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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.

Ready to stand up for public schools?

We need to build our communities. We need to fully fund public schools. We need to hold our elected leaders accountable to the people. And we need your help to make it happen.
ISEA members help register community members to vote

Elections have consequences

That's why we must elect champions of Public Education.

Whether you're a voter, an organizer or a candidate, ISEA has resources for you to play your part!

Iowa State Education Association logo

Leading in our schools, communities, and state.

The Iowa State Education Association works to promote, advance, and protect public education, the education profession, and the rights and interests of our members. When you join the ISEA, you’re joining forces with the power and influence of 3.2 million members nationwide.