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Federal Legislative Report (119-10)

Delivered via email: December 12, 2025
 

IDEA 50th Anniversary

The 50th anniversary of the Individuals with Disabilities Education Act (IDEA) was November 29, 2025. In honor of this anniversary and the Congressional promise to contribute 40% of the cost of educating students with disabilities, IASB conducted an advocacy drive to encourage all Illinois Representatives and Senators to cosponsor the IDEA Full Funding Act. This effort resulted in 15 of 19 Illinois Representatives and Senators cosponsoring the Act.

The Senate HELP Committee held an event on December 3 to highlight the Act’s progress for students with disabilities. Senators Bill Cassidy, Chris Van Hollen, and Maggie Hassan spoke about the Act’s legacy and in support of their recently introduced bipartisan resolution (S. Res. 521/H. Res. 920), honoring the 50th anniversary of IDEA.
 

FY 2026 Funding

With the current Continuing Resolution (CR) expiring on January 30, little progress has been made on FY 2026 education funding. Appropriations staff hope to merge the House and Senate versions of this legislation in January. However, vast differences exist between the versions, with the House legislation proposing a 15% cut for education funding and the Senate legislation proposing stable funding. After actions by the U.S. Department of Education this summer to delay funding, Senate provisions would also ensure that school districts receive funding on time. The Senate bill also included language requiring the Department of Education to maintain the administration of IDEA and Title I. The impact of these provisions is difficult to ascertain after the Department’s November announcement of the transfer of Title I and 26 other Elementary and Secondary programs to the Department of Labor.

IASB encourages all school board members to email the education staff of their U.S. Representative to encourage them to support the Senate version of the Labor, Health and Human Services and Education Appropriations Act. For assistance, contact Kristin Fitzgerald.
 

House Passes Secure Rural Schools Reauthorization Act

On December 9, the House of Representatives overwhelmingly passed S.356, the Secure Rural Schools Reauthorization Act. This bill was passed by the Senate on June 18 and authorizes payments to rural schools to assist with their educational needs. For over 100 years, the federal government has provided additional support to rural schools due to the loss of tax revenue associated with federal forest land. The Secure Rural Schools Act expired in FY 2023 so the last payments to schools were in 2024. This week’s action restores full payments to schools for FY 2024 and 2025 and enables full payments for FY 2026. The Consortium of State School Boards Associations (COSSBA) wrote a letter to the House in support of this legislation. With more than 500 rural school districts in Illinois, IASB was also strongly in support of this legislation and communicated that support directly to the legislative staff of the Illinois Congressional delegation.
 

Student Privacy

Student privacy was a major area of focus for legislators in December. The House Energy and Commerce and Education and Workforce Committees held hearings on children’s and teens’ online privacy and parents’ rights and responsibilities. A Energy and Commerce Committee legislative hearing focused on 19 proposals to protect children and teens online. That hearing was followed by subcommittee consideration of 18 privacy bills on December 11. An Education and Workforce hearing centered around the Family Educational Rights and Privacy Act (FERPA) and the Protection of Pupil Rights Amendment (PPRA).

Separately, the National Telecommunications and Information Administration (NTIA) convened a listening session on “excessive screen use in schools, including the growing reliance on individual devices and educational technology services and applications.” The discussion also examined factors that NTIA believes may influence school-based device and digital platform use, including federal law, broadband funding, and other federal programs.
 

Mental Health Grants Announced

On December 11 the Department of Education announced the awarding of $208 million in grants for the Mental Health Service Professional Demonstration and School-Based Mental Health programs. The awards will go to 65 recipients to increase the number of credentialed school-based mental health service providers. The Department indicated that $120 million will go to 33 awardees who serve rural states and school districts.

In April the Administration discontinued grants to several grantees which was the subject of litigation by 16 State Attorneys General. The announcement stated that some of these non-continuation decisions have been set aside while the litigation continues in court.
 

Transfer of Education Programs to Department of Labor

On December 3, 36 Democrat Senators wrote to Secretary of Education Linda McMahon to highlight substantive concerns with the Department’s transfer of educational programs through six new Inter Agency Agreements (IAA) and ask that this decision be reversed. The Senators asserted that the transfers will undermine public education by significantly weakening the oversight of state accountability systems, designed to ensure that all students achieve. The letter also states that this transfer without Congressional approval is beyond the scope of the authority of the Department and will create additional federal bureaucracy and delays.

The transfer of the Perkins Program to the U.S. Department of Labor this past summer presented significant challenges for Illinois. The shift to new federal grant and payment systems used by the Department of Labor created delays for that program that were further compounded by the federal shutdown which took months to resolve. This raises concerns that the additional transfers will add complexity and challenges in working with new federal agencies for states, schools, and families, making it harder to navigate federal systems and access resources for students.
 

Treasury Issues Request for Comment on Tax Credit

On November 25, the Treasury Department issued a notice requesting comments on the implementation of the new tax credit for individuals established under the Federal Budget Reconciliation Act (HR1). The Act established a $1,700 tax credit for individuals ($3,400 for couples) contributing to scholarship-granting organizations (SGOs) that provide scholarships and other assistance to students to pay for educational expenses, including private school tuition. The Treasury posed several questions for which they requested comment, in particular, clarification on the process by which states elect to participate in the tax credit, the certification of SGOs and the states’ role in certifying SGOs, and taxpayer compliance with provisions of the law.

In the request for comments, the Treasury indicated that it will likely allow states to elect to participate in early 2026 so that SGOs have time to prepare. Participating states will then have to submit the list of authorized SGOs later in the year but before January 1, 2027, when the tax credit goes into effect.
 

Links

Opens in a new windowU.S. Department of Education(Opens in a new window)
U.S. Senate Committee on Health, Education, Labor and Pensions(Opens in a new window)
U.S. House Committee on Education and Labor(Opens in a new window)
U.S. Senate Budget Committee(Opens in a new window)
U.S. House Budget Committee(Opens in a new window)
Congressional Budget Office (CBO)(Opens in a new window)
Federal Legislative Information