03-07-2025
- Business
- San Francisco Chronicle
California schools reel from Trump's sudden cutoff of $1 billion in federal funds
For months, the leaders of Bay Area schools already dealing with budget deficits and declining enrollment have been pinching pennies, trimming staff and wringing their hands, hoping the federal funding allocated to them months ago would land in their bank accounts as promised in early July.
On June 30, at the 11th hour, the Trump administration announced that $7 billion in grants for after-school programs, literacy instructions and other support services, would remain in Washington, D.C., with the funds 'under review' to ensure they aligned with presidential priorities.
There was no indication whether California schools would see their $1 billion share before classes start in the fall — or if the check will ever be in the mail.
In Oakland, where budget officials had cobbled together just enough money to stay in the black this upcoming school year, the estimated $9.3 million in frozen federal funds was a gut punch.
The district was counting on that money to pay salaries and ensure it had the cash flow to pay bills, said Lisa Grant-Dawson, chief budget officer. Some staff have already been hired and, based on contractual requirements, cannot now be let go, she added.
'Without those funds, or delay of those funds, we still have to make good on our obligations,' she said. 'Our federal dollars are significant. The uncertainty is very bad.'
The frozen funds included several specific grant programs for teacher training, after-school services, academic enrichment (college counseling, accelerated learning, technology, mental health services), English language learning, migrant education and adult education.
The biggest chunks of federal funding for schools — money for disadvantaged students, special education programs and school meals — have continued to flow to districts across the country.
In San Francisco, officials said they were expecting at least $7 million from that federal funding to pay for staff and extra services for the neediest students. Like many Bay Area districts, the city has been stretching every dollar it has to pay for basics, such as salaries and electricity, and to keep up with leaking roofs and broken boilers — while at the same time making cuts to close a $114 million deficit.
The federal grants specifically pay for the extras, officials said.
'These funds are intended to supplement, not replace, the core services we provide — and they are especially critical in supporting our most vulnerable and at-risk students,' said district spokeswoman Laura Dudnick. 'While we remain hopeful for a positive resolution at the federal level, we are also exploring the use of reserve funds to help mitigate potential shortfalls and ensure continued support for those who need it most.'
Public officials as well as education organizations criticized the decision to withhold the money, questioning the legality of holding back monies approved and allocated by Congress as well as the morality of pulling funds from schools with one day's notice.
'These funds were passed by Congress and promised to communities months ago. They are not optional. They are not political bargaining chips,' said the California Afterschool Advocacy Alliance in a statement. 'In cities like Fresno, Bakersfield, Oakland, and Los Angeles, administrators are already being forced to consider if they will have to cancel youth activities mid-summer, lay off trained staff, and abandon fall hiring plans — all because this administration failed to release funds that are legally required and universally relied upon.'
School officials, however, had been braced for such a scenario. They watched as the Trump administration terminated or reneged on congressionally approved funding across several federal agencies, gutting spending on research or programs related to health, education, criminal justice and the environment, as well as funding for foreign aid and disaster relief.
It was unclear whether the freeze in funding was related to President Trump's threats to withhold federal funding based on state or local education policies related to transgender rights or diversity, equity and inclusion. All states appeared among those waiting for the funds meant to arrive in July.
State officials and private law firms have already sued the administration over the president's unilateral decisions to block or discontinue various federal funds already appropriated by Congress, including a multi-state coalition that includes California.
'This hack job has been done under the flimsy premise of 'changed agency priorities' — even when this funding has been previously appropriated by Congress and awarded to the states,' said state Attorney General Rob Bonta, in a statement regarding the lawsuit in late June. 'For federal funding to work, the states that receive that funding need to be able to plan ahead, make investments, and be confident that this funding will not be terminated on a whim.'
It was unclear whether another lawsuit would follow related to the education funding, which so far was only on hold and under review, to ensure 'taxpayer resources are spent in accordance with the President's priorities.'
'California and other states have already filed suit against the Trump Administration based on prior acts to unlawfully withhold funding because we refuse to conform with the President's political ideology,' said state Superintendent of Public Instruction Tony Thurmond in a statement. 'Courts have already taken action in our favor in these cases. California will continue to pursue all available legal remedies to the Trump Administration's unlawful withholding of federal funds appropriated by Congress.'
Yet the last-minute withholding of the grant money left local school leaders scrambling to stop what would be a domino effect across entire communities.
Local nonprofits, including literacy organizations and after-school providers, were counting on the $9.3 million and what it would mean for Oakland.
'There are people relying on that income,' Grant-Dawson said. 'It will impact our entire community.'
