The Trump administration late last week walked back its threat to withhold billions of dollars in education grants. The sudden move gave local school districts like San Francisco’s a reprieve, but educators and families remain on alert as the White House continues to dismantle the Department of Education.
Clawing back this chunk of funds already approved by Congress would have cost the San Francisco Unified School District at least $7 million, according to district officials. About 5 percent of SFUSD’s $1.2 billion budget comes from the federal government, while 70 percent comes from the state and 25 percent from local revenue.
The Trump administration announced on June 30 that funds for afterschool services, migrant education, professional learning, support for English learners and immigrant students, and technology would not be disbursed. Last Friday, the department suddenly reversed course.
“These funds are intended to supplement, not replace, the core services we provide — and they are especially critical in supporting our most vulnerable and at-risk students,” SFUSD spokesperson Laura Dudnick said via email earlier this month before the cuts were rescinded. She said the district was exploring the use of reserve funds to patch gaps.
Federal grants are also a crucial source of funding for special education, which public districts like San Francisco are required to provide. There’s been no move yet to reduce those federal commitments, but the administration’s actions and unpredictability have advocates on edge.
“This administration just started, so it leaves us in a highly risky situation,” Vanessa Marrero, executive director of Parents for Public Schools of San Francisco, told The Frisc.
The funding confusion and the Trump administration’s aggression couldn’t come at a worse time. Shortly before the threat to keep the funds, SFUSD passed its 2025-26 budget with nearly $114 million in cuts. The long, tense negotiations led to layoffs of central office staff and early retirement buyouts for 378 teachers. SFUSD must still make another $59 million in cuts for the 2026-27 school year, more than four times what officials expected just a couple months ago.
In a statement Friday, California’s superintendent of public instruction Tony Thurmond said the state was “hopeful that the administration follows through on their announcement and quickly sends us these dollars.” The state’s share of the withheld grants is $937 million.
“In the meantime, school is already in session in parts of California and the Trump administration’s actions continue to negatively impact California students,” Thurmond said.
SFUSD is awaiting further guidance from the state, Dudnick told The Frisc.
DOE dismantling continues
Walking back the threat happened in stages last week. First, the Department of Education said it would release the afterschool grants under a new requirement to certify compliance with federal civil rights laws. Then on Friday, the department said its review was complete and all funds would be disbursed.
But uncertainty around federal funding remains. The U.S. Supreme Court this month allowed the White House to continue razing the Department of Education. Trump ordered the department’s closure in March and laid off nearly 1,400 workers.
Federal funding is a small slice of SFUSD’s budget, but the district is in a precarious position. It is pursuing an ambitious agenda with fewer dollars and, because of early retirements, fewer experienced teachers. In 2022, SFUSD laid out five-year plans to improve literacy and math results as well as college and career readiness for high school seniors.
A major part of the plan includes an overhaul of literacy and math curriculums, which require extra teacher training. With the early retirements, SFUSD has also promised to hire more than 230 teachers for the new school year, which starts August 18. At this week’s Board of Education meeting, teachers union president Cassondra Curiel warned that there will still be classroom shortages.
In addition to the lawsuit triggered by the June 30 announcement, which California Attorney General Rob Bonta called “blatantly illegal,” there are other challenges in play over education funds. California joined lawsuits against the administration in April for withholding more than $200 million in remaining pandemic relief funds, and in June over $200 million in school mental health grants.
In the suit over pandemic relief funds, a judge issued a preliminary injunction in May. The CDE told The Frisc on Tuesday that it drew down nearly $19 million in pandemic relief funds between March 28 and July 8. It did not clarify whether it was part of the $200 million in withheld funds.
Bonta’s office told The Frisc on Wednesday that all education-related lawsuits remain “active and ongoing.” Bonta and other attorneys general will likely continue to sue in response to more frozen funds.
In May, the Trump administration said it intended to preserve special education funding levels next fiscal year. But the administration has shown its willingness to flout rules and norms, including the separation of powers that gives Congress power over spending. (The recently signed “big beautiful bill” has other education-related changes related to vouchers, health care, and more.)
Marrero of Parents for Public Schools of San Francisco wants more assurance from SFUSD leaders that they have contingencies in place for future disruptions after what she calls a lack of communication about this month’s crisis: “We are not prepared.”