Wednesday, January 07, 2026

Federal grant cuts over DEI leave rural students and teachers with few options to replace funding and its benefits

Canceled federal grant money is more difficult for rural
schools to replace. (Adobe Stock photo)
Efforts to root out inclusion and equity programming prompted the Trump administration to slash educational grants, leaving rural schools in a lurch. 

The lost grant money, which funded additions such as counselors to teach mental health education, additional academic tutoring options for students and learning initiatives for teachers, is difficult for rural communities to replace.

"Federal dollars make up roughly 10% of education spending nationally, but the percentage is significantly higher in rural districts," reports Annie Ma of The Associated Press. "When the funding is reduced, many districts have no way to make up the lost money."

Since President Donald Trump returned for a second term, his administration has cut millions of dollars earmarked for "programs supporting mental health, academic enrichment and teacher development," Ma writes. Republican lawmakers defended the cuts, saying the canceled grants focused on diversity and inclusion agendas -- not academics.

In Kentucky, the loss of grant funding means student counselors and supportive programming in rural counties will most likely come to a premature end, along with the student and staffing advantages they provided. 

In Shelby County, Ky., where federal spending "makes up about 18% of schools’ budgets," Ma reports. "The programs are not political, Superintendent Joshua Matthews said, and the funding loss only hurts students."

Matthews told Ma, "We’re not promoting anything one way or the other.”

The Department of Education recently announced a new round of mental health grants, but these funds require schools to hire psychologists, not counselors. Unfortunately, there is a national shortage of school psychologists and rural schools that attempt to recruit one will compete with larger, more urban schools.

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