Schools Face Financial Crisis as Federal Pandemic Aid Expires
Congress allocated approximately $190 billion to tackle issues such as learning loss and chronic absenteeism, but that funding will no longer be available after the end of September.
TroibNews 
School districts throughout the United States have been grappling with a significant reduction in funding as the unprecedented federal financial assistance they received during the pandemic is coming to an end. This sizeable aid, which totalled approximately $190 billion, was initially provided to help schools address critical issues such as learning deficits, chronic absenteeism, and declining mental health among students, representing over one fifth of the nation's total K-12 educational spending in 2022. With the depletion of the last $122 billion of these funds by the end of September, many districts are implementing job cuts, enlarging class sizes, and scaling back educational programs in order to manage their budgets.
Several key initiatives, such as high-intensity tutoring and extended school activities which had been supported by this federal boon, are now under threat just as students are returning to the classrooms. As explained by Alabama State Superintendent Eric Mackey, "When you look at the tally sheet, you’ve got a billion less dollars then you’re going to have a billion less services." He acknowledged the temporary funds allowed for experimental programs that states could otherwise not afford.
The withdrawal of funding is impacting high-poverty and urban school districts severely, as they were the primary recipients of the larger relief shares. Additionally, districts that utilized these one-time funds for ongoing expenses like salary increases and hiring new staff are facing tough decisions. In some regions such as Massachusetts and Washington, the challenge is profound due to the added workforce that is now unsustainable.
Marguerite Roza, director of Georgetown University’s Edunomics Lab which monitored the use of these federal aids, remarked, “A lot of districts thought that once money comes from the federal government, it comes forever — like we just get it year after year after year.” She suggested that, “Districts are going to have to be more adaptive in this situation.”
Research indicates a link between this federal aid and improved student performance, with studies reporting that districts with higher poverty which received more funding per student made notable academic progress. One such study by the University of Chicago's Education Lab demonstrating how in-school high-intensity tutoring has led to increased scores in mathematics and reading, highlighting the importance of these programs. "It does signal to us that keeping high-dosage tutoring, at the expense of other kinds of efforts even, seems really important if we care about student learning," stated Monica Bhatt, senior research director at the Education Lab.
In Arizona's growing rural area, Saddle Mountain Unified School District utilized its aid for purchasing new technology and funding one-off staff bonuses. However, it also chose to invest in additional mental health professionals, a decision now causing strain with the conclusion of the aid. Superintendent Michael Winters commented on the necessity of these roles and the subsequent staffing challenges as funding dried up. By embedding the cost of these new mental health roles in their ongoing budget, the district faces difficulties in retaining staff due to the inability to provide raises.
"What we really need to do is either give people raises to attract and retain people in the profession or hire additional staff. If that funding is not what you call ongoing funding, you really can’t do much with it," said Winters.
The predicament extends across the nation as seen in Alabama, where the state is covering costs for summer reading and math camps, yet discontinuing other programs. Similarly, in Minneapolis and other districts, cuts are being made to essential services and staff positions to manage the financial shortfall.
As districts nationwide face these significant budgetary dilemmas, there is a push from the White House for a new $8 billion grant program to maintain academic recovery initiatives, though its future in Congress remains uncertain. In the midst of these challenges, Education Secretary Miguel Cardona emphasized the ongoing difficulty in making financial decisions while continuing academic improvements, expressing the urgency for sustained educational funding that must now be matched by state efforts.As the fiscal landscape shifts for school districts, the pressure to adapt is palpable. Many educators and administrators are facing the reality of diminished resources, prompting discussions about the sustainability of educational services. The loss of federal funding has prompted urgent conversations about how to prioritize essential programs without compromising the quality of education that students receive.
In numerous districts, the inability to maintain staffing levels is a critical concern. As schools attempt to balance their budgets, support roles—like counselors and special education aides—are often the first to be targeted for cuts. This scenario raises questions about the long-term impacts on student well-being and academic success, particularly for those who need additional support the most. Some districts, recognizing the essential nature of these roles, are seeking alternative funding solutions, whether through local grants, community partnerships, or fundraising initiatives.
Moreover, parents and community stakeholders are beginning to express their concerns about the implications of these budget cuts on school safety and student mental health. With rising social-emotional issues exacerbated by the pandemic, there is a growing sentiment that adequate mental health resources are not merely advantageous but essential for creating a conducive learning environment. As such, many communities have become increasingly vocal in advocating for the restoration of funding for vital services.
In response to these challenges, educators are leveraging their voices to influence policy decisions. Many are pushing for a reevaluation of funding structures to ensure that schools are not solely reliant on one-time federal aid, but rather establishing consistent, equitable funding sources. Discussions around education funding are gaining momentum, with local leaders advocating for legislative changes that could better support long-term financial health for public schools.
Some district leaders are also exploring innovative educational models that require fewer resources or higher efficiency. Collaborations with local colleges for dual-enrollment programs, employing technology to enhance remote learning capacities, and streamlining administrative processes are just a few strategies being discussed to mitigate the impact of reduced budgets. School leaders are collaborating to share resources and best practices, which could help stabilize programs despite financial setbacks.
Additionally, state-level education departments are working to assess not only the current impacts of funding cessation but also to devise strategies moving forward. This includes potentially revising educational funding formulas and exploring avenues to secure additional state funding—an initiative that could alleviate some pressure from individual districts.
As the academic year progresses, these circumstances are likely to evolve, prompting school districts to remain flexible and resourceful in navigating an uncertain future. The overarching challenge will be balancing the immediate needs of students with the long-term vision of educational equity and opportunity.
Ultimately, the future of public education in the wake of such unprecedented federal aid will depend on the ability of districts, state leaders, and communities to work collaboratively, innovatively, and assertively to secure the necessary support for every student's success. The insights gained from this crisis could shape a more sustainable framework for school funding that prioritizes student needs, builds resilience in the face of challenges, and fosters an environment where all learners can thrive.
Olivia Brown for TROIB News
Several key initiatives, such as high-intensity tutoring and extended school activities which had been supported by this federal boon, are now under threat just as students are returning to the classrooms. As explained by Alabama State Superintendent Eric Mackey, "When you look at the tally sheet, you’ve got a billion less dollars then you’re going to have a billion less services." He acknowledged the temporary funds allowed for experimental programs that states could otherwise not afford.
The withdrawal of funding is impacting high-poverty and urban school districts severely, as they were the primary recipients of the larger relief shares. Additionally, districts that utilized these one-time funds for ongoing expenses like salary increases and hiring new staff are facing tough decisions. In some regions such as Massachusetts and Washington, the challenge is profound due to the added workforce that is now unsustainable.
Marguerite Roza, director of Georgetown University’s Edunomics Lab which monitored the use of these federal aids, remarked, “A lot of districts thought that once money comes from the federal government, it comes forever — like we just get it year after year after year.” She suggested that, “Districts are going to have to be more adaptive in this situation.”
Research indicates a link between this federal aid and improved student performance, with studies reporting that districts with higher poverty which received more funding per student made notable academic progress. One such study by the University of Chicago's Education Lab demonstrating how in-school high-intensity tutoring has led to increased scores in mathematics and reading, highlighting the importance of these programs. "It does signal to us that keeping high-dosage tutoring, at the expense of other kinds of efforts even, seems really important if we care about student learning," stated Monica Bhatt, senior research director at the Education Lab.
In Arizona's growing rural area, Saddle Mountain Unified School District utilized its aid for purchasing new technology and funding one-off staff bonuses. However, it also chose to invest in additional mental health professionals, a decision now causing strain with the conclusion of the aid. Superintendent Michael Winters commented on the necessity of these roles and the subsequent staffing challenges as funding dried up. By embedding the cost of these new mental health roles in their ongoing budget, the district faces difficulties in retaining staff due to the inability to provide raises.
"What we really need to do is either give people raises to attract and retain people in the profession or hire additional staff. If that funding is not what you call ongoing funding, you really can’t do much with it," said Winters.
The predicament extends across the nation as seen in Alabama, where the state is covering costs for summer reading and math camps, yet discontinuing other programs. Similarly, in Minneapolis and other districts, cuts are being made to essential services and staff positions to manage the financial shortfall.
As districts nationwide face these significant budgetary dilemmas, there is a push from the White House for a new $8 billion grant program to maintain academic recovery initiatives, though its future in Congress remains uncertain. In the midst of these challenges, Education Secretary Miguel Cardona emphasized the ongoing difficulty in making financial decisions while continuing academic improvements, expressing the urgency for sustained educational funding that must now be matched by state efforts.As the fiscal landscape shifts for school districts, the pressure to adapt is palpable. Many educators and administrators are facing the reality of diminished resources, prompting discussions about the sustainability of educational services. The loss of federal funding has prompted urgent conversations about how to prioritize essential programs without compromising the quality of education that students receive.
In numerous districts, the inability to maintain staffing levels is a critical concern. As schools attempt to balance their budgets, support roles—like counselors and special education aides—are often the first to be targeted for cuts. This scenario raises questions about the long-term impacts on student well-being and academic success, particularly for those who need additional support the most. Some districts, recognizing the essential nature of these roles, are seeking alternative funding solutions, whether through local grants, community partnerships, or fundraising initiatives.
Moreover, parents and community stakeholders are beginning to express their concerns about the implications of these budget cuts on school safety and student mental health. With rising social-emotional issues exacerbated by the pandemic, there is a growing sentiment that adequate mental health resources are not merely advantageous but essential for creating a conducive learning environment. As such, many communities have become increasingly vocal in advocating for the restoration of funding for vital services.
In response to these challenges, educators are leveraging their voices to influence policy decisions. Many are pushing for a reevaluation of funding structures to ensure that schools are not solely reliant on one-time federal aid, but rather establishing consistent, equitable funding sources. Discussions around education funding are gaining momentum, with local leaders advocating for legislative changes that could better support long-term financial health for public schools.
Some district leaders are also exploring innovative educational models that require fewer resources or higher efficiency. Collaborations with local colleges for dual-enrollment programs, employing technology to enhance remote learning capacities, and streamlining administrative processes are just a few strategies being discussed to mitigate the impact of reduced budgets. School leaders are collaborating to share resources and best practices, which could help stabilize programs despite financial setbacks.
Additionally, state-level education departments are working to assess not only the current impacts of funding cessation but also to devise strategies moving forward. This includes potentially revising educational funding formulas and exploring avenues to secure additional state funding—an initiative that could alleviate some pressure from individual districts.
As the academic year progresses, these circumstances are likely to evolve, prompting school districts to remain flexible and resourceful in navigating an uncertain future. The overarching challenge will be balancing the immediate needs of students with the long-term vision of educational equity and opportunity.
Ultimately, the future of public education in the wake of such unprecedented federal aid will depend on the ability of districts, state leaders, and communities to work collaboratively, innovatively, and assertively to secure the necessary support for every student's success. The insights gained from this crisis could shape a more sustainable framework for school funding that prioritizes student needs, builds resilience in the face of challenges, and fosters an environment where all learners can thrive.
Olivia Brown for TROIB News
