May 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 May, and what lies ahead.

The U.S. Congress

The House Appropriations Subcommittee overseeing the Department of Education FY2027 budget, which is included in the Labor, Health and Human Services, Education, and Related Agencies appropriations bill, will markup the proposed budget on June 9th.

A group of senators led by Senator Chris Van Hollen (D-MD) reintroduced the Full-Service Community School Expansion Act on May 12th, which would earmark $3.56 billion in funding over five years to expand Full-Service Community Schools programs across the U.S. A full version of the bill, which was developed in partnership with the Institute for Educational Leadership, home of the Coalition for Community Schools, and several other organizations, can be found here.

White House

Office of Management and Budget Withholds More Than $2B in Education Funds, Including FSCS: According to EducationWeek, the White House has not yet released FY26 federal funding for nearly three dozen of the Department of Education’s competitive grant programs, now more than seven months into the current federal fiscal year. This list of programs includes many that the Administration has demonstrated the intent to eliminate through fiscal budget proposals, such as Full-Service Community Schools, teacher preparation and training, and magnet schools.

The U.S. Department of Education

Secretary McMahon Announces $144M Boost for Students with Disabilities: On May 13th, Secretary of Education Linda McMahon announced that the Department would be distributing an additional $144 million in funding to state and local education agencies to use for Individuals with Disabilities Education Act programs.

U.S. Department of Education Announces Grant Competition to Empower States Through a Reimagined Comprehensive Centers Program: On May 12th,  the U.S. Department of Education initiated FY2026 grant competitions under the department’s reimagined Comprehensive Centers program, which will create a network of national, regional, and local centers “to provide capacity-building support [at] educational agencies and schools that improve instruction, expand opportunity, and close achievement gaps for all students.”

U.S. Department of Education and U.S. Department of Health and Human Services Announce First Grant Competitions Under Family Engagement and School Support Partnership: On May 8, the Departments of Education and Health and Human Services (HHS) issued FY2026 grant competitions for the Ready to Learn Program and Promise Neighborhoods Program. The grants will be distributed by HHS, and additional competitions will follow later this year.

State of New York v. McMahon: On April 21st, the U.S. District Court for the District of Massachusetts ruled that the 2025 lawsuit in which the State of New York and Somerville Public Schools (Massachusetts) challenging the Trump Administration’s efforts to dismantle the U.S. Department of Education could proceed to the discovery phase of litigation. Both parties will be required to produce requested documents and schedule depositions before the discovery period closes on July 31, 2026.

The Department of Health and Human Services

Final Rule Restoring Flexibility in the Child Care and Development Fund: On May 12th, the HHS issued a final rule amending its regulation of the Child Care and Development Fund by eliminating a cap on family co-payments, removing a requirement that providers are paid based on enrollment, and permitting the use of grants and contracts to conduct some program services.

Notice of Proposed Rulemaking Restoring Flexibility to Support Head Start Program Access: On May 12th, HHS issued a notice of proposed rulemaking related to the Head Start Program Performance Standards. The new rule will eliminate wage and benefits standards—comparable pay scaling, healthcare, paid time off, and others—issued in 2024 by the Biden Administration. Instead, the standards would return to a “plain reading of the statute” that sets the federal minimum wage as the only wage benchmark for programs to meet. Public comment on the proposed rule is open through June 11, 2026.  Also, May marks the 60th anniversary of the Head Start program!

IEL Policy Updates 📜

  • EPFP Fall 2026 Community School Cohort Application to Open May 29th: If you want to make a systems-level difference in your state or district, apply for the Education Policy Fellowship Program 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 due July 10th.
  • 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! 

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