January 23 Policy Updates

A new bipartisan federal funding proposal signals congressional support for stability in education programs, pushing back on major restructuring at the U.S. Department of Education while prioritizing predictability for schools and states.

A Bicameral Bipartisan Minibus Bill

This week, the U.S. House and Senate Appropriations Committees jointly released a bipartisan Fiscal Year 2026 spending bill covering multiple federal agencies, including the U.S. Department of Education. The proposal largely maintains current funding levels, signaling congressional resistance to the administration’s requests to reduce the department’s budget and consolidate K-12 programs into block grants. While overall funding remains stable, the bill includes targeted changes–most notably a decrease in Education Innovation and Research funding and increased investments in early childhood education, including an $85 million increase for Head Start.

The bill also places statutory limits–though not an outright prohibition–on the administration’s ability to transfer Department of Education funds or functions to other agencies. In addition, it requires biweekly briefings on the implementation of existing interagency agreements, reflecting bipartisan concern about transparency and administrative capacity. New language also emphasizes the importance of adequate staffing levels to ensure programs can operate effectively and explicitly requires the timely release of state formula grant funding for FY26, along with advance funding for FY27. These provisions appear to be designed to reduce uncertainty for states and school districts following recent disruptions and delays. 

This week, the House voted to pass the appropriations package this week. Next, it will head to the Senate. With a January 30 deadline approaching, the timeline for passage is tight. Still, the bill represents a bipartisan effort to provide stability and predictability for education funding–an important indicator for states and districts planning budgets, staffing, and services for the coming school year.