Trump Signs $79 Billion Education Funding Bill for FY 2026, Offers Clarity for Schools, Grants and Federal Oversight

President Donald Trump has enacted a $79 billion federal education appropriations bill for the fiscal year 2026, ending months of budget uncertainty for schools, universities and state education departments. The legislation, signed into law on Tuesday, authorises funding for the United States Department of Education through September 30, 2026.

The measure ensures modest increases in discretionary education funding compared with the previous year. It provides roughly $217 million more than the Fiscal Year 2025 allocation and maintains support for core federal programmes, including key formula grants that support K-12 schools and higher education institutions.

While the final figures avoid dramatic hikes, lawmakers and education officials welcomed the passage as a stabilising moment after prolonged negotiations that threatened disruptions to grant disbursements and federal operations. Under the new law, schools can expect funding for Title I grants for low-income students, the Individuals with Disabilities Education Act and other major programmes at levels close to those in the current fiscal year.

The appropriations package also preserves the maximum Pell Grant award at $7,395 for the 2026-27 academic year, rejecting earlier proposals to cut the benefit. Advocates had warned that reductions could have strained access for financially vulnerable students.

Congress attached provisions to improve accountability within the Department of Education, including requirements for regular reporting to lawmakers on interagency agreements and the administration of federal grants. These measures are intended to address congressional oversight concerns that emerged during funding talks.

The funding agreement comes against a backdrop of broader budget debates in Washington over the scope of federal involvement in education. Earlier proposals from the Trump administration had called for deeper cuts to certain programmes and shifts in departmental responsibilities. The final law does not prohibit these broader policy approaches, but it reinforces congressional authority over discretionary spending decisions.

Officials expect the funding to flow to school districts and higher education institutions in the lead-up to the next academic year. Formula funds typically begin to reach states in early summer, offering certainty that major initiatives will proceed uninterrupted.