Freedom in Education: Weekly Policy Brief

July 14, 2025/

Freedom in Education: Weekly Policy Brief

Freedom in Education: Weekly Policy Brief

Issued by: The Freedom in Education Media Team 

Coverage Dates: June 30–July 11, 2025

 

DISPATCHES FROM AN EVENTFUL TWO WEEKS

? Federal Funding Freeze for Education Programs

On June 30, state education agencies received an email from the federal Department of Education (DOE) notifying them that their portion of a $7 billion national funding package — intended to cover after-school and summer programs, English learner support, and teacher training — would not be available by the expected date of July 1. As of this writing, the funding remains in limbo.

Key Notes:

  • According to The New York Times, the Department offered little explanation but stated that the funds were “under review” so that “taxpayer resources are spent in accordance with the president’s priorities.”
  • The funding was allocated for the upcoming academic year and previously approved by Donald Trump in March, promoting some teachers’ unions and advocacy groups to view the freeze as “a betrayal” to families relying on public schools and students in need of support services.
  • The decision to withhold funds falls in line with the Trump administration’s goal to vastly reduce the role of the government in education.
  • An article from Real Clear Politics relayed a statement from the Office of Management and Budget (OMB), which alleged that many of the grant programs federally supported “have been grossly misused to subsidize a radical leftwing agenda.”

How is this affecting the states?

Eastern example: Georgia

      • If programs under consideration are eventually eliminated, Georgia will lose 14.8 percent of its government funding, equating to $201 million.
      • Georgia’s stake in money towards enrichment programs is high; notably, Georgia would lose $74 million if a $2 billion grant allocation for “teachers’ professional development and efforts to reduce class sizes” is canceled.

Central: North Dakota

      • According to the Learning Policy Institute’s analysis of percentage of loss based on historical funding allocation, North Dakota risks losing 15% of its financial support.
      • Grants related to “Supportive Effective Instruction” constitute $10 million and, if canceled, could worsen North Dakota’s heightened teacher shortage.

Western: California

  • California posted a letter update on the impoundment of federal funds after its loss was revealed to be one of the highest amongst all the states at $811 million.
  • Following recent high-profile discord between the Trump administration and California’s government, the letter confirms that the state has decided to take legal action by filing suit against “unlawful” acts.

⚖️ “The One Big Beautiful Bill” and K-12 Education Provisions

President Trump recently signed “The One Big Beautiful Bill,” a piece of “mega” legislation, into law. It includes several key provisions affecting K-12 education.

Major Points:

  • 529 Plan
      • A 529 plan is “tax-advantaged” and structured to promote saving for educational costs throughout a child’s life to adulthood. 
      • According to the Journal of Accountancy, the OBBB allows for tax-exempt sections of 529s to be used for enrollment/attendance expenses at an elementary or secondary school.

National School Voucher Program

    • For the first time, a national school voucher plan has been codified. 
      • The Times writes that, specifically, only families in states that “opted in” to the plan will be eligible.
      • The initiative is structured as a tax credit. Critics argue it imposes an unprecedented burden on public schools and taxpayers.

? White House Launches AI Education Initiative

In an article posted on June 30, the White House announced that more than 60 organizations had signed “the White House’s Pledge to America’s Youth: Investing in AI Education.”

    • These organizations include Apple, Google, OpenAI, and more tech-centered companies. 
    • The Pledge aims to make AI education resources accessible to K-12 students nationwide.
    • The initiative aims to spark students’ “curiosity” about AI and to prepare the next generation for an “AI-enabled economy.”
    • This furthered President Trump’s April Executive Order entitled “Advancing Artificial Intelligence Education For American Youth,” which generally served to advance the inclusion of AI tools in American classrooms.

FROM THE DEPARTMENT OF EDUCATION (DOE)

? ESSER Funds Reinstated for K-12 Districts

According to K-12 Dive, on June 26, the U.S. Education Secretary Linda McMahon sent a letter to the states “reversing course” and confirming that federal K-12 pandemic relief funds are once again accessible to those districts with pre-approved spending extensions.

What to Know:

  • These funds are called ESSER funds, or “Elementary and Secondary School Relief.”
  • They were instituted during the pandemic to sustain programs focused on student well-being, according to the Center for American Progress.
    • CAP reported in March on the previous decision to cut off spending extensions.
      • In the same article, it listed various ways these funds have been traditionally used, and were still being spent up until the spring cancellation:
        • To retain educators
        • To provide “high-dosage” tutoring to students
        • And address chronic absenteeism, among other initiatives intended to mitigate the myriad effects of the pandemic.

RESOURCES & LINKS

? Contact Us: press@freedomined.org

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