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Federal Policy Watch

Welcome to Federal Policy Watch, a regular blog series from OAESA designed to keep our members informed about federal decisions that directly impact PreK-8 education. These updates are provided by OAESA’s Federal Relations Representative, Dr. Nick Neiderhouse, and will highlight key policy developments, funding decisions, and national conversations shaping the work of school leaders. Our goal is to ensure you have timely, relevant information to navigate the shifting federal landscape with confidence and clarity.

Federal Relations Coordinator Meeting

September 14, 2026

FY27 Appropriations 

  • The current federal fiscal year ends September 30, and FY27 begins October 1. 
  • Congress passed a continuing resolution (CR) to keep the federal government funded at current levels through December 11, postponing final FY27 funding decisions until after the midterm elections. 
  • When Congress returns after the midterms, lawmakers can either: 
    • Complete FY27 appropriations during the remainder of the current Congress; or 
    • Extend temporary funding again and leave some or all final FY27 decisions to the new Congress beginning in January. 

Education Committee Activities 

  • Congress saw an unusual amount of education-related committee activity in late July and early August, with lawmakers advancing several bills related to Pre-K–12 education.
  • Congress is responding to issues that are also gaining attention at the state level and across the country, including cell phone restrictions in schools, artificial intelligence, data centers, screen time, and social media.

Senate Commerce Committee

      • The Senate Commerce Committee advanced the Kids Online Safety Act (KOSA), S. 1748, along with several other bills addressing children and technology. 
        • KOSA is similar to, but not the same as, the House’s, Kids Internet and Digital Safety (KIDS) Act.
        • The House KIDS Act provides additional safety features and parental controls on online platforms, prohibits targeted advertising to minors, and establishes age-verification requirements.
      • KOSA includes a “duty of care” that puts responsibility on technology platforms to proactively address potential harms to children and youth online.
  • There is limited time remaining in this session of Congress and that includes the  lame-duck session. While there may not be enough time to pass these bills through both chambers, it is encouraging that they have advanced through their committees.

Senate HELP Committee

  • There has also been a push on literacy, with the Senate HELP Committee advancing legislation focused on the science of reading through changes to the $194 million Comprehensive Literacy State Development Grant program.
    • The legislation would:
      • Implement universal early literacy screenings and intervention services.
      • Provide professional development and instructional coaching for educators.
      • Require districts to notify parents when students are at risk of performing below grade level in reading.
    • Local level funding could also be used to help school leaders better understand the science of reading.

Prohibiting Education Department Program Transfers

  • The Senate HELP Committee approved bipartisan legislation that would prohibit certain K–12 education programs from being transferred out of the Department of Education.
    • The bipartisan committee vote was viewed as encouraging.
    • Similar bipartisan legislation was recently introduced in the House.
  • Chairman Bill Cassidy (R-LA) lost his primary and will leave Congress at the end of this term. Between his departure, the House now out of session, and a short lame-duck session in November, the window for passing legislation this year is rapidly closing.

E-Rate Review

    • The Federal Communications Commission (FCC) has proposed a sweeping review of the E-Rate program.
    • E-Rate is funded through the Universal Service Fund and provides discounts that help schools and libraries afford internet connectivity and related services.
    • The FCC review is broad and will examine:
      • The program’s original purpose and continued need.
      • Prioritizing areas like rural communities.
      • Whether screen time limits, academic achievement improvement, or other additional conditions should be attached to E-Rate program.
    • The scope of the review is broader than initially anticipated and has raised concerns within the education community about the future of the E-Rate program.
    • NAESP has created an Action Alert template that allows members to submit comments to the FCC in support of E-Rate.
      • Members are encouraged to share their own E-Rate success stories.
      • Comments submitted to the FCC are publicly available.
    • E-Rate has played an important role in expanding school connectivity, although technology and schools’ connectivity needs remain though continue to evolve.
  • Read NAESP’s Policy Brief on the E-Rate program.

Proposed Head Start Changes 

  • The administration has proposed changes to Head Start requirements, including requirements related to literacy, class size, and home visits.
    • There are concerns about how these changes could affect the Head Start model amid efforts to broaden access to the program.
    • Head Start serves as a model for many other early childhood education programs, making its program requirements particularly important for all of early childhood education beyond Head Start centers.
  • NAESP released a statement on the proposed changes.
  • NAESP plans to provide an Action Alert and additional talking points in the future on the proposed Head Start changes.

U.S. Department of Education

  • 25 states now have Ed-Flex authority, with Arizona, Nevada, South Carolina and South Dakota approved by Secretary McMahon this summer. 
    • Ed-Flex allows state education agencies to waive certain federal requirements for districts and schools. 
    • States must apply to the U.S. Department of Education for Ed-Flex authority. 
    • Certain federal requirements cannot be waived, including maintenance-of-effort requirements and IDEA rules. 
    • Although Ed-Flex has existed for years, many states with the authority have not extensively used it. 
    • The expansion of Ed-Flex is part of Secretary Linda McMahon’s broader effort to return education authority to the states. 
  • Kelly Rogers, who served as acting assistant secretary for the Office of Special Education and Rehabilitative Services (OSERS), is stepping down. 
    • Rogers began serving in the role in May and had yet to receive a confirmation hearing. 
    • She held her position during the transfer of OSERS to the Department of Health and Human Services.
    • Her departure comes as the administration pursues plans to shift certain Department of Education functions to other federal agencies. 
  • The Department released its Learning Program Agenda and a back-to-school letter. 
  • Secretary Linda McMahon announced a national K–12 initiative addressing sexual misconduct by adults in schools. 
  • The Department of Education removed disparate-impact provisions from its Title VI regulations, changing how it evaluates discrimination under Title VI. 
  • The Department is moving out of their headquarters located at 400 Maryland Avenue and into a smaller space at 500 D Street SW. The Department of Energy will move into the former Education Department headquarters.
  • Staff are physically moving out of the building this month.

National Principals Month 

  • October is National Principals Month, and FRCs will have an opportunity to play a key role in this year’s NAESP activities.
  • This year’s theme is “Principals as Storytellers,” which connects directly to FRCs’ work as advocates.
    • FRCs can share stories about their students, staff, schools, and the principal profession.
  • Aaron Burd and J Anderson, Missouri FRC and executive director respectively, will participate in a podcast about hosting elected officials in schools as “Principals for a Day.”
  • A National Principals Month webinar is also being planned.
  • NAESP would like to highlight FRCs about their advocacy experiences and stories.
    • FRCs are asked to complete a survey about their advocacy journey, message, and impact.
      • The survey will collect names and states so NAESP can potentially highlight FRCs and their advocacy stories throughout October.

NSLAC 

Big Tech 

  • New York City and Los Angeles have taken steps to restrict student use of AI in schools. New York City announced a one-year moratorium on student-facing generative AI for students in K through eighth grade.
  • Meta reached a settlement of up to $17.1 billion with 47 states, Washington, D.C., and several U.S. territories over claims related to harms to children and teens on Instagram and Facebook.
  • Meta must implement new child-safety measures, including age-verification measures, stronger parental controls, limits on children’s screen time, and additional privacy and safety protections.
  • AFT and Microsoft have developed AI privacy standards for schools.

State Issues 

Federal Tax Credits

  • FRCs shared concerns about the Federal Scholarship Tax Credit program - the new initiative in the One Big Beautiful bill that takes effect next year which gives taxpayers a $1,700 tax credit for donations made to scholarship organizations within the state that will provide financial support to students for educational activities such as private school tuition or after-school tutoring.
    • New Jersey Governor, Mikie Sherrill is asking the states’ school leaders and educators to prepare their thoughts on whether the New Jersey should participate in the Federal Scholarship Tax Credit program.
    • In Oklahoma, concerns were raised that some private schools increased tuition as voucher funding became available, resulting in families paying similar amounts while schools received additional funding.
      • Vouchers can also be used for homeschool expenses, raising questions about oversight and how funds are spent.
    • In Michigan, there are current concerns about reducing the eligibility cap from 300% to 150% and providing clarity around Scholarship Granting Organizations (SGOs).
    • In Mississippi, a school choice proposal considered last year did not pass.
  • Many students who would have received vouchers were already enrolled in private schools.
  • Concerns included transportation and access for rural students and tracking where funding goes.
  • Virginia has opted into the Federal Scholarship Tax Credit program, which begins Jan. 1, 2027.
    • VAESP has raised concerns about accountability and tracking where funds go.
  • NAESP plans to release a policy brief on the One Big Beautiful Bill Act later this year.

Literacy

  • Nebraska considered a third grade reading bill modeled after Mississippi’s third grade reading policy.
    • The proposal would require students who do not meet the third grade reading standard to repeat third grade.
    • The proposal also included measures to strengthen literacy instruction and reading supports.
  • Mississippi passed the Mississippi Mathematics Matters (M3) initiative.
    • The initiative includes universal math screening but does not require students to repeat a grade.
  • Virginia is in the fourth year of implementing the Virginia Literacy Act.
    • Literacy programs and instructional materials must meet state requirements.
    • Virginia has not moved toward student retention as part of its literacy approach.

AI in Schools

  • In Oklahoma, parents can opt their children out of participating in student-facing AI tools.
    • Questions remain about where to draw the line between AI and algorithms already used in schools.
    • Examples include early literacy screening tools, IXL, and other educational platforms.
    • Google Lens has created challenges because students can use it to solve math problems.
    • AI is already embedded in many educational platforms.
    • Parents have raised concerns about student photos and data being used by AI platforms.
  • A Nebraska school district approved the use of a closed AI system.
  • In Rhode Island, K–2 students are moving away from Chromebooks, although many programs and curricula remain online.
  • NAESP’s Screen Time in Schools blog.

Federal Relations Archived Updates:

Questions can be directed to OAESA Federal Relations Coordinator: Dr. Nick Neiderhouse at nneiderhouse@rossfordschools.org

FY 27 Key Programs
FY 27 IDEA Funding
FY27-Other-Programs-Funding
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