AZ Education Officials React as Federal Grants for Migrant Program Hit Pause

By Matthew Holloway |

The Arizona Department of Education (ADE) has announced new guidance for public school districts and charter schools amid the U.S. Department of Education’s (USED) recent pause on five federal grants. This suspension relates to the proposed FY26 federal budget, which seeks to eliminate these grants, impacting approximately $6 billion earmarked for educational initiatives across the country.

On Tuesday, ADE clarified that USED has yet to distribute grant award notifications for various programs, including Title I-C Migrant Education and Title IV funding. According to Arizona Attorney General Kris Mayes, this hold affects around $120 million in potential funding for Arizona schools. However, ADE reassured stakeholders that prior year’s funding remains unaffected.

Among the funds on hold is a $9.8 million grant intended to support educational opportunities for migratory children. This initiative aims to help these students meet state educational standards, as detailed in reports from USASpending.gov.

USED indicated that the review of FY 2025 funding is a response to administrative changes and hasn’t yet reached a conclusion regarding grant submissions and awards for the upcoming year. The department reaffirmed its commitment to assess taxpayer resources in line with the President’s priorities and statutory obligations.

Given the current freeze on funds, ADE stated that without new allocations from USED by July 1, it is unable to access finances for the affected programs. The department outlined steps to alleviate confusion during this period:

A) FY 2026 funding applications that lack SEA Director approval will remain on hold until federal awards are confirmed.

B) Approved FY 2026 applications will also have a programmatic hold to prevent any premature fund disbursements.

Local education agencies (LEAs) can still utilize FY 2025 funding while awaiting updates. Additionally, they’ll be able to access FY 2026 funds to compensate for incurred obligations, contingent on future grant awards from USED.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.