For the second time since President Donald Trump took office, the Alabama State Department of Education (ALSDE) is facing a funding freeze, as federal officials announced $6.8 billion in frozen federal K-12 funds for the 2025-2026 school year.
The U.S. Department of Education announced that $6.8 billion in federal funding from grants and other programs would not be hitting state coffers. As of July 1, school systems are unable to draw down funding, placing summer programs, hiring and school planning for the coming school year in jeopardy.
"These are programs already approved and funded by Congress," said Alabama State Education Superintendent Eric Mackey. "They include programs integral to successful and supportive schools across Alabama, and districts have planned for the 2025-26 school year with an expectation that these formula-based funds would be flowing as normal. Since Congress had appropriated the money in the recent continuing resolution, we had no reason to believe otherwise."
"Alabama has about $68 million held up in this review," he added. "These are funds that Congress has authorized for the 2025-26 school year to support classrooms across the state. Much of this amount is directly tied to salaries for teachers, teacher aides, and other employees. Some of the funds are tied to affordable after-school programs."
The funds are directly tied to federal programs designed to support English learning, immigrant education and other literacy programs. While the administration says it is reviewing the programs, state leaders are scrambling to determine which programs will receive funding in the summer months and the 2025-2026 school year.
"We are hopeful that the review period will be expedited, and funds will be released quickly," Mackey stated. "However, we look forward to working expeditiously with our colleagues in Washington as we are only weeks away from the beginning of a new school year and wish to avoid any disruption in services for our students and their families."
He continued, "For our continued success, Alabama's schools need consistency, reliability, and transparency in our funding streams. Lawmakers, policymakers, and our Department work together to ensure this kind of consistency, reliability, and transparency with state funds."
This is the second time the State has been caught off guard by the administration's funding confusion.
In March, ALSDE was unable to withdraw $8.9 million in funds from the Education Department's portal and was unable to reach Education Department officials for help. According to Mackey, the portal later reopened, and they were able to draw the money.
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