July 28, 2025 Update
On July 25, 2025, the Trump administration directed the U.S. Department of Education to release all remaining federal education grants that had previously been impounded, following the completion of its internal review. This decision comes amid bipartisan pressure from lawmakers and ongoing lawsuits filed by several states seeking the release of the withheld funds. The funds are set to be released beginning the week of July 28, 2025.
This announcement follows the release of previously withheld Title IV-B funds on July 21, 2025. The Trump administration stated the reinstatement of those grants would come with new requirements for states to certify compliance with certain federal civil rights laws.
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On June 30, 2025, President Donald Trump's administration announced it was withholding over $6.8 billion in federal K-12 education funding for the 2025-26 school year, including an estimated $53.6 million for Connecticut public school districts and community organizations.
The now-withheld federal funds, which were approved by Congress in March and were required by law to be distributed to state education agencies on July 1, were specifically appropriated to support educator development, multilingual learners, before- and after-school programs, academic enrichment, migrant education, adult education, and wraparound services for students.
The withheld funds amount to more than 10% of the federal funding Connecticut receives annually for K-12 education, and all but seven of the state's public school districts are projected to experience a loss of funding as a result. Connecticut's highest-need school districts are projected to see the greatest losses with Bridgeport, Hartford, New Haven, and Waterbury each estimated to experience losses ranging from $2.7 million (Hartford) to $3.8 million (Bridgeport).
This policy briefing provides an overview of the funding streams impacted by the administration’s withholding of funds and includes estimates for how much federal funding is being withheld from Connecticut, its school districts, and various community organizations and programs.
Citation
School and State Finance Project. (2025). Impact to Connecticut of Trump Administration's Withholding of Federal Education Funding. Southington, CT: Author. Retrieved from https://files.schoolstatefinance.org/hubfs/Reports/Impact%20of%20Trump%20Administration's%20Withholding%20of%20Federal%20Education%20Funding.pdf.