Trump releases $1.4 billion in education funding. Here’s where it will be used.
AI-generated summary reviewed by our newsroom.
- Trump administration releases $1.4B for after-school and summer programs.
- Funds come from $6.8B previously withheld pending alignment review by OMB.
- North Carolina receives $35.7M but awaits $130M more amid ongoing lawsuit.
The Trump administration is releasing part of the nearly $7 billion in federal education funding that’s been withheld from the nation’s schools.
The Office of Management and Budget (OMB) confirmed Friday it would release $1.4 billion used to fund summer programs, before-school and after-school programs. The U.S. Department of Education had notified states on June 30 that it was withholding $6.8 billion in funding pending a review to see if the grant money aligned with the Trump administration’s priorities.
OMB said its review of the after-school funding was complete.
“Funds will be released to the states,” OMB said in a statement to Education Week. “Guardrails have been put in place to ensure these funds are not used in violation of Executive Orders.”
OMB did not identify what the “guardrails” would be. Previously, OMB has accused some grant recipients of using the money to advance a “radical leftwing agenda” such as promoting “illegal immigrant advocacy organizations” and “queer resistance.”
It was not clear though if and when OMB would complete the review of the remaining $5 billion. The $5 billion funds things such as teacher training, adult education and services for migrant students and English language learners.
The grant money was already authorized by Congress. It was supposed to be given to the states to give to schools by July 1.
NC still owed $130 million
On Monday, North Carolina Attorney General Jeff Jackson joined 23 other states in filing a lawsuit against the Trump administration for withholding the $6.8 billion. Of that amount, North Carolina leaders say the state is owed $165.6 million.
Friday’s decision will release $35.7 million of the 21st Century Community Learning Centers grant funding to North Carolina. Schools and community groups had been relying on getting that funding for programs this summer.
For instance, the funding freeze cost $826,000 for OurBRIDGE for KIDS, The Charlotte Observer previously reported. The Charlotte nonprofit provides free after-school and summer programming for immigrant and refugee children.
But the state’s public schools are still waiting on the remaining $130 million from the federal government. Jackson said nearly 1,000 educator jobs are at stake if the money isn’t provided to schools.
Some Republicans oppose funding freeze
The federal lawsuit was filed mostly be Democratic state attorneys general. But some Republican elected officials have also criticized the decision to withhold the money.
On Wednesday, 10 Republican U.S. senators sent OMB a letter saying that withholding the $6.8 billion “will harm students, families, and local communities.” The senators said they didn’t believe the money was being used to fund left-wing programs.
On Friday, Sen. Shelley Moore Capito, a Republican from West Virginia, posted on social media that OMB Director Russell Vought had just informed her that the Department of Education “is releasing crucial funds to states that support after school and summer education programs.”
“This is in direct response to a letter I led my @SenateGOP colleagues on earlier this week!” Moore Capito said on X, previously called Twitter.
This story was originally published July 18, 2025 at 4:09 PM with the headline "Trump releases $1.4 billion in education funding. Here’s where it will be used.."
