Reports: Feds release billions in withheld funding for schools, including KY’s
AI-generated summary reviewed by our newsroom.
- Federal officials to release over $5B in withheld education funding nationwide.
- Kentucky set to receive $96M total for migrant, ELL and school support programs.
- Funding release follows lawsuits and bipartisan pressure from state leaders.
The U.S. Department of Education announced it will release more than $5 billion in previously withheld federal funding, including $77 million to Kentucky school districts, according to several news reports.
The money will be used for migrant, English-language learner education and professional development.
In a July 25 email to USA TODAY, a White House official said the Office of Management and Budget had completed a financial review of the money and will begin disbursing funds to states next week, the media outlet reported Friday afternoon.
The New York Times also confirmed the White House’s plans to release the frozen education funds.
Federal education officials announced July 18 it would release more than $1 billion in federal education funding for after school and summer school learning activities. That money included $19.8 million to Kentucky.
With the release of the remaining funding, Kentucky will hopefully soon have the $96 million in federal education funding that had previously been withheld.
Officials with the Kentucky Department of Education confirmed Friday they had received notification the funds will be released.
“Earlier today, the Kentucky Department of Education received notice from the United States Department of Education that beginning next week, USED will release the remaining Elementary & Secondary Education Act Title program funding that was previously withheld,” said KDE spokesperson Myles Young.
“As we receive this information, we will communicate with our district partners regarding district allocations,” Young said.
The U.S. Department of Education notified states on June 30 —the day before federal funds are typically released to the states —it was reviewing several federal funding streams to determine if those funding streams aligned with President Donald Trump’s funding priorities.
The hold-up of those federal funds created confusion and turmoil for local school districts, which built budgets around those federal funds.
It also prompted legal challenges and demands from legislators to release the funds.
Earlier this month, Democrat Gov. Andy Beshear said Kentucky joined 23 other states in a lawsuit challenging federal education officials ability to withhold previously-allocated federal funding.
In addition, Democrat and Republican leaders, including U.S. Sen. Mitch McConnell, R-Louisville, took the rare step to write letters to the Trump administration demanding the federal funding be released.
This story was originally published July 25, 2025 at 3:39 PM.
