Education Funding Video

School Funding: The 3 Big Questions to Watch in 2026

By Mark Lieberman & Yi-Jo Shen — January 6, 2026 2:13
Illustration in blue of huge hands holding money as silhouette people run towards it.

School districts are bracing for another turbulent financial year, with disruption and uncertainty poised to remain the status quo.

The Trump administration has shown few signs of pulling back its efforts to reshape K-12 education by canceling grants and changing policies, often without Congress weighing in.

States, meanwhile, are facing budget pressures of their own, which could strain their education investments.

And on the local level, fluctuating enrollment and increasingly complex choice programs are playing out in complex ways that could put many districts on high alert for financial challenges in the coming months and years.

Here’s a look at some of the key funding issues school district leaders will be watching.

Mark Lieberman is a reporter for Education Week who covers school finance.
Yi-Jo Shen is a contributing video producer for Education Week.

Coverage of strategic resourcing to support teaching and learning goals for Education Week and EdWeek Market Brief is supported in part by a grant from the Gates Foundation, at www.gatesfoundation.org. Our editors retain sole editorial control over the content of this coverage.

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