For superintendents navigating tight district budgets, a new federal budget proposal signals a significant realignment of how federal dollars will flow to local schools, with fewer programmatic strings attached but also fewer dedicated funding streams.
The Trump administration on Friday released its fiscal year 2027 budget proposal, which includes one of the most consequential changes to K12 funding streams. The MEGA (Make Education Great Again) grants are a $2 billion consolidated fund designed to replace most of the U.S. Department of Education’s elementary and secondary grant programs.
“This overhaul of grant-making eliminates the Department’s ability to micromanage federal funds intended for local communities,” the budget reads.
Seventeen existing programs totaling $6.5 billion would be folded into the MEGA grant structure, while maintaining Title I funding at $18.4 billion. The shift from categorical to block grant funding will require special attention from district financial officials to how MEGA grant rules are written.
Congress has the final authority over appropriations, although prior budget requests included similar cuts and were never enacted.
The budget does not explicitly name the 17 programs being folded into the MEGA grants, but it identifies specific eliminations and consolidation categories. Programs being eliminated outright include:
- Teacher Quality Partnership (-$70 million): Funding for educator preparation partnerships between universities and high-needs districts.
- Training and Advisory Services/Equity Assistance Centers (-$7 million): Regional equity assistance centers for desegregation and civil-rights related technical assistance.
- Comprehensive Centers (-$50 million): Regional technical assistance centers providing support to states and districts.
- Migrant Education and Special Programs for Migrant Students (-$428 million): Funding for programs supporting children of migrant agricultural workers.
- English Language Acquisition (-$890 million): The proposal cites concerns about bilingual emphasis over English proficiency, potentially impacting districts serving large English-learner populations.
Critics argue that the proposal places the burden on vulnerable students.
“While were thrilled NASSP school leaders successfully pushed for additional funding for students with special needs, slashing programs that support English learners, migrant students, and educator preparation will cause lasting harm to our kids,” said Ronn Nozoe, CEO of the National Association of Secondary School Principals.
Special education and charter school funding
The proposal includes a $539 million increase for Individuals with Disabilities Education Act (IDEA) programs, raising total special education funding to nearly $16 billion. Key components of the IDEA boost include:
- A $439 million increase for IDEA State Grants while consolidating six smaller IDEA programs to reduce administrative burden on state agencies and districts.
- A $50 million increase for IDEA Grants for Infants and Families.
- Proposed flexibility for states to streamline enrollment processes for expectant parents of children likely to have a disability.
The administration would also commit $500 milion to expand the number of charter schools, broadening the Education Department’s school choice expansion agenda.
Career and Technical Education takes a new form
Meanwhile, the budget proposes moving the Office of Career, Technical, and Adult Education (OCTAE) and its associated Perkins V programming to the Department of Labor. This represents another step toward efficiency by offloading program responsibilities from the Education Department, the administration contends.
“Transferring OCTAE to DOL helps fulfill the President’s promise to return education to the states, breaks up federal bureaucracy, and reduces administrative burden on states and the workforce development system so they can focus on helping Americans enter the workforce,” the budget reads.
District leaders should expect different regulatory and reporting requirements, including implementation timelines.
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