by Jay Diskey, Education Policy Consultant
Summer vacation has started for many of the nation’s students, but not for school district leaders who are having to deal with many new uncertainties. At the federal level, the Trump Administration has proposed making deep cuts to education aid, abolishing the U.S. Department of Education, and significantly increasing private school options. In the states – which provide 47% of K-12 funding – many legislatures have proposed education budgets with modest increases. However, an increasing number of states are beginning to release declining revenue projections. More specifically:
Federal Budget Developments:
In March, Congress approved a long overdue budget resolution for fiscal year 2025. This budget, which ends on Sept. 30, largely flat funds most K-12 programs. The Trump administration’s budget proposal for fiscal year 2026 is a different story. This proposal, which was rolled out in early May, aims to cut 15% in federal K-12 funding for fiscal year 2026. Funding for some programs such as the Title III English Language Acquisition program would be eliminated altogether. In addition, the Title I program for aid to disadvantaged students and also the IDEA special education program would be revamped as flexible funding streams.
Many of the proposed K-12 cuts align with the Trump Administration’s agenda to eliminate DEI initiatives. They come at a time when the administration has slashed staffing levels at the Department of Education and clawed back billions of dollars in remaining Elementary and Secondary School Emergency Relief (ESSER) monies. These actions have drawn multiple legal challenges.
State Developments:
Legislatures in many states are wrapping up work on their annual fiscal year budgets, many of which go into effect on July 1 and end on June 30, 2026. According to the National Association of State Budget Officers (NASBO), an increasing number of states have revised their revenue forecasts downward due to “heightened economic uncertainty partly brought upon by changes at the federal level.”
The budgets are a mixed bag. For example, New York state enacted a fiscal year 2026 budget with a 4.9% increase in school aid. However, softening economic conditions are reflected in other state budgets. In California, K-12 funding will largely remain flat in fiscal year 2026, though additional funding will be available for early literacy programs.
Join us on Thursday, June 5, to understand how budget and policy decisions at the federal and state levels could impact the market for K-12 education materials in the 2025-2026 school year and beyond. Register now and submit questions for Jay to answer at the conclusion of the presentation.
Jay Diskey is a policy consultant for Westchester Education Services. He is the principal of Diskey Public Affairs, a Washington DC consultancy specializing in education policy, curriculum reform, publishing, and technology.