August 2025 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 been happening in federal education policy in the month of August, and what lies ahead.

The U.S. Congress

The End of August Recess and the Race to Pass FY26 Education Funding: On July 31, 2025, the Senate Appropriations Committee marked up and passed the bipartisan FY26 Labor, Health and Human Services, Education, and Related Agencies Bill (Labor-H). The Senate chose to forego many of President Trump’s FY26 Budget recommendations, including the Simplified Funding Program. The Senate’s bill includes $135M for the Full-Service Community Schools Grant Program, a reduction from $150M in FY24. This bill also provides level funding for the following: $1.329 billion for the 21st Century Community Learning Centers program, $1.38 billion for Student Support and Academic Enrichment Grants (Title IV Part A), $20 million for Statewide Family Engagement Centers, $635 million for AmeriCorps State and National grants, and $20 million to continue Career Pathways for Youth Grants.

The House, which adjourned for the August Recess without holding a Labor-H mark-up hearing, is now expected to mark-up the FY2026 Labor, Health and Human Services, Education, and Related Agencies bill in early September.

Though funding for these programs is not yet secure, as both Chambers must pass identical versions of the budget, followed by the President signing it into law, it is an important step and a significant victory for Education Funding for FY26.

The U.S. Department of Education

Departments of Education, Labor, and Commerce announce Workforce Development Strategy: On August 12, the U.S. Departments of Education (ED), Labor (DOL), and Commerce (DOC) published a report titled “America’s Talent Strategy: Equipping American Workers for the Golden Age”, outlining the Trump Administration’s approach to workforce development. With a focus on five pillars, this strategy calls for education to be directly aligned with industry needs, emphasizing career awareness and exploration in middle school, and expanding opportunities for community and industry-connected learning experiences. The five pillars in the talent strategy include: Demand-Driven Strategies; Worker Mobility; Integrated Systems; Accountability; and Flexibility & Innovation.

Secretary McMahon Announces “Returning Education to the States” 50-State Tour: In support of President Trump’s Executive Order to “return education to the states,” on August 7, 2025, Secretary of Education, Linda McMahon, announced that she will be visiting all 50 U.S. states to hear from youth, teachers, and school leaders on education models and their impact on the needs of families and communities.

Nicholas Kent Sworn in as Under Secretary of Education: On August 4, the Senate confirmed Nicholas Kent as the 15^th Under Secretary of Education. Under Secretary Kent will oversee all policies, programs, and activities related to postsecondary education, vocational and adult education, and federal student aid.

ED Issues Notice of Proposed Rulemaking (NPRM) on the Public Service Loan Forgiveness Program (PSLF): On August 18, the U.S. Department of Education issued a Notice of Proposed Rulemaking for the Public Service Loan Forgiveness Program. This NPRM directs Secretary McMahon to propose revisions to the PSLF program and ensure the definition of “public service” excludes organizations that engage in activities that have a “substantial illegal purpose.” These changes may impact the eligibility of organizations or individuals working for such organizations to participate in the program. The public comment period closes September 17, 2025.

ED to Bring Back 260+ Office of Civil Rights Employees: On August 19, the ED filed an update as required by a federal judge’s order in Victim Rights Law Center v. U.S. Department of Education that directed that the ED be restored to “the status quo” so it can “carry out its statutory functions.” The ED will work to return 260 Office of Civil Rights (OCR) employees that were cut in its March reduction in force.

The White House

The President Issues Executive Order on Improving Oversight of Federal Grantmaking: On August 7, 2025, the President issued an Executive Order (EO) on Improving Oversight of Federal Grantmaking. This EO directs federal agencies to designate a senior political appointee to establish a new process to review new grant opportunities and discretionary grant competitions to ensure they are aligned with the Administration’s priorities. Discretionary awards like the Full-Service Community Schools Grant program are likely to fall under this EO.

White House Rescinds Guidance on the Rights of English Learners: In August, under the guidance of the White House, the ED rescinded a key 2015 “Dear Colleague” letter, which formerly provided schools and districts with guidance on meeting their legal obligations to serve English learners. While this change in guidance does not nullify the laws enshrining English learners’ rights, it does represent a shift in the Administration’s priorities for non-native English-speaking students.

IEL Policy Updates 📜

Full-Service Community Schools Coordinators Appreciation Week: Join us September 14-20, 2025, to celebrate Community Schools Coordinators! We invite you to coordinate Virtual and In-person meetings with your federal, state, and local elected officials to inform them of the positive impact of Community Schools and Community Schools Coordinators on students, schools, and communities. More information on how you can get involved in Coordinators Appreciation Week and Hill Day will be coming soon!

IEL Announces Inaugural EPFP: Community Schools Cohort: IEL launched the first Education Policy Fellowship Program^TM: Community Schools Cohort in August. The 54 Fellows selected for this year’s EPFP: Community Schools cohort hail from states in every corner of the country, and are representing school districts and individual schools, local education associations, and community organizations. To learn more about the EPFP program and the Fellows, check out our press release.

Policy & Advocacy Resources and Tools: Check out this link for a comprehensive list of resources, tools, and trackers on Community Schools outreach work. Whether you are looking for easy how-to guides on how to reach out to your Members of Congress, or how to share the Community Schools impact on your community, we have a resource for you! As Back-to-School Season continues, please check out our past policy webinars for refreshers on the federal budget process, the role of data, and more!