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 Update -- January 2026

Federal Relations Coordinators Meeting

January 12, 2026

The House-Senate agreement for FY26 federal education funding has been announced. It is very good news for K-12 education!

The agreement includes $20 million increases each for Title I and IDEA-- nominal but symbolically important increases for the twin pillars of federal aid to K-12 schools and students.

Funding for the other main K-12 formula grant programs are maintained at current levels:

• Title I-A local grants: $18.4 billion (+$20 million)
• IDEA state grants: $14.23 billion (+$20 million)
• Title II Professional development state grants: $2.2 billion
• Title III English language acquisition grants: $890 million
• Title IV-A Student support and academic enrichment state grants: $1.4 billion
• Title IV-B Afterschool activities state grants: $1.3 billion

Head Start will also get the same as it did last year: $12.3 billion

Obviously this is a great outcome considering the House Appropriations Committee-approved bill cut Title I by $4.7 billion (25%) and eliminated both the Title II and Title III programs while the Trump administration sought to also eliminate Title IV-A and Title IV-B and consolidate three dozen other federal education programs.

The bill includes language to prevent the Department from withholding formula grant funding like they did last July which caused havoc with local budgets and planning. There is also language about the pending move of K-12 programs out of the Department of Education to the Department of Labor. While not an outright ban that congressional Democrats had sought, the bill includes language requiring congressional approval before funds can be transferred to another cabinet agency. The bill also requires regular, ongoing updates from the Department to congressional leaders about actions to move programs out of the Department. The bill’s committee report also notes that no authority exists that would allow the Department of Education to shift its fundamental activities to another agency.

Both the House and Senate each have to pass the bill. The House is in session this week. The Senate is out of session this week but returns next week. Temporary government funding expires on January 30 so the bill would need to be signed into law by President Trump by then.

Thanks to all of you who sent messages to your members of Congress in support of the Senate’s education funding plan and for keeping education in education, or who shared our action alerts with your colleagues and members. This deal is the direct result of members of Congress hearing from their local constituents in the education community. Well done!

Early January Federal Education Updates 

1. FY26 Funding 
   1. It is expected that the FY26 education funding bill will be completed and passed by the January 30 deadline when the current temporary government funding expires.
      1. The Senate Appropriations Committee-passed funding plan maintains current funding levels or provides nominal increase for most programs and is much more favorable to schools than the House committee-passed bill which eliminates many programs.
      2. One of the issues still to be decided is whether the bill will include a provision to prevent federal K-12 programs from being moved out of the Department of Education via Interagency Agreements
2. Interagency Agreements Concerns
   1. Secretary McMahon entered into a series of Interagency Agreements that would shift most federal K-12 programs and activities over to the Department of Labor (with other programs being sent to other cabinet agencies).
   2. K–12 programs should remain in the Department of Education to avoid a litany of risks from this shift:
      1. Significant disruptions in funding disbursements during the transition to the Department of Labor grant system
      2. Added layers of bureaucracy and red tape
      3. Confused lines of authority, compliance, and accountability
   3. By law, the Office of Elementary and Secondary Education (OESE) cannot be moved out of the Department of Education or eliminated. The attempt to move all of the program activities overseen by OESE is a workaround to this impediment. It is the next step in dismantling the Department of Education. Project 2025 recommends moving programs out of the Department of Education to other agencies as part of the larger strategy to abolish the Department.
3. Status Update
   1. Agreements have been signed – dated September 30, 2025
   2. No transition steps have been taken to date
   3. Any impact would first be seen at the state level and eventually reach districts and schools 
4. Action & Timeline
   1. NAESP sent out an Action Alert yesterday asking members to contact their elected officials to keep education programs in the Education Department during this critical time when the final decisions over the FY26 funding bill are being made.
   2. I sent an action alert out around Jan. 12  Action Alert and was encouraged to share the link with their colleagues and state affiliate members: https://naesp.quorum.us/campaign/150268/ 
5. Special Education
   1. Special education is not included in the Interagency Agreements although it is expected it will be moved the Department of Health and Human Services at some point. 
   2. IDEA is first and foremost an education law, not a disability law.
6. Advocacy 
   1. It is critical for school leaders to express their opinions and share their concerns with congressional representatives

ESSA Waivers & Block Granting

1. Returning education decision-making and flexibility to the state is a priority for Secretary McMahon
   1. She has invited states to apply for flexibility under existing waiver provisions
   2. Iowa applied for an ESEA waiver that was just approved
      1. Consolidates federal K-12 funds that can be used at the state level for state activities
      2. Grants Iowa “Ed-Flex” authority
         1. The state can waive certain federal requirements at the local level if districts request it.
   3. Indiana has a pending waiver application
      1. A much more sweeping plan than Iowa
      2. Block grants most ESEA programs at state and local levels
   4. Flexibility does not apply to special education and civil rights requirements.
   5. Many states are closely watching these waivers
      1. Interest in:
         1. Consolidating funding
         2. Increasing flexibility
         3. Waiving local requirements at district request
   6. States that currently have Ed-Flex authority
      1. CO, DE, IN, KS, MA, NC, ND, PA, TX, VT, WI

Federal & State Policy Watch: AI, Cell Phones, Screen Time

1. AI Executive Order
   1. Trump issued an executive order on AI that attempts to pre-empt state laws and regulations regarding AI
   2. It is unclear if this order applies to school regulations and policies
2. Cell Phone & Screen Time Trends
   1. Over 30 states have cell phone bans
      1. 26 in 2025 alone
   2. Policymaker activity around cell phone bans is still increasing
      1. Screen time concerns are expanding beyond phones to include devices and time spent in school such as Chromebooks and homework requirements.

State Sharing 

1. California
   1. Governor Newsom announced a recommendation to reorganize the California Department of Education and to make the State Superintendent of Schools an appointed position rather than the current statewide election setup..
   2. Republican House Majority Down to Two
      1. Rep Doug LaMalfa (R-CA) passed away. 
      2. Rep. Majorie Taylor Greene (R-GA) resigned last week. 
      3. The seats are vacant till special elections are held later this year.
2. There is tension emerging in response to immigration enforcement activity that occurred in Minnesota.
3. New Jersey
   1. New Jersey is now entering their lame duck session after a two-year legislative session 
   2. A new governor will take office, Governor Mikie Sherrill
      1. Focusing on expanding early childhood education programs, school funding, and implementing the recently passed literacy initiative
   3. In the last legislative session, Governor Murphy signed a bell-to-bell cellphone ban in schools 
      1. In New Jersey, there is emphasis on local government since there are 585 school districts
      2. Bell-to-bell restrictions being implemented at the state level was not something that the New Jersey school leaders wanted 
      3. Charter School reform is taking place
      4. There is an additional effort to consolidate the school districts 
         1. This could have an impact on school leaders’ jobs 
   4. Recently, a bill passed mandating cursive writing 
4. Michigan 
   1. In mid-December, there were about 40 schools that sued the Michigan Department of Education over 31AA funding 
      1. 31AA funding in Michigan is funding for school safety and mental health
         1. $321 million was available through a grant process
         2. To access the funds, the schools would have to waive their legal privileges such as, attorney-client privileges 
      2. Part of the lawsuit occurred because of vague language used to describe a “Mass Casualty Event” 
         1. Michigan Department of Education won the lawsuit though an appeal is possible
5. New York 
   1. Governor Hochul delivered her State of New York address 
   2. Expected a proposal to consider universal daycare and to expand pre-k to all children of age 4 with a bump in per-student allocation because it is a grant program to $10,000 
      1. A considerable amount compared per person compared to the previous amount
      2. There are a lot of concerns since their system is already fragmented

Federal Relations Archived Updates:

• December 2025
• November 2025
  • Fact Sheet outlining how DOE and Labor are partnering.
• October 2025
• September 2025

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