In recent weeks, we’ve been inundated with questions from edtech and workforce vendors, as well as state and local leaders, who are trying to navigate—and make sense of—the federal government’s withholding of funds that they were counting on. The implications, especially this late in the game, have been far reaching.
On July 18, we got a bit of good news. The White House Office of Management and Budget (OMB) released $1.4 billion for 21st Century Community Learning Centers (Every Student Succeeds Act [ESSA] Title IV part B) that it was withholding. It is not clear whether or when the agency will do the same for the remaining $5.4 billion of funding that has been frozen since July 1.
This announcement comes after significant lobbying by both Republican and Democratic members of Congress.
On July 16, West Virginia Sen. Shelley Moore Capito—chairman of the Senate Appropriations Labor-HHS Subcommittee—and nine Republican colleagues sent a letter to the Office of Management and Budget advocating for the release of the appropriated FY 2025 funds. The letter argues that the action does not align with the goal of “returning K-12 education to the states.” School leaders from blue and red states have also been making their case to the administration.
The release will not likely affect the lawsuit brought by 24 states and Washington, D.C. against the administration (all Democratic led). The suit argues that the act violates the Impoundment Control Act of 1974, which prohibits the executive branch from withholding funding appropriated by Congress. [K-12 Dive]
All the while, local education and workforce leaders are adjusting budgets and contracts, operating in unprecedented budget uncertainty. The release of 21st Century funding is a promising signal—but it does not yet alleviate the school budget scramble caused by the last hour withholding.
The W/A research team will continue to track the ins-and-outs of federal funding, and its impact on local education markets. Interested in real-time updates or customized reports? Reach out to us to learn more about our subscription research offerings.
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