School districts across the U.S. are grappling with significant financial challenges as the largest-ever infusion of federal aid—$190 billion to address pandemic-related issues—expires. The last $122 billion is set to run out at the end of September, leading to job cuts, increased class sizes, and slashed programs.
High-poverty schools and urban districts, which received the most relief money, are now feeling the harshest effects. Many spent the funds on ongoing expenses like pay raises and new programs, leaving them in a difficult position. For example, Saddle Mountain Unified School District in Arizona used federal aid to hire much-needed mental health professionals. However, to retain these hires, the district has had to freeze teacher raises, contributing to staff resignations.
Research shows that the federal aid improved test scores, particularly in high-poverty districts. However, with the expiration of funds, districts are being forced to make tough budget decisions. Education Secretary Miguel Cardona emphasized the need for states to continue supporting education, warning that difficult choices lie ahead.
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