While educators across Texas are making plans for the new school year, big moves in Washington, D.C., are threatening the foundation of public education — and putting our students, our profession, and our funding on the line. Let’s break it down.
The “Big Beautiful Bill” — Not So Pretty for Public Schools
The U.S. Congress just passed what President Donald Trump called his “Big Beautiful Bill,” a massive tax and budget package that includes a first-of-its-kind federal private school voucher program.
Here’s what it does:
- Creates a national tax credit for donors to private school scholarship funds
- Allows families making up to 300% of an area’s median income to use taxpayer dollars for private school tuition, homeschooling expenses, and more
- Puts no cap on how much federal money can be diverted away from public schools, setting the stage for billions in public education dollars to be siphoned off
The so-called “Big, Beautiful Bill” is really a billionaire tax scam — a massive giveaway to the ultra-wealthy at the expense of working families. While the president and congressional leaders try to sell it as relief, the truth is this bill will make life harder for millions of Americans.
The “Big, Beautiful Bill” hands the richest 0.1% an average tax break of over $250,000, while raising taxes on the poorest 20%. It slashes $1.1 trillion from Medicaid and SNAP, kicking at least 16 million people off their health insurance and stripping food assistance from millions more — including 18 million children who rely on school meals. It guts Pell Grants and raises student loan costs, cuts clean energy jobs, raises utility bills, and opens the door for Big Tech to exploit users unchecked for the next decade.
For educators struggling with student loan debt, here are some of the additional “lowlights” for the millions of educators struggling with student loan debt:
- Cuts Pell Grants & Affordability Programs: Slashes need-based aid, making college harder to afford for low- and middle-income students.
- Triples Monthly Payments: Eliminates income-based repayment options, leading to much higher bills for borrowers.
- Raises Loan Fees: Increases origination fees, costing students an extra $1.8 billion.
- Blocks Access to Higher Ed: Drives more students into long-term debt or out of college entirely, worsening inequality and limiting opportunity.
All told, it’s a Big Betrayal of working people and a direct attack on the American dream. We hope all public school employees and parents remember in November 2026.
$6.2 Billion in Federal Funds? Frozen.
The U.S. Department of Education is withholding approximately $6.2 billion in federal K–12 grants, including funding for after-school programs, support for emergent bilingual students, migrant student education, teacher training, and academic enrichment — with the amount rising to $6.8 billion when you add adult education funds. This funding was intended to be disbursed July 1, and districts were relying on this money to plan for fall 2025. The freeze will hit high-need communities hardest, especially in many Republican-leaning areas.
This isn’t just a budgeting hiccup. It’s a politically motivated freeze that threatens educational equity. Bilingual students, low-income families, migrant learners, and after-school initiatives in Texas stand to suffer the most if funding isn’t released soon. Texas schools are now scrambling to plug a $660 million black hole, risking classroom reductions, shutdown of enrichment programs, and scaled-back services, all while families are waiting for official relief.
To recap:
- Title I support for low-income students: frozen.
- Professional development grants for teachers: frozen.
- After-school and summer programs: frozen.
- English learner support services: frozen.
They’re being held hostage while the administration conducts a “policy review.”
Let’s be clear: Our schools are already operating under tight budgets. Every dollar withheld threatens programs, services, and staffing that Texas students depend on.
For a deeper dive: A District-by-District Accounting of the $6.2 billion U.S. Department of Education Has Held Back from Schools
With the reconciliation budget now signed into law — passed by the House and Senate and signed over the weekend — AFT joined with 149 organizations to send a powerful message in a full-page New York Times ad: They Betrayed Us.
What We’re Doing — and What You Can Do
AFT is fighting back, pushing Congress to restore funding, shining a spotlight on the damage vouchers will cause, and holding state leaders accountable if they choose to opt into the new federal privatization scheme. Just last month, tens of thousands of AFT members, families, and allies came together in peaceful rallies across the country to say loud and clear: power belongs to the people — not to kings, billionaires, or parades of ego. Thank you to everyone who showed up to defend democracy, protect our kids, and fight for the better future every community deserves.
Keep up to date with actions planned nationally at www.aftvotes.org and our Texas AFT events page: https://www.mobilize.us/texasaft/
Summer School Is in Session
Want to dig deeper into these issues? Join us for our 2025 Texas AFT Summer School, a statewide series of workshops designed to empower educators like you with the latest information on legislative impacts to you nationally, in higher education, and in K-12.
Our upcoming session on July 15 will include national experts that will outline the details of what’s in the ‘Big Betrayal’, what’s next for national vouchers, student loans, funding, and how it affects you as a Texas educator.