Proposed 2025 Federal Education Budget

August 16, 2024

The Every Student Succeeds Act (ESSA) is the most recent version of the Elementary and Secondary Education Act (ESEA) which was passed in 1965. It provides 12 formula-allocated grant programs and 21 competitive grant programs. Formula programs are based on certain criteria for recipient students and the funds are allocated based on the number meeting those requirements.

As we return to schools, ESSA is one of the most critical budget sources for purchasing products and services. The funding programs in ESSA comprise 8-10% of a district’s budget. Recipients that meet the criteria of each ESSA program have the discretion to spend the funds to meet the needs of their specific students.

ESSA funds are distributed on the federal budget calendar – October 1 through September 30. The 2025 budget will be sent to schools beginning this October 1. Below are the proposed budget highlights. But remember, this must be approved by Congress!

WHAT DOES THAT MEAN FOR YOU?

As you look at these proposed numbers, you can see that the 2025 budget has very modest increases and some decreases over the 2024 budget. Schools may be overly cautious to spend the money, especially after the American Rescue Plan’s ESSER funds expire September 30. They may be reluctant to purchase large new programs or services. They will have the money for maintenance of existing programs and subscription renewals. There may be opportunities for upselling your offering. But unless they see great value-add to help improve student achievement or teacher quality, they may be reluctant to purchase something new. Also, if you have a strategy to help them see a clear path to ROI, that would be a win-win.