Education at Risk: Proposed Cuts and Policy Shifts Roil Schools, Colleges, and Families

Welcome to the Education Update podcast, where we break down the latest news shaping learning across America. The biggest headline this week? The Trump administration has proposed a sweeping 15.3% cut to the Department of Education’s budget for fiscal year 2026. That would mark one of the largest single-year reductions in recent memory and sends shockwaves through schools, colleges, and families nationwide. Let’s dive into what this means. First, the Administration argues these cuts are part of a broader push to empower parents, states, and local communities, a vision detailed in a recent executive order that also directs the Secretary of Education to “take all necessary steps to facilitate the closure of the Department of Education”—though fully abolishing the department would require Congressional approval, which currently isn’t there. The immediate impacts, however, could be dramatic. Funding reductions would likely hit programs supporting low-income students, federal student loans, and special education hardest. Experts warn this could disrupt services for millions of children and limit college access for many families. The American Speech-Language-Hearing Association has voiced strong opposition, emphasizing risks to students’ achievement and essential school-based services. In higher education, the Department just reminded colleges of their obligations to help struggling borrowers. Institutions now must step up outreach to former students at risk of default, ahead of a new June 30, 2025 deadline. The federal government is tracking nonrepayment rates and planning to publish those statistics soon. In parallel, after a pause since March 2020, the Department is resuming federal student loan collections, with nearly 200,000 borrowers already notified that their benefits could be offset starting in June. By late summer, over 5 million borrowers may face wage garnishment if they remain in default. Accountability is ramping up elsewhere, too. The Department launched new Title VI investigations into discrimination and is reviewing major universities’ compliance with rules on foreign funding disclosures and grant reporting. Meanwhile, changes in federal K-12 policy are underway, including a renewed focus on “parent choice” and a push to redirect federal funds from so-called “radical indoctrination” toward more “patriotic education”—though critics argue this could jeopardize support for students with disabilities and those in high-poverty communities. So, what’s next? Congress will debate the Department’s budget, and public hearings are expected before any cuts become law. Schools, colleges, and families should keep an eye out for updates on program guidelines and application deadlines, especially for federal student aid and grant programs. If you want to share your perspective, many proposals are open for public comment on the Department of Education’s website. For resources on student loans, financial aid codes, or regulatory changes, visit ed. This content was created in partnership and with the help of Artificial Intelligence AI.