June 2, 2025

Federal Disruptions Threaten Arizona’s Education Progress and Economic Future

In a moment where stability is needed more than ever, federal policy changes are creating instability and confusion across the education landscape—and Arizona students and families could face some of the steepest consequences.

A series of executive orders and proposals from the administration could undermine critical federal education programs, disrupting the systems that students and families rely on to pursue college, technical training, and career advancement. Among the most concerning actions and proposals:

  • Narrowing eligibility for student loan forgiveness
  • Proposing shifting student loan oversight to the Small Business Administration
  • Reducing the capacity of key programs in the Department of Education, including GEAR UP
  • Implementing widespread layoffs across the Office of Federal Student Aid and the IRS, impacting FAFSA, tax credits, and loan servicing

It is entirely possible to maintain stability for students and families while still making changes. It’s why we’re also concerned about further proposals eroding the educational foundation that Arizona has worked hard to build and is in the process of trying to improve. These include cuts to Title I (funding to ensure low-income students can succeed) and Title IV (financial assistance for postsecondary enrollment), rollback of Title IX protections (which protect against gender discrimination), threats to Head Start, and elimination of programs for international and first-generation students.

Why Arizona Is Especially Vulnerable

Arizona students disproportionately rely on federal support to make education after high school accessible. Programs like Pell Grants, FAFSA, GEAR UP, TRIO, and Public Service Loan Forgiveness aren’t optional add-ons—they are foundational to how Arizona students from low-income, rural, English learner, and first-generation backgrounds access college, technical training, or apprenticeships. Narrowing access to these tools will limit opportunity and deepen existing gaps.

Eliminating these programs would be devastating. In Arizona, GEAR UP alone has supported more than 61,000 Arizona students since 2000, providing academic support, mentorship, and career guidance. The program has also raised FAFSA completion, graduation, and college enrollment rates—especially for students who face systemic barriers to postsecondary matriculation.

If GEAR UP and TRIO are dismantled, decades of steady progress will come to a halt.

Ripple Effects Across Schools and Communities

These federal actions, conducted as proposed, could have both short- and long-term consequences. In the short term, more students may delay or abandon their pursuit of education after high school due to uncertainty and cost. In the long term, entire communities may see declining attainment rates, a less competitive workforce, and greater economic vulnerability.

Charter and public schools will have to do more with fewer resources. Community colleges and universities may face enrollment declines. First-generation college-goers will be left to navigate a fragmented aid system with less support than ever before.

A Threat to Arizona’s Economy

The fallout from the current and proposed shifts could also threaten Arizona’s Achieve60AZ Attainment goal—ensuring 60 percent of adults hold a degree or credential by 2030. Currently, the state sits at 49 percent and has been making steady, incremental progress. If Arizona falls short, the consequences could include:

  • Missing out on billions in potential revenue generated by more high skilled workers
  • Declining workforce readiness and increased challenges in attracting businesses in need of high-skill, high-wage labor to the state
  • Reduced economic resilience in the case of another recession

However, if we succeed in reaching the Achieve60AZ goal, the payoff is substantial: stronger communities, a more robust economy, and a brighter future for all Arizonans.

Protect Arizona’s Students and Education

Education Forward Arizona urges policymakers at every level to protect the systems that are relied upon by students and families so we prioritize student success, not partisan politics, as the foundation of Arizona’s future.

We must urgently strengthen and improve these vital programs to serve students, not dismantle them. We have everything to gain by keeping students at the center of our decisions. Let’s protect their future and Arizona’s.