Delivered via email: February 2, 2026
After an agreement between the White House and Senate Democrats was announced, the Senate is on track to pass the Labor, Health and Human Services and Education Appropriations legislation combined with four other appropriations measures on January 30. The House is expected to take action on the legislation early next week. Due to the expiration of the Continuing Resolution (CR) on January 30, this will cause a partial government shutdown until the House returns and passes the funding legislation. Agreement on this bill comes after a week of contentious negotiations.
On January 22, the House of Representatives passed a three-bill funding package that included the education appropriations bill funding schools for FY2026. The legislation was then combined with three other funding measures for consideration by the Senate. However, concerns about funding for Immigration and Customs Enforcement (ICE), included in the Homeland Security Appropriations legislation, caused the six-bill package to stall until agreement was finally reached by the President and Senate Democrats on January 29 to combine the five bills with a temporary CR while deliberations on the Homeland Security legislation continue. Further negotiations with Senate Republicans and Democrats on January 30 cleared the way for Senate consideration of the legislation.
IASB supported the education appropriations bill which was based on the Senate's version of the legislation, including stable funding for schools with a slight increase of $20 million for Title I and the Individuals with Disabilities Education Act (IDEA). The bill also includes important funding for state assessments and evidence-based research, which had been reduced or eliminated in both the President's budget and the House version of the legislation.
FY2027 Education Appropriations
With FY2026 Appropriations anticipated to pass next week, Congress will move into the federal spending cycle for FY2027. Typically, the President's State of the Union address, often in late January or early February, identifies the presidential spending priorities, followed by the submission of the President's budget in February. However, with Congress's delay in finishing the FY2026 appropriations process, this year's State of the Union address will not occur until February 24, with the President's budget expected around that time. Congress will then proceed with the budget and appropriations processes for FY2027, with the goal of final passage of the 12 appropriations measures by both the House and Senate before the beginning of FY2027 on October 1, 2026. Throughout the FY2027 funding cycle, IASB will advocate in support of our 2026 Federal Legislative Priorities.
Senate HELP Committee Requests for Information on Student Achievement
The Senate HELP Committee took the uncommon step of releasing a request for information (RFI) inviting responses to several questions centered around accurately measuring and conveying student growth. Citing declining National Assessment of Educational Progress (NAEP) scores and saying that the Committee was "committed to advancing bipartisan solutions to the achievement crisis," the RFI asked for feedback by February 13. HELP Committee Chair Bill Cassidy also requested information from 35 selective universities regarding the prevalence and root causes of the decline in U.S. students' math preparation. These requests follow a September hearing on student achievement, signifying potential legislative activity related to this topic.
Actions on School Choice and Charter Schools
On January 28, the Senate HELP Committee held a hearing on school choice. Witnesses gave varying testimony to the impact of school choice proposals on both public and private school students.
Previously, on January 21, the House Education and the Workforce Committee reported two bills intended to assist charter schools in expanding programs and facilities.
Congressional Hearings on AI and Screen Time for Students
The House Education and Workforce and the Research and Technology Subcommittee of the Science, Space and Technology Committees, along with the Senate Commerce, Science, and Transportation Committee, held hearings on Artificial Intelligence (AI) adoption by schools as well as the amount of screen time for students, particularly the use of social media. Congressional perspectives ranged, with some praising the adoption of AI technology by teachers and students and others proposing a ban on social media and AI adoption until the age of 18.
The recent hearings signify a growing interest by the education committees and the committees with jurisdiction over commerce and technology policy in the potential regulation of AI and/or social media. At the Senate hearing, Chair Ted Cruz discussed his bipartisan Kids Off Social Media Act, S. 278 which would place requirements on social media companies as well as schools to prohibit children under the age of 13 from using social media.
Federal Tax Credit
January 27, the Departments of Education and Treasury released a fact sheet on the tax credit created by the Budget Reconciliation Act this July. The department also announced that 23 states have opted in to the tax credit program, which provides state taxpayers with a $1,700 tax credit for contributions to organizations that give scholarships assisting students with educational expenses, including private school tuition. Illinois has not yet determined whether to participate in the tax credit. At a January 28 press conference, Governor JB Pritzker noted that the U.S. Treasury has not yet released official rules for this program, and that when rules are released, he will review them to determine whether opting in will benefit Illinois families.
"Returning Education to the States" Waiver
On January 7, the Department of Education announced its first "Returning Education to the States" waiver for the State of Iowa. Iowa will combine funding for four federal education programs to create greater flexibility and reduce paperwork. The waiver is the first to be announced after the Department issued a call for waiver proposals in July. Indiana has also submitted a waiver proposal to the Department, which includes potential waiving of some federal accountability requirements. Though Illinois is currently in the process of amending its federal accountability plan, the state has not applied for a waiver and has expressed continued commitment to federal accountability provisions, which provide important tools for school board members in their efforts to drive student achievement.
Transgender Sports Participation
The Department has also been active on the issue of transgender sports participation, with Secretary Linda McMahon testifying before the Supreme Court and the Office of Civil Rights announcing 18 investigations of school and state-based entities.
Elimination of the Full-Service Community Schools Grant
The Department of Education continues to eliminate funding for grants it believes are opposed to the Administration's priorities or contain wasteful or fraudulent expenditures. The Department is in negotiations with ACT Now, an Illinois-based entity that administers grants for 32 Illinois schools, after announcing the elimination of the Full-Service Community Schools Grant in December.
Already, mental health services have been reduced or eliminated, and staff in the impacted Illinois school districts have been laid off due to the Department's actions. IASB has been in communication with Illinois congressional legislators in support of this program. Several Illinois legislators have advocated on behalf of this program to the Department of Education. ACT Now has also filed litigation to stop the Department's action. IASB and other Illinois organizations are working collaboratively to mitigate the impact on the 19,000 Illinois students and families served by this grant.
Federal Budget
FY2026 Education AppropriationsAfter an agreement between the White House and Senate Democrats was announced, the Senate is on track to pass the Labor, Health and Human Services and Education Appropriations legislation combined with four other appropriations measures on January 30. The House is expected to take action on the legislation early next week. Due to the expiration of the Continuing Resolution (CR) on January 30, this will cause a partial government shutdown until the House returns and passes the funding legislation. Agreement on this bill comes after a week of contentious negotiations.
On January 22, the House of Representatives passed a three-bill funding package that included the education appropriations bill funding schools for FY2026. The legislation was then combined with three other funding measures for consideration by the Senate. However, concerns about funding for Immigration and Customs Enforcement (ICE), included in the Homeland Security Appropriations legislation, caused the six-bill package to stall until agreement was finally reached by the President and Senate Democrats on January 29 to combine the five bills with a temporary CR while deliberations on the Homeland Security legislation continue. Further negotiations with Senate Republicans and Democrats on January 30 cleared the way for Senate consideration of the legislation.
IASB supported the education appropriations bill which was based on the Senate's version of the legislation, including stable funding for schools with a slight increase of $20 million for Title I and the Individuals with Disabilities Education Act (IDEA). The bill also includes important funding for state assessments and evidence-based research, which had been reduced or eliminated in both the President's budget and the House version of the legislation.
FY2027 Education Appropriations
With FY2026 Appropriations anticipated to pass next week, Congress will move into the federal spending cycle for FY2027. Typically, the President's State of the Union address, often in late January or early February, identifies the presidential spending priorities, followed by the submission of the President's budget in February. However, with Congress's delay in finishing the FY2026 appropriations process, this year's State of the Union address will not occur until February 24, with the President's budget expected around that time. Congress will then proceed with the budget and appropriations processes for FY2027, with the goal of final passage of the 12 appropriations measures by both the House and Senate before the beginning of FY2027 on October 1, 2026. Throughout the FY2027 funding cycle, IASB will advocate in support of our 2026 Federal Legislative Priorities.
Federal Committees and Issues to Watch in 2026
The House Education and Workforce and the Senate Health, Education, Labor and Pensions (HELP) Committees, the committees with education jurisdiction, will hold hearings and consider legislation impacting education throughout the year. Information about key actions and discussions that occurred in January is included below.Senate HELP Committee Requests for Information on Student Achievement
The Senate HELP Committee took the uncommon step of releasing a request for information (RFI) inviting responses to several questions centered around accurately measuring and conveying student growth. Citing declining National Assessment of Educational Progress (NAEP) scores and saying that the Committee was "committed to advancing bipartisan solutions to the achievement crisis," the RFI asked for feedback by February 13. HELP Committee Chair Bill Cassidy also requested information from 35 selective universities regarding the prevalence and root causes of the decline in U.S. students' math preparation. These requests follow a September hearing on student achievement, signifying potential legislative activity related to this topic.
Actions on School Choice and Charter Schools
On January 28, the Senate HELP Committee held a hearing on school choice. Witnesses gave varying testimony to the impact of school choice proposals on both public and private school students.
Previously, on January 21, the House Education and the Workforce Committee reported two bills intended to assist charter schools in expanding programs and facilities.
Congressional Hearings on AI and Screen Time for Students
The House Education and Workforce and the Research and Technology Subcommittee of the Science, Space and Technology Committees, along with the Senate Commerce, Science, and Transportation Committee, held hearings on Artificial Intelligence (AI) adoption by schools as well as the amount of screen time for students, particularly the use of social media. Congressional perspectives ranged, with some praising the adoption of AI technology by teachers and students and others proposing a ban on social media and AI adoption until the age of 18.
The recent hearings signify a growing interest by the education committees and the committees with jurisdiction over commerce and technology policy in the potential regulation of AI and/or social media. At the Senate hearing, Chair Ted Cruz discussed his bipartisan Kids Off Social Media Act, S. 278 which would place requirements on social media companies as well as schools to prohibit children under the age of 13 from using social media.
Key Department of Education Actions
Federal Tax CreditJanuary 27, the Departments of Education and Treasury released a fact sheet on the tax credit created by the Budget Reconciliation Act this July. The department also announced that 23 states have opted in to the tax credit program, which provides state taxpayers with a $1,700 tax credit for contributions to organizations that give scholarships assisting students with educational expenses, including private school tuition. Illinois has not yet determined whether to participate in the tax credit. At a January 28 press conference, Governor JB Pritzker noted that the U.S. Treasury has not yet released official rules for this program, and that when rules are released, he will review them to determine whether opting in will benefit Illinois families.
"Returning Education to the States" Waiver
On January 7, the Department of Education announced its first "Returning Education to the States" waiver for the State of Iowa. Iowa will combine funding for four federal education programs to create greater flexibility and reduce paperwork. The waiver is the first to be announced after the Department issued a call for waiver proposals in July. Indiana has also submitted a waiver proposal to the Department, which includes potential waiving of some federal accountability requirements. Though Illinois is currently in the process of amending its federal accountability plan, the state has not applied for a waiver and has expressed continued commitment to federal accountability provisions, which provide important tools for school board members in their efforts to drive student achievement.
Transgender Sports Participation
The Department has also been active on the issue of transgender sports participation, with Secretary Linda McMahon testifying before the Supreme Court and the Office of Civil Rights announcing 18 investigations of school and state-based entities.
Elimination of the Full-Service Community Schools Grant
The Department of Education continues to eliminate funding for grants it believes are opposed to the Administration's priorities or contain wasteful or fraudulent expenditures. The Department is in negotiations with ACT Now, an Illinois-based entity that administers grants for 32 Illinois schools, after announcing the elimination of the Full-Service Community Schools Grant in December.
Already, mental health services have been reduced or eliminated, and staff in the impacted Illinois school districts have been laid off due to the Department's actions. IASB has been in communication with Illinois congressional legislators in support of this program. Several Illinois legislators have advocated on behalf of this program to the Department of Education. ACT Now has also filed litigation to stop the Department's action. IASB and other Illinois organizations are working collaboratively to mitigate the impact on the 19,000 Illinois students and families served by this grant.