Jul 21, 2025 3:44:23 PM
In May 2025, we spoke with about a dozen superintendents across the country—and others who work closely with them—about challenges stemming from recent national events, including a much smaller United States Department of Education (ED), likely changes in federal Title I funding and oversight, and the various executive orders aimed at shifting more responsibility to the state and local levels. We wanted to know:
Across big cities and rural communities, school district leaders are navigating serious uncertainties, major funding disruptions, and political challenges. All this “noise” is pushing leaders to stabilize their schools and plan for worst-case scenarios— instead of focusing on improving academic support.
Leaders said that one of the most challenging things about this movement is that each district is dealing with its own unique realities, depending on state politics and local economic conditions. However, they also shared many common concerns, including budget and finance issues, the loss of community partnerships for vital student services, and the fear that states might not be able to take over from the feds and provide the desperately needed leadership, data, and support.
Most district leaders are tracking federal budget cuts. Many superintendents fear that student welfare and learning readiness could worsen due to cuts in social and health programs. One district leader said her small district already had a $5 million grant for mental health services end two years early.
Uncertainty and confusion around the future of federal K-12 funding compounded preexisting fears. Leaders openly wondered:
Leaders described a worst-case scenario where federal funds are cut, but regulations and obligations remain.
“As [the feds] consolidate funding streams… It’s going to be less money, and we’re going to have more unfunded mandates.” District leaders have little clarity around whether the current federal administration will enforce existing rules on civil rights or equitable provision of services, and whether any changes will be permanent or reversed in four years.
In fact, there has been little to no guidance from the federal government or the states about likely budgetary impacts. This complicates an already challenging budgeting process in most localities, as enrollment continues to decline and pandemic relief funding is depleted. District leaders are now looking to their chief state school officers, governors, and legislators to help them identify the spending, staffing, and service requirements they will still be held accountable for fulfilling (including special education and other federally supported programs).
Leaders also discussed the ripple effects of canceled federal grants and contracts, as well as possible consequent changes in philanthropy. They reported already losing valuable support from:
Superintendents are worried that any hard-won academic progress made since the pandemic will be challenging to maintain in this chaotic environment. District leaders are “trying to manage through the noise” by, for example, carrying on with day-to-day work while preparing in advance for worst-case scenarios (e.g., continued enrollment declines, disruptions due to immigration raids, loss of needed programs to help the most disadvantaged, changing DEI programs, loss of SEL programs). “I tell my colleagues, ‘Don’t overreact, stay nimble, and be careful about making long-term decisions… when we don’t know what will be a long-term versus short-term change.’”
They exuded confidence that they would “step up” and maintain services for various student groups as long as the funding remained, even without continued enforcement from the federal government. However, they worry about addressing school-level issues in special education, staffing, and chronic absenteeism, which are exacerbated by federal shifts. As one said, “How do we manage all of these shifting conditions and still build the solutions to [meet student needs]?” In this fraught environment, leaders are more focused on maintaining stability than implementing significant changes in instruction or teacher roles. They are focused on what is possible in the short run: supporting welcoming and instructionally focused schools.
District leaders are starting to ask themselves what the disappearance of federal “regulatory overhang” allows them to do, noting “we [currently] do so much compliance work.” Some hope state superintendents and legislative committees won’t remain paralyzed by federal regulatory ambiguity: they want state actors to decide whether to continue, change, or jettison former federal rules now, not after districts have been crippled by confusion.
One leader argued that districts need to be pushed to innovate at this moment: “There is an exciting and incredible opportunity for traditional public school systems to rethink their relationship with school choice and create opportunities… to rethink learning systems; to ask ‘Who can teach?… Where can we teach?’ …to shift the relationship with school facilities. School systems will need to be pushed to take advantage of these opportunities. Otherwise [districts] will cease to exist.”
Some felt deregulation at the federal level could open the door for states to pilot and test innovative solutions. Others hoped that their state legislators would trim regulation or that districts would leverage AI, new public school choice programs, or opportunities for high school students to take college courses.
One district leader emphasized staying focused on possibility in a chaotic time: “I’m not trying to diminish how bad everything is, but I will say there are folks who are now asking: what can we actually dig into besides the fear and lack of federal overhang and confusion at the federal level?… We’re using it as an opportunity to focus and prioritize and innovate without federal oversight.”
Since we spoke with these leaders, the Department of Education announced in early July that it would withhold nearly $7 billion in spending that Congress had already approved. The fears of some of those we spoke with are quickly becoming reality.
The question at hand is how district and state education leaders respond to federal cuts. Will districts stay stuck in past practices? Or will educators find ways to use this crisis to deliver educational opportunities in new and more effective ways?
Right now, districts need clarity from their states, especially about which rules remain in place and how funding is likely to change over the next few years.
States should help districts adapt to tighter fiscal realities and incentivize creative staffing models and other out-of-the-box solutions. States should also assess how to remove unnecessary compliance reporting and overly bureaucratic rules that tie districts’ hands. And everyone should use this moment to push for overdue changes like expanded public school choice options.
States that lost federal funding still need to find a way to support districts effectively, especially small and rural districts. It may be time to consider district consolidations and other efficiencies. More than anything, states and support organizations should help districts sort through the noise to focus on the core work of advancing literacy, pushing for more post-secondary pathways, and navigating the realities of emerging technologies like AI.
Similarly, schools need clarity from their districts, especially about deviating from the one-teacher, one-classroom model and providing new kinds of support for children who have fallen behind. As the “federal overhang” recedes, districts can also reduce the parts of their central offices devoted to compliance and put as much money as possible into direct services to kids.
In the absence of federal data and research, states and philanthropies need to support research and development on how districts can adapt to budget crises, as well as on the uptake of high-quality and AI-based curricula. States and philanthropies can also provide more nimble support to school districts dealing with fast-moving realities. As one leader said, “It’s a new day for superintendents. They need readily available resources to respond…Whatever we can do to help people where they are—they need very quick resources.”
The leaders we interviewed had a general air of fatigue about them. Some joked that after getting through the pandemic, they were not thrilled to be dealing with another period of uncertainty. One called the situation a “nightmare.” At the same time, they were determined to stay focused and forge opportunities where possible.
CRPE will continue to track and share how leaders are responding to these challenges.
This post was first published on CRPE.
Robin Lake is director of the Center on Reinventing Public Education. CRPE’s mission is to develop transformative, evidence-based solutions for K–12 public education. Her research focuses on U.S. public school system reforms, including public school choice and charter schools; innovation and scale; portfolio management; and effective state and local public oversight practices. Paul T. Hill is the founder of the Center on Reinventing Public Education, and Emeritus Professor at the University of Washington Bothell. His current work focuses on re-missioning states and school districts to promote school performance; school choice and innovation; finance and productivity; and improving rural schools. Lydia Rainey is a principal at the Center on Reinventing Public Education, where her research focuses on ways to design and implement equitable and innovative school systems, with attention to ways to disrupt our current systems’ preference for the status quo. Her recent research has focused on how educational leaders in state agencies, central offices, and schools lead the design and implementation of new policies and practices that call for deep changes in how their school system educates students. She approaches this work using traditional qualitative, quantitative, and design-based techniques.
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