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Facing Growing Outrage and Legal Action, Trump Admin Frees Chunk of Withheld Education Funds
"He's still illegally withholding $5.5 billion more from schools," said Sen. Bernie Sanders. "Congress passed it. The president signed it. Trump must release it."
Jul 18, 2025
Following widespread backlash and threats of legal action, the administration of U.S. President Donald Trump announced Friday that it will free up part of the $6.8 billion worth of education funding the president has withheld from states.
Earlier this week, 24 states sued the administration after it announced it would refuse to send the money—which had already been appropriated by Congress—to states just weeks before the start of the school year, citing "ongoing programmatic review" to ensure that none of it is used to fund diversity, equity, and inclusion (DEI) initiatives.
According to The New York Times:
The withheld money includes about 14% of all federal funding for elementary and secondary education across the country. It helps pay for free or low-cost after-school programs that give students a place to go while their parents work. It also covers training to improve the effectiveness of teachers and help for children learning English.
These programs provide a critical source of childcare that allow low-income families to work. Without them, organizations like the YMCA and the Boys and Girls Club of America have said they'd need to scale back their offerings.
A report issued last week by New America noted the disproportionate impact the cuts would have on low-income students:
Students from low-income backgrounds are especially at risk of losing education resources. Districts serving high-poverty student populations (those where over 25% of children live in poverty) will lose over five times as much funding per pupil as low-poverty school districts (those where fewer than 10% of children live in poverty). The 100 school districts facing the biggest cuts on a per-pupil basis have an average child poverty rate of 24.4%, much higher than the national average of 15.3%.
The administration held up the funding for weeks, causing a building panic among educators and families. A group of 10 Republican senators even sent a letter on Wednesday urging a top Trump official to let the money flow to their states.
Then, on Friday, the administration announced that it would allow $1.4 billion worth of funding to be released to states beginning Monday, though they would still reserve the right to choke it off once again should any of it be used to violate the president's executive orders.
The administration said it will continue to withhold the remaining $5.5 billion and provided no timeline for when it might be released.
According to Education Week, schools around the country had been "banking" on that money for teacher training, English-learner services, migrant and adult education programs, and academic enrichment being delivered on its expected due date of July 1.
David Schuler, executive director of AASA, an association of school superintendents, said that while he was happy to see some of the money released, withholding the rest was still putting severe strain on schools.
"Districts should not be in this impossible position where the administration is denying funds that had already been appropriated to our public schools, by Congress," Schuler said in a statement. "The remaining funds must be released immediately—America's children are counting on it."
Senate Appropriations Committee Vice Chair Patty Murray (D-Wash.) announced Friday that she would block the fast-tracking of a Trump appointee for the Department of Education until Trump releases all the funds.
"Just weeks out from the new school year, families, teachers, and school districts are suffering the consequences of President Trump's needless and illegal blockade of this funding," Murray said. "This administration won't so much as explain why the money is held up or when we can expect it to go out."
Sen. Bernie Sanders (I-Vt.), who joined Murray's efforts, welcomed the news that some of the funding had been unfrozen.
"Today we forced Trump to release $1.3 billion for more than 10,000 summer and after-school programs helping 1.4 million students," he said.
But, Sanders added, "it's not enough. He's still illegally withholding $5.5 billion more from schools. Congress passed it. The president signed it. Trump must release it."
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Critics Doubt CBS Claim That Finances—Not Politics—Are Behind 'Late Show' Cancellation
The network announced the cancellation three days after host Stephen Colbert lambasted its parent company for a $16 million legal settlement with President Donald Trump.
Jul 18, 2025
U.S. Sen. Elizabeth Warren was among those calling into question the official story behind CBS' cancellation of "The Late Show with Stephen Colbert" on Thursday—suggesting that the decision to end the show's 32-year run wasn't driven by finances but by "political reasons."
The announcement from CBS executives came just three days after Colbert spoke out on his show about a recent $16 million settlement reached by CBS parent company Paramount over an interview that "60 Minutes" aired with former Vice President Kamala Harris ahead of the 2024 election, in which Harris ran against President Donald Trump.
Colbert had told his audience that the settlement appeared to be a "big fat bribe" to end a "nuisance lawsuit."
"This all comes as Paramount's owners are trying to the get the Trump administration to approve the sale of our network to a new owner," said Colbert, referring to a pending $8.4 billion merger with the entertainment company Skydance—whose billionaire founder, David Ellison, has been spotted with Trump in recent months.
Warren (D-Mass.) said Thursday that the public "deserves to know if [Colbert's] show was canceled for political reasons."
Trump's lawsuit against Paramount claimed the Harris interview was deceptively edited and amounted to "partisan and unlawful acts of election and voter interference," allegations that legal experts and First Amendment scholars denounced as "ridiculous" and "dangerous."
After the settlement was announced earlier this month, with Paramount pledging to release transcripts of future "60 Minutes" interviews with presidential candidates, one press freedom group condemned the company for "capitulating" to the president's demands.
CBS executives appeared to preemptively respond to expected allegations that they were canceling Colbert's show due to his criticism of the settlement—and his frequent rebukes of the president—saying the decision, effective in May 2026, was "purely a financial" one.
"It is not related in any way to the show's performance, content, or other matters happening at Paramount," they said.
Sen. Bernie Sanders (I-Vt.) expressed doubt that the end of Colbert's show, days after he spoke out against his parent company's legal decision, was "a coincidence."
Media critics joined lawmakers including Sanders and Warren in expressing skepticism.
"'The Late Show' isn't dying because people stopped watching late-night TV," wrote Parker Molloy at The New Republic. "It's being murdered because Stephen Colbert spent the last decade being one of Trump's most persistent critics on network television, and the billionaires about to take over CBS need Trump's approval for their merger."
Anonymous "Late Show" staffers also told The Independent they believed the cancellation of the show was "part and parcel of the Trump shakedown settlement."
Political scientist Norman Ornstein called the impending end of "The Late Show," considering the surrounding circumstances, "a terrible sign for democracy."
"There's only one reason to do this, and we know what it is," said Ornstein. "The same reason that this disgraceful excuse for a network succumbed to blackmail from Trump over the '60 Minutes' interview."
Trump, whose Federal Communications Commission is still deciding on approval of the merger, weighed in on Friday regarding the show's cancellation, saying in a social media post, "I absolutely love that Colbert got fired," and criticizing other late-night comedians who have taken aim at him.
As Status News reported after the Paramount settlement was announced, speculation has increased that comedian Jon Stewart, who co-hosts "The Daily Show"—where Colbert spent several years—could also "soon be silenced" after publicly criticizing the settlement. That show airs on Comedy Central, which is owned by the CBS parent company.
"Inside 'The Daily Show,' I'm told staffers have taken pride that Stewart showed once again he is willing to stand up to powerful interests, even if it potentially risks his future employment," wrote Oliver Darcy. "And while they may not yet know it, inside certain power circles, there is an open question: How much longer will Stewart have this platform?"
MSNBC anchor Chris Hayes said Friday that it is not "an overstatement to say that the test of a free society is whether or not comedians can make fun of the country's leader on TV without repurcussions."
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Sanders Proposes 'Pensions for All' as Trump Aims to Open 401(k)s to Private Equity Vultures
"We can no longer tolerate a rigged retirement system that allows the CEOs of large corporations to receive massive golden parachutes for themselves, while denying workers a pension after a lifetime of work," said Sen. Bernie Sanders.
Jul 17, 2025
U.S. Sen. Bernie Sanders introduced legislation Thursday aimed at addressing the nation's retirement security crisis as President Donald Trump reportedly prepared an executive order that would give private equity vultures easier access to the 401(k) plans that have overtaken traditional pensions.
Sanders' (I-Vt.) Pensions for All Act would require big corporations to either provide their workers with a pension plan that is at least as generous as the one enjoyed by members of Congress or "pay into the federal retirement system at a level that ensures all of their workers receive the same amount of retirement benefits" as lawmakers.
The senator characterized the new bill as a supplement to his proposal to expand Social Security benefits.
"We can no longer tolerate a rigged retirement system that allows the CEOs of large corporations to receive massive golden parachutes for themselves, while denying workers a pension after a lifetime of work," Sanders said in a statement. "If we are serious about addressing the retirement crisis in America, corporations must be required to offer all of their workers a traditional pension plan that guarantees a monthly income in retirement."
"And if corporations refuse to offer a decent retirement plan, their workers must be allowed to receive the same type of pension that every member of Congress receives," the senator added. "If we can guarantee a defined-benefit pension plan for members of Congress, we can and we must provide that same level of retirement security to every worker in America."
"Every member of Congress has a guaranteed pension—for life. If it's good enough for them, it's good enough for the people who build this country."
Sanders introduced his bill after The Wall Street Journal reported that Trump is expected to sign an executive order in the coming days "designed to help make private-market investments more available to U.S. retirement plans"—a move that one critic called "a dangerous scheme to fleece savers."
"The retirement system is supposed to serve workers, not Wall Street," wrote Oscar Valdés Viera, a policy analyst with the advocacy group Americans for Financial Reform. "We need policies that strengthen retirement security and allow people to retire with dignity—not policies that invite hidden fees, reduced transparency, and elevated risk. Allowing predatory private equity and private credit funds to infiltrate 401(k)s would result in a massive transfer of wealth from small investors and workers to the richest men on Wall Street."
Supporters of Sanders' legislation similarly argued for retirement system reforms that benefit workers, not Wall Street and corporate executives.
Shawn Fain, president of the United Auto Workers—which has pushed the so-called Big Three automakers to restore traditional pension plans—said Thursday that "the billionaire class gutted pensions in pursuit of profit, and Washington let it happen."
"CEOs walk away with golden parachutes while working people walk into retirement with nothing," said Fain. "Meanwhile, every member of Congress has a guaranteed pension—for life. If it's good enough for them, it's good enough for the people who build this country. The retirement crisis is real, and it's time for Congress to act."
In a summary of the new legislation, Sanders' office observed that just 9% of private-sector workers in the U.S. currently have access to traditional defined-benefit pension plans—down from 44% in 1975.
"The results for workers have been tragic," Sanders' team continued, noting that "in our country today, nearly half of older workers between the ages of 55 and 64 have no savings at all and no idea how they will be able to retire with any shred of dignity or respect."
"If Congress can provide over $1 trillion in tax breaks for the top 1% and over $900 billion in tax breaks for large corporations," Sanders said Thursday, "please do not tell me that we cannot afford to make sure that every worker in America can retire with the dignity and the respect they deserve."
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