Department staff briefed the board on a federal review by the Office of Management and Budget (OMB) that temporarily paused distribution of certain federal funds to states. The department said the pause affects a roughly $68,000,000 portion of K–12 federal funding for Alabama and that the review was nationwide.

Staff said OMB is reviewing states’ proposed uses of federal funds and that some national reporting earlier named examples where federal officials believed funds were used in ways they did not intend. Department staff told the board they have no indication of misuse in Alabama and that the OMB review is administrative; nevertheless, the timing may affect local programs that plan to use federal funds beginning July 1.

The department told the board the funds at issue for K–12 represent a subset of broader federal holds that also involve higher‑education allocations. The department cautioned that a delay could cause some local program start‑ups or after‑school activities that depend on the federal allocations to pause or seek alternate financing until funds are released. Staff said they are working with the federal Department of Education as conduit to OMB and will report updates to the board when available.

The department characterized the issue as a statewide and national administrative review, advised districts to plan accordingly and said it expects the matter will be resolved, while acknowledging that some local program planning could be affected if money is delayed.