June 2025 Policy by the People Federal Update

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*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 for the month of June, and what lies ahead. 

The White House  

The President’s Fiscal Year 2026 Budget: On May 30th, the White House Office of Management and Budget (OMB) released the President’s Fiscal Year 2026 Budget. The President proposes cuts to many grant programs at the U.S. Department of Education (ED), including zeroing out the Full-Service Community Schools Grant Program and consolidating 18 competitive and discretionary grant programs into a K-12 Simplified Funding Program (SPF), including Promise Neighborhoods, 21st Century Community Learning Centers, Statewide Family Engagement Centers, among others. IDEA, or dollars that fund Special Education programs are recommended to be repackaged into a $15 billion Grants to States program, which consolidates several programs, including IDEA, Technical Assistance funding, and professional development programs. These proposed actions are requests to Congress for the FY2026 Appropriations process. 

The U.S. Congress  

Reconciliation Process Nears the End: The Reconciliation Bill for FY25 is currently in the U.S. Senate waiting for a final chamber vote, with Senate Majority Leader John Thune aiming for the bill to go to the President for his signature by the Fourth of July Recess. The House-passed bill extends President Trump’s tax cut from 2017 till the end of his term. To offset the cost of the tax cuts, the bill eliminates $1 trillion in spending over the next 10 years including the House’s Education and Workforce Committee’s Student Success and Taxpayer Savings Plan. This plan accounts for $350 billion in spending reductions by changing eligibility requirements for the Pell Grant, ending PLUS loans, changing repayment plans, and instituting a risk-sharing requirement for universities.  

Fiscal Year 2026 Appropriations Process Begins: With the release of President Trump’s budget on May 30th, the FY25 Appropriations process has begun. Currently, five of the twelve Appropriations bills have been passed in the House. The House Appropriations Committee is scheduled to hold a markup of the FY2026 Labor, Health and Human Services, Education, and Related Agencies bill on July 24 at 10:00am ET. The Senate has yet to announce its mark-up schedule. 

The U.S. Department of Education  

Congress Democrats Push Back on Transfer of ED Funds: On June 18, four Democratic lawmakers sent a letter demanding the Secretary of Education, Linda McMahon halt plans to transfer the administration of a suite of adult education grants from the ED to the Department of Labor. This letter, signed by four of the top Democratic Senators and Representatives on Senate and House Appropriations committees and the House Education and Workforce Committee, argues that the Secretary does not have the authority to move Congressionally appropriated funds to another federal agency. This is a continuation of the conversation on the two letters of Memorandum of Understanding (MOU), moving over the oversight of student loans to the Department of the Treasury, and adult education grants to the Department of Labor. These actions have been put on hold after a federal judge blocked broader efforts to dismantle the ED.

States may Spend Down Remaining American Rescue Plan Funds: On June 26, the ED announced it is reversing the Trump Administration’s March 28 order to end the reimbursements of COVID-era spending due to a federal court injunction from earlier in the month. Per the press release, “All states can continue to liquidate funds per any previously approved liquidation extensions in place prior to March 28, 2025.” 

The ED Announces Senior Advisor on IES: On May 30, the ED announced Dr. Amber Northern, on leave from the Thomas B. Fordham Institute, will serve as a Senior Advisor to the Secretary of Education. Her focus will be reforming the Institute of Education Sciences (IES), working with Acting Director Dr. Matthew Soldner.  

New Trump-Vance Political Appointees at the ED: On June 6, the ED announced seven new Trump-Vance appointees, including Dr. Lindsey Burke, formerly of The Heritage Foundation and lead author of the Education Chapter of Project 2025. 

The U.S. Supreme Court 

Students with Disabilities do not have to Demonstrate a Heightened Standard: On June 12, in unanimous decisions, the Court determined that students bringing forth a discrimination claim under the Americans with Disabilities Act or Section 504 of the Rehabilitation Act do not have to demonstrate a higher standard of discrimination. This case, A.J.T v. Osseo Area Schools, Independent School District No. 279, overturns a lower court ruling in which a student with epilepsy was denied accommodations by her school was required to have a stronger burden to prove “bad faith or gross misjudgment.” 

Supreme Court Upholds Funding for E-Rate Program: On June 27, the Supreme Court in a 6 – 3 opinion held that the $8 billion program which funds telephone and internet services to low-income and rural communities does not violate the Constitution. This program helps to fund the E-Rate program, which provides discounts to eligible libraries and schools to help underserved communities access telecom and internet services. 

Religious Exemptions in Schools Prevailed: On June 27 in a 6-3 decision, the Supreme Cout sided with parents seeking religious exemptions for their children from public school lessons or books with LGBTQ+ characters or themes. In the case of Mahmoud v. Taylor, the Court held that Montgomery County Public Schools (Maryland) cannot require students to engage in lessons that conflict with their parent’s religious beliefs. Though this case directly addresses Montgomery County’s policy, this ruling may have implications for school districts nationwide.  

Events & Resources 

Register NOW for our Education Policy Fellowship Program ™ (EPFP): Community Schools Cohort ✍️ 

  • Are you interested in Community Schools? Do you work to grow and/or sustain Community Schools at the school, district, community, county, state, or national level? Do you work for a school district, a nonprofit, intermediary, university, government, or philanthropy? Then, our Education Policy Fellowship Program (EPFP) program is for you! EPFP, IEL’s 60+ year-old program, is designed to build policy, advocacy, and coalition-building capacities to drive educational change. The deadline to apply is July 18th. Register here for our Community Schools Cohort! 

Webinars & Capacity Building Events 💻 

  • Youth Leaders on Mental Health on July 23, 3:00 pm ET. Hosted by Grantmakers for Thriving Youth and National Collaborative for Transformative Youth Policy 

New Research, Reports, & Analysis 📝 

IEL Policy Updates 📜 

  • IEL Releases 2025 State of the State Brief 
    The 2025 state-level legislative season is coming to a close, and there are emerging trends that impact Community Schools, family engagement, and related whole-child and youth development strategies. Over 60% of governors are promoting two or more education priorities, namely, workforce alignment and career and technical education (CTE), education funding alternatives, school choice, and cell phone bans. Access our new State of the States Brief here to learn more about 2025 state-level education priorities and policies. 

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