U.S. Department of Education withholds millions in education funding for programs in Wisconsin

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The State of Wisconsin joined a multi-state lawsuit on Monday against the U.S. Department of Education’s decision to withhold federal funding for some education programs.

About $72 million in federal education funding has been withheld from Wisconsin programs, according to a Tuesday news release from the Wisconsin Department of Public Instruction. DPI expected to receive these funds on July 1. Wisconsin joins 23 other states and the District of Columbia in suing the Trump Administration for freezing $6 billion in federal education funding nationwide.

The U.S. Department of Education has frozen about $19.1 million in education funding for public, public charter and private schools in Milwaukee County, as well as nearly $2 million in after school programming funds for the Boys & Girls Clubs of Greater Milwaukee, according to DPI data. These funding amounts are based on 2024-2025 allocations.

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The frozen funds support after school programming for students from low-income families, education for English language learners and migrants, and more. According to DPI, the USDE notified states on June 30 that the following fiscal year 2025 funds would be withheld:

  • Title I-C funding for migrant education
  • Title II-A funding for supporting effective instruction
  • Title III-A funding for English language acquisition, language enhancement, and academic achievement
  • Title IV-A funding for student support and academic enrichment programs
  • Title IV-B funding for Nita M. Lowey 21st Century Community Learning Centers

In March 2025, President Donald Trump signed this federal funding into law after it was authorized by Congress. Wisconsin public and private schools “have already budgeted and made hiring decisions based on this expected funding,” according to DPI.

“Wisconsin schools depend on these dollars to serve kids. Make no mistake, stopping this money has already harmed and will continue to harm our families and communities,” State Superintendent Jill Underly said.

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The U.S. Department of Education notified DPI that it is reviewing funding for those five grant programs and “decisions have not yet been made concerning submissions and awards for this upcoming academic year,” according to a DPI news release.

The department remains committed to ensuring taxpayer resources are spent in accordance with the president’s priorities and the department’s statutory responsibilities,” the U.S. Department of Education said in its notice to DPI.

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