Federal funding hold risks 100 Austin ISD jobs, 'deeply valued' programs
AUSTIN (KXAN) – More than a hundred Austin Independent School District employees could lose their jobs as the White House reviews billions of dollars in federal education grants, effectively holding up the release of the funding as the summer nears an end. The district said it does not have alternative funding for these programs or the staff.
“We’re facing a significant loss in federal funding that will impact how we deliver some of the programs we deeply value,” Segura said in a note to Austin ISD families.
The U.S. Department of Education notified state education agencies nationwide on June 30 that the federal government is extending its review of five grant programs. The department was expected to release the funds the next day. In the email to the Texas Education Agency, USDE officials said “the department will not be issuing Grant Award Notifications obligating funds” until the review is complete.
“The Department remains committed to ensuring taxpayer resources are spent in accordance with the President’s priorities and the Department’s statutory responsibilities,” the email stated.
TEA officials said $667 million in federal funds are being withheld from Texas, the majority of which is awarded directly to school systems across the state. Segura told reporters last week that more than $ 9 million meant for Austin ISD is on hold.
“The funds are not going to be released. We can’t assume they will,” Segura said.
The delay impacts multiple federal formula grants and discretionary programs under the Elementary and Secondary Education Act (ESEA), including programs that support students learning English, professional development for educators, afterschool programs like Austin ISD's ACE, and migrant students whose families perform temporary and seasonal work in its agriculture and fishing industries
The Nita M. Lowey 21st Century Community Learning Centers (21st CCLC) program is one of the funding sources that the federal government said it would review in the June 30 email to state agencies. According to TEA, funding for 21st CCLC helps support the creation of afterschool programs, particularly for students who attend high-poverty and low-performing schools. Politico reported on Friday that the Trump administration's review of the program is complete, and it is expected to distribute the funding as expected.
USDE has not responded to KXAN’s questions about the grant programs under review or the 21st CCLC program.
Officials with the Texas American Federation of Teachers said even with the potential release of some of the federal funding, they remain “deeply concerned” by the withholding of the rest of the funding.
“These are vital dollars. They are also vital dollars that school districts have already budgeted for. Every day they are withheld causes further instability as we get closer to the start of the school year,” Texas AFT spokesperson Nicole Hill said in a statement to KXAN.
According to Austin ISD officials, Supt. Segura informed the staff directly impacted that the district is reviewing the implications of this funding hold and will notify them of any changes to their employment by August 1, with August 15 being their final day in their role if the district can no longer sustain the program.
Austin ISD is already facing a $19.7 million shortfall and is set to close multiple campuses as part of its consolidation plan. District officials told KXAN that other positions are available within the district, and the talent strategy team will work to determine if employees impacted can be hired into those roles.
This is a developing story.
KXAN Intern Kara Mihm also contributed to this report.