Zachary Trump, interim assistant director of business administration assigned from the Montgomery County Intermediate Unit, told the North Penn School District Finance Committee on Feb. 11 that federal revenues make up about 2% of the district’s 2024–25 budget and, while payments may be delayed because of recent federal memoranda and litigation, those funds are unlikely to be permanently rescinded in the short term.

Trump framed the discussion by listing major federal revenue streams that flow to the district: IDEA (Individuals with Disabilities Education Act) special education funds, Title I (elementary and secondary education), Title II (teacher and principal development), Title III (English learner services), Title IV (well-rounded education/technology) and Medicaid school-based reimbursements. He estimated Title I at about $2.0 million, Title II at about $400,000 and Title III at about $350,000 for North Penn.

The presentation summarized January federal activity after the Office of Management and Budget issued memorandum M-25-13, which froze federal disbursements pending agency reviews, and a subsequent M-25-14 that rescinded the original memorandum while maintaining some payment holds. Trump said lawsuits filed in federal courts produced temporary restraining orders and that, after multiple legal actions, federal payments had begun to flow again though local access problems were reported in some systems.

Why it matters: Trump told the committee that funds budgeted for 2024–25 were enacted in the federal budget passed in October 2023, obligated to states in spring 2024 and awarded to North Penn as of July 1, 2024, meaning those awards are “pretty locked in.” He cautioned, however, that funding for the 2025–26 budget depends on the next federal appropriations cycle; obligations for that year were not finalized and could be delayed or modestly reduced depending on congressional action and how states obligate awards to districts.

Trump addressed legal mechanics. He explained the president has limited authority under the Impoundment Control Act of 1974 to withhold unobligated funds but said rescinding already-awarded grants would generally require Congressional action and would depend on the terms of each notice of award. He noted the U.S. Department of Education was created by Public Law 96-88 (1979) and observed that many of the statutes establishing current federal K–12 programs predate the department, making abrupt elimination of program funding administratively complex.

Board members asked for local implications. Committee members and staff discussed the district’s special-education spending: Trump and others said IDEA payments to North Penn total about $2.7 million. Dr. Bauer and other staff estimated the district’s total special-education function (account 1200) is about $52 million, making the IDEA share a small percentage of total special-education spending. Committee members pressed whether lost federal money would require tax increases or service cuts; administration staff said maintaining current services without federal funding would require additional revenue (typically local property taxes) and/or program reductions, constrained by Act 1 index limits.

Trump closed by urging patience, reiterating that most immediate risk is delayed payments rather than outright loss for the current year, and recommending continued monitoring through state channels because federal funds flow to districts via the Commonwealth. He advised the board that any substantial change to awarded grants would likely require legislative action.

Ending: Committee members asked the administration to prepare “what-if” scenarios and to coordinate updates with the state and intermediate unit; no formal action was taken at the meeting.