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$45 Million in Federal Funds Withheld From New Mexico Schools

UNITED STATES, JUL 17 – The freeze threatens after-school and enrichment programs serving 1.4 million children nationwide, with 91 of the top 100 affected districts in Republican areas, experts say.

  • On July 1, 2024, the Department of Education withheld $45 million in federal funds from New Mexico schools affecting nearly 10,000 students.
  • This withholding is part of a nationwide freeze of nearly $7 billion in education funds, prompting New Mexico and over 20 states to file lawsuits against the administration.
  • Officials like LaOrange and McWain explained that withheld funds impact Title I-C, II-A, and III-A programs supporting teacher development, English learners, and student enrichment.
  • Five funding options were presented to the board, with costs ranging from $245,000 to $900,515 and salaries and benefits amounting to $740,302; meanwhile, McWain expressed that they are urgently working to assist the students with the greatest needs.
  • Districts now face difficult decisions relying on strained general funds, risking cuts, while political support and lawsuits seek to restore funding and ensure program viability.
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Minnesota Reformer broke the news in on Wednesday, July 16, 2025.
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