• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Politicsschools

Trump administration withholds $6 billion for school programs to ensure money is ‘spent in accordance with the President’s priorities’

By
Collin Binkley
Collin Binkley
,
Bianca Vázquez Toness
Bianca Vázquez Toness
,
Sharon Lurye
Sharon Lurye
,
Annie Ma
Annie Ma
, and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Collin Binkley
Collin Binkley
,
Bianca Vázquez Toness
Bianca Vázquez Toness
,
Sharon Lurye
Sharon Lurye
,
Annie Ma
Annie Ma
, and
The Associated Press
The Associated Press
Down Arrow Button Icon
July 2, 2025, 5:47 AM ET
Jaelene, 9, works on a computer during a third grade English language arts class at Mount Vernon Community School, in Alexandria, Va., May 1, 2024.
Jaelene, 9, works on a computer during a third grade English language arts class at Mount Vernon Community School, in Alexandria, Va., May 1, 2024. Jacquelyn Martin—AP

Day camp providers and schools are warning that a Trump administration funding freeze could wreck summer for low-income American families and wipe out some after-school programming next year.

Recommended Video

The administration is withholding more than $6 billion in federal grants for after-school and summer programs, English language instruction, adult literacy and more as part of a review to ensure grants align with President Donald Trump’s priorities.

The move leaves states and schools in limbo as they budget for programs this summer and in the upcoming school year, introducing new uncertainty about when — or if — they will receive the money. It also sets the stage for a clash with Democrats, who say the administration is flouting the law by holding back money Congress appropriated.

Without the money, schools say they won’t be able to provide free or affordable after-school care for low-income kids while their parents work, and they may not be able to hire staff to teach children who are learning English. Even classes or camps underway this summer could be in jeopardy.

For instance, the Boys and Girls Clubs of America depend on some of the withheld money to run camps and other summer programming for low-income students. If funding isn’t restored soon, the programming may end mid-season, said Boys and Girls Club President Jim Clark.

After-school programming in the fall could also take a hit. “If these funds are blocked, the fallout will be swift and devastating,” Clark said. As many as 926 Boys and Girls Clubs could close, affecting more than 220,000 kids, the group said.

Programs that rely on the money were expecting it to be distributed July 1, but an Education Department notice issued Monday announced the money would not be released while the programs are under review. The department did not provide a timeline and warned that “decisions have not yet been made” on grants for the upcoming school year.

“The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities,” Education Department officials wrote in the notice, which was obtained by The Associated Press.

The department referred questions to the Office of Management and Budget, which did not respond to a request for comment.

After-school child care at risk

In Gadsden City Schools in Alabama, officials say they’ll have no choice but to shutter their after-school program serving more than 1,200 low-income students if federal funds aren’t released. There’s no other way to make up for the frozen federal money, said Janie Browning, who directs the program.

Families who rely on after-school programs would lose an important source of child care that keeps children safe and engaged while their parents work. The roughly 75 employees of the district’s after-school programs may lose their jobs.

“Those hours between after school and 6 o’clock really are the hours in the day when students are at the most risk for things that may not produce great outcomes,” Browning said. “It would be devastating if we lost the lifeline of afterschool for our students and our families.”

Jodi Grant, executive director of the Afterschool Alliance, said withholding the money could cause lasting damage to the economy.

Some advocates fear the grants are being targeted for elimination, which could force schools to cut programs and teachers. Trump’s 2026 budget proposal called for Congress to zero out all of the programs under review, signaling the administration sees them as unnecessary.

Sen. Patty Murray, D-Wash., pressed the administration to spend the money as Congress intended.

“Every day that this funding is held up is a day that school districts are forced to worry about whether they’ll have to cut back on afterschool programs or lay off teachers instead of worrying about how to make sure our kids can succeed,” Murray said in a statement.

What the money funds

The six grant programs under review include one known as 21st Century Community Learning Centers. It’s the primary federal funding source for after-school and summer learning programs and supports more than 10,000 local programs nationwide, according to the Afterschool Alliance. Every state runs its own competition to distribute the grants, which totaled $1.3 billion this fiscal year.

Also under review are $2 billion in grants for teachers’ professional development and efforts to reduce class size; $1 billion for academic enrichment grants, often used for science and math education and accelerated learning; $890 million for students who are learning English; $376 million to educate the children of migrant workers; and $715 million to teach adults how to read.

These programs account for over 20% of the federal money the District of Columbia receives for K-12 education, according to an analysis by the Learning Policy Institute, a think tank. California alone has over $800,000 in limbo, while Texas has over $660,000.

“Trump is illegally impounding billions of dollars appropriated by Congress to serve students this fiscal year,” said Tony Thurmond, California’s state superintendent, in a statement. “The Administration is punishing children when states refuse to cater to Trump’s political ideology.

The loss of funds could “put several more school districts in extreme financial distress,” said Chris Reykdal, superintendent of public instruction in Washington state. Districts have already adopted budgets, planned programming and hired staff, assuming they’d receive the money, Reykdal said.

If the funding freeze remains, children learning English and their parents would be especially affected. Some districts use the money to pay for summer programming designed for English learners, family engagement specialists who can communicate with parents and professional development training for staff. Rural districts would be hit the hardest.

“They’re trying to send a message,” said Amaya Garcia, who oversees education research at New America, a left-leaning think tank. “They don’t believe that taxpayer funding should be used for these children.”

Umatilla School District in rural eastern Oregon — with a sizable population of migrant families and students learning English — relies heavily on federal funding for its after-school and summer school programs. Superintendent Heidi Sipe says she is meeting with state officials soon to find out if the district will have to plan an early end to summer school, an option 20% of students are using. Come this fall, if federal money stays frozen, she’ll have to lay off staff and eliminate after-school programs attended by around half the district’s students.

“It’s an essential service in our community because we don’t have any licensed child care centers for school-age children,” she said.

Sipe said it’s particularly frustrating to deal with these funds being put into limbo because the school district was in the middle of a five-year grant period.

“It feels preventable,” she said, “and it feels as though we could have done a better job planning for America’s children.”

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
About the Authors
By Collin Binkley
See full bioRight Arrow Button Icon
By Bianca Vázquez Toness
See full bioRight Arrow Button Icon
By Sharon Lurye
See full bioRight Arrow Button Icon
By Annie Ma
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

yale
PoliticsColleges and Universities
Teacher, blame thyself: Yale report savages Ivy League schools for destroying American trust in higher education
By Nick LichtenbergApril 15, 2026
47 minutes ago
Fed Chair nominee Kevin Warsh is worth more than $100 million and has stakes in SpaceX and Polymarket
BankingFederal Reserve
Fed Chair nominee Kevin Warsh is worth more than $100 million and has stakes in SpaceX and Polymarket
By Jacqueline MunisApril 15, 2026
58 minutes ago
live nation
LawAntitrust
‘Robbing them blind, baby’: Live Nation and Ticketmaster are a monopoly, jury rules
By Larry Neumeister and The Associated PressApril 15, 2026
2 hours ago
trump
PoliticsReligion
Donald and Leo is the latest power-versus-pope showdown stretching back 1,000 years
By Joëlle Rollo-Koster and The ConversationApril 15, 2026
2 hours ago
warren
Arts & EntertainmentElizabeth Warren
Elizabeth Warren on her proposal to bring back IRS Direct File: ‘For just one day of bombing Iran, we could pay for 20 years’
By Catherina GioinoApril 15, 2026
2 hours ago
Pete Hegseth speaks with both hands in the air as Donald Trump looks on in the background.
Politicsgovernment spending
‘I am certain’: Harvard policy expert warns the true cost of the Iran war to U.S. taxpayers will exceed $1 trillion
By Sasha RogelbergApril 15, 2026
2 hours ago

Most Popular

Billionaire philanthropist MacKenzie Scott has donated again—a week after gifting millions to a college, she's just given $70 million to Meals on Wheels America
Success
Billionaire philanthropist MacKenzie Scott has donated again—a week after gifting millions to a college, she's just given $70 million to Meals on Wheels America
By Fortune EditorsApril 13, 2026
2 days ago
Jeff Bezos pledged $10 billion for climate change. With the 2030 clock ticking, his wife, Lauren Sánchez Bezos, is leading the charge to spend it
Environment
Jeff Bezos pledged $10 billion for climate change. With the 2030 clock ticking, his wife, Lauren Sánchez Bezos, is leading the charge to spend it
By Fortune EditorsApril 15, 2026
7 hours ago
Retirees are facing a $345,000 bill they never saw coming — and most aren't prepared
Commentary
Retirees are facing a $345,000 bill they never saw coming — and most aren't prepared
By Fortune EditorsApril 14, 2026
1 day ago
Palantir CEO says working at his $316 billion software company is better than a degree from Harvard or Yale: ‘No one cares about the other stuff’
Success
Palantir CEO says working at his $316 billion software company is better than a degree from Harvard or Yale: ‘No one cares about the other stuff’
By Fortune EditorsApril 14, 2026
1 day ago
Warren Buffett’s first tax return showed $7 owed to the IRS. The then paperboy and former Berkshire Hathaway CEO is now worth $143 billion
Success
Warren Buffett’s first tax return showed $7 owed to the IRS. The then paperboy and former Berkshire Hathaway CEO is now worth $143 billion
By Fortune EditorsApril 14, 2026
1 day ago
Anthropic is facing a wave of user backlash over reports of performance issues with its Claude AI chatbot
AI
Anthropic is facing a wave of user backlash over reports of performance issues with its Claude AI chatbot
By Fortune EditorsApril 14, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.