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Fairfax County Public Schools is confronting another financial risk during an already difficult budget season: the possible loss or disruption of $168.1 million in federal aid.

The uncertainty followed a federal Office of Management and Budget memo directing agencies to pause spending while financial assistance programs were reviewed for alignment with the Trump administration’s priorities. Those priorities include ending diversity initiatives, rolling back environmental regulations and restricting immigration.

A federal judge blocked the freeze on Jan. 28. Yet community health centers, early childhood education programs and other organizations subsequently reported continued difficulty accessing federal money. A judge later rebuked the administration for failing to comply with the order and directed officials to release the stalled funds immediately.

FCPS leaders are also watching the administration’s threat to withhold federal funding from schools that do not comply with its ban on transgender female athletes competing in girls’ sports. They worry that school meals and other essential services could be caught up if federal aid becomes political leverage.

At a Feb. 4 budget work session, FCPS Chief Financial Officer Leigh Burden told the Fairfax County School Board that much of the district’s federal assistance does not explicitly fall under the administration’s executive orders. Still, the possibility of disruption has created growing concern.

“I just can’t imagine that cooler heads are not going to prevail, and that somebody’s going to decide that food services should also be exempt [from the pause],” Burden said, noting that Social Security and Medicare were excluded. “But for now we just have to wait and see.”

Hundreds of jobs and vital programs at stake

FCPS received $168.1 million in federal aid for fiscal year 2025, which began July 1, 2024. The money supports special education, student meals, workforce development and other programs.

The largest share, $58.2 million, goes to food and nutrition services, including reimbursements for meals provided to students who qualify for free or reduced-price meals.

Another $51.1 million supports special education programs, including services provided under the Individuals with Disabilities Education Act, along with career and technical education.

Grant-funded initiatives receive $56.5 million. That total includes Title I programs for students from low-income households, Title III services for multilingual learners and other self-supporting education programs. Adult and community education programs focused on workforce development receive an additional $2.3 million.

Nearly 700 FCPS positions are connected to federally funded programs, including special education teachers and instructors serving multilingual learners.

Local and state funding pressures mount

The federal uncertainty comes as FCPS is already struggling to balance its finances. Its fiscal year 2025 operating budget totals $3.7 billion. Superintendent Michelle Reid has proposed a $4 billion budget for fiscal year 2026 that includes a 7% teacher raise but does not cover administrators represented by a separate bargaining unit.

School officials say the proposed spending would largely maintain existing operations while leaving billions of dollars in delayed capital projects unaddressed. As construction and renovation costs rise, postponed school improvements are expected to become more expensive.

It remains uncertain how much of Reid’s request Fairfax County can fund. The county faces an estimated $292.7 million budget gap amid declining commercial real estate tax revenue and increasing costs for staffing and infrastructure.

County leaders also contend that Virginia owes FCPS nearly $500 million in additional K-12 funding. They point to a 2023 Joint Legislative Audit and Review Commission study that concluded Virginia funds public schools below their actual spending and staffing needs.

JLARC reported in December 2024 that Fairfax County received $838 million in Standards of Quality funding for fiscal year 2024, the largest allocation of any school division in Virginia. But because Fairfax had “by far” the most K-12 students, its allocation amounted to $4,867 per student—less than all but 13 other divisions.

The district expected a clearer picture of its finances on Feb. 18, when Fairfax County Executive Bryan Hill was scheduled to present his proposed fiscal year 2026 budget.