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$45 Million in Federal Funds Withheld From New Mexico Schools

UNITED STATES, JUL 17 – The freeze affects after-school, summer, and mental health programs, risking closures and layoffs; 24 states claim the $7 billion hold violates federal law, impacting 1.4 million children nationwide.

  • On June 30, the U.S. Department of Education notified that nearly $7 billion in federal education funds are on pause, leaving school districts nationwide uncertain.
  • Forces behind the freeze include a legal review by the Trump administration, which claims funds must be available by July 1, and a lawsuit states withholding them is unconstitutional.
  • In New Mexico, Attorney General Raul Torrez reported $45 million in grants affecting nearly 10,000 students, 'It covers a range of programs that not only go to support our frontline educators, but some of the services that the children in our communities rely on,' he said.
  • With the new school year approaching, Robbie Fletcher warned that districts are developing plans to cut staff and programs if federal funds aren’t released, and Jeff Jackson said up to 1,000 layoffs could follow.
  • Many Boys & Girls Clubs face closure threats as Leutzinger warns 926 clubs may close in three to five weeks, risking vital youth programs.
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HARTFORD.- Connecticut Attorney General William Tong joined a coalition of 25 states to sue the federal administration for withholding $6.8 billion in federal funds for education. These funds fund six programs administered by the U.S. Department of Education, including more than $53 million for Connecticut schools. According to the report, the programs affected are summer and after-school programs, teacher training, and programs that make the sc…

·Stamford, United States
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Minnesota Reformer broke the news in on Wednesday, July 16, 2025.
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