$7B in federal education funding was put on hold the day before the start of the state and local government fiscal year in Maryland, with next-day deposits frozen. State officials say early estimates show $125M impact statewide.
A hold has been put on federal funding that was intended to be delivered to schools last Tuesday. Recipients of grant funding received notification of the hold the day before transfers were intended to land in bank accounts. The funding that has been withheld to date will impact after-school programs, English-language classes, and adult education among other programs.
The impacted funds were already committed but had yet to be transferred and the release of the money is pending a review by the US Office of Budget and Management. It was not made clear if and when those funds would be released or the criteria for review.
Of the $7B that has been stalled, the Maryland State Department of Education (MSDE), in an interview with the Baltimore Banner, estimates the action will tie up $125M statewide. Another estimate from the Learning Policy Institute, shows $98.6M across five programs:
- Migrant Education – supports migratory children transitioning into school and through graduation
- Supporting Effective Instruction – supports improving the quality of educators
- English Language Acquisition – supports students learning English
- Student Support and Academic Enrichment Program – supports improving student academic achievement
- Nita M. Lowey 21st Century Community Learning Centers – supports educational services during non-school hours, primarily in under served and low-performing schools
The cut, as it stands, reflects a potential 13 percent reduction in federal funding to schools in Maryland. It is unclear whether the loss of these funds could have an impact on progress and outcomes related to the Blueprint for Maryland’s Future – the visionary, statewide education reform plan.
A recent NPR article highlighted that the largest chunk of funds on hold is for professional development for teachers, particularly in high-need communities. From the report:
The largest pot of grant money under review consists of roughly $2.2 billion for professional development for educators. Thomas says districts often use these funds to help pay for continued teacher training: “At the end of the day, it’s really just funding that makes teachers better at their jobs.”
This week leadership at the MSDE will be meeting with school superintendents statewide to discuss the impacts and what it means for each jurisdiction. In the recent General Assembly session, teacher recruitment, retention, and professional development was a significant focus. The number of conditionally certified teachers was a major talking point and a target of new investments to get them fully certified faster. Currently it is not clear how reliant the school systems’ professional development budgets are on those federal dollars in FY26.
