Vermont will receive $25 million in withheld public education funding

Vermont Business Magazine Earlier this afternoon, the U.S. Department of Education notified the Vermont Agency of Education that a series of federal funding allocations will be made available to Vermont public schools after initially being withheld by the Department. Together with another federal funding allocation that was released earlier this week, these allocations amount to $25 million statewide in congressionally approved funding that Vermont school districts have included in their budgets for the 2025-2026 school 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.”

The U.S. Department of Education had alerted the Vermont Agency of Education earlier this month that a series of federal funding allocations, including programs that support effective instruction and summer and afterschool programming, were being withheld pending a review by the Department. Without a timeline for the review, it was initially unclear when or if these funds would be available. In response, Secretary Saunders collaborated with the Attorney General’s Office in joining a multistate lawsuit challenging the Trump Administration’s decision to withhold these funds.

Late last week, the Vermont Agency of Education received notification that one federal funding allocation, Title IV, Part B (also known as the Nita M. Lowey 21st Century Community Learning Centers Program) would be made available to Vermont school districts. Along with today’s announcement, Vermont school districts are now on track to receive a total of $25 million statewide for the following programs:

  • Title I, Part C provides instructional and support services to migrant children and their families. These funds support the Vermont Migrant Education Program, which is run by the University of Vermont, and serves children who have relocated alone or with their families in order to obtain seasonal or temporary employment in agriculture.
  • Title II, Part A supports effective instruction. Across the state, districts are using Title II funds to provide instructional coaches and mentoring programs, as well as professional development in critical subjects like the science of reading. These efforts are essential to improving academic outcomes as well as supporting the retention of effective educators at a time when teacher turnover continues to be a challenge in many districts.
  • Title III, Part A provides instructional services and supports for English language learners. These funds have been used to provide multilingual liaisons to help families integrate into the school and community, summer school and after school programming to supplement EL services and prevent learning loss, and instructional services to help these students meet the same rigorous state academic standards that all students are expected to meet.
  • Title IV, Part A promotes safe and healthy schools and is used by districts for programming that ranges from providing mental health services outside of school hours to professional development in trauma-informed practices. These efforts are critical to engaging families, reducing chronic absenteeism, and equipping teachers to better respond to student needs.
  • Title IV, Part B (21st Century Community Learning Centers Program) provides integral summer and afterschool programming, enabling students across Vermont to receive engaging, structured support to ensure that they return to school in the fall ready to learn.

Vermont public schools have made critical investments using these federal funds, and the Agency of Education is looking forward to seeing what districts accomplish in the 2025-2026 school year with the resources they need to support our most vulnerable students. These funds will be awarded beginning July 28. As always, the Agency has steps it must take under the law to determine allocations for each program for individual school districts. The Agency will support districts in distributing these allocations as quickly as possible.

Senator Bernie Sanders (I-Vermont), Ranking Member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, today issued the following statement after the Trump administration announced it would release nearly $20 million in public education funding for Vermont that it had illegally withheld, as part of nearly $5.5 billion that was held back nationwide.

A total of $26.1 million will now be available for schools in Vermont.

On June 30, just one day before states expected to receive the funds, the Education Department sent a three-line email notifying states that $6.88 billion in public education funding would be illegally withheld. This decision received strong opposition from both Democrats and Republicans in Congress — including a letter led by Sanders and Appropriations Committee Ranking Member Patty Murray (D-Wash.) alongside 32 Democratic senators, and a letter from Sen. Shelley Moore Capito (R-W.Va.) and nine Republican senators demanding the release of these funds.

Last week, the department released a portion of these funds for summer and after-school programs — $6.5 million in Vermont and $1.3 billion nationally — as a result of Sanders’ demands that the Trump administration release the funds. That funding supports nearly 100 after-school and summer programs in Vermont serving 11,000 students.

"Let's be clear: Today the administration solved a problem of its own making by finally releasing funding for our public schools that it illegally and unconstitutionally withheld," Sanders said.

"I am glad these funds will finally get to schools to offer critical services — including support for students learning English, professional development for educators, and mental health services in the classroom. We as a nation must do much, much more to support our public schools," Sanders continued. "I will continue to do everything in my power as Ranking Member to ensure the Department administers these funds in accordance with the law and without additional strings attached."

About the Vermont Agency of Education

The Agency of Education implements state and federal laws, policies, and regulations to ensure all Vermont learners have equitable access to high-quality learning opportunities. The Agency accomplishes this mission through the provision of its leadership, support, and oversight of Vermont’s public education system.

BURLINGTON, Vt., July 25 — Senator Bernie Sanders. Vermont Agency of Education education.vermont.gov.

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