US Education Dept. freezes nearly $5B on eve of new budget year, including 12.9% of Alaska’s federal funds
- Mark Sabbatini
- Jun 30
- 2 min read
Trump administration says funds for migrant, after-school, other programs still being reviewed
This is a developing story.
Nearly $5 billion in federal education funds that schools expected to have available as of Tuesday, July 1, is being withheld by the Trump administration, according to official notices sent to grantees and reports published Monday.
The funding affects "essential services for millions of students, including summer programs, after-school activities, and support for migrant children and English learners," a report published Monday by the Learning Policy Institute states. The report states the administration is withholding 11.1% of federal K-12 dollars nationally and 12.9% in Alaska — tied for the 10th-highest percentage among states.
The estimated $40 million in frozen education funds in Alaska includes about $21.3 million for "migrant education," $10.8 million for "supporting effective instruction," $1.1 million for "English language acquisition" and $6.5 million for 21st century community learning centers," according to the report.
The news site Politico reported Monday that Trump administration officials are still reviewing grant funding for the affected programs.
"It has not yet made decisions about awards for the upcoming academic year, and will not obligate their funds on Tuesday before that review is complete," the story notes.
“The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities,” the agency said in written communications to states about its plans.
The fiscal year for most states, including Alaska, begins on July 1.
A report by the Education Data Initiative states that for the 2025 fiscal year that ends Monday that "Alaska’s schools rank 10th in funding and are the most dependent on federal funding." Total education spending includes $1.6 billion in state funds, $594.5 million in local funds and $571.2 million in federal funds.
Gov. Mike Dunleavy cut $51 million in state spending with a line-item veto of $200 in per-student general education funding out of a $700 increase approved by the Legislature during the session. The $40 million in frozen federal funds applies to more specific programs.
News of the freeze occurred as the U.S. Senate is debating its version of a highly controversial federal budget bill that critics say cuts critical services for the needy such as Medicaid to partially fund tax cuts that primarily benefit the wealthy. The Congressional Budget Office estimates the Senate version will add at least $3.3 trillion to the national debt over the next decade.
• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.
