The U.S. Department of Education (ED) initially notified states that it would withhold approximately $6.9 billion in funding for six key federal formula grant programs under the Fiscal Year (FY) 2025 appropriations law.

Following significant pressure, including legal action from 24 states, including Michigan, $1.3 billion of this funding has now been released. This released amount is specifically designated for 21st Century Community Learning Centers (before and after-school programs). However, the USED has issued a warning that these funds must be allocated strictly towards "allowable activities," or the money will be withdrawn. 

Despite this partial release, the remaining $5.5 billion continues to be withheld by the administration. This withholding stands in conflict with the continuing resolution that President Trump signed into law, which aimed to maintain existing funding levels for these programs.

The affected programs include:

• $376 million – Migrant Education State Grants
• $890 million – English Language Acquisition Grants
• $1.38 billion – Title IV-A Student Support & Academic Enrichment Grants
• $2.19 billion – Title II-A Supporting Effective Instruction Grants
• $715 million – Adult Education and Family Literacy Grants
  

USED has referred questions to the Office of Management and Budget (OMB), suggesting OMB may be blocking the release. Regardless of which agency is responsible, this inaction violates statutory obligations and is already creating uncertainty and disruption for districts across the country. 

This is an unexpected and deeply concerning development. NSBA has issued an advocacy alert, and we urge you to contact your members of Congress to request their intervention with the U.S. Education Department and the OMB..