School districts grapple with ‘budgetary chaos’ in wake of federal funding freeze

K-12 Dive

The U.S. Department of Education’s withholding of $6.2 billion in federal K-12 grants has local and state school systems scrambling to figure out how to make up for the budget shortages. It has also caused a swell of advocacy from families, lawmakers, educators, and others across the nation. The withheld funds for fiscal year 2025 were expected to be released by the Education Department on July 1. Programs at risk due to the funding hold include English learner services, academic supports, after-school programming, and professional development. The frozen funds represent at least 10% or more of states’ overall K-12 federal revenues if the money is not distributed, according to the nonpartisan Learning Policy Institute. At the local level, superintendents and principals are voicing concern about how the funding freeze will impact their school services, particularly those that serve English learners, homeless students, and students from low-income families.

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