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K-12 FY26 Budgets Signal Cautious Optimism | ED Moves to Restrict PSLF Eligibility | Top 10 Articles | How is AI Actually Being Used on Campus?

Author

Ben Wallerstein
August 15, 2025

In the education policy world, we’re fond of the trope that K-12 classrooms don’t look very different today than they did 100 years ago. I’m not sure how many presentations I’ve seen that start off with something like this:

Of course, there’s some truth in it. There’s also tremendous variability when it comes to whether and how well any number of promising innovations (from pedagogical shifts to classroom layouts or emergent technologies) are introduced and adopted. 

Most of my work—and this newsletter—tends to focus on the policies, systems, and incentives that shape what happens in the classroom. But what often gets lost in the conversation is the role that teachers play in creating learning environments that look very different from the ones that many of us grew up with. 

Last night was parent night at the local high school in our town, and I was struck by the ingenuity of the teachers that I had a chance to speak with. But most of all, I was struck by the ways in which their pedagogical choices and approach reflected not just the system in which they were operating, but the style, personality, and strategies that they brought to the classroom. 

I heard from a 10th grade chemistry teacher that was inspired to define and build a distinctive classroom “brand” to communicate and reinforce the culture of the classroom. Her brand promise of “No Excuses, No Surprises,” was backed up by a robust library of digital resources and guides to help students understand what to expect, and what was expected of them. Her brand not only made sense, it was emblazoned on classroom swag like posters and stickers that would be the envy of any edtech startup. 

The same teacher had created videos and lessons that students could access on-demand. While she didn’t use the term “flipped classroom,” she emphasized that class time was for inquiry and engagement, not lecturing. Her “parent night” presentation was, likewise, far from “sage on the stage,” quickly evolving into small group discussion within a laboratory setting (as opposed to neat little rows of desks). Sure, the space may have looked the same as it did 40 years ago. But she was using it very differently.

Later on, I heard from a history teacher who had also created a library of videos (in her words, an unintended “benefit” of Covid) to cover critical lessons throughout the year. A 10th grade math teacher recorded every class period, posted the videos daily and encouraged students to review with regularity at 2X speed. 

A common theme across every classroom that I visited was the push for student agency.  In some ways, that might not seem new—but the ability of educators to deliver real-time feedback, schedule and respond to questions online is no doubt an enabler of the expectation that students communicate concerns and seek help early and often.  

Another theme: educator agency. The practices that I observed weren’t the byproduct of an edict from on high, but rather the culture of a school and district that enables entrepreneurial educators to think creatively about their craft. They were the byproduct of time spent during nights, weekends, and the summer months. After all, few teachers have the time to create their own digital resources, let alone build a brand during a public school day (or with the school’s budget). 

It's true that my children are served in classrooms that have the benefit of resources that don’t exist in too many communities around the country. But that shouldn’t negate an important point as we head into back to school season: policy changes, funding shifts, and new technologies emerge and take hold. But at the end of the day, our educators are where the rubber meets the road and the real work starts (and ends) with them. 

In this week’s edition, we round up the “Top 10 Articles of the Week” and take a closer look at:

  • FY26 Education Budgets Signal Cautious Optimism and Innovation

  • ED Moves to Restrict Student Loan Forgiveness

  • From Buzzwords to Blueprints: How is AI Actually Being Used on Campus?

  • Lessons From the Front Line: Turning Teacher Requests into Statewide Solutions

  • Vote for Whiteboard at SXSW EDU!

Top 10 Articles of the Week from W/A’s What We’re Reading Newsletter

What We’re Reading: PK-12 and Higher EducationReceive a roundup of the latest early childhood, K-12, and higher education news. Published four times a week, this newsletter provides a curated selection of reports, research, and top stories fro...

FY26 Education Budgets Signal Cautious Optimism and Innovation

The map shows whether state education budgets are down (red), level (yellow), or green (up) over the prior year. Budget trends are scored 1 to 3. “1” is declining. “3” is improving.” “2” is level or marginal changes that may be washed out by rising costs. Scores are fractional because there are various parts of K-12 funding with scores.

With all but two states left to finalize FY26 budgets, the budget picture is coming into focus. Most legislatures opted for level funding, or modest increases. Several paired new investments to targeted strategies to bets on preschool, high school reform, school choice, and digital literacy. 

Here's what we’re watching:

Arizona: Funding 9th Grade Success

Arizona lawmakers approved $3.4 million for a new initiative aimed at increasing the number of 9th grade students on track to graduate, an evidence-backed indicator strongly correlated with high school completion. The program, supported by the Center for High School Success, provides grants to schools to implement early warning systems, advisory periods, and staffing supports [KTAR]

Colorado: Preschool and Rural Teacher Recruitment

Colorado’s education budget reflects an ongoing commitment to expanding universal preschool while addressing persistent workforce challenges. It adds $6 million to keep preschool free for every 4-year-old, directs $12.6 million to expand Early Intervention services for babies and toddlers with disabilities, and continues a $2.9 million pilot to raise wages for child care workers statewide [Chalkbeat Colorado]

Connecticut: Early Learning and Dual Enrollment

Connecticut’s education budget expands early childhood access and affordability and also seeks to boost college readiness. It allocates $300 million to a child care fund projected to add 16,000 affordable slots by the early 2030s and establishes a $36 million Early Childhood Endowment to offer free child care, renovate facilities, and raise child care workers’ wages. The state will also provide $6 million to offset costs associated with dual enrollment starting in FY27. [CT Insider]

Montana: Education Workforce and Readiness Investments

Montana enacted the STARS (Strategic Teacher and Rural Student) Act, a statewide initiative to strengthen both the educator pipeline and student career readiness. The law dedicates $100 million to raise starting teacher salaries, adding incentives for district resource sharing, expanded CTE opportunities, and new “Future Ready” pathways that help students prepare for postgraduation careers or college [Montana Free Press]

New Mexico: Funding Boosts Learning, Early Childhood, and Safety

New Mexico continues to lead in per-pupil funding growth, with major investments in career and technical education, secondary school reform, and special education. The budget doubles early childhood funding to $500 million and directs additional resources toward student safety and wellness, including support for unhoused students, wellness rooms, and school panic buttons.

Nevada: Weighted, Outcomes-Based Funding

Nevada passed a $12.9 billion education budget that keeps last year’s $250 million in teacher raises and, for the first time, guarantees equal pay for charter school teachers. The plan adds $5,000 bonuses for hard-to-fill jobs in low-income and special education schools, while continuing the Pupil-Centered Funding Plan with equity-weighted allocations, outcome-driven funding pilots, and early warning systems that echo Arizona’s 9th grade success strategy. [Reno Gazette Journal]

Ohio: Literacy and Direct Admissions

Ohio’s budget bill includes both funding and legislative changes with long-term implications. FY26 funding supports continued implementation of the science of reading, including teacher training and instructional materials. Lawmakers also launched a new direct admissions program that guarantees spots at participating public colleges and universities for high school students graduating in the top 10% of their class.

Texas: School Choice Expansion and Special Education Reform

Texas lawmakers approved an $8.5 billion public school funding plan paired with $1 billion for a new statewide education savings account (ESA) program. The program provides $10,500 per student and up to $30,000 for students with disabilities. The budget also overhauls the special education funding formula and adds $1,000 per disability evaluation. [The Texas Tribune]

West Virginia: Voucher Growth and Digital Literacy Investment

West Virginia’s budget expands the Hope Scholarship voucher program to universal eligibility through increased funding, raising the number of full-scholarship recipients from just over 10,000 last year to an expected 15,000. The state also continues to invest in the Mountain State Digital Literacy Program. [West Virginia Metro News]

ED Moves to Restrict Student Loan Forgiveness

On Monday, the U.S. Department of Education is expected to publish proposed regulations that aim to limit student loan forgiveness eligibility under the Public Service Loan Forgiveness (PSLF) program. 

Get smart: PSLF, enacted under former President George W. Bush as part of the College Cost Reduction and Access Act of 2007, was designed to offer student loan forgiveness to borrowers who work public service, including teachers, firefighters, public defenders, and community health care workers. To be eligible, borrowers must make the minimum payments on their federal student debt while working at a qualifying public service or nonprofit employer for 120 months, or at least 10 years.

The proposed amendments come in response to a March 7 executive order, “Restoring Public Service Loan Forgiveness,” that takes aim at Biden-Harris administration “abuses” of the PSLF program which “misdirected tax dollars into activist organizations that… fail to serve the public interest… [and] harm national security.” 

Key changes:

  • ED will cut PSLF eligibility to nonprofit or government organizations determined to be engaging in activities with a "substantial illegal purpose” on or after July 1, 2026. ED will make these determinations based on a preponderance of evidence.

  • These activities include providing certain health care services to transgender youth, supporting terrorist organizations, facilitating the violation of federal immigration laws, violating state laws, or engaging in a pattern of “illegal discrimination” as defined by federal law (presumably including DEI), among others.

What’s next: The Department is expected to enter the proposed rules in the Federal Register next week, followed by a 30-day public comment period. Should ED publish a final rule by November 1, the proposed regulations would be set to take effect next summer.  

Quick Takes

From Buzzwords to Blueprints: How is AI Actually Being Used on Campus? 

This week, W/A hosted a conversation about the use of AI on university campuses and the tools and guardrails institutional leaders are putting in place to ensure students, faculty, and staff leverage AI safely and responsibly.

The webinar featured Asim Ali Ph.D, Executive Director of the Biggio Center for the Enhancement of Teaching and Learning at Auburn University, California State University Monterrey Bay CIO Tara Hughes, Adobe Senior Product Marketing Manager Dhruva Chandrasekhar, and Senior Writer for The Chronicle of Higher Education Rick Seltzer

While the panel focused on the tactical ways universities are bringing AI onto campus, it was rooted in a more philosophical question: How does the value proposition of a university change with the broad accessibility of AI? It is still too soon to tell the final answer to that question, but the early experiments of university leaders bear watching closely.

Lessons From the Front Line: Turning Teacher Requests into Statewide Solutions

This week, DonorsChoose released a white paper, Lessons From the Front Line: Transforming Classroom Insights Into State-Level Impact, highlighting how real-time teacher resource requests can inform state policy and funding decisions.

Drawing on data from nearly one million U.S. public school teachers and state partnerships in Nevada and Hawai‘i, the report reveals how teachers’ classroom resource requests have the power to help states better target resources, strengthen teacher retention, and align funding initiatives with authentic classroom priorities. 

  • The America First Policy Institute (AFPI) welcomed Max Eden and James Paul. Eden will serve as AFPI’s director of federal education policy following her role on the White House Domestic Policy Council. Paul will be the director of state education policy; previously, Paul served as executive director of the West Virginia Professional Charter School Board.

  • Luci Willits has been named vice president of government relations at Great Minds. Most recently, Willitis was vice president of public policy at Age of Learning; she also previously served in leadership roles at MetaMetrics, Inc. and Curriculum Associates.

  • On July 1, Kevin Kruger became FirstGen Forward’s interim president/CEO. Kruger, who was serving as chair of FirstGen Forward’s board, will serve in this role through the end of the year. Kruger is President Emeritus of NASPA, and was previously associate vice president of the University of Maryland, Baltimore County.

Check out W/A Jobs, which features 3,374 career opportunities from 305 organizations across the education industry. A few roles that caught our eye over the past week:

🎟️ Vote for Whiteboard at SXSW EDU!

SXSW EDU PanelPicker is live, and we’re thrilled to have several sessions featuring Whiteboard Advisors team members in the mix! This year’s proposals tackle some of the most urgent and exciting questions in education: How we fund it, tell its stories, integrate technology, and ensure every learner is supported and successful.

💡 Sessions include:

🗳️ Voting closes August 24. Support our sessions and help shape the conversations that will define what’s next in education.

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