I've been in a couple of sessions recently on federal grants (most recently DESE did one this morning), so providing a few highlights:
- Always remember that federal education grants are almost all what's called 'forward funded' meaning that we have the current fiscal year's funding already.
- Thus discussions of the FY26 federal budget--which is what the shutdown happened around--are funding that are/will largely impact our NEXT fiscal year at the state and district level, FY27, and thus NEXT school year.
- There are BIG differences among White House/House/Senate's bills, with the Senate being the one that essentially level funds and has the least changes. As the Senate can only act on a bipartisan basis, there's some thinking that the Senate's option is the one that will win out.
- The Senate bill also included language that required that funding to states go out as soon as it was available--none of this wanting to recheck stuff that hung up grants this fall!--but it's anybody's guess as to if that stays in.
- The continuing resolution to fund the government expires January 30, 2026, so expect us to get countdown clocks again soon.
- The CR passed reverses the reductions in force RIFs initiated just after the shutdown began and prohibits the Administration from initiating any new RIFs through January 30, 2026, when the CR expires.
- One piece of good news: Because the CR funds full year appropriations for, among others, USDA, the continuing resolution that passed fully funds school nutrition through September 30, 2026, so that isn't iffy around government shutdowns.
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