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The clock is ticking for some of the nation’s most vulnerable school districts as delayed federal payments amid the government shutdown push them toward financial and operational breaking points. In Oglala Lakota County School District, which serves students across the Pine Ridge Reservation in one of the country鈥檚 most economically challenged counties, Superintendent Connie Kaltenbach is grappling with what she calls “a crisis situation.”

The South Dakota district has already frozen new classified hires, slashed travel and cut overall spending. But without an expected $18 million in federal Impact Aid funding, she warns, “I have no viable path forward to maintain school operations.” Unwilling to furlough or lay off essential staff 鈥� a move that would simultaneously derail educational continuity and destabilize a community where the school system is a key employer 鈥� the district is attempting to secure a loan to bridge the gap until Impact Aid arrives.

In upstate New York near the U.S. Army鈥檚 Fort Drum, Indian River Central School District Superintendent Troy Decker is dealing with similar problems. The 鈥渨ithholding of Impact Aid, together with military and civilian pay reductions, furloughs and outright job losses has created a noticeable anxiety in our community,鈥� he says. All that, combined with uncertainty around state and federal education budgets, could lead to serious cuts in next year鈥檚 programs and increased class sizes.

The districts are among about 1,100 nationwide, serving 8 million students, that rely on Impact Aid to offset the lost local revenue and increased costs associated with nontaxable federal land, such as military installations; Indian Trust, Treaty, and Alaska Native lands; national parks; and other federal sites. The initial payments typically go out in October, after the start of the federal fiscal year. But the shutdown has stalled all payments and closed the office supporting these districts.

The National Association of Federally Impacted Schools (NAFIS) recently surveyed its members on the effects of the federal government shutdown, now in its fifth week. The response is clear: The situation is urgent, with districts across the country scrambling to meet payroll, maintain programs, and keep schools open.

Unlike most districts, these schools cannot rely on local property taxes for funding. For some, Impact Aid makes up more than half of the budget, covering teacher salaries, special education services, utilities and essential classroom programs.

Delays in federal payments can force these districts 鈥� many serving Native, military-connected, and rural students already facing inequities 鈥� to make difficult decisions. Across the country, districts are drawing on reserves, implementing spending and hiring freezes, and putting infrastructure projects on hold. 

A Wyoming district has eliminated tutoring services, while one in Wisconsin is considering cuts to after-school programming and an Oklahoma district warns that paraprofessionals will be the first to go if payments do not arrive soon. Lonnie Morin, district clerk at Arlee Joint School District in Montana, said her district has stopped all discretionary spending 鈥� including supplies, maintenance and repairs 鈥� and “anything else that is not absolutely necessary to run the school.”

Making matters worse, most staff members in the U.S. Department of Education鈥檚 Impact Aid Program Office have received reduction-in-force notices. These analysts manage payments and provide technical guidance. While the RIF is currently blocked by court order, if it moves forward, their absence could further delay funding once the shutdown ends.

Marking its 75^th anniversary this year, Impact Aid is the nation鈥檚 oldest K-12 federal education program and has earned strong bipartisan support. It is a cornerstone of the federal government鈥檚 responsibility to the communities where it holds land.

 As Jerrod Wheeler, Superintendent of Knob Noster Public Schools in Missouri says, 鈥淚mpact Aid absolutely must be protected for the sake of our military connected students and for the sake of military readiness and retention.鈥� Bryce Anderson, Superintendent of Page Unified School District in Arizona adds, 鈥淢y strongest desire is that political division does not negatively impact communities like ours, [reliant on] the federal government’s promise to pay its fair share for untaxed treaty land.鈥�

Every day of delay forces districts to make impossible choices: cutting programs, laying off staff and leaving children without the resources they need. The federal government must act now to reinstate Impact Aid payments and staff, honoring its promise to support the districts that serve our nation鈥檚 military, tribal, and federal lands 鈥� and the students whose futures depend on it.

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