Trump’s 2026 Budget: Education Cuts, Title I Preserved, Pell Reduced

An Inside Look at the Fiscal Year 2026 Budget Proposal for U.S. Education

With the release of the Trump administration’s fiscal year 2026 budget proposal, significant changes loom over the U.S. Department of Education. The proposal outlines a 15% reduction in funding and suggests several alterations to key education programs. Here are the major highlights from this proposal.

The Plan to Phase Out the Education Department

In a move that reinforces President Trump’s aim to dismantle the Department of Education, the budget proposal echoes a previous executive order, stalled by a federal judge, that advocated for transferring education control back to the states. Despite the ongoing legal battles, the proposal still asks for $66.7 billion, indicating a gradual approach to the department’s closure. The proposal underscores an “agency that is responsibly winding down.”

Title I Funding Remains Steady

Amidst concerns from public school advocates, who fear a potential disruption of Title I funds as per the conservative agenda Project 2025, the budget maintains Title I funding levels at just over $18 billion, consistent with the last two years. These funds are crucial for districts serving high-poverty areas.

Consolidation and Cuts in K-12 Programs

The proposal suggests merging 18 smaller K-12 programs into a single grant, reducing funding from $6.5 billion to $2 billion. While this aims to provide districts with flexibility to allocate funds according to local needs, it also dissolves specific funding streams for programs supporting teacher training, literacy, and homeless students. Concerns have been raised that without earmarked funds, essential programs might be neglected in favor of other priorities.

Special Education Funding Adjustments

Although the budget appears to increase funding for the Individuals with Disabilities Education Act (IDEA) to $14.9 billion, this figure includes previously separate programs. Consequently, actual funding for special education remains effectively unchanged.

Changes in College Financial Aid

The proposal includes notable revisions to federal college aid, most significantly slashing the maximum Pell Grant from $7,400 to $5,700, a cut that could impact low-income students given the average cost of attending a public four-year university is over $22,000. Melanie Storey of the National Association of Student Financial Aid Administrators warns that these cuts could “result in considerable harm for students pursuing postsecondary education.” Additionally, the Federal Work-Study program faces an 80% reduction, shifting the responsibility of student wages to institutions.