Welcome to the latest edition of This Week in Pensions! We have gathered the top stories about pensions and retirement security from the previous week.
Across the country, public education is under siege—from statehouses to Capitol Hill. Drastic budget cuts, sweeping policy changes, and a surge in school privatization efforts are undermining not just our public school systems, but also the public employees who keep them running and the students who depend on them. These efforts threaten to destabilize retirement security, strip communities of essential services, and widen inequality for future generations.
From Washington D.C. to Ohio to North Carolina, one thing is clear: elected officials are shifting public dollars toward private interests, while public school employees face mounting uncertainty over their jobs, benefits, and futures.
Here’s a closer look at how these interconnected developments are impacting education and retirement security across the country:
National–Congressional Budget Bill Undermines Public Education and Public Employees
The recent passage of the Reconciliation Bill (H.R.1) marks a new chapter in the ongoing attack on public education—and it has serious implications for students, educators, and public employees alike. Among its most damaging provisions is the establishment of a national school voucher program, which diverts public funds to private schools. Although states must opt in, the bill incentivizes the wealthy with a 100% tax credit for contributions to voucher funds, privatizing public schools and putting local public schools at risk, especially in rural and underfunded communities.
But it doesn’t stop there. This legislation also slashes essential social safety nets, such as Medicaid and SNAP, which many students and families rely on. Cuts to school-based health services and food assistance programs jeopardize student well-being and make it harder for educators to do their jobs.
By undercutting public education funding and weakening community supports, this bill also endangers the retirement security of educators and other public workers who depend on stable, well-funded school systems and state budgets. As the push to privatize education and other public services intensifies, so too does the threat to the pensions and benefits that help attract and retain public employees.
Ohio’s Public Education System and STRS Under Siege
In Ohio, the finalized state budget is a devastating blow to public education. Melissa Cropper, President of the Ohio Federation of Teachers, recently joined America’s Work Force Union Podcast to break down what’s at stake. The new budget guts the Fair School Funding Plan, shortchanging schools by $2.8 billion and sending over $1 billion in tax savings to high-income earners under a new flat tax system.
But the damage doesn’t end in the classroom. The State Teachers Retirement System (STRS) is also being restructured, shifting the STRS board composition to favor political appointees over elected representatives With this move, Ohio is reducing transparency and democratic decision-making in a system that tens of thousands of educators rely on for a secure retirement. This will silence the voices of contributing members and reduce teachers’ collective ability to steer their financial future.
Listen to the full conversation to learn more about the far-reaching consequences of these policy changes—and what’s at stake for Ohio’s educators and retirees.
25 States Sue Over Withheld Federal Education Funds—What’s at Stake for Public Employees and Students
In response to another major threat, 25 states—including North Carolina—are suing the U.S. Department of Education after a last-minute freeze on $6.8 billion in federal public education funds. North Carolina alone stands to lose $165 million, potentially resulting in the loss of more than 1,000 school jobs and disrupting programs that support students’ mental health, language learning, and after-school care.
The freeze comes at a critical time, with many rural districts—already underfunded—facing severe budget shortfalls. These funding cuts ripple outward, affecting local economies, putting public workers at risk, and jeopardizing long-term investments like pensions as states are forced into emergency financial decisions. The lawsuit, led by Attorney General Jeff Jackson, seeks to prevent further harm to students and school staff; however, the damage has already loomed large.
Why You Should Care
Public education and public service are intertwined. When funding is slashed, students suffer—but so do the educators, custodians, bus drivers, and countless other public employees whose labor and retirement depend on stable, well-funded systems. These recent developments are not isolated events; they’re part of a coordinated effort to undermine public institutions and prioritize private gain.
Now more than ever, we must support those who protect and strengthen public schools and public pensions. Our future—and the future of millions of children—depends on it.
Be sure to check back next Friday for the latest in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.