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New study: Alabama among the states hit with federal funding freezes

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The Trump administration has cut or frozen up to $177 billion in federal grants since the president took office for his second term, according to a tracking tool released Wednesday by a pro-democracy nonprofit and a group of researchers and scientists. Last summer, frozen funding for schools in Alabama generated headlines.

Alabama school districts were impacted after nearly $7 billion dollars in education grants were frozen back in July of 2025. Published reports say Alabama’s share of those frozen funds was almost $70 million. The action by Washington was considered a significant financial setback just before the start of the 2025 school year. The lost dollars left school districts, including Tuscaloosa, struggling to fund vital services. The money was released two weeks later.

The current list of cuts affected all 50 states and the District of Columbia, with health, nutrition, the environment and disaster relief making up the largest share of cuts, the States United Democracy Center and Grant Witness organization found.
Among the grants that were eliminated, frozen or delayed were ones related to maternal health in Michigan, education research in Mississippi and assistance to minority farmers in Iowa, the researchers found. California, Texas, New York, Illinois and North Carolina saw the highest amounts of interrupted grant money. The tracking tool is called Lost Funds.

“By bringing thousands of funding disruptions from the Trump administration together in a publicly accessible, verified database, Lost Funds puts the magnitude of their impact on full display,” Scott Delaney, co-founder of Grant Witness, said in a statement.

The $177 billion finding represents nearly 10% of federal discretionary spending, the groups said.

The tracker’s organizers said the disrupted grants were beyond the kind of cuts that typically happen when administrations change.

“Lost Funds shows the extraordinary scale and real human impact of these disruptions, and how states are once again on the front lines protecting their residents,” said Kelly Rader, States United Democracy Center’s research director.

In some cases, courts have ruled against the administration’s grant funding cuts.

The new tool, which is being made available for public use, relies on data from USASpending.gov, an open data source of federal spending information, according to the groups’ methodology. They said the tracker would be updated regularly as the administration takes new action and lawsuits move through the courts.

States United bills itself as a nonpartisan group dedicated to the rule of law and free, fair, secure elections. It was co-founded by Norm Eisen, an attorney who has been involved in prominent lawsuits against the Trump administration, including over the Kennedy Center. Eisen left the States United center in 2024.

Grant Witness is a group of scientists, researchers and attorneys who document how funding is changing under President Donald Trump's administration.

A message seeking comment on the analysis was sent to the White House.

Pat Duggins is news director for Alabama Public Radio.
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