Federal government releases $25 million in delayed education funds to Vermont schools

The Vermont Agency of Education announced that the U.S. Department of Education will release a series of federal funding allocations to Vermont public schools after previously withholding them. These funds, totaling $25 million statewide, had already been included in school district budgets for the 2025-2026 academic year.

“The decision to release federal education dollars is a positive development for our most vulnerable students,” said Vermont Secretary of Education, Zoie Saunders. “Vermont school districts will now be equipped to begin the school year knowing they have the resources to staff critical positions and provide the meaningful and tangible opportunities that these dollars represent. Vermont schools deserve to have confidence that they will be supported with resources that have been promised.”

Earlier this month, the U.S. Department of Education notified state officials that several federal funding allocations would be withheld pending departmental review. The affected programs included those supporting effective instruction as well as summer and afterschool initiatives. There was no initial timeline provided for when or if these funds would become available.

In response, Secretary Saunders worked with the Attorney General’s Office to join a multistate lawsuit challenging the Trump Administration’s decision to withhold these funds.

Late last week, one allocation—Title IV, Part B (the Nita M. Lowey 21st Century Community Learning Centers Program)—was released for distribution to Vermont districts. With today’s announcement, all planned federal education funding streams are expected to reach local schools beginning July 28.

The funding covers several key programs:

- Title I, Part C supports instructional and support services for migrant children and their families through the Vermont Migrant Education Program operated by the University of Vermont.

- Title II, Part A provides resources for instructional coaches, mentoring programs, and professional development in subjects such as reading science—efforts aimed at improving academic outcomes and retaining educators amid ongoing teacher turnover.

- Title III, Part A delivers instructional services and supports for English language learners by offering multilingual liaisons and supplemental programming designed to help students meet state academic standards.

- Title IV, Part A is used by districts for safe and healthy school initiatives ranging from mental health services outside regular hours to trauma-informed professional development.

- Title IV, Part B enables summer and afterschool programming through community learning centers across Vermont.

The Agency stated it will follow required legal steps in determining how much each district receives under each program category. Officials emphasized their commitment to helping districts distribute these allocations promptly so schools can continue supporting vulnerable student populations during the upcoming year.