After a month-long federal funding freeze that left Texas school districts scrambling, the U.S. Department of Education (USDE) will release $660 million in grant funding to the Texas Education Agency (TEA) this week, officials confirmed Monday.
The funding — which supports migrant education, English language acquisition, after-school and summer learning programs, instructional support, and student enrichment services — had been delayed since July 1, missing its usual distribution date due to a federal review.
The delay followed a June 30 memo from the USDE notifying the TEA that five key grant programs would be put on hold, prompting concern and frustration across the state. The TEA responded at the time by urging districts to prepare for funding uncertainty, advising them to reconsider contracts, staffing, and purchases until more information was available.
“We never expected such late notice of the delay in allocations,” the agency said in a statement earlier this month. “We did not know when these funds would be released to TEA and school systems.”
The USDE cited its responsibility to ensure “taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities” as justification for the temporary freeze. The current administration, under President Trump’s second term, has prioritized reducing the federal government’s role in education, including an executive order earlier this year initiating the dismantling of the Department of Education itself. While Education Secretary Linda McMahon has said the department is focused on eliminating “bureaucratic bloat,” there is no set timeline for the agency’s closure.
Local Impact
The delay left many Texas school districts in limbo, particularly those heavily reliant on federal grants to support underserved student populations.
Districts across the state voiced concern that without clarity, they risked entering the new school year with budget shortfalls. Many had already set internal deadlines for budget planning ahead of the August 31 deadline to submit official budgets.
Pressure on the Federal Government
The freeze drew national criticism. The Texas American Federation of Teachers, which represents over 66,000 educators and school staff, joined a lawsuit against the Trump administration earlier this month demanding the release of the funds. The union argued the delay was putting students, teachers, and critical services at risk.
In Washington, 32 Democratic senators sent a letter to the Office of Management and Budget on July 10, calling the delay “an illegal withholding” of funds. “This freeze will only worsen school working conditions and deepen teacher shortages,” the letter read.
A group of 10 Senate Republicans also broke ranks to urge the funds' release. While echoing the administration’s concerns about ideological bias in some education programs, they maintained that there was “no evidence” these specific funds were being misused. “Withholding funds will harm students, families, and local economies,” the Republican lawmakers wrote.
Shortly after the bipartisan pressure, the USDE released $1.3 billion in funds designated for after-school programs. The remaining $660 million — intended for the TEA — is now scheduled to begin distribution this week, allowing districts time to incorporate the money into their final budgets.
Moving Forward
TEA confirmed on Monday that funds would start flowing to districts by July 28, giving school systems a crucial window to finalize financial plans before the end of August. While many school leaders expressed relief, concerns remain about the future stability of federal education funding under the administration’s ongoing downsizing of the department.
