Congress is weighing major education funding cuts that could affect classrooms across the country — from programs for low-income students to teacher training and English learner services. With deadlines fast approaching, school leaders are bracing for potential fallout. What happens next could shape school budgets as soon as October.

California is entering a pivotal moment. A new teachers’ tax proposal, a high-stakes redistricting measure, and looming questions about the Fed’s independence all collide to shape the state’s future. Each carries big implications for schools, politics, and the economy, but the real story lies in how these forces interact. Discover what’s at stake and why leaders are bracing for major change.

State leaders have called a special election this November tied to redistricting, while a newly filed initiative proposes sweeping changes to California’s insurance market. Meanwhile, August revenues came in slightly above expectations, keeping the state on a stable footing for now. These developments could shape schools, local governments, and voters heading into 2026.

California leaders have called a November 4 special election to counter redistricting actions in Texas, aiming to protect representation and federal programs. Meanwhile, new polling in the 2026 governor’s race reveals shifting support, with two candidates breaking ahead but no clear frontrunner as a large share of voters remain undecided. Plus, a deeper look at California’s AI education push and looming energy challenges.

California’s political and economic landscape is shifting. With Kamala Harris out of the 2026 governor’s race, billionaire Rick Caruso is weighing whether to jump in. Lt. Gov. Eleni Kounalakis is changing course, and Gov. Newsom may push for a special November election on redistricting. Meanwhile, new tariffs are taking a steep toll on California’s economy, with potential ripple effects on jobs, budgets, and schools.

Kamala Harris exits the 2026 governor’s race. CalSTRS reports strong growth in the state’s teacher pension fund. And long-halted federal education funds are confirmed to flow to California.

California’s revenues remain above forecast, with personal and corporate tax receipts boosting reserves that may cushion future shortfalls. Meanwhile, former Assembly Speaker Anthony Rendon has entered the 2026 race for Superintendent of Public Instruction, joining a crowded field of 15 candidates who bring diverse education priorities to the statewide contest.

California’s 2026 gubernatorial race is already crowded, with 66 declared candidates vying for attention. Among them, Democrats Eleni Kounalakis, Antonio Villaraigosa, and Katie Porter are beginning to distinguish themselves. Meanwhile, CalPERS reports a robust 11.6% return—bringing its funded status closer to 80% as it rebounds from years of volatility.

Global tariffs may soon hit California’s classrooms. With $11B in added costs and a projected $12B state deficit, schools face delayed payments, rising construction costs, and more. The Teachers' Retirement Board is already sounding the alarm. Read how shrinking revenues and economic policy shifts could leave districts struggling to fund staff, facilities, and programs.

California’s 2026 gubernatorial candidates are largely quiet on K–12 education, despite growing challenges. While Tony Thurmond emphasizes funding equity, Steve Hilton pushes for phonics and accountability. Meanwhile, CalSTRS has released 2025 audit findings, revealing errors that could affect school district budgets and retiree benefits. Read more on what candidates aren’t saying—and what CalSTRS has uncovered.