Pallone Demands Trump Admin Release $162 Million Illegally Withheld from New Jersey Public Schools

LONG BRANCH, NJ – Congressman Frank Pallone, Jr. (NJ-06) today demanded the immediate release of $162 million in federal funding that the Trump Administration is illegally withholding from New Jersey’s public schools. In a letter sent to Trump Budget Director Russell Vought, Pallone called the move a direct attack on the state’s 1.3 million students and over 100,000 educators.

The $7 billion in federal education funding, which was appropriated by Congress and signed into law, was due to be allocated by July 1 and is legally required to be distributed. Instead, Trump’s Office of Management and Budget is unlawfully withholding the funds from K-12 schools across the United States, creating financial chaos for New Jersey’s more than 600 school districts as they plan for the 2025–2026 academic year.

“Your willful refusal to distribute these funds on July 1 and the administration’s dismantling of the Department of Education are brazen attempts to undermines the rule of law. In effect, the Trump Administration has stolen taxpayer funds from America’s students and our public education system. Unless these unlawful actions are immediately reversed, New Jersey’s schools and the families they serve will suffer,” Pallone wrote.

Pallone warned that the impact will be felt across the state – through teacher layoffs, overcrowded classrooms, and cuts to critical programs like afterschool services, STEM education, and professional development.

The $162 million in frozen funds includes:

• Support for afterschool programs through 21^st Century Community Learning Centers.
• Teacher training and recruitment through Title II-A.
• STEM and technology education through Student Support and Academic Enrichment grants.

Pallone’s letter also raises constitutional concerns, pointing out that the Trump Administration’s actions violate Article I, which gives Congress – not the Executive Branch – the power to direct federal spending.

“Instead of working with Congress to implement a strategy that strengthens and improves our public education system, your actions exacerbate ongoing, nationwide problems like overcrowded classrooms and overstretched teachers. The American people deserve full transparency as to how the federal government is spending their tax dollars, especially when it concerns the education of our nation’s children. Your failure to submit a detailed spending plan for each agency to the Appropriations Committee – as required by law – further complicates matters and raises significant concerns about accountability and governance,” New Jersey’s 6^th District Congressman wrote.

A copy of the letter is available here and below: 

Director Vought: 

I write to express my grave concern regarding your illegal withholding of $7 billion in funds from K-12 public schools across the country, including $162 million intended for New Jersey. Your willful refusal to distribute these funds on July 1 and the administration’s dismantling of the Department of Education are brazen attempts to undermine the rule of law. In effect, the Trump Administration has stolen taxpayer funds from America’s students and our public education system. Unless these unlawful actions are immediately reversed, New Jersey’s schools and the families they serve will suffer. 

As millions of school aged children complete another academic year, schools and teachers are already busy preparing for the 2025-2026 academic year. The Office of Management and Budget’s (OMB) withholding of resources is creating senseless uncertainty for New Jersey’s 600 school districts, 1.3 million students, and more than a hundred thousand educators. The illegal withholding of federal education funding will mean massive budget shortfalls for local school districts leading to teacher layoffs, increased classroom sizes, diminished services for millions of students, and higher property taxes. Public schools already face immense struggles, and your utter disregard for our children’s future will only intensify the challenges they are facing.

In New Jersey, over $162 million in Department of Education funding is being withheld from school districts across the state. This disruption will undoubtedly harm educational outcomes, particularly for vulnerable students. The continued withholding of federal funds disrupts critical services, including afterschool programs from 21^st Century Community Learning Centers, professional development for educators through Title II-A, and STEM education support through Student Support and Academic Enrichment Grants. Ultimately, these actions put further strain on America’s overburdened education workforce and deprive students of the high-quality education they deserve, while unlawfully ignoring Congressional intent. In doing so, you demonstrate the Trump Administration’s complete and total disregard for Article I of the Constitution, which clearly states that Congress, not the President, dictates federal spending.

Instead of working with Congress to implement a strategy that strengthens and improves our public education system, your actions exacerbate ongoing, nationwide problems like overcrowded classrooms and overstretched teachers. The American people deserve full transparency as to how the federal government is spending their tax dollars, especially when it concerns the education of our nation’s children. Your failure to submit a detailed spending plan for each agency to the Appropriations Committee – as required by law – further complicates matters and raises significant concerns about accountability and governance. 

Millions of Americans, including over a million students in New Jersey, are already feeling the negative impacts of your agency’s unlawful overreach. This is unacceptable, and I demand that you immediately release the $162 million in approved education funding for my state and for every local school district across the country.

Thank you for your attention to this urgent matter. I look forward to your prompt response.