The federal government shutdown, now in its second week as of October 14, 2025, is creating financial uncertainty for Perry County’s school district, Perry Central Community School Corp., chiefly because of possible delays to Impact Aid payments. This aid, provided by the U.S. Department of Education to districts with federally owned, tax-exempt lands, was reported at $167,208 for Perry Central in fiscal year 2025. According to the National Association of Federally Impacted Schools (NAFIS), delays in these payments can strain cash flows, forcing districts to borrow temporarily or curtail spending.

While NAFIS regularly warns of such risks, there is no public indication that Perry Central has yet taken those steps. Perry Central serves students across Perry County, including areas near federal lands such as those in southern Indiana. The district depends on Impact Aid to help offset revenue losses from non-taxable federal properties in its jurisdiction. On October 13, 2025, the school board held a budget adoption meeting; it is not publicly known whether district officials explicitly addressed shutdown-related risks during that session. Statewide, Indiana is projected to receive tens of millions in federal K-12 education funding this year, and some of those funds are now under review or delay because of federal budget uncertainties.

Perry Central’s share of Impact Aid represents a relatively small but meaningful portion of its discretionary flexibility in a predominantly rural district context. Beyond schools, the shutdown could also jeopardize other federally supported social programs.

In Indiana, programs like WIC and SNAP are subject to funding disruptions, and advocates warn that extended delays may increase food insecurity in communities already facing economic challenges. One prior claim that Indiana’s state budget draws 44 percent from federal sources could not be confirmed. More recent figures show about 13 percent of Indiana’s public school funding coming from federal sources, while the overall state relies on billions in federal grants each year. For Perry Central, delayed funding could affect non-routine costs such as maintenance, special projects, or discretionary programs.

However, there is no current evidence that teacher salaries or mandated services, such as special education, are under threat. In past shutdowns, some school districts nationwide have reported extended delays in Impact Aid payments, compelling them to take short-term borrowing measures.

But there is no record of Perry Central having faced such issues in the past. As the shutdown continues with no congressional resolution in sight, Perry County residents and stakeholders are encouraged to engage with federal representatives about the status of these payments. Meanwhile, Perry Central continues daily operations, though fiscal pressures remain a looming concern in this rural corner of Indiana.