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After letters, a lawsuit, and almost a month of uncertainty for schools and organizations serving communities, on July 25, 2025, a U.S. Senator from West Virginia — who chairs the U.S. Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies (Labor-HHS) — announced that “the U.S. Department of Education will officially release the remaining anticipated education formula funding to states.”
The Washington Post broke the news, also reporting that an official in the administration they spoke with said, “that ‘guardrails’ will be in place ‘to ensure these funds will not be used in violation of executive orders or administration policy.'”
How did we get here?
In a three-sentence email sent to states on June 30, the U.S. Department of Education said it was reviewing the federal funding expected to be disbursed on July 1.
On July 10, U.S. Representative Alma Adams signed on to this letter sent to U.S. Secretary of Education Linda McMahon.
On July 14, North Carolina joined 23 other states and the District of Columbia in a lawsuit.
On July 16, 10 U.S. Senate Republicans sent this letter to the director of the U.S. Office of Management and Budget.
On July 23, U.S. Representatives Deborah Ross and Valerie Foushee sent this letter to the secretary, outlining the impact on the Wake County Public School System.
EdNC’s reporting
The department first announced on July 18 that it would release $1.3 billion of the frozen funding for the 21st Century grants, which support out-of-school programs, according to a notice sent out by the department.
The news that the remaining funds had been released brought bipartisan relief.
U.S. Senator Shelley Moore Capito (R-W.Va.), who led the effort to reach out to the U.S. Office of Management and Budget (OMB) and issued the announcement, said, “The education formula funding included in the FY2025 Continuing Resolution Act supports critical programs that so many rely on. 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. That’s why it’s important we continue to protect and support these programs. I made this clear to OMB Director Vought and was glad he followed through on my request to release all of the education formula dollars that states across the country are expecting to receive.”
Gov. Josh Stein, who met with McMahon at the National Governors Association summer meeting, thanked her for releasing the funds. He said he looks forward to working with the North Carolina native “to expand workforce opportunities and making sure our kids have what they need to thrive.”
North Carolina’s Attorney General Jeff Jackson said, “This should end weeks of uncertainty — our schools can now plan, hire, and prepare for a strong year ahead. My absolute best wishes to our state’s 1.5 million students who are ready to make this their best year yet.”
North Carolina Superintendent of Public Instruction Maurice “Mo” Green said, “It is good to see the federal government honor its commitment to our students, our educators, and our schools. I hope this resolution and the release of funds next week marks a return to the predictable, reliable federal partnership that our schools need to serve students effectively.”
School districts across North Carolina quickly updated those they serve with the news.
For the Charlotte-Mecklenburg Schools (CMS), $12.5 million was at stake.
“We are cautiously optimistic that these grant funds will continue to fund public education in the future,” the CMS School Board said in a release.
Meanwhile, Durham Public Schools opened its doors to thousands of year-round scholars on July 21.
“This funding supports essential services for our scholars, teachers, and leaders. Its absence would have jeopardized programs serving many of Durham’s most vulnerable families,” the district said in a statement.
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