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Federal changes under the One Big Beautiful Bill Act (H.R. 1), including modifications to Medicaid and SNAP, will alter how states identify students from low-income backgrounds. This, along with changes affecting student attendance and enrollment, will impact state education funding systems, prompting the need to adopt short- and long-term strategies for funding stability and equity.
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As Congress works to finalize the FY26 budget, two competing proposals could have dramatically different impacts on federal K–12 education funding, potentially eliminating some $5B. Understanding the different state-level implications of the Senate and Trump Administration’s approaches can help inform the final funding bill.
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Some four decades after the Supreme Court affirmed all children’s right to a public education, federal funding cuts and immigration enforcement policies are reshaping access to schools and services. These changes are creating new barriers for undocumented students and children in mixed-status families across the country.
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Unas cuatro décadas después de que la Corte Suprema afirmara el derecho de todos los niños a una educación pública, los recortes de fondos federales y la aplicación de la leyes de inmigración están afectando el acceso a las escuelas y los servicios. Estos cambios están creando nuevas barreras para los estudiantes indocumentados y los niños de familias de estatus mixto en todo el país.
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Deep cuts to Medicaid, sparked by President Trump’s spending bill, will have devastating effects on K–12 students and create far-reaching consequences for families and communities.
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States face uncertainty as $6.2 billion in K–12 federal funding remains unreleased. If the U.S. Department of Education doesn’t distribute these funds by July 1, state educational agencies will need plans to help mitigate disruption to essential programs.
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To fully grasp the complexities of education funding in the United States and understand why money matters, it is essential to examine the unique challenges American schools face, the costs associated with providing a high-quality education, and research on the impact of increasing and decreasing education funding.
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Currently, 34 states have policies that allow public funds to cover private school costs through the issuance of vouchers, and the U.S. Congress is considering legislation to create a tax credit for families who choose non-public schools. This tool analyzes public and private school distribution to provide information on where vouchers would likely be allocated.
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California’s Local Control Funding Formula (LCFF), enacted in 2013, created a simpler and more equitable K-12 education finance system. Research indicates it has helped to improve student outcomes and points to challenges in its fiscal design and opportunities to strengthen it.
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California’s Local Control Funding Formula (LCFF), enacted in 2013, created a simpler and more equitable K-12 education finance system. Research indicates it has helped to improve student outcomes and points to challenges in its fiscal design and opportunities to strengthen it.
