Trump admin freeze on education funds blocks millions to Arizona
Screenshot of Learning Policy Institute k12 impact on states.
Learning Policy Institute
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Sen. Ruben Gallego
Submitted photo/Daniel Rios
Rep. Greg Stanton
Eric Connolly/U.S. House Office of Photography
The Issue:
Arizona schools are bracing for a potential loss of nearly $120 million in federal education funding after the U.S. Department of Education failed to release Congressionally approved grants on time, jeopardizing programs that serve migrant students, English learners and low-income communities.
The Stats:
Nationwide, $6.2 billion across five programs is being withheld; Arizona stands to lose $118.2 million, including funds for teacher development, after-school care and academic enrichment. Many Arizona districts begin school within the next two to three weeks.
The Solution:
Education advocates are urging Congress to enforce the Impoundment Control Act and demand immediate disbursement of funds, while legal experts prepare to challenge the delay in court to restore stability to public schools before the academic year begins.
School leaders in Arizona and across the country are facing deep uncertainty after the Department of Education missed a July 1 deadline to release $6.2 billion in federal K-12 education funds — money districts depend on to support vulnerable students, train teachers and keep essential programs running.
The delay, which the department attributes to a “review” under the new Trump administration, affects five major programs, including those that provide services for English learners, migrant students, low-income children and after-school enrichment.
“Arizona schools stand to lose nearly $120 million of Congressionally approved funds because President Trump is seeking to dismantle public education,” said Beth Lewis, executive director of Save Our Schools Arizona.
The funds represent more than 10% of all federal education funding distributed to states, according to the Learning Policy Institute. In Arizona alone, districts are projected to lose an estimated $118.2 million.
“The timing of this withholding is particularly serious for Arizona schools, which begin the new school year earlier than many across the country. One district starts classes July 16, 2025. The freeze puts Arizona school districts in an impossible financial situation, as they have already adopted annual budgets and signed contracts for the upcoming school year,” Sen. Mark Kelly, D-Ariz., and Rep. Greg Stanton, D-Ariz., wrote in a letter to Education Secretary Linda McMahon and Office of Management and Budget Director Russell Vought.
Breakdown of withheld programs
The five affected programs nationally are:
Title I-C – Migrant education: $375 million
Title II-A – Educator professional development: $2.2 billion
Title III-A – English-learner services: $890 million
Title IV-A – Academic enrichment: $1.3 billion
Title IV-B – Before- and after-school programs: $1.4 billion
These grants fund tutoring, bilingual instruction, school counselors, enrichment classes and after-school care — services many schools cannot afford to provide through state budgets alone.
The reason for the delay
According to a June 30 notice sent to congressional staffers, the DOE said decisions “have not yet been made concerning submissions and awards for this upcoming academic year” and funding is being reviewed to ensure alignment with “the President’s priorities.”
This delay comes amid growing scrutiny over impoundment — a process where a president withholds or defers Congressionally appropriated funds. Under the Impoundment Control Act of 1974, such actions must be formally submitted to Congress and are typically subject to legal and legislative challenge. Multiple lawsuits regarding this impoundment are reportedly in progress.
“Months ago, Education Forward Arizona joined other experts in predicting that instead of closing the Department of Education, they would begin holding and pulling back some of the education funding,” said Rich Nickel, president and CEO of Education Forward Arizona. “Unfortunately, that is exactly what we are seeing happening now. Arizona’s students can’t afford delays when it comes to education. These federal funds are not optional — they’re essential to maintaining critical student programs. Pulling the rug out from under them right before the academic year begins threatens to widen the very opportunity gaps these dollars are meant to close. We urge federal leaders to release these funds immediately so schools can do what they’re charged to do: educate and prepare students for their future.”
What’s at stake for Arizona?
Arizona’s reliance on federal dollars is substantial, especially in school districts serving large numbers of English learners, Native American students and children from migrant families. Without timely allocations, schools may be forced to delay hiring, scale back programming or pause summer and fall planning.
“These funds are critically needed for before- and after-school programs, hiring teachers and ensuring quality learning supports for all students,” Lewis said. “As many Arizona school districts start classes in two to three weeks, school leaders are looking to D.C. for answers.”
Arizona Superintendent of Schools Tom Horne’s office had no comment beyond a released statement that said in part, “The Arizona Department is taking steps to guide districts and charters regarding the affected programs in grants management for (fiscal year) 2026 funding applications and we are working to obtain more information and access the federal funds as soon as possible.”
Potential issues for Arizona
Education advocates and local politicians say this delay sends a message to states relying on federal partnership.
“The Trump administration’s decision to block $118 million in federal funding meant for Arizona’s public schools is not just irresponsible — it’s a blatant betrayal of our students, educators and families,” said Taylor Tasler, Gallego's Arizona press secretary. “As a father, Sen. Gallego understands how critical this funding is to ensure children have the tools and support they need to succeed. With a new school year just weeks away, he will use every resource at his disposal to hold the administration accountable and fight to return these funds to the classroom. He is also actively pursuing opportunities to ensure long-term sustainable funding for vital education programs, especially as Congress advances through the fiscal year 2026 appropriations process.”
Advantages to freezing the money, according to those supporting the Trump administration's move, include:
Allowing alignment of federal funding with new administration priorities.
Providing a window to evaluate program impact and efficiencies.
May result in policy changes that shift funding toward alternative education models.
Opponents of the move say withholding funds could have a dramatic effect and include:
Circumventing Congressional intent by stalling already-approved funds.
Potentially violating the Impoundment Control Act and triggering legal challenges.
“These proposed cuts will have significant and disproportionate impacts on Arizona’s public schools, which serve many low-income students, migrant students and students learning English,” Gau said. "These funds are critically needed for before- and after-school programs, hiring teachers and ensuring quality learning supports for all students."
For now, district leaders in Arizona are left waiting without answers, without certainty and potentially without tens of millions of dollars in urgently needed support.
Neither Rep. David Schweikert nor Rep. Andy Biggs returned a request for comment by press time.
Editor’s note: A grant from the Arizona Local News Foundation made this story possible. The foundation awarded 15 newsrooms to pay for solutions-focused education reporters for two years. Please submit comments at yourvalley.net/letters. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.
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