As state and district leaders, and a growing number of education and workforce vendors have now learned, the Office of Management and Budget (OMB) is holding up billions of dollars that school and workforce officials that were expected to arrive on July 1. This includes:

  • Every Student Succeeds Act (ESSA)
    • 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 
  • Workforce Investment and Opportunity Act (WIOA), Title II Adult Education Basic Grants — $729 million

Notwithstanding prior communications which assured local officials that they should rely on the funds, OMB is holding and reviewing the grants to ensure “taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities.” 

Whether this will be viewed as a deferral or impoundment (defined as executive action, inaction, delays, or otherwise that withholds funding authorized by Congress) remains to be seen.

But as it stands at the moment, the Trump administration’s actions are creating major challenges for state and local officials who have already budgeted and planned. Its ripple effect may very well impact grantees that need reimbursements this summer for staff and student programs. 

We’ve seen something like this before. On March 28, Education Secretary Linda McMahon stopped the stimulus reimbursement process only to restart it on June 26. The assertion of executive authority was the point and, after the headlines passed, agency leaders and staff put the pieces back together again. 

Might this be another headline test of executive authority where the funds eventually do flow? Many are working in the background to achieve that result.

This article is sourced from Whiteboard Notes, our weekly newsletter of the latest education policy and industry news read by thousands of education leaders, investors, grantmakers, and entrepreneurs. Subscribe here.