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For school districts, federal funding impeded by lack of state budget

Kellen Stepler
| Tuesday, October 7, 2025 5:52 p.m.
Kristina Serafini | TribLive
Martin Elementary School in New Kensington is pictured Friday, July 18, 2025.

The federal government shutdown isn’t what’s preventing New Kensington-Arnold School District from accessing its federal funding this school year.

Instead, the $2.79 million is tied up because of the ongoing state budget impasse.

“Funding for these (federal) programs are passed through the Pa. Department of Education,” New Ken-Arnold Business Manager Jeff McVey said. “Due to the Pennsylvania budget impasse, the district has not received any federal grant revenue for fiscal year 2025-26.”

New Ken-Arnold isn’t the only school district facing the problem.

It’s a situation that’s affecting all 500 school districts across the state.

Pennsylvania’s budget is due annually by July 1, but the state Legislature has been unable to approve a spending plan.

Statewide, school districts are owed almost $4 billion in state revenue because of the budget impasse, according to the Pennsylvania State Education Association.

Locally, some school districts say they can manage without state funding until January, while others may have enough reserves to keep operating through spring.

New Kensington-Arnold’s $2.79 million in federal grant revenue accounts for 5.6% of the district’s total general fund revenue budget, according to McVey. It goes toward special education and supplemental reading and math programming.

The district typically receives supplemental reading and math programming payments from the federal government on a monthly basis starting in September, McVey said. Special education programming money is reimbursed to the district.

No reimbursements have been submitted in the 2025-26 school year, he said.

Officials in Norwin School District are anticipating receiving $1.16 million from the federal government for various federal programs, including a little more than $570,000 for the Title I program for improving academic achievement of disadvantaged students.

Norwin typically does not receive federal funding this early in the federal fiscal year, so it is not experiencing an immediate impact due to the federal government shutdown, said Lauren Steiner, school district spokeswoman.

Less than 1%, or close to $229,000, of Riverview School District’s $28.5 million budget comes from federal funding. The money subsidizes the salaries and benefits of teachers who support reading and math students, Superintendent Neil English said.

“Since a majority of our funds come from local taxes, we have been able to make ends meet while we wait for the state and federal government to release funds,” English said. “The big loss for us is that we are failing to receive the typical interest that is accrued in those line items.”

New Kensington-Arnold also receives about $1.58 million in federal funding for its food service operations, which makes up 81% of that department’s total revenue, McVey said.

Federal funding is based on the number of meals served, he said. Although that funding is also passed through the state Education Department, the district has been receiving that funding this year.

The state informed New Kensington-Arnold that, despite the federal shutdown, the Education Department’s Bureau of Food and Nutrition has enough funding to process and pay all valid claims for July, August, and September, according to McVey.

The Allegheny Valley School District has received the same notification regarding food service, said its business manager, Hamsini Rajgopal.

The bureau will keep districts informed of new information if the shutdown continues for a longer period of time, she said.

“(The) district is awaiting further communication about other funding impacts,” Rajgopal said.


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