About $40 million in federal funds withheld from Nebraska schools

Nebraska schools are waiting to hear what will happen with roughly $40 million in funds for programs including migrant education, after school services and student support.

The federal government announced this week that almost $7 billion in national education funding is under review. States were expecting to receive that money on July 1, but instead received notice from the federal government the day before that the money would not be arriving.

Nebraska Department of Education Commissioner Brian Maher sent an email to schools across the state, saying “The timing of this message and action are disappointing.”

He further said the decision would greatly impact schools as they prepare for the upcoming school year.

Also in the message, Maher stressed that he is committed to fiscal responsibility.

“However, withholding these funds right now, as we all have already prepared for the new school year, does not lead to systematic change in the education system,” he said in the email.

A spokesperson for Omaha Public Schools, Nebraska’s largest school district, said they are closely monitoring the situation. The district received more than $7 million in federal funding in four of the impacted areas last school year — migrant education, and student support and academic enrichment programs, supporting effective instruction and English language acquisition grants.

Lincoln Public Schools, the second-largest school district in the state with 41,654 students, said in a statement that the district is waiting for further guidance from the state education department.

LPS also emphasized its own budget process.

“We have just presented our proposed budget for the 2025-26 school year and continue to gather community feedback through our online form,” the district said in the statement. “Through this long-established process, the LPS Business Affairs team and Board continues planning for a variety of scenarios and preparing strategies to navigate any fiscal volatility we face with variables outside of our control."

Grand Island Public Schools, located in central Nebraska with more than 10,000 students, wrote in a statement that officials are also waiting for more information from NDE.

“For our staff, students, families, and community, we look forward to having a strong 2025-26 school year,” GIPS said in the statement. “While there is some uncertainty in the larger conversation of a select set of federal funds, we will continue honoring our commitment of providing your children with an outstanding education and giving our staff what they need to accomplish that endeavor to the best of our abilities.”

Read the full statements from the Nebraska Department of Education and two of the school districts below:

NDE email to schools

“Dear superintendents, non-public school leaders, and ESU administrators,

On Monday, June 30, I received official communication from the U.S. Department of Education (USED) indicating that funding for several key federal formula grant programs—including Title I-C, II-A, III-A, IV-A, IV-B, and Adult Education— is still under review. As a result, USED did not issue Grant Award Notifications (GANs) on July 1, as has been customary in previous years. The timing of this message and action are disappointing, and the statewide impact for public and non-public schools is great. I write to share a few perspectives and next steps from the NDE.

First, I am deeply committed to fiscal responsibility, efficiency, and an evidence-base for interventions and use of funds and welcome a conversation on programmatic considerations with our federal delegation and the USED for future school years. However, withholding these funds right now, as we all have already prepared for the new school year does not lead to systematic change in the education system.

As you know, these funds are used to support activities like professional development, personnel for implementing academic interventions, direct student services, and ensuring adults have the academic skills themselves to support the learning of their children. Overall, the impact on Nebraska is near $40 million, and reaches every public and most non-public schools in some way. While there have been some signals these programs would be impacted in the future, the decision creates immediate uncertainty to your districts, systems, budgets, and personnel decisions – which impact student achievement. Know that the NDE has made resolving this issue a top priority, and we’re working internally and with state and federal partners to address the issue.

As I’ve said previously with other federal changes which have come our way this year, I am committed to communicating with you as soon as I have information to pass along and will continue to deal with facts. If there are questions I have not answered, please reach out to me and/or consult with your legal counsel to understand further options. I am grateful for your work as we navigate this uncertainty. Thank you for your commitment to the 360,000 public and non-public school students in our state.”

Lincoln Public Schools statement

"Lincoln Public Schools is awaiting further guidance or communication from the Nebraska Department of Education on how this news could impact our programming for the 2025-2026 school year.

We have just presented our proposed budget for the 2025-2026 school year, and continue to gather community feedback through our online form. Through this long-established process, the LPS Business Affairs team and Board continues planning for a variety of scenarios and preparing strategies to navigate any fiscal volatility we face with variables outside of our control. This allows us to minimize the disruption in providing educational services for our students while following all required state and federal education requirements - funded and unfunded."

Grand Island Public Schools statement

“Grand Island Public Schools (GIPS) remains committed to its mission of Every Student, Every Day, A Success.

At GIPS, that means we are committed to educating every student who attends one of our schools, and supporting our certified teachers and classified staff who shape and support the educational experience for our students.

We understand the growing conversation about potential withholding of certain federal funds is concerning. Our GIPS District Leadership Team and our Board of Education are monitoring the evolving conversation closely.

GIPS is awaiting further insight and guidance from the Nebraska Department of Education (NDE) on how the latest news updates could impact certain programming and resources. As we cannot confidently speak to hypothetical situations, we are moving forward with business as usual in the district.

Please know that our District Leadership Team and Board are working — as they always do — planning for support contingencies and scenarios based on need.

We are busy planning for the upcoming school year, preparing our buildings to welcome back our students and staff, and remain committed to educating all of our students and meeting state and federal standards whether funded or not.

For our staff, students, families, and community, we look forward to having a strong 2025-26 school year. While there is some uncertainty in the larger conversation of a select set of federal funds, we will continue honoring our commitment of providing your children with an outstanding education and giving our staff what they need to accomplish that endeavor to the best of our abilities.

We will share more when there is more verified information to be shared. In the meantime, we encourage you to reach out to the district or building administration if you have questions about educational opportunities available in the GIPS district.”

By way of full disclosure, Brian Maher is a commissioner on Nebraska Public Media's governing board, NETC.