Weekly Update
March 14, 2025
| | Ambiguity Abounds in Federal Education Policy | | |
Recent federal developments have raised questions about the future of key education services. The U.S. Department of Education announced a 50% workforce reduction, eliminating approximately 1,300 positions across various offices. Early reports indicate that the layoffs affect federal offices related to financial aid services, civil rights investigations, and education research. Meanwhile, ongoing Congressional discussions on tax and spending policy have increased the possibility of future funding reductions for federal education programs.
What Does the U.S. Department of Education Do?
Created in 1980, the U.S. Department of Education oversees several key responsibilities, including:
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Federal Financial Aid Administration – Managing student loans and grants to support higher education.
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Support for K-12 Education – Allocating funds to low-income students (Title I) and students with disabilities (IDEA grants).
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Civil Rights Enforcement – Investigating discrimination claims in educational institutions.
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Data Collection & Research – Producing key education statistics and managing the National Center for Education Statistics (NCES) and the National Assessment of Educational Progress (NAEP).
For Fiscal Year 2024, the department was funded at $268 billion, with:
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59% ($160.7 billion) allocated to Federal Student Aid programs,
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30.5% ($83 billion) for Title I grants,
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7.6% ($20.7 billion) for IDEA special education funding, and
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2.9% ($8 billion) for all remaining offices.
As of this newsletter, the Department also manages approximately $1.7 trillion in outstanding federal student loan debt.
What We Know (And Don't Know) About the Cuts
The full impact of the layoffs will take time to become clear, but early reports suggest substantial reductions in:
- The Office of Federal Student Aid (which processes loans and grants),
- The Office for Civil Rights (which investigates discrimination complaints),
- Administrative staff overseeing Title I and IDEA allocations,
- The Institute of Education Sciences (which manages educational research and data collection), and
- Technical assistance and customer service teams that support states and districts.
Many of these employees process student aid applications, investigate civil rights claims, and provide compliance assistance to states and schools. While the Department maintains that core services will continue, a reduced workforce may lead to longer processing times, delays in investigations, and limited research capacity. Cuts to IES and NCES also raise uncertainty about the future of education data collection and NAEP assessments.
Budget Negotiations and Potential Funding Impacts
In the short term, the federal government is operating under a continuing resolution (CR) that expires today. The House narrowly passed a six-month extension that includes some cuts to the Department of Education and, at the time of this newsletter, all indications are the Senate will approve the CR.
In the long term, education and workforce funding could face deeper reductions. Republicans’ tax proposal aims to reduce overall government spending, which could impact education and workforce programs by up to $330 billion. If Congress cannot agree on equivalent reductions, tax cuts would be scaled back by the difference. The extent of these potential cuts remains unresolved, but all indications suggest federal education funding will shrink in some capacity.
In short, both short- and long-term federal education funding remains in flux, with major decisions still ahead for policymakers.
What Does this Mean?
The Trump administration and Secretary Linda McMahon have argued that these layoffs are a part of a broader effort to streamline federal operations. However, many questions remain unanswered, including who will take over core functions such as processing federal student loans or distributing funding to states and school districts. The uncertainty has deepened, as 20 Democratic state attorneys general have filed lawsuits to block the layoffs, further prolonging the ambiguity.
Beyond governance questions, federal budget decisions will have tangible impacts. Both Kansas and Missouri rely on federal funds for approximately 10% of total K-12 education funding, primarily supporting students from low-income backgrounds (Title I) and special education programs (IDEA). These areas are among the most likely targets for reductions, in addition to cuts to federal student aid programs, but the full extent of cuts remains to be seen.
Aligned's Take: Given federal uncertainty, states may need to adopt more innovative approaches to compensate for potential funding reductions. While states have always led in education policy, they may take on a larger role in areas previously supported by federal initiatives, including data collection, research, and enforcement of educational standards.
Last month, we offered our suggestions in the St. Louis Post-Dispatch on how to transform Title I and give states greater flexibility in spending decisions.
| | State Rep. Brad Pollitt, a Sedalia Republican, presents a bill to the House Education Committee. PHOTO CREDIT: Annelise Hanshaw/Missouri Independent). | | |
Open Enrollment: Debunking the Myths
With the Missouri House recently passing HB 711 (Pollitt), the conversation around open enrollment and the misconceptions have intensified. While some fear this policy will destabilize public schools, the reality is far less dramatic. Open enrollment is a form of public school choice where families may send their children to schools outside their home districts.
Representative Brad Pollitt, R-Sedalia, a former teacher, coach, and superintendent, wrote the legislation with families in mind. He has worked to clarify that the bill expands opportunities for students without harming public schools — and does not require districts to participate.
HB 711 creates a voluntary open enrollment program, meaning no district must participate. Districts that opt in can set capacity limits and retain control over enrollment decisions. The bill also includes safeguards to prevent families from enrolling in a school for the specific purpose of utilizing the transfer program and to prevent sudden enrollment shifts, such as limiting outgoing transfers to 3% per year. Schools can’t turn students away because of their grades, disabilities, English language proficiency, and other protected traits. They also can’t give preference to students for their academic or athletic ability.
Despite this, Pollitt has faced persistent misleading claims about the bill, particularly claims that it forces districts to participate. He has worked to clarify that the only requirement is for districts to create a policy — they are not obligated to accept transfer students.
"What I have been trying to tell people is to listen," Pollitt said. "There are going to be Republicans in charge for a long time, and every year, there are multiple school choice bills, and this is the only option that is going to keep students in the public school system; every other choice takes them out."
He explained that his concern is that without open enrollment, families seeking alternatives could be entirely driven out of the public school system.
While open enrollment may raise concerns about district finances or student movement, 43 states already have some form of interdistrict open enrollment, and research shows that outcomes largely depend on how districts implement the policy.
When presenting the bill to the committee, Pollitt explained, "This bill is about giving families choices without undermining our public school system. Should your home address be the main determination in what public school your children attend? I don't believe it should. Open enrollment offers parents more options while maintaining accountability within the system."
Check out this study by the Prime Center at Saint Louis University to better understand open enrollment policies and their potential impact. For further coverage, read the latest reporting from the Missouri Independent.
Childcare tax credits receive broad support from business groups
This week, the Senate Emerging Issues and Professional Registration Committee heard SB 455, a childcare tax credit bill sponsored by Senator Lincoln Hough. The bill mirrors Representative Brenda Shields’ legislation, HB 269, which was also referred to the same committee this week.
For three consecutive years, Representative Brenda Shields has championed a tax credit package designed to address Missouri's childcare crisis. Her bill has passed the House with strong bipartisan support each year, including a 120-34 vote last week.
What's remarkable about HB 269 is the unprecedented coalition backing it. Support spans industries and interests from major employers like J.E. Dunn Construction, CoxHealth, and the St. Luke's Health System to organizations like the Missouri Chamber of Commerce, faith-based groups, local governments, and child advocacy organizations. Nearly 30 organizations, including Aligned, testified in favor of the bill when it was first heard in January.
Despite this broad support and consistent House approval, the bill has yet to clear the Senate. With Missouri's childcare shortage costing the state's economy an estimated $1.35 billion annually, many are watching to see if the Senate will take action this year to address what has become a persistent and growing concern for families and businesses alike.
Education omnibus heads to Senate with near-unanimous House support
On Thursday, the Missouri House passed HB 607 (Lewis) with a vote of 144-4. Initially designed to ensure school districts with four-day weeks could qualify for the baseline salary grant, the bill expanded to include several key provisions. Notably, it now prohibits the use of the three-cueing model as a method for teaching reading, a practice often criticized for emphasizing guessing strategies over phonics-based instruction. The bill also extends the teacher externship program sunset to 2030, extends retirement flexibility for teachers to substitute without affecting their benefits, addresses grade-level equivalence, updates virtual school assessment requirements, and clarifies resident status for children of contracted staff. HB 607 now moves to the Senate.
For more details on Aligned Priority Bills, including other key education measures advancing this session, click here.
Read the full weekly legislative report.
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Budget and Revenue
This week, the Senate Truly Agreed and Finally Passed HB 14, the state's Supplemental spending bill to continue funding state operations through Fiscal Year 2025, which ends June 30. The nearly $2 billion spending bill includes funding for several state departments, including the Medicaid program MOHealthNet and the Department of Elementary and Secondary Education. Upon the approval of Governor Mike Kehoe, the bill will immediately go into effect.
Note: State Board of Education President Charlie Shields predicted the state would have "the mother of all supplementals" in May 2024.
The House Budget Committee was expected to take up the full FY26 budget for consideration this week, which includes more than $2 billion in changes proposed by Appropriations Subcommittees and the Committee Chairman, but a technical glitch with the operating software the state uses delayed the process and the Budget Committee will now consider changes the week after Spring Break, with the full House debating the budget the same week.
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Kansas Update
Aligned's Role in HB 2303 and the SLDS
As HB 2303 moved through the Kansas Legislature, we’ve heard questions about who Aligned is, our role in public policy, and why we are advocating for a Statewide Longitudinal Data System (SLDS). We wanted to take the time to clear up some misconceptions about our role as an organization.
Aligned is an education policy and advocacy organization, not a vendor, government agency, or implementer. Our goal was to ensure Kansas policymakers have access to data-driven insights to inform education and workforce policies. We do not stand to benefit from this bill financially or operationally—we simply believe Kansas should join the 42 other states that have already implemented an SLDS to improve decision-making.
Why We Support HB 2303
For years, Kansas has lacked a modern, secure system to connect education and workforce data, making it harder for policymakers, educators, and employers to align programs with real-world needs and receive sophisticated insights. HB 2303 would have changed that by creating a statewide, transparent data system to track long-term student outcomes, workforce readiness, and economic impact — all while ensuring strong privacy protections.
Aligned’s role has been to bring stakeholders together, provide research, and advocate for better data systems. That’s why we worked with legislators on both sides of the aisle and engaged the business community, which sees the value in data that helps students succeed in the workforce.
We want to be clear: If HB 2303 was enacted, Aligned would have had no role in its implementation. As written, the Legislative Coordinating Council and a new Division of Longitudinal Data would oversee the system — not us, not any private company.
Our priority is simple: better data, better decision-making, and a better education system for our students. We remain committed to ensuring that an SLDS bill moves forward next session, and we appreciate those who have engaged in this critical discussion.
Legislative Update: Advancements in Education Bills
As the Kansas legislative session enters its final month, several key education bills that Aligned supports have made notable progress:
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HB 2033: Passed by the Senate Education Committee after receiving House approval (89-32) in February. This bill expands access to nonprofit literacy programs by recognizing those accredited by the International Multisensory Structured Language Education Council has approved at-risk educational programs.
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SB 87: Passed as amended by the House Education Committee after Senate approval (24-16). This bill expands eligibility for the Tax Credit for Low-Income Students Scholarship Program—a private school choice policy—and increases the tax credit amount for contributions.
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HB 2185: Passed as amended by the Senate Education Committee after receiving overwhelming support in the House (112-6). The bill updates the Kansas National Guard Educational Assistance Act to include dependents of service members and expands funding for advanced degrees under the EMERGE program.
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SB 44: Passed by the House Education Committee after Senate approval (37-3). The bill expands Kansas Promise Scholarships to students attending private higher education institutions and raises the total scholarship cap to $15 million.
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HB 2294: Faces an uncertain future after being withdrawn from the House Committee on Commerce, Labor and Economic Development and referred to the Committee on Calendar and Printing. This comprehensive childcare reform bill, previously highlighted in our newsletter, remains in legislative limbo.
New Legislation Spotlight: HB 2402
A new bill, HB 2402, proposes establishing the Blue Ribbon Commission on Higher Education to study and set long-term goals for Kansas’ higher education system.
The commission would be tasked with producing reports to help align funding with workforce needs, assess institutional effectiveness, and guide future policy decisions.
State legislatures often create higher education commissions to address affordability, enrollment trends, economic impact, and degree-completion rates. A data-driven review can help states develop strategic policies that expand access, improve efficiency, and strengthen postsecondary outcomes.
Aligned continues to advocate for policies that expand educational opportunities, support workforce pathways, and keep students in Kansas. We’ll provide further updates on these bills as they move through the legislature.
Read the legislative report.
In other news
| | A vintage shot of Spring break central at the intersection of Las Olas and AIA (Beach Boulveard) and the famous Elbo Room bar, which has been in business since 1938. PHOTO CREDIT: Celebrate Retro. | | Spring break: A student-inspired tradition | | |
Spring break is a time-honored tradition, but did you know it all started with a college swim coach's idea — and students quickly turned it into a nationwide trend?
The concept dates back to the 1930s when Sam Ingram, a swim coach from Colgate University, took his team to Florida for early training. College students soon caught on, turning sunny getaways into an annual ritual. By the 1960s, spring break had exploded in popularity, thanks partly to the iconic film Where the Boys Are, filmed in Ft. Lauderdale, which cemented Florida’s beaches as the go-to destination.
Next week, the Missouri General Assembly will take its spring break version. While lawmakers may not be heading south, the break offers some respite before they return to Jefferson City to tackle tense budget negotiations and heavy legislative lifts.
Fun fact: The top five spring break destinations this year are Cancún, Miami Beach, South Padre Island, Las Vegas, and Panama City Beach.
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Upcoming Events
Edunomics: Master Education Finance in a Changing Landscape
Education finance is at the center of major policy decisions, influencing how resources reach schools and students. This program provides the expertise to navigate funding complexities and drive smart decision-making.
What You’ll Learn:
✔️ Key cost drivers in education
✔️ Funding allocation and accountability structures
✔️ The impact of ESSA and state policies
✔️ Practical strategies for financial leadership
What You’ll Gain:
✅ 3.0 CEUs, 36 CPEs, or 30 PD credits
✅ Practical insights from top experts
✅ A network of education finance professionals
📍 Kansas City | June 10-11
🔗 Register Now
Sponsorship opportunities are available—reach out to learn more!
Thank you to our sponsors:
🏛 Venue Sponsor – Ewing Marion Kauffman Foundation
🏆 Platinum Sponsor – Missouri Charter School Association
🥇 Gold Sponsors – U.S. Engineering & Holland 1916 Inc.
🥉 Bronze Sponsors – JE Dunn Construction, KIDaccount & BMG Advisors
Interested in sponsorship opportunities?
With federal policy debates reshaping education funding, now is the time to strengthen your understanding of the financial landscape.
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While Missouri gets a week off, the Kansas Legislature will remain in session as the push toward a sine die of April 12th.
Enjoy the weekend!
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About Aligned
Aligned is the only state-wide non-profit, nonpartisan business group working in Kansas and Missouri on educational issues impacting the full development of our children, from supporting high-quality early learning to solid secondary programs that provide rigorous academic programs and real-world learning opportunities.
Our vision is that our public education systems in Kansas and Missouri have the resources and flexibility to prepare students to pursue the future of their choice.
We are currently focused on education policies that will strengthen early childhood education, teacher recruitment and retention, and school finance reform.
Learn more about our work.
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