Happy fiscal new year! Trump has impounded billions in federal grants for this year

Happy fiscal new year! FY26 officially begins today for the Commonwealth of Massachusetts, for Mass school districts, and for our towns and cities!

This also means we have lots of people starting new positions today: new superintendent contracts generally begin July 1, and our new Massachusetts Commissioner of Education Pedro Martinez is starting today, as well. 

But it wouldn't be the Trump administration if we weren't also starting the new year with bad news, and so it is today: that concern I noted last week over federal grants for the fiscal year we start today has come to pass, and it is even worse than forecast. 

The Learning Policy Institute has a good breakdown of what's involved:

Annual practice is that, after Congress appropriates the funds, ED provides states and territories with “allocation tables” that inform them of the exact amount of funding they will receive from each federal education formula grant program. Typically, ED provides state educational agencies the formula program allocation tables and access to draw down those funds by July 1, providing states and districts the ability to plan, budget, and start to spend for the upcoming school year. The July 1 date is significant because these funds support, for example, summer programs and help districts prepare for the early school year start in many states. Any funds not allocated by ED to states and territories will expire and return to the U.S. Department of Treasury instead of being used to support students.

As of this posting, states have not received the allocation tables necessary for them to be able to draw down funds on July 1 for several education programs authorized under the Elementary and Secondary Education Act and available through the continuing resolution.

LPI has a breakdown of how much is involved for each state with those four grants; for Massachusetts, it's $72.5M.

Late yesterday, however, Mark Lieberman at EdWeek confirmed the bad news: 

 ...in an unsigned email message sent after 2 p.m. Monday reviewed by Education Week, the Education Department informed states that the agency won’t be sending states any money tomorrow from the following programs:

Title I-C for migrant education ($375 million)

Title II-A for professional development ($2.2 billion)

Title III-A for English-learner services ($890 million)

Title IV-A for academic enrichment ($1.3 billion)

Title IV-B for before- and after-school programs ($1.4 billion)

“Decisions have not been made concerning submissions and awards for this upcoming academic year,” the email reads. “Accordingly, the Department will not be issuing Grant Award Notifications obligating funds for these programs on July 1 prior to completing that review.”

You will note that is five, not four, grants.
As if that wasn't enough, there was then a follow-up:

In a separate email sent at 4:27 p.m., the department told congressional staffers that it’s holding back funds from all the programs listed above, as well as grants for adult basic and literacy education ($729 million nationwide). Questions about the changes, the letter says, must go to the Office of Management and Budget, not the Education Department.

As EdWeek notes:

Lawsuits are likely to follow, as they have for similar funding changes the administration implemented earlier this year.

Federal law prohibits the executive branch from withholding congressionally appropriated funds unless it gives federal lawmakers an opportunity to approve or reject the move within 45 days.

The U.S. Constitution gives Congress, not the president, the power of the purse—but top administration official Russell Vought, whom Trump appointed to lead the Office of Management and Budget, has said he believes restrictions on impoundment are unconstitutional. On Capitol Hill last week, Vought said the administration hadn’t decided whether to ask Congress for permission to impound education funding.

Cue the AG's office bat signal, in other words. As grants are reimbursements, states and districts forward spend (is that a term?) the money, getting reimbursed after spending. What the state will advise and what districts will do with this is yet to be seen.