U.S. School Funding Faces Uncertainty Amid New Federally Subsidized Tax-Credit Scholarships and Enrollment Declines

Federal, state, and local education budgets are under pressure for the 2026-27 school year, with nearly all K-12 students potentially eligible for new federally subsidized tax-credit scholarships. States must decide by year-end whether to implement these scholarships, which could allow public schools to benefit from the funds. Additionally, K-12 enrollment is projected to decline, further complicating school finance.