By Matthew Holloway |

The Arizona Department of Education (ADE) has issued guidance to public school districts and charter schools following a pause and review of five grants by the U.S. Department of Education (USED) pursuant to the proposed FY26 federal budget which eliminates them entirely. The action from USED has placed $6 billion in previously approved federal education grants to schools on hold.

ADE stated Tuesday that the USED has not issued grant award notifications for Title I-C Migrant (Migrant Ed), Title II (ESEA Consolidated), Title III, Title IV, Part A (ESEA Consolidated), Title IV, Part B (21st Century), and Adult Education Basic Grants for fiscal year (FY) 2026. Per Arizona Attorney General Kris Mayes, the hold impacts approximately $120 million in funds earmarked for Arizona schools. However, ADE said in a statement, “This does not affect any prior year’s funding that districts or charters may have available to use.”

As reported by USASpending.gov, one of the grants for $9.8 million was designated “to assist States in ensuring that migratory children have the opportunity to meet the same challenging State content and performance standards that all children are expected to meet.”

The USED told state officials in a message reported by NPR, “Given the change in Administrations, the Department is reviewing the FY 2025 funding for the [Title I-C, II-A, III-A, IV-A, IV-B] grant program(s), and decisions have not yet been made concerning submissions and awards for this upcoming year.”

The USED told the outlet that it “remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities.”

Without USED obligating funds for these programs on July 1 before completing a review of federal awards, the ADE cannot access federal monies earmarked for the affected programs.

According to a release from ADE:

“ADE will be taking steps to minimize confusion for interfacing with the affected programs in grants management for FY 2026 funding applications:

A) FY 2026 funding applications that have not been SEA Director approved will not be approved until a federal award has been provided by USED

B) FY 2026 funding applications that have already been SEA Director approved will have a programmatic hold placed to ensure that potential reimbursements from the affected programs are not drawn down

No adjustments will be made to FY 2025 funding applications, and Local education agencies (LEAs) may continue to use funds for the affected programs in the respective funding applications.

LEAs will be able to use FY 2026 funds to reimburse themselves for valid obligations made on or after the later of the following dates, contingent upon future grant awards from USED:

• The date the SEA may begin obligating funds (i.e., July 1, 2025), or
• The date the LEA submits its application to the SEA in substantially approvable form. (34 CFR §76.708(a))”

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.