ASBO International Advocacy Resources

Healthcare costs have surged in the years following the COVID-19 pandemic, placing substantial financial pressure on U.S. public school systems. As school districts devote an increasingly larger share of their budgets to healthcare expenditures, fewer resources remain available for educational programs, educator salaries, instructional materials, facility improvements, and student services.

Compounding this challenge, district leaders face significant constraints in redesigning employee health benefits to reduce costs while remaining competitive in recruiting and retaining a high-quality workforce.

To better understand the scale and consequences of these pressures, AASA and ASBO International conducted a membership survey in Spring 2026. The resulting report, Rising Premiums, Falling Opportunities: The Budgetary Impact of Health Care Costs on School Districts, is the first national study of its kind examining how rising healthcare costs are affecting public school district budgets, staffing and operational decisions, and educational opportunities for students. (Read the press release here.)

Access the full report, executive summary, and a case study of how schools in Montana are navigating rising healthcare costs in the attachments.