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California risks losing $800 Million for low-income students under Trump freeze

Jacob Shelton July 3, 2025

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Students at Dobie Middle School pass through the hallway in between classes on Monday, April 14, 2025. The school has received three consecutive F ratings, according to state academic standards, and is likely to receive a fourth this year. A fifth would allow the state to take over the district, so to prevent that from occurring, the district will likely close the school this year.

San Diego, California – A sweeping funding freeze imposed by the Trump administration has cast uncertainty over the future of summer and after-school programs across the United States, leaving school districts, day camps, and nonprofits scrambling to salvage programming for low-income children and families. More than $6 billion in federal education grants—earmarked for after-school enrichment, English language instruction, adult literacy, and migrant education—has been put on hold as the administration undertakes a review to ensure alignment with President Trump’s political priorities.

The move has disrupted budgets and planning for the current summer and the upcoming school year. District leaders and advocates warn the freeze could unravel key services that support vulnerable students and working families, especially in rural and underserved communities. In California alone, more than $800 million is now in limbo.

The San Diego Unified School District could lose as much as $13 million in already-budgeted funds if the freeze remains in place. Though that amount represents a small fraction of the district’s total budget, school officials say it could severely impact programs serving children of farmworkers, migrant families, and English learners. The loss of funds will have a huge impact on the children of farmworkers. These services are critical for students to access their education fully.

Nationwide, programs relying on the money were expecting funds to be distributed on July 1. But a U.S. Department of Education notice issued Monday abruptly announced that all six major grant streams are under review. No timeline was provided for when—or if—the federal government will release the funds. Among the programs affected is the 21st Century Community Learning Centers initiative, the federal government’s primary source of after-school and summer learning support. That program alone serves over 10,000 local sites.

Also on the chopping block are $2 billion in grants for reducing class sizes and teacher development, $890 million for English learners, and $376 million for educating migrant children. In total, the programs under review represent a significant share of federal support for K–12 education in multiple states. In Washington, officials warn that districts that have already planned budgets and hired staff, assuming the money would arrive, now face financial distress.

The freeze has sparked political backlash. Democrats, including Senator Patty Murray and California State Superintendent Tony Thurmond, accuse the administration of illegally impounding funds appropriated by Congress. “The Administration is punishing children when states refuse to cater to Trump’s political ideology,” Thurmond said in a statement.

Meanwhile, nonprofit organizations like the Boys and Girls Clubs of America, which serve hundreds of thousands of children during the summer, face the possibility of mass closures. As many as 926 club sites could shutter, displacing more than 220,000 youth, according to the organization.

In rural districts like Umatilla, Oregon, where migrant families and English language learners comprise a sizable portion of the student population, the consequences could be dire. Superintendent Heidi Sipe says her district may be forced to cut summer school early and eliminate after-school programming if funding does not resume.

As of now, the Department of Education has offered no indication when decisions will be made. The Office of Management and Budget has not commented.

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