California says Trump administration illegally paused $1B in education grants
California State Superintendent says Trump administration illegally pausing federal grants
State education officials say nearly $1B in pre-approved federal grant money was supposed to be transferred to the state for the July 1 start of the fiscal year. Instead, California and other states received notices from the Trump administration saying the grants are under review and the funds are not being transferred until the review is completed.
OAKLAND, Calif. - California Superintendent Tony Thurmond, along with a coalition of state education leaders, said they will fight to secure K-12 federal funding that the Trump administration abruptly impounded on July 1, just as school districts began their fiscal year.
The move creates chaos for districts that have already approved budgets and planned for staffing, programs, and student services for the 2025-26 school year, which is set to start at the end of the summer.
"The dollars that the president and his administration have threatened to take back have already been approved by Congress. This is an illegal action," Thurmond said at a news conference on Tuesday.
California received a notice from the U.S. Department of Education stating that the 2025 funds normally sent on July 1 are under review. The email, obtained from the state education office, said, in part, "The Department will not be issuing Grant Award Notifications obligating funds for these programs on July 1 prior to completing that review. The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities."
David Schapira, the California Department of Education's chief of staff, said students, in turn, are being penalized.
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"This is a President of the U.S. who is willing to punish students in states that refuse to conform with the president's political ideology, and that's something that isn't acceptable," he said.
Nearly $6 billion in education funding is being withheld nationwide.
"We have heard from our partners in other departments of education across the country. They received similar notices. Blue states, red states across the country have received similar notices," he said.
Educators say the withholding of funds will likely impact all K-12 students by putting student summer programs, after-school care, teacher training, staffing, and other services in limbo for the upcoming school year.
"Our district leaders will be forced to reduce staff, delay programs and cancel services," said Tatia Davenport, CEO of the California Association of School Business Officials.
Phil Kim, the San Francisco Unified School District's board president, said local districts are now waiting for details from the state.
Kim said the board worked hard to make difficult decisions to have a balanced budget for the coming year. He said San Francisco's school superintendent is monitoring the situation, and the district will continue with its goal of protecting all students and preserving needed programs.
"Just this month, the school district passed a balanced budget of $1.3 billion, 5% which comes from the federal government," Kim said. "I know that the superintendent is closely watching and partnering with our staff to make sure that everything that we do is in service to our students."
State Superintendent Thurmond's staff said they are working on a letter to send to all school districts in the coming week, detailing how the state plans to move forward.