California Districts Scramble After Federal Government Holds Back Nearly $811 Million in School Grants

California school districts are missing hundreds of millions of dollars in federal grant money that they had already built into their budgets for this year. Congress approved the funds in its 2025 budget, but the Trump administration has not released them, leaving districts across the country scrambling.

The money supports teacher professional development, after-school and other enrichment programs, services for students learning English, and migrant education. According to an analysis by the Learning Policy Institute, California schools are owed almost $811 million across the five programs. Nationwide, the grants add up to $6.2 billion for K-12 schools.

Historically, the U.S. Department of Education has discussed state-level allocations between March and May and then released the money on July 1. On Monday, states received an email saying the department was still reviewing 2025 funding for the five programs. Many California districts counted on the money in their spring budgets and expected to begin spending it this month and next.

Some districts may have to cancel summer teacher training events and summer learning activities as early as this week. Tatia Davenport, director of the California Association of School Business Officials, said the harm is immediate. "By withdrawing those funds, our district leaders will be forced to reduce staff, delay programs and cancel services," she said.

State Superintendent of Public Instruction Tony Thurmond said the state is weighing several options, including a lawsuit against the administration. California has already sued over school funding several times after President Trump threatened to withhold money over diversity and other initiatives. In the meantime, Thurmond urged districts to find resources to keep summer programs going in hopes of a quick resolution. Schools begin reopening in late July, with most starting in August.

Among the affected programs are the 21st Century Community Learning Center grants, which send about $146.6 million to California schools and community groups for after-school programs. The state provides most after-school funding, but these federal grants are the main source for middle and high schools, paying for tutoring, snacks, field trips and enrichment. Jodi Grant, executive director of the Afterschool Alliance, said each hour of delay could cause closures and cancellations that carry into the 2025-26 school year, leaving more young people unsupervised and putting more strain on working parents.

Anabolena DeGenna, superintendent of the Oxnard School District in Ventura County, said the programs funded by the grants "are not luxuries in our schools; they're lifelines." She noted they support student services, teacher training and family engagement efforts, while the district is still recovering from the COVID pandemic.

The Department of Education has released some of the K-12 money Congress approved this year under the Elementary and Secondary Education Act. All of the withheld funding, however, is for programs the administration has proposed eliminating in 2026. Amaya Garcia of the think tank New America said that is no coincidence, arguing the administration is enacting its budget priorities without congressional approval.

In its Monday email, the department said it remained committed to ensuring taxpayer resources are spent in line with the President's priorities and the department's statutory responsibilities. Education advocates rejected the idea that there was anything to review. Amalia Chamorro of UnidosUS called the action illegal and an overreach of the executive branch, saying Congress approved the funding in March and urging its immediate release.