House Passes FY26 Funding Package
As the Martin Luther King Jr. Day holiday weekend came to a close, the House and Senate Appropriations Committees jointly released bipartisan text for the remaining fiscal year 2026 (FY26) appropriations bills, including the Labor, Health and Human Services, Education and Related Agencies (Labor-HHS-ED) measure. The bill largely holds education and workforce development funding steady, rejecting the Trump administration’s earlier budget request to eliminate funding for postsecondary Career Technical Education (CTE), as well as cut the U.S. Department of Education (ED) budget by 15% and consolidate more than a dozen education programs into a single block grant.
Instead, the Labor-HHS-ED appropriations bill will continue to provide stable federal investment in state CTE systems at funding levels from FY25 via the formula state grant program authorized by the Carl D. Perkins Career and Technical Education Act (Perkins V).
Appropriators included language into the proposed funding legislation and detailed guidance in a Joint Explanatory Statement that reinforces statutory limits on the administration’s ability to transfer funds or functions from departments, such as ED, to other federal agencies. These provisions were included by congressional leaders in response to the Trump administration’s use of Interagency Agreements (IAAs) to outsource day-to-day administrative responsibilities of ED to other federal agencies. There are also requirements that ED release most state formula grants on schedule, setting July 1 for FY26 funds and October 1 for advance FY27 funds – which applies to many education and workforce programs like Perkins V, the Every Student Succeeds Act (ESSA), and the Adult Education and Family Literacy Act (AEFLA).
In addition, the bill includes new provisions requiring federal departments to maintain adequate staffing levels to fulfill program requirements and statutory obligations– likely in response to large-scale reductions in force (RIFs) made by the administration throughout last year. The FY26 appropriations package also requires regular updates and briefings regarding ED’s IAA efforts and, separately, related to waiver requests provided to states and other grantees under ESSA.
Yesterday, the full House passed the funding measure on a bipartisan basis. It is expected to be taken up by the Senate next week, ahead of the January 30 funding deadline, when the chamber returns to Capitol Hill from this week’s recess.
Advance CTE will continue to monitor the FY26 process closely and advocate for greater investments in CTE and other federal education and workforce development efforts. View the current appropriations status table here.
ED Encourages Flexibility for Success
This week, ED sent a letter to state education leaders encouraging them to use existing Title I schoolwide program flexibilities, which allow federal, state, and local funds to be consolidated to better support student success and reduce administrative burden. This guidance aims to help schools tailor resources more effectively to improve academic outcomes. Read more in the ED press release here.
States Expand Lawsuit to Include Interagency Agreements
Earlier this month, states challenging the administration’s efforts to close or transfer statutorily required education programs from the Department of Education (ED) to other executive departments and agencies filed an amended complaint related to the IAAs. The complaint includes the agreement to shift the administration of Perkins V from the Office of Career, Technical, and Adult Education (OCTAE) to the U.S. Department of Labor (DOL). In a related action, ED announced it will conduct Tribal consultation on a separate IAA seeking to transfer functions to the Departments of Labor and Interior, and will seek input on funding stability, coordination, and implementation impacts.
Celebrating CTE Month
February is Career Technical Education (CTE) Month®, a time to spotlight how CTE prepares learners for in-demand careers and supports strong, resilient economies. States, schools, and partners across the country are marking the month with events, learner spotlights, employer engagement, and social media campaigns that highlight the impact of high-quality CTE programs.
Planning an activity for CTE Month? Advance CTE wants to hear from you.
Education Department Drops Appeal on DEI Guidance
The Trump administration has dropped its appeal of a federal court order blocking ED’s guidance regarding diversity, equity, and inclusion (DEI), allowing an August ruling to stand. The decision ends the administration’s effort to penalize schools over DEI initiatives, which the court found violated the First Amendment and federal procedural requirements. Read more here.
