Key Takeaways
- The Trump administration has announced the release of nearly $6 billion in federal education funding that had been withheld since July 1, following significant bipartisan pressure and legal challenges from states.
- The funds, totaling approximately $5.5 billion to $5 billion, will begin flowing to states next week, impacting critical programs for English language learners, teacher development, and adult education.
- A U.S. official reportedly told The Wall Street Journal that Israeli Prime Minister Benjamin Netanyahu acknowledges Israel's survival is dependent on American support, highlighting the ongoing strategic importance of the U.S.-Israel relationship.
Trump Administration Releases Withheld Education Funding
The Trump administration announced on Friday, July 25, 2025, that it will release approximately $5.5 billion in federal education funding that had been frozen since July 1. This decision comes after a month-long standoff that saw mounting bipartisan pressure from Congress and multiple lawsuits filed by Democratic-led states. The U.S. Department of Education confirmed that states can expect the funds to begin flowing next week.
The initial withholding of over $6 billion (some reports indicate up to $6.8 billion) was part of a White House review to ensure spending aligned with the administration's priorities. The Office of Management and Budget (OMB) had claimed that some programs were "grossly abused to promote a radical leftwing DEI agenda." The freeze impacted seven critical education programs, including funding for English language learners, migrant education, teacher professional development, academic enrichment, and adult education programs.
School districts nationwide faced significant disruption due to the funding freeze, with many contemplating cuts to academic programming and potential layoffs just weeks before the start of the academic year. A survey by the School Superintendents Association indicated that nearly three-quarters of superintendents would have had to cut academic programming, and half expected to lay off teachers if the funds were not restored. The release of these funds is expected to alleviate much of this financial uncertainty for schools across the country.
U.S. Support for Israel in Focus
In a separate development, a U.S. official reportedly told The Wall Street Journal that Israeli Prime Minister Benjamin Netanyahu acknowledges that Israel's continued existence is reliant on American support. This statement underscores the deep and enduring strategic partnership between the United States and Israel. While the specific quote was reported on July 26, 2025, the U.S. has historically provided significant military and financial assistance to Israel, with U.S. officials frequently reaffirming their commitment to Israel's security.
Recent discussions have also touched upon the nature of this support, with former President Donald Trump reportedly pushing Netanyahu on a Gaza ceasefire and stating that the conflict is "not America's war, it's their war." Despite these differing perspectives on direct involvement, the underlying principle of U.S. support remains a critical component of Israel's geopolitical standing.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.