Federal Legislative Report (119-13)

Delivered via email: March 11, 2026
 

FY2027 Budget Update

The FY2027 budget cycle kicked off with the introduction of the President’s legislative priorities in the State of the Union on February 24. The President outlined few spending priorities with no mention of education spending. The next stage of the budget cycle, the first iteration of the President’s budget, sometimes called a “skinny budget,” is expected the week of March 30.

The House Labor, Health and Human Services and Education Appropriations Subcommittee continued holding hearings on education priorities in March, with meetings on community colleges and the annual Member Day Hearing, which included a request for robust funding for the Individuals with Disabilities Education Act (IDEA). Though the Senate Appropriations Committee has also begun consideration of FY2027 priorities, it has yet to hold hearings on education funding.
 

Congressional Committee Activity

Education and Workforce Hearing on AI in Education
The House Education and Workforce Subcommittee on Early Childhood, Elementary and Secondary Education held a hearing February 24 on “Teaching in the AI Age.” Witnesses and legislators expressed the potential of AI to address teacher workload, transform learning, and assist in adapting educational curriculum for students with disabilities. Experts also cautioned that appropriate guardrails were necessary to protect student data privacy. Witnesses stated that more research was necessary to determine the impact of AI on closing achievement gaps.

Energy and Commerce Student Privacy/Digital Safety Markup
On March 5, the House Energy and Commerce Committee considered and reported three bills regulating student data privacy, internet safety, social media platforms, and app store accountability. The Kids Internet and Digital Safety Act combines multiple measures regulating student digital safety and data privacy. Of note, the bill’s preemption language would invalidate a range of state laws that contain student digital protections. The strength of protections included in the App Store Accountability Act was also at issue during Committee consideration. The bills, except for Sammy’s Law, were advanced on primarily partisan votes over concerns about the strength of protections and the preemption of state law, making House and Senate action more difficult without additional modifications to generate bipartisan support.
 

Administration Actions

Additional IAAs
February 23, the Department of Education announced new Interagency Agreements (IAAs) to transfer additional education programs to other Departments. The Family Engagement and School Support Partnership will be administered by the Department of Health and Human Services. The Department of State will administer additional oversight over foreign contributions to higher education institutions. These partnerships bring the total percentage of programming administered outside of the Department to 43%.

Reimagining IES Report Released
On February 27 the Department of Education released the long-anticipated Reimagining the Institute of Education Sciences (IES) Report. Authored by Dr. Amber Northern, the report proposes reforms to IES to serve the needs of school board members and other leaders with high-quality research on the key needs of students and education practitioners. The report references the preservation of National Assessment of Educational Progress (NAEP) data as imperative to the IES mission. IASB is working with COSSBA at the federal level to express support for both core functions of IES as key tools needed to help school board members drive achievement.

Ballot Measures on Potential Tax Credit
Illinois primary voters in approximately one-third of Illinois counties will vote on a non-binding advisory referendum asking whether Illinois should opt into a federal program to provide public K-12, private, or home-schooled students with privately donated funds for education. The federal Budget Reconciliation legislation passed in July of 2025, created a new tax credit for donations to scholarship-granting organizations that provide this assistance. Under the legislation, each state must make a determination on whether to participate. Thus far, 28 states have opted into participation, with one state expressing that it will not participate. Illinois Governor J.B. Pritzker has not decided on Illinois’ participation. Multiple bills have been sponsored at the state level to opt in or out of the program; however, the decision in Illinois rests with the Governor. Pritzker has said he is waiting for federal regulations to be issued, likely this spring or summer, that give more details about the structure of the federal program.