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Superintendent's Community Update: How Changes in Federal Funding Could Impact AUSD
Dear AUSD Community: 
 
Several community members have written to me lately asking how recent changes to funding for federal education and social programs might impact Alameda Unified. While we are still analyzing the details and timing of these developments, we do know that two changes --President Trump’s so-called “One Big Beautiful Bill Act” and a 45-day freeze on federal grant funds -- could have far-reaching effects on K–12 public education across the country and in our own district. Cuts to social programs could also affect community partners who provide much-needed services to our students.
 
Today's letter outlines our current understanding of what has already changed and what we are still watching.
 
The freeze on $5-7 billion in national K-12 grant funding  
 
Our understanding is that these funds are under “federal review” to determine  whether they will be released as authorized by Congress or permanently withdrawn. A permanent cancellation of the funding could result in AUSD losing:
  • $186K in federal Title IIA funds to support teacher professional development. This money currently supports additional staffing and support for work at Love, Ruby Bridges, Paden, and Wood. 
  • $87K in federal Title III funds to support English Language Learners from federal Title III funds. 
  • $85,000 in federal Title IV funds that the district budgeted to provide professional development in Culturally and Linguistically Responsive teaching, which helps educators learn to understand and leverage the strengths and perspectives of students from diverse backgrounds.   
In the meantime, we will continue to advocate on behalf of our students, consult with other districts and education finance experts, and monitor these changing conditions. We are also beginning to draft contingency plans so that we are prepared if we do indeed lose this funding. 
 
The "One Big Beautiful Bill Act” 
 
Signed by President Trump on July 4, the "One Big Beauitful Bill" includes hundreds of provisions. Those of particular concern to school districts include:
 
  • Cuts to Medicaid  
    • The bill cuts Medicaid spending deeply through 2034. While Medicaid is the third-largest payer of school-based health services, AUSD does not qualify for a notable amount based on our demographics. Rather, funding for our mental health and wellness services comes from the state, federal special education grants, and other discretionary sources. We do not anticipate any immediate fiscal impact on AUSD, though these cuts could impact community partners who provide services to AUSD students and families.
    • We are also very concerned for colleagues and families in districts serving higher percentages of lower income families for whom these cuts may have a significant impact. 
 
  • Cuts to the Supplemental Nutrition Assistance Program (SNAP) 
    • Formerly known as “food stamps,” SNAP is the largest federal nutrition assistance program and allows recipients to purchase food using an Electronic Benefit Transfer (EBT). The new bill cuts $186 billion from the program through 2034. Though not administered by the school district, cuts to broader food assistance programs could have a notable impact on individual families in our community. We are committed to supporting those families in whatever way we can. 
    • Currently, the SNAP program is 100% federally funded. The new bill, however, requires states to pay 5% of the costs of the SNAP program by 2028. This could have an impact on the overall state budget, and key aspects of state education funding further down the line. 
 
  •  Voucher-style tax credit program for private schools 
    •  Earlier versions of the bill included mandatory nationwide vouchers, but the final law allows states to choose whether to opt in to federal tax-credit scholarships for private K–12 education.  
    • As a result, California currently remains unaffected by this change in federal law. State-level action would be the only pathway, so California lawmakers would have to choose to create a tax-credit scholarship law, and only then would the federal credit become available to Californians. We see no immediate change or impact from this change. 
To be clear: while the immediate fiscal impact on AUSD remains somewhat mild compared to other school districts, a loss of even the approximately $360,000 referenced above (out of an overall revenue of  $165 million annually) would impact students who need additional support, particularly at our schools with the highest concentration of that need. Additionally, the potential impact of these cuts on external and community partners could also create an indirect, but still very tangible, impact on services to AUSD students and families. 
 
Despite policy changes and their potential impact, large or small, our dedication to a high-quality educational experience for all our students remains unchanged, and we will bring creativity and commitment to the table regardless of what comes next.  We will continue to monitor all aspects of these changes, and, along with our Board of Education, stay engaged with representatives and colleagues across the county and state. And we will continue to keep our community fully informed of all developments and our ongoing process to respond to them with as much skill and care as possible.