Policy & Funding
State, national, and regulatory shifts affecting funding, accountability, AI guidance, compliance, and governance.
Treasury, IRS propose ending tax-exempt status for discriminatory private schools
The proposal would cover admissions, scholarships, athletics, educational programs, and other school policies. Comments are due Nov. 3, 2026, and any final rule would apply to taxable years beginning after May 31, 2027.
DOJ sues Kansas City, Kansas school district over parent notice and records
The case asks a judge to decide whether FERPA and PPRA can reach guidance that keeps some student gender-support requests confidential from parents. Other districts now have a live court fight to watch as they review support plans, forms, and staff training.
Arizona, Nevada, South Carolina get Ed-Flex waiver authority
The Education Department’s new approvals let those states decide some district waiver requests locally for covered federal programs, potentially speeding up Title I and Title IV-A decisions while leaving civil rights, IDEA, and core accountability rules untouched.
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Texas posts preliminary 2026 A-F school ratings as districts face next steps
Most districts and campuses held steady or improved, but the Aug. 14 release now sets off appeals, turnaround planning, and new public scrutiny before final ratings in December.
Illinois school aid rose, but fewer districts meet adequacy targets
Illinois’ FY2027 Evidence-Based Funding distributions added $350 million, yet the statewide gap to 90 percent adequacy widened as cost updates, poverty data, and replacement-tax revenue shifted.
California and Washington face new federal pressure on parent access to records
After recent court rulings, the U.S. Department of Education asked both states to explain what policy changes districts should make on student records, privacy, and parent access before the school year begins.
Senate committee backs bill to block four Education Department transfers
The 13-9 vote targets offices tied to special education, K-12 grants, higher-ed programs, and tribal education while leaving other transfers untouched.
Bethel and Denver face new federal parent-rights probes
The July 28 investigations do not establish violations, but they put parent notice, opt-out records, access to materials, and Denver’s Title IX response under federal review.
Illinois Requires School Phone Policies by 2027-28
A new state law gives Illinois districts and charters a deadline to adopt wireless-device rules, with required exceptions, discipline limits, and local choices on storage and access.
Richmond voters will weigh a 1% sales tax for school construction
City Council unanimously placed a November 2026 referendum on the ballot, giving Richmond an early test of Virginia’s new local option for school capital funding.
Education Department escalates FERPA cases against Anne Arundel, Ann Arbor
Federal officials said Anne Arundel could face Justice Department enforcement and possible funding consequences, while Ann Arbor has until Aug. 10 to explain its records and parent-disclosure practices.
South Dakota gets federal OK to pool some education funds, ease Title I carryover
Two federal approvals let South Dakota consolidate more than $19 million in selected state-level funds through 2029 and give it broader authority to approve district Title I carryover waivers.
Education Department finalizes Title VI rollback, rescinds CTE guidelines
The two final rules shift federal civil-rights enforcement toward intentional discrimination, with immediate implications for complaint handling, staff training, and policy reviews in districts, colleges, and career and technical education programs.
Midland ISD sues Texas over school finance and recapture
The district argues that state-controlled tax rates and recapture leave trustees without meaningful control over local revenue, setting up a constitutional test with statewide budget implications.
Michigan signs FY27 school budget and new reading training rules
The package sends $502 million to literacy supports, raises per-pupil funding to $10,300, keeps free school meals, and phases in Science of Reading training for K-5 reading educators and teacher-prep faculty.
House panel backs bills to move Education Department work to Treasury and Labor
The House Education and Workforce Committee approved a 10-bill package that would shift student aid to Treasury and move major K-12 and higher education programs to Labor, with other functions going to HHS, State, and Interior. The measures are not law, but they offer districts and campuses their clearest map yet of how a federal breakup plan could reshape grants, reporting, and compliance.
Education Dept. launches K-12 sexual-misconduct initiative, opens 20 probes
The Office for Civil Rights said the investigations stem from 2023-24 civil-rights data and will examine reporting systems, response timelines, and whether districts move accused employees instead of fully investigating.
Graduate loan caps are now final, and campus pricing models will feel the shock first
The final April 30, 2026 federal grad-loan rule will force colleges to revisit pricing, aid counseling, and enrollment strategy.