In late March, the President issued an executive order to eliminate the U.S. Department of Education (DOE). What impact will this action have on education in the states is one of many questions raised by lawmakers, school professionals, and parents nationwide. Potential closure of the DOE is in the early stages, and little information is available regarding funding received by states.
While DOE oversees significant funding granted to the states, closure of the department and potential loss of federal funding may be separate issues. Federal grant programs received by Utah and other states are tied to federal legislation; examples include Individuals with Disabilities Education Act (IDEA) in public education or student financial aid (Pell Grants) in higher education. Elimination of the DOE does not necessarily mean the federal legislation and associated funding will be terminated. Preliminary information suggests the management of funds may be assigned to other federal agencies or provided through block-grant funding to states.
When it comes to Utah’s public education budget, the federal government plays a relatively minor role in providing funding to the state, but a significant role in funding certain programs. The Legislature appropriated a total of $598.7 million in estimated federal funding in public education for FY 2026, (approximately 7.0% of the total appropriation). The percentage impact increases significantly when looking at specific programs within the budget.
Federal funds are focused in four major areas in public education, Special Education, Title Programs (Economically Disadvantaged), Career and Technical Education, and Child Nutrition Programs. The nutrition programs are overseen by the U.S. Department of Agriculture (DOA), so there may be less risk associated with that funding. The list below provides contextual information on the four major federal grant programs:
- Special Education – Utah receives approximately $142.6 million in federal IDEA funding. On top of this amount, the Legislature has appropriated approximately $600.0 million ongoing in state funds to support special education programs. This makes federal funds approximately 19% of total special education funding. State statute governing special education in Utah are aligned to the federal IDEA laws and the federal process is used to determine eligibility. Changes in how the federal laws are implemented and monitored may impact delivery of special education services. Block granting these funds to the state may allow for greater state flexibility in implementation.
- Title Programs – $62.7 million in federal funding received through various Title Programs (i.e., Title I, Title II) the primary focus of the federal title programs is to provide funding for students experiencing economic disadvantage, migration, homelessness, etc. The Legislature has appropriated $130.5 million ongoing in state funds to support the Students At-Risk WPU Add-on program which distributes state funding to LEAs based on student economic disadvantage and English language learner status. Federal funds comprise approximately 32% of total funding dedicated for “At-Risk” students. Utah’s law for the Students At-Risk WPU Add-on is independent of federal funding and laws governing the Title Programs. While changes at the federal level may impact the use of Title funding, the use of the state appropriation is governed by state statute and local implementation.
- Career & Technical Education – $16.8 million in federal funding to support public and higher education CTE programs, often called the Perkins grant. The Legislature has appropriated $134.4 million to support CTE programs in the public schools and over $185.0 million to support technical education through higher education institutions. In this case, federal funding is just under 5% of total CTE funding (both PED and HED). Career and Technical Education programs in the public schools and higher education institutions are governed by state statutes and federal funds assist in the delivery of technical education.
- Child Nutrition – $354.4 million in federal funding to support school breakfast, lunch, milk, etc. programs. The Legislature has appropriated $50.1 million from the liquor tax to support the program. In this case, the federal government provides approximately 86% of the funding. Again, the DOA oversees these funds. While not at risk with the closing of the Department of Education, other reforms that may impact the DOA may also impact child nutrition programs in Utah. For example, there have been reports from various news sources about reduction in funding for schools to purchase local agricultural products for use in school meal programs.
These federal education grant programs have been renewed for the coming fiscal year (prior to the last continuing resolution), so the risk of immediate financial impact appears low. Fully eliminating the agency and federal grant programs (including governing laws) would require an act of Congress. To date, Congress has not commented on this issue or what a potential timeline for future action.
There are approximately $20.0 million in other minor federal grants received by the State Board of Education, these are mostly focused on student assessment, accountability, and teaching/learning programs. A listing of all federal grants received by the State Board of Education can be found here: State Board of Education Federal Grants.
There are a lot of unknowns as the potential closure of the Department moves forward. Hopefully, this summary is helpful in providing context to the issue and in answering constituent questions. For more information on federal funds, read the report by the Kem C. Gardner Policy Institute on the nexus of Utah and Federal Government: Utah/Federal Government Nexus.