Vermont’s public schools are bracing for a wave of disruption and tough choices after the U.S. Department of Education announced this week that it is withholding $26 million in federal grant funding. The freeze is part of a broader nationwide halt on more than $6 billion earmarked for essential programs like after-school support, summer learning, and services for English language learners.
A Last-Minute Shock for Schools
The money, approved by Congress and scheduled for release on July 1, was supposed to flow directly into local district budgets for the 2025-26 school year. But state officials were notified only on June 30, leaving school leaders no time to plan for the sudden gap.
In a statement, Vermont Secretary of Education Zoie Saunders said the abrupt decision “disrupts districts’ ability to staff critical positions and provide a wide range of programming, including efforts to reduce chronic absenteeism and improve literacy outcomes.”
Which Programs Are Affected?
The funding freeze impacts six major federal grant programs, each one playing a unique role in Vermont’s schools:
- Migrant Education Program: Run by the University of Vermont, this program supports children who move for seasonal or temporary farm work — some of the state’s most vulnerable students.
- English Language Learner Support: Many schools rely on federal money to hire multilingual liaisons, run summer school and after-school English classes, and help families integrate into local communities.
- Teacher Training and Mentoring: These grants help pay for professional development and mentoring programs that are key to retaining good teachers and improving student outcomes.
- Mental Health Initiatives: Funding for mental health services is another critical piece, directly linked to reducing chronic absenteeism — a growing challenge for many Vermont schools.
Local Schools Left Scrambling
Because these federal funds were already factored into local school budgets, districts now have to figure out what to cut — and quickly. Some may postpone hiring, put teacher training on hold, or shrink after-school and summer programs that help kids stay engaged and on track.
In its statement, the Vermont Agency of Education said the funding freeze “contributes to a culture of uncertainty that takes away from the important work our schools need to focus on to support our students.”
No Timeline, Many Questions
The U.S. Department of Education has said it’s conducting a review of how the grant money is used but offered no timeline for when that review will wrap up — or when, or if, the money will be released.
The agency’s only public comment so far has pointed to concerns that some programs nationwide may have used federal dollars in ways that don’t align with the Trump administration’s priorities — similar to reasons cited in other states like Louisiana, where millions in funding are also on hold.
Vermont Pledges Support, But Challenges Remain
For now, the Vermont Agency of Education says it’s working directly with districts to “mitigate the impact of this decision by conducting outreach and providing one-on-one intensive support.” But the reality is that some cuts will be hard to avoid if the freeze drags on.
State officials said they stand behind how Vermont schools have used these federal grants so far — from boosting literacy to helping migrant families and supporting mental health — and they’re urging school leaders to stay focused on students despite the uncertainty.
What’s Next?
No one knows exactly how long the funding pause will last or whether it will become permanent. School leaders, meanwhile, are left to pick up the pieces and find stop-gap ways to keep programs running — or prepare for painful cutbacks that will be felt in classrooms, after-school centers, and communities statewide.
Disclaimer: This information is based on statements from Vermont’s Agency of Education and other public sources. For updates, parents and educators should check with their local districts or the Vermont Agency of Education.
