Although education policy has seen much change and activity in the last four years, newly elected and veteran leaders will encounter three key trends following the 2012 election: the federal government's lack of K-12 funding now that the stimulus dollars of the last few years have dried up; a split in the Republican Party concerning education reform and statewide education reform initiatives; and the undaunted political power of teachers unions, which won several victories at the state level. While the Obama administration's first term has focused on competitive grants and waivers, its second term will shift toward managing implementation and pushback while coping with staff shake-ups within the Department of Education. Reauthorization of the Elementary and Secondary Education Act in Congress will have to compete with other priorities, like the fiscal cliff, federal deficit, and health care reform. State-level leaders will have to continue to navigate the ongoing influence of teachers unions and popular reform issues like charter schools. All of these changes add up to an uncertain outlook for education reform over the next four years. (Contains 19 notes.)