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KTSM News – Federal court lifts freeze on education grants, restoring millions to local districts

Posted on August 1, 2025

EL PASO, Texas (KTSM) — A federal court has ordered the release of nearly $7 billion in previously frozen education grants, restoring critical funding to school districts across the country. 

The freeze, ordered by the Trump Administration in late June, temporarily blocked federal grants that had already been approved by Congress. Programs affected included bilingual education, migrant student services, and after-school support.

Canutillo ISD spokesperson Gustavo Reveles said the district had been preparing for potential cuts if the funding wasn’t restored before the start of the school year. The district was waiting on more than $2 million in federal grants to fund core student programs, officials said.

“We thought we might either have to use our savings to fund or cut,” Reveles said. “Now, we’re able to really count on that money to help us meet our goals when it comes to bilingual education, when it comes to after-school activities. These are things that our community counts on.”

The district says one of the key programs at risk was Texas ACE, which provides tutoring, meals, and a safe environment for students after school. With the funding now restored, Canutillo ISD plans to continue the program without interruption.

“Families rely on this program to make sure that if students are not only in a safe environment, but that this environment is helping them do their homework, get tutoring, and get a healthy meal,” Reveles said.

The Texas Education Agency (TEA) confirmed this week that grant notices are being sent out to districts statewide as the school year approaches.

Canutillo ISD says it will welcome students back next week with no changes to its services or programming.

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