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USA
27th October 2026
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THE HOT STORY

U.S. school districts face mounting financial pressure as healthcare costs surge

U.S. school districts are facing escalating healthcare expenses that are placing increasing pressure on budgets, staffing, and employee benefits, as medical inflation, rising prescription drug costs, and expensive treatments strain already limited resources. At the Association of School Business Officials International conference earlier this month, representatives from Ohio’s Big Walnut school district highlighted the financial impact of high-cost medical claims, with ten of its 336 insured employees generating claims exceeding $50,000 each this fiscal year. Meanwhile, Illinois’ West Aurora district spent $26m on medical expenses in 2026, more than 10% of its $215m operating budget, with costs projected to rise by another $5m next year. Districts are exploring alternative insurance plans, Health Savings Accounts, virtual healthcare, and prescription drug initiatives to control spending without undermining employee recruitment and retention. West Aurora estimates that changes to its GLP-1 drug coverage could save $750,000 to $1m annually. However, declining student enrollment, state-level funding constraints, and the growing availability of costly new treatments are expected to intensify financial pressures.

DIGITAL CURRICULUM

Choose the Right Digital Curriculum

How do you determine which digital courses will meet your students’ and teachers’ needs best? Get expert answers to your digital curriculum questions in the free Digital Curriculum Buyer’s Guide from FlexPoint. While you learn how to identify quality digital courses, you’ll complete worksheets that will offer a clear path toward your goals. These insights, tips, and more are vital to making the right purchasing decisions for your school or district.

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SCHOOL CHOICE

Federal school choice divides Democratic governors

Democratic governors face an end-of-year decision on joining the federal Education Freedom Tax Credit, which offers dollar-for-dollar tax credits on donations of up to $1,700 to fund student scholarships. With 31 states participating, including just two Democratic-led states, the program could reach $26bn by 2030. Supporters highlight funding opportunities for public and private school students, while opponents warn of inequitable distribution, limited accountability and potential damage to public education. New York Gov. Kathy Hochul defended participation, stating: "I'm not going to leave money on the table when it could help our kids." Meanwhile, Oregon Gov. Tina Kotek has rejected the initiative, citing concerns about federal education policy. Teachers' unions remain strongly opposed, while school choice advocates anticipate more Democratic governors joining after the November elections.

DISTRICTS

California school districts face federal scrutiny over student privacy in ethnic studies classes

The U.S. Department of Education has launched investigations into Palo Alto Unified, San Francisco Unified, and North Monterey County Unified school districts in California over allegations that ethnic studies courses required students to disclose sensitive personal information without parental consent. The investigations focus on classroom activities such as the “Wheel of Power/Privilege” and “Mapping My Identities,” which the department claims prompted students to reveal details about their sexual orientation, gender identity, health, race, and family finances. Federal officials are examining potential violations of the Protection of Pupil Rights Amendment, which safeguards students against certain intrusive surveys and establishes parental notification and consent requirements. The investigations form part of the Trump administration’s broader scrutiny of California education policies, with potential consequences including federal enforcement action and loss of funding if violations are established.

Michigan school districts turn to November ballot to fund construction, staffing, and classroom needs

Six school districts in Wayne County, Michigan, are asking voters to approve bond and property tax proposals on November 3 to fund school construction, infrastructure improvements, and everyday operating expenses amid declining enrollment and financial pressures. Dearborn Public Schools is seeking the largest investment, a $1.5bn proposal to build and renovate schools, introduce STEM labs, and install air conditioning, with officials stating that the plan would not result in a tax increase. Riverview Community Schools is requesting a $30m bond to modernize aging buildings, improve security, and upgrade classroom technology without increasing its current tax rate. Meanwhile, Romulus Community Schools is seeking a ten-year renewal of an operating tax expected to generate approximately $745,000 in 2027, supporting transportation, staffing, and educational programs. Redford Union, Taylor, and Wyandotte are also proposing operating millages to maintain funding or restore property tax rates reduced under Michigan’s Headlee Amendment, highlighting the challenges districts face in sustaining services and infrastructure.

Award-winning Brooklyn teacher leads NYC climate education efforts ahead of statewide mandate

Brooklyn science teacher Sean McFadden has been recognized for his work advancing climate education across New York City, receiving the 2026 Julian Robertson Award for Excellence in Teaching, which includes a $20,000 unrestricted prize. McFadden, who teaches AP Environmental Science and a climate change elective at Eagle Academy for Young Men II, also co-chairs the city's Climate Education Leadership Team, comprising approximately 40 educators developing inclusive climate lessons ahead of a new statewide mandate beginning next school year. His work includes developing climate curricula for the city's K–8 Summer Rising program and leading a pilot involving 11 teachers across four boroughs, where students use sensors to monitor air quality. In his classroom, McFadden emphasizes hands-on learning through urban heat investigations, hydroponics, and student-led sustainability initiatives. He also advocates for stronger teacher training, accessible instructional resources, and opportunities for students from underrepresented communities to participate in environmental science and develop practical solutions to local challenges.

FINANCE

Iowa City Schools considers closures and staffing changes to address $32.5m budget shortfall

Iowa City Community School District is preparing to cut $13.8m in spending for the 2027–28 school year, as part of a broader plan to reduce expenditures by $32.5m over four years, equivalent to nearly 10% of its $339.5m annual budget. The reductions follow declining student enrollment, state funding increases that district leaders say have failed to keep pace with inflation, and financial management problems involving nearly three years of inaccurate spending and revenue tracking. The district has commissioned external reviews of staffing, compensation, operational efficiency, enrollment trends, and school facilities to identify potential savings. Options under consideration include staff restructuring, school closures, consolidations, and attendance boundary changes, alongside reductions affecting academic and extracurricular programs. Public consultations are scheduled for January, with facility recommendations expected in February. The school board plans to finalize budget reductions on March 9, 2027, ahead of the new fiscal year beginning July 1.

Virginia targets K–12 funding reform

Virginia lawmakers have approved a plan to hire an independent consultant to evaluate alternatives to the state's 52-year-old K–12 school funding formula, aiming to create a more transparent and equitable system for distributing education resources. The review, which could take up to 24 months, will examine replacing the existing staffing-based approach with a student-based funding model that accounts for special education, English language learners, local financial capacity, and other student needs. Lawmakers hope to complete the work ahead of Gov. Abigail Spanberger's December 2027 budget proposals, with a consultant expected to begin work in January. The initiative follows a 2023 study highlighting the disproportionate financial burden placed on local governments. Virginia has already increased ongoing K–12 education funding by more than $4bn, or 50%, between fiscal years 2023 and 2028, including $1.5bn for teacher salaries, $537.5m for school support staff, and additional investments in special education and at-risk students.

CHARTERS

Mississippi orders first charter school closure following financial and regulatory failures

Mississippi's Charter School Authorizer Board has unanimously voted to revoke the charter of SR1 College Preparatory and STEM Academy in Canton, requiring the school to cease operating as a charter school by December 31, 2026. The decision marks the first time a Mississippi charter school has faced this penalty, following years of financial mismanagement, regulatory noncompliance, and operational concerns. Investigations identified violations of federal and state laws, including food safety requirements, alongside inadequate financial oversight and significant staff turnover. The school reportedly had just one day's cash reserves and consistently overestimated enrollment, including requesting funding for 150 students while enrolling only 12. During that year, expenditure reached $816,725, equivalent to approximately $68,060 per student, five times the state district average. School administrators unsuccessfully requested a delay pending a financial audit and the release of $300,000 in frozen funding. The school may appeal the decision or potentially reopen as a private institution.

LEGISLATION

Pennsylvania mandates bell-to-bell cellphone restrictions across all schools by 2027

Pennsylvania Gov. Josh Shapiro has signed legislation requiring all public and private schools to implement a statewide “bell-to-bell” cellphone ban by the start of the 2027–28 school year, aiming to improve student concentration, behavior, and mental health. The law prohibits students from using cellphones and other personal internet-connected devices throughout the school day, including during lunch, recess, homeroom, and between classes. Exceptions will apply for students with disabilities, medical needs, and English learners, while teachers may authorize educational use when school-issued devices are insufficient or unavailable. Schools must also inform parents about communication procedures and emergency notifications. The legislation replaces varying school-level policies, including those in Philadelphia, with a consistent statewide requirement. However, no additional funding has been allocated to support implementation, leaving districts responsible for enforcement arrangements and associated costs, including potential purchases of lockable phone pouches or storage equipment.

NUTRITION

Ultra-processed food consumption linked to stronger brain reward responses and weight gain in children

A study published in JAMA Network Open has found that children who consume more ultra-processed foods exhibit stronger brain reward responses to images of junk food, potentially contributing to weight gain. Researchers analyzed 46 children and found that greater activity in the dorsal striatum, a brain region associated with reward and motivation, was linked to higher body mass index (BMI) and increased body fat one year later. U.S. children obtain approximately 67% of their daily calories from ultra-processed foods, including packaged snacks, sugary cereals, and ready-made meals. Researchers emphasized that the observational study does not establish causation, and further research is planned to investigate whether healthier diets can alter brain responses and reduce obesity risk.

TECHNOLOGY

K–12 districts prioritize student data privacy while expanding classroom tech

K–12 school district IT teams are playing an increasingly important role in balancing classroom innovation with cybersecurity, student privacy, and regulatory compliance as schools adopt new digital learning tools and artificial intelligence platforms. With districts relying on dozens of third-party applications, technology leaders must evaluate vendors’ security practices, potential data privacy risks, and educational benefits before approving new software. Establishing formal vendor assessment policies and data protection agreements can help districts reduce exposure to security breaches, while content filtering and Domain Name System (DNS) security tools protect school networks and restrict access to potentially harmful websites. Schools are also exploring AI-powered learning capabilities within existing trusted platforms, allowing them to introduce new functionality without undertaking extensive security reviews or renegotiating data agreements. By developing consistent approval processes and cybersecurity safeguards, IT teams can support classroom modernization while protecting sensitive student and district information.

SCHOOL TRANSPORT

LEARNS Act funding offers Arkansas schools support for safer, more efficient transportation

The Arkansas’ Department of Education has opened the second application round for its Transportation Modernization Grant program, established under the 2023 LEARNS Act, to help school districts improve transportation efficiency, safety, and accessibility. The grants are available to public schools, charter schools, eligible daycare centers, and other qualifying organizations, with applications closing November 13. Funding can support modern route-planning technology, alternative transportation services, bicycle programs, and safer walking routes, particularly benefiting rural districts where students face lengthy bus journeys. During the previous funding round, Little Rock School District received $42,885 to expand free public transit access, provide bicycles and safety equipment, and install additional bike racks. Meanwhile, districts such as Woodlawn are exploring improved mapping systems to reduce travel times and operating costs. Education leaders are also considering flexible, on-demand transportation options, although concerns remain about sustaining programs beyond the initial grant period amid uncertain school funding.

INTERNATIONAL

France announces university admissions overhaul for 2028

France's government has pledged to replace its national university admissions platform, Parcoursup, in 2028, with substantial reforms planned for 2027, following weeks of nationwide student protests over education funding, living costs, and unequal access to higher education. Higher Education Minister Philippe Baptiste announced the changes as students criticized the platform's unclear selection criteria and barriers to securing places on preferred courses. The demonstrations, which began with school blockades in September, escalated into widespread unrest on October 17, involving clashes with police, looting, and damage to public buildings. Subsequent protests attracted more than 400,000 participants according to authorities, while organizers estimated nearly 800,000. Students are also demanding additional teachers, improved school facilities, smaller classes, and changes to teaching hours. The government has already committed to deploying 3,000 additional substitute teachers to struggling high schools, as President Emmanuel Macron faces mounting pressure to address educational inequalities and deteriorating learning conditions.

Australia weighs classroom screen-time restrictions as global education strategies diverge

Australian education authorities are considering reducing screen time in classrooms following declining international test results, with Federal Education Minister Jason Clare proposing a school 'digital detox' for discussion with state counterparts next month. The proposal follows Sweden's efforts to replace digital devices with textbooks and handwritten learning, although the country's continued decline in reading and math scores has raised questions about the effectiveness of its approach. Research from the Organisation for Economic Co-operation and Development suggests moderate use of digital technology can support learning, while excessive screen time and digital distractions are associated with weaker academic performance. Meanwhile, high-performing education systems are pursuing different strategies, with Estonia embracing artificial intelligence in secondary schools, China combining traditional teaching methods with AI experimentation, and Japan taking a more cautious approach to digital textbooks. 
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