NASHVILLE, Tenn. (WZTV) — After weeks of uncertainty, federal education funding in Tennessee is flowing again, but it comes with new restrictions and the looming threat of future cuts.
The U.S. Department of Education froze $6 billion in federal funds just weeks before the start of the school year, halting money designated for programs like English language acquisition and services for migrant students. The freeze left many school districts scrambling to adjust budgets and delay hiring decisions.
The Tennessee Department of Education notified districts late last month that funding for five federal Title programs (Title I-C, II-A, III-A, IV-A, IV-B grant programs), would be suspended pending a federal review. That immediately stopped the flow of money typically made available by July 1.
“It’s really a gut punch,” said Mike Stein, an ESL (English as a Second Language) teacher in Coffee County. “We really want to serve our kids.”
Stein, who has taught students who are non-native English speakers for more than a decade, said the funding pause especially impacted programs targeting English learners.
“We were told by the (school district) director who oversees those funds that everything he normally buys for us in July was off the table,” Stein said. “There was no money.”
Across Middle Tennessee, districts reacted quickly. Some paused purchasing and hiring tied to the title funding, while others dipped into their general funds to fill the gap, according to Mick Shuran, president of the Tennessee Association of Federal Program Administrators.
“It’s been a scary conversation among all of us,” Shuran said. “We’re all over the place.”
FOX 17 News reached out to every district in Middle Tennessee. The majority of those that responded said they were delaying purchases and choosing not to fill some positions, while “waiting it out.” Others said they planned to move forward cautiously, reallocating money from other pots, like the general fund, as needed.
In a statement to FOX 17 News, the federal Office of Management and Budget defended the funding pause, citing misuse of grant dollars. A spokesperson said in an email:
“There is an ongoing programmatic review of education funding. Initial findings show that many of these grant programs have been grossly abused to promote a radical leftwing DEI agenda, subsidize the Open Border Crisis, and in many cases, directly violate Presidential Executive Orders. In one case, NY public schools used English Language Acquisition funds to promote illegal immigrant advocacy organizations. In another, Washington state used funds to direct illegal immigrants towards scholarships intended for American students. In yet another, School Improvement funds were used to conduct a seminar on “queer resistance in the arts.”…Guardrails have been put in place to ensure these funds are not used in violation of Executive Orders. Other programs remain in review.”
Last Friday, the Trump administration released the $6 billion in withheld funds, but announced “guardrails” would now be in place to prevent future misuse and ensure compliance with executive orders. The Department of Education has not yet detailed what those guardrails specifically mean.
This could all be a preview of what’s ahead.
“I’m absolutely nervous about that,” said Stein.
President Trump’s proposed 2026 federal budget includes cuts to education funding, targeting some of the same programs that were recently frozen — including those supporting migrant students. At least 18 programs would be consolidated into block grants, giving states greater discretion over how to use those funds. Tennessee receives about $1.3 billion in federal education money, according to state auditors. The Trump administration has said Title 1 funding, which caters to low-income students, and grant money for students with disabilities (IDEA) would not be touched.
FOX 17 News asked both the U.S. Department of Education and the Office of Management and Budget to respond to concerns that children brought to the U.S. by undocumented parents may be penalized by these funding changes. As of this writing, neither agency has responded.
“It’s not right to punish children for things their parents did,” said Stein.
Congress will review and vote on the 2026 federal budget this fall. Until then, schools across Tennessee will continue to navigate shifting guidance and prepare for what may come next.
A joint state legislative hearing, the Federal Education Deregulation Cooperation Task Force, was also held this week, focusing on how to handle future federal education funding cuts. Lawmakers received data on the funds currently received in Tennessee.
“We are excited about the process of block-granting and how we can utilize that to better serve our students and ensure that our approach reflects Tennessee’s values, and that it matches the expectations of Tennessee parents,” testified Tennessee Commissioner of Education Lizzette Reynolds.
“I think it’s imperative and important that we look at what could happen in Tennessee because the Department of Education from the federal level is in a state of flux,” said Sen Bill Powers, R-Clarksville. “Is it going to end up 50 percent? Is it going to end up none? Who knows. So it’s incumbent on us to be ready when the edict comes down from upon high.”
However, democratic state legislators are fearing the worst and potential impacts on children.
“With President Trump’s plans to dissolve the (federal) Department of Education, this task force has been’tasked’ with trying figure out how to replace the $1.7 billion in federal dollars currently in our budget for K-12 public schools – the majority of which supports low-income students, children with disabilities and school meal programs,” said Ken Jobe, the state Democratic House Caucus Chairman.
FOX 17 News will continue to follow this story and provide updates as more information becomes available.
If you would like to contact FOX 17 News’ Kelly Avellino about any issue you feel should be looked into, email her at [email protected].
