Changes to Education Funding in the House’s “Big Beautiful” Budget Bill
Major Cuts Proposed for Both Higher Ed and K-12
The House’s recently passed budget—approved by just a one-vote margin last week—would bring sweeping changes for students, families, schools, colleges, and universities. Many of these cuts and program eliminations have flown under the media radar, but they carry serious repercussions for the entire education community.
While the Senate is likely (if not certain) to make changes, here’s a quick overview of what’s in the House version. If you see a valued program at risk, there’s a limited window to contact your U.S. Senators before the next round of negotiations.
Fiscal Changes in the House Budget Bill
Student Financial Aid & FAFSA
Pell Grants: Maintained at the current maximum of $7,395—$750 less than the President's request.
Federal Work-Study (FWS): Funding slashed by 50%, reducing opportunities for students who rely on campus jobs.
Federal Supplemental Educational Opportunity Grants (FSEOG): Cut by 50%, directly impacting low-income students.
Federal Student Aid (FSA) Administration: 26% cut, which may slow or disrupt the processing of financial aid applications.
Tax Changes:
Repeals tax exemptions for scholarships and fellowships, making them taxable as earned income.
Eliminates the American Opportunity Tax Credit and the Lifetime Learning Credit, removing important tax benefits for college expenses.
Ends the student loan interest deduction, increasing the financial burden on borrowers.
Loan Repayment Reforms:
Replaces current income-driven repayment plans with simplified (but potentially costlier) options.
Caps graduate student and parent borrowing, which could lower overall debt but also limit access to advanced degrees.
Imposes “risk sharing” measures on colleges, pushing institutions to take more responsibility for loan performance and outcomes.
Higher Education Program Cuts and Increases
Eliminated Programs:
$70 million Teacher Quality Partnerships program.
Child Care Access Means Parents in School program, critical for students with children to be able to upgrade education and skills.
Hawkins Centers of Excellence, supporting teacher preparation at Minority-Serving Institutions.
Increased Funding:
$18 million boost for Historically Black Colleges and Universities (HBCUs), fulfilling a presidential campaign promise.
K–12 Education Impacts
💸 Major Funding Reductions
Title I Grants: 25% cut ($4.7 billion), potentially eliminating some 72,000 teaching positions in under-resourced districts.
Title II-A (Supporting Effective Instruction State Grants): Eliminated ($2.2 billion).
Title III (English Language Acquisition): Eliminated ($890 million).
Other Programs Whose Funding is Fully Eliminated:
State Assessments
Promise Neighborhoods
American History and Civics National Activities
Teacher and School Leader Incentive Grants
Supporting Effective Educator Development (SEED)
Arts in Education
Javits Gifted and Talented Grant Program
Afterschool and Summer Programs
$4.7 billion cut to Title I grants that help fund afterschool and summer learning, particularly in underserved communities.
Elimination of funding for Social and Emotional Learning (SEL) grants under the Education Innovation and Research program.
Civil Rights and Equity Concerns
Prohibits the use of federal funds to enforce Title IX protections related to LGBTQ+ students and employees in K-12 schools.
What You Can Do
These proposed changes mark a major shift in federal education policy, with deep cuts across both K-12 and higher education. The potential impact on students, educators, and institutions is substantial. Much now depends on the Senate and the upcoming negotiations, including the likely House-Senate Conference Committee.
If you or your students stand to lose vital support under this budget, now is the time to act. Reach out to your U.S. Senators and share how these proposed cuts would impact your students, families, or institution. Whether you’re an IEC, parent, educator, counselor, or advocate, your voice matters in shaping the final outcome. The window for influence, however is short — as the Senate takes up the budget and heads toward conference negotiations, direct outreach can help protect essential programs and ensure the nation’s education priorities reflect the needs of all learners.