How would a Dept. of Education closure affect Americans?
U.S. President Donald Trump moved to eliminate the Department of Education. But he can’t shutter the agency without congressional legislation.
- Kentucky receives more than $1 billion in federal funding for its 171 public school districts.
- Districts like Owsley County rely heavily on federal funds, which comprise up to 35% of their per-student spending.
- The loss of funding will disproportionately affect districts with high poverty and disability rates.
Massive changes at the federal level since President Donald Trump’s inauguration have caused widespread concerns over potential impacts on Kentucky’s public schools.
Last month, the Trump administration signed an executive order to dismantle the U.S. Department of Education, and much of the department’s staff have been eliminated through mass layoffs and voluntary buyouts.
Additionally, states were notified that previously approved extensions to spend COVID relief funds would no longer be honored, and districts were threatened with loss of federal funding if schools don’t eliminate diversity initiatives or allow parents to view students’ “gender identity” records.
Much of what all of this means for Kentucky schools remains unclear, though if all federal funds were pulled, that would be a loss of more than $1 billion across the commonwealth’s 171 public school districts.
Districts receive a mix of local, state and federal funding in order to support services provided to students, with federal funds especially supporting the education of the state’s neediest students.
On average, Kentucky districts spend about $2,000 in federal funds per student, though that rate increases in areas with higher rates of poverty, disabilities or homelessness, among other factors. In a district like Anchorage Independent, where very few students have special needs, only 2% of what the district spends per student comes from federal funds. Meanwhile, federal funds make up more than 20% of spending for multiple other districts.
Here’s which Kentucky school districts rely the most on federal funding — and could stand to lose the most from the Trump administration’s latest cuts.
Owsley County Schools
Located in eastern Kentucky, Owsley is a small district with just over 600 students.
Data compiled by Georgetown University’s Edunomics Lab from the 2022-2023 school year shows of the more than $25,000 the district spent per student, about 35%, or $8,870, came from the federal government — the highest rate in terms of percentage and dollars among all Kentucky districts.
Spread across just two school buildings, the district served a very high concentration of impoverished students, with 94% living below the federal poverty line. Additionally, 22% had disabilities.
Statewide, about 60% of Kentucky public students were impoverished in the same time period, and 18% had disabilities.
Owsley is also one of 14 Kentucky districts that were recently notified their unspent COVID relief funds are no longer available. The district had less than $400,000 left to spend, which was earmarked for restroom renovations, according to Superintendent Gary Cornett.
“We literally approved pay out for the final $340,000 plus dollars of COVID money during our March board meeting,” Cornett said by email. “This money would have been drawn down on March 31.”
Now, he continued, “we are looking at some different options of covering this loss. As you can imagine, this type of loss will be devastating to our small district should we not receive the money.”
Lincoln County and Murray Independent
Located in different parts of southern Kentucky, both Lincoln County Schools and Murray Independent School District use federal funds to make up 28% of their student spending.
Lincoln County Schools, in south central Kentucky, serves about 3,100 students and spent about $18,300 on each of them, according to the Georgetown data. Of that, more than $5,200 came from federal funding. The district’s student population was comprised of 72% living in poverty and 20% who had disabilities.
Murray Independent, along the state’s southwest border, serves nearly 1,800 students, though far fewer of them are considered impoverished as compared to the above districts. Murray’s rate of economically disadvantaged students and students with disabilities actually falls below the state’s rate, at 50% and 17% respectively.
Still, of the about $17,600 Murray spent per student, about $4,900 came from federal funds.
How much federal funding do other Kentucky schools get?
Federal funding covers at least one-fifth of per student spending in 10 other Kentucky districts, with the federal portion ranging from $3,398 to $6,770.
On the other end of the spectrum, federal dollars make up 10% or less of spending for 65 districts. Of those, only eight use federal funding for 5% or less of their student spending.
Jefferson County Public Schools — the state’s largest district with a $2 billion budget — spent nearly $22,000 per student, 14% of which came from the federal government.
Krista Johnson covers education and children. Have story ideas or questions? Contact her at [email protected] and subscribe to her newsletter.













