The State of Federal Education Policy

A Shifting Landscape for Schools

If you were looking for stability, clarity, or a budget that makes sense, you were clearly not at the All Titles Conference 2025 last week in Los Angeles. Julia Martin, legal maestro from The Bruman Group, stepped up to the podium with the unenviable task of explaining the latest federal education policies to a crowd of administrators. Here's what I heard during her keynote presentation:

The heart of presentation centered on the uncertainty over federal funding, particularly for programs that support vulnerable student populations. Executive actions are reshaping the role of public education, focusing on school choice, restrictions on DEI initiatives, and a redefinition of civil rights protections under Title IX. All of this is happening against the backdrop of court challenges and administrative restructuring, making it a complex time for educators and policymakers alike.

A Game of Budget Chicken

With the federal government operating on a six-month continuing resolution until September 2025, lawmakers have bought themselves time to negotiate a long-term funding plan. But that doesn’t mean schools can breathe easy—budget proposals for FY 2026 include major funding cuts that could upend critical programs.

Among the most concerning proposals:

• A 20% reduction in Title I funding, which would significantly impact schools serving low-income students.

• The elimination of Title II and Title III, which would remove federal support for teacher professional development and English learner programs.

• Potential cuts to mandatory spending, including student loans and school meal programs.

While these cuts are not final, the reconciliation bill process could be used to push them through without bipartisan agreement. This means that schools may need to prepare for budget uncertainty well into the next fiscal year.

What’s on the Table?

Beyond budgetary concerns, several bills could further alter the education policy landscape. Some proposals are gaining traction, while others face steep opposition:

H.R. 649 - Whole Milk for Healthy Kids Act: This bipartisan bill, which has passed the House and is awaiting Senate action, would bring whole milk back to school cafeterias, reversing previous restrictions.

H.R. 28 - Protection of Women and Girls in Sports Act: Designed to restrict transgender athletes from competing in women’s sports, this bill failed to pass the Senate, though similar legislation may resurface.

H.R. 369 - States’ Education Reclamation Act: This highly controversial bill proposes abolishing the U.S. Department of Education, transferring its responsibilities to other federal agencies and providing block grants to states for education funding. While its chances of passage remain uncertain, it reflects a broader push

Executive Actions: A Policy Overhaul

While Congress debates funding, the administration is moving full speed ahead on executive orders that are reshaping the way federal dollars are used in education. Several key orders stand out:

"Expanding Educational Freedom and Opportunity for Families"

• Prioritizes school choice initiatives, directing federal funds to private schools.

• Instructs the Department of Education to revise funding allocation guidelines within 60 days.

"Ending Radical Indoctrination in K-12 Schooling"

• Prohibits federal funds from being used for programs promoting gender ideology or critical race theory (CRT).

• Calls for the elimination of federal support for DEI-related initiatives in schools.

"Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government"

• Establishes a strict biological definition of sex, impacting Title IX protections.

• Requires schools to revert to 2020-era Title IX policies, overturning the previous administration’s broader gender identity protections.

The Potential Elimination of the Department of Education

The administration has tasked Secretary Linda McMahon with preparing for the dismantling of the Department of Education (ED).

While this move would require Congressional approval, it signals a potential shift toward state-controlled education policy.

The Battle Over Federal Oversight

Beyond legislative and executive actions, administrative changes and court rulings are adding another layer of complexity.

Temporary Federal Funding Freeze:

In January, the Office of Management and Budget (OMB) attempted to pause all federal grant disbursements while conducting a review of programs linked to DEI, foreign aid, and gender-related policies.

The move was swiftly blocked by federal courts, and the administration was forced to rescind the pause.

Revised Federal Grant Procedures:

The appeals process for grant terminations has been adjusted, shifting review authority to Assistant Secretaries instead of independent judges.

Stimulus funding drawdowns now require states to advance local agencies before seeking federal reimbursement, creating potential cash flow issues for school districts.

New Title IX Enforcement Guidelines:

Following the Supreme Court’s Students for Fair Admissions v. Harvard ruling, the Department of Education has directed schools to eliminate race-based considerations in admissions, hiring, compensation, and scholarships.

Schools must comply or risk losing federal funding, though the administration has emphasized that compliance reviews will focus on voluntary adjustments first.

Court Challenges to Executive Orders:

A federal judge issued an injunction against executive orders restricting DEI funding, siding with plaintiffs who argue that the orders are unconstitutionally vague and exceed presidential authority.

This case, along with others, could ultimately determine the scope of executive power over education policy.

What It All Means for Schools

With so many moving pieces, school districts must stay agile and proactive. Some immediate areas of concern include:

Budget uncertainty: Schools relying on Title I, II, or III funding should prepare contingency plans in case cuts are enacted.

Instructional compliance: Programs related to DEI, CRT, and gender identity may face increased scrutiny, requiring districts to review their curriculum and professional development initiatives.

Title IX policy shifts: Schools may need to update policies on gender identity and student accommodations to align with new federal guidelines.

In the long term, the potential dismantling of the Department of Education could shift more control over funding and policy decisions to state governments. While this would increase local autonomy, it could also lead to disparities in education funding and program availability.

Looking Ahead: A Time of Change and Uncertainty

As Congress finalizes the FY 2026 budget, the administration continues issuing executive orders, and the courts weigh in on key legal challenges, the future of federal education policy remains uncertain.

For school leaders, the best strategy is to:

1. Monitor legislative developments, especially those related to funding.

2. Assess grant dependencies and prepare for potential funding reductions or delays.

3. Stay informed on legal rulings, as they will determine how executive orders are enforced.

4. Engage with state and local agencies to understand how these shifts will impact district operations.

While the only certainty is uncertainty, districts that stay informed and adaptable will be in the best position to navigate these challenges. More clarity is expected in the coming months, but until then, schools must be ready for anything Washington throws their way.