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Reading: Colorado could reap millions of federal grant dollars previously withheld by Trump
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Colorado could reap millions of federal grant dollars previously withheld by Trump

Last updated: July 26, 2025 12:35 am
Published: 9 months ago
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The journalist and/or newsroom have/has a deep knowledge of the topic, location or community group covered in this article.

Millions of dollars in federal funds could flow to Colorado schools after the Trump administration said Friday it would lift a funding freeze impacting grants to help educate kids with significant learning needs, and recruit and retain teachers.

That money is part of a pot of more than $5 billion in previously withheld funding the Trump administration will release weeks ahead of the new school year, a senior administration official told The Washington Post.

The federal government announced that it planned to withhold that money earlier this month, on the day school districts were expecting to receive the grants that had already been factored into their budgets. At the time, the U.S. Department of Education told state education departments that it was reviewing grant programs to make sure “taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities.”

The decision to withhold funds sent a wave of panic across school districts, forcing them to consider tough decisions about cutting staff or programs or dipping into reserves and money set aside for other priorities.

It also prompted Colorado to band together with 23 other states and Washington, D.C., in a lawsuit against the Trump administration over the frozen funds.

Colorado’s share of the withheld money was estimated at $70 million.

The Trump administration’s decision to release the funding follows a separate decision made last week to disburse about $1.3 billion in previously withheld dollars for after-school and summer programs across the country.

Boys and Girls Clubs across the state hailed the development as a win for their programs over the next several months, though federal funding uncertainty about next year’s budget continues to raise questions about how they’ll operate long term.

Millions of dollars in federal funds could flow to Colorado schools after the Trump administration said Friday it would lift a funding freeze impacting grants to help educate kids with significant learning needs, and recruit and retain teachers.

That money is part of a pot of more than $5 billion in previously withheld funding the Trump administration will release weeks ahead of the new school year, a senior administration official told The Washington Post.

The federal government announced that it planned to withhold that money earlier this month, on the day school districts were expecting to receive the grants that had already been factored into their budgets. At the time, the U.S. Department of Education told state education departments that it was reviewing grant programs to make sure “taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities.”

The decision to withhold funds sent a wave of panic across school districts, forcing them to consider tough decisions about cutting staff or programs or dipping into reserves and money set aside for other priorities.

It also prompted Colorado to band together with 23 other states and Washington, D.C., in a lawsuit against the Trump administration over the frozen funds.

Colorado’s share of the withheld money was estimated at $70 million.

The Trump administration’s decision to release the funding follows a separate decision made last week to disburse about $1.3 billion in previously withheld dollars for after-school and summer programs across the country.

Boys and Girls Clubs across the state hailed the development as a win for their programs over the next several months, though federal funding uncertainty about next year’s budget continues to raise questions about how they’ll operate long term.

In an email forwarded to The Colorado Sun by Colorado Department of Education spokesperson Jeremy Meyer, Colorado Education Commissioner Susana Córdova wrote to superintendents to share that the department had seen a news report of the funds being released but had not yet directly heard confirmation from the federal education department.

“We have not received official notice, so I cannot say that all of these funds will be released, but I am hopeful that they will be,” Córdova wrote in the email, sent out Friday. “Federal dollars provide critical support for every child in Colorado – no matter where they live – to learn, grow, and thrive. We are grateful to U.S. Secretary of Education Linda McMahon and to the many educators, district leaders, community partners, elected officials, and public education supporters who advocated for the release of these much-needed funds.”

Read more on The Colorado Sun

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