April Policy by the People Federal Update - Institute for Educational Leadership

What’s Happening in Washington

*Please note: This update may not include all the changes currently happening in the federal government.

Here’s what’s happened in federal education policy in the month of April, and what lies ahead.

The White House

The Office of Management and Budget Releases 2027 Budget Proposal:  On April 3, the White House released its fiscal year 2027 budget proposal, outlining its spending priorities for the upcoming year to Congress. The White House requested $76.5 billion for the U.S. Department of Education in FY2027, a 2.9% decrease from the previous year, and highlighted the Administration’s continued efforts to “return education to the states.” Later this year, Congress will pass appropriations bills, where it has the discretion to adopt or reject the White House’s priorities.

The budget request includes increases to the IDEA State Grants program and Federal Pell grants. It also includes a new $2 billion “Make Education Great Again” (MEGA) grant program to “provide every State with additional funding to pursue locally-driven improvements in math and reading,” and an additional $500 million to support charter schools as part of the Administration’s broader pro–school choice push. During the FY2026 budget process, Congress rejected a similar proposal.

ED’s K-12 portfolio would see the largest reduction in funding under the White House proposal: 17 programs collectively worth $6.5 billion are proposed to be consolidated into the much smaller MEGA grant program, anticipated to include Promise Neighborhoods and 21^st Century Community Learning Centers. An additional 12 programs worth $2.1 billion would be eliminated, including Full-Service Community Schools and Statewide Family Engagement Centers.

The Department of Labor plans to consolidate its Reentry Employment Opportunities program into the Make America Skilled Again block-grant, requesting $0 in funding for FY2027, down from the $110 million approved in FY2026.

The Department of Justice requested $310 million for juvenile justice programs in FY2027, a 19% decrease from what it received for FY2026. Its budget request did not provide line-item numbers for the OJJDP youth mentoring program.

The U.S. Congress

The House Appropriations Subcommittee overseeing the Department of Education FY2027 budget, which is included in the Labor, Health and Human Services, Education, and Related Agencies appropriations bill, will mark-up the proposed budget on June 5th. Funding for the Department of Homeland Security is still in limbo. A budget plan to fund DHS was passed by the Senate on April 23, and now the House must approve the measure before each chamber can vote on the final funding package.

The U.S. Department of Education

ED and Labor Departments Announce First Grant Competitions Under Elementary and Secondary Education Partnership: On April 8, the U.S. Department of Education began the FY2026 grant competitions under the Teacher and School Leader Incentive Program and the Innovative Approaches to Literacy Program. The competition will prioritize “grantees who will focus on meaningful learning opportunities for students, including supporting families to provide at-home learning, pilot and/or scale innovative education workforce and employment models that emphasize merit, meet industry’s needs, and return education to the states.”

U.S. Department of Education and U.S. Department of Labor Announce Additional Grant Competitions Under Elementary and Secondary Education Partnership:  On April 16, the Department of Education began the FY2026 grant competitions under the Supporting Effective Educator Development (SEED) Grant Program and the Charter Schools Program Grants to State Entities (CSP-SE). The CSP-SE competition aims to support education choice and grantees who seek to “return education to the states” by funding new and expanded charter school systems and teachers who implement evidence-based practices. Additional competitions are anticipated to follow later this spring and summer.

ED Says Grad PLUS Loans Will Count Toward Lifetime Borrowing Limits: On an April 17 call with financial aid administrators, the Department of Education indicated that loans taken on under the Grad PLUS program—which is scheduled to end in July—will count toward the total an individual can borrow from the federal government in support of their higher education. This announcement is a change from previous ED guidance, which did not include Grad PLUS loans in the lifetime borrowing limit.

The Department of Labor

Secretary of Labor Steps Down: Secretary of Labor Lori Chavez-DeRemer resigned on Monday, April 20, following an investigation into allegations that she had abused her power in the role. The agency will be run by Acting Secretary of Labor Keith E. Sonderling until a replacement is confirmed by the Senate. 

National Apprenticeship Week: The U/S. Department of Labor celebrates the 12^th Annual National Apprenticeship Week from April 26 through May 2. Throughout the week, the Department of Labor featured 2,700 events highlighting the role of apprenticeships as a “key strategy to ensure the American worker is equipped for the skilled jobs of today and tomorrow.”

IEL Policy Updates 📜

Policy & Advocacy Resources and Tools: Whether you are looking for easy how-to guides to reach out to your federal or state representatives or to share the impact of Community Schools on your community, we have a resource for you! Also, check out our previous policy webinars for refreshers on the federal budget process, the role of data, formula grants, and more!