February 20, 2025  |  Peter Long

Navigating Federal Education Funding Changes Part 3

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How MCH Strategic Data is Adapting 

Read Part 1 and Part 2 of this series for context on points below.
 

The landscape of K-12 education funding is undergoing a seismic shift. The Trump Administration’s policy changes and DOGE efforts are poised to dismantle the Department of Education (DOE), which would leave each state to determine its own funding path. The future of programs like Title I, IDEA, and other federal programs is uncertain, and K-12 product and service companies must stay ahead by proactively strategizing around these changes.

MCH Strategic Data has a long history with the Department of Education – we were there when it all started in 1980.  Like many data compilers, we use NCES (National Center for Education Statistics) National data sets that are provided by the Department of Education as a baseline for the data products we sell.  Like so many others, MCH is developing new plans and strategies to open up new opportunities, mitigate risks, support customers, and help the broader education community navigate these challenges with us.

The Changing Federal Funding Model

With the DOE on the chopping block, MCH has our own unique set of concerns:

1. Loss of NCES and Other Data Sources:

• The DOE's closure would mean losing NCES data, which has long served as the foundation for demographic, performance, and structural insights in K-12 education. This opens up opportunities for private entities like MCH Strategic Data to step up and begin to compile and validate this information independently.

2. State-by-State Policy Fragmentation:

• Without the ED, education governance would shift entirely to states, leading to 50 different sets of policies, standards, and funding rules. This could result in inconsistent reporting on school performance, funding methods, teacher staffing, and student populations, making nationwide data collection and analysis more complex. New standards and joint industry collaborations will undoubtedly emerge.

3. Shifts in State Priorities & Spending for K12:

• Without federal oversight, curriculum standards (like Common Core), accountability measures, and educational priorities (STEM, equity initiatives, special education, etc.) could change dramatically from state to state. Companies like MCH can step in here as well to provide deeper district-level insights by state.

MCH Strategic Data's Approach to Mitigating Risks

To navigate these risks, MCH is implementing several strategic initiatives:

1. Developing Proprietary Data Resources

In anticipation of losing NCES data, MCH is already investing to build proprietary data collection information that is critical to the market. This effort includes:

• School Demographics: Encompassing size, performance metrics, and program participation.
• Institutional Tracking: Identifying new, closed, and reorganized schools.
• Performance Benchmarks: Maintaining historical comparisons to support longitudinal analyses.

2. Leveraging AI to Monitor State Funding Trends

AI-driven analytics tools are being deployed to track funding flows across states. These tools will help:

• Identify emerging funding priorities.
• Analyze grant distribution trends.
• Forecast potential shifts based on legislative activity.

3. Partnering with Schools to Provide Insight

Schools will need to keep up with changes. MCH plans to:

• Host educational webinars for administrators.
• Offer customized data solutions to track district-level funding.
• Collaborate on case studies showcasing successful navigation strategies.

Opportunities Amidst the Change

While the disbanding of the DOE introduces challenges, it also creates new market dynamics that companies can capitalize on:

1. Creating a Private Education Data Consortium

With the potential for NCES resources disappear, MCH is exploring the creation of a consortium of data firms and schools and districts to collaborate on maintaining and enhancing education datasets. Such a partnership would:

• Ensure data continuity for longitudinal research.
• Establish industry standards for data collection and reporting.

2. Offering Custom Data Solutions

Schools and districts will need insights into how new funding mechanisms impact their operations. MCH can provide tailored datasets that help administrators:

• Identify eligible funding streams.
• Track expenditures across state and district lines.

3. Educating the Market

By positioning itself as a thought leader, MCH can offer resources like:

• Whitepapers detailing funding shifts.
• Interactive tools for tracking state-level funding variations.

Next Steps: Collaborating for Success

The transition from federal to state-managed funding is uncharted territory for most educators and industry players. MCH Strategic Data is committed to helping partners navigate this landscape by:

• Publishing a comprehensive whitepaper: Summarizing key policy changes and their implications.
• Launching a Funding Insights Platform: A digital hub for tracking funding developments in real time.
• Organizing Industry Roundtables: Bringing together stakeholders to share strategies and best practices.

Conclusion

As the DOE is phased out and education funding shifts to the state level, K-12 product and service companies must remain vigilant and adaptable. MCH Strategic Data is taking proactive steps to mitigate risks, harness opportunities, and support the industry during this transition. By leveraging advanced AI tools, developing proprietary data resources, and fostering collaborative partnerships, MCH is ready to be your trusted guide through this new educational era.

More Insight from MCH

Use our free ListBuilder tool to explore our education data, or Contact Us to strategize as a team.

• Read over Part 1 and Part 2 of this series.
• Check out our series on Selling to Schools and Districts here!
• Plan ahead with MCH's Top 25 Education Events in 2025 - Download here

About MCH

For nearly a century, MCH has empowered educational marketers with the data, tools, and solutions needed to thrive. Our cutting-edge technology continuously updates and verifies millions of educator records, ensuring you have the most accurate information for your campaigns.