Federal shutdown jeopardizes school funding in New York

As Republican and Democrat legislators squabble over the federal government shutdown, educators worry that the impacts to funding for schools and colleges could be serious the longer it continues. The Dems also say their political opponents are making the healthcare crisis worse by holding out for billionaires.

Federal operations declared “nonessential,” including the U.S. Department of Education (DOE), have been suspended and are running on skeleton staffing and contingency plans, which state that grants can be accessed but no new grants will be awarded and that the DOE’s Office for Civil Rights will suspend investigating complaints.

There’s a looming impact on federal funding for teachers and financial aid at New York State’s city and state colleges, prompting State University of New York (SUNY) and City University of New York (CUNY) administrators to go into crisis mode.

“CUNY has been preparing for a government shutdown, providing updates and guidance to members of our community, particularly faculty researchers receiving federal funding,” said a CUNY spokesperson in a statement. “And while support programs like financial aid continue, CUNY remains in close contact with elected officials and continues to coordinate with its 26 colleges to monitor for impacts and help community members navigate this difficult moment.”

At the staffing level, CUNY has faculty researchers whose work is supported by federal funding and who are furloughed.

In an email sent out to students, CUNY Chancellor Félix V. Matos Rodríguez explained that those who received federal financial aid, loans, or Veterans Affairs (VA) education benefits should be safe for now since the latest round of funding was already authorized and disbursed before Oct.1 for this semester. But, they are strongly encouraging students to fill out their Free Application for Federal Student Aid (FAFSA) form for the upcoming 2026 semester as soon as possible.

Similarly, SUNY leadership is urging high schoolers to fill out their FAFSA now.

“SUNY operations and federal financial aid to our students remain unchanged, and we are proactively reaching out to high school seniors across our state to ensure they fill out the FAFSA form for the 2026-27 academic year,” said a SUNY spokesperson. “We will continue to monitor the situation and provide regular updates to our campuses about any potential impacts.”

To help students with applications, Governor Kathy Hochul announced that the New York State Tuition Assistance Program (TAP) and the NYS Science, Technology, Engineering and Mathematics (STEM) Incentive Program are also open for the 2026-27 academic year. Additionally, undocumented high school graduates can qualify for financial aid through the Senator José Peralta New York State DREAM Act or the Alternate Eligibility Pathway.

The last round of federal funds for New York City public schools were also doled out on Oct. 1 so districts are safe for now, said Evan Stone, co-founder and CEO of Educators for Excellence. However, the longer the shutdown goes on, the greater the risk that billions in funding to teachers and early childhood education programs, like Head Start, will be delayed.

Many of the city’s Head Start and daycare to 3K providers are small, community-based educators who are already paid less than teachers. They also tend to be predominantly run and staffed by women of color serving low-income neighborhoods. Stone said that many of these providers may miss payments and don’t have “significant cash reserves” to survive the shutdown past a few weeks and could close permanently.

“I think the federal government has made it exceptionally clear that the school system can’t rely on it to execute its core function consistently and equitably to ensure that dollars, congressionally mandated, get to schools in time to support teachers and students,” said Stone.

Major federal funding for schools is doled out on a quarterly basis, said Stone, the next one begins on Jan. 1, 2026. He truly hoped that the shutdown would end well before then. Stone bristled that the shutdown seems meant to merely sow confusion for families and students, eroding trust in public systems and schools.

“I am really worried about the healthcare cuts on services supporting students. I think the long-term impact of cuts to Medicaid or increases in costs that push families and kids off their healthcare plans could be really devastating,” said Stone, “so I understand what this fight is over and at the same time it’s really important for Congress [to] do its job and pass a bipartisan budget that reopens the government.”

Meanwhile, legislators in Congress on both sides of the aisle have ‘dug in their heels’ on political issues, leading to a stalemate for the last week with no end in sight. Democrats are hoping that their crusade for affordable healthcare by extending enhanced Obamacare subsidies will win them favor with the voting masses, while GOP leaders claim they will negotiate on the subsidies after the shutdown is ended. As of Oct. 7, the bill vote that would keep the government open through Nov. 21 has failed four times.

“This is day seven of the Trump shutdown of the federal government, and Democrats in the House and Democrats in the Senate continue to hold the line on behalf of the American people,” said House Democratic Leader Hakeem Jeffries said at his latest press conference on Oct. 7.

“Because we’re fighting to protect their healthcare in the midst of a crisis that has been inflicted upon them by Republicans from the very beginning of Donald Trump’s presidency,” said Jeffries. “Republicans have hurt everyday Americans in order to reward their billionaire donors. That’s what the One Big Ugly Bill was all about. Largest cut to Medicaid in American history. Stole food from the mouths of children, seniors, and hungry veterans in order to provide massive tax breaks — permanent in nature — for the wealthy, the well-off, and the well-connected.”

In the meantime, bedrock federal programs, like Supplemental Nutrition Assistance Program (SNAP), Medicare, and Social Security, as well as federal funding to state infrastructure, may suffer disruptions. And, as is anticipated with a government shutdown, millions of federal employees are furloughed and forced to work without pay until it ends.

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