69传媒

Education Funding

Trump Spending Freeze Hits Roadblocks: How 69传媒 Are Coping With Chaos

By Mark Lieberman 鈥 January 29, 2025 6 min read
President Donald Trump speaks in Emancipation Hall after the 60th Presidential Inauguration, Monday, Jan. 20, 2025, at the U.S. Capitol in Washington.
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Confusion and panic over the prospect of an imminent halt to federal funding continued to dominate the mood in school districts Wednesday, even as the Trump administration appeared to walk back its plan for a far-reaching funding freeze less than 48 hours after announcing it.

Whether a temporary funding freeze takes effect in the near future or doesn鈥檛, school officials and their advocates and advisers are absorbing this week鈥檚 events as a sign to brace for continued disruptions to federal funding as the second Trump administration settles in.

The chaos kicked off Monday evening when the federal Office of Management and Budget told every federal agency that 鈥渁ll activities related to obligation or disbursement鈥 of federal money 鈥渕ust temporarily pause鈥 beginning 5 p.m. on Jan. 28. The order also said that agencies must begin reviewing all their grant programs to determine whether they comply with Trump鈥檚 recent executive orders, including restrictions on initiatives that promote diversity, equity, and inclusion and 鈥済ender ideology.鈥

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White House press secretary Karoline Leavitt speaks with reporters in the James Brady Press Briefing Room at the White House, Tuesday, Jan. 28, 2025, in Washington.
White House press secretary Karoline Leavitt speaks with reporters at the White House, Jan. 28, 2025, in Washington. She spoke about a pause in federal funding the Trump administration ordered this week as it reviews grants and programs to determine whether they violate executive orders cracking down on diversity, equity, and inclusion initiatives, as well as "gender ideology."
Alex Brandon/AP

That memo kicked off a dizzying 48-hour period in which school district leaders and their advisers struggled to understand scant and about which programs would be affected, when the effects would appear, and how schools would cope with unexpectedly losing federal funds for school meals, preschool programs, and more.

Just minutes before the funding freeze was set to formally take effect late Tuesday afternoon, a federal judge halted portions of the planned freeze until further consideration during a Feb. 3 hearing in response to a lawsuit from nonprofit groups.

Then, in the early afternoon on Wednesday, the Office of Management and Budget sent another memo to all federal agencies rescinding the original memo that ordered the spending pause.

But that didn鈥檛 resolve the confusion.

As many interpreted the OMB鈥檚 notice to mean the spending freeze had been called off, White House Press Secretary Karoline Leavitt that 鈥渢his is not a rescission of the federal funding freeze鈥 and that 鈥渢he President鈥檚 [executive orders] on federal funding remain in full force and effect.鈥

During an unrelated public event on Wednesday afternoon, after the OMB rescinded the original order, President Trump said his administration鈥檚 goal is to 鈥渜uickly look at the scams, dishonesty, waste, and abuse that鈥檚 taken place in our government for too long.鈥

As of late Wednesday afternoon, state attorneys general were arguing in federal court鈥攊n a separate lawsuit鈥攖hat the original OMB order for a funding freeze was still in effect, based on their understanding of the latest communications from OMB and the White House. Trump administration lawyers, meanwhile, the OMB鈥檚 rescission made the lawsuit from the attorneys general attempting to stop the spending freeze a moot point.

Districts are tentatively relieved that the funding freeze may not happen

News that the OMB had rescinded the funding freeze order came as a tentative relief to Aimee Copas, executive director of the North Dakota Council of Educational Leaders, a membership organization that includes superintendents and school finance administrators. She had spent much of the prior 48 hours taking stock of funding that appeared likely to be affected by the freeze, including for after-school programs, school districts near military bases, Native American student supports, and initiatives to improve literacy and career and technical instruction.

But that relief only lasted part of the afternoon, until an Education Week reporter showed her the White House press secretary鈥檚 tweet. Copas read it as an indication that the freeze, or the review that was set to accompany the freeze, might still come at a later date.

鈥淭he last hour-and-a-half, I was breathing a sigh of relief and feeling like the Trump administration was going to be taking a more measured approach,鈥 Copas said. 鈥淣ow I鈥檓 back to being nervous about all the things I was worrying about earlier today.鈥

Regardless of when and how the current confusion gets resolved, school administrators are likely to be on alert going forward when it comes to expecting money from the federal government, Copas said. She鈥檚 advising district leaders to be cautious when counting on federal grants moving forward.

鈥淎 lot of people are nervous, if this is the first move the new administration takes, and how it impacts public schools, what are the future moves going to look like?鈥 Copas said.

District leaders are scrambling to get concrete information about coming events

Even as the Trump administration offered clarification on Tuesday that programs like Head Start and Medicaid wouldn鈥檛 be affected by the spending freeze, technical issues arose for both programs. A small number of Head Start providers even moved to and , according to media reports.

Keeping track of the latest developments has been virtually impossible for even the most plugged-in district leaders.

A lot of people are nervous, if this is the first move the new administration takes, and how it impacts public schools, what are the future moves going to look like?

Lisa Della Vecchia, superintendent of the 2,900-student Delran school district in New Jersey, heard early Tuesday that federal funding for her district may soon come to a halt. But as of Wednesday afternoon, she hadn鈥檛 heard that the U.S. Department of Education had clarified a day earlier that some key funding streams, like Title I and IDEA, wouldn鈥檛 be affected whenever the freeze did take effect. She also hadn鈥檛 heard that the OMB had rescinded the funding freeze order.

Della Vecchia has been distracted. Even before this week鈥檚 developments, the district had already been preparing a budget for next school year that reflects possible state and federal cuts. Since President Trump took office on Jan. 20, the district has also been inundated with inquiries about rapidly evolving federal immigration policies, including Trump鈥檚 policy change that permits federal agents to make arrests on school grounds.

Roughly 25 percent of the district鈥檚 students are English learners, including a large number of students who are immigrants from Brazil. 鈥淲e鈥檙e just trying to reassure our immigrant students that they鈥檙e safe and get that information out to families,鈥 Della Vecchia said. 鈥淭hings are back and forth and changing so rapidly, it鈥檚 hard to keep up.鈥

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A student arrives for school Tuesday, Jan. 21, 2025, in the East Boston neighborhood of Boston.
A student arrives for school on Tuesday, Jan. 21, 2025, in Boston. 69传媒 are navigating new challenges after the U.S. Department of Homeland Security ended its policy discouraging immigration enforcement at sensitive locations鈥攕uch as schools.
Michael Dwyer/AP

Navigating the policy whiplash has been particularly challenging for school business administrators who are newer to the profession or their current district, said Sharie Lewis, director of business services and operations for the Parkrose school district in Oregon.

鈥淭he OMB letter was extremely broad. It leads to a lot of guessing what exactly you need to do,鈥 Lewis said. 鈥淭hat鈥檚 very dangerous in school districts when you don鈥檛 have a skilled person to understand it. You鈥檙e just relying on somebody else to give you the information.鈥

As of Wednesday afternoon, Lewis was cautiously confident her district wouldn鈥檛 be immediately affected by losing access to the funding programs the OMB said it planned to freeze. But looking ahead, she鈥檚 skeptical that the Environmental Protection Agency will approve her district鈥檚 application for a $20 million grant to pay for energy-efficient geothermal HVAC systems in four elementary schools that currently lack air conditioning. Several of the Trump administration鈥檚 first executive orders so far .

鈥淓verybody鈥檚 flying by the seat of their pants,鈥 Lewis said.

This early episode in the second Trump administration seems to foreshadow further disruption to public schools in the coming years, Copas said.

鈥淵ou can look back at the previous administration of Trump and make some assumptions. It already feels vastly different than the first four years,鈥 Copas said. 鈥淲e need to be on our toes and aware and ready to respond.鈥

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