New Act Guarantees No Cuts to Public School Funding Through FY 2027: Treasury Must Backfill Any Shortfalls

This bill, officially titled the ‘No Cuts to Public Schools Act,’ is a straight-up insurance policy for key federal education programs. Simply put, it guarantees that certain critical school funding streams cannot drop below the level they received in Fiscal Year 2024 for the next three years (FY 2025, 2026, and 2027). If Congress tries to cut the budget for these programs in the annual spending bill, the Treasury steps in automatically to cover the difference.

The Guaranteed Minimum: What’s Covered

This isn't about funding every single program; it’s focused on the heavy hitters that support vulnerable students. The bill defines a long list of “critical education programs” (SEC. 2) that are now protected by this funding floor. The biggest ones are the entire Individuals with Disabilities Education Act (IDEA), which funds special education services, and most of the Elementary and Secondary Education Act (ESEA), particularly Title I. Title I is the massive program that sends money to schools with high numbers of low-income students. It also covers funding for English language learners, homeless student assistance (McKinney-Vento Act), and teacher training. For parents of students who rely on these services, this provides significant stability. For example, a school district planning its special education staffing budget for the next three years now has a solid minimum funding figure to work with, rather than worrying about last-minute cuts.

The Automatic Backstop

So, how does the guarantee work? It creates an automatic spending mechanism (SEC. 2). If the regular annual spending bill, which funds the government, allocates less money to any of these critical programs than they got in 2024, the Treasury Department has 30 days to automatically transfer the exact amount of the shortfall. This is a big deal because it takes the politics out of restoring the funding. Instead of requiring a separate, potentially messy, vote in Congress to fix a cut, the money just shows up. Think of it as an automatic deposit triggered by a budget cut. Furthermore, any funds provided this way don't expire until they are spent, meaning districts won't lose money just because they couldn't spend it by the end of the fiscal year.

The Budgetary Side Effect

While this mechanism is great for schools, it does change how federal spending is typically handled. By making the Treasury automatically backfill cuts, the bill essentially creates a mandatory spending floor for these discretionary programs for three years. The bill tries to smooth this over by stating that these funding adjustments won't count against standard budget scorekeeping rules (PAYGO scorecards). This means the money transferred by the Treasury won't trigger automatic cuts to other unrelated federal programs, which is a common concern when new spending obligations are created. However, for taxpayers, this simply means that the commitment to these education programs is now locked in and guaranteed, regardless of what Congress attempts to pass in its annual budget bills through 2027. It's a clear statement that funding for students with disabilities and low-income students is a non-negotiable budget priority for the next few years.