Feds Freeze $45M in NM School Funds

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Local Impact Unclear, but Stakes Are High
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GRANTS, N.M. — School leaders across New Mexico are bracing for what may become a full-scale education crisis, following the federal government’s abrupt decision to withhold nearly $45 million in education funds earmarked for the state.

On June 30—just one day before the new fiscal year—the U.S. Department of Education informed states that funding for several core programs would not be released as scheduled. This includes critical dollars for afterschool programs, teacher development, English language learners, and support for migrant students. While the full impact on local districts like Grants Cibola County Schools (GCCS) remains unknown, the state lawsuit and community- level concerns are intensifying.

The money being withheld by the executive branch has been authorized by the US Congress to be given to New Mexico’s schools.

Attorney General Raúl Torrez, who filed suit in federal court earlier this month, is leading the charge to force the release of the money. In a statement, Torrez described the freeze as 'not just illegal—it’s harmful to the people who keep our communities and economy running.'

The federal freeze affects over $6 billion in nationwide education funds, with $44.7 million slated for New Mexico. The affected programs are:

• Title I-C: $1 million for migrant education

• Title II-A: $18 million for teacher training and support

• Title III-A: $5.8 million for English learner programs

 • Title IV-A: $10.2 million for student support and enrichment

• Title IV-B: $9.8 million for 21st Century Community Learning Centers These funds are typically released on July 1 to align with state fiscal years. Under the Every Student Succeeds Act (ESSA), the allocations are based on formulas tied to district needs and demographics. According to the lawsuit, neither the U.S. Department of Education nor the Office of Management and Budget has the authority to withhold them.

Education officials say the freeze is already disrupting preparations for the 2025-2026 school year.

'Rural districts like mine are making contingency plans, but we can only go so far without the funding we’ve counted on,' said Kristie Medina, Superintendent of Raton Public Schools. Others warn that delays in afterschool programming, curriculum development, and staff retention are already materializing.

Locally, GCCS Superintendent Lane Widner has not yet received a breakdown of how much the district stands to lose. But with district proficiency rates already well below state averages—18 percent in math and 36 percent in reading according to the latest annual test results— any disruption to student services could have deep ramifications.

In a March interview with the Cibola Citizen, GCCS Director of Educator Success Dr. Delton Martin emphasized the importance of federal programs in helping close learning gaps, particularly for English learners and at-risk students. Many of these efforts are now in jeopardy.

Rep. Gabe Vasquez (DNM), whose district includes much of southern New Mexico, and almost all of Cibola County but the entirety of the Grants-Cibola County School District, estimates his region alone could lose more than $21 million.

In a letter signed by over 140 members of Congress, Vasquez and his colleagues accused the Trump administration of using the freeze to target immigrant students and inclusive educational practices.

“These funding cuts are going to have impacts that will be felt by everybody,” Vasquez said.

Albuquerque Public Schools officials echoed the urgency. Melanie Blea, who oversees federal programs for Albuquerque Public Schools, said the district has been scrambling to cover gaps with other funds but warned: 'We probably can’t do this for much longer.'

APS is a district which has been struggling with recuperating COVID-19 losses, and have since been “right-sizing” or closing schools across the district.

A spokesperson for the Office of Management and Budget defended the freeze, claiming some districts used the money to 'subsidize a radical left-wing agenda,' including support for undocumented students and diversity- focused programming. Education leaders across New Mexico say these claims are unfounded and deeply damaging.

In response to the cuts, New Mexico joined 15 other states in a lawsuit now pending in federal court.

NM Public Education Secretary Mariana Padilla submitted a declaration estimating total losses at $44.7 million for the 2025-2026 school year. Legal experts note that these funds were appropriated by Congress and are not subject to discretionary review.

While the political and legal battle escalates, New Mexico school leaders face practical decisions. Districts are now delaying hiring, canceling summer and afterschool programs, and making cuts with no clear end in sight.

Dr. Martin warned in a previous interview that 'teacher availability continues to be a pressure point' for the district. Programs funded by Title II-A and Title IV-B often support supplemental staffing, intervention programs, and extended learning time—all critical in communities where student achievement trails the rest of the state.

Whether federal courts intervene swiftly enough to salvage these programs before the fall semester remains to be seen. For now, schools across New Mexico are caught in limbo.

The Cibola Citizen will continue to follow this developing story and provide updates on any confirmed figures for the local impact to GCCS.