Washington Update, April 1, 2025

Dear Colleagues:

As we navigate the fast-shifting terrain of federal education policy under the Trump Administration, it’s becoming clear that we are entering a period of both volatility and ambiguity. While Congress has passed a funding extension through the end of the fiscal year, critical questions remain unanswered about how core education programs will be implemented, managed, and sustained going forward.

What we're seeing is not just a pause in traditional appropriations—it’s a systemic shift in how the federal government views and supports education, from early childhood through higher education. Key programs are being reorganized, funding transparency is evaporating, and executive actions are actively dismantling institutional infrastructure at the U.S. Department of Education (ED).

This update outlines several pressing developments that education leaders need to understand, including:

• The implications of a Continuing Resolution that lacks program-level detail,

• Significant staff cuts and restructuring at the Department of Education,

• Proposals to potentially block grant IDEA or transfer it to HHS,

• Emerging threats to long-standing programs like SEOG and Work Study,

• And changes to FERPA enforcement and student loan oversight.

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1. Federal Funding Extended – But Lacking in Detail

On March 22, a full-year Continuing Resolution (CR) was signed into law, extending most federal programs at FY 2024 levels through FY 2025. However, unlike traditional appropriations bills, this CR does not include an explanatory statement outlining program-level funding amounts.

This lack of detail introduces significant uncertainty:

• Agencies now have broad discretion in how funds are distributed within large accounts.

• For instance, the Student Financial Assistance account includes Pell Grants, SEOG, and Federal Work Study—but only the Pell maximum award is specified.

• This could result in reduced or reallocated funding for programs like SEOG and Work Study.

Additional concerns:

• The CR eliminated $290 million in education earmarks, including $88 million in K–12 Innovation and Improvement funding.

• The Office of Management and Budget (OMB) has taken down its public apportionment webpage, reducing transparency into when and how funds are released.

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2. Major Organizational Changes at the Department of Education

A March 21 Executive Order directed the Department of Education to begin transferring its responsibilities to other federal agencies and to state and local governments “to the maximum extent appropriate and permitted by law.”

This move has already resulted in significant changes:

• Over 1,300 employees laid off on March 11.

• Key offices impacted include: Federal Student Aid, the Office for Civil Rights, and the Institute of Education Sciences (IES).

• Additional staff accepted early retirement or deferred resignations.

These cuts have reduced ED’s staffing by nearly half since January. The long-term implications remain unclear but may include:

• Disruptions in service delivery

• Weakened compliance monitoring

• Gaps in education data infrastructure

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3. Changes to IDEA: Block Grant Proposal and Shift to HHS

The administration is also exploring a significant structural change: transitioning the Individuals with Disabilities Education Act (IDEA) from ED to the Department of Health and Human Services (HHS).

Currently, IDEA is a conditional grant program designed to ensure students with disabilities receive a free appropriate public education (FAPE). If IDEA is converted into a block grant or moved to HHS, the following risks emerge:

What a Block Grant Could Mean:

• Capped funding not tied to enrollment or service needs

• States gain discretion with reduced federal accountability

• Individualized education safeguards could be diluted

Structural Risks of Moving to HHS:

• Disconnects IDEA from the broader K–12 system

• Frames special education as a health or welfare service, not an educational right

• Requires Congressional approval, adding legal complexity

• Disrupts existing compliance and monitoring systems

State Precedents to Watch:

• Texas: Faced federal investigation after limiting services

• Florida: Operates voucher programs with limited IEP protections

• Tennessee: Uses a special education fund with minimal oversight

These cases illustrate the potential consequences of reduced federal oversight.

*Please note, there are currently no actions in motion to block grant or move IDEA to HHS. This information is being provided due to questions and concerns arisen from TED members and statements made by the Administration.

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4. Additional Developments: Reconciliation & Program Transfers

Congress is working on a budget resolution that could trigger a reconciliation bill later this year, fast-tracking changes to education funding and agency responsibilities.

Public statements also suggest:

• Student loan oversight could shift to the Small Business Administration (SBA)

• Programs like TRIO and GEAR-UP may be reassigned to different appropriations committees

These moves would affect coordination, visibility, and strategic advocacy for higher education and student support programs.

What’s Already Cut or Under Threat:

Eliminated or Defunded:

• $290M in earmarks (incl. K–12 innovation)

• Institute of Museum and Library Services (IMLS)

• IES research programs

• Teacher training initiatives

At Risk:

• SEOG and Federal Work Study

• Public Service Loan Forgiveness (PSLF)

• IDEA structure and enforcement

• School nutrition programs (if moved outside of ED or USDA)

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5. ED Reaffirms FERPA and PPRA Parental Rights

The Department of Education released a Dear Colleague Letter reinforcing parental rights under FERPA and PPRA, particularly regarding access to records related to a child’s gender identity.

Key points:

• Secretary Linda McMahon condemned policies that withhold information from parents.

• Schools that create “Gender Plans” but deny parent access may be in violation of FERPA.

• States must notify parents annually of their rights.

• State compliance documentation is due April 30, 2025.

• Investigations are underway in California and Maine, where policies allegedly block parental access.

• Non-compliance may result in investigations or loss of federal funding.

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6. Trump’s Student Loan Proposal Faces GOP Pushback

President Trump announced plans to transfer the $1.6 trillion student loan portfolio from the Department of Education to the Small Business Administration (SBA). However, Republican lawmakers and experts are skeptical:

• SBA has recently experienced staffing cuts

• Many expected the transfer to go to the Treasury Department

• The idea aligns with the conservative Project 2025 platform

The transition likely requires Congressional approval, but support remains uncertain. President Trump has framed this as part of a broader plan to dismantle the Department of Education and return power to states.

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We’ve weathered change before—and each time, it’s been families, educators, and advocates, like you who continue to lead with clarity, courage, and care. Our shared commitment to students, equity, and strong public systems remains our anchor, no matter the shifting tides.

In uncertain times, staying informed and connected is one of the most powerful things we can do. Keep showing up. Keep sharing what’s happening in your schools and communities. Keep pushing for solutions that center people and possibility.

There’s important work ahead—and I’m grateful to be doing it alongside you.

With appreciation and resolve,

Kait

@brennan_kait