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USA
22nd July 2026
 

THE HOT STORY

Rising education spending has not translated into higher teacher pay

U.S. public schools generated a record $1tn in revenue during the 2023–24 school year, reflecting a decade of rising education funding despite declining enrollment, according to new federal data. Inflation-adjusted funding increased 22% over the past 10 years while student enrollment fell by about 500,000, with significant variation in per-pupil spending across states, ranging from more than $30,000 in New York and Washington, D.C., to around $11,000–$12,000 in several lower-spending states. The data indicates that increased funding has largely been absorbed by expanding school staffing levels and rising employee benefit costs rather than higher teacher salaries, leaving teachers with less inflation-adjusted purchasing power than a decade ago. It also notes that, within states and districts, higher-poverty schools generally receive more funding than wealthier schools, while concluding that future education policy should focus on how resources are allocated rather than simply increasing overall spending, as student outcomes remain uneven despite record investment.

FINANCE

Michigan enacts $22.9bn education budget with record school funding

Michigan Gov. Gretchen Whitmer has signed a $22.9bn education budget into law, her final education spending plan as governor, highlighting investments in universal pre-K, free school meals, free community college, literacy initiatives, and a record per-pupil funding allocation of $10,300. The budget provides $19.8bn for K-12 education and $3.1bn for universities and colleges, while introducing a new weighted funding formula that directs nearly $1.7bn in additional support to economically disadvantaged students and English learners. The budget also continues free school breakfast and lunch programs, allocates more than $300m for student mental health and school safety, and includes $200m in school safety funding tied to cooperation requirements during investigations into school mass casualty events. While lawmakers praised the bipartisan agreement, critics questioned the budget’s accounting assumptions, arguing it understates total spending by projecting a nearly $2bn reduction in federal education funding that may not materialize. 

DISTRICTS

San Francisco's ethnic studies course sparks legal battle

The ongoing dispute regarding San Francisco USD's required ethnic studies course has escalated into a legal battle. The Friends of Lowell Foundation, a nonprofit advocating for merit-based admissions, filed a lawsuit claiming that district officials violated public meeting laws when they approved a new curriculum. "This lawsuit is about process, because process is how the public keeps its schools accountable," the organization said. The lawsuit seeks to declare the school board's April 28 vote "null and void," arguing that the ethnic studies curriculum should have been voted on separately. Despite the controversy, district officials maintain that the curriculum updates are part of a broader modernization effort. The year-long ethnic studies course is now a graduation requirement for students starting with the class of 2029. Concerns have been raised about the course's impact on students' elective options, as well as the transparency of the adoption process.

Interim Superintendent takes helm at Iowa City Schools

Amy Kortemeyer has returned as interim superintendent of the Iowa City Community School District on a one-year contract, pledging to provide stable leadership while the district searches for a permanent superintendent and works through significant financial challenges. Her priorities include strengthening financial oversight, improving transparency, supporting students and staff, and helping the school board evaluate long-term fiscal sustainability, including a review of elementary school capacity, although no closure decisions have been made. The district is addressing years of financial mismanagement that have led to $7.5m in budget cuts for the 2026–27 school year, additional anticipated reductions, delayed audits, multiple material weaknesses in financial controls, and the revocation of its Moody’s bond rating. Officials aim to bring overdue audits back on schedule, while continuing efforts to improve cash flow, strengthen internal controls, and restore financial stability for the district’s more than 14,000 students.

Dublin school board selects internal leader after Superintendent’s resignation

The Dublin City Schools Board of Education has appointed Deputy Superintendent Jennifer Schwanke as the district’s next superintendent, effective August 1, following the resignation of Superintendent John Marschhausen, who is stepping down on July 31 after five years in the role. Schwanke, a nearly 30-year district veteran, will oversee the district’s nearly 17,000 students and lead implementation of the recently approved attendance boundary changes without the need for an external superintendent search. Marschhausen’s departure follows months of community opposition to the district’s redistricting process, which culminated in the approval of new attendance boundaries that will take effect for the 2027–28 school year. While his resignation letter did not cite a reason for leaving, the board praised his leadership, highlighting accomplishments including the Journey 2030 strategic plan, new school construction, and the completion of the redistricting process. 

Nine new principals named as Newark Schools refreshes leadership team

Newark Public Schools has announced a broad leadership reshuffle ahead of the 2026–27 school year, appointing nine new principals, five new directors, and five new assistant superintendents as the district replaces retiring senior leaders and continues its strategy of developing leadership from within. Seven of the new principals will lead elementary schools, while two will oversee high schools, including the district’s new New Media High School. The appointments come as New Jersey’s largest school district prepares to address key priorities, including improving student achievement, integrating artificial intelligence into classrooms, implementing a statewide school cellphone ban, upgrading aging facilities, and responding to increased scrutiny of district spending. Most of the new leaders are longtime district educators or administrators, reflecting Newark’s continued emphasis on creating career pathways from the classroom to school leadership. 

POLICY

Washington eyes tougher reporting rules for teacher misconduct allegations

Washington Superintendent of Public Instruction Chris Reykdal has proposed a series of policy changes to strengthen the state’s response to teacher misconduct, including expanding the Office of Superintendent of Public Instruction’s authority to initiate investigations when school districts fail to report allegations. The proposals would also require districts to report suspected professional misconduct within 30 days, or within 10 days if disciplinary action has been taken, while allowing the agency to temporarily restrict teaching licenses during investigations. Additional recommendations include broadening the legal definition of a student, clarifying prohibited digital communication between educators and students, allowing Washington to act more quickly on misconduct findings from other states, and giving the agency clearer authority to reject voluntary license surrenders that could otherwise end investigations. The proposals, prompted by concerns over gaps in oversight and delayed reporting, are expected to be considered by the Professional Educator Standards Board in September.

TECHNOLOGY

Florida eyes statewide AI safeguards for K-12 school districts

The Florida Department of Education is considering requiring all school districts to incorporate artificial intelligence (AI) policies into their internet safety guidelines, with a workshop on the proposed rule scheduled for August 5. The proposal is intended to reinforce compliance with federal student privacy protections under the Family Educational Rights and Privacy Act (FERPA) and existing Florida laws restricting the collection and sharing of students’ personal data by K-12 online platforms. The move comes after the Florida Legislature failed to pass a broader AI Bill of Rights that would have expanded parental control over children’s interactions with AI chatbots, limited state contracts with AI companies linked to foreign adversaries, and established protections against the unauthorized use of people’s names, images, and likenesses.

GRADING

South Carolina becomes first state to curb no-zero grading policies

South Carolina has become the first U.S. state to restrict no-zero grading policies, allowing teachers to once again assign a zero when students fail to submit work. The new law, effective July 1, prohibits school districts from requiring minimum grades and ties compliance to state classroom funding, reflecting growing debate over whether grade floors accurately measure student performance. While supporters argue the change restores grading integrity, education researchers say the broader problem lies in the traditional 100-point grading scale, where a single zero can disproportionately lower a student's average. Experts advocate longer-term reforms, including separating academic achievement from work habits on report cards and replacing percentage-based grading with simpler four- or five-point scales to create a more balanced assessment system.

CONSTRUCTION AND RENOVATION

Paradise Elementary School to reopen eight years after Camp Fire

A newly rebuilt Paradise Elementary School in California will reopen on August 12, nearly eight years after the Camp Fire destroyed the original campus, welcoming more than 220 students as the community continues its recovery. District officials said the new school was needed to accommodate growing enrollment, with nearby schools already operating at capacity as more families return to Paradise. The $31m project was funded primarily through Measure Y, which covered 85% of construction costs, with the first phase set to be completed before the new school year. District leaders said additional buildings are planned, although future construction will depend on securing further state funding.

HIGHER EDUCATION

Federal R&D priorities pivot from universities to AI-driven innovation

The Trump administration plans to redirect billions of dollars in federal research funding away from universities and toward individual scientists and artificial intelligence (AI), reshaping the U.S.’s roughly $200bn annual research and development budget to accelerate technological breakthroughs and strengthen competition with China. New guidance from the White House Office of Science and Technology Policy prioritizes fellowships and direct awards to researchers, while encouraging agencies to place AI at the center of scientific discovery rather than simply using it to enhance existing research. The strategy also seeks to reduce bureaucracy by funding researchers directly instead of channeling grants through universities. The proposal could further reduce funding for major universities, particularly alongside a separate Office of Management and Budget proposal that would give political appointees greater influence over research grants.

Trump administration investigates Harvard over international student financial aid practices

The U.S. Department of Justice has launched a compliance review of Harvard University to determine whether its financial aid programs funded by Chinese sources unlawfully exclude U.S. citizens, potentially violating Title VI of the Civil Rights Act, which prohibits discrimination based on national origin. The department said it has not reached any conclusions but is examining whether restrictions attached to foreign-funded aid disadvantaged American students. Harvard denied the allegations, stating that it complies with federal reporting requirements and does not unlawfully discriminate in awarding financial aid. The investigation is the latest in a series of actions by the Trump administration targeting the university, following disputes over foreign funding, diversity initiatives, campus antisemitism, and international student enrollment.

INTERNATIONAL

France passes landmark law restricting social media access for young teens

France has become the first European Union country to approve a nationwide ban preventing children under 15 from using social media, following votes in both chambers of Parliament. The legislation, a signature policy of President Emmanuel Macron’s second term, also prohibits mobile phone use in high schools and is intended to take effect at the start of the new school year in September, although a constitutional review could delay implementation. The law exempts educational and scientific platforms, but questions remain over how existing under-15 accounts will be identified and removed, and how age verification will be enforced for new users. Opponents argue the legislation may be unconstitutional, difficult to enforce, and could undermine online anonymity. The revised bill was amended after discussions with the European Commission to ensure compatibility with the EU’s Digital Services Act. Spain, Denmark, Greece, the United Kingdom, and the European Commission are considering comparable restrictions as governments seek stronger protections for young internet users. 
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