Budget experts told Texas lawmakers on Monday that the Texas Education Agency alone would lose $167.7 million in grants.
More than 285 schools will lose federal funding on July 1. Schools will also lose funding for special education and classes to teach English as a second language. Nutrition programs, early child intervention and family protective services will also see major reductions in funding.
The Texas budget receives $34 billion from Washington every year and the law instituting automatic budget cuts is expected to take effect on Friday.
Lawmakers complained that while the state will lose federal money, the federal regulations to receive that funding will remain in place.