As the Trump administration moves to dismantle the U.S. Department of Education, state officials face growing uncertainty around the future of school funding in Maine. It’s hard to say exactly how much federal funding is on the line, but data suggests that hundreds of millions of dollars could be at risk.

On Thursday, news outlets reported on a draft executive order from President Trump that aims to abolish the Education Department, part of a larger goal to cut down what his administration considers government bloat, and a move that would require an act of Congress. Earlier in the week, the Bangor Daily News reported that the federal government had concluded that Maine violated Title IX following a political spat between Trump and Gov. Janet Mills over transgender student participation in school sports. The investigation lasted four days, and no state officials were consulted during the review, according to the Maine attorney general’s office.

Both of these developments could impact education funding, although it remains to be seen exactly how. Education Secretary Linda McMahon has said she sees the department’s dismantling as separate from federal funding streams that support low-income and special education students, and a notice sent to Maine officials regarding the Title IX violation did not specify whether funding would be cut.

Though federal funding makes up a small portion of the state’s K-12 school budgets, it finances initiatives like free school lunches and special education programs that support some of Maine’s most vulnerable student populations.

The potential cuts come during what is already a difficult period for Maine’s schools, as pandemic-era funds are expiring and schools are facing rising costs.

An analysis of federal funds flowing through the Maine Department of Education shows that awards — excluding pandemic-era funding spikes — averaged about $250 million a year over the past ten years.

Data from the 2024 fiscal year shows that funding directly from the U.S. Education Department made up about 65 percent of federal funding the state department received.

But as a question mark looms over federal funding, Maine officials explained that the way education dollars flow into the state is complex and hard to track.

Funding that flows through the state education department only represents a portion of federal education funds that move through Maine. Education programs, such as non-profit initiatives and universities, can also receive funds directly from federal sources like the U.S. Department of Education and the U.S. Department of Agriculture. 

Some education institutions also receive money through the state, but outside of the state education department. Entities like the University of Maine System, which is facing funding uncertainties, and the Maine Community College System receive federal dollars through their own funding channels within the state government.

To complicate things further, the amount spent each year may not match the amount in awarded grants. For instance, the state education department received $283.6 million in new federal grant awards in the 2024 fiscal year, but it spent $467 million, according to data from both the state Department of Administrative and Financial Services and the state education department in late February.

How is this possible? The answer speaks to the complex nature of federal funding schemes.

A year in a snapshot

A year’s worth of data from the state Department of Administrative and Financial Services (DAFS) — which provides oversight of Maine’s budget — offers a snapshot of what federal education funds look like in practice.

Some state agencies may have multi-year grants with balances to spend in addition to new federal grant awards, according to DAFS spokesperson Sharon Huntley, meaning the spending could outpace the total awarded in a given year. 

In the 2024 fiscal year, the state spent $4.8 billion of federal funds across all of its agencies, according to DAFS data from late February. Money that went through the state education department accounted for nearly ten percent of this spending. 

Of the $467 million in federal funds the state education department spent in the 2024 fiscal year, about $396 million — or eight percent of the total federal dollars — was spent on elementary and secondary education, according to additional data from the department.

However, millions of federal dollars also went to other education-related programs: In fiscal year 2024, the University of Maine System spent $8.4 million and the Maine Community College System spent $7.6 million in federal funds.

Federal trends

New federal grant awards sent to the state education department can change each fiscal year. 

Much of the funding is determined through formula grants — or awards based on a funding formula determined by Congress, said Chloe Teboe, a state education department spokesperson, explaining that the department then disburses federal funding to school administrative units based on census data and other ways of measuring poverty levels. 

Looking at just new grant awards in the last fiscal year, Teboe said that about $249 million was reserved for elementary and secondary school programs — a majority of the $283.6 million awarded. The remaining $34.6 million went toward a variety of programs, including adult education and preschool development.

Most of the state’s federal education funding comes through specific programs aimed at helping low-income and special education students. The state received $86.6 million through the National School Lunch Program, $65.5 million from Special Education Grants to States and $62.3 million from Title I grants.

Funding from the U.S. Education Department accounted for $183.2 million of all federal dollars received in the 2024 fiscal year. Teboe said that this funding went toward a wide array of programs: adult education, career and technical education, Individual with Disabilities Education Act (IDEA), programs through the Elementary and Secondary Education Act such as Title I, federally-required state assessments, education for homeless children or youth and preschool development. 

Federal funding makes up a small percentage of school budgets overall, with the majority of the funding coming from the state and from local property taxes. 

In the 2023-2024 school year, local and state funding amounted to more than $2.5 billion. Property taxes accounted for over $1.1 billion, with the state contributing $1.4 billion, according to the state department of education. This is compared to $467 million in federal education funds that were spent that year, or nearly 16 percent of school spending in the state.

‘Adding strain to an already underfunded system’

The Brunswick School District — one of Maine’s largest school districts in the Midcoast — explained that students with disabilities and low-income students would face “significant challenges” if federal funding were lost.

Brunswick Superintendent Phil Potenziano told The Maine Monitor that federal dollars are put toward “crucial services” implemented under the Individuals with Disabilities Education Act (IDEA). 

Loss of funding could impact a large public school student population — about 15 percent — across the country, he said, citing data from the National Center for Education Statistics.

“Without this funding, students with disabilities could lose access to inclusive classrooms and vital resources, putting families in a difficult position and adding strain to an already underfunded system,” he said.

Programs like Title I, he added, help schools access additional resources for low-income students like additional teachers, family engagement initiatives and mental health services. A rollback of funding in this federal program could lead to fewer teachers and resources for students who need them most, he said. 

Ultimately, Potenziano cautioned that the cost to support these vital programs could shift to the local level. This would place a larger tax burden on Brunswick residents who already face rising property taxes as their town revaluation wraps up this year. 

“Federal education funding is essential to providing equal opportunities for all students, regardless of ability or income level,” Potenziano said. “Losing these funds would have direct and lasting consequences for Brunswick’s schools, students, and families. Protecting these resources ensures that every child has the support they need to learn, grow, and succeed.”

Funding in flux

As spring budget season looms on the horizon, funding uncertainties continue to grow.

Typically, federal agencies share preliminary grant figures in the spring, Teboe said. Final allocations for states are sent out late spring, and installments are received on July 1. This timeline depends on federal appropriations and the budget approval process, which is still in flux.

In addition to federal funding woes, Maine is facing what lawmakers describe as a more restrictive state budget this year.

Sen. Joe Rafferty (D-York), chairman of the Education and Cultural Affairs Committee, said that he and his colleagues are still committed to funding public school initiatives.

“It’s no secret that we’re looking at a tight budget year, but my priority as Senate chair of the Education Committee is to make sure that we are smartly investing in the kids and teachers who will keep Maine strong,” Rafferty wrote in a statement to The Maine Monitor. “It’s good for each Mainer who grows up here, and it’s good for our entire state’s economy and way of life.”

This story was originally published by The Maine Monitor, a nonprofit civic news organization. To get regular coverage from the Monitor, sign up for a free Monitor newsletter here.