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.
While federal money contributes only a small part of most school budgets across the U.S., half of the revenue for the Chinle Unified School District—spanning 4,200 square miles in the heart of Navajo Nation—comes from the federal Impact Aid program. Most districts typically depend on local property taxes for funding teacher salaries and building upgrades, but districts that serve Native American reservations, military bases, or other federal lands have fewer options since federal land is tax-exempt.
The federal government typically provides about $1.6 billion annually in Impact Aid. However, this financial lifeline has been suspended due to the current shutdown, forcing schools to eliminate several programs and consider deeper cuts in the near future.
“The kids maybe are going home and not eating, because these are the only three meals they may get in a day,” said Quincy Natay, Chinle’s superintendent. “All of those programs are on hold and we’re looking at, ‘What programs can we eliminate?’”
Food assistance for families has also been disrupted amid the shutdown. While two federal judges have ordered the government to disburse SNAP benefits, there are warnings that it could take weeks to resume partial payments.
The Impact Aid funds traditionally start flowing before the school year, but this year the payments are delayed until the government reopens. Schools have expressed concerns regarding their reliance on these funds, which are critical for maintaining teaching staff, implementing full-day kindergarten, and managing essential programs for students.
Natay warned that the district may have to take loans just to meet payroll if the situation does not change, as the $30 million from Impact Aid is integral to the district's operation. Meanwhile, multiple districts have been forced to dip into reserves or seek alternative funding while waiting for guidance from the Education Department amid their furloughs during this shutdown:
“Several of our districts are scaling back,” stated Cherise Imai, executive director of the National Association of Federally Impacted Schools. “They’re going into their reserves or whatever other funding they can use to meet payroll.”
Calls for action have been made by several Democratic Congress members from Arizona stressing the need to reverse layoffs among crucial staff for the Impact Aid program affected by the shutdown.
