Arizona schools face funding freeze amid nationwide hold
Arizona was set to receive approximately $118 million in funding on July 1 — the date schools typically receive the bulk of their annual federal education support.
PHOENIX — Arizona school districts are scrambling after the Trump administration unexpectedly froze roughly $120 million in federal education funding that was supposed to be released July 1.
The move is part of a broader nationwide freeze, with the U.S. Department of Education holding back nearly $6.8 billion in federal education funding that had already been approved by Congress. The decision caught school leaders off guard and left thousands of schools uncertain about how they’ll pay for essential programs, staff and services.
“Very little notice, very little information, and it creates chaos and uncertainty,” said Arizona Gov. Katie Hobbs. “Money that was already appropriated, already being counted on, now all of a sudden isn’t. I think it’s a terrible way to run a government.”
Arizona was set to receive approximately $118 million in funding on July 1 — the date schools typically receive the bulk of their annual federal education support.
The frozen funds include nearly $44 million for teacher training, $25 million for academic enrichment programs, $10 million for migrant student education, and $24 million for before- and after-school care that many working parents rely on.
Josh Stein, vice president of external affairs with the Boys and Girls Clubs of the Valley, said the freeze could impact programs.
“We have six, 21st Century sites in partnership with two school districts here in the Valley,” Stein said. “If that funding goes away, those programs could potentially go away as well — impacting thousands of kids and also around 60 staff members.”
The timing is especially challenging for school districts, which must finalize their budgets by July 15. Many have already committed to teacher contracts and vendor agreements based on the expected federal dollars.
“Districts are financially liable for the contracts they’ve issued,” said Dr. Paul Tighe, executive director of Arizona School Administrators. “If there’s not enough revenue as budgeted for, they have a shortfall and they’ll have financial problems.”
The Arizona Department of Education said it is working with districts to provide guidance and trying to access the frozen funds as quickly as possible.
But with the new school year just weeks away, many districts are unsure what programs they may have to scale back or eliminate.
“Is a freeze a cut, or is a freeze a delay,” Tighe said.