Federal education funding is delayed. What now?

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Hey everyone, Kunjan here.

Every summer, states and districts count on the U.S. Department of Education to finalize critical ESEA funding by July 1. It’s how districts plan for everything, including after-school programs, staffing, and support services for kids. 

Today, funding that Congress approved nine months ago is still on hold, just weeks before some schools welcome kids back.

According to the most recent notice from the Office of Management and Budget, the following grants are under review:

• Title I, Part C: Migrant Education (FY24: $376M)
• Title II, Part A: Teacher and School Leader Supports (FY24: $2.19B)
• Title III, Part A: English Learners (FY24: $890M)
• Title IV, Part A: Student Support and Academic Enrichment (FY24: $1.38B)
• Title IV, Part B: 21st Century Before and After-School Programs (FY24: $1.33B)

USED hasn’t shared when to expect final allocations, and while technically they have until September 30, this delay is already putting districts in a tough spot. States and districts built their plans for this school year months ago. Now, they’re being forced to rethink hiring decisions, revisit programming plans, and brace for cuts they could not have anticipated.

Until districts know how much money they can expect from the federal government, they are going to have to triage the most important budget items. That could mean fewer teachers in classrooms, canceled after-school programs, and kids left without basic school supplies like computers.

This isn’t about policy or politics, it’s about what kids see and feel every day in their classrooms. And right now, without action, what kids get will be less and worse.

This is where states must lead. States should put student learning and wellbeing first, and that means helping districts prioritize the things that matter most.

To help state leaders do this, our team at Watershed Advisors has compiled some brief guidance on next steps. 

While the document contains more information, here are three things every state leader can do right now:

1. Communicate with your districts. Let district leaders know that these specific entitlement funds are not guaranteed for 2025-2026, and states should know by September 30 whether any of these funds will be allocated. 
2. Give districts concrete steps to understand their rollover funds. Pull reports on rollover from prior years and share these with districts.
3. Help districts prioritize remaining dollars. Advise districts to identify alternate funds for the highest priority expenditures through September 30. Once those decisions are made, begin contingency planning for potential impacts past September 30.

This is a dynamic situation, and much could change in the coming days and weeks. We’re watching USED’s next moves closely. 

Special thanks to Jill Wohrle for contributing to this edition of the Delta.

Let’s Get Muddy

If you want to learn more about what this delay means and how to get ahead of it, join me and Catherine Pozniak , Principal Consultant for Longbourn Consulting for a free webinar on Tuesday, July 8, from 4:15 to 5:00 p.m. ET. The webinar will cover immediate actions state leaders can take to provide clarity and clear next steps to districts. We’ll include ample time for Q+A. Click here to register.