Impact of Federal Education Policy Changes on States in 2025
Explore the repercussions of the 2025 Federal Education Policy changes on states, including downsizing of the Department of Education, budget implications, and shifts in funding priorities affecting programs like ESSER and Title I. Stay informed about the evolving landscape of education governance and resource allocation at the state level.
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Presentation Transcript
JUNE JUNE 2025 2025 Federal Education Policy & Its Impact on States Tara Thomas, Government Affairs Manager AASA, The School Superintendents Association
Department of Education Literacy, school choice and returning education to the States.
Downsized but not eliminated The Executive Order from the President states that The Secretary of Education shall, to the maximum extent appropriate and permitted by law, take all necessary steps to facilitate the closure of the Department of Education and return authority over education to the States and local communities while ensuring the effective and uninterrupted delivery of services, programs, and benefits on which Americans rely. Reduction in Force (RIF) about 50% of staff (Currently in litigation and issued a preliminary injunction) Relevant for states: National Center for Education Statistics eliminated Office of State & Grantee Relations eliminated Office of English Language Acquisition eliminated
Department of Education ESSER Late Liquidation: Abrupt change puts future of ESSER funds in question. States had to resubmit project-specific requests for extensions or late- liquidation Grant Cancellations and Discontinuations: Including mental health and teacher preparation grants Supplemental Grant Priorities: Evidence-based literacy, Expanding education choice, and Returning education to the states: will enable the Department to prioritize state applicants in competitions where they qualify as eligible entities or can endorse other types of entities.
FY25 Full-year continuing resolution passed in March Delayed allocation on Title I, IDEA and REAP Titles II and IV, along with many other programs, still unknown FY26 Skinny budget released last month Cuts ED funding by 15% Level funding of IDEA and Title I Consolidates 18 programs into a single K-12 education block grant Eliminates Title III, special programs for migrant students, TRIO, GEAR UP and Teacher Quality Partnership Grants
Budget Reconciliation Bill One big, beautiful bill House passed its version on May 22 Most notable for K-12 education: Educational Choice for Children Act which would establish the first nationwide voucher program for K-12 education. Available to families up to 300% of median gross income (90% of families in America are eligible) for any K-12 expense including full tuition at ANY private school and for expenses related to homeschooling Dollar-for-dollar tax credit $20 billion for 4 years ($5 billion each year)
Budget Reconciliation Bill Higher Education: Sets limits and changes requirements to Pell Grants Streamlines student loan and repayment options Establishes short-term or Workforce Pell Grants Increases endowment tax Creates risk-sharing policy for institutions However, most significant changes for states are through cost shift changes in both Medicaid and SNAP
What Else to Watch? Assessment and Accountability Student Privacy Supreme Court cases Workforce development and CTE
