to propose returning the unused appropriations to Congress for cancellation, Politico reported Monday.

The Education Department has not indicated when it will complete its funding review or whether the grants will ultimately be awarded.

If Congress does not approve a rescission request within 45 days, the administration is required by law to distribute the funds as originally intended.

States such as California have indicated a willingness to pursue legal action if necessary.