After a whirlwind news cycle, TK-12 schools have been assured the most significant sources of federal funding for public education are not included in a “pause” to financial grants or assistance declared by the Trump Administration. On Jan. 27, the White House Office of Management and Budget (OMB) called for a moratorium on all activities related “to obligation or disbursement of all Federal financial assistance, and other relevant agency activities” with exceptions for direct financial assistance such as Medicare and Social Security.
Major sources of school funding were not mentioned among the initial exceptions to the OMB order, prompting a wave of panic in the education community. Many school districts and county offices of education feared the action might halt funding for programs like Head Start. Although not necessarily implied by the initial order, some even feared that major funding sources such as Title I and the Individuals with Disabilities Education Act might be included in the funding freeze. Those anxieties were eased on Jan. 28 when the Trump Administration clarified its initial order as applying only to discretionary grants issued by the U.S. Department of Education.
According to Madison Biedermann, deputy assistant secretary for communications and outreach at the U.S. Department of Education, “The funding pause directed by the Jan. 27, 2025, OMB memorandum only applies to discretionary grants at the [U.S.] Department of Education. These will be reviewed by Department leadership for alignment with Trump Administration priorities. The temporary pause does not impact Title I, IDEA, or other formula grants, nor does it apply to Federal Pell Grants and Direct Loans under Title IV, HEA. The Department is working with OMB to identify other programs that are not covered by the memo.”
That statement was followed by a federal court decision mere minutes before the funding freeze was designed to take effect at 5 p.m. EST on Jan. 28. Federal Judge Loren L. AliKhan placed an administrative stay on the funding pause that lasts until Feb. 3, 2025, and applies only to existing programs.
The Trump Administration has stated that the funding freeze is needed to provide staff with sufficient time to review existing funding streams and ensure they align with the Administration’s priorities and recent executive orders aimed at removing protections for transgender people and ending diversity, equity and inclusion (DEI) efforts.
This is a fluid and fast-moving subject that will likely involve litigation at some point. CSBA will continue to seek clarity on what programs might be impacted by any potential pause and keep members updated on important developments.