Communicate Budget Uncertainty Early and Often, District Leaders Advise

Family engagement and early public communication about school budgets are becoming especially crucial as schools navigate a fast-evolving federal funding policy landscape.

For instance, school districts nationwide recently had to reckon with a sudden, disruptive pause of more than $6 billion in federal grants that was lifted in late July.

The U.S. Department of Education has also pushed for new priorities with federal discretionary grants, including more support for evidence-based literacy, school choice expansion, giving states more control over education dollars, and the advancement of artificial intelligence in schools. Meanwhile, the Trump administration is still working to shutter the Education Department.

Another potential federal change that districts should monitor is Congress’ pending decision on its budget for fiscal year 2026, said Jim Larson, a partner at education nonprofit TNTP, during an Aug. 7 webinar about the changing K-12 federal funding landscape. Districts should also keep an eye on which states opt into the new federal private school choice tax credit program approved in the “One Big, Beautiful Bill,” he said.