Federal Report
With shutdown over, work resumes on FY26 funding
December 8, 2025
The following report was prepared by Dr. John Schilling, president of ACSA’s Council of Elementary Educational Leaders and liaison for the National Association of Elementary School Principals and the California Federal Relations Coordinator for NAESP.
The most recent government shutdown was the longest in history lasting 43 days.
Temporary funding runs through Jan. 30, 2026. That is the deadline for Congress to enact its appropriations bills or pass another short-term funding extension.
As part of the reopening deal:
- FY26 funding was enacted for the Departments of Agriculture and Veterans Affairs and for Military Construction
- The Supplemental Nutrition Assistance Program funding restarted.
- All furloughed workers will receive back pay.
- Workers laid off during the shutdown are rehired through at least January 30, 2026. This includes 450 Department of Education staff members
- There will be a Senate vote on subsidies for the Affordable Care Act.
FY26 Funding
Now that the federal government shutdown has ended, lawmakers will resume work on FY26 funding.
It is important to note that the Senate’s FY26 education funding bill is significantly better than the House FY26 education funding bill. The House plan proposes cutting Title I by nearly $5 billion and eliminating Titles II and III, while also consolidating other K–12 programs and creating state block grants. The Senate plan, which maintains all current funding levels with slight increases for Title I, is supported by NAESP.
Please contact your senators and representatives and urge them to maintain FY26 funding at its current levels.
U.S. Department of Education reorganization
The Department of Education is undergoing a major reorganization with the functions of two key offices, Elementary and Secondary Education and Postsecondary Education, moving to the Department of Labor.
The sweeping moves came as a surprise as recent rumors had only focused on special education programs being moved to the Department of Health and Human Services as a proof-of-concept (with other offices to follow) as Education Secretary Linda McMahon had previously mentioned multiple times. The new plan was much broader and did not include Special Education.
All of the programs in the Every Student Succeeds Act (ESSA) will now be overseen by the Department of Labor. This includes:
- Title I
- Part A
- State assessments
- Migrant children
- Neglected and delinquent children
- Title II — Supporting Effective Educators State Grants
- Title III — English Language Acquisition State Grants
- Title IV
- Student Support and Academic Enrichment State Grants
- 21st Century Community Learning Centers
- Impact Aid
K-12 Competitive Grant Programs are also moving to the Department of Labor, including:
- SEED programs
- Charter schools
- Arts and education programs
- Teacher quality partnership grants
- American history and civics
- Promise Neighborhoods
- Magnet schools
- Full-service community schools
The Department of Education will retain authority to disburse funding, but the Department of Labor will monitor implementation and interface with state education agencies.
Many of the plans about how Labor will administer all of these grants and oversee activities are still in development. The fate of special education programs is uncertain.
If you have experiences or concerns related to the reorganization (which might not be apparent for several months), please share them. Feedback will help inform Congress’ response to these changes.
Other items
H.R. 38, the Constitutional Concealed Carry Reciprocity Act of 2025. This federal mandate on concealed carry weapons would require states to accept a conceal carry permit issued by another state. This bill, if passed, would supersede Gun-Free School Zone prohibitions, ultimately allowing concealed carry weapons on school grounds. NAESP opposes this bill.