— by Dustin Pugel and Jason Bailey, Kentucky Policy —
The Trump administration is reportedly considering dismantling the federal Department of Education (DOE), while Congress is weighing cuts to the federal budget that could significantly reduce education funding. While the exact plans and their implications are not yet clear, these moves would result in sweeping harm in Kentucky, where federal funding is a substantial part of public school budgets and is particularly important in rural districts and to kids with the greatest needs.
Federal grants exceed $1 billion annually in Kentucky, and include funding for school meals, low-income students, children with disabilities, educator training and other essential services. Cutting these funds could mean the loss of teachers, the end of vital support for the most disadvantaged kids, new school lunch fees for parents, and reduced student success and well-being.
Federal funding fills gaps for critical needs
Federal grants currently make up one in five dollars in Kentucky school district budgets (one in seven not counting pandemic funding for COVID-related learning loss that expires this year). Of the remainder, the largest amounts include (in 2025):
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