OSPI, ESD leaders warn federal moves could disrupt school funding and services

TJ Kelly, chief financial officer at the Office of Superintendent of Public Instruction, and Susan Lathrop, OSPI Assistant Superintendent for Educator Growth and Development, briefed the Early Learning & K–12 Education Committee on possible effects of recent federal executive orders, "dear colleague" letters and other federal actions on Washington public schools.

Kelly told the committee that for the 2023–24 school year total federal revenue to Washington school districts was about $1.9 billion, but that figure included remaining COVID relief funds. Excluding that tail, federal revenue was roughly $1.4 billion—about 7 percent of total school district revenue for 2023–24. Major federal program totals cited in the presentation included the National School Lunch Program ($361 million), Title I ($310 million), special education grants ($275 million) and impact aid ($120 million).

Why it matters: Federal funds support staff and services in small and rural districts and pay for school meals, special education, Title I services and other programs. OSPI and ESD witnesses said interruptions to federal administrative capacity—particularly the grants claim system known as G5—or mid‑year changes to grant conditions could create cash‑flow problems and force local districts to make immediate program…