A Timeline of Funding and Policy Shifts in the Department of Education

Recent actions by the Trump Administration and subsequent legal challenges have left the future direction of the Department of Education uncertain for staff, grant awardees, and other recipients of federal funds.

The Administration’s federal funding freeze is already reshaping how the Department operates and affecting those reliant on federal aid and other programs.

Timeline of Events (2025)

• January 20: President Trump signs the Executive Order: Reevaluating and Realigning United States Foreign Aid, which calls for a 90-day pause on almost all foreign aid programs and initiates a 90-day review period to reassess the administration’s foreign aid policy and programs.  
• January 24: The US Secretary of State issues a Memorandum ordering a pause on new foreign funding through the State Department and USAID as well as a stop-work order on existing foreign assistance awards.
• January 27: The Office of Management and Budget (OMB) issues Memorandum M-25-13: Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs, which implements an immediate freeze of federal financial assistance programs, including USAID. 
• January 28: A U.S. District Court Judge in Washington D.C. grants an administrative stay halting the Memo M-25-13 freeze.
• January 29: The OMB rescinds Memo M-25-13.
• January 31: A U.S. District Court Judge issues a temporary restraining order against the funding freeze.
• January 31: Following campaign promises to abolish the Department of Education, the Trump administration’s executive order banning federal diversity, equity, and inclusion (DEI) programs leads to dozens of Education Department employees being put on paid leave. The Education Department also announces $33 million in charter school funding.
• February 13: The Department of Education cancels over $350 million in contracts and grants to several Regional Educational Laboratories and Equity Assistance Centers.
• February 13: Federal judge Amir Ali issues a temporary restraining order aimed to lift the freeze on foreign funding. The order bars the administration from enforcing Trump’s January 20 executive order.
• February 17: The Department of Education terminates over $600 million in grants to institutions and nonprofits training education professionals in certain topics, including DEI.
• February 18: In court filings, the Trump administration states it is not disbursing funds for thousands of foreign aid contracts and grants despite Judge Ali’s February 13 order to lift the freeze. The administration says that USAID and the State Department have legal authority to halt payments that do not depend on the January 20 executive order.

The bottom line 

As changes to federal agencies and departments continue to unfold, uncertainty abounds both within US borders and around the world. Domestically, affected parties may want to seek assistance from legal counsel and accounting advisors well-versed in federal grants, contracts, and other awards.

Navigating stop-orders and other changes can be complex, but you don’t have to do it alone. Aprio’s Government Contracting and Nonprofit teams are here to guide you every step of the way. Whether you need support with claims work, termination settlements, or strategic planning, we’re ready to help.  

Connect with an Aprio team member.  

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