Sen. Tammy Baldwin toured La Follette High School in Madison on Tuesday. (Photo by Baylor Spears/ Wisconsin Examiner)

Opposition to the Trump administration’s efforts to close the U.S. Department of Education is gaining momentum, Sen. Tammy Baldwin said Tuesday during a visit to La Follette High School in Madison.

Baldwin visited the school, part of the state’s second largest school district, as new educators met for an orientation ahead of the start of the school year on September 3. 

“[New educators are] coming or returning to teaching at a time where we have seen this administration doing devastating things to education and education funding,” Baldwin, a Wisconsin Democrat, told reporters after a tour of the school. “It has proposed the abolition of the Education Department. He wants to dismantle it. He’s called for the end to it, but he also knows that there are some constraints because the Education Department was set up by Congress and it’s funded by Congress.” 

President Donald Trump signed an executive order in March ordering Education Sec. Linda McMahon to “take all necessary steps to facilitate the closure of the Department of Education and return authority over education to the States and local communities while ensuring the effective and uninterrupted delivery of services, programs, and benefits on which Americans rely.” McMahon has said she is “dead serious” about putting herself out of a job.

In June, schools across the country were thrown into uncertainty when the Trump administration withheld over $6 billion in federal funds meant to support English language learners, migrants, low-income children, adult learners, after-school programs and more. The frozen funds included $70 million for Wisconsin. The administration decided to reverse course and release the funds in late July after Republican and Democratic Senators both called on the administration to do so. 

Madison Metropolitan School District Superintendent Joe Gothard said that, as of Tuesday, the district had expected $3.4 million and is “still waiting for direct language to ensure that we are going to be reimbursed for the cost that we plan to incur this school year.” 

Without that money, “students would not receive the services they deserve, and that could be by way of reading interventions, it could be some of the outreach we’re able to do with communities, with families,” Gothard said. “$3.4 million out of $6 billion may not seem like a lot, but those are targeted funds at students who need it most.” 

“I’m grateful that we’ve had support for the unfreezing of these funds,” Gothard said, adding that uncertainty of funding “undermines public education and who it’s for.” The lack of certainty is leading the district to rely more heavily on the local community and government for the support the district needs.

“I’ve got a range of students,” Thompson said, adding that the City Center allows for students to “come in and get what they need.”

Baldwin also got to see the school’s music room, library, gymnasium and technical education spaces, including an autoshop. 

“One of my most popular classes is our cooking classes, right, and kids get to learn basic life skills, and then, they actually do cooking for the school,” Thompson said. 

“And nutrition and all that stuff,” Baldwin added. 

“Yeah, you know, everything kids don’t want to hear,” Thompson joked. 

The Trump administration’s efforts to close the Education Department comes even as some Republican lawmakers are balking at the idea. Politico  reported that Republican lawmakers looking to fulfill Trump’s agenda are considering breaking the process down into smaller bills given the opposition to shutting down the department, especially from those in school districts that have benefited from funding and those that rely on the agency for guidance. 

When it comes to challenging the ongoing federal uncertainty, Baldwin pointed to a recent bill that came out of the Senate Appropriations Subcommittee on Labor, Health, and Human Services, and Education and was recently approved by the full committee. 

“We have seen him propose to put some of the career and technical education programs in the Labor Department rather than keeping them in the Education Department,” Baldwin said. “He’s talked about putting the IDEA program” — which serves students with disabilities under the Individuals With Disabilities Education Act — “into the Department of Health and Human Services, where it would not be suited, and he is defunding programs left and right, so we’re fighting back.” 

According to Baldwin’s office, the bill would provide $79 billion in discretionary funding for the Department of Education  and would put measures into place to limit the ability to downsize the department’s role. The bill includes a requirement to make formula grants available on time and maintain the staff necessary to ensure the department carries out its statutory responsibilities and carries out programs and activities funded in the bill in a timely manner. 

Baldwin said the bill is “wildly bipartisan,” noting it passed the committee on a 26-3 vote at the end of July. 

“We have more work to do. It has to go through the whole process and end up on the president’s desk before its law,” Baldwin said. “I feel like we have momentum in standing up against this president’s plans with education, so when we return to session the day after Labor Day, we’re going to continue to press to restore all funding, and fight back against this idea of abolishing the Department of Education.”

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The Lyndon Baines Johnson Department of Education Building in Washington, D.C., in a file photo from November 2024. (Photo by Shauneen Miranda/States Newsroom)

WASHINGTON — The Trump administration said Friday it’ll soon release billions in Education Department funding that has been frozen for weeks, delaying disbursements to K-12 schools throughout the country.

The funding — which goes toward migrant education, English-language learning and other programs — was supposed to go out before July 1, but the administration informed schools just one day before that it was instead holding onto $6.8 billion while staff conducted a review. Members of both parties in Congress objected to the move.

The Education Department released $1.3 billion for before- and after-school programs as well as summer programs in mid-July, but the rest of the funding remained stalled.

Madi Biedermann, a Department of Education spokesperson, wrote in an email to States Newsroom that the White House budget office “has completed its review” of the remaining accounts and “has directed the Department to release all formula funds.”

The administration will begin sending that money to school districts next week, Biedermann wrote.

Appropriators cheer

Maine Republican Sen. Susan Collins, chairwoman of the Appropriations Committee, wrote in a statement the “funds are essential to the operation of Maine’s public schools, supporting everything from classroom instruction to adult education.”

“I am pleased that following outreach from my colleagues and me, the Administration has agreed to release these highly-anticipated resources,” Collins wrote. “I will continue working to ensure that education funds are delivered without delay so that schools have adequate time to plan their finances for the upcoming school year, allowing students to arrive back to class this fall to properly-funded schools.”

Collins and nine other Republican senators wrote a letter to Office of Management and Budget Director Russ Vought earlier this month asking him to “faithfully implement” the spending law Congress approved in March.

“The decision to withhold this funding is contrary to President (Donald) Trump’s goal of returning K-12 education to the states,” the GOP senators wrote. “This funding goes directly to states and local school districts, where local leaders decide how this funding is spent, because as we know, local communities know how to best serve students and families.

“Withholding this funding denies states and communities the opportunity to pursue localized initiatives to support students and their families.”

West Virginia Republican Sen. Shelley Moore Capito, chairwoman of the appropriations subcommittee that funds the Education Department, wrote in a statement released Friday she was glad to see the funding unfrozen.

“The programs are ones that enjoy longstanding, bipartisan support like after-school and summer programs that provide learning and enrichment opportunities for school aged children, which also enables their parents to work and contribute to local economies, and programs to support adult learners working to gain employment skills, earn workforce certifications, or transition into postsecondary education,” Capito wrote. “That’s why it’s important we continue to protect and support these programs.”

Republicans in the U.S. Senate are calling on the Trump administration to release billions in frozen school funding. (Photo by Getty Images)

WASHINGTON — Republican members of the U.S. Senate called on Office of Management and Budget Director Russ Vought in a letter Wednesday to release the $6.8 billion in funds for K-12 schools that the Trump administration is withholding.

The letter marked a major friction point between President Donald Trump and influential lawmakers in his own party as his administration tests the limits of the executive branch’s authority in clawing back federal dollars Congress has already appropriated. Every state has millions in school funding held up as a result of the freeze.

Wednesday’s letter came after the Supreme Court temporarily cleared the way earlier this week for the administration to carry out mass layoffs and a plan to dramatically downsize the Department of Education that Trump ordered earlier this year.

Just a day ahead of the July 1 date when these funds are typically disbursed as educators plan for the coming school year, the Education Department informed states that it would be withholding funding for several programs, including before- and after-school programs, migrant education and English-language learning, among other initiatives.

“Withholding these funds will harm students, families, and local economies,” wrote the 10 GOP senators, many of them members of committees that make decisions on spending. Sen. Shelley Moore Capito, a West Virginia Republican and chair of the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, led the letter.

Sen. Susan Collins of Maine, chair of the broader Senate Appropriations Committee, also signed onto the letter, along with: Sens. Katie Britt of Alabama, Lisa Murkowski of Alaska, John Boozman of Arkansas, Mitch McConnell of Kentucky, Deb Fischer of Nebraska, John Hoeven of North Dakota, Mike Rounds of South Dakota and Jim Justice of West Virginia.

“The decision to withhold this funding is contrary to President Trump’s goal of returning K-12 education to the states,” the senators wrote. “This funding goes directly to states and local school districts, where local leaders decide how this funding is spent, because as we know, local communities know how to best serve students and families.”

States Newsroom has asked the Office of Management and Budget for comment on the letter.

Meanwhile, a slew of congressional Democrats and one independent — 32 senators and 150 House Democrats — urged Vought and Education Secretary Linda McMahon in two letters sent last week to immediately release the funds they say are being withheld “illegally.”

Democratic attorneys general and governors also pushed back on these withheld funds when a coalition of 24 states and the District of Columbia sued the administration earlier this week. 

Keri Rodrigues, president of the National Parents Union, speaks at a rally on Friday, March 14, 2025, in Washington, D.C, protesting the U.S. Education Department’s mass layoffs and President Donald Trump’s plans to dismantle the agency. (Photo by Shauneen Miranda/States Newsroom)

WASHINGTON  — The U.S. Department of Education has emerged as central in the struggle over control of the power of the purse in the nation’s capital.

Democrats in Congress are pushing back hard on the Trump administration’s freeze of $6.8 billion in funds for after-school programs and more at public schools, some of which open their doors a few weeks from now. California alone lost access to $939 million and every state is seeing millions of dollars frozen.

At the same time, the Supreme Court on Monday slammed the door on judicial orders that blocked the dismantling of the 45-year-old agency that Congress created and funds.

The nation’s highest court cleared the way for the administration to proceed, for now, with mass layoffs and a plan to dramatically downsize the Department of Education that President Donald Trump ordered earlier this year.

In her scathing dissent, Justice Sonia Sotomayor wrote that “the majority is either willfully blind to the implications of its ruling or naive, but either way the threat to our Constitution’s separation of powers is grave.”

Sotomayor, joined by Justices Elena Kagan and Ketanji Brown Jackson, wrote that the president “must take care that the laws are faithfully executed, not set out to dismantle them.”

“That basic rule undergirds our Constitution’s separation of powers,” she wrote. “Yet today, the majority rewards clear defiance of that core principle with emergency relief.”

Just a day after the Supreme Court’s decision, House Speaker Mike Johnson told reporters at a Tuesday press conference that while he hasn’t had a chance to digest the Supreme Court’s order, he also knows that “since its creation, the Department of Education has been wielded by the executive branch.”

“I think that was the intent of Congress, as I understood it back then. We have a large say in that, but we’re going to coordinate that with the White House,” the Louisiana Republican said.

“If we see that the separation of powers is being breached in some way, we’ll act, but I haven’t seen that yet,” he added.

Letters from Democrats on frozen funds

Two letters from Senate and House Democrats demanding the administration release the $6.8 billion in federal funds for various education initiatives also depict the Education Department as a key part of the tussle between the executive branch and Congress.

Just a day ahead of the July 1 date when these funds are typically sent out as educators plan for the coming school year, the department informed states that it would be withholding funding for programs, including before- and after-school programs, migrant education, English-language learning and adult education and literacy, among other initiatives.

Thirty-two senators and 150 House Democrats wrote to Education Secretary Linda McMahon and Office of Management and Budget Director Russ Vought last week asking to immediately unfreeze those dollars they say are being withheld “illegally.”

“It is unacceptable that the administration is picking and choosing what parts of the appropriations law to follow, and you must immediately implement the entire law as Congress intended and as the oaths you swore require you to do,” the senators wrote in their letter.

The respective top Democrats on the Senate Appropriations Committee and its subcommittee overseeing Education Department funding, Sens. Patty Murray of Washington state and Tammy Baldwin of Wisconsin, led the letter, alongside Vermont independent Sen. Bernie Sanders, the ranking member of the Senate Committee on Health, Education, Labor and Pensions.

In the lower chamber, House Democrats wrote that “without these funds, schools are facing difficult and unnecessary decisions on programs for students and teachers.”

“No more excuses — follow the law and release the funding meant for our schools, teachers, and families,” they added.

Georgia’s Rep. Lucy McBath led the letter, along with the respective top Democrats on the House Committee on Education and Workforce, its subcommittee on early childhood, elementary and secondary education and its panel on higher education and workforce development: Reps. Bobby Scott of Virginia, Suzanne Bonamici of Oregon and Alma Adams of North Carolina.

Democratic attorneys general, governors file suit

Meanwhile, a coalition of 24 states and the District of Columbia sued the Trump administration on Monday over those withheld funds, again arguing that Congress has the power to direct funding.

The states suing include: Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington state and Wisconsin.

Pennsylvania Gov. Josh Shapiro and Kentucky Gov. Andy Beshear, both Democrats, also signed onto the suit filed in a Rhode Island federal court.

“Not only does Congress require that Defendants make funds available for obligation to the States, Congress, in conjunction with (Education Department) regulations, also directs the timing of when those funds should be made available,” the coalition wrote.

An analysis earlier in July by New America, a left-leaning think tank, found that the top five school districts with the greatest total funding risk per pupil include those in at least two red states: Montana’s Cleveland Elementary School District, Kester Elementary School District and Grant Elementary School District, along with Oregon’s Yoncalla School District 32 and Texas’ Boles Independent School District.

The think tank notes that program finance data was not available for Massachusetts, New Hampshire, New York and Wisconsin. 

Wisconsin has joined a lawsuit against the Trump administration's action to withhold $6.8 billion for education progams supporting English language learners, migrants, low-income children, adult learners and others. (Photo by Klaus Vedfelt/Getty Images)

Wisconsin Attorney General Josh Kaul joined 23 states and the District of Columbia Monday in suing the Trump administration for withholding $6.8 billion meant for six U.S. Department of Education programs, which help support English language learners, migrants, low-income children, adult learners and others. 

The funds, approved in the Full-Year Continuing Appropriations and Extensions Act 2025 and signed into law on March 15, are typically distributed to states by July 1. However, the Department of Education notified the Wisconsin Department of Public Instruction as well as other state education agencies on June 30 that they would be withholding the funds. 

“Depriving our schools of critical resources is bad for our schools, bad for students, and bad for Wisconsin,” Attorney General Josh Kaul said in a statement. “This unlawful funding freeze should be stopped.”

The Wisconsin DPI said in a statement that the federal agency gave no specific explanation for the action. Instead, the U.S. Department of Education said that “decisions have not yet been made concerning submissions and awards for this upcoming academic year” and “accordingly, the Department will not be issuing Grant Award Notifications obligating funds for these programs on July 1 prior to completing that review. The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities.” 

The withholding of funds comes as the Trump administration continues to pursue closing the Department of Education with a plan to lay off more than 1,000 agency employees and resume drastically cutting the agency after getting the greenlight from the U.S. Supreme Court Monday. The Trump administration has also withheld other funds this year, including for grants for mental health in schools. A spokesperson for the Office of Management and Budget said in a statement about the review of education funding that “initial findings have shown that many of these grant programs have been grossly misused to subsidize a radical leftwing agenda.” 

The multi-state lawsuit argues that the freeze of the $6.8 billion violates federal laws and regulations that authorize and fund the programs, federal laws, including the Antideficiency Act and Impoundment Control Act, that govern the federal budgeting process and the constitutional separation of powers doctrine and the Presentment Clause. 

The coalition of states is requesting that the court provide declaratory relief by finding the freeze is unlawful and offer injunctive relief by requiring the release of the funds. 

Over $72 million is being withheld from Wisconsin. Without the funding, school districts face funding shortfalls for programs that have already been planned, DPI may have to lay off 20 employees and programs at Wisconsin’s technical colleges are in trouble with $7.5 million in adult education grants being withheld.

State Superintendent Jill Underly said in a statement that Wisconsin schools depend on the federal funding distributed through an array of programs to support students. There are five programs affected: Title I-C, which supports migrant education, Title II-A, which goes towards teacher training and retention, Title III-A, which supports education of English language learners, Title IV-A, which is for student enrichment and after-school programs and Title IV-B, which supports community learning centers.

“Make no mistake, stopping this money has had and will continue to harm our families and communities,” Underly said. 

Wisconsin schools have received funding through these federal programs for decades to help carry out related programs. According to DPI, federal funding makes up about 8% of funding for Wisconsin schools with nearly $850 million coming into the state. 

Sen. Tammy Baldwin alongside 31 other U.S. senators penned a letter to Office of Management and Budget Director Russell Vought and Education Secretary Linda McMahon, calling on them to release the money. 

“This delay not only undermines effective state and local planning for using these funds to address student needs consistent with federal education law, which often takes place months before these funds become available, but also flies in the face of the nation’s education laws which confers state and local educational agency discretion on permissible uses of federal formula grant funds,” the senators wrote. “We are shocked by the continued lack of respect for states and local schools evidenced by this latest action by the administration.”

“It is unacceptable that the administration is picking and choosing what parts of the appropriations law to follow, and you must immediately implement the entire law as Congress intended and as the oaths you swore require you to do,” the lawmakers said. 

The lawmakers also said the “review” being undertaken by the administration appears to be intentional to delay the funding and will result in budget cuts for schools. They said it is happening “with no public information about what the review entails, what data the administration is examining or a timeline for such review.”

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The U.S. Supreme Court ruled in an unsigned order to allow President Donald Trump to dismantle the U.S. Department of Education. (Photo by Jane Norman/States Newsroom)

WASHINGTON — The U.S. Supreme Court on Monday allowed the Trump administration, for now, to proceed with mass layoffs and a plan to dramatically downsize the Education Department ordered earlier this year.

The decision from the nation’s highest court marks a major victory for President Donald Trump, who has sought to overhaul the federal role in education.

The order was unsigned, while Justices Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson dissented, indicating a 6-3 decision.

The dissent, authored by Sotomayor, was scathing.

“The majority is either willfully blind to the implications of its ruling or naive,” she wrote. “But either way the threat to our Constitution’s separation of powers is grave.”

The Supreme Court’s order temporarily suspends lower court orders that: forced the agency to reinstate more than 1,300 employees gutted from a reduction in force, or RIF, effort; blocked the department from carrying out Trump’s executive order to dismantle the department; and barred the agency from transferring some services to other federal agencies.

In a statement Monday, Education Secretary Linda McMahon celebrated the decision, saying “today, the Supreme Court again confirmed the obvious: the President of the United States, as the head of the Executive Branch, has the ultimate authority to make decisions about staffing levels, administrative organization, and day-to-day operations of federal agencies.”

“While today’s ruling is a significant win for students and families, it is a shame that the highest court in the land had to step in to allow President Trump to advance the reforms Americans elected him to deliver using the authorities granted to him by the U.S. Constitution,” she said.

“The U.S. Department of Education will now deliver on its mandate to restore excellence in American education. We will carry out the reduction in force to promote efficiency and accountability and to ensure resources are directed where they matter most — to students, parents, and teachers.”

A coalition of teachers, unions and school districts that sued over Trump’s order to eliminate the department and the mass layoffs said they were “incredibly disappointed by the Supreme Court’s decision to allow the Trump-Vance administration to proceed with its harmful efforts to dismantle the Department of Education while our case moves forward.”

“This unlawful plan will immediately and irreparably harm students, educators and communities across our nation. Children will be among those hurt the most by this decision. We will never stop fighting on behalf of all students and public schools and the protections, services, and resources they need to thrive,” they added.

Challenge from Democratic state AGs, unions

The labor and advocacy coalition and a slew of Democratic attorneys general each sued in March over some of the administration’s most consequential education initiatives.

One of the lawsuits comes from a coalition of Democratic attorneys general in Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New York, New Jersey, Oregon, Rhode Island, Vermont, Washington state and Wisconsin.

The other lawsuit was brought by the American Federation of Teachers, its Massachusetts chapter, AFSCME Council 93, the American Association of University Professors, the Service Employees International Union and two school districts in Massachusetts.

A Massachusetts federal judge consolidated the lawsuits and granted the states’ and groups’ preliminary injunction in May.

The administration appealed that decision, leading to a June decision from the U.S. Court of Appeals for the 1st Circuit keeping in place the district court’s order.

The Trump administration then asked the Supreme Court to intervene. 

Reading Time: 3 minutes

A program at Marquette University that trains Milwaukee-area teachers to incorporate the city’s untold stories – particularly those of communities of color –  into their classrooms is losing federal funding.

The U.S. Department of Education sent a letter that stated it will not continue the grant, saying the program – called MKE Roots – reflects “the prior administration’s priorities and policy preferences and conflict with those of the current administration.” 

The decision means funding will end this fall, leading to staff cuts and scaling back of programming. 

It’s a loss for the teachers who participate – but one that will affect thousands of Milwaukee students, said Melissa Gibson, faculty director of MKE Roots.

“Students realize that their communities have this whole rich history of organizing and advocating, making our city not only what it is but also a better place,” Gibson said. “They feel more empowered to be their own community and civic leaders.”

‘A rich tapestry of cultural experiences’

MKE Roots is a professional development program for Milwaukee-area teachers that includes a weeklong summer training in which they visit local landmarks and meet with historians and community leaders. 

Places this summer included America’s Black Holocaust Museum and Sherman Phoenix Marketplace. 

Before the school year begins, teachers get help developing lesson plans that reflect what they’ve learned, then they meet at least four more times to collaborate. 

There is also an online map with lesson plans and primary sources tied to Milwaukee neighborhoods. 

“We are heralding the men and women – the legacies of our city’s past – so that our students understand that they are part of a rich tapestry of cultural experiences,” said Robert Smith, director of Marquette’s Center for Urban Research, Teaching & Outreach, which houses MKE Roots.

Milwaukee schools often teach local history through a curriculum that focuses largely on traditional narratives – such as beer barons and European immigrants, Gibson said. 

“Students don’t know that Black Milwaukeeans have been here since the 1800s” before Wisconsin was a state, she said. “They don’t know how and why Mexican migrants came to Milwaukee in the 1920s. They don’t know that Wisconsin was one of the first states to pass anti-LGBTQ discrimination laws.” 

“No matter where you are as a teacher, you do something like this, and it gives you perspectives that I think truly, as a teacher – especially today – you need,” said Jeffrey Gervais, a fifth-grade teacher at Hamlin Garland School who is participating in this year’s training. 

The letter 

In 2023, the Department of Education awarded MKE Roots a three-year grant for $1.27 million. However, on June 18, the department sent a letter to Gibson that stated it will not fund the program for the third year. 

The letter gave four possible reasons for the decision: The program violates the letter or purpose of federal civil rights law; conflicts with the department’s policy of prioritizing merit, fairness and excellence in education; undermines the well-being of the students the program is intended to help; or constitutes an inappropriate use of federal funds. 

It did not specify which reason – or reasons – apply in this case. 

The Department of Education did not respond to questions about its decision, but Smith said he can only assume it is because of the Trump administration’s efforts to undermine programs related to diversity, equity and inclusion, often known as DEI.

Within two weeks of his inauguration, Donald Trump issued an executive order specifically on DEI in K-12 education. 

It calls for eliminating federal funding that supports “gender ideology” or “discriminatory equity ideology” in K-12 curriculum, instruction, programs or activities, as well as teacher education, certification, licensing, employment or training. 

DEI or not DEI? 

Smith rejects the idea that MKE Roots is a DEI program. 

“The notion of DEI is fundamentally based on people having equal access to institutions,” he said. “What we are doing is actually attending to the various populations of students we serve.”

Smith also disputes the reasons listed in the letter from the Department of Education. 

“None of the reasons are accurate relative to what we do with MKE Roots,” he said. “This is civics education at its purest – making sure our teachers have the tools to engage in important conversations with their students about Milwaukee, Wisconsin, their neighborhoods and communities, and their role in shaping those neighborhoods and communities.”

Smith and Gibson said they are appealing the decision. 

Gibson said she is considering applying for a new Department of Education grant for civic education programs that develop “citizen competency and informed patriotism” especially among low-income students and underserved populations, according to the grant’s description. 

It would require redesigning aspects of MKE Roots to put “founding documents in conversation with local context,” Gibson said.  

“We would need to find a different funding stream to maintain what MKE Roots currently does,” she added. 

Regardless of the outcome, she said, the work will continue. 

“I was doing this work before I had funding, and I’ll do it after I have funding.” 

A program helps teachers tell Milwaukee’s untold stories. The Trump administration says it will no longer fund it. is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

The U.S. Education Department directed its federal student loan servicers to restart interest accrual on Aug. 1 for participants in the Biden-era SAVE plan. (Catherine Lane/Getty Images)

WASHINGTON — Interest accrual on the debt of nearly 7.7 million student loan borrowers enrolled in the Saving on a Valuable Education plan will resume Aug. 1, the U.S. Education Department said Wednesday.

The Biden-era income-driven repayment plan better known as SAVE saw legal challenges from several GOP-led states beginning in 2024, creating uncertainty for borrowers who were placed in an interest-free forbearance amid that legal limbo.

The SAVE plan, created in 2023, aimed to provide lower monthly loan payments for borrowers and forgive remaining debt after a certain period of time.

In February, a federal appeals court upheld a lower court injunction that blocked the SAVE plan from going into effect. The department said Wednesday that it’s instructing its federal student loan servicers to start charging interest Aug. 1 to comply with court orders.

When the SAVE plan forbearance ends, “borrowers will be responsible for making monthly payments that include any accrued interest as well as their principal amounts,” the department said in a written announcement.

“For years, the Biden Administration used so-called ‘loan forgiveness’ promises to win votes, but federal courts repeatedly ruled that those actions were unlawful,” Education Secretary Linda McMahon said in a statement alongside the announcement.

“Congress designed these programs to ensure that borrowers repay their loans, yet the Biden Administration tried to illegally force taxpayers to foot the bill instead,” she added.

McMahon said her department is urging borrowers under the SAVE plan to “quickly transition to a legally compliant repayment plan.”

“Borrowers in SAVE cannot access important loan benefits and cannot make progress toward loan discharge programs authorized by Congress,” she said.

‘Unnecessary interest charges’

Mike Pierce, executive director of the Student Borrower Protection Center, blasted the department’s decision in a statement Wednesday.

“Instead of fixing the broken student loan system, Secretary McMahon is choosing to drown millions of people in unnecessary interest charges and blaming unrelated court cases for her own mismanagement,” he said.

“Every day, we hear from borrowers waiting on hold with their servicer for hours, begging the government to let them out of this forbearance, and help them get back on track — instead, McMahon is choosing to jack up the cost of their student debt without giving them a way out.”

The agency has taken heat for its sweeping actions in the months since President Donald Trump took office as he and his administration look to dismantle the department.

The department is also mired in a legal challenge over some of its most significant efforts so far, including laying off more than 1,300 employees earlier this year as part of a reduction in force effort, an executive order calling on McMahon to facilitate the closure of her own agency and Trump’s proposal to transfer some services to other federal agencies. These actions have been temporarily halted in court.

Meanwhile, President Donald Trump signed a massive tax and spending cut bill into law last week, part of which forces any borrower under the SAVE plan to opt in to a different repayment plan by July 1, 2028, or be automatically placed in a new, income-based repayment plan. 

A student draws with chalk on an outdoor court at a New York City public school in 2022. If states don’t receive billions in congressionally approved funding for K-12 education that the Trump administration is withholding, officials say programs for migrants, English-language learners and kids in need of after-school care will be at risk. (Photo by Michael Loccisano/Getty Images)

The U.S. Department of Education’s decision last week to hold back $6.8 billion in federal K-12 funds next year has triggered alarm among state education officials, school leaders and advocacy groups nationwide over how the lack of funds will affect their after-school, enrichment and language-learning services.

The Trump administration’s decision to freeze the funding has put states in “triage mode” as they scramble to decide what programs may be cut without that funding, said Mary Kusler, senior director for the Center for Advocacy at the National Education Association. The money was approved by Congress to support education for English language learners, migrants, low-income children and adults learning to read, among others.

As of July 1, school systems are unable to draw down funding, jeopardizing summer programs, hiring and early-year planning for the 2025–26 school year.

The funding freeze affects several core programs: Title II-A (educator training and recruitment), Title III-A (English learner support), Title IV-A (student enrichment and after-school), as well as migrant education and adult education and literacy grants. Trump has proposed eliminating all those programs in his proposed budget for next fiscal year, but that proposal hasn’t gone through Congress.

State superintendents sent out missives to school districts early this week and now are scrambling to make choices.

“This is not about political philosophy, this is about reliability and consistency,” Alabama state Superintendent Eric Mackey said to Politico. “None of us were worrying about this.”

The administration says it is reviewing the programs.

“The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities,” the U.S. Department of Education wrote to states in its announcement June 30.

Historically, the department releases allocations by July 1 to ensure schools can budget and plan effectively for the coming school year. Withholding the money could result in canceled programs, hiring freezes and the loss of essential support for English learners, migrant children and other high-need populations, education and state officials told Stateline.

“America’s public school leaders run district budgets that are dependent on a complex partnership between federal, state, and local funding,” said David R. Schuler, executive director of the School Superintendents Association in a statement. “For decades, school districts have relied on timely confirmation of their federal allocations ahead of the July 1 start of the fiscal year — ensuring stability, allowing for responsible planning, and supporting uninterrupted educational services for students.”

The states facing the largest withheld amounts include California ($810.7 million), Texas ($660.9 million), and New York ($411.7 million), according to data from the NEA and the Learning Policy Institute, an education think tank.

For 17 states and territories, the freeze affects over 15% of their total federal K-12 allocations, according to the Learning Policy Institute. For smaller jurisdictions such as the District of Columbia and Vermont, the disruption hits even harder: More than 20% of their federal K-12 budgets remain inaccessible.

Colorado Education Commissioner Susan Córdova urged school districts to begin contingency planning in case funds are not released before the federal fiscal year ends on Sept. 30. California State Superintendent Tony Thurmond hinted at possible legal action, which has become a trend as states fight the second Trump administration’s funding revocations or delays.

“California will continue to pursue all available legal remedies to the Trump Administration’s unlawful withholding of federal funds appropriated by Congress,” Thurmond said in a statement.

The NEA and the NAACP have filed for a preliminary injunction, calling the administration’s delay an illegal “impoundment” — a violation of the federal Impoundment Control Act, which bars the executive branch from withholding appropriated funds without congressional approval.

Education advocates warn the recent decision by the Trump administration to withhold funding reflects a broader pattern of federal disengagement from public education.

Community nonprofits said the withholding could devastate their programming too. The Boys and Girls Clubs of America could have to close more than 900 centers — bringing the loss of 5,900 jobs and affecting more than 220,000 children, said President and CEO Jim Clark in a statement.

The 1974 Impoundment Control Act lets the president propose canceling funds approved by Congress. Lawmakers have 45 days to approve the request; if they don’t, it’s denied. Meanwhile, agencies can be directed not to spend the funds during that time.

A White House statement shared with States Newsroom this week said “initial findings have shown that many of these grant programs have been grossly misused to subsidize a radical leftwing agenda.”

“Kids, educators, and working families are the ones losing,” said Kusler, of the NEA. “We need governors and communities to step up — now.”

Stateline reporter Robbie Sequeira can be reached at rsequeira@stateline.org.

Stateline is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Stateline maintains editorial independence. Contact Editor Scott S. Greenberger for questions: info@stateline.org.