The Benton Institute for Broadband & Society has done a nice breakdown of the impact on federal funding cuts to schools…

On Monday, June 30, the U.S. Department of Education notified states that it was withholding over $6 billion in previously approved federal education grants. In the message pausing the distribution of the grants—which should have been available to states on July 1—the Department wrote, “Given the change in Administrations, the Department is reviewing the FY 2025 funding for the [Title I-C, II-A, III-A, IV-A, IV-B] grant program(s), and decisions have not yet been made concerning submissions and awards for this upcoming year.” Notably, the funding was committed in the Full-Year Continuing Appropriations and Extensions Act of 2025 (H.R.1968), which President Donald Trump signed into law on March 15, 2025.

The five paused grants provide a variety of support to states, districts, and schools, and, combined, make up at least 10 percent of federal K-12 funding for every state in the U.S. Four of the five grants—Title I-C, Title III-A, Title IV-A, and Title IV-B—were specifically highlighted in a 2023 Dear Colleague letter and the 2024 National Education Technology Plan (NETP) as potential funding sources to support digital learning for better student outcomes. Both the 2023 Dear Colleague Letter and the 2024 National Education Technology Plan came from the Department of Education’s Office of Educational Technology, which was eliminated in March 2025 as part of a federal reduction-in-force.

After weeks of widespread and bipartisan outcry, including letters from Congressional Democrats and Republicans and a 24-state lawsuit, the Administration backed down—partially. On July 18, Sen Shelley Moore Capito (R-WV), who led the Republican letter demanding the funds be released, announced that Office of Management and Budget Director Russell Vought told her one of the grants, Title IV, Part B, would be released.

The rest of the article details the grants, their goals and the impact of their loss.