The Trump administration is withholding federal education grants while it reviews funding sources for the upcoming school year, delaying money used to support migrant students, English language learners, professional development and student academic achievement.
The administration has proposed cutting those grants entirely next year.
That has left some school districts, already facing declining enrollment and what they describe as inadequate state support, in a precarious situation.
Greg Bowen, assistant superintendent of business at Del Norte Unified School District, said the district has a more than $4 million budget deficit for the upcoming school year.
"We got to plan for the future," he said. "We got to look at that very carefully and get creative to find possible different funding sources or reductions in force."
Bowen said the district is not filling some vacancies, which saves $5 million.
He also pointed to the rising cost of operations and the economic fallout from Trump-era tariffs as factors that will make next year’s budget especially difficult.
Brad Earl, assistant superintendent of operations at the Medford School District, is also concerned about the next budget cycle.
"We think we can get through next year without any issues," he said. "What we're really nervous about is the following year. So when we get to 26-27, it's very likely that we'll see heavier cuts in that area, say, 10% to 15% [reduction in federal funds]."
Medford already cut $7.5 million in spending last year, and Earl estimates the district will need to cut an additional $3 to $4 million next year.
Many districts have already experienced budget shortfalls in recent years, driven by inflation, the end of emergency COVID-19 relief money for schools and a rise in special education enrollment.
Many students with special education needs receive individualized education plans, or IEPs, which can include specialized instruction and services, such as speech therapy or counseling. Oregon provides funding for up to 11% of a district’s enrollment, but if a school has a higher percentage of kids with IEPs, those aren’t covered.
"The gap is continuing to get bigger, and at some point, I don't know what districts are going to do when it comes to serving their special needs students because the funding is simply not there," said Sherry Ely, business manager for the Ashland School District. "The federal government, there's not going to be any sympathy there right now under the current administration, and so I worry about that a lot."
Ashland School District recently faced a dire financial shortfall, which was addressed by securing a $10 million bond to help cash flow, among other measures.
"I feel really, really happy with where we're at now," Ashland Superintendent Joseph Hattrick said. "We have to continue to maintain being mindful about changing our budget practices, which is always budget based on revenue. It seems common sense, but we had lost sight of that."
Meanwhile, declining enrollment is leading the Medford School District to consider consolidating elementary schools.
"I will go on record to say it's inevitable that the school district will close schools eventually," Earl said.
Ashland School District will also hold community discussions this fall to discuss the possibility of closing or consolidating schools in the future.
And this financial turmoil, Bowen said, "affects students at the end."
