Washington Update: January 2026
A Narrow Window, Unfinished Business, and What to Watch Next
Dr. Kaitlyn Brennan
Taking Stock at the Start of the Year
As Congress returns for the start of the year, federal education policy is again shaped less by major legislative action than by timing, sequencing, and unresolved decisions. The government is currently operating under a continuing resolution that expires on January 30, and the weeks ahead present a short, highly constrained window for Congress to determine how the rest of FY 2026 will unfold.
That constraint is not just fiscal. It is also procedural. The Senate will be out next week, followed by the House the week after, leaving only a limited period of overlapping session time in which bicameral agreements can be finalized. That compressed calendar has slowed decision-making and, in some cases, deferred it entirely.
It also helps explain why some of the most visible administrative impacts anticipated earlier in the year, particularly reductions in force at federal agencies, have not yet occurred. The current continuing resolution explicitly prohibits mass layoffs through January 30, effectively placing agency workforce decisions on pause while appropriations remain unsettled.
This moment feels familiar. It is another example of continuity layered over uncertainty - programs operating, staff in place for now, and long-term decisions waiting on a very short clock.
Where Appropriations Stand Now
In December, House and Senate Appropriations Committee leaders reached agreement on overall funding targets for the nine remaining FY 2026 spending bills. While the specific allocations have not been made public, leaders were clear that total FY 2026 funding would come in below FY 2025 levels, which were already largely flat with FY 2024.
For the Department of Education, that context matters. FY 2025 funding was approximately $290 million below FY 2024, largely due to the absence of congressionally directed projects. Any additional reductions in FY 2026 would further constrain agency capacity, particularly for grant administration, monitoring, and technical assistance.
Several bipartisan, bicameral appropriations bills have now advanced, and six of the twelve annual spending bills are either enacted or positioned to move. While this represents real progress, it also concentrates the remaining cuts into the unresolved bills, most notably Labor-HHS-Education, which supports IDEA, educator preparation, and education research.
A Narrow Path to the Finish Line
Appropriations leaders are now working toward a potential three-bill package that would include Labor-HHS-Education, along with Defense and Transportation-HUD. If that package is finalized, Homeland Security would be the only bill left unresolved.
The sequencing matters. The Senate hopes to act before its recess next week. The House remains in session during that period but will then recess the following week, narrowing the window for bicameral alignment before the January 30 deadline.
Taken together, these dynamics mean Congress faces a binary choice: finalize outstanding appropriations quickly or pass another continuing resolution. Either outcome will shape not only funding levels, but also agency staffing decisions and administrative capacity in the months ahead.
Why Labor-HHS-Education Remains a Focal Point
Labor-HHS-Education has long been one of the most complex appropriations bills, and this year is no exception. Beyond funding levels, the bill is now carrying additional weight because of broader questions about agency structure, program administration, and oversight.
At this stage, there is no public clarity on several issues central to educator preparation and special education, including whether Congress will:
• Maintain funding levels for IDEA, Title II, and research programs
• Restrict the Department of Education from shifting program administration to other agencies
• Prevent the repurposing of funds across programs, as occurred in FY 2025
• Retain language requiring Title I and special education programs to remain housed within ED
These decisions will shape how programs function on the ground, not just how they are funded on paper.
Incremental Administrative Changes at the Department of Education
Iowa Waiver Signals a Narrow Use of Existing Authority
Earlier this month, the Department of Education approved Iowa’s request for a “Returning Education to the States” waiver. The approval allows Iowa to consolidate state-level funds across four federal K-12 programs: Title II-A, Title III-A, Title IV-A, and Title IV-B.
The waiver applies only to the state activities portion of those programs, not to formula funds flowing directly to districts. Iowa may use those state-level funds more flexibly, provided spending aligns with the statutory purposes of at least one of the included programs.
While limited in scope, the waiver is notable as a first use of this authority under the current Administration. For educator preparation stakeholders, it is particularly relevant given Title II-A’s role in supporting preparation, induction, and professional learning, including for special educators and related service providers.
HHS Funding Action and Current Status
In early January, the Department of Health and Human Services announced it would temporarily withhold access to certain child care and family assistance funds in five states - California, Colorado, Illinois, Minnesota, and New York - citing concerns related to fraud and documentation. The affected programs include the Child Care and Development Fund, Temporary Assistance for Needy Families, and the Social Services Block Grant.
Shortly thereafter, a federal judge issued a temporary restraining order blocking enforcement of the funding freeze while litigation proceeds. As a result, funds remain available for now, and the situation continues to evolve through the legal process.
While these programs do not directly fund education, they are closely connected to workforce participation, early learning systems, and stability for families of children with disabilities. Developments in this area bear watching for their indirect effects on early childhood and special education systems.
Education and Labor: Coordination Moving Further Than Before
The Department of Education has announced that beginning next week, staff from the Office of Postsecondary Education’s Higher Education Programs division will be detailed to the Department of Labor. These staff will support the transition of grant management and payment functions under previously announced interagency agreements.
Collaboration between Education and Labor on workforce-related programs is not new. Variations of this alignment have been discussed across administrations, particularly in the context of adult education and career pathways. What distinguishes the current approach is the scale and formality of the shift, including the transfer of day-to-day administrative responsibilities.
Statutory authority for affected programs remains unchanged. The longer-term implications will depend on implementation, oversight, and congressional direction, particularly as appropriations decisions are finalized.
Public Framing of the Department of Education’s Future
Last week, Chalkbeat hosted a webinar featuring Lindsey Burke, a senior education adviser in the current Administration, focused on ongoing conversations about the role and future structure of the U.S. Department of Education. The event was part of Chalkbeat’s broader policy coverage and offered insight into how the Administration is publicly characterizing recent administrative actions.
During the discussion, Burke addressed questions related to long-standing proposals to significantly reduce or eliminate the Department of Education, including ideas outlined in Project 2025, a policy framework she previously helped author. She emphasized that formally closing the Department would require congressional action and stated that there is no immediate plan to do so.
At the same time, the conversation acknowledged that certain administrative functions traditionally housed within the Department are being reassigned to other federal agencies through interagency agreements. Burke framed these shifts as operational rather than statutory, noting that core federal funding streams, including special education funding under IDEA, are expected to continue.
Chalkbeat’s reporting following the webinar focused on distinguishing between rhetoric and implementation - highlighting what is occurring through executive action versus what would require legislation. While the event did not introduce new policy announcements, it provided useful context for understanding how the Administration is explaining current changes and responding to questions from the education community.
As appropriations discussions continue and oversight questions emerge, public messaging like this is likely to remain part of the broader policy landscape shaping expectations around the federal role in education.
Key Dates to Watch
• January 30 - Current continuing resolution expires. Congress must finalize remaining FY 2026 appropriations or enact another continuing resolution to avoid a funding lapse. Provisions in the current CR that temporarily prohibit reductions in force also expire on this date.
• Next two weeks - Limited overlap between House and Senate session schedules. The Senate is scheduled to be out next week, followed by the House the week after, leaving a narrow window for bicameral agreement on outstanding appropriations bills.
• Late January to early February - If a new continuing resolution is enacted, Congress may revisit the scope and duration of workforce protections and administrative constraints. If full-year appropriations are enacted, agencies are likely to move forward with staffing and implementation decisions that have been deferred during the CR period.
• February and beyond - Oversight, litigation, and implementation decisions related to interagency agreements and program administration may become more visible as agencies adjust to final funding levels and staffing realities.
A Moment of Perspective
Periods like this can feel dominated by process, deadlines, and uncertainty. But it is precisely during these moments that sustained, informed engagement matters most.
The steady presence of educators, preparation programs, researchers, and advocates ensure that conversations in Washington remain grounded in the realities of classrooms, campuses, and communities. It brings clarity to decisions made under pressure and helps policymakers understand not just what programs cost, but what they make possible.
The work of TED and its members continues to shape how educator preparation, special education, and research are understood and valued at the federal level. That influence does not always show up in a single vote or line item. More often, it appears in the questions policymakers ask, the guardrails they preserve, and the pauses they take before making changes that would be difficult to undo.
As we move through the coming weeks, there will be more decisions ahead. But there is also a strong foundation of expertise, relationships, and shared purpose. That foundation matters, and it is built day by day by the people doing this work.
Thank you for continuing to show up with care, credibility, and commitment.
With appreciation and resolve,
Kait
@brenann_kait
