Delay of $72M will harm local school districts, students
MADISON — Today, the state of Wisconsin joined a multi-state lawsuit challenging the decision by the United States Department of Education (USDE) to withhold approximately $72 million of funding for certain federal education programs and requesting an injunction directing USDE to release the funds as soon as possible.
“Wisconsin schools depend on these dollars to serve kids. Make no mistake, stopping this money has already harmed and will continue to harm our families and communities,” said Dr. Jill Underly, State Superintendent of Public Instruction.
On Monday, June 30th, one day before the DPI expected to receive these funds for the upcoming school year, the USDE notified all states that it would be withholding the following federal fiscal year 2025 funds:
- Migrant Education (Title I-C)
- Supporting Effective Instruction (Title II-A)
- English Language Acquisition, Language Enhancement, and Academic Achievement: (Title III-A)
- Student Support and Academic Enrichment Programs (Title IV-A)
- Nita M. Lowey 21st Century Community Learning Centers (Title IV-B).
This federal funding was already authorized by an act of Congress signed into law by President Trump in March 2025. Public and private schools, along with the DPI, have already budgeted and made hiring decisions based on this expected funding.
The USDE gave no specific reason or explanation as to why the funds are not being released, instead stating the USDE has not yet made the decisions necessary to award these funds, saying:
“Given the change in Administrations, the Department is reviewing the FY 2025 funding for the [Title I-C, II-A, III-A, IV-A, IV-B] grant program(s), and decisions have not yet been made concerning submissions and awards for this upcoming academic year. 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.”
(from USDE Communication 6-30-2025.)
In addition to joining a multi-state lawsuit, the DPI contacted each of Wisconsin’s federal lawmakers to advocate for the immediate release of the funding. The DPI reiterated that the funds have already been approved by Congress and described the impact the loss of funding will have on Wisconsin’s ability to support our learners.
DPI leaders are evaluating real and potential impacts, including staffing and service levels.
More information and maps of the local impact of federal funding can be found on the DPI web page.
