January Policy by the People Federal Update

/ Building Pathways to Adulthood, Connecting Families, Schools, & Communities, Events, Federal Government, Leading Across Boundaries, Policy/Legislation, Preparing Leaders, Resources / By
  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 January, and what lies ahead.

The U.S. Congress

Appropriations Nears End: The House passed a series of minibuses, or spending packages, on January 22nd to fund the remaining parts of the federal budget, including $150 million for Full-Service Community Schools (FSCS), which was previously zeroed out by the House. Since the House version of the bills differs from the Senate-passed version in December, it must now go back to the Senate for a vote. Since the Continuing Resolution (CR) expires this Friday, January 30th, the House consolidated the minibuses into a single spending package to expedite the process and fund the government before the CR expires, avoiding a partial shutdown. A partial shutdown would affect only the federal agencies that have yet to be funded; those that have already been funded would remain funded. To learn more about federal shutdowns and their impact, check out this FAQ from the Congressional Research Service.

However, the events in Minneapolis this past weekend have caused Senate Democrats to publicly announce that they will not fund the Department of Homeland Security, which includes ICE, at the level proposed by the House.  Due to Senate rules, any spending bills must pass by a 60-vote margin, meaning that the spending package must have at least some bipartisan support. Since the House packaged the bills together, Democrats denying a vote on DHS funding means denying a vote on all the remaining spending bills. It’s unclear if the Senate will be able to pass the remaining agencies’ budgets before the CR expires.

The U.S. Department of Education

19 Full-Service Community Schools Grantees Receive Non-Continuation Notices: On December 12th, 19 Full-Service Community Schools Grantees received a notification that their grants would not be continued. Those 19 grantees were given 7 calendar days to submit an appeal. All sites appealed and were notified of the status of that appeal by December 31st. All were denied; however, one grantee, United Way of Treasure Valley in Idaho, had its denial overturned. Several sites have since initiated lawsuits to reverse the non-continuation decisions, including those in Illinois, Maryland, and North Carolina.

The ED Announces $169 Million for Improvement of Postsecondary Education: On January 5, the Department of Education announced the awarding of $169 million from the Fund for the Improvement of Postsecondary Education (FIPSE). These grant awards support the responsible use of AI to enhance learning and teaching, foster civil discourse on higher education campuses, reform the higher education accreditation system, and build capacity or high-quality, short-term programs. For more about these grant awards, see here.

ED Approves Iowa’s Returning Education to the States Waiver: On January 7, the U.S. Department of Education approved Iowa’s Returning to the States Waiver. This will allow state education officials to have more discretion over federal education dollars. Iowa’s plan stated its intent to focus federal resources on improving student achievement through the waiver reduction of compliance costs. Iowa is the first state to apply and get approved. For more information, see this press release.

ED Initiates 18 Title IX Investigations: On January 14, the U.S. Department of Education Office for Civil Rights initiated 18 Title IX Investigations in ten states. These complaints assert that the educational agencies under investigation maintain policies or practices that discriminate on the basis of sex. For a list of these school districts, postsecondary education institutions, and state departments of education, see here.

ED and DOL Further Integrate Programs: On January 15, the U.S. Department of Education and Department of Labor announced that beginning January 20, 2026, staff in the Higher Education Programs (HEP) Division of ED’s Office of Postsecondary Education (OPE) will be detailed to work at DOL. HEP grantees will soon transition to DOL’s Grant Solutions and Payment Management System. For more, see here.

ED Encourages Title I Schools to Maximize Program Flexibilities: On January 21, the U.S. Department of Education’s Office of Elementary and Secondary Education sent a letter to every chief state school officer to encourage Title I schools to consolidate their federal, state, and local funds and implement a schoolwide program. For more information, see here.

The Department of Health and Human Services

The Trump Administration Puts a Pause on Childcare Funds in Five States: In late December, as a result of claims that childcare facilities in Minnesota were defrauding the Federal Government, the Administration paused all childcare programs, including the Child Care and Development Fund (CCDF), Temporary Assistance for Needy Families (TANF), and Social Services Block Grants (SSBG) across the nation. However, the pause was scaled down in early January to five states: California, Colorado, Illinois, Minnesota, and New York. On January 13th HHS notified state agencies of the new requirements they must meet to have their funds unfrozen, including more rigorous processes to request reimbursements. The five states have sued to have the funds reinstated. The cases are continuing through the court system, and a federal judge has extended the temporary restraining order until February 6th.

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!
  • Free Quarterly Webinar: Join us for a free webinar on Tuesday, February 24th from 3-4:00 pm ET to discuss Building Rural Coalitions for State and Local Investment. You can register in advance for this webinar here.
Events & Resources

Webinars & Capacity Building Events 💻

New Research, Reports, & Analysis 📝

Start typing and press enter to search

Scroll to Top