States’ Education Reclamation Act of 2025

Increased State and Local Control: The bill aims to return authority over educational policy to the States, parents, and communities (Section 2).

Flexibility in Fund Usage: States can use grant money for any elementary or secondary education purpose permitted by their specific State law, including increasing teacher salaries (Section 4(e)(1)).

Direct Funding for Higher Education: States are entitled to receive grants for postsecondary education programs to be used for any purpose permitted by State law (Section 4(a)(2) and 4(e)(2)).

Protection Against Discrimination: The bill maintains that no individual shall be excluded from or denied benefits of programs funded by these grants based on disability, sex, race, color, or national origin (Section 6(a)).

Risk of Financial Penalties for States: If an audit finds that a State used funds in violation of the Act's requirements, the State must pay a penalty equal to 100 percent of the misused amount (Section 5(b)).

Withholding of Funds: The Secretary of the Treasury has the authority to withhold grant payments if a State fails to submit required audits or reports, or violates specific spending requirements (Section 5(d)).

Burden of Administrative Oversight: States are required to contract with approved auditing entities to conduct annual audits of their expenditures (Section 5(a)).