Lawmakers restrict school fees, require no-fee graduation pathways and new notices; USBE and monitors outline compliance steps

The Utah school-fees framework changed in the 2025 legislative session. USBE school-fees staff Scott Crapo and Gina Smith briefed LEA finance and administrative staff on the practical implications for fee schedules, allowable charges and site-level practice.

Major changes required by law - Elimination of "general fees": fees that are charged to all students but do not provide a direct, specific benefit are no longer allowable. Fees must be directly related to the expense of a particular activity, course or program and may not subsidize otherwise-prohibited charges or normal instructional costs. - Fee-free graduation pathway: starting with school year 2026-27, any LEA that awards graduation credit must offer at least one option for each graduation requirement that does not require a fee or fee waiver (for example, offering an art-appreciation course as a no-fee option where a paid studio art course is available). - Elementary supply lists: supplies lists for elementary students must include notice language that items on the list "will be used during the regular school day, may be brought from home on a voluntary basis. Otherwise, they will be furnished by the school." School fees staff said this language must appear on all elementary supply lists. - Annual board approval cycle: fee schedules and fee policies must be approved by the local governing board. The approval deadline was moved to June 1 (beginning FY27) to allow time for legislative changes to be integrated before board action.

What can still be charged USBE outlined categories that remain chargeable for secondary students where appropriate: instructional equipment (items that become student property on course exit), instructional supplies (consumables necessary for a course), school trips/field trips, activity clothing, discretionary projects (optional student projects that exceed required competencies), competency remediation, AP/IB/concurrent-enrollment exam or credit fees, certain extracurricular activity fees, and specified application processing fees.

Fee waivers and accounting USBE described new accounting guidance and the phased replacement revenue distribution that addresses lost fee revenue from prior rules. The agency is updating chart-of-accounts guidance for FY26 reporting and will publish journal-entry examples. School-fees staff reminded LEAs that fee waivers should be tracked; if a LEA elects to supplement foregone fees from other unrestricted funds, they should use the appropriate supplement code that USBE will publish in the FY26 chart of accounts.

Monitoring and compliance Crapo and Smith said USBE continues fiscal monitoring and can require repayment for improperly charged fees. If LEAs do not respond to monitor requests, USBE has statutory remedies that include withholding state funds or suspending fee-authority, though staff said those measures are a last resort.

Next steps for LEAs - Review and revise fee schedules and board policies before the June 1 board approval deadline for FY27. - Ensure elementary supply lists include the statutory notice text. - Update accounting and reporting per forthcoming FY26 chart-of-accounts guidance and reach out to the school-fees team for review in advance of monitoring visits.