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USA
22nd May 2026
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THE HOT STORY

White House withholds more than $2bn in congressionally-approved education funding

The Trump administration is withholding more than $2bn in U.S. Department of Education funding approved by Congress earlier this year by delaying a routine federal budget process known as “apportionment,” raising concerns about potential disruptions to education programs and possible legal challenges. As of May 21, the White House Office of Management and Budget had withheld full or partial funding for 34 education programs, including more than $1.8bn tied to competitive grant programs and most of the $790m allocated to the Institute of Education Sciences, the department’s research arm. The administration has previously proposed eliminating all 33 competitive grant programs and sharply cutting research funding, proposals Congress rejected in the fiscal 2026 budget. While larger formula funding streams such as Title programs and special education grants remain unaffected, education advocates and budget experts warned that prolonged delays could prevent the Education Department from issuing grants or renewing existing programs later this year. More than $1bn of the withheld funding could expire and return to the Treasury within four months if not released. The administration said it is reviewing federal spending to ensure alignment with presidential priorities rather than distributing funds “on autopilot.” Critics argue the strategy represents an unprecedented use of the apportionment process and could violate federal laws prohibiting the executive branch from refusing to spend money appropriated by Congress.

STATE COMPLIANCE GUIDES

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LEGAL

Social-media companies settle school district lawsuit

Meta, TikTok, Snap, and YouTube have settled a lawsuit brought by a Kentucky school district accusing social-media platforms of designing addictive features that harm young users, avoiding what would have been the first jury trial among more than 1,200 similar cases filed by school districts across the United States. The settlement with Breathitt School District, which serves roughly 1,700 students, came just weeks before a scheduled June trial in federal court in California. Financial terms were not disclosed. Meta was the final major platform to settle after TikTok, Snap, and YouTube reached agreements with the district earlier this month. The lawsuits argue that platform features such as infinite scrolling, push notifications, and engagement-driven algorithms contribute to anxiety, depression, self-harm, and other mental-health problems among students, forcing schools to spend more on counseling services, monitoring software, and related support programs. In separate, ongoing litigation, more than 40 states have also filed lawsuits that claim Meta’s products cause safety issues for young people.

FINANCE

Alaska moves to offset soaring school energy costs amid oil-price surge

Alaska lawmakers have approved $144m in one-time funding for K-12 schools next year, including $29m to help districts manage rising energy costs, alongside a bipartisan package of education policy changes focused on teacher retention and long-term operational support. The measures come as school districts across Alaska face budget deficits, declining enrollment, school closures, and sharply higher fuel costs tied to rising global oil prices. Legislators also approved a plan for the state to begin covering the majority of school districts’ energy expenses starting in 2028, subject to future legislative funding approval. The package includes a new student loan forgiveness program offering up to $15,000 over three years for teachers specializing in areas such as special education, STEM, and English as a second language. Lawmakers also approved limits on how quickly local municipalities’ school contributions can rise, capping annual increases at 4%. Education officials and lawmakers said the measures fall short of fully addressing schools’ financial pressures but described them as an important step toward stabilizing districts. The legislation still requires approval from Gov. Mike Dunleavy.

Court battle could reshape how California finances public school facilities

Advocates behind a California lawsuit challenging the state’s school construction funding system are asking a court to suspend more than $3bn in school modernization funding, arguing that the current process unfairly favors wealthier districts over low-income communities. The plaintiffs in Rodriguez v. State of California contend that the state’s matching-fund program for school repairs and upgrades disproportionately benefits districts with higher property wealth, leaving poorer districts struggling with deteriorating facilities, including leaking roofs, failing heating systems, broken plumbing, and unsafe classrooms. Attorneys representing parents, students, teachers, and community organizations are seeking a preliminary injunction that would temporarily halt distribution of most modernization funds approved under California’s $10bn Proposition 2 school bond measure passed in 2024. They argue that without intervention, low-wealth districts will continue receiving a disproportionately small share of state aid while wealthier districts secure funding more quickly through better access to consultants, construction staff, and local bond financing. State officials oppose the request, arguing that suspending funding would delay urgently needed projects statewide and harm districts already relying on approved state assistance. 

LAUSD considers $3.6bn in spending cuts as enrollment continues to decline

Los Angeles USD is facing significant layoffs, with over 1,000 school workers expected to lose their jobs following the Board of Education's recent approval of cutbacks. Acting Superintendent Andres Chait stated: "All of us recognize that a reduction in force creates significant uncertainty and personal hardships for employees, families, and school communities." The district's fiscal stability plan anticipates cuts exceeding $3.6bn over the next three years, potentially resulting in a workforce reduction of 6,000 or more employees. Factors contributing to these layoffs include declining enrollment, the expiration of COVID-relief funds, and rising costs from recent employee contract settlements. The board's vote was 5 to 2, with some members expressing reluctance about the decision. Local 99 Executive Director Max Arias criticized the necessity of the cuts, arguing that the district's financial crisis is overstated. The final version of the fiscal stability plan is set to be reviewed in June.

LEADERSHIP

Pilot survey reveals burnout risks and professional development gaps for principals

A new statewide survey of North Carolina principals and assistant principals found that most school leaders feel supported by their districts, while also highlighting concerns about workload, professional development, and support for diverse learners. More than 80% of respondents said there was an atmosphere of trust between district and school leadership, and more than 90% said they would recommend their district as a place to work. The survey, conducted in 11 districts across the state, was designed to give school leaders a dedicated platform to share their experiences and working conditions. Despite the positive feedback, the survey identified several areas where principals said they need more support. Seventeen percent reported lacking sufficient time and resources for professional development, while 21% said they needed more district support for neurodiverse students, multilingual learners, and academically gifted students. More than 60% also said they needed better access to data to make informed decisions. The findings showed that school leaders commonly work 55 to 60 hours per week, with significant time spent managing student behavior, instructional planning, and administrative tasks. District leaders said the survey would help guide future improvements, including more tailored coaching and professional learning opportunities.

ENROLLMENT

Newark schools face enrollment decline

Newark Public Schools experienced its first enrollment decline in six years, with a total of 43,216 students enrolled for the 2025-26 school year, 764 fewer than the previous year. This shift contrasts sharply with the district's growth of nearly 20% since 2019, primarily driven by an increase in Hispanic students and multilingual learners. Superintendent Roger León noted that the decline in multilingual learners, which dropped to 11,879, may be due to students leaving the district or transitioning back to general education. The overall trend mirrors national patterns, where enrollment has decreased by approximately 1.3m students since the COVID-19 pandemic. León remarked: "That shows and proves that we have a high mobility rate." The future of Newark's enrollment will depend on its ability to attract and retain immigrant families, which have been crucial to its recent growth.

LEGISLATION

Illinois districts warn proposed unemployment expansion could add major new costs

Illinois lawmakers are considering legislation that would allow non-instructional school employees to collect unemployment benefits during summer breaks, as supporters argue the measure could improve financial stability and help schools retain critical staff. The proposed Unemployment Equity Act would extend benefits to paraprofessionals, bus drivers, cafeteria workers, secretaries, aides, and other school support staff who currently lose income when schools close for the summer. Eligible workers would receive up to 47% of their weekly earnings during the 10-to-11-week summer recess despite having “reasonable assurance” of returning to their jobs in the fall. Supporters, including major labor unions, said the proposal would address staffing shortages and improve retention in school districts struggling to fill support positions. Advocates also argued that private-sector workers performing similar jobs already qualify for unemployment benefits under comparable circumstances. However, school districts and education organizations raised concerns about the projected cost, which state estimates place between $138m and $176m annually, with public schools expected to bear most of the expense. Opponents said the state should provide dedicated funding rather than shifting the financial burden to local districts already facing budget pressures.

SAFETY AND SECURITY

Florida and Georgia schools pilot armed-response drone systems for campus safety

A small number of schools in Florida and Georgia are preparing to pilot remotely operated drones designed to confront active shooters, marking one of the newest and most controversial approaches to school safety technology. The drones, developed by Austin-based startup Campus Guardian Angel, are designed to respond within seconds of an emergency alert by emitting loud noises, firing nonlethal pepper balls, and physically colliding with suspects if necessary. Deltona High School in Florida plans to install 39 drones throughout its campus ahead of the 2026-27 school year, with operators controlling the devices remotely from Texas. Supporters argue the systems could dramatically reduce response times during school shootings, particularly before law enforcement arrives. Florida and Georgia lawmakers have each approved roughly $550,000 in grant funding to support pilot programs, while Louisiana legislators are considering similar measures. The U.S. House Appropriations Committee has also signaled support for allowing certain federal school safety grants to fund nonlethal drone systems.

SCHOOL TRANSPORT

Louisville schools stabilize bus service, but long-term risks remain

Jefferson County Public Schools says it has largely overcome the bus driver shortage that contributed to its 2023 transportation crisis, increasing its driver workforce by about 30% since then through higher pay, route restructuring, and stronger support for drivers. The district now employs 702 drivers, up from roughly 540 during the crisis, though still below the more than 1,000 drivers it had in 2015. Officials said improvements have helped shorten student ride times significantly, with all riders home by 6:30 p.m. on the first day of the current school year. JCPS boosted wages, introduced incentives for difficult routes, streamlined hiring, improved discipline policies, and redesigned routes to improve retention and morale. Full-time drivers now earn more than $30 per hour before incentives, with average annual pay around $53,300. Despite the progress, some transportation cuts remain in place, including reduced magnet school busing, and officials acknowledged future shortages remain possible because of competition from employers like UPS, Amazon, and FedEx. District leaders said the national school bus driver shortage continues to affect districts across the country, and warned JCPS could face renewed challenges if competing industries significantly raise pay.

CONSTRUCTION AND RENOVATION

Ann Arbor educators back housing project but question long-term financial impact on schools

School officials in Ann Arbor are warning that a newly approved $300m brownfield redevelopment plan could significantly reduce education funding over the coming decades, despite broad support for the housing and commercial project itself. Washtenaw County commissioners approved the incentives package for the 20-acre Ann Arbor South development, which includes plans for approximately 1,000 housing units, affordable apartments, retail space, a hotel, and restaurants. Under the agreement, more than $135m in Ann Arbor Public Schools and state education taxes, along with at least $27m tied to the Washtenaw Intermediate School District, would be captured over 30 years to support the project. Although much of the lost local revenue would be reimbursed through Michigan’s School Aid Fund under state law, school leaders said Ann Arbor Public Schools still faces roughly $12.3m in direct uncompensated losses tied to its sinking fund. Officials also warned that the statewide reimbursement process effectively redirects money away from Michigan’s broader education system. District leaders said they support the redevelopment goals and recognize the value of affordable housing and economic growth, but criticized the lack of involvement from school officials during negotiations.

INTERNATIONAL

France pushes schools to support growing esports industry

France’s Education Ministry is considering special school scheduling arrangements for top esports competitors as part of the government’s national “Esports 2026–2030” strategy, despite ongoing official efforts to curb excessive screen time among children and teenagers. The proposal would allow a limited number of high-performing competitive gamers to receive adjusted academic schedules similar to those already offered to elite athletes, enabling them to travel for tournaments and maintain intensive training programs. The initiative forms part of a broader government-backed effort to position France as a leading global esports market. The strategy also includes plans to introduce esports-related extracurricular activities and digital career training programs, while promoting awareness of professional opportunities and ethical concerns tied to the industry. The initiative has sparked concerns from educators and unions regarding screen addiction, and the growing influence of commercial gaming companies within schools and the normalization of competitive gaming in educational settings.
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