Category: Federal Government Actions

USDE Withholds $6.2B from Schools (July 7, 2025)

As a result of $6.2 billion in federal K-12 grant money that the U.S. Department of Education (USDE) is withholding from states and school districts, it is likely that they will be forced to cancel after-school programming, services for English learners and professional development.

The funding that has already been appropriated by Congress and that was supposed to be available to states and school districts on July 1st are:
-Title II-A for professional development: $2.2 billion.
-Title IV-A for student support and academic enrichment: $1.4 billion.
-Title IV-B for 21st Century Community Learning Centers:  $1.3 billion.
-Title III-A for English-learner services:  $890 million.
-Title I-C for migrant education: $375 million.

Although it presently appears that federal funding for Title I to support students from low-income communities and for the Individuals with Disabilities Education Act (IDEA) for students with disabilities is being distributed, the USDE notified states on June 30th that decisions have not yet been made concerning submissions and awards for this upcoming academic year. The USDE usually allows state education agencies to draw down their funds by July 1st so states and school districts can plan their spending for the upcoming school year.

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Proposed Medicaid Cuts Would Be Devastating Many Pennsylvanians (June 27, 2025)

According to Nicole Stallings, President and CEO of The Hospital and Healthsystem Association of Pennsylvania, “Proposed Medicaid cuts will put Pennsylvanians’ access to care in jeopardy, especially in rural areas, making our communities less healthy and economically competitive.” Combined, proposed federal Medicaid and Pennie cuts could jeopardize health coverage for over 570,000 Pennsylvanians, drive up health care costs, and put rural hospitals at risk of closure.

There is a growing fear that, if passed, proposed Medicaid cuts in Congressional Republicans’ budget bill would have devastating impacts on Pennsylvania’s health care system.

“The proposed changes to the Medicaid program would have grave consequences for health care across Pennsylvania, from hospitals to individuals in both urban and rural communities,” said Secretary of Health Dr. Debra Bogen. “When people do not have health insurance, they are forced to forego preventive care and rely on emergency care. This, in turn, leads not only to worse health outcomes, but also increases uncompensated health care services, increases insurance premiums, and increases health care costs for all Pennsylvanians – on top of contributing to overcrowded emergency rooms.” 

Currently, proposed changes to Medicaid could strip health coverage from more than 300,000 Pennsylvanians, drive up health care costs, and put rural hospitals out of business. 

But the impact of the current federal proposal doesn’t end there. The bill fails to extend enhanced premium tax credits available to Pennsylvanians who purchase health insurance through Pennie, Pennsylvania’s official health insurance marketplace. These tax credits have made coverage more affordable than ever, and if they expire on schedule at the end of this year, it will also risk health insurance for an additional 270,000 Pennsylvanians, adding to the risk to hospitals and an increase in rates of uninsured and/or uncompensated care.

The loss of Medicaid-funded health care services will likely result in:

-Increases in uncompensated care;

-Exacerbation of chronic conditions such as diabetes or heart conditions; and/or

-Delays in seeking care or treatment, leading to worsened conditions, advanced diagnoses, and higher costs over time.

Pennsylvania cannot backfill or absorb these additional costs, as the Medicaid cuts create an unprecedented and unfunded increase in administrative burden that will strain existing operations and divert resources from delivering services to Pennsylvanians. 

Medicaid cuts will also hurt county and local agencies responsible for eligibility and program support. Medicaid provides health coverage for approximately three million Pennsylvanians. During fiscal year 2024-25, the Commonwealth contributed more than $14 billion to the Medicaid program, which is matched by more than $30 billion in federal funds.

Plaintiffs Prevail in Opt-out Case (June 27, 2025)

As reported by K-12 Dive, on June 27, 2025, in a 6-3 ruling, the U.S. Supreme Court (Court) ruled that schools must allow parents to opt their children out of curriculum based on religious objections in some scenarios. The decision in Mahmoud v. Taylor signifies a win for parents in Maryland’s largest school district and could impact school policies nationwide, as the court weighed in on LGBTQ+ curriculum policies that have contributed to a polarization. The Court’s majority wrote that few religious acts are as important to people of faith as the religious education of their children.

The U.S. Department of Education, which has promoted the exclusion of what it calls “gender ideology” from schools, celebrated the ruling as U.S. Secretary of Education Linda McMahon called the decision a ”major win for religious liberty and parental rights” and that schools, as a result, “can’t shut parents out or disregard their religious obligations to their children.” 

However, the National Education Association (NEA) said the decision could result in self-censorship of educators and the removal of LGBTQ+ books from shelves and curriculum.

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E-rate Survives Via SCOTUS Ruling (June 27, 2025)

In a June 27, 2025 decision, the U.S. Supreme Court (SCOTUS) preserved E-rate’s funding mechanism in a 6-3 opinion. The decision preserved the multibillion-dollar federal internet discount program for schools and libraries and means schools can continue to apply for the program’s funding.

The ruling in FCC v. Consumers’ Research keeps in place the Universal Service Administrative Co. (USAC), the private nonprofit company created by the Federal Communications Commission to administer the program. The supermajority of justices deemed it constitutional for the company to continue assisting in “projecting revenues and expenses, so that carriers pay the needed amount.”

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CTE’s Proposed Move to DOL is Criticized by Advocates (June 25, 2025)

Efforts by the Trump administration to move responsibility for career and technical education (CTE) from the U.S. Department of Education (USDE) to the U.S. Department of Labor (DOL) are being met with resistance from CTE advocates and Democratic lawmakers who claim that it is “fragmented” and “illegal.” The criticism follows last month’s signing of an interagency agreement to “promote innovation and process improvements in pursuit of better employment and earnings outcomes for program participants.” Thus far, the agreement, has been paused due to legal challenges.

The planned transfer of CTE responsibilities out of the USDE is another step towards dismantling that agency. 

The CTE interagency agreement ”lays out a confusing and fragmented division of roles and responsibilities” between DOL’s Employment and Training Administration and the USDE’s Office of Career, Technical, and Adult Education, said Advance CTE, an organization of state CTE directors and related professionals, in a June 13 statement.

Advance CTE and the Association for Career and Technical Education, a CTE advocacy organization, said in a June 11 joint statement that the agreement would have “far-reaching negative impacts on CTE programs and learners across the country.” That’s because the agreement “directly circumvents existing statutory requirements” under the Carl D. Perkins Career and Technical Education Act, the groups said.

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