Saturday

07-19-2025 Vol 2026

Dallas Schools Face $22 Million Funding Gap Due to Federal Freeze

Dallas Independent School District (DISD) Superintendent Stephanie Elizalde announced that the district is facing a $22 million gap in funding following the Trump administration’s decision to freeze billions of dollars in education grants.

The freeze is part of a review by the federal government aimed at aligning educational grant distribution with President Donald Trump’s priorities.

Elizalde mentioned that this funding primarily supports around 150 essential staff positions within the district.

While she does not foresee an immediate crisis arising this year, the superintendent expressed concerns about the long-term implications should federal funds fail to be released.

“Right in this moment, we’re going to be OK,” Elizalde stated during a meeting with The Dallas Morning News editorial board.

“But what happens over time? What happens if more [federal] dollars don’t come that were already allocated, but aren’t being distributed? That becomes more of my issue.”

The Trump administration had announced earlier this month intentions to withhold over $6 billion designated for various educational programs, which include after-school and summer programs, English language instruction, and adult literacy initiatives.

Education officials across the country have raised alarms that without these funds, many schools will struggle to offer free or affordable after-school care to low-income students and may not be able to hire necessary staff to support English-language learners.

To mitigate the impact of this funding freeze, Superintendent Elizalde has implemented a hiring freeze on non-essential central administration positions.

“We’re not putting any restrictions on any campus-based hires,” she clarified.

“All of the central office positions have to come to me, one by one. I need to evaluate every single one of them.”

Elizalde has already rejected a request to fill an executive director position that was intended to oversee operations across the district’s more than 200 campuses, indicating that current employees will take on those responsibilities instead.

In light of the projected shortfall, which was approximately $129 million at the time the budget was approved in May, Elizalde may need to turn to the school board for additional support.

This figure does not reflect the new state funding expected for DISD from a significant school funding bill approved by Governor Greg Abbott in June.

Trustees have been progressively relying on their rainy day fund as a response to various financial pressures on public schools in recent years.

Originally, programs that depend on federal funding were anticipating these resources to be disbursed by July 1.

However, an announcement from the Education Department revealed that funding will not be made available while these programs undergo review.

The Department offered no concrete timeline for resolution and cautioned that decisions regarding grants for the upcoming school year remain pending.

Programs affected include $2 billion in grants aimed at professional development for teachers and initiatives to reduce class sizes, as well as funding for academic enrichment, services for students learning English, and adult literacy programs.

In response to the funding freeze, more than 20 states have united in a lawsuit against the Trump administration, led by California, arguing that withholding the funds violates the Constitution and multiple federal statutes.

The Office of Management and Budget has indicated that some grants support left-leaning initiatives, pointing to programs that assist immigrants living in the country illegally and those that promote LGBTQ+ inclusivity.

The Associated Press contributed to this article.

The DMN Education Lab continues to enhance coverage and foster discussions on critical education issues affecting the future of North Texas.

image source from:dallasnews

Charlotte Hayes