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Trump withheld billions from schools. Now he's giving it back.
Trump withheld billions from schools. Now he's giving it back.

The Herald Scotland

time4 days ago

  • Business
  • The Herald Scotland

Trump withheld billions from schools. Now he's giving it back.

Madi Biedermann, a deputy assistant secretary for communications at the White House, told USA TODAY in an email July 25 the agency's review of the money complete and the agency will begin disbursing funds to states next week. "OMB has completed its review of Title I-C, Title II-A, Title III-A, and Title IV-A ESEA funds and Title II WIOA funds, and has directed the Department to release all formula funds," Biedermann wrote. The Trump administration announced that it released more than $1 billion of the paused funding to schools for after-school and summer learning programs on July 18. The release of the funds completes the review, she said. White House unfreezes: $1 billion for after-school, summer programs The move comes after a period of anxiety among school leaders and mounting pressure from those concerned about what the funding freeze would mean for the fall. Rep. Don Bacon, R-Nebraska, who championed the release of the paused funding, posted on X, telling his constituents about "exciting news to announce!" "All frozen education funding for the upcoming school year have been released, following my letter to the OMB!" he said. Contact Kayla Jimenez at kjimenez@ Follow her on X at @kaylajjimenez.

Education Department releases $7 billion held from schools nationwide
Education Department releases $7 billion held from schools nationwide

UPI

time4 days ago

  • Business
  • UPI

Education Department releases $7 billion held from schools nationwide

July 25 (UPI) -- The U.S. Department of Education finished releasing more than $7 billion in funds for school programs nationwide after a pause at the start of July, an agency spokeswoman said Friday. Last week, $1.3 billion was released with more than $6 billion remaining. The U.S. Office of Management and Budget was reviewing the rest. "OMB has completed its review of Title I-C, Title II-A, Title III-A, and Title IV-A ESEA funds and Title II WIOA funds, and has directed the department to release all formula funds," said Madi Biedermann, deputy assistant secretary for communications for the Education Department, said in an email to media, including The Hill and ABC News. "The agency will begin dispersing funds to states next week." Earlier, the Education Department didn't disperse routine payments for schools that include money for after-school and summer activities, classes for non-English learners and adults, and teacher preparation. The funding was authorized by Congress and was due July 1, before the start of the school year. The school districts were notified of the pause one day before. U.S. Sen. Shelley Moore Capito, a Republican serving West Virginia, had pushed for the funds' release. She and nine colleagues had written a letter to OMB. "This supports critical programs so many West Virginians rely on and I made that clear to OMB Director Vought," Capito posted on X. In a news release Friday, she said: "The programs are ones that enjoy longstanding, bipartisan support like after-school and summer programs that provide learning and enrichment opportunities for school aged children, which also enables their parents to work and contribute to local economies, and programs to support adult learners working to gain employment skills, earn workforce certifications, or transition into postsecondary education." Also, 24 Democratic-led states and the District of Columbia filed suit July 14 seeking the funds' release. A coalition of school districts, teachers' unions, nonprofits and parents sued Monday in Rhode Island. Originally, the White House said the pause was because money was going to the "radical left-wing agenda." Secretary of Education Linda McMahon told ABC News on Thursday: "We want to make sure that we have the right focus on what we're trying to do with our students." She said it could be released by the end of the year. An administration official told The Washington Post that unspecified "guardrails" were put on the money so they align with the policy. More than 200 superintendents went to senators' offices to seek an end to the freeze. David Schuler, executive director of the School Superintendents Association, applauded the change. "On the heels of our survey released Tuesday, detailing how disruptive withholding these funds would be for our nation's students, we thank our members and allies on the Hill," Schuler said in a statement. "We appreciate their tireless advocacy, communication and outreach to the Administration about the importance of releasing these critical funds." The Education Department's proposed fiscal year 2026 budget is $66.7 billion, which is a 15.3% reduction , or $12 billion, from the previous year. President Donald Trump wants to dismantle the Education Department, with states and other federal agencies taking over the dispersal of funds, including student loans and other programs. On July 14, the U.S. Supreme Court allowed for mass firings by lifting an injunction while litigation proceeds. In March, the agency's workforce was slashed in half, with 1,378 terminated. The high court didn't rule on abolishing the agency, which must be approved by Congress.

Trump administration to release billions in frozen education funds
Trump administration to release billions in frozen education funds

Axios

time4 days ago

  • Business
  • Axios

Trump administration to release billions in frozen education funds

The Trump administration will release more than $5 billion in frozen funds for schools, the Department of Education announced Friday. The big picture: The administration has been facing bipartisan pressure to release the funds, with GOP senators issuing a public plea. Driving the news: The White House Office of Management and Budget completed a review of Title I-C, Title II-A, Title III-A, and Title IV-A ESEA funds and Title II WIOA funds and directed the Education Department to release them, department spokesperson Madi Biedermann said in an emailed statement. The agency will begin dispersing funds to states next week, she added. What they're saying: Sen. Shelley Moore Capito ( who was among the Republican lawmakers who signed onto a letter urging the administration to release the funding, said Friday that the funding supports critical programs people rely on. "The programs are ones that enjoy longstanding, bipartisan support like after-school and summer programs that provide learning and enrichment opportunities for school aged children, which also enables their parents to work and contribute to local economies, and programs to support adult learners working to gain employment skills, earn workforce certifications, or transition into postsecondary education, Capito said.

Trump administration will return more than $5B in public school funding it withheld
Trump administration will return more than $5B in public school funding it withheld

USA Today

time4 days ago

  • Business
  • USA Today

Trump administration will return more than $5B in public school funding it withheld

The Trump administration says it will return the remaining more than $5 billion in funding that it previously withheld from public schools for nearly a month, alleviating school administrators' anxiety about federal funding hurdles for the 2025-2026 school year. The federal government froze the money on June 30 to allow for the White House's Office of Management and Budget to review nearly $7 billion allocated for schools. Madi Biedermann, a deputy assistant secretary for communications at the White House, told USA TODAY in an email July 25 the agency's review of the money complete and the agency will begin disbursing funds to states next week. 'OMB has completed its review of Title I-C, Title II-A, Title III-A, and Title IV-A ESEA funds and Title II WIOA funds, and has directed the Department to release all formula funds," Biedermann wrote. The Trump administration announced that it released more than $1 billion of the paused funding to schools for after-school and summer learning programs on July 18. The release of the funds completes the review, she said. White House unfreezes: $1 billion for after-school, summer programs The move comes after a period of anxiety among school leaders and mounting pressure from those concerned about what the funding freeze would mean for the fall. Rep. Don Bacon, R-Nebraska, who championed the release of the paused funding, posted on X, telling his constituents about "exciting news to announce!" 'All frozen education funding for the upcoming school year have been released, following my letter to the OMB!' he said. Contact Kayla Jimenez at kjimenez@ Follow her on X at @kaylajjimenez.

Trump administration's student loan plan blocked by court, keeping treasury transfer on hold
Trump administration's student loan plan blocked by court, keeping treasury transfer on hold

Time of India

time13-06-2025

  • Business
  • Time of India

Trump administration's student loan plan blocked by court, keeping treasury transfer on hold

Court documents have revealed that the Trump administration attempted to shift the management of the $1.6 trillion federal student loan portfolio from the Department of Education to the US Treasury. The plan, however, has been halted by a federal court order , according to a report by Newsweek. According to filings submitted to a federal court, the Department of Education had been negotiating with the Treasury Department to take over the management and collections of student loans, a function historically carried out by the Federal Student Aid office. The court intervention came after a judge blocked broader efforts by the administration to reduce the Department of Education's role. As per the Newsweek report, this shift would have impacted more than 42 million borrowers in the US, raising questions about changes to repayment systems, oversight, and borrower protections. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Undo 'The Department of Education signed an Interagency Agreement with the Department of Labor on May 21 regarding administration of certain career, technical, and adult education grants. The Workforce Development Partnership will allow ED and DOL to better coordinate and deliver on workforce development programs and strengthen federal support for our nation's workforce, a top priority of the Trump Administration,' said Madi Biedermann, deputy assistant secretary for communications at the Department of Education to Newsweek. (Join our ETNRI WhatsApp channel for all the latest updates) However, the Department said implementation has been paused following a preliminary injunction from a US district judge. This ruling also ordered the rehiring of over 1,300 employees laid off in March and barred the transfer of loan oversight to other agencies like the Small Business Administration without congressional approval. Live Events You Might Also Like: Trump launches website for $5 million 'Gold Card' US residency visa — Here's how to apply Experts pointed out that any such structural change would require legislative backing. The Higher Education Act mandates that federal loans are to be managed by the Department of Education. Kevin Thompson, CEO of 9i Capital Group, told Newsweek, 'The Trump administration is largely restricted from making sweeping changes here. Dismantling a federal agency like the Department of Education requires an act of Congress.' The court's action comes as many borrowers face rising delinquencies. The Federal Reserve Bank of New York reported that between January and March 2025, around six million borrowers were more than 90 days late or in default. Financial literacy instructor Alex Beene said to Newsweek, 'The proposal for the Treasury to take over the federal administrative responsibilities for student loans is no surprise... but it would more than likely not mark a substantial change to their current payment plans.' You Might Also Like: Trump administration hit with second lawsuit over restrictions on asylum access Beene added, 'Disbanding and relocating aspects of the Department of Education would require congressional involvement, and there's already signs of hesitation to support such.' For now, the Department of Education retains control over federal student loans. Borrowers are advised to continue regular payments while legal and policy matters are reviewed.

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