The interaction between state and federal budgets is a bit tricky: we're hearing, now, about a federal budget which, when it comes to things like federal grants to school districts, would fund the school year after this coming one, starting in August or September of 2026 (which will be local and state fiscal year '27). The federal grants for this coming school year, the one that starts in August or September of 2025, already were passed by Congress, and, for the most part, the amounts to be allocated have already been shared with states (for what locally and at the state level is fiscal year '26).
Thus we've felt a bit safer for this coming year, as we've largely already had the numbers of what has been allocated (even as, remember, grant funding is reimbursements, so we never really have the money).
Mark Lieberman, who writes on school finance for EdWeek, today flags four grants for which that is not the case as of yet:
The growing anxiety over disrupted federal education funding centers on four programs worth a combined $5 billion: Title I-C for migrant education, Title II for professional development, Title III for English learners, and Title IV-B for before- and after-school programs.
The White House budget proposal published last month calls for eliminating all four programs beginning in the 2026-27 school year. But education officials nationwide worry that the administration could proceed with those cuts for the 2025-26 school year, before Congress has weighed in.
For all four programs, states haven’t received routine funding allocation estimates from the federal government that typically arrive between March and May—nor any confirmation from federal officials that the funds are still forthcoming.
Mark relates the national breakdown on how much is involved:
- Migrant education: $376M (Title I-C)
- Professional development for teachers: $2.2B (Title II)
- Services for English learners: $890M (Title III)
- Before/afterschool programs: $1.3B (Title IV-B)
This delay has concerned the superintendents such that AASA came out
with a statement today, which reads in part:
The delayed FY25 disbursements for Title I, Part C; Title II, Part A; Title III; and Title IV-B totals $4.786 billion—resources essential for the upcoming school year, which begins in just a few weeks in many communities. Without these vital investments, schools will be faced with significant budget shortfalls, leading to reductions in service—and, in some cases, staff layoffs.
We call on the USED and OMB to release the funding as appropriated by Congress without further delay. The law is clear, the appropriations are in place, and the stakes are too high to allow political brinksmanship to interfere with the critically important operations of our nation’s public schools. We strongly urge USED and OMB to honor their legal obligations under authorizing statutes and execute the funding decisions made by Congress.
Mark also relates this concerning exchange from a Senate hearing yesterday:
During a Senate hearing on Wednesday, Sen. Tammy Baldwin, D-Wis., asked Russell Vought, the director of the federal Office of Management and Budget, whether the administration intends to hold back K-12 education funding due to states next week and instead propose a “rescissions package,” asking Congress for permission to cancel the previously appropriated funds.
Vought did not rule out that possibility. He replied, in effect, that the administration hasn’t decided.
“We are considering multi-year funding. It’s underway with a programmatic review. But again, it is multi-year funding, and no decision has been made with regard to whether they will be a part of any particular rescissions package,” Vought said.
As you may have read, Vought rejects the constitutional framework of three co-equal branches of the federal government which check and balance each other.
I wish I had some sort of conclusion here. We don't know. Given how these have gone so far, if the funding didn't come through, presumably states would file suit, and so far, those have largely gone in favor of the states suing.
But that doesn't meet payroll or pay for programs in the meantime.
