June 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 June, and what lies ahead.

The U.S. Congress

The FY27 Appropriations Process Continues: The House Appropriations Committee held markups for the FY27 Labor-HHS appropriations bill on June 9th. An amendment was offered by Representative Steny Hoyer (MD-05) to level fund the Full-Service Community Schools (FSCS) grant program, with the support of Ranking Member Rosa DeLauro (CT-03) and Representative Summer Lee (PA-13); however, the amendment was rejected by the committee along party lines. The current House bill proposes the elimination of funding for youth mentoring programs, Ex-offender Activities, Full-Service Community Schools, and Title II-A (Supporting Effective Instruction State Grants), and English Language Acquisition. The bill decreases funding for Title I Grants to Local Educational Agencies by $1.9B to $16.5B and proposes level funding for $107.5M for YouthBuild activities, $290M to expand apprenticeships, and level-funding for $1.3B for 21st Century Community Learning Centers. This bill has passed committee and awaits a floor vote. The Senate does not have a scheduled markup for their FY27 Labor-HHS funding bill.

Representative Bonamici Proposes Impeachment of Secretary McMahon: On June 25th, Representative Suzanne Bonamici (OR-01) introduced a resolution to impeach Secretary of Education Linda McMahon, due to her actions of transferring multiple offices and 140 programs from the ED to various other agencies without Congressional approval.

White House

President Trump Issues Executive Order on Executive Branch Staff: On June 5th, the Trump Administration issued an executive order changing senior policy-influencing positions into Schedule Policy/Career positions. Schedule Policy/Career positions were put into place by the Trump Administration in 2025, emphasizing merit over political party, alignment with the President’s agenda, and increasing guidelines for dismissal based on misconduct or poor performance. This executive order could make it easier to fire the Department of Education staff.

First Lady Launches Support for Foster Care Youth Reaching Adulthood: On June 11th, First Lady Melania Trump announced the creation of Fostering the Future Accounts, a new financial resource established to empower foster youth to be fiscally autonomous in adulthood.

Executive Branch

On May 29th, the Office of Management and Budget released proposed changes for the Guidance for Federal Financial Assistance, which are the policies that govern the distribution and management of Federal financial assistance, including grants. The proposes changes include giving political appointees and the Administration more discretion in deciding to continue or discontinue federal funding. The rules are now posted for public comment, which are due on July 13th.

Judicial Branch

Judge Blocks the Administration’s Definition of “Professional Degree”: On June 24th, 2026, the U.S. District Court for the D.C. District issued a preliminary injunction blocking the U.S. Department of Education’s definition of a “professional degree” that qualifies federal graduate student loans and implements loan caps. This injunction occurs just days before the graduate student loan rules change on July 1st, 2026. The Department of Education will be unable to enforce this definition that excludes many specialized degree programs until a lawsuit challenging the changes is concluded. The injunction does not impact the implementation of loan caps or the eliminated Grad PLUS loan program, which will end July 1st, 2026.

The U.S. Department of Education

U.S. Department of Education Announces Four New IAA, Shifting Programs to HHS and DOJ: On June 14th, the Departments of Education, Health and Human Services (HHS), and Justice announced four new interagency agreements (IAAs). The Special Education and Rehabilitative Services Partnership with HHS will move programs from the Office of Special Education and Rehabilitative Services (OSERS). The ED’s partnerships with the DOJ are on Civil Rights, Student Privacy Protection, and Training and Advisory Services.

U.S. Department of Education and U.S. Department of Health and Human Services Announce Additional Grant Competitions Under Family Engagement and School Support Partnership: On May 29th, the Departments of Education and Health and Human Services (HHS) announced a new FY2026 grant competition for School Safety Enhancement.

U.S. Department of Education Approves Returning Education to the States Waivers for Vermont and Indiana: In mid-June, the Department of Education approved Returning Education to the States Waivers for Vermont and Indiana. These Waiver aim to provide state education officials with greater discretion over their federal education dollars. Vermont and Indiana now join Iowa and Louisiana in receiving approved waivers.

U.S. Department of Education Announces Student Loan Interest Rate Reduction: On June 18th, the Department of Education announced that starting July 1st, 2026, federal student loan borrowers enrolled in autopay will be eligible for a one percent interest rate reduction beginning July 1st, 2026, and ending June 30th, 2028. Borrows must be enrolled by September 30th, 2026, to qualify for the reduction.

The Department of Health and Human Services

SAMHSA Announces $40 Million For Eight Grant Programs: On June 11th, the Substance Abuse and Mental Health Services Administration (SAMHSA) announced $4M in funding opportunities for grant that work to prevent substance abuse, and address child trauma, suicide, and mental health.

U.S. Department of Health and Human Services, Office of the Surgeon General Releases Advisory on the Impact of Screen Time on Youth: On May 20th, the Office of the Surgeon General released an advisory and toolkit titled Warning on the Harms of Screen Use: An Advisory and Toolkit on How to Protect Children and Youth. This report highlights the link between excessive screen time to sleep disruption, mental health challenges, and other negative health outcomes among youth.

Education in the States

Layoff Warnings Hit Thousands of School Employees Due to Rising Financial Pressure: On June 14th, Education Week reported that seven of the nation’s largest school districts are looking to reduce staff due to financial pressures. Districts issuing layoff warnings, cuts, or not filling vacancies include Los Angeles Unified School District, Chicago Public Schools, Milwaukee Public Schools, and New York City Public Schools. These financial pressures are due to decreasing enrollment, rising la stem from declining enrollment, rising labor and material costs, and the expiration of federal aid awarded in response erial costs, and the expiration of federal aid awarded due to the COVID-19 pandemic.

IEL Policy Updates 📜

EPFP Fall 2026 Community School Cohort Application is Now Open: If you want to make a systems-level difference in your state or district, apply for the Education Policy Fellowship Program^TM (EPFP) Fall 2026 Community School cohort! You’ll have the chance to learn how to develop and execute a policy advocacy strategy with peers from across the country. Applications are due July 10th.

Tracking the States: Governors’ Education Priorities vs. Legislative Outcomes Check out IEL’s most recent policy resource! With the state budget deadline of July 1st rapidly approaching for much of the nation, this brief is a progress report on our 2026 State of the State Analysis. Roughly 77% of analyzed budgets reflected the governor’s education priorities named in their addresses, with literacy, CTE, free school meals, and early childhood as top priorities. Community Schools received strong investments by Maryland, California, and New Mexico.

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!