US Department of Education will release $667M to Texas schools after delays

AUSTIN (KXAN) – The U.S. Department of Education will release $667 million in federal education funds to Texas after withholding the money for nearly a month, according to the Texas Education Agency.

The USDE notified state education agencies through email back in June that it was delaying the release of nearly $7 billion in federal funding nationwide until it completed a review of five grant programs, including those that support afterschool programs, English language learning programs and services for migrant students.

In the email, the USDE told state education agencies that the department is “committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities.”

The funding delays caused issues at school districts across the state, some of which had already passed budgets accounting for the federal dollars held up in review. Austin Independent School District officials said more than 100 district employees were informed their jobs could potentially be at risk due to uncertainty surrounding whether the district would receive the $9 million in federal funds that support their positions.

According to TEA officials, USDE plans to start releasing the funding next week. The federal department had already released part of the money held up in review on July 21 — $1.3 billion earmarked for afterschool programs.

The decision to release the funds comes after multiple school districts, nonprofits, and teachers’ unions, including the Texas American Federation of Teachers, filed a lawsuit against the Trump administration for blocking the federal education funding.

The lawsuit alleged that “because of the withholding of funds, school districts have had to cancel orders for new curriculum, delay critical teacher training, pause contracts for services for English language learners, or take other actions to avoid incurring expenses that they cannot afford to pay.”

The lawsuit also alleged that the USDE provided no legal authority or timetable for reviewing the funding and did not provide details on what elements were under review.