Fiscal Year 2026 in Review: Investing in Career Readiness, Improving Outcomes for Students, and Returning Education to the States

With the close of Fiscal Year (FY) 2026, the U.S. Department of Education (ED) continued to deliver on its promise both to supercharge evidence-based literacy and the fundamentals of learning rather than pushing ideological indoctrination, and to break up the federal education bureaucracy and place more funding directly into the hands of local communities.

ED's interagency agreements allowed over $3.4 billion of formula and competitive grants to flow through the partner agencies to states, students, families, and educators. And by leveraging the expertise and networks of partner agencies, ED significantly expanded the pool of applicants for federal grant competitions.

"This is truly proof of concept that our interagency partnerships are delivering for the American people by streamlining services, breaking up the federal education bureaucracy, better stewarding taxpayer resources, and demonstrating these programs are better situated in other federal agencies," said U.S. Secretary of Education Linda McMahon. "As we return education to the states, we are focusing our resources on the fundamentals - investing in literacy, expanding career training and apprenticeships, and delivering stronger support to students with disabilities. As a prime example, nearly 80 percent of new elementary and secondary education grants went directly to State Education Agencies or state-endorsed projects, ensuring federal dollars closely reflect local needs. When we zero in on these foundational needs and let states lead the way, students are better served."

Key FY26 Milestones:

Expanding Career and Adult Education: The Office of Career, Technical, and Adult Education (OCTAE) delivered over 7,850 payments totaling $2 billion through DOL for career and technical education, adult literacy, and workforce preparation programs. These investments are building clear pathways to high-paying, high-demand jobs.

Investing in Students and Community Innovation: The Office of Elementary and Secondary Education (OESE) routed nearly $500 million through DOL and HHS to strengthen literacy, expand charter school access, bolster American History and Civics education, and modernize state academic assessments.

In addition to the Department's literacy investments, highlights include:

• Career Pathways Exploration: $38 million to help states integrate career exploration into their career pathways and workforce readiness programs.

• Charter Schools Program - State Entities: $78 million to help open new charter schools and replicate and expand high-quality charter schools.

• American History and Civics - National Activities: $19.8 million to promote American history, civics and government, and geography instruction.

Improving Graduation Outcomes and Building a Stronger Workforce: The Office of Postsecondary Education (OPE) awarded 1,000 new grants totaling nearly $1 billion through DOL and HHS. For the first time, these awards prioritized Registered Apprenticeships, responsible Super Intelligence (SI), and short-term, employment-focused programs that improve earnings and help Americans build in-demand skills.

Highlights include:

• Strengthening Institutions (SIP): $365 million to help institutions become self-sufficient and expand their capacity to serve low-income students by providing funds to improve and strengthen the institution's academic quality, institutional management, and fiscal stability.

• Rural Postsecondary and Economic Development (RPED): $44.5 million to help improve postsecondary enrollment, persistence, and completion among rural students. Its core strategy is to develop career pathways aligned with high-skill, high-wage, and in-demand industry sectors and occupations in rural regions.

Bolstering Support for Students with Disabilities: ED's Office of Special Education and Rehabilitative Services (OSERS) directly awarded investments to support students with disabilities, including a record $144 million to states in IDEA funding to serve infants, toddlers, children, and youth with disabilities. Additionally, for the first time, states can use IDEA Part C early intervention funds to connect expectant parents of infants with disabilities to information and referrals before their child is born. ED and HHS continue to deepen their partnership, collaborating on best practices to support families and ensuring a continuum of services.

Supporting Child Care Resources: ED's partnership with HHS leveraged HHS' existing relationships with childcare providers, community organizations, and early childhood networks to reach new applicants, enhance the quality of technical assistance, and better connect federal support to low-income student parents and their children. As a result, the Child Care Access Means Parents in School program (CCAMPIS), the federal program that supports on-campus and community childcare for parents pursuing an education, received almost 300 applications, nearly double the 161 applications received in the last competition of the program.

Modernizing the Federal Student Aid System: In partnership with the U.S. Department of the Treasury, ED continues to streamline critical resources and help borrowers return to repayment. Most recently, ED and Treasury launched the new Defaulted Loans Support Center, a one-stop shop for borrowers to rehabilitation and consolidate their loans.