Fayette County

Some federal education funding to KY, other states restored. Here’s how much

Kentucky Department of Education building
Kentucky Department of Education building Kentucky Department of Education
Key Takeaways
Key Takeaways

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  • $19.7M in after-school and summer program funds restored to Kentucky
  • U.S. Education Department releases $1.8B in frozen funds after review
  • Kentucky, still awaiting $77M, joined 23 states in federal funding lawsuit

Federal education officials have agreed to release a portion of frozen federal funding to the states, including $19.7 million to Kentucky for after-school and summer programs.

The US Department of Education abruptly froze federal funding on June 30 for after-school and summer school programming, professional development, migrant education, English language learners and adult literacy. At the time, the department said it was reviewing the funding streams to determine if those funds met President Donald Trump’s priorities.

The move surprised state and local education officials. Those federal funds are typically released July 1. In total, $8.6 billion to the states was kept in Washington D.C.

In total, Kentucky had $96 million in federal funds withheld.

With the restoration of the $19.7 million, the state is still waiting for $77 million in federal education funds to be released.

“Kentucky needs the entire $96 million in federal education funding promised to our state, not just a portion,” said Gov. Andy Beshear. “These funds were appropriated by Congress for the education of Kentuckians and it’s my job to fight for them on behalf of our kids, our people and our future.”

In a statement Friday, the Office of Management and Budget, which oversees federal funding, said the review of the after-school and summer education funding was complete and $1.8 billion in previously withheld funding to the states will be sent Monday.

It is not clear when the review of the other federal funding streams will be completed.

The move to release the money comes after Kentucky joined 23 other states in a federal lawsuit challenging federal education officials’ ability to withhold previously allocated funds.

Beshear, when he announced Kentucky was joining the lawsuit, said school districts were depending on those federal funds.

“This is not about Democrat or Republican – these funds were appropriated by Congress for the education of Kentucky’s children, and it’s my job to ensure we get them,” he said.

Congressional Democrats and some Republicans, including U.S. Sen. Mitch McConnell of Kentucky, also sent federal education officials and the Office of Management and Budget letters demanding the release of the funds.

This story was originally published July 22, 2025 at 4:30 AM.

Beth Musgrave
Lexington Herald-Leader
Beth Musgrave has covered government and politics for the Herald-Leader for more than a decade. A graduate of Northwestern University, she has worked as a reporter in Kentucky, Indiana, Mississippi, Illinois and Washington D.C. Support my work with a digital subscription
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