Many schools across the U.S. are confronting immediate funding challenges due to government shutdowns, while others are feeling anxious about their financial reserves.
Schools located on military bases or tribal lands often depend on impact aid, which gets halted when the federal government shuts down. Some institutions have temporary funding to get through the crisis, but others fear they might not be able to remain operational for long.
Katie Law, principal of Arapa Ho Charter High School situated on a Native American reservation in Wyoming, mentioned that impact aid constitutes about 25% to 33% of the school’s budget. Unfortunately, much of the savings from last year were allocated to new athletic facilities.
“It was a good investment, but it drained our reserves. If our safety net was already thin, we would need to rethink our planning now that we’re facing this shutdown,” she noted.
Law expressed frustration about staffing, saying they can’t even hire substitute teachers at this point. “People are juggling multiple roles to cover various responsibilities. I’m in the same boat; I’m the principal and stepping in to teach my own class,” she added.
Impact aid is available to various types of schools, particularly those on tax-exempt land like military installations and Native American reservations, or districts with federal properties.
The education sector indicated that while Title I funds for low-income schools will proceed, as that money has already been allocated, impact aid is given in installments throughout the year and can be abruptly cut off.
This aid differs from other federal funding types because it can support any part of school operations. Some people even refer to it as “Uncle Sam’s tax money for schools.”
“Impact aid acts like a federal tax payment to fund schools. So, it’s not a supplement for local taxes,” explained Cherry Zuimai, executive director of the Federal Association.
The Impact Aid program hasn’t been fully funded since 1969, putting schools in a disadvantaged position. Despite various attempts to close this funding gap, success has been elusive over the years.
“We’ve been advocating for years to secure complete funding each year,” Imai pointed out.
Even if a continuous resolution with Rep. Vicker is reached, only certain portions of the impact aid will be allocated. Full restoration of aid will only happen if the government is fully funded.
However, looking at the past shutdown lengths, some schools aren’t overly concerned.
“They’re handling it well,” remarked Bernie Roper, director of Luckland Independent School District based on a military base in San Antonio, Texas. He noted that the aid impact tends to arrive very late, even in times without government shutdowns.
“We can’t predict these events, so we prepare as best we can. We’re hopeful now, given the efficiency of the current leadership in the Impact Aid office, but their hands are tied until they can resume work,” he added.
Other schools, particularly those with federal properties, are also facing smaller amounts of impact aid, yet they remain in the dark about what to expect from the government until the shutdown is resolved.
“They won’t respond to our emails until the government reopens, which is worrying. There are still payments pending from last year’s applications, meaning these schools will miss out on final payments,” he said.
“The longer this drags on, the more challenging it will be for schools to start the year strong. Sure, their local tax base will provide some support initially, but eventually, they’ll need that federal impact assistance,” he concluded.





