Budget Watch: Federal Edition

Written by: Sarah Waldinger, Policy Director

Friday, November 7, 2025

How does the Government Shutdown Impact Alabama Students after November 1?

The U.S. Congress has not passed a budget or a continuing resolution to fund the federal government. One month has passed since the shutdown started on October 1st, and we will start seeing additional impacts on Alabama’s students, families, and schools beginning November 1.

In October, all federal funding for Alabama’s schools was released for the 2025-2026 school year. This includes funding for Title I programs, special education students through IDEA, and grant programs that were awarded over the summer. Programs that were paused include Impact Aid, which provides about $2.5 million to 17 Alabama districts, Head Start, Civil Rights investigations, and new grantmaking activities at the USED.

Some programs that were funded through October will face changes in November. These changes will begin to impact Alabama students, families, and schools.

  • Snap: Benefits were anticipated to be suspended on November 1, according to the Alabama Department of Human Services. On Oct 31, a court order required the Trump Administration to provide funding for SNAP. On Nov 4, the Trump Administration announced that November’s SNAP payments would be partially funded. We do not have information yet on how much partial funding there will be, or when it will be available for SNAP recipients.
    • Recipients are required to continue recertifying their eligibility for the program, but EBT cards will not be funded. This impacts 750,000 Alabamians, and over 224,000 of those are school-aged children.
    • To respond to this suspension of funds, Governor Ivey has released $2 million of Alabama’s emergency funds to go towards food banks across the state. The Alabama Department of Human Resources is redirecting an additional $3 million to the Feeding Alabama food bank network.
    • For more information about how this impacts our state and students, check out the Alabama Daily News’ articles on SNAP’s connection to schools and a call for a special legislative session, and the Alabama Political Reporter’s article on partial SNAP funding.

 

  • WIC: Benefits will be suspended on November 1 until federal funding is provided. This program provides food and health services to mothers and children. This impacts 110,000 Alabamians, including pregnant women, infants, and children.

 

  • Head Start: Programs that were set to renew in October will begin to lose federal funding starting November 1. This impacts 972 slots for Alabama children and 281 early childhood jobs in Alabama.

 

  • Affordable Care Act Marketplace: Open enrollment for healthcare begins on November 1. As a result of the One Big Beautiful Bill Act and the government shutdown, healthcare tax credits are expiring. This causes premiums to increase for Alabama families. Over 477,000 Alabamians who are enrolled in healthcare through the marketplace will experience increased premiums.
    • It is estimated that a 40-year-old individual in Alabama making $62,000 annually will see an increase of about $2,000. 
    • A 60-year-old couple in Alabama making $82,000 annually will see an increase of over $20,000. 
    • For more estimates, check out the Center on Budget and Policy Priorities.

Thursday, October 2, 2025

How does the Government Shutdown Impact Alabama Students?

The U.S. Congress did not pass a budget package or a continuing resolution to fund the government by September 30. This means that as of October 1, the government has shut down. Many of the departments, including the Department of Education, will only do their required functions, furlough a portion of their employees, and pause programs until a budget is passed. What does this mean for K-12 education and Alabama students?

Secretary McMahon released the USED’s contingency plan for the government shutdown on September 28. According to the plan, 2,117 USED employees will be furloughed (mandatory, unpaid leave with the expectation of backpay when they return), and 330 employees will remain at the department to perform necessary functions. The Office of Management and Budget has communicated that reductions in force (RIFs) can be considered for noncritical programs, but the USED has not taken that path at this time.

While some programs will be paused, the majority of funding for schools this year will be released as normal (including Title I and special education through IDEA). Here’s an overview of what will continue at the USED during the government shutdown: 

  • Title I and IDEA funds for the 2025-2026 school year will be released by October 3 as normal.
  • Forward-funded programs, which Congress approved last year for the 2025-2026 school year, should receive their funding by October 3 as normal.
  • School breakfast and lunch programs will continue as normal for at least three months through the USED and the US Department of Agriculture.
  • Grants that the USED awarded over the summer will continue as normal.
  • Student aid disbursements and loan collections will continue as normal.

There are some potential and critical impacts on Alabama students. Some programs and functions at the USED will be paused until the government shutdown ends. Alabama districts will be affected by pauses in Impact Aid and Head Start funding, and local and state leaders may need to make difficult decisions in the face of uncertainty. 

  • Impact Aid funds for the 2025-2026 school year will not be released until the shutdown is over, because they are not forward-funded. Alabama districts received $2.5 million in 2024 to support districts with tax-exempt federal property, such as military owned property, within their boundaries.
    • Autauga County, Daleville City, Enterprise City, Eufaula City, Fairfield City, Huntsville City, Macon County, Madison City, Madison County, Marion County, Opelika City, Ozark City, Perry County, Phenix City, Piedmont City, Russell County, and Sylacauga City Schools received Impact Aid funding last year.
  • Head Start programs are funded on a rolling basis, and do not keep reserves. Programs that are set to receive funding during the shutdown may close. 12,548 Alabama children were enrolled in Head Start and Early Head Start in 2024.
  • Higher Education may face challenges with funding related to research, international students, and data systems that report enrollment, institutional health measures, student loan portfolios, and other measures.
  • All new grantmaking activities, supporting education from pre-k to higher education, are paused.
  • The Office for Civil Rights’ reviews and investigations are paused.
  • Development and implementation of guidance, technical assistance, and regulatory actions throughout the USED are paused.

While necessary funds will continue to flow, with limited staff the USED will not be able to provide the assistance and support they typically provide to states. Local boards of education are facing uncertainty, especially when it comes to forward-planning for next year. There is no certainty around how much funding will be available in the future, which could lead to local boards ending programs in anticipation of less funding. The Alabama State Department of Education will likely need to make decisions that were previously referred to the USED, and as the shutdown continues the SBOE and the Alabama Legislature may face difficult decisions about funding education programs across the state. 

To learn more about the shutdown’s impacts on students, check out articles by Whiteboard Advisors, The Hill, and Education Week.

Thursday, September 25, 2025

Every year, the U.S. Congress passes a package of appropriation bills to fund the federal government and its programs. Funding for programs like Title I, Special Education, and summer and afterschool programs flows from the US Department of Education (USED). Congress passes the budget for these programs through a budget bill called the Labor, Health and Human Services, Education, and Related Agencies Appropriations Act. The Administration, Senate, and House of Representatives have all proposed their own versions of the budget, which have major implications for Alabama children. We outline below a detailed view of what funding streams may be affected, and how they may impact Alabama students. For a one-page comparison of the three budgets, click here.

The budget process starts with the President’s budget request, then moves through both chambers of Congress before being signed into law. President Trump’s budget request was introduced to Congress in May. The House and Senate both changed, or marked up, the President’s budget request based on their priorities. Congress now must agree on a budget or a continuing resolution, which is a short-term budget, by October 1, 2025. If a budget is not signed by October 1, the government will shut down.

While budget information for the Office of Postsecondary Education, affecting Alabama’s higher education programs, and Children and Families Services Programs are also available in the LHHS budget package, we have chosen to focus only on impacts to K-12 education. Check out the budget proposals below

U.S. House of Representatives FY26 Education Budget Request

The House of Representatives Appropriations Committee passed their version of the budget out of committee on September 9. The budget request for the USED within this proposal for FY 2026 totals $66.68 billion. This is a $12.05 billion cut from FY 2025, and $21.6 million less than the Trump Administration’s budget request. Next, the full House of Representatives must vote on the budget. For more information, check out the House Appropriation’s summary, press release, and full report.

Title I

Title I funds are directed towards economically disadvantaged students. This budget decreases Title I compared to FY 2025 by 27% or $5 billion, for a total of $13.9 billion. Some funding will travel to local districts to support students from low-income families through Title I-A, but sections B, C, and D will be cut. For reference, here is how much AL received through these sections last year: 

  • Title I-A, AL received $302 million in 2024 for schools with higher percentages of children from low-income families. 
  • Title I-B, AL received $6.2 million in 2024 for State Assessment Grants. 
  • Title I-C, AL received $1.9 million in 2024 for Migrant Education and Special Programs for Migrant Students. 
  • Title I-D, AL received $305k in 2024 for Neglected, Delinquent, and At-Risk Children and Youth.

Special Education (SPED)

SPED funds are allocated to support students with special needs. The House budget provides $15.5 billion to SPED, which is an increase from FY25. The Administration’s budget request would establish a new Special Education Simplified Funding Program, which would modify how states receive their funds and introduce flexibility. The House version does not include this change. In 2024, Alabama received $193 million for SPED in total.

Other Programs

The Administration’s budget request rolled 18 line items into the new Simplified Funding Program (SFP) flexible state grant. In the House budget, these programs continue to exist independently. The House proposal funds the following programs:

The House proposal eliminates the following programs:

U.S. Senate FY26 Education Budget Request

The Senate Appropriations Committee passed their version of the budget out of committee on July 31. The budget request for the USED within this proposal for FY 2026 totals $79 million. This is a $300 million increase from FY 2025. Next, the full Senate must vote on the budget. For more information, check out the Senate Appropriation’s summary, press release, and full report.

This proposal made some changes from the Trump Administration’s budget request. Specifically, it addresses the following initiatives that were requested by the Administration:

  • The Administration’s request includes an intent to close the USED. The Senate’s proposal requires the USED to continue to function and employ as much staff as needed to continue operating.
  • The Administration’s request creates a variety of flexible state grants to replace Title I funding, SPED funding, and specific line items. The Senate’s proposal funds each program individually.
  • The Administration’s request includes intent to shift USED programs to other departments. The Senate’s version continues to maintain these programs under the USED.
  • The Senate’s version requires the timely release of formula grant funds. This comes as a response to the funding freeze a few weeks ago.

Title I

Title I funds are directed towards economically disadvantaged students. This budget increases Title I compared to FY 2025 by $50 million, for a total of $19.15 billion. The increases are specifically for Title I, Parts A, C, and D. This version of the budget keeps Title I-C, which the Administration’s budget would eliminate, and Title I-B, which the Administration’s budget would roll into a state grant. Here are the amounts Alabama received in 2024:

  • Title I-A, AL received $302 million in 2024 for schools with higher percentages of children from low-income families. 
  • Title I-B, AL received $6.2 million in 2024 for State Assessment Grants. 
  • Title I-C, AL received $1.9 million in 2024 for Migrant Education and Special Programs for Migrant Students. 
  • Title I-D, AL received $305k in 2024 for Neglected, Delinquent, and At-Risk Children and Youth.

Special Education (SPED)

SPED funds are directed towards students with special needs. The Senate budget provides $15.5 billion to SPED, which is an increase from FY25. The Administration’s budget request would create a new Special Education Simplified Funding Program, which would change how states receive their funds and add flexibility. The Senate version does not include this change. In 2024, Alabama received $193 million for SPED in total.

Other Programs

This budget maintains or slightly increases most USED programs. The following programs were going to be rolled into the Simplified Funding Program (SFP) flexible state grant in the Administration’s budget request. In the Senate budget, they continue to be their own programs.

The following programs were slated for elimination under the Trump Administration’s budget request. Under the Senate’s proposal, these programs would remain and continue to be funded at FY25 levels or higher.

Wednesday, June 18, 2025

Every year, the U.S. Congress passes a package of appropriation bills to fund the federal government and its programs. This includes the U.S. Department of Education, which supplements state and local funding for K-12 education nationwide. The budget process starts with the President’s budget request, then moves through both chambers of Congress before being signed into law.

Trump Administration Releases FY26 Education Budget Request

This year, President Trump’s education budget request for Fiscal Year 2026, known as the “skinny budget,” reflects the administration’s goal to wind down the US Department of Education. Overall, the budget request for 2026 is $66.7 billion. This is a $12.4 billion or 15.3% reduction below the 2025 budget. The USED budget impacts funding for K-12 schools, higher education, and other educational programs. In addition to the reduction, the request includes a reformation of how funds are allocated to states. These changes would increase flexibility, but there is a lot of uncertainty about how the funds would be allocated to Alabama.

The budget passed the US House, and has moved on to the US Senate for debate. Education Secretary Linda McMahon testified in front of the House Appropriations Committee on May 21, House Committee on Education and Workforce on June 4, and Senate Appropriations Subcommittee on the Departments of Labor, Health and Human Services, and Education and Related Agencies on June 6. As the budget moves through Congress, we are tracking how these changes might impact Alabama’s K-12 education system.

Title I

Title I funds are directed towards economically disadvantaged students. The budget reduces Title I funding by $701 million in total. Title I-A is maintained, but other programs under Title I are either eliminated or rolled into a new grant to states. We don’t know how much money each state will receive through the grant system. In 2024, Alabama received $302 million for Title I-A, and $6.5 million for the Title I programs rolled into the proposed Simplified Funding Plan (SFP) detailed below. Here are the amounts Alabama received in 2024:

  • Title I-A, for schools with higher percentages of children from low-income families, will be maintained. AL received $302 million in 2024.
  • Title I-B, for State Assessment Grants, will be rolled into the SFP. AL received $6.2 million in 2024.
  • Title I-C, for Migrant Education and Special Programs for Migrant Students, will be eliminated. Information on this funding for AL in 2024 was not available.
  • Title I-D, for Neglected, Delinquent, and At-Risk Children and Youth, will be rolled into the SFP. AL received $305k in 2024.

Special Education (SPED)

SPED funds are directed towards students with special needs. The budget maintains SPED funding overall, but changes how it is allocated to states. Some programs will be maintained, and others will roll into a new Special Education Simplified Funding Program. In 2024, Alabama received $193 million for Special Education in total.

  1. IDEA B, for people with special needs ages 3-21, will be rolled into the Special Education SFP.
  2. IDEA B-619, for special needs Preschool Grants, will be rolled into the Special Education SFP.
  3. IDEA Part C, for Grants for Infants and Families, will be maintained on its own.

Simplified Funding Program (SFP)

This new program rolls 18 programs into one state grant program. Previously, these programs totaled $4.5 billion nationally. The budget for the new SFP is $2 billion. In 2024, Alabama received about $97 million for these 18 programs. We don’t know how much money each state will receive under the SFP. See below for the amounts Alabama received in 2024.

  1. Comprehensive Literacy State Development Grants – $0
  2. Innovative Approaches to Literacy – $3.7 million for Tuscaloosa City Schools over 5 years, starting in 2023. $750K received so far.
  3. Neglected, Delinquent, and At-Risk Children and Youth (Title I-D) – $305K
  4. Supporting Effective Instruction State Grants (Title II-A) – $39.4 million
  5. 21st Century Community Learning Centers (Title IV-B) – $21.4 million for summer and after-school programs.
  6. State Assessments (Title I-B) – $6.2 million
  7. Education for Homeless Children and Youths – $2.1 million
  8. Native Hawaiian Education (ESEA VI-B) – $0
  9. Alaska Native Education (ESEA VA-C) – $0
  10. Rural Education (ESEA V-B) – Information on this funding for AL in 2024 was not available.
  11. Students Support and Academic Enrichment Grants – $22.3 million
  12. American History and Civics Education (ESEA II-B3) – $2 million for Auburn over 5 years, starting in 2023. $733K received so far.
  13. Magnet Schools Assistance (ESEA IV-D) – $0
  14. Arts in Education (ESEA IV-F4) – $0
  15. Javits Gifted and Talented Education (ESEA IV-F4) – $0
  16. Statewide Family Engagement Centers (ESEA IV-E) – $0
  17. School Safety National Activities (ESEA IV-F3) – Information on this funding for AL in 2024 was not available.
  18. Promise Neighborhoods (ESEA IV-F2) – $1 million for United Way of Central Alabama

Eliminated Programs

Some programs have been eliminated from the budget. These grants will not exist under the proposed budget. Alabama received $14.4 million for these programs in 2024. See below for the amounts Alabama received in 2024.

Increased or Maintained Programs

Some programs have been maintained or increased. Alabama received $93 million for these programs in 2024. See below for the amounts Alabama received in 2024.

 

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