Sector leaders are navigating a defining moment for American education.
SXSW EDU is a mainstay on the Luminary Labs event calendar. This year, our team was back in Austin catching up with partners and making new connections. On behalf of Siegel Family Endowment and the Walton Family Foundation, we also produced an event featuring the Learning Landscapes Challenge, a $2.2 million competition designed and produced by Luminary Labs. Now in Phase 3, five teams are prototyping infrastructure solutions that deliver and connect digital, in-school, and community-based learning experiences; at SXSW EDU, they shared how they are designing and building future-ready K-12 education environments.
As always, the conference offered valuable insights on topics ranging from AI integration to rural education, but at this year’s conference, the undercurrents were different. Attendees and many others invested in the future of American education were closely watching the news coming out of Washington, where the current administration is implementing plans to dramatically reshape education policy and funding. Yet these shifts were not often addressed on stage, making them feel like the unaddressed “elephant in the room.”
Over the three-day event, our team listened closely to understand how educators, school leaders, funders, and innovators are making sense of and navigating this defining moment. We’ve gathered these reflections to inform how we work with clients and partners, empowering them with deeper understanding and greater decision-making confidence. What’s true going forward will not necessarily be different from what was true in the past: Driving real impact in education will require both immediate action and visionary thinking — while continuing to pursue bold approaches to collaboration, funding, and innovation.
Navigating disruption requires decisive leadership and bold action.
Educators, funders, and innovators are experiencing mounting disruption. In the face of rapid policy changes and the potential for significant cuts to federal education funding, the sector needs courageous leadership who can speak directly to the impacts these changes will have on students and families. Though the U.S. Department of Education accounts for only about 10% of all education funding, reductions could disproportionately impact low-income students, students with disabilities, and critical education research that drives innovation.
Leaders are balancing long-term vision with short-term adaptation.
Education leaders may have to rethink near-term plans as they rapidly adapt to this changing landscape. It’s crucial to remain nimble in times of uncertainty, but approaches that are too reactive can undercut progress toward long-term goals. Creative solutions, new partnerships, and bold approaches can help sector leaders maintain forward momentum while remaining committed to their educational values.
Innovation is at risk, just when it is needed most.
Investing in the future of learning means investing in research and development (R&D). Even before the recent cuts to federal funding for education research, observers noted that a lack of investment in education R&D is holding back urgently needed innovation. Innovation isn’t a luxury to set aside until stability returns — it may be exactly what the sector needs to deliver those educational essentials more equitably and effectively. Especially when resources are scarce, supporting promising innovations through the critical “middle zone” between prototype and scaled solution may present one of the greatest near-term opportunities for maximizing impact.
Networked funding models amplify impact.
Funders have an opportunity to strengthen education support by reimagining how resources flow to innovators. At SXSW EDU 2025, we noted a number of donors who are embracing more collaborative funding approaches, such as venture funds and prize competitions, to build and extend networks of aligned partners. This strategy isn’t just about collaboration — it’s about maximizing efficiency and avoiding duplicate efforts. Intermediaries can provide shared infrastructure during times of resource scarcity and create communities of practice to drive stronger outcomes.
Systems thinking can yield creative policy and structural interventions.
Now more than ever, leaders can seek opportunities to reimagine the fundamental systems that shape our educational infrastructure. Though less flashy than other reforms, innovation in policy, procurement, and work-study programs can have significant impact. For example, embedding work-based learning requirements in state technology vendor contracts and implementing outcomes-based contracting can create new career pipelines and rapidly scale the most effective interventions.
Reimagined learning contexts can improve outcomes.
Facing troubling declines in student achievement and growing evidence of a school attendance crisis, education leaders are exploring and investing in more creative approaches to learning. Community-based learning environments like children’s museums and libraries offer immersive, interactive spaces that support learning through play and hands-on exploration. Similarly, programs that connect academic topics to community- or employer-provided priorities allow students to see greater relevance in their learning. The Learning Landscapes Challenge is just one example of how funders are accelerating solutions that connect digital, in-school, and community learning.
Bright spots deserve attention, too.
Educational transformation isn’t just about fixing what’s wrong; it’s also about upholding what’s working and scaling it. This means not only focusing on students’ individual strengths and helping students and communities thrive, but also expanding effective elements of existing solutions and systems. The dedicated teachers, researchers, and innovators committed to student growth and success are the sector’s most valuable assets. On view at SXSW EDU were many promising new tools we saw at the Expo that have the potential to improve student outcomes. Identifying and nurturing these bright spots — and supporting educators who can bring new solutions and ideas to students — is crucial for driving meaningful and sustainable change.
Looking ahead
Education stands at a crossroads. America needs bold and brave ideas — and honest conversations about how education happens, whether it’s funded and influenced by federal, state, or local entities. As we look ahead to next year’s SXSW EDU, the upcoming redevelopment of the Austin Convention Center offers an apt metaphor: old structures giving way to new possibilities. Just as the conference organizers will have to reimagine how they design the event to address the needs of the sector, the education community can reconsider how we convene and how to maximize our collective impact during times of significant change.
