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How Else Will the Big Beautiful Bill Impact Schools?

May 30, 2025

Written by Sasha Pudelski, Director, Advocacy at AASA, The School Superintendents Association and member of the AESA advocacy team and Tara Thomas, AESA Government Affairs Manager

While AESA’s advocacy regarding the budget reconciliation package has been laser focused on cuts to Medicaid and the creation of a national school voucher program, we wanted to flag two other issues that could impact school financing and student health and wellness.


House Passage of H.R. 1 Threatens School Energy Savings and Student Nutrition

Last week, the House of Representatives passed H.R. 1, and with it, Republican lawmakers advanced proposals that could strip away critical energy tax credits currently benefiting school districts. These credits—available through elective pay—have helped schools modernize facilities, install solar panels, upgrade HVAC systems, and purchase electric school buses to lower energy costs and reduce emissions.

H.R. 1 threatens to halt that progress. If enacted, the bill would:

  • Eliminate credits for solar energy systems not yet built or under immediate construction,

  • End all tax credits for electric vehicles and charging infrastructure, and

  • Accelerate the phase-out of credits for high-efficiency ground-source heat pumps.

These changes would deny schools affordable pathways to modernization and cleaner energy solutions. To stay informed and support advocacy efforts, follow our partners at UnDauntedK12, who are actively working to preserve these vital opportunities for schools.


SNAP Changes Could Undercut Free School Meals and Burden Districts

In addition to targeting energy credits, H.R. 1 includes major changes to the Supplemental Nutrition Assistance Program (SNAP)—changes that would significantly impact schools and students.

The bill proposes:

  • Raising the work requirement exemption age from 54 to 64,

  • Narrowing the definition of "dependent children" from under 18 to under 7, reducing exemptions for parents and caregivers,

  • Requiring states to cover at least 5% of benefit costs and 75% of administrative costs—up from the current 50%.

The Congressional Budget Office estimates these provisions would shift $135 billion in costs from the federal government to states between 2025 and 2034. If states cannot absorb these costs, they may reduce benefits or tighten eligibility.

This has direct implications for schools. Fewer eligible families means fewer students automatically enrolled in free school meals through direct certification, which also determines eligibility for the Community Eligibility Provision (CEP)—a program that allows high-poverty schools to serve free meals to all students. Reduced access to CEP will increase administrative work for schools and families, and force some districts to revert to the more burdensome Free and Reduced-Price Lunch model.

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