Federal Updates

This week, the Department of Agriculture (USDA) issued a proposed rule to limit broad-based categorical eligibility, which allows states to streamline applications for the Supplemental Nutrition Assistance Program (SNAP) based on enrollment in other means-tested programs.

The balance of power in Washington has shifted. After two years of unified Republican control, the country is headed for divided government. When the 120th Congress is sworn in on January 3, 2027, Democrats will hold more than 250 of 435 House seats and at least 54 Senate seats, with Mississippi and Alaska still undecided.

New guidance from the U.S. Department of Education (USED) highlights their efforts to increase enforcement of the Protection of Pupil Rights Amendment (PPRA). The guidance details how school districts must approach parental consent, student surveys and the collection of sensitive student information.

A federal appeals court decision raises significant questions about the administration and funding of the nation’s universal service fund (USF) programs, including E-Rate.

On October 2, the U.S. Department of Treasury issued temporary and proposed regulations on the Federal Scholarship Tax Credit (FSTC) program that clarify the roles of states and SGOs, establish initial operating and reporting requirements, and confirm several implementation options relevant to public school districts.

On September 24, the White House sent Congress a rescission package that would cut $810 million of federal funding that was appropriated by Congress for Fiscal Year 2026 but has not yet spent.

The President signed the Supporting Early-Childhood Educators’ Deductions (SEED) Act, allowing early childhood and pre-K educators to claim the same $350 federal tax deduction for out-of-pocket classroom expenses as K-12 teachers. This deduction will help offset the hundreds of dollars educators spend out of their own pockets each year on classroom supplies, books, and learning materials.