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):
School meals: $466 million. The National School Lunch Program and School Breakfast Program, funded through the U. S. Department of Agriculture, reimburse schools for a portion of meal costs with higher reimbursements for low-income kids. Under what is known as the Community Eligibility Provision, all students in 89% of Kentucky schools are eligible for free meals as a result.
Title I funds for low-income students: $274 million. Title 1 dollars support education for kids in high poverty schools. Funds can go to pay teachers, promote parent engagement, operate afterschool programs, fund mentoring and counseling, and provide other services. Over 70% of Kentucky schools are eligible for Title I funding.
IDEA funding for special education: $182 million. These funds help support the extra costs of special education and services for kids with disabilities, including preschool. Dollars can be used to hire and train special education teachers, provide assistive equipment and therapy services, and support specialized transportation, among other costs.
Title II funds for teacher training: $42 million. These grants can be used for professional development, training school leaders, advancing educators along career paths, and other uses that improve teacher quality.
Title IV funds for student support and academic enrichment: $35 million. These funds help support a well-rounded education, such as through art and music programs, career and technical education, and foreign languages; promote safety and health through interventions like mental health services and anti-bullying programs; and fund the effective use of technology.
Grants from the DOE to Kentucky districts total $546 million this year (not counting the $466 million in school meals funding, which comes from USDA), supporting the employment of approximately 4,546 teachers, counselors and other school employees across the commonwealth.
Because federal funding is especially targeted to kids with the greatest needs, it is most important in higher-poverty districts, most of which are rural in Kentucky. In 2023, federal funding made up 20% of all districts’ budgets but 52% of the budget in Fulton Independent, 45% in Middlesboro Independent, and 44% in Owsley County. See the map below for federal dollars, DOE monies with equivalent employment, and Title I funds by Kentucky school district.
