Freedom in Education Policy Brief

Issued by: Freedom in Education Media Team
Coverage Dates: September 15–October 20, 2025

This month’s brief examines the declining efficacy of America’s public education system amid uncertainty, dissatisfaction, and shifting priorities. Recent events—including the ongoing federal government shutdown, debates over school choice, and historically low public confidence in K–12 education—highlight a rising sense of instability. As policymakers contend with financial and ideological divisions, more states and parents are seeking alternative education options in a rapidly evolving educational landscape.

DEPARTMENT OF EDUCATION (DOE) / FEDERAL NEWS

The Federal Government Shutdown and Its Effects

• On Wednesday, October 1, the federal government shut down due to a partisan disagreement over funding the new fiscal year. This shutdown is currently the second-longest in American history, lasting 23 days at the time of writing.

• The Senate failed to pass either competing measure to pay “at least some federal workers,” according to NPR.

• Although K-12 schools primarily rely on local and state budgets, 14% of primary and secondary education funding will be affected by withheld federal funds. The impact varies by location and demographics. Programs such as school meal reimbursements or services for children of military families have backup or contingency plans.

Impact Aid Program:

• Over 1,000 school districts qualify for the Impact Aid program, established in 1950 to offset lost local tax revenue from nontaxable federal land, including military bases, tribal lands, national parks, and other federal properties.

• The program is vulnerable during funding droughts such as the current shutdown. DOE’s office of communication and outreach and the office of elementary and secondary education have faced cuts. All 15 employees managing Impact Aid received RIF notices, though whether layoffs occur is currently held up in federal court.

DOE Leadership & Policy:

• Secretary Linda McMahon has used the shutdown to advocate for the wholesale elimination of the Department of Education, a position also supported by President Trump.

• As reported by The Hill, McMahon stated on social media:

“The Democrat government shutdown has forced agencies to evaluate what federal responsibilities are truly critical for the American people. Two weeks in, millions of American students are still going to school, teachers are getting paid, and schools are operating as normal. It confirms what the President has said: the federal Department of Education is unnecessary, and we should return education to the states.”

Charter Schools Expansion

• On September 24, the DOE released $500 million to the Charter Schools Program, described as “the largest investment in the program ever” in the department’s press release.

• Secretary McMahon emphasized the failures of a “one-size-fits-all” system and advocated for school choice.

• Six programs make up the overall initiative: State Entity, Charter School Management Organization, Developer, State Facilities, Credit Enhancement, and Model Dissemination and Development grants.

Grant Breakdown:

• State Entity: $293.7M to six states over five years to create or expand charter schools.

• Model Development & Dissemination: $27.6M across 12 grants over five years for comprehensive tools and resources.

• Charter Management Organization: $263M awarded to 22 grantees to expand 147 charter schools nationwide.

• Developer, State Facilities, Credit Enhancement Grants: remaining funds support infrastructure and programmatic growth.

• Special Focus: $51.7M supports State Entity grantees emphasizing civics, career and technical education (CTE), and STEM.

History Grants

• Over $153M in grants are being distributed primarily to universities and nonprofits focused on American history and civics education.

• While K-12 education is not the primary target, funding supports educational resources, school/community events “fostering civil discourse on public issues,” and seminar-based instruction.

IN THE NEWS

Gallup Polls Reflect Dissatisfaction with the U.S. Education System

• Only 35% of Americans expressed satisfaction with K-12 education, down from 43% last year, according to Gallup.

• Historically, satisfaction has hovered around 45%, making this ten-point decline significant.

• Only 25% believe K-12 schools are headed in the right direction, with 73% answering negatively.

Foundational Reasons for Dissatisfaction:

• Declining NAEP scores since 2019 reveal many students failing to reach basic proficiency.

The New York Times’ “The Daily”

• This transcript examines why school choice movements have gained traction.

• COVID-19 acted as a “catalyst,” with virtual learning increasing parental engagement in curriculum oversight.

• Parents raised concerns over academic rigor, safety, and content (e.g., social justice topics) leading to widespread interest in alternative education options.

Arizona Case Study: K-12 Dive

• Arizona has implemented Universal Empowerment Scholarship Accounts (ESAs), offering school choice vouchers that bypass many income restrictions and red tape.

• Since 2022, ESA enrollment exceeds 92,000 students, driven by “switchers” leaving public schools.

• Demographics: ~57% of ESA recipients are middle-income.

Sources: K-12 Dive

STATES TO WATCH

In Kentucky, the Supreme Court recently heard a case addressing equity between private/charter schools and public schools. Plaintiffs warned that diverting funds to alternative options could “erode” local control, while advocates argue charter schools are “common” due to being tuition-free, universal, and generally accommodating.

In Utah, a District Court ruled the Universal ESA program unconstitutional, citing language regarding “common schools.” The Utah Fits All program, serving about 10,000 students, has filed an appeal, which is currently moving through the Supreme Court.

In Wyoming, the Steamboat Legacy Scholarship, a private school voucher program, was challenged by nine parents claiming it violates a “no-aid” provision in the state constitution. The scholarship distributes $7,000 per student for tuition, tutoring, and other educational expenses. A legal injunction is currently in place, preventing fund distribution.

SCHOOL CHOICE RESOURCE SPOTLIGHT

In North Carolina, Parents for Educational Freedom in NC (PEFNC) advocates for school choice policies, including the Opportunity Scholarship and ESA+ for special needs students. They focus on expanding private school options, offering online resources, and maintaining a Parent Liaison Team for one-on-one family outreach. Learn more: pefnc.org.

In Wisconsin, School Choice Wisconsin (SCW) defends long-standing private and religious school choice routes. Their advocacy ensures programs remain compliant and protects them from legal challenges. SCW also offers a help desk and step-by-step guidance for parents navigating enrollment. Learn more: schoolchoicewi.org.

In California, Californians for School Choice works to introduce a statewide Educational Savings Account (ESA) for all K-12 students. The organization provides online petitions, action alerts, and volunteer opportunities to qualify the ballot initiative. Learn more: californiaschoolchoice.org.

📧 Contact: press@freedomined.org