March Policy by the People Federal Update

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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 March, and what lies ahead.

The U.S. Congress

FY27 Budget Begins: The FY27 federal appropriations process is in the beginning stages. The President’s FY27 Budget Proposal anticipated to be released on April 3rd.

FY26 Department of Homeland Security Funding: The future of the partial federal government shutdown remains uncertain as Congress debates passing a bill to fund the Department of Homeland Security.

The U.S. Department of Education

ED to Vacate for Energy Department: On March 26th, Secretary McMahon announced the Department of Education will downsize from its longtime headquarters, the Lyndon B. Johnson building in August 2026, moving to 500 D St SW. The Department of Energy is expected to move into the Lyndon B. Johnson Building. McMahon reasoned that this would save $4.8M annually in operating costs on a building that is 70% vacant, reflective of the changes to the ED since the start of the Trump administration. For more, read here.

ED and Treasury Announce IAA on Federal Student Aid: On March 19th, the Department of Education and the Department of the Treasury announced the Federal Student Assistance Partnership. In this new Interagency Agreement (IAA), the Treasury will assume operational responsibility for collecting defaulted Federal student loan debt and provide operational support to ED’s efforts to return borrowers to repayment. For more information, see here.

ED and Labor Announce First Grant Competition Under Postsecondary Education Partnership: On March 17th, the Departments of Education and Labor issued the Fiscal Year (FY) 2026 competition for the Talent Search Program, a grant to help students pursue secondary education or training, including Registered Apprenticeships. For more on this grant competition, see this press release.

ED Issues Notice of Proposed Rulemaking to Establish Workforce Pell Grant Program: On March 6th, the Department of Education issued a Notice of Proposed Rulemaking (NPRM) to establish the new Workforce Pell Grant program, move connected to the Trump Administration’s Working Families Tax Cuts Act. The new program proposes that it will enable students to enroll in high-quality short-term programs that offer education in high-skill, high-wage, or in-demand industry sectors or occupations. The program will start in July 2026. The public comment period is open until April 8th, 2026. For more, see this press release.

ED and Labor Declare February 2026 as National CTE Month: On February 27th, the Secretary of Education and the Secretary of Labor declared February 2026 as National CTE Month, celebrating opportunities where youth connect academic, technical, and employable skills.

ED Receives Recommendations to Reform IES: On February 27th, the ED announced a series of recommendations by ED Senior Advisor Dr. Amber Northern to reform the Institute for Education Sciences (IES). The report recommends that IES focus on urgent educational challenges informed by state and district leaders, focus less on multiple data collections and longitudinal surveys, prioritize multi-state awards, and narrow the scope of the What Works Clearinghouse to developing practice guides and tools. For more on this report, see this press release.

The Department of Labor

DOL Announced Core States for National Expansion of Employment Opportunities Network Initiative: On March 10th, the Department of Labor announced Colorado, Kansas, Kentucky, Maine, New York, Tennessee, and the District of Columbia will participate as “core states” in FY26 in the National Expansion of Employment Opportunities Network (NEON) initiative. Since its 2019 launch, NEON has provided states with technical assistance to expand sustainable job opportunities for individuals with mental health conditions. For more on this cohort, see here.

DOL Launches the ‘Make America AI-Ready’ Initiative: On March 24th, the Department of Labor announced the “Make America AI-Ready” initiative, a free artificial intelligence literacy course that will help American workers learn the basics of AI simply by texting “READY” to 20202. The course will deliver learning content and daily challenges via text and can be completed in a week for 10 minutes a day. For more, see here.

The White House

The First Lady Launches the Fostering the Future Together Global Coalition: From March 24-26th, the First Lady held the Fostering the Future Together two-day Global Coalition Summit, assembling representatives from 45 nations and 28 technology companies to discuss access to educational tools and protecting youth in digital environments. For more, see here.

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!
  • March for Children and Youth Month Hill Day: On March 25th, in partnership with First Focus on Children, IEL hosted over 20 EPFP Fellows for our March For Children and Youth Month. We were joined by 6 guest speakers, including staff for the Senate HELP Committee and Members of the House of Representatives, and Fellows were given the opportunity to advocate for their policy solution to Congress.
  • Join IEL Systems Fellowship: This nine-month fellowship (June 2026 – February 2027) supports teams of 3–4 local leaders as they work toward a shared systems-level outcome in their community. Through cohort learning, coaching, and collaboration with peers across the country, teams will develop and implement an action plan that strengthens practices, policies, or approaches impacting a network of schools. Apply here!
  • Celebrating Our Spring 2026 EPFP Fellows: At the end of March, we convened our Spring 2026 Educational Policy Fellowship Program participants in Washington, D.C. and virtually for our Washington Policy Seminar. Participants learned from panels of major players in education policy and led in simulations dealing with critical education policy topics. Interested in deepening your education policy knowledge and polishing your leadership skills? Stay tuned for our Summer 2026 EPFP application, coming soon!

Events & Resources

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