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Secretary Martin: legislature boosted education funding but OMB impoundment of federal dollars prompts multistate legal action

State Board of Education · July 17, 2025
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Summary

Associate Secretary Andrew Sharp summarized new state education funding (including $8 million for literacy and a $3 million down payment for a classroom materials program); Secretary Martin warned that OMB impounded nearly $30 million in federal Title funds, said Delaware joined a 25‑state lawsuit, and described district‑level interventions after an Appoquinimink budget shortfall.

Associate Secretary Andrew Sharp and Secretary of Education Kathleen Martin briefed the board on legislative changes and a federal funding disruption that state education leaders say will have widespread consequences.

Sharp summarized major appropriations from the recently concluded legislative session: "They put $8,000,000 into solving the literacy emergency in Delaware," he said, and noted a $3,000,000 state down payment for a direct‑to‑classroom program that leaders hope will be matched by $3,000,000 from the business community. He also highlighted increases to the opportunity fund to protect districts facing enrollment‑related losses, $250,000 to expand a cell‑phone ban pilot, statutory protection for school libraries via the Freedom to Read Act (HB119), and changes to teacher loan‑repayment policy (SB187) to convert repayments into stipends that are not taxable.

Secretary Martin then reviewed a rapidly developing federal issue: she said the White House Office of Management and Budget had impounded roughly $30 million in federal Title funds that had been appropriated by Congress and were expected to flow to districts on July 1. Martin described steps the department has taken — issuing guidance to districts, convening callers with the governor and legislative leaders, and signing a declaration for Delaware to join a 25‑state lawsuit challenging the impoundment. "We put a lot of work into trying to outline the harm that would be caused by impounding these funds," she said.

Martin also noted state actions on teacher licensure. HB97, she said, gives the Department for the first time the ability to impose financial penalties on schools that employ unlicensed teachers and to claw back state funds used to pay those teachers. Martin flagged the department’s ongoing oversight of Appoquinimink School District, where a budget error created a nearly $5 million shortfall and the state auditor has opened a special investigation; the district has contracted outside financial advisers and is implementing corrective measures.

Board members asked operational questions about the newly passed financial literacy graduation requirement and its placement in the curriculum; Secretary Martin and staff committed to provide the exact course language and implementation details to the board.