Federal staff cuts at the U.S. Department of Education could stall key student programs, from aid to civil rights oversight, leaving California districts to shoulder more. Yet rising state income tax withholdings may offer a bit of relief to the state’s strained budget.

From workforce housing shortages to interest rate shifts, two powerful forces are shaping California’s education landscape. Learn how new state laws are helping districts repurpose land for staff housing and how the Federal Reserve’s changes could impact funding for schools across the state.

California’s 2026 Governor’s race is shifting as candidates drop out and new challengers emerge. Meanwhile, a federal government shutdown could squeeze the state budget, stalling housing projects, slowing consumer spending, and weakening school funding. Read how these developments may shape both Sacramento politics and local classrooms.