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District says $2.6 million in new federal Title grants is being embargoed; finance director outlines contingency plan
Summary
Salt Lake City School District officials told the board July 15 that roughly $2.6 million in newly appropriated federal Title grants for 2025–26 is being held pending Department of Education review. Finance staff said the district will use existing fund balance to maintain programs this year if the funds are not released.
Salt Lake City School District financial staff told the Board of Education on July 15 that approximately $2.6 million in new federal Title grants intended for the 2025–26 school year has been embargoed by the U.S. Department of Education. Alan, a finance staff member, told the board the funds affected include Title I Part C (migrant education), Title II Part A (supporting effective instruction), Title III Part A (English language acquisition), Title IV Part A (student support and academic enrichment), Title IV Part B (21st Century Community Learning Centers) and Federal Adult Education and Family Literacy Act funds.
The district had budgeted the new awards for the 2025–26 fiscal year; Alan said funds appropriated earlier are not affected and that the embargo applies only to the new money that normally would have been released July 1. “We don't want people to panic,” Alan told the board. “My heart of hearts tell me the money will at some point be released. I can't guarantee that, but I hope that will be the case.”
Why it matters: the grants pay for staff and programs the district currently operates, including after‑school and adult‑education services, and the embargo could force a short‑term funding decision. Alan said the district plans to cover the 2025–26 program costs with general‑fund reserves if the federal money is not released, then revisit priorities during the year and through next year’s budget process if the funds are ultimately rescinded.
Board members and staff discussed next steps. Alan said he is preparing a list for the board finance committee showing each general‑fund program, its budgeted amount, and the staff it supports so the committee can prioritize if cuts become necessary. He described the board’s likely process: adjust the district’s revenue estimate, use fund balance for one year if needed, then publicly review program priorities and potential longer‑term changes.
Board reaction: Board member Amanda Longwell thanked staff for the outreach and called for public, committee‑level review of any changes. Mohammed Bade and other board members thanked staff for preparing contingency plans and for promising transparent communication with families and employees.
What’s next: staff will present the program inventory and proposed prioritization approach to the finance committee in August and update the full board as the Department of Education’s review and any related legal actions progress. The district said it will not abruptly discontinue programs mid‑year and will provide notice if long‑term changes become necessary.
