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NEA Issue Explainer

Education Funding and Budget

Congress funds critical programs serving the students most in need through the annual budget process. The federal fiscal year begins Oct. 1 and ends Sept. 30.
Educator teaching science lesson to young students
Published: June 28, 2025
This issue explainer originally appeared on NEA.org

Federal funding for public schools helps lower class sizes, gives support to students with ADHD, dyslexia, and other disabilities, and makes career programs and 2- and 4-year colleges more affordable. 

While 90% of public school funding comes from state and local governments, federal programs help supplement  

The GOP majority in Congress plans to enact tax cuts for billionaires, paid for by everyone else, using a complicated process called “reconciliation." 

Among other things, the GOP majority is pushing to:  

  • Weaken public education with a $100 billion tax credit voucher scheme  
  • Make higher education less affordable and accessible by reducing financial aid and raising taxes on student loan debt, scholarships, and fellowships  
  • Cut Medicaid and the child health care program known as CHIP by as much as $880 billion. 38 million children covered by the program comprise nearly half of total enrollment. 
  • Slash child nutrition programs, school meals, and other food aid 
  • Ramp up immigration enforcement and raids that are already traumatizing students and educators 

Here's What's at Stake in your State

See how much your state could lose—in IDEA and Title I funding, Pell Grants, and career and technical education grants—if Trump shutters the Department of Education. Please also see how federal funding supports public schools in your area.

Use Your Educator Voice.

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NEA President Becky Pringle stands with a bullhorn at a rally to support students.

Speak Up For Students and Public Schools

When we act together and lift our voices together in unison, we can improve the lives of children.
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The Union of Vermont Educators

The Vermont-National Education Association is the union of Vermont educators, 13,000 professionals who teach the state's children every day. As the state's largest union, Vermont-NEA is proud to represent the people who make a difference in the lives of students in classrooms across Vermont.