This press release originally appeared online.
Key points:
Communities across the nation began the budget process for the 2025-2026 school year after Congress passed the FY25 Continuing Resolution on March 14, 2025. Historically, states receive these funds on July 1, enabling them to allocate resources to local districts at the start of the fiscal year.
Even though these funds were approved by Congress, the Administration froze the distribution on June 30. Since that time, AASA, The School Superintendents Association, has advocated for their release, including organizing hundreds of superintendents to meet with offices on the Hill to share information about its impact, the week of July 7.
On July 16, the Office of Management and Budget (OMB) announced that Title IV-B or 21st Century funds (afterschool funds) would be released. AASA’s Executive Director issued a statement about the billions of dollars that remain frozen.
To gather more information about the real-world effects on students across America, AASA conducted a survey with its members.
From July 11th to July 18th, AASA received responses from 628 superintendents in 43 states.
Eighty-five percent of respondents said they have existing contracts paid with federal funds that are currently being withheld, and now have to cover those costs with local dollars.
Respondents shared what will be cut to cover this forced cost shift:
- Nearly three out of four respondents said they will have to eliminate academic services for students. The programs include targeted literacy and math coaches, before and after school programming, tutoring, credit recovery, CTE and dual enrollment opportunities.
- Half of respondents reported they will have to lay off teachers and personnel. These personnel include those who work specifically with English-language learners and special education students, as well as staff who provide targeted reading and math interventions to struggling students.
- Half of respondents said they will have to reduce afterschool and extracurricular offerings for students. These programs provide STEM/STEAM opportunities, performing arts and music programs, and AP coursework.
- Four out of five respondents indicated they will be forced to reduce or eliminate professional development offerings for educators. These funds are used to build teachers’ expertise such as training in the science of reading, teaching math, and the use of AI in the classroom. They are also used to ensure new teachers have the mentors and coaching they need to be successful.
As federal funding is still being withheld, 23 percent of respondents have been forced to make tough choices about how to reallocate funding, and many districts are rapidly approaching similar inflection points.
Notably, 29 percent of districts indicated that they must have access to these funds by August 1 to avoid cutting critical programs and services for students. Twenty-one percent of districts will have to notify parents and educators about the loss of programs and services by August 15.
Without timely disbursement of funding, the risk of disruption to essential educational supports for children grows significantly.
As one superintendent who completed the survey said, “This isn’t a future problem; it’s happening now. Our budget was set with these funds in mind. Their sudden withholding has thrown us into chaos, forcing drastic measures that will negatively impact every student, classroom, and school in our district. We urgently need these funds released to prevent irreparable harm to our educational programs and ensure our students get the quality education they deserve.”