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Laredo ISD officials plan carryover spending after U.S. Department of Education withholds grant awards
Summary
The U.S. Department of Education told the Texas Education Agency on June 30 it would not issue award notifications for several federal K–12 grants; Laredo ISD officials say they will use carryover funds and reclassify or reassign staff temporarily while awaiting federal clarity.
LAREDO, Texas — Laredo Independent School District officials told trustees on July 24 that the U.S. Department of Education (USDE) informed the Texas Education Agency (TEA) on June 30 that it would not issue grant award notifications on July 1 for a set of federal K–12 programs, and the district is planning to use carryover funds while the federal picture remains uncertain.
Floriana Ayala, the district chief financial officer, told the board the USDE message to TEA said “the USD will not be issuing grant award notifications for certain programs on July 1,” and TEA advised districts to plan as if those grant amounts were unavailable for an undetermined period.
The announcement affects Title I (part C, migrant services), Title II (part A, supporting effective instruction, including class‑size‑reduction teachers), Title III (part A, English language acquisition and immigrant services) and Title IV (part A, student support and academic enrichment). Ayala and staff told trustees the affected programs account for roughly $3.7 million in federal allocations for the district and that 13 full‑time equivalents were identified as directly supported by Title II funding.
Why it matters
District leaders said the freeze could affect personnel and student services normally funded by those grants. Ayala told trustees the district can continue to use carryover funding already on hand and may finance costs locally with later reimbursement when TEA issues carryover notices after closeout, likely no earlier than the next spring. Trustees pressed staff for a contingency plan and quicker employee communications.
District plan and staffing options
Ayala outlined several contingency steps: maintain affected administrative staff on payroll while depleting current funding, reclassify affected personnel to Title I where possible, reassign class‑size‑reduction teachers back to classroom roles as positions become available through attrition, postpone hires to avoid creating new funded positions, and monitor possible state allotment flexibilities expected in August. She said migrant and Title IV programs have little or no personnel cost and would be supported from carryover amounts.
Ayala said TEA has indicated it will allow districts to spend carryover locally and request reimbursement later. She cautioned trustees that federal policy proposals could also change longer‑term funding structures — including consolidation proposals in a federal budget outline — and that some programs (she identified Title I part C and Title III part A) were under proposals for elimination or changes in a future federal budget proposal.
Trustee reaction and requests
Trustees repeatedly asked staff for an actionable “plan B.” Trustee Morales urged the administration to prepare a concrete, ready‑to‑implement contingency so employees and families will know what to expect if federal funds are not restored. Several trustees asked that staff notify employees immediately about funding timelines and provide periodic spreadsheets (monthly or quarterly) tracking cases, expenditures and any personnel decisions tied to grant funding.
Clarifications and numbers
Ayala reported the district would continue to use carryover funds already assigned; she identified an approximate carryover balance referenced for Title I Part C and said a small contract payment (about $20,000 as cited in the presentation) would continue to be paid from carryover. Ayala and other staff emphasized that many figures remain tentative and that the federal situation could change in the coming weeks.
No formal board action was taken on the USDE notice at the July 24 meeting; trustees directed staff to continue planning and to report back with more detailed figures and timelines.
Ending
District leaders said they will keep trustees, employees and the public updated as TEA and the USDE issue additional guidance. Ayala and others told trustees they expect more definitive information in August and will aim to notify affected employees promptly about any temporary reassignments or funding changes.
