White House Plan Looks to Phase Out Crucial Rural Ed Fund (May 31, 2026)

As reported by The 74, the Rural Education Achievement Program (REAP) is among the 17 funding sources that the Trump administration wants to roll into a $2 billion block grant. Congress approved $220 million for REAP this year, but under the president’s plan, governors and state education chiefs would decide whether rural districts would get extra money. In fact, rural districts struggle to apply for large, competitive grant programs and rural school officials have expressed great concern that money rolled into a block grant would be swallowed up by the bigger schools as their needs are much greater than those in rural areas. Such an outcome would leave “small rural schools looking to find funding despite their not having grant writers and cannot bring in the resources other states might have or other cities might have. In fact, rural districts struggle is applying for large, competitive grant programs

REAP does not work like a block grant and districts eligible for the funds, based on size and location, receive an invitation to apply. Most do apply since the process is simple, direct and does not require extensive administrative capacity.

Districts that qualify for Small, Rural School Achievement funding, one of the two REAP programs, have fewer than 600 students and are located in an area their state defines as rural. Others, with 20% of students who live below the poverty line, qualify for the Rural and Low-Income School program, and some are eligible for both. This year, 17,873 were eligible for one or both programs and funding is used for use the funds for tutoring, afterschool and technology needs, bullying prevention, special education assistants, and support to help students graduate.

The administration pitched the same block grant idea last year, and Congress ultimately rejected it.

For more from The 74, click here.

PHEAA Explains How the OBBBA Impacts Student Loans (May 30, 2026)

The One Big Beautiful Bill Act (OBBBA) has introduced new laws to update how the U.S. Department of Education administers financial aid. This includes new rules for undergraduates, graduate students, and parents. 

Some of the OBBBA requirements started immediately after the bill was signed. However, most OBBBA requirements for Direct student loans and financial aid will start on or after July 1, 2026.

For additional information on how this may impact students and student loans, please visit the PHEAA OBBBA Student Loan webpage.

USDE’s Plan to End Some IDEA Data Collections Meets with Opposition (May 29, 2026)

Special education and disability groups have been joined by some state attorneys general in pushing back against a U.S. Department of Education (USDE) plan to drop certain data collections tracking racial disparities. In a March 23 Federal Register notice, the USDE sought public comment on proposed changes to the federally required State Performance Plans and Annual Performance Reports for special education. Under the Individuals with Disabilities Education Act (IDEA), each state must develop these documents to evaluate their efforts to implement IDEA requirements and detail how it will make improvements.

Specifically, the USDE has suggested eliminating data collections used in these reports for:
-Significant discrepancies in suspension and expulsion rates for students with disabilities.
-Significant discrepancies in suspension and expulsion for students with disabilities by race and ethnicity, and policies contributing to those discrepancies.
-Disproportionate representation of racial and ethnic groups in specific disability categories that result from inappropriate identification.

Opponents say the data collections on racial disparities are essential to states’ compliance with IDEA.  For example, the Council of Administrators of Special Education (CASE), in a May 22 public comment submission, said it “feels strongly that these indicators are critical to shining a light on inequities regarding discipline and disproportionate representation in special education.” CASE also took issue with the USDE’s rationale that there is already a “wealth of discipline data related to students with disabilities” from Office for Civil Rights (OCR) reporting. However, CASE called this approach “deeply flawed” given that OCR has undergone significant staff reductions under the Trump administration.

The USDE’s proposed fiscal year 2027 budget recommends reducing OCR staffing to 271 and shrinking the office’s budget to $91 million in FY 27. OCR had 530 staffers and a $140 million budget in FY25.

For more from K-12 Dive, click here.

PA One of 25 States and DC Filing Suit Against the USDE on Professional Degree Exclusion (May 28, 2026)

The U.S. Department of Education’s (USDE) professional degree definition is now being challenged in court as 25 states, including Pennsylvania, and the District of Columbia sued the USDE on May 19, 2026 for excluding graduate nursing and other major fields. The plaintiffs, led by Maryland Attorney General Anthony Brown, said in a May 19th statement that the rule “unlawfully excludes many degree programs that qualify under the standards established by federal law, potentially reducing access to financial aid for students pursuing advanced education.”

The lawsuit also alleges that the USDE illegally changed an existing federal definition of “professional degree” that Congress incorporated into law. Those alterations included adding new requirements and narrowing the eligibility in a manner that Congress never authorized.

Click here to see the court filing.

For more from K-12 Dive, click here.

USDE Faces Increased Pressure to Release Research Funds That Include Sp.Ed. (May 27, 2026)

The U.S. Department of Education (USDE) is facing pressure from K-12 and college groups, as well as a bipartisan group of U.S. senators, to release nearly $300 million in funding for education research.

In fact, both groups sent letters to U.S. Education Secretary Linda McMahon this month, calling for the USDE to disperse unallocated money for the agency’s Institute of Education Sciences (IES) from fiscal years 2025 and 2026 and claiming that the FY25 funds will expire after September 30, 2026 if not allocated.

In a May 11 letter, a bipartisan group of 19 U.S. senators, including Sen. Jeff Merkley, D-Ore., Sen. Thom Tillis, R-N.C., and Sen. Elizabeth Warren, D-Mass., said the USDE received $793 million in FY25 and $789.6 million in FY26 for IES activities and there was a remaining balance of about $290 million that would lapse September 30th. According to Senator Merkley, a lack of spending at IES has led to “the sharp decline of special education research and data gathering,” The senators also criticized what they said are the closeouts of hundreds of unreviewed IES FY25 grant proposals within the National Center for Education Research and the National Center for Special Education Research, which resulted in no new awards being made over the past year, and these awards are crucial to addressing urgent educational challenges facing students.

For more from K-12 Dive, click here.