Education Week’s analysis of federal spending data revealed that the Department of Education left more than $75 million in unspent appropriated funds at the end of fiscal 2025, representing the largest such amount in at least a decade. The department examined spending patterns across eight separate accounts with expiring funding, finding that this single year’s unobligated amount exceeded the total unspent funds from those same accounts over the entire preceding decade by more than seven times.
The unspent funds affected multiple departmental functions, including $21 million in staff salaries and office expenses, $14.2 million for the office for civil rights, $20 million for mental health grants, $12 million for education research, and smaller amounts in other accounts. Experts attributed the pattern to organizational changes within the department, including staff reductions, slower implementation of mandated initiatives, and cancellation of previously awarded grants. A spokesperson for the Education Department stated that maintaining unobligated funds is not uncommon and that the agency remains committed to utilizing appropriated resources effectively.
Current fiscal year spending patterns indicate the trend may continue. With three months remaining in the fiscal year, the civil rights office still had half its budget unspent, compared to roughly one-third in prior years at the same point. The Institute of Education Sciences had over $223 million in funds set to expire later this year, significantly exceeding amounts typically unspent at comparable points in previous years. Federal law requires agencies to spend their full congressional appropriations within prescribed timelines, and the administration must obtain congressional approval to rescind funds, which was not requested for any Education Department dollars.
Observers noted substantial differences in spending approach compared to prior administrations. The White House Office of Management and Budget has withheld fiscal 2026 appropriations for more than 20 competitive grant programs and delayed apportionments for additional education grants by four months beyond historical practice. The unspent funds have prompted concerns among education advocates and researchers about the stability of federal research funding and potential downstream effects on grant programs. House Republicans cited the large carryover of unspent fiscal 2025 funds when advancing budget cuts for the Institute of Education Sciences in their fiscal 2027 proposal.
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