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Uncertainty surrounds possible federal education funding shortfall

Last updated: July 29, 2025 5:03 pm
Oliver James
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3 Min Read
Uncertainty surrounds possible federal education funding shortfall
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(The Center Square) – The first meeting of the Tennessee Joint Federal Education Deregulation Cooperation Task Force ended Tuesday with a question about the state’s position should the Trump administration cut education funding.

“Should there be any lapse in funding would this state be in a position to cover the shortfall?” Chairwoman Dawn White, R-Murfreesboro, asked Alan Hampton, an analyst with the Fiscal Review Committee.

“I would have to get back with you on what those numbers would like like,” Hampton told her.

The committee was formed through a bill passed by lawmakers during this year’s legislative session to learn more about how much the state relies on federal education dollars.

The state’s federal allotment is $1.3 billion for fiscal year 2025, officials told the committee. The funding is used for a wide range of purposes, from educating students with disabilities to helping low-income students and schools.

The Trump administration said last week it is introducing a new rescissions package that will cut education funding. White House officials did not indicate what the cuts would be.

The administration has also indicated it plans to remove the federal Department of Education entirely.

Sen. Bill Powers, R-Clarksville, said it is important to look at what could happen in Tennessee with funding because the federal Education Department seems to be in a state of flux.

“So is it going to end up 50% or is it going to end up none? Powers asked. “Who knows? I think we are poised to be able to deal with it in a very positive manner.”

The Trump administration has not been shy about holding onto education dollars designated for states. It held back more than $6.8 billion in funding for a review at the beginning of the month. More than $106 million was allocated to Tennessee. The money that was supposed to be released to state education departments by July 1 included grants for afterschool programs.

“This is an ongoing programmatic review of education funding,” a spokesperson for the office told The Center Square in an email response when asked about the funding. “Initial findings show that many of these grant programs have been grossly misused to subsidize a radical leftwing agenda.”

The administration initially released the funding for afterschool programs before announcing last week that all of the money would be released.

The Tennessee task force has not scheduled its next meeting. It will submit a report to the Legislature by Dec. 31.

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