Navigating the Future: Uncertainty in K–12 Funding Across States

Michael Griffith Michael A. DiNapoli Jr.

Senior Research Fellow Director of Federal Policy

Despite Congressional authorization, states and territories are missing billions of federal K–12 funding as approved education funds remain frozen by the U.S. Department of Education (ED). This extended withholding of funds—called “impoundment”—threatens essential services for millions of students, including summer programs, after-school activities, and support for migrant children and English learners. In March of this year, Congress passed a continuing resolution that provides federal funding through the end of fiscal year 2025, which President Trump signed into law. This law includes approximately $45 billion to support K–12 students across the nation—with most funding targeted towards the country’s most underserved students.

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.

For more information go to: https://learningpolicyinstitute.org/blog/states-face-uncertainty-k-12-funding-remains-unreleased