On May 2, the Trump Administration took its first formal step in the federal budget process by submitting its “skinny budget” proposal to Senator Susan Collins, Chair of the Senate Committee on Appropriations. This initial outline gives education leaders their first glimpse into potential funding changes that could affect school districts nationwide beginning this fall.
A skinny budget serves as a preliminary framework, communicating presidential priorities to Congress without offering comprehensive details. While significant as a statement of intent, it is important to remember that this document is non-binding. Constitutional authority for federal spending remains with Congress – a point Senator Collins herself emphasized when noting, “[u]ltimately, it is Congress that holds the power of the purse.”
The proposal arrives amid early signs of disagreement between Congressional Republicans and the White House. Senator Collins has already expressed “serious objections” after her initial review, suggesting a potentially complex negotiation process ahead.
The current proposal outlines a substantial $12 billion reduction in education funding – representing a 15% cut to discretionary education spending compared to the 2025 budget. For school districts already managing tight budgets, the specific reductions include:
• Title I: $4.5 billion reduction
• English Language Acquisition: $890 million reduction
• Adult Education: $729 million reduction
• Migrant Education: $428 million reduction
• Preschool Programs: $315 million reduction
• Department of Education Administration: $127 million reduction
• Office for Civil Rights: $49 million reduction
Not all programs would see cuts. IDEA funding would remain flat, while charter schools would receive a $60 million increase.
Beyond the raw numbers, the proposal introduces significant structural changes to how federal education dollars would be distributed. A new “K-12 Simplified Funding Program” would consolidate 18 separate competitive and formula grant programs into a single formula grant. Similarly, seven separate IDEA programs would be combined into one.
These consolidations would fundamentally alter how districts apply for and receive federal education funds, potentially creating both administrative challenges and opportunities during implementation.
School finance officers should be aware that the education budget represents only part of the potential fiscal impact on schools. The proposal exists within a broader context of competing priorities and fiscal constraints:
School nutrition programs administered by the USDA have already seen $1 billion in reductions, with further cuts possible if proposed SNAP eligibility restrictions are implemented. These changes could directly affect school meal programs and the students who depend on them.
Perhaps most concerning for districts serving students with disabilities, Medicaid – which currently provides $7.5 billion annually for school-based health services, including significant support for related services – faces potential cuts as the House Energy and Commerce Committee works to identify $880 billion in healthcare spending reductions.
Meanwhile, the administration has proposed increases to military and border security spending, while simultaneously working with Congressional Republicans to extend expiring tax cuts. The Congressional Budget Office estimates these tax extensions would reduce federal revenue by approximately $4 trillion over a decade, intensifying pressure for spending cuts elsewhere.
The administration has set an ambitious goal of July 4, 2025, for budget passage. If this timeline holds, districts could begin feeling funding impacts in fall 2025 with the federal fiscal year beginning October 1.
What does this mean for your district?
The budget proposal marks only the beginning of what will undoubtedly be a complex negotiation process. While the proposed education cuts are significant, history suggests the final budget passed by Congress may differ substantially from this initial outline.
For now, education leaders should focus on understanding these potential changes while continuing their normal operations and planning. As budget negotiations progress toward the July 4 target date, clearer information about impacts on specific programs and district-level funding should emerge.