PHOENIX — Arizona schools are facing a major funding setback after the U.S. Department of Education withheld approximately $118 million that was scheduled to be distributed on July 1. The pause in funding affects nearly 12% of the state’s annual federal education support.
The withheld funds were designated to support a wide range of programs, including services for English learners, migrant education, student success initiatives, and before- and after-school programs. The timing of the pause is especially challenging for districts preparing to open their doors for the new school year.
According to the Arizona Department of Education, the funding is being temporarily delayed while the U.S. Department of Education and the Office of Management and Budget finalize grant awards and allocations to states. Until that process is complete, Arizona and other states cannot access their full federal education funding.
The situation has raised concerns among educators and policy analysts, especially as some Arizona schools begin classes in mid-July. The freeze is part of a broader national pause impacting about $6.2 billion in federal education support across multiple states.
In Arizona, where school districts often rely heavily on federal support for specialized programs, the impact could be especially severe. District leaders and education advocates have expressed concern that the pause may be connected to shifting federal priorities and could signal changes in how or whether funds will be allocated to programs traditionally serving underserved student populations.
There is currently no timeline for when the funding will be released, leaving districts in limbo as they finalize budgets and staffing for the academic year.
