While uncertainty looms over the future of the U.S. Department of Education officials at the Santa Monica-Malibu Unified School District (SMMUSD) say they're relatively shielded from potential federal disruptions, with federal funding accounting for a small percentage of their overall budget.
"About 3% of our budget comes from the federal government, which is about $2.8 million," said Dr. Antonio Shelton, superintendent of the district, during a recent interview. That relatively small percentage, combined with the district's community-funded status as a basic aid district, gives SMMUSD a buffer that many other districts across the nation lack.
This financial cushion comes at a time of significant upheaval at the federal level. President Donald Trump signed an executive order last month calling for the dismantling of the Education Department, moving to fulfill a campaign promise to return educational authority to states and local communities.
The order directs Education Secretary Linda McMahon to "take all necessary steps to facilitate the closure of the Department of Education" to the maximum extent permitted by law. However, eliminating the department entirely would likely require congressional action, a potentially lengthy and difficult process.
The Trump administration has already begun reducing the department's footprint, cutting staff by half and overhauling much of its work. The Department of Government Efficiency, led by Trump adviser Elon Musk, has terminated dozens of contracts deemed "woke" and wasteful, while gutting the Institute of Education Sciences, which collects data on national academic progress.
For Santa Monica-Malibu, federal contributions include the $2.8 million in direct funding plus an additional $2.5 to $3 million in special education funding that flows through the state.
While the amount might seem small compared to the district's overall budget of $292,246,240, officials note these funds have an outsized impact on vulnerable student populations.
Shelton said the district has four schools that qualify for the Title One program specifically supporting economically disadvantaged students.
"When we're looking at our Title One schools, they are our highest need students," Shelton explained. "You're talking about our low socioeconomic students, our students who may be homeless, our students that may be in foster care... Those students have specific needs."
These services include social-emotional support, additional counselors, behaviorists, and social workers — resources specifically targeted at the district's most vulnerable populations.
While some districts who take federal funding of up to 50% are going to be gutted by the federal cuts local schools are more impacted by educational oversight from the state, not federal authorities.
While there is some relationship between Federal standards and State mandates for testing, the trickle down effect to local students is minimal.
"That impact, to me, is pretty low, but we answer more so to the state," said Shelton
There have been points in time when federal education initiatives were a stronger force on local learning.
Cruz said more direct federal oversight existed years ago under the Bush administration’s No Child Left Behind Act but those programs have evolved or outright ended
Despite their relatively favorable position, district officials expressed concern about the long-term implications of dismantling the Department of Education, particularly for their most vulnerable student populations.
"I have fears that will these monies be here in a year or two?" Shelton said. "My fear is not as immediate right now, but looking to the future, what does this look like if a system such as the Department of Education is dismantled? How will we receive those monies? Who will facilitate that process to get those funds to the state?"
Educational experts have suggested any major changes would take 12 to 18 months to impact local districts, giving schools time to prepare. However, the lack of a clear transition plan has created planning challenges.
"We don't want to overreact, but we don't want to not react, because we want to prep for the unknown," Shelton said. "That sounds crazy to prep for the unknown, but that's what we are looking at."
Should federal funding disappear entirely, Santa Monica-Malibu officials say they could absorb the financial hit, but it would come at a cost.
"If worse came to worse, and we lost this money, we are in a position where we would be able to supplement with our general fund and mitigate the impact to these most vulnerable populations," Cruz said. "Not all districts are like that."
However, both officials emphasized that such adaptations would mean cutting valuable programs serving high-need students. The district could also face indirect impacts if neighboring districts with higher dependence on federal funding face severe cuts, potentially increasing demands on Santa Monica-Malibu's resources, particularly in special education services should families move students to areas with better services.
The Trump Administrations education reform efforts have extended beyond K-12 education navigates where American colleges and universities face even more direct federal intervention. The Trump administration has increasingly used federal funding as leverage to push compliance with its agenda.
Such as a recent revocation of waivers to California and Oregon colleges and universities that are using federal funds to provide services to undocumented students under the Performance Partnership Pilots for Disconnected Youth (P3).
An Associated Press analysis found that government grants and contracts account for nearly half the total revenue of some research universities, making them particularly vulnerable to federal pressure.
The administration has already taken action against several institutions. Trump canceled $400 million in federal research grants to Columbia University over its handling of pro-Palestinian activism and froze $175 million in federal funding for the University of Pennsylvania related to a transgender athlete on their swim team in 2022.
Nationwide, nearly 100 colleges are under investigation over their diversity, equity and inclusion programs, which the administration has deemed illegal, or due to allegations of antisemitism. These investigations through the Education Department's Office for Civil Rights could potentially lead to loss of federal funding.
While Santa Monica College has been warned by the Federal Government over investigations into allegations of antisemitic behavior on campus, the school has not been impacted by any federal funding cuts as of yet.
