BIRMINGHAM, Ala. – Alabama’s K-12 public schools are still waiting to learn the fate of at least $68 million in federal funding unexpectedly frozen barely a month before the start of the new school year.
District officials expected to have access to that funding on July 1, the start of the federal budget year. But an email on June 30 from the U.S. Office of Elementary and Secondary Education told Alabama officials the funds would remain unavailable pending a review. The message, reviewed by Alabama Daily News, did not explain the delay in detail and was not signed.
The pause affects multiple federal education programs – primarily those supporting teacher salaries, English language learners, professional development and afterschool and summer learning.
While state leaders are cautiously optimistic the funds will be released, districts are already scrambling to shift budgets, scale back services or dip into reserves. At least $16 million in afterschool program funding is frozen, with more at stake for community organizations across Alabama.
State Superintendent Eric Mackey said he’s hopeful the review will be resolved quickly.
“Money has already been committed to schools,” he said. “Schools have already made plans for the money,” he said. “It is directly tied, most of it, to teacher salaries, and so we certainly hope that Congress will look at that and say, ‘Yeah, we really don’t need to do that.’ We need to make sure that we fund our schools adequately.”
Federal funds make up about 10% of overall K-12 budgets in Alabama. But in high-need districts, that share can climb to 25%. For fiscal year 2025, Alabama was slated to receive more than $600 million in federal education aid.
“The Department remains committed to ensuring taxpayer resources are spent in accordance with the president’s priorities and the department’s statutory responsibilities,” the email stated.
The funds on hold were authorized by Congress under federal Titles I-C, II-A, III-A and IV-B. Each title, or section of federal law, specifies a certain activity or population of students the funds are targeting:
- Title I-C – Migrant students
- Title II-A – Effective teachers – Helps reduce class sizes by providing additional personnel such as teachers or interventionists
- Title III-A – English learner activities – Supports students learning English
- Title IV-B – 21st Century Community Learning Centers – Provides funding for afterschool and summer learning activities
While the email also listed Title IV-A funds among those frozen – totaling $22 million for Alabama – Mackey told Alabama Daily News it is not being withheld. Those funds support schools in providing enrichment activities for vulnerable students.
Many districts had already made budget commitments, hired staff and launched programs assuming the money would be available.
During a recent state board work session, Mackey said the lack of clarity is creating logistical headaches.
“It’s a bit of a back and forth because the letter came from the department of ed – the notice did — but they are referring all questions to another federal agency, Office of Management and Budget.”
“Management and Budget says, ‘We’re not saying you’re not going to get the money. We’re just reviewing the use of funds before you get them.’”
Districts already adjusting
Some local systems are already making contingency plans.
“If the money doesn’t come in for six months or four months… some of these programs might go away, or they may not do an after school program because they’re not sure if they don’t get the money,” Mackey said.
Tuscaloosa City Schools is one of those districts. Superintendent Mike Daria said while the district is stable for now, a prolonged freeze could force painful decisions.
“We’re okay for now, but obviously, like everybody else, we’re watching this carefully,” Daria said. “Because if that freeze turns into no funding moving forward, then we do go into a mode of having to shut programming down.”
The district’s nationally recognized summer and afterschool programs are funded primarily through 21st Century Community Learning Center grants – among those currently frozen. Tuscaloosa is waiting on $3.5 million in CCLC funding, but summer programs began in June based on the expectation the money would arrive.
“We’re not in panic mode yet,” Daria said, adding that if the money doesn’t come through, it will impact the coming school year’s plans.
Tuscaloosa had already reduced summer programming after a failed local property tax vote in September. In 2024, 4,200 students participated in summer learning using federal, state and local funds. This summer, that number fell to 1,800.
“Relying solely on 21st Century, state and federal money, we were at 1,800 students,” Daria said. “So a significant decrease. Still a large number of students, still the same programming, but a much smaller group of students.”
The potential elimination of 21st Century funds looms large. President Donald Trump’s proposed 2026 budget includes zero funding for the program nationwide.
“If we go into summer of ‘26, if these funds don’t come through, then that 1,800 students goes down to a much smaller number,” Daria said. “And it would only be summer learning for students where we have federal funds or where we’re obligated to (offer summer learning) through the Numeracy Act or the Literacy Act.”
Daria said the gains students make in the district’s summer learning programs make a difference for students.
“If these funds don’t come through long-term, it will drastically reduce the programming that is making an impact for our students,” he said. “It’s not our only strategy to accelerate progress, but it was a large strategy to accelerate progress, especially for our most vulnerable students.”
Still, Daria said he remains hopeful. “I remain optimistic that this will be (only) a freeze, and people will come to their senses. But if they don’t, then we will have to take a serious pause in a lot of what we’re doing.”
Tuscaloosa is not alone. Across Alabama, schools are expecting $16.3 million in CCLC funds.
While the majority of Alabama’s Congressional delegation as a whole has been quiet about the freeze, U.S. Representative Terri Sewell, D-District 5, joined 180 Democratic colleagues Thursday in signing a letter demanding the Department of Education and the Office of Management and Budget release the frozen funding.
A recent evaluation of all of Alabama 21st CCLC programs by Troy University and Auburn University’s Truman Pierce Institute showed strong results, including improved attendance and academic performance.
Delayed funds, recurring problems
This isn’t the first time Alabama schools have struggled to access already-allocated federal funds this year.
In early March, a glitch in the federal payment system delayed $9 million in reimbursements, though the funds were ultimately received. Later that month, Alabama officials were told $11 million in extended-use COVID relief funding would no longer be accessible – impacting districts like Selma City, which had planned to use $4 million for a new school.
That decision was reversed in June following a lawsuit, and Mackey said Selma officials are now working with the state department to secure access to the funds.
Meanwhile, the Alabama Community College System is also affected. Officials say they are waiting on $10 million in federal adult education funding.
Other states have reported layoffs tied to the funding freeze. Mackey said Alabama hasn’t reached that point – and he hopes to avoid it.
“There are not going to be mass layoffs or schools that don’t open,” he said. “But there may very well be some changes. There may be some afterschool programs that don’t exist, or start charging tuition instead of being free and those kind of things. But we’ll work through it.”
“It’s a long game.”
See how much money is frozen
The table below shows the amount of federal money Alabama’s school districts and charter schools expected to receive during the current fiscal year. The numbers reflect what schools indicated on their most recently submitted budget. Click here if you’re unable to see the table.