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Board warned of federal funding uncertainty as district budgets federal programs cautiously

3805961 · June 13, 2025
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Summary

White County officials told the board June 12 that federal program allocations (Title I, II, IV, IDEA) match last year’s amounts but state guidance is to “pace” spending monthly; the district also lost eligibility for Title V this year due to census-based low‑income counts.

White County school administrators told the Board of Education on June 12 that federal program totals for 2025–26 currently match last year’s allocations, but guidance from state and federal officials is urging districts to “spend slowly” and pace expenditures monthly while allocations remain uncertain.

Sheila Felton, the district’s federal programs supervisor, told the board the state has provided the same dollar amounts as last year to allow budgeting to begin, but districts were advised to spend monthly and be cautious because final allocations may change. Felton said some federal titles — including Title II and Title IV — face uncertainty and could be reduced or eliminated in future allocations.

Why it matters: Federal funds support interventions, instructional coaches and special education services. Felton said most of the federal‑program budget is for Title I (intervention teachers and teaching assistants) and for instructional coaches; the district also receives IDEA Part B and a federally funded preschool program. The loss of Title V eligibility this year — tied to updated low‑income counts from the 2020 census — removes a funding category the district used previously to support instructional coaching.

Board discussion and direction: Board members and staff agreed to treat the current numbers as interim and to avoid making recurring hiring commitments that rely solely on uncertain federal funds. Staff recommended adding contingencies to the general fund budget in case federal funds are reduced, since ongoing positions funded temporarily by federal grants would otherwise fall to general‑purpose funds.

Next steps: The district will track monthly federal allocations as the state finalizes awards and will present updates to the board. The board was asked to keep the funding uncertainty in mind when adopting next year’s budget so any reductions can be managed without service interruptions.