Trump Administration to Release Over $5 Billion in Withheld School Funding After Review

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WASHINGTON (BN24) — President Donald Trump’s administration will release more than $5 billion in previously approved funding for K-12 education programs, reversing a controversial freeze that had triggered bipartisan backlash and legal challenges.

The funding, which had been paused earlier in July for what officials described as a routine review, will begin flowing to states next week, according to a statement Friday from the U.S. Department of Education.

“The Office of Management and Budget has completed its review … and has directed the Department to release all formula funds,” said Madi Biedermann, deputy assistant secretary for communications. The department did not disclose the review’s findings.

A senior administration official said the disbursement would come with “guardrails,” though no specifics were provided.

The initial freeze, which impacted approximately $6.8 billion in congressional appropriations, halted funding for programs supporting migrant students, English language learners, teacher recruitment, and enrichment programs like after-school and summer learning initiatives. Last week, $1.3 billion of that total was released ahead of Friday’s announcement.

The decision to withhold the funds drew swift condemnation from both sides of the aisle. A coalition of Democratic-led states filed lawsuits challenging the legality of the freeze, and 10 Republican senators urged the administration to release the money, citing concern over educational disruptions.

The Trump administration previously defended the freeze by suggesting the funds were being used to “subsidize a radical left-wing agenda.” It has repeatedly clashed with schools and universities over policies related to climate change, transgender rights, pro-Palestinian campus protests, and diversity and inclusion measures.

While Republican lawmakers welcomed Friday’s move, Democrats criticized the delay as unnecessary and disruptive.

Education Secretary Linda McMahon said she was satisfied with the outcome of the review. “I don’t believe we’ll see future freezes,” she added.

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