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USA
2nd July 2026
 

THE HOT STORY

Education groups sue Trump administration over withheld federal funding

A coalition of education advocacy groups, including the National Center for Learning Disabilities, has sued the Trump administration, alleging the Office of Management and Budget and the U.S. Department of Education unlawfully withheld congressionally appropriated funding for the Institute of Education Sciences. The lawsuit argues the administration has prevented the agency from spending funds approved by Congress, placing $793m for education research programs at risk of expiring on September 30, alongside $50m for the Comprehensive Centers program and additional funding for the Education Innovation and Research program, which expires later in the year. Plaintiffs say the funding freeze could have a devastating impact on education research, teacher support, and programs serving students with learning disabilities and high-need communities, while the Education Department said it remains committed to meeting its statutory obligations and supporting high-quality research.

LEGAL

Federal agencies threaten Kansas City, Kansas Schools over trans student policies

The U.S. Departments of Education and Justice have threatened legal action and the potential loss of federal funding against Kansas City, Kansas Public Schools (KCKPS), alleging the district violated the Family Educational Rights and Privacy Act by failing to notify parents when students request different names or pronouns at school. Federal officials say KCKPS has refused to implement required corrective measures, including changes to its policies on parental access to student records, transgender students' participation in sports, and restroom access, while the district continues to dispute the findings, maintaining that its policies comply with state and federal law. The action comes as the Trump administration expands enforcement of parental rights laws and follows separate calls by Kansas lawmakers for an investigation into the district's handling of transgender student policies.

FINANCE

San Francisco USD achieves budget milestone

San Francisco USD has achieved a significant milestone by self-certifying a positive budget, marking a turning point in its fiscal stabilization efforts. The district's newly approved $1.36bn budget will fund operations for the 2026-27 academic year and includes provisions for paid pregnancy leave and financial assistance against potential federal funding cuts. The budget also incorporates a new $183m labor contract with the teachers' union, which recently ended a strike for better pay and benefits. SFUSD is now focused on allocating $12.5m to support students and staff, with proposals aimed at reducing chronic absenteeism and enhancing classroom support. Board President Phil Kim emphasized the importance of transparency and accountability in ensuring that every dollar spent improves student outcomes.

Budget pressures cloud prospects for Leon County teacher raises

Leon County Schools and the Leon Classroom Teachers Association have opened contract negotiations with both sides describing the first session as constructive, as discussions focus on teacher pay, retention, and working conditions. The Florida district has received $1.6m in state funding for raises for teachers with at least 10 years of Florida classroom experience, up from $1m last year, but union leaders argue the funding is insufficient to address salary compression. District officials also warned that an 8% increase in health insurance costs, higher utility expenses, and a projected $3.8m decline in state funding will constrain the budget, while a proposed tax increase expected to raise $30m annually could provide additional support for teacher salaries, school programs, and safety initiatives if approved.

DISTRICTS

Dallas ISD bets state-funded calendar expansion will boost student achievement

Dallas ISD will begin the school year two weeks early at 20 campuses, adding 15 instructional days and five Saturday sessions for students at 13 elementary schools and sixth graders at seven middle schools as part of Texas' state-funded Additional Days School Year program. The district aims to reduce summer learning loss through additional reading and math instruction, alongside enrichment activities designed to strengthen student engagement and relationships. The initiative targets campuses based on academic performance and student need, while building on a state program expanded in 2025 to include middle school grades. Although research on summer learning loss remains mixed, educators say structured summer instruction can improve academic outcomes when implemented consistently, with other Texas districts reporting encouraging gains at some participating schools after adopting similar extended calendars.

Iowa City school board appoints Amy Kortemeyer as interim superintendent

The Iowa City Community School District has unanimously approved Amy Kortemeyer as interim superintendent on a one-year contract, effective July 2, while the district searches for a permanent leader. Kortemeyer previously served in several senior leadership roles within the district before becoming superintendent of the Linn-Mar Community School District, where she is retiring after three years. The board also unanimously accepted the resignation of Deputy Superintendent Chace Ramey, who has been appointed interim superintendent of the Council Bluffs Community School District.

Philadelphia audit highlights weaknesses in school district inventory controls

A Philadelphia City Controller audit found that 96 of 147 sampled taxpayer-funded assets, valued at nearly $300,000, could not be located across 10 public schools, including computers, Smartboards, pianos, virtual reality headsets, and other equipment. While the School District of Philadelphia acknowledged the need to improve inventory management and has introduced corrective measures, officials emphasized the audit found no material financial deficiencies or evidence of widespread theft, noting that some items may have been misrecorded, relocated, or disposed of without updated records. The audit also identified more than 200 inactive student activity fund accounts holding nearly $200,000, and more than $2m in outstanding employee termination payments.

GOVERNANCE

California state budget transfers authority from elected schools superintendent

California has approved a sweeping overhaul of its education governance system that transfers most authority from the elected state superintendent of public instruction to a governor-appointed education commissioner, beginning in January, as part of the newly enacted state budget. The change gives the governor greater control over the state's $149bn public education system, including education policy, budget implementation, grants, and oversight for more than 6m preschool through 12th-grade students. Supporters argue the move will improve accountability and streamline decision-making, while critics, including teacher unions and both candidates for state superintendent, contend it weakens an independently elected office, reduces voter oversight, and concentrates too much authority within the governor's office.

Court order preserves Memphis-Shelby County local control ahead of new school year

A federal judge has temporarily blocked Tennessee's newly created oversight board from assuming control of Memphis-Shelby County Schools, preserving the district's existing authority while a legal challenge proceeds. District officials argued the takeover, which took effect July 1, could disrupt preparations for the 2026-27 school year by delaying approval of contracts and emergency purchases, including critical HVAC repairs, transportation services, and technology systems. The new nine-member oversight board would have authority to approve purchases exceeding $50,000 and could veto the district's proposed $1.7bn budget, but the temporary restraining order maintains the status quo until the court considers the case further.

EARLY YEARS

Green Bay schools see kindergarten reading success

New reading data from Green Bay Area Public Schools shows significant literacy gains among the district's youngest students two years after Wisconsin implemented its science-based reading law, with virtually all kindergarten students finishing the school year reading at or above grade level. However, reading performance declines steadily in higher grades, with 57% of fifth graders ending the year below grade level and only about two-thirds of elementary students overall meeting grade-level reading expectations. The data also revealed substantial disparities between schools, with lower-performing campuses generally serving higher proportions of economically disadvantaged students and English language learners. District officials said the AI-powered Lexia reading platform is one of several instructional tools supporting personalized interventions under Wisconsin's literacy reforms, while emphasizing that improving reading outcomes, particularly for older students, will require sustained instruction, targeted support, and continued teacher training over several years.

NUTRITION

Lawmakers propose reviving Local Foods for Schools program

A bipartisan group of U.S. lawmakers has introduced the Local Foods for Healthy Schools Act, legislation that would restore the Local Foods for Schools (LFS) program to help schools purchase locally produced food for student meal programs. The bill would revive a federal initiative established during the Biden administration and discontinued by the U.S. Department of Agriculture last year, providing schools with funding to expand fresh, locally sourced, and scratch-made meal options as they prepare for stricter school nutrition standards. Separately, California announced it has served approximately 3.5bn free breakfasts and lunches since launching its universal free school meals program in the 2022-23 school year, with state officials highlighting increased student participation and improved access to nutritious meals.

LITERACY

Tennessee emerges as national model for post-pandemic education recovery

Tennessee is emerging as a national leader in improving student achievement through a back-to-basics approach that combines phonics-based reading instruction, intensive tutoring, mandatory summer school for struggling readers, and closer monitoring of student progress. Between 2022 and 2025, the state ranked second among participating states for math improvement and fourth for reading gains, while rising from near the bottom of national rankings in 2009 to 17th overall and first in the South on a key national assessment. State officials attribute the progress to a coordinated strategy that includes high-quality instructional materials, teacher training, literacy coaches, and legislation requiring third graders who fall below reading proficiency to demonstrate sufficient progress before advancing. Since 2021, about one in four third graders has participated in summer learning, tutoring, or both, with the number of students retained after third grade declining as reading performance continues to improve.

INTERNATIONAL

Japan to overhaul education rules for students with prolonged school absences

Japan's Ministry of Education plans to introduce a flexible "special curriculum" from the 2030 school year to support elementary and junior high school students who struggle to attend school, allowing them to revisit material from earlier grades, learn at their own pace, and be assessed using individualized academic goals. The program, which has received broad backing from a government advisory panel, is designed to improve motivation and self-esteem by enabling schools to evaluate students on both learning outcomes and engagement, rather than solely against the standard curriculum for their enrolled grade. The initiative comes as the number of students refusing to attend school continues to rise, although eligibility will be limited to students using approved support centers, while privately educated or homeschooled children will not qualify. Gifted elementary and junior high school students will also be eligible for the flexible curriculum, allowing them to take classes at high schools and universities.
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