Federal Funding Freeze Hits Vermont Schools, Threatening Key Programs

Vermont’s public schools are facing an immediate crisis after the U.S. Department of Education abruptly announced it was withholding $26 million in federal grant funding, part of a wider freeze totaling over $6 billion nationwide. The decision, communicated on the evening of June 30, comes just days after the funds were slated for distribution on July 1, designed to support vital after-school, summer, and English language instruction programs.

This sudden halt in funding is set to significantly disrupt local school districts’ operations, as these federal grants are already integrated into their budgets for the upcoming 2025-26 school year. Vermont Secretary of Education Zoie Saunders expressed grave concerns, stating the move “disrupts districts’ ability to staff critical positions and provide a wide range of programming, including efforts to reduce chronic absenteeism and improve literacy outcomes.”

The withheld funds impact at least six federal grant programs, including those providing services to migrant children and their families, English language learners, teacher mentoring, professional development, and mental health services. The Vermont Agency of Education confirmed it is “actively working with districts to mitigate the impact of this decision,” offering outreach and intensive support to navigate the uncertain federal funding landscape.

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