FY25 Allocation Delays and Potential Impoundment Endanger Language Education and More.

Less than a week before  July 1st, the date on which states are supposed to receive the first tranche if their FY25 K-12 education funds, the Department of Education has still not announced allocations for six large programs, which collectively total more than $5 billion. Those programs are:

• Title I, C: State Agency Program – Migrant Education – $375.6 million

• Title II-A: Supporting Effective Instruction State Grants -- $2.19 billon

• Title IV-B: 21st Century Community Learning Centers -- $1.33 billion

• Title III: English Language Acquisition Grants -- $890 million

• Adult Basic and Literacy Education Instruction -- $629.6 million

• English Literacy and Civics Education State Grants -- $85.9 million

According to a recent EdWeek article, these allocation delays are already causing school districts to lay-off staff, cancel programs and delay new contracts. 

On June 25th, the Washington Post published a lengthy article that details how these education allocation delays are only the tip of the iceberg. Apparently, there are at least 200 federal government programs that are enduring delays in FY 25 allocations. Even more concerning is that the Post article found that these delays are part of a plan by the Trump Administration to challenge existing federal laws that bar the President from impounding Congressionally approved and presidentially enacted funds. According to this article:

“The Trump Administration is preparing to test a 1974 budget law by refusing to spend congressionally mandated funds, senior federal officials say — an escalation that could change the balance of power between Congress and the White House.

“In both internal communications and interviews, more than two dozen current and former employees across multiple agencies said the administration appears to be readying to push the boundaries of the law meant to prevent the president from unilaterally overturning spending decisions made by Congress.

“Key White House aides have long argued that the law is an unconstitutional limit on presidential power and suggested they will seek court rulings to overturn it, which could allow the White House to determine which spending to carry out.

“The nonpartisan Government Accountability Office has issued two rulings that funds have been illegally withheld already, and congressional Democrats have said a far wider scope of funding freezes has broken the budget law. Although the White House denies any funds have been “impounded" so far, officials at a half-dozen agencies expressed alarm to The Washington Post over how the disbursement of funds has slowed, stopped or been delayed — often, they say, with little clear legal justification. The scale of canceled or withheld funds remains opaque.

“Deadlines in the coming weeks will clarify how much the administration wants to test the law, enacted in 1974 after President Richard M. Nixon’s Watergate scandal. White House officials are planning to “defer” roughly 200 separate accounts across the federal government, according to two people familiar with the matter, who like many others interviewed for this story spoke on the condition of anonymity for fear of retribution. These delays, which would affect billions of dollars at a wide range of U.S. agencies, probably would be illegal if they prevent the funds from being spent before this fiscal year ends on Sept. 30, the people said.

“Interviews with federal workers show that a wide spectrum of government spending has already been stalled. Major scientific research grants have already been terminated without public notice in recent weeks. At one federal agency, staff were told — via a directive that took effect on a Sunday — that almost all contracts over $250,000 no longer could be signed. At the General Services Administration, which manages federal real estate, the Trump administration is trying to cut costs by rejecting many agencies’ requests for facilities repairs paid for by those agencies. In some instances, officials say it’s unclear whether the budget law has been violated already or is merely on track to be breached — but the rejections have provoked internal alarm about their legality either way.”

At a June 25th hearing before the Senate Appropriations Committee on a rescission bill, OMB Director Russell Vought received multiple questions from panel Democrats, including Committee Ranking Member Patty Murray (D-WA) and Subcommittee Ranking Member Tammy Baldwin (D-WI), about the Administration’s intentions to implement a pocket impoundment of federal program funds by holding onto them until after the federal fiscal year ends or seeking to rescind them in a future package. Vought indicated that the Administration was considering its options but denied that the Administration has made any decisions on its course of action. 

Baldwin specifically mentioned the education programs with delayed FY25 allocations and sought his comment on whether these funds could be rescinded. She asked: “Right now the Department of Education is not committed to spending appropriated funding for formula grant programs that should be allocated to states and school districts in the coming days. That is leaving schools completely in the dark about how much funding they will have for the school year that starts in two months. Would funding for the Department of Education formula education grants for afterschool programs or funding directly supporting teachers and educators be eligible for the next rescissions package Proposal?” Vought’s response is that the Administration was reviewing the programs and “no decision has been made on whether they will be a part of a future rescissions package.”

JNCL-NCLIS urges every advocate for education to take action immediately and participate in our call to action immediately as the deadline for school’s to receive their funding approaches.

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