In Chinle, Arizona, financial distress caused by the government shutdown has led to the suspension of after-school programs, including some that students rely on for meals.

Federal money typically makes up only a small part of most school budgets in the U.S. But at Chinle Unified School District — which spans 4,200 square miles (about 6,800 square kilometers) in the heart of Navajo Nation — half of the revenues come from a single federal program known as Impact Aid.

Most school districts rely on local property taxes for funding, which is less viable for districts on Native American reservations, where federal land is not taxable. As a result, the federal government contributes significantly through Impact Aid, totaling $1.6 billion annually nationwide for these schools.

Currently, however, due to the federal shutdown, this funding has been put on hold, forcing Chinle schools to cut programs and face a potential future of deeper financial distress.

“The kids maybe are going home and not eating, because these are the only three meals they may get in a day," said Quincy Natay, Chinle’s superintendent. “All of those programs are on hold and we’re looking at, ‘What programs can we eliminate?’”

Food aid for families is also disrupted, with two federal judges ordering the Trump administration to use contingency funding to continue Supplemental Nutrition Assistance Program benefits, but delays are expected.

Impact Aid, traditionally received at the start of the school year, has left many districts in tight situations, particularly Chinle, which relies heavily on this funding for salaries and educational resources. Without the payments, the district may have to borrow funds for payroll in the coming months.

Several Democratic Congress members from Arizona have urged the Education Department to reverse layoffs that recently affected Impact Aid staff, highlighting the closures and uncertainty many schools are experiencing. Their letter expressed concern over the potential harm to schools across the state.

If the shutdown continues, districts are at risk of making serious cuts to their programs and resources, impacting educational quality, and student welfare.