A bipartisan and bicameral proposed agreement released on January 19, 2026 would fund the U.S. Department of Education (USDE) at $79 billion for fiscal year 2026 (FY26), which is $217 million above FY 2025 levels. The agreement would derail the Trump administration’s efforts to downsize and eventually eliminate the USDE.
The proposed budget deal, coming months after the fiscal year began October 1, 2025, would include slight increases for special education programming, rural education and Impact Aid, which provides additional financial support to communities with tax-exempt federal properties.
The new budget proposal would also explicitly prevent the USDE from transferring statutorily required program responsibilities to other federal agencies. The House and Senate FY 26 bill would also require USDE to make formula grants available to states and school 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 USDE staff at levels necessary to fulfill its statutory responsibilities, including carrying out programs and activities funded in the bill.
Republican and House appropriations leaders praised the funding proposal, which is expected to be voted on before January 30, 2026.
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