Discover How the ‘One Big Beautiful Bill’ Will Transform Opportunities for Students, Schools, and Colleges!

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In just six months, the Trump administration has significantly changed federal education policy. Under Secretary Linda McMahon, the U.S. Department of Education has slashed its staff by about half. Now, nearly $7 billion in grant funding for essential programs like after-school care and teacher training is on hold for review. This has left many districts in uncertainty about future funds.

On July 4, President Trump signed a major new bill, which imposes new obligations on the Department of Education. Here’s what students and schools can expect.

### School Vouchers Go National

For the first time, a federal school voucher program is included in this bill. This means parents can now use public tax dollars to send their children to private or religious schools, or cover educational expenses. Senator Bill Cassidy noted, “Parents should decide where their kids go to school.”

However, the program is not truly national. States must opt in, which means some, especially those that traditionally resist vouchers, might not participate. In recent surveys, voters in states like Kentucky and Nebraska have shown resistance to such measures, raising concerns about whether these programs drain resources from public schools.

Becky Pringle from the National Education Association stated, “This isn’t just a policy failure; it is a moral disgrace.”

### Medicaid Revisions Impact K-12 Schools

More than 37 million children are currently enrolled in Medicaid. New rules in the bill will tighten eligibility, making it tougher for some families to receive coverage. Jessica Altman, an expert at Georgetown University, warned that increased red tape could make it harder to access essential health services.

Cuts to Medicaid could also negatively affect funding for schools, as many rely on these funds to provide health-related services. A recent study found that around 80% of school districts anticipate layoffs if they lose Medicaid funding.

### Changes to Food Assistance Programs

The Supplemental Nutrition Assistance Program (SNAP) helps over 15 million children in the U.S. By altering eligibility rules and work requirements, this bill risks cutting food assistance for many families. Experts predict that about one million children might lose access to vital nutritional support. When families lose SNAP benefits, their children often cease automatic enrollment in free school meals.

### New Borrowing Limits for Students

The new law will implement substantial changes to federal student loans. It raises limits on Parent PLUS loans, allowing parents to borrow up to $20,000 per year for each child. However, the caps for graduate students will be significantly reduced, making it more difficult for lower and middle-income borrowers to cover expensive graduate programs.

### Child Tax Credit Adjustments

The bill also marginally increases the Child Tax Credit from $2,000 to $2,200, but only for families meeting certain income requirements. This still leaves many low-income families without support.

In summary, families could face an uphill battle in navigating these changes. More red tape, stricter eligibility guidelines, and funding cuts all threaten essential services for children and schools. As these policies come into play, the education landscape could shift dramatically, impacting families across the nation.

For more detailed information, check out reports from the Congressional Budget Office here.

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