July 2, 2025
Federal education policy is shifting rapidly—and this week has brought a wave of significant, fast-moving developments. We’re committed to keeping members informed and ready to respond in real time.
FY25 Federal Funding Delay
Late Monday night, the U.S. Department of Education informed states it will delay FY25 allocations for Title I-C, II-A, III-A, IV-A, and IV-B until further review—just hours before funds were expected to be available. These programs represent over $6 billion that schools are depending on for critical services.
The Department cited the transition between administrations and a need to align spending with new priorities. AESA has strongly opposed the delay and will continue pressing USED and OMB to release the funds.
We recognize that our call to action in yesterday's Online News came just as the ground shifted, but the overall message remains: Contact congressional education staff and urge them to advocate for immediate release. A recent EducationWeek article outlines the amount of funding being withheld by each state. This information can be a valuable tool to strengthen your outreach and emphasize the urgency of releasing these funds.
Reconciliation Bill Passed
The Senate passed the reconciliation package (the One Big Beautiful Bill) last night. The bill includes troubling language establishing a national school voucher program, despite strong opposition. An amendment to strike it failed by one vote (50–50). The provision remains in the bill as it moves to the House.
We are grateful for your continued advocacy in opposing this provision. While the fight is not over, its inclusion in the Senate-passed package increases the likelihood that it will remain in the final bill.
Key components of the voucher provision:
- Creates a permanent, unlimited tax credit for private school donations (removing the $4B cap).
- Caps individual donations at $1,700 for a dollar-for-dollar tax credit (replacing the original 10% of AGI).
- Eliminates protections against federal control over private and religious schools.
- Grants sweeping authority to the Secretary of Treasury to regulate SGOs and potentially private schools.
- Allows states to “opt in” to administer SGOs and distribute vouchers—participation is voluntary, but once opted in, oversight is required.
We’ll continue to keep members updated as this legislation moves forward.