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Federal Report
Government shutdown affects U.S. Dept. of Education
October 27, 2025
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The following report was prepared by Dr. John Schilling, president of the Council of Elementary Educational Leaders and liaison for the National Association of Elementary School Principals and the California Federal Relations Coordinator for NAESP.
The federal government remains shut down, halting all non-essential activities. About 95 percent of the Department of Education’s staff have been furloughed and are not checking emails or reporting to work. Only 5 percent of staff, classified as essential, continue processing college student financial aid applications. All other Department of Education operations, including rulemaking, grants management, and civil rights investigations, have been suspended.
The Trump administration has raised the possibility of permanently laying off furloughed Department of Education staff. Essential employees who are working will not get paid until the shutdown ends. Furloughed employees are also unpaid. Once the shutdown ends, both groups will receive back pay and their regular salaries.
Beyond the Department of Education, many federal activities are paused. National parks and attractions are closed, and most federal buildings are operating with minimal staff. Social Security and Medicare payments continue to be processed.
The impact on K-12 education is so far limited in the short-term because most federal formula grant programs are forward funded, notably Title I and IDEA. Some programs that could see activities interrupted are Impact Aid districts and Head Start programs.
FY26 budget outlook
When the shutdown ends, Congress will resume negotiations on the final FY26 spending bills.
  • The Senate Appropriations Committee has proposed maintaining funding for key K–12 programs like Titles I, II, and IDEA, at current levels.
  • The House Appropriations Committee passed a bill that cuts Title I by 20 percent and also eliminates Titles II (professional development) and III (English language acquisition).
NAESP advocacy conference Save the date for the 2026 NAESP National School Leaders Advocacy Conference, Feb. 8–11 at the Mayflower Hotel in Washington, D.C. The conference will feature a full program of advocacy and policy sessions. Registration will open in the coming weeks.

Beyond the threat of layoffs during the shutdown, the Office of Management and Budget has raised the possibility of widespread, permanent layoffs after the FY26 funding is enacted.
FCC reverses E-Rate expansion The Federal Communications Commission voted to rescind the Biden-era expansion of broadband internet access to students by prohibiting E-Rate funds to be used to pay for wifi on school buses and loaner home internet hotspots.