EdWeek Market Brief staff writers dissect significant news of the week and identify the most important takeaways for companies serving K-12 districts.

Here’s our EdMarket Recap.

🔍 What Happened: Trump Signals Support for AI in K-12

During his State-of-the-Union address this week, President Donald Trump took the opportunity to applaud a K-12 artificial intelligence competition spearheaded by first lady Melania Trump.

The competition, announced earlier this year, invites students nationwide to craft a proposal for how AI technologies could be applied to address a community problem, Education Week reported.

Educators are invited to propose new and unique ways to teach an AI concept or create an AI tool for their classrooms. State-level winners will be invited to the White House for a three-day showcase in June.

🎯What it Means:

The public endorsement of AI in K-12 may help thaw the frosty reception the emerging technology has received in some school districts across the country — a shift that could help pave the way for more interest in using AI tools in classrooms.

However, the shoutout doesn’t necessarily mean AI will benefit from federal monetary or programmatic support. The administration has nixed some programs and made policy moves that experts warn could hobble its AI goals, including eliminating the federal office of education technology, Education Week reported.

Trump’s address was also light on any other references to K-12, despite his administration’s focus on making big changes to the federal education status quo — offering little insight for education companies into what’s on the horizon for the market.

🔍 What Happened: More Ed. Department Programs Will Move Elsewhere

Federal programs related to school safety, community schools, educational TV programming, and family engagement will find new homes as part of the Trump administration’s continued downsizing of the U.S. Department of Education, Education Week reported this week.

The federal department announced that it has struck an agreement with the U.S. Department of Health and Human Services for it to “take a growing role in administering” the programs.

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The move includes Project SERV and National Activities funds for helping schools recover from violent emergencies and expand mental health services, as well as Statewide Family Engagement Centers for fostering connections between parents and educators, according to EdWeek.

🎯What it Means:

The announcement — like all announcements of oversight changes to federal programs — raises questions for systems and schools that relied on the services or dollars they provided.

Questions that, if unanswered, ultimately have a cooling effect on the market for the products and services that are typically funded by these programs.

Districts will make different spending decisions if they are no longer sure they’ll receive a Project SERV grant, which funds short-term, education-related services after traumatic events that disrupt the learning environment.

The same is true if administrators are worried the dollars will be delayed or held up in reaching the district as part of the administrative shuffle.

This comes after the Department of Labor announced in December that it is slated to be the new overseer of federal Title funds, one of the largest and most impactful federal K-12 funding programs.

🔍 What Happened: Supreme Court Rules In Education Companies’ Tariff Case

The legal challenge filed by a pair of Chicago-based educational companies had its day in the country’s highest court, and ultimately saw President Donald Trump’s tariff policy struck down.

In a 6-3 decision issued Feb. 20, the court held that Trump lacked congressional authorization to impose sweeping tariffs, Education Week reported.

The education companies’ specific claims — which were rolled together with other filings before being brought to the Supreme Court —were dismissed on jurisdictional grounds, EdWeek reported.

But one company’s name is at the top of the decision: Learning Resources Inc. v. Trump.

🎯What it Means:

In the wake of the ruling, Trump has lashed out at Supreme Court justices, and his team has vowed to restore tariffs.

The response has left little clarity about what businesses will face in the near future.

When EdWeek Market Brief spoke to Hand2mind in June 2025, the company reported the amount they paid for tariffs had already doubled compared to the year prior — reaching just under $5 million. They were facing raising prices by at least 70% to offset the increased costs.

A lower court ruled in the education companies’ favor in May 2025, followed by President Donald Trump’s team filing an appeal.

🔍 Other News We’re Watching: