Complexity has long been the status quo for K- 12 school administrators navigating funding cycles. In FY26, that complexity has evolved into something more challenging: securing reliable funding in an environment where uncertainty itself has become standard operating procedure.
K–12 funding remains a mosaic of federal, state, and local dollars. Eligibility rules, compliance obligations, and application timelines are familiar constraints for seasoned administrators. What has changed is the core question districts are asking. It is no longer simply “where is the money” it is “when it will arrive” and “under what conditions”.
Recent policy actions have added new layers of ambiguity to the federal funding ecosystem. Questions around what resources may be allocated to student-facing programs, infrastructure investments, and long-standing grant programs have made unpredictability a defining feature of FY26 planning.
At the same time, ongoing national discussions about the future role and structure of the U.S. Department of Education and which agencies may assume responsibility for its functions have created unnecessary funding-related friction for districts already operating under tight margins.
In a recent K-12 Dive op-ed, Denise Forte, President and CEO of EdTrust, noted that state leaders are confronting confusion on multiple fronts, from shifting federal priorities to inconsistent reporting and accountability structures.
Forte pointed to a striking example in Florida, where state officials were unable to determine where 30,000 students were enrolled or how $270 million in voucher funds were being used. When paired with proposed Department of Education restructuring, this has pushed federal support into what many educators now describe as a “gray zone.”
Data Points
According to the State of Our Schools 2025 report, K-12 education is now second only to highways in terms of capital outlay for public infrastructure nationwide.
Much of this spending is financed through long-term debt and repaid annually through district education budgets. State and federal support is described in the report as “varied, unstable, and inadequate.”
In many cases, federal funding for major infrastructure improvements follows crises or natural disasters rather than proactive investment. FEMA alone awarded nearly $13 billion in grants to school districts between FY13 and FY23. While significant, this figure represents only a portion of the broader, ongoing funding needs facing districts.
School leaders understand that buildings and grounds require continual investment, not only to remain operational, but to support a safe, supportive environment that reflects a district’s duty of care to students, staff, and the wider community.
Despite federal uncertainty, overall K-12 spending continues to trend upward.
Long-Term Funding Trends (2002–2023):
Source: The Reason Foundation, K-12 Education Spending Spotlight
The takeaway is clear: funding growth is real but so are rising expectations. Districts are being asked to do more with more oversight, greater accountability, expanded safety responsibilities, and increasing operational costs.
Uncertainty is no longer an exception to plan around. It is the environment itself.
Virginia K-12 schools spend an average of $16,445 per pupil, totaling approximately $20.7 billion annually.
As illustrated in the chart above, the majority of K-12 funding in Virginia comes from state and local sources, rather than federal dollars.
Based on the most recent data available, total K-12 funding statewide equals approximately $20.89 billion per year, or $16,590 per pupil. The gap between funding and actual spending is roughly $183.4 million, or $146 per student.
From a taxpayer perspective, Virginia schools rely significantly more on state and local contributions (2.85% of taxpayer income) compared to federal sources (0.40%). Nationally, Virginia ranks 25th in K-12 funding and 26th in K-12 spending.
According to the Virginia Department of Education (VDOE), public schools are funded through a combination of local, state, and federal dollars, with additional funding opportunities sometimes provided through private-sector partnerships with school divisions.
At the state level, the Virginia General Assembly is responsible for distributing K–12 funding through its biennial Appropriations Act. General Fund appropriations represent the primary source of state support and are supplemented by retail sales and use taxes, Virginia Lottery proceeds, and other dedicated revenue streams.
Local governments (counties, cities, and towns) are also required to contribute their share to public education. These local contributions ensure that each school division can deliver an educational program that meets Virginia’s Standards of Quality (SOQ), which establish the minimum cost of providing a high-quality education for every student, regardless of location.
The SOQ funding formula relies heavily on the Local Composite Index (LCI), a measure designed to estimate a locality’s ability to pay for education. The LCI considers factors such as:
This index determines how education costs are split between the state and each locality. In practice, however, the formula has drawn increasing scrutiny.
A 2023 study commissioned by the General Assembly found that many Virginia school divisions were underfunded, citing structural flaws and outdated assumptions within the SOQ formula. The study concluded that Virginia provides less K-12 funding per student than both the national and regional average, resulting in an estimated $1,900 per-student shortfall. Neighboring states, including West Virginia, Kentucky, and Maryland, spend more per pupil.
The report also noted that the SOQ formula does not sufficiently account for higher-need or at-risk students, including those living in poverty.
Virginia is one of just nine states that use a staffing-based funding model, rather than a student-centered formula. Under this approach, funding is tied to prescribed staffing ratios rather than actual student enrollment or demonstrated need.
In FY21 alone, this model resulted in approximately $6.6 billion less in state funding than what local school divisions ultimately spent to operate their schools.
According to a recent VDOE report, all school divisions met or exceeded their required local effort in FY25. A prerequisite for calculating state funding under the SOQ formula. This compliance allows FY26 budget calculations to move forward, with updated projections expected in March 2026.
Despite this progress, state officials have already acknowledged that available funding may not fully meet district needs. Lawmakers have indicated that the SOQ baseline for FY26 will be at least $844 million, based on updated enrollment and revenue projections.
At the same time, a December 2025 presentation by the Department of Education estimated that Virginia schools would require approximately $1.2 billion over the next two years to address rising costs. Enrollment trends will play a significant role in determining final allocations.
While enrollment is projected to decline modestly, districts must still account for teacher pay increases, infrastructure improvements, and ongoing program enhancements. Complicating matters further, not all school divisions had submitted daily attendance data for FY25 at the time of the December briefing. These delays could impact final funding determinations.
The expiration of ESSER funding has intensified pressure on districts to sustain digital infrastructure and school safety initiatives without federal relief dollars.
According to the SETDA 2025 State EdTech Trends Report:
Source: SETDA 2025 State EdTech Trends Report
As a result, school safety now intersects directly with operational, instructional, and workforce planning priorities, making grants and alternative funding sources increasingly strategic for Virginia districts planning for FY26 and beyond.
Below is a curated list of federal programs likely to be relevant for Virginia districts entering FY26. Application windows vary and some FY26 deadlines are not yet announced at time of writing.
DOJ STOP Grant
COPS SVPP Grant
Homeland Security Grant Program (HSGP)
State HSGP
Nonprofit Security Grant Program (NSGP)
Stronger Connections Grant Program
At the time of writing, it should be noted that FY26 application deadlines for a number of federal grants that specifically fund school safety programs can either vary or have not been announced.
If that is still the case, then school administrators should ensure that they sign up for programs that are of interest at SchoolSafety.gov to ensure that they receive updates on new school safety-related grant opportunities when the window opens again for FY26.
Virginia spending is projected to increase in FY26 - FY27. However, the level of funding available is (at time of writing) still under discussion with media sources reporting that state schools will need at least $1.2 billion over the next two years.
This number is heavily dependent on enrollment data, with lawmakers noting that these numbers have dropped in recent years. On the flip side, there is a consensus within the VDOE that continued investments in areas that impact educational quality is a crucial part of its remit. School employee benefits and upgrades to existing K-12 safety protocols are, media sources said, likely to become more of a priority when the final budget is agreed.
School safety-focused grants include:
It is also worth noting that Virginia is one of several states that is currently considering the implementation of Alyssa’s Law in its K-12 schools. You can read our latest blog on the state of play for the integration of panic button systems in every U.S, school here.
The legislation in Virginia is deemed to be pending, although there have been several attempts to get this passed since it was first introduced in 2022. The bill currently has a delayed effective date for discussion of July 1, 2026.
Foundation & Private Sector Opportunities
Districts may also access safety-aligned funds through mission-driven organizations, including:
Subscription search engines (GrantWatch, GrantPortal) offer additional visibility, though often behind paywalls.
Grants are competitive and time-bounded. The strongest applications connect:
Kokomo24/7® supports districts in mapping funding opportunities to student safety and operational goals. Our team assists with identification, strategy alignment, and application support.
The FY26 landscape is not defined by lack of funds, it is defined by complexity and an increased level of uncertainly as to what the federal funding process will eventually look like. Districts willing to diversify funding streams, anticipate federal shifts, and accelerate grant strategies will be better positioned to support safety, innovation, and student outcomes in the year ahead.
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