Some education grants in limbo were used for ‘leftwing agenda,’ Trump administration says

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By BIANCA VÁZQUEZ TONESS, Associated Press

The Trump administration has accused states and schools of using federal education grants earmarked for immigrants’ children and low-income students to help fund “a radical leftwing agenda.”

The administration this week withheld more than $6 billion intended for after-school and summer programs, English language instruction, adult literacy and more, saying it would review the grants to ensure they align with President Donald Trump’s priorities. The freeze sent schools and summer camp providers scrambling to determine whether they can still provide programs like day camps this summer or after-hours child care this fall.

On Wednesday, the Office of Management and Budget said an initial review showed schools used some of the money to support immigrants in the country illegally or promote LGBTQ+ inclusion. The administration said it hadn’t made any final decisions about whether to withhold or release individual grants.

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“Many of these grant programs have been grossly misused to subsidize a radical leftwing agenda,” the Office of Management and Budget said in a statement.

It said New York schools had used money for English language instruction to promote organizations that advocate for immigrants in the country illegally. Washington state used the money to direct immigrants without legal status toward scholarships the Trump administration says were “intended for American students.” Grant funds also were used for a seminar on “queer resistance in the arts,” the office said.

Officials from New York and Washington state didn’t immediately respond to requests for comment.

Advocates for low-income and immigrant children connected the grant freeze to the Trump administration’s larger crackdown on immigrants. Two of the federal programs put on hold were appropriated by Congress to help support English proficiency of students still learning the language and migrant children who move with their parents to follow agricultural and other jobs.

School districts use the $890 million earmarked for English learners in a wide range of purposes, from training teachers’ aides who work with English learners, to running summer schools designed for them, to hiring family liaisons who speak the parents’ native languages. The $375 million appropriated for migrant education is often used to hire dedicated teachers to travel close to where students live.

By “cherrypicking extreme examples,” the administration is seeking to conflate all students learning English with people who are in the country illegally, said Amaya Garcia, who directs education research at New America, a left-leaning think tank in Washington, D.C.

In reality, the majority of English learners in public schools were born in the United States, according to data from the Migration Policy Institute.

“The way they’re framing it is that we’re using this money for undocumented students and families,” said Margarita Machado-Casas, president of the National Association of Bilingual Educators. “It’s a distraction. A distraction from what’s actually happening: that 5.3 million English learners who speak lots of different languages, not just Spanish, will suffer.”

Even if the students lack legal status, states may not deny public education to children in the country illegally under a 1982 Supreme Court decision known as Plyler v. Doe. Conservative politicians in states such as Oklahoma, Texas and Tennessee have pursued policies that question whether immigrants without legal residency should have the right to a public education, raising the possibility of challenges to that landmark ruling.

Meanwhile, states and school districts are still trying to understand what it will mean for their students and their staff if these funds never arrive.

In Oregon, eliminating grants for English learners and migrant students would “undermine the state’s efforts to increase academic outcomes for multilingual students, promote multilingualism, close opportunity gaps and provide targeted support to mobile and vulnerable student groups,” said Liz Merah, spokeswoman for the state’s Department of Education.

Associated Press writer Collin Binkley contributed from Washington.

The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

Wall Street hovers near record highs ahead of new jobs numbers

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By TERESA CEROJANO and MATT OTT, Associated Press

Wall Street was largely unchanged early Thursday, hovering near record levels ahead of new U.S. jobs data that is expected to show unemployment ticked up to the highest rates since late 2021.

Futures for S&P 500, Nasdaq and Dow Jones Industrial Average each inched up less than 0.1% before the bell. Markets are closed Friday for the July 4 holiday.

Treasury yields edged lower ahead of the highly anticipated June jobs report from the Labor Department. Economists believe that hiring slowed again last month as President Donald Trump’s trade wars, federal hiring freeze and immigration crackdown squeezes the American job market.

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Economists project that U.S. employers added 117,500 jobs last month and that the unemployment rate ticked up to 4.3%, which would be the highest since October 2021. However, it’s still low enough to suggest that most American workers continue to enjoy job security.

Also coming Thursday is a separate report from Labor that will show how many people applied for jobless benefits last week. The report is considered a proxy for layoffs.

Though the job market is broadly healthy by historical standards, it appears increasingly under strain as employers contend with fallout from Trump’s policies, especially his aggressive tariffs.

Tariffs raise prices for businesses and consumers alike and the vast majority of economists believe they make the economy less efficient by reducing competition. They also invite retaliatory tariffs from other countries, hurting U.S. exporters and potentially driving businesses to freeze hiring or cut staff.

Many of Trump’s stiff proposed taxes on imports are currently on pause, but they’re scheduled to kick into effect next week. Unless Trump reaches deals with other countries to lower the tariffs, economists fear they could hurt the economy and worsen inflation.

Elsewhere, in Europe at midday, Germany’s DAX and Paris’ CAC 40 each ticked up 0.1%, while Britain’s FTSE 100 gained 0.4%.

Tokyo’s Nikkei 225, which fluctuated between gains and losses during the day, added 0.1% to 39,785.90. In South Korea, the Kospi rose 1.3% to 3,116.27, while Australia’s S&P/ASX 200 slipped 0.1% to 8,589.80.

Hong Kong’s Hang Seng index lost 0.6% to 24,069.94. The Shanghai Composite index added 0.2% to 3,460.15.

Taiwan’s TAIEX gained 1.3% while India’s Sensex rose 0.2%. Vietnam’s VN Index shed earlier gains, slipping 0.2%.

Benchmark U.S. crude lost 14 cents to $67.31. Brent crude, the international standard, shed 21 cents to $68.90.

The dollar traded at 143.85 Japanese yen, up from 143.65 yen. The euro was at $1.1793, up from $1.1790.

On Wednesday, the S&P 500 set a record for the third time in four days and the Nasdaq composite gained 0.9%. The Dow Jones Industrial Average ticked down less than 0.1%.

Closely watched US jobs report likely to show hiring slowed in June

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By PAUL WISEMAN, Associated Press Economics Writer

The steady slowdown in U.S. hiring likely continued in June as President Donald Trump’s trade wars, federal hiring freeze and immigration crackdown weighed on the American job market.

When the Labor Department on Thursday releases job numbers for last month, they’re expected to show that businesses, government agencies and nonprofits added 117,500 jobs in June, down from 139,000 in May, according to a survey of forecasters by the data firm FactSet.

The unemployment rate is expected to have ticked up to 4.3%, which would be the highest since October 2021 but still low enough to suggest that most American workers continue to enjoy job security.

FILE – Katy Frank, a former computer scientist at the NOAA Great Lakes Environmental Research Lab, who lost her job Thursday, protests outside the John D. Dingell Veterans Affairs Medical Center in Detroit, Friday, Feb. 28, 2025. (AP Photo/Paul Sancya, File)

The U.S. job market has cooled considerably from red-hot days of 2021-2023 when the economy bounced back with unexpected strength from COVID-19 lockdowns and companies were desperate for workers. So far this year employers have added an average 124,000 jobs a month, down from 168,000 in 2024 and an average 400,000 from 2021 through 2023.

Hiring decelerated after the Federal Reserve raised its benchmark interest rate 11 times in 2022 and 2023. But the economy did not collapse, defying widespread predictions that the higher borrowing costs would cause a recession. Companies kept hiring, just at a more modest pace.

But the job market increasingly looks under strain. A survey released Wednesday by the payroll processor ADP found that private companies cut 33,000 jobs last month. “Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month,” said ADP chief economist Nela Richardson. (The ADP numbers frequently differ from the Labor Department’s official job count.)

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Employers are now contending with fallout from Trump’s policies, especially his aggressive use of import taxes – tariffs.

Mainstream economists say that tariffs raise prices for businesses and consumers alike and make the economy less efficient by reducing competition. They also invite retaliatory tariffs from other countries, hurting U.S. exporters.

The erratic way that Trump has rolled out his tariffs — announcing and then suspending them, then coming up with new ones — has left businesses bewildered.

Manufacturers responding to a survey released this week by the Institute for Supply Management complained that they and their customers were reluctant to make decisions until they understood where Trump’s tariffs would end up. “That whiplash has to stop and it has to stay stopped,” said Susan Spence, chair of the ISM’s manufacturing survey committee.

Trump’s assault on the federal bureaucracy could also show up in June’s job report. Nancy Vanden Houten, lead U.S. economist at Oxford Economics, expects federal jobs dropped by 20,000 last month, “reflecting a hiring freeze, voluntary quits and retirements.’’ For now, she wrote in a commentary Wednesday, court rulings “have put massive federal layoffs on hold.’’

The president’s deportations — and the threat of them — also are likely to start having an impact on the job market by driving immigrants out of the job market. In May, the U.S. labor force — those working and looking for work — fell by 625,000, the biggest drop in a year and a half.

94 Palestinians killed in Gaza, including 45 people waiting for aid, authorities say

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TEL AVIV, Israel (AP) — Airstrikes and shootings killed 94 Palestinians in Gaza overnight, including 45 who were attempting to get much-needed humanitarian aid, hospitals and the Health Ministry said Thursday.

Israel’s military did not immediately comment on the strikes.

Israeli soldiers drive near the border with the Gaza Strip, in southern Israel, Wednesday, July 2, 2025. (AP Photo/Ohad Zwigenberg)

Five people were killed while outside sites associated with the Gaza Humanitarian Foundation, the newly-created, secretive American organization backed by Israel to feed the Gaza Strip’s population, while 40 others were killed waiting for aid in other locations across the Gaza Strip.

Dozens of people were killed in airstrikes that pounded the Strip Wednesday night and Thursday morning, including 15 people killed in strikes that hit tents in the sprawling Muwasi zone, where many displaced Palestinians are sheltering. A separate strike on a school in Gaza City sheltering displaced people also killed 15 people.

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Gaza’s Health Ministry said the number of Palestinians killed in Gaza has passed 57,000, including 223 missing people who have been declared dead, since the war began on Oct. 7, 2023. The ministry doesn’t differentiate between civilians and combatants in its death count but says that more than half of the dead are women and children.

The deaths come as Israel and Hamas inch closer to a possible ceasefire that would end the 21-month war.

Trump said Tuesday that Israel had agreed on terms for a 60-day ceasefire in Gaza and urged Hamas to accept the deal before conditions worsen. But Hamas’ response, which emphasized its demand that the war end, raised questions about whether the latest offer could materialize into an actual pause in fighting.

The Israeli military blames Hamas for the civilian casualties because it operates from populated areas. The military said it targeted Hamas militants and rocket launchers in northern Gaza that launched rockets toward Israel on Wednesday.

The war began when Hamas-led terrorists attacked southern Israel, killing 1,200 people and taking roughly 250 hostages.

The war has left the coastal Palestinian territory in ruins, with much of the urban landscape flattened in the fighting. More than 90% of Gaza’s 2.3 million population has been displaced, often multiple times. And the war has sparked a humanitarian crisis in Gaza, leaving hundreds of thousands of people hungry.