How the 2025 Adult-Education Funding Freeze Affected Community Programs

In July 2025 the U.S. Department of Education paused distribution of roughly $716 million in Adult Education and Family Literacy Act (AEFLA) funds that should have been sent to states on July 1. AEFLA grants pay for adult basic-education courses, high-school-equivalency (GED/HiSET) classes and English-language instruction at community colleges and non-profit organizations. The sudden freeze sent shock waves through the adult-education community, forcing administrators to plan for layoffs and service reductions. A few weeks later, federal officials announced they would release the money, but only if states complied with new conditions. The story illustrates how quickly funding interruptions can reverberate through local programs.

Why were funds withheld?

A spokesperson for the Office of Management and Budget said the money was being held up as part of an “ongoing programmatic review of education funding”. Federal officials argued that some education grants were being used for activities that did not align with the president’s priorities. They cited isolated examples, such as support services for undocumented students and diversity-themed seminars, although no specific criticism of adult-education programs was offered.

Immediate impact on community programs

States expected to receive the funding on July 1 and then distribute it to local providers. Because the money did not arrive, many community colleges and non-profits had to scramble. Administrators warned that without federal support, they would have to reduce classes, lay off instructors and cut services.

In Alaska, for example, the Literacy Council of Alaska reported that more than half of its budget—about $180,000—was tied to federal adult-education grants. When the freeze was announced, the organization immediately cut services and laid off staff. Other programs across the state, including English-language and GED preparation classes, faced similar reductions. California education officials said the freeze forced counties to lay off workers and threatened after-school and adult-education programs; the state later sued the U.S. Department of Education to demand the money be released.

Effects on English-language learners

A significant portion of the withheld money—over $85 million—was earmarked for integrated English literacy and civics education grants. Without those funds, programs that teach English as a second language and prepare immigrants for the citizenship test were forced to reduce hours or close classes entirely. For adults trying to improve their English to advance at work or support their children in school, the freeze created a major barrier.

Political and legal developments

By the end of July the U.S. Department of Education announced that the withheld funds would be released—but only if states agreed to comply with new conditions and if spending aligned with federal non-discrimination laws. Several states, including California, were pursuing lawsuits arguing that the department had no authority to withhold money already appropriated by Congress. Meanwhile, community-college leaders and adult-education advocates continued to warn that programs were already cutting services and might not reopen if the release was delayed.

What this means for adult learners

For adults pursuing a GED or HiSET certificate or working to improve their English, the freeze created weeks of uncertainty and, in some cases, temporary program closures. Although the U.S. Department of Education has since released the funds, providers must now certify that spending complies with new federal conditions. Some programs will reopen immediately, while others may need time to adjust budgets and staffing. If you’re currently enrolled or planning to enroll in a free program, stay in close contact with your local provider for updates.

This episode underscores how fragile adult-education funding can be—and how important it is to advocate for these programs. Community-based adult-education not only helps individuals earn high-school credentials; it also boosts earnings, supports workforce development and strengthens families. As policy debates continue, advocates are pushing Congress to maintain and expand funding so that adults can access the education they need.