Cuts in Funding for Small Rural Schools

What is the reform based on?

According to the Ministry of Education and Science, when classes operate at full capacity (25-30 students per class), annual spending per student is about UAH 25,000. When a class has around 10 students, costs rise to UAH 34,000-36,000 per student (on average about 40% higher.) At the same time, National Multidisciplinary Test (NMT) results indicate that education quality in smaller schools is lower than in hub schools, partly because small schools often lack teachers, forcing some to teach subjects outside their area of specialization.

The education reform envisages changes to the structure of schools. Instead of the traditional schools combining Grades 1-9 or 1-11, once the reform is completed, the system will consist of primary schools (Grades 1-4), gymnasiums (Grades 5-9, basic education), and lyceums (Grades 10-12, specialized education). This division implies further consolidation of middle and upper schools while allowing small primary schools to remain close to home and reducing their operating costs, since in lower grades most subjects are taught by a single teacher.

However, as of the 2024/25 academic year, only 5% of gymnasiums and 7% of lyceums did not include lower grades (and some also include preschool sections).

Recent developments and what to expect this year

Since 2015, the government has encouraged communities to close small schools and transfer students to hub schools. Starting on 1 September 2025, the government no longer funds teacher salaries in schools with fewer than 45 students (except primary schools). As a result, such schools have been forced either to close entirely or become branches of hub schools. Branches may be primary schools or, at the decision of the founder (a village, settlement, or city council of an amalgamated territorial community, or a district council), gymnasiums serving Grades 5-9. A branch is not a legal entity and does not have its own bank account, so all financial operations are carried out by the hub institution. Teacher salaries are covered by the education subvention, while the community hosting the hub school is responsible for maintaining the building.

If a small school remains an independent legal entity, its funding must be fully covered by the local budget. Starting in September 2026, funding will be discontinued for schools with fewer than 60 students.

As of January 2026, there is no official data on the number of schools that have been closed or reorganized. However, according to the Institute of Educational Analytics, in the 2024/25 academic year, Ukraine had 328 gymnasiums with enrollments of up to 40 students, of which 306 were in villages (11% of all rural gymnasiums) and 22 in cities (2% of all urban gymnasiums).

In cities, the closure of small schools is less painful because other schools are relatively nearby and the transport infrastructure is better developed. Therefore, we turn next to rural schools (Figures 1 and 2).

Between 2014 and 2021, the total number of rural gymnasiums declined by 30%, while the number of lyceums fell by 20%. Between 2021 and 2025, the reductions were 7% and 20%, respectively. The decline in the number of schools is driven by both territorial occupation and ongoing population decline and urbanization.

As shown in Figure 2, gymnasiums with 41-100 students are the most common type of school in rural areas. The second wave of the reform (the discontinuation of funding for institutions with fewer than 60 students) is likely to affect a significant share of these gymnasiums, as well as some lyceums with fewer than 100 students. Overall, gymnasiums with 41-100 students and lyceums with fewer than 100 students account for 39% of rural gymnasiums and lyceums (ranging from 14% in Kherson Oblast to 56% in Chernihiv Oblast). As shown in Figure 3, Lviv and Ternopil Oblasts have the largest number of small gymnasiums, so communities in these regions should prioritize preparing for the implementation of the reform.

Conclusion

Cuts in funding for small schools are part of a long-term process of adapting education to demographic realities. Given urbanization dynamics and current demographic trends, it cannot be ruled out that the funding threshold may rise again in the future.

Small schools are not only more expensive to maintain, but also deliver lower educational outcomes than larger schools. The planned discontinuation of funding for schools with fewer than 60 students will confront many rural communities with a difficult choice: either assume full responsibility for maintaining small institutions or integrate them into the hub school network. Under these conditions, it is important to hold an open discussion with community residents about available alternatives, taking into account both current and future numbers of children in the community and the condition of the transport infrastructure.