Education Department says it's releasing more than $5 billion in frozen grants

The U.S. Education Department is releasing more than $5 billion in education grant funding to states. In late June, the Trump administration told states it was withholding these previously approved federal grants for further review. That announcement came a day before the July 1 deadline when those funds have traditionally been disbursed. The decision left many school districts scrambling in the lead up to the school year. According to Madi Biedermann, deputy assistant secretary for communications at the Education Department, the Office of Management and Budget "has directed the Department to release all formula funds. The agency will begin dispersing funds to states next week." Lawmakers from both sides of the aisle lobbied to release the funds, citing financial strain on states and local communities. Several states have also sued the administration in an effort to get the funds released. It's not the first time the Trump administration has singled-out these programs: The administration's proposed FY 2026 budget eliminated all the grants that had been frozen.