US Federal Budget Summary: Education
Federal education grants support learners through their entire educational journey—from early childhood interventions and K-12 classrooms through advanced university research and workforce credentialing. While local taxes, state governments, and student tuitions fuel the baseline operations of educational institutions, federal dollars act as a critical supplement. These funds support disadvantaged student populations and finance specialized national initiatives that local budgets cannot fully support. Ultimately, such funding flows to state education agencies (SEAs), local districts, higher education institutions, charter networks, and specialized nonprofits.
This year, funding for education and workforce development initiatives was approved in the third spending minibus. This means grants are flowing from the Departments of Education, Labor, and other major players.
Major Funders
Learn more about the NSF’s efforts to strengthen STEM teaching and learning at two- and four-year institutions from our recent webinar.
Event link - https://www2.grantsoffice.com/WritingIUSE
Event title - Improving Undergraduate STEM Education (IUSE): Strategies to Strengthen Your Proposal
Pursuing federal education dollars in 2026 will demand a targeted approach from schools and universities. While the administration is maintaining core spending programs for student equity, it continues to pull back on discretionary grants designed for educational innovation. As top-line budgets for experimental initiatives tighten, education leaders must pivot their grant strategies to focus on foundational learning, workforce readiness, and immediate outcomes.
- Preserving Core Formulas: The final 2026 budget largely rejected calls for deep cuts to federal education funding, opting instead to sustain the formula funding institutions rely on to support their vulnerable students from preschool to post-secondary. In the K-12 landscape, Title I programs will be funded at levels comparable to previous years, while IDEA Part B formula funds received a 6.8% increase to reach $15.19 billion. At the post-secondary level, equity remains a focus, with Minority-Serving Institutions (MSIs) and Tribally Controlled Colleges and Universities (TCUs) seeing across-the-board funding boosts. For a comprehensive breakdown of exactly how these formula funds are shaping the year ahead, see our full analysis of the Department of Education budget on pages 30 and 31.
- Targeting Workforce Pathways and School Choice: The administration continues to favor school choice and targeted skills training over traditional educational pathways. In K-12, the budget sustained the Charter Schools and Magnet Schools Assistance programs, echoing federal preferences for open enrollment and the empowerment of parental rights in educational placement. In higher education, the focus pivots toward employer-aligned skills across multiple agencies; the Department of Labor’s regional Targeted Worker Training program saw a 10% funding increase, mirroring the Department of Education's $13.95 million allocation for Tribally Controlled Postsecondary Career and Technical Education.
- Pulling Back on Innovation: Across the entire education spectrum, the 2026 budget signals a distinct pullback on funding for experimental, field-initiated practices. This trend crosses agency lines: the National Science Foundation’s STEM Education allocation fell nearly 20% to $938 million, mirroring the Department of Education's 9.3% cut to the Education Innovation and Research (EIR) program - the federal government's primary vehicle for scaling new K-12 models and ed-tech - alongside a 70% reduction to its Fund for the Improvement of Postsecondary Education (FIPSE) Research and Development Infrastructure Grants.
Grants to Watch out For