In Chinle, Arizona, financial distress caused by the government shutdown has led to the suspension of after-school programs, including some that students rely on for meals.
Federal money makes up only a small part of most school budgets in the U.S. However, in Chinle Unified School District — which spans 4,200 square miles within the Navajo Nation — federal contributions, particularly from a program known as Impact Aid, account for half of its funding.
Unlike many school districts that depend heavily on local property taxes, Chinle’s unique status limits its ability to raise local funds for education. Federal land and reservation areas cannot be taxed, intensifying the district's funding struggles.
This year, the federal government’s $1.6 billion annual contribution through Impact Aid is on hold due to the shutdown, forcing schools to contemplate deep cuts and program eliminations.
“The kids maybe are going home and not eating, because these are the only three meals they may get in a day,” stated superintendent Quincy Natay. “All of those programs are on hold, and we’re looking at, ‘What programs can we eliminate?’”
The closure of after-school programs threatens food security for families as SNAP benefits have also been disrupted. Judges have ordered the government to use contingency funds for these benefits, but delays are anticipated.
Impact Aid typically disburses funds at the start of the school year, and its absence is keenly felt given the district’s $30 million dependency on it for salaries, kindergarten services, and operational costs. Natay has paused several construction projects and indicated that without payment resumption, the district may need to borrow to meet payroll.
Education Department personnel, responsible for addressing funding questions, are furloughed, further deepening the uncertainty surrounding financials for districts reliant on such aid. The National Association of Federally Impacted Schools has warned that without federal support, schools risk financial instability, necessitating a desperate hope that Congress resolves the ongoing impasse.
Susan Imai, executive director of the National Association of Federally Impacted Schools, noted that some districts have begun utilizing reserves to meet payroll as they traverse this uncertain terrain, with some members of Congress voicing their concerns over layoffs affecting Impact Aid programs.
As the situation develops, districts across the nation rely on federal decisions that could have dire implications on educational operations and student welfare.




















