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Trump administration withholds over $6 billion for after-school, summer programs and more
In Iowa, no immediate changes are being made to current grant contracts, but if funding is not reinstated by next fiscal year, it would be ‘devastating’
By COLLIN BINKLEY, BIANCA VÁZQUEZ TONESS, SHARON LURYE and ANNIE MA - AP Education Writers
Jul. 2, 2025 4:30 pm, Updated: Jul. 3, 2025 7:38 am
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WASHINGTON (AP) — Day camp providers and schools are warning that a Trump administration funding freeze could wreck summer for low-income American families and wipe out some after-school programming next year.
The administration is withholding more than $6 billion in federal grants for after-school and summer programs, English language instruction, adult literacy and more as part of a review to ensure grants align with President Donald Trump’s priorities.
Programs that rely on the money were expecting it to be distributed July 1, but an Education Department notice issued Monday announced the money would not be released while the programs are under review. The department did not provide a timeline and warned that “decisions have not yet been made” on grants for the upcoming school year.
“The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities,” Education Department officials wrote in the notice, which was obtained by the Associated Press.
The department referred questions to the Office of Management and Budget, which did not respond to a request for comment.
Impact in Iowa
The six grant programs under review include one known as 21st Century Community Learning Centers. It’s the primary federal funding source for after-school and summer learning programs and supports more than 10,000 local programs nationwide, according to the Afterschool Alliance. Every state runs its own competition to distribute the grants, which totaled $1.3 billion this fiscal year.
Almost $8 million in 21st Century grants is being withheld from Iowa. The grants fund after-school and summer school programs that serve more than 10,000 Iowa kids, said Heidi Brown, director of Iowa Afterschool Alliance.
However, no immediate changes are being made to current 21st Century grant contracts or operations administered by the Iowa Department of Education for fiscal year 2026, which began July 1 and ends June 30, 2026, Brown said.
If the funding is not reinstated by next fiscal year, it would be "devastating for a lot of people," Brown said.
"It's critical those funds be released. The Iowa Department of Education has done a responsible job with the funds. The fact we're able to at this point continue programs is wonderful, but without that allocation that will stop."
Brown's job is to support all out-of-schooltime programs in the state. She also works directly with the Iowa Department of Education to provide technical assistance and support to programs that receive 21st Century grants administered by the Iowa Department of Education.
In an email to 21st Century grant directors Tuesday, Brown said there is "every confidence" that existing contracts will continue to be paid as planned through the state's one-year reserve of funding.
"Unless there is an unforeseen and unlikely federal action to rescind funds already allocated to Iowa — and at this time we have no reason to believe such an action is forthcoming — programs will continue uninterrupted," Brown said in her email.
21st Century grant-funded programs provide academic help for students, academic enrichment — such as a cooking club where students learn math "in a sneaky way" — and family engagement, Brown said. The programs are proven to improve student attendance and academic outcomes.
"21st Century is the only funding stream for out-of-schooltime programs in Iowa. Without that, after school access for thousands of kids goes away," Brown said.
In 2022, 70 percent of students in Iowa in 1st-12th grade participating in 21st Century Community Learning Centers during the school year had a school day attendance rate at or below 90 percent in the prior school year and demonstrated an improved attendance rate, Brown said.
In the Cedar Rapids Community School District, students in 21st Century Community Learning Centers improved in reading, math and school attendance during the 2023-24 school year. Data shows of students who attend the learning centers:
- 81 percent improved reading skills as reported on standardized tests
- 77 percent improved math skills as reported on standardized tests
- 60 percent improved school attendance.
"We've always had bipartisan support for out-of-schooltime programs for kids. I hope that will happen again," Brown said.
States and schools in limbo
The move leaves many states and schools in limbo as they budget for programs this summer and in the upcoming school year, introducing new uncertainty about when — or if — they will receive the money. It also sets the stage for a clash with Democrats, who say the administration is flouting the law by holding back money Congress appropriated.
Without the money, schools say they won't be able to provide free or affordable after-school care for low-income kids while their parents work, and they may not be able to hire staff to teach children who are learning English. Even classes or camps underway this summer could be in jeopardy.
For instance, the Boys and Girls Clubs of America depend on some of the withheld money to run camps and other summer programming for low-income students. If funding isn’t restored soon, the programming may end midseason, said Boys and Girls Club President Jim Clark.
After-school programming in the fall also could take a hit. “If these funds are blocked, the fallout will be swift and devastating,” Clark said. As many as 926 Boys and Girls Clubs could close, affecting more than 220,000 kids, the group said.
At Boys & Girls Clubs of the Corridor, which serves Cedar Rapids and Iowa City, 21st Century funding helps them offer free homework help, serve healthy meals, engage students in science, technology, engineering and math and literacy activities, and provide mentoring from trusted adults.
In the last year, the Boys & Girls Clubs of the Corridor has served 400 students through the program and seen firsthand how it improves school attendance, confidence, and academic performance, according to a news release from the organization.
“We know there are many tough decisions to make during the federal budget process. But support for afterschool and summer programs like ours has long been a bipartisan priority. Investing in kids is something everyone can get behind — no matter your political perspective ... These programs are too valuable to lose,” according to the Boys & Girls Clubs of the Corridor.
John Tursi, executive director of the Boys & Girls Clubs of the Corridor, said they expect to receive $260,000 in 21st Century grants for fiscal year 2026. That's about a quarter of the nonprofit’s annual funding that largely goes to pay staff salaries and benefits.
Tursi said he expects to receive funding for the 2025-26 academic year. “Until I hear differently, I’m going to think very good thoughts,” he said.
What the money funds
Also under review are $2 billion in grants for teachers' professional development and efforts to reduce class size; $1 billion for academic enrichment grants, often used for science and math education and accelerated learning; $890 million for students who are learning English; $376 million to educate the children of migrant workers; and $715 million to teach adults how to read.
If the funding freeze remains, children learning English and their parents would be especially affected. Some districts use the money to pay for summer programming designed for English learners, family engagement specialists who can communicate with parents and professional development training for staff. Rural districts would be hit the hardest.
“They’re trying to send a message,” said Amaya Garcia, who oversees education research at New America, a left-leaning think tank. “They don’t believe that taxpayer funding should be used for these children.”