A bipartisan and bicameral proposed agreement released Monday to fund the U.S. Department of Education at $79 billion for fiscal year 2026 — or at $217 million above FY 2025 levels — dealt a major blow to the Trump administration's efforts to downsize and eventually eliminate the agency.
The proposed budget deal, coming months after the fiscal year began Oct. 1, would include slight increases for special education programming, rural education and Impact Aid, which gives additional financial support to communities with tax-exempt federal properties.
Continuing resolution agreements in FY 2025 and the beginning of FY 2026 maintained most education funding at FY 2024 levels. However, continuing resolutions typically don't give the same level of fiscal direction from Congress as annual appropriations bills do.
The new budget proposal also would explicitly prevent the Education Department from transferring statutorily required program responsibilities to other federal agencies. The Trump administration has said such moves would give states more control over federal education funds. The department has already moved day-to-day management of career and technical education to the U.S. Department of Labor and is in the process of transferring management of six programs to other federal agencies.
Opponents, however, said shifting those responsibilities would create inefficiencies and threaten educational outcomes for students.
Additionally, the House and Senate FY 26 bill would require that the Education Department make formula grants available to states and districts on time and to issue funds at levels dictated by Congress in the funding bill. It also would add a new requirement to maintain the Education Department staff at levels necessary to fulfill its statutory responsibilities, including carrying out programs and activities funded in the bill.
The new requirements would come after the Trump administration at times withheld expected grant funding from education programs and after it laid off staff from core Education Department offices.
Comparing proposed FY26 levels for certain Education Department activities
It's a draft budget that veers sharply from President Donald Trump's proposal last spring to provide a total of $66.7 billion for all Education Department activities, which would be $12 billion — or 15.3% — less than the FY 2024 level. The Trump administration recommended merging 18 competitive formula funding grant programs into one $2 billion formula grant program that the administration said would spark innovation and give states more spending freedom. Federal lawmakers seem to be rejecting that change.
The Education Department did not respond to a request for comment on the House and Senate proposed budget in time for publication. U.S. Education Secretary Linda McMahon posted on X Tuesday, which was the one-year anniversary of Trump's inauguration, "One year in, and the Trump Administration has transformed the education landscape as we know it. Buckle up!"
One year in, and the Trump Administration has transformed the education landscape as we know it.
— Secretary Linda McMahon (@EDSecMcMahon) January 20, 2026
Buckle up! pic.twitter.com/1bvhVw5iRI
Republican and House appropriations leaders praised the funding proposal, which is expected to be voted on before Jan. 30, when the current continuing resolution that ended last fall's federal government shutdown expires.
House Appropriations Chair Tom Cole, R-Okla., said in a Jan. 19 statement that the proposed budget "reflects the core tenets of American strength: combat-ready forces, secure communities, effective education and health systems, and modern transportation. At every level, it applies innovation and discipline to deliver results without waste."
Sen. Patty Murray, D-Wash., vice chair of the Senate Appropriations Committee, said in a Jan. 20 statement that the bills "invest in working people across the country and utterly reject President Trump’s plan to defund our kids’ education, evict millions of families, and slash lifesaving medical research nearly in half."
Murray added that "Congress will not abolish the Department of Education."
Congress plans for approval of full-year appropriations
The proposed Education Department funding plan was included in a consolidated appropriations act along with the budgets for the U.S. departments of Defense; Homeland; Labor, Health and Human Services; Transportation, Housing and Urban Development; and related agencies.
With this bill, along with other bipartisan, bicameral spending appropriations already released, Congress is aiming to approve full-year FY 26 spending levels across the federal government within the next two weeks. The fiscal year ends Sept. 30.
In addition to the K-12 spending proposals for FY 2026, the House and Senate budget also includes bipartisan and bicameral agreement on proposed funding for early childhood education, including $8.8 billion for the Child Care and Development Block Grant, which would be an $85 million increase. Head Start would also receive an $85 million increase for a total of $12.4 billion. Both programs are administered by the U.S. Department of Health and Human Services.
Sarah Rittling, executive director of the First Five Years Fund, an organization that advocates for quality childcare and early learning programs, said in a Jan. 20 statement that the appropriations package ensures "families and providers can plan ahead, maintain programs, and give children the consistent, high-quality care they need."
Tara Thomas, senior government affairs manager at AASA, The School Superintendents Association, said in a Jan. 20 post on AASA’s website that while the bipartisan budget proposal mostly level funds K-12 programs, the organization was "pleased that the final agreement aligned more closely with the bipartisan Senate proposal than with the deep cuts advanced by House Republicans."
Other organizations applauded Congress' recommendation to keep K-12 programming within the Education Department.
"We are particularly encouraged that this agreement preserves the integrity of the U.S. Department of Education," Verjeana McCotter-Jacobs, executive director and CEO of the National School Boards Association, said in a Jan. 20 statement. "By including explicit language that prevents the unauthorized transfer of the Department’s statutory duties to other agencies, Congress has acted to protect the essential expertise and civil rights protections that only a dedicated education agency can provide.”
