Vermont education officials warn federal budget uncertainty could cut school funding, stall ESSER reimbursements and affect school meals

Anne Bordenaro, director of federal programs at the Vermont Agency of Education, told the House Education committee on May 20, 2025, that preliminary Title I allocations arrived on schedule but that other federal program awards remain delayed and uncertain because of continued federal budget negotiations and Office of Management and Budget (OMB) timing.

Bordenaro said the agency received preliminary Title I figures that were “similar to what we expected” and that the agency has loaded tentative, hold-harmless amounts (about 80% in most cases) into its grants-management system so local education agencies can begin building applications. She added that the agency expects final awards on July 1 and Oct. 1 but cautioned that other programs still lack timelines.

The nut of the committee’s concern is twofold: proposals in federal budget negotiations could change eligibility for programs such as Medicaid and SNAP, which states use to directly certify students for free or reduced-price school meals, and the U.S. Department of Education has been rejecting many requests to extend liquidation deadlines for ESSER grants, leaving local districts with unreimbursed expenses.

Bordenaro said Medicaid or SNAP eligibility changes could reduce the number of directly certified students, forcing schools to collect more…