Local News

Austin ISD Cuts Jobs as Federal Education Grant Delays Strain Budget

Leslie Alexander
Senior Reporter
Updated
Jul 31, 2025 2:50 PM
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Austin Independent School District (AISD) is navigating a challenging landscape as it announces staff reductions due to gaps in federal grant support amidst growing concerns about federal education funding. On Wednesday, Superintendent Matias Segura updated families about the district's decision to proceed with personnel reductions due to a holdup in the distribution of more than $9 million in federal education grants.

Despite federal officials ultimately confirming that the funding would be available by July 25, the interruption has led the district to reorganize its staffing and lessen its dependence on uncertain federal resources.

“While this update offers immediate reassurance, it also necessitates careful planning for the future as we brace for possible funding cuts in the years ahead,” Segura wrote in a letter to families.

Segura reported that the district has engaged with 109 staff members whose roles are supported by these grants. The majority of those employees will continue in their roles until the conclusion of the fall semester; however, it is anticipated that certain positions will be phased out thereafter. The district hasn't confirmed how many jobs will be cut or which schools will be affected.

“These choices are approached with careful consideration,” Segura stated. “It’s promising to see that some of our impacted team members are opting for campus-based roles.”

Even with the reductions, specific programs backed by federal funding will persist, such as multilingual education, ACE Austin enrichment programs, and AVID college readiness initiatives. AISD has teamed up with local organizations to ensure the continuation of mental health and nursing services by utilizing alternative funding sources.

“This is the most recent federal policy to consider, but we understand it might not be the final one,” Segura added. “We are dedicated to providing you with the latest information as developments at the state or federal level affect our operations.”

This announcement follows recent developments indicating that AISD will eliminate over 170 Central Office positions as part of its strategy to address a $100 million budget shortfall. The district is actively seeking a sustainable financial strategy while maintaining services for students and families.

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