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On October 2, the U.S. Department of Treasury issued temporary and proposed regulations on the Federal Scholarship Tax Credit (FSTC) program that clarify the roles of states and SGOs, establish initial operating and reporting requirements, and confirm several implementation options relevant to public school districts.

On September 24, the White House sent Congress a rescission package that would cut $810 million of federal funding that was appropriated by Congress for Fiscal Year 2026 but has not yet spent.

The President signed the Supporting Early-Childhood Educators’ Deductions (SEED) Act, allowing early childhood and pre-K educators to claim the same $350 federal tax deduction for out-of-pocket classroom expenses as K-12 teachers. This deduction will help offset the hundreds of dollars educators spend out of their own pockets each year on classroom supplies, books, and learning materials.

In September, the U.S. Government Accountability Office released a report documenting the real-world consequences of deferred maintenance and aging school facilities, finding that nearly 20 percent of school districts were forced to cancel school during the 2024-25 school year due to facility problems.

Last week, the U.S. Department of Agriculture (USDA) and Department of Health and Human Services (HHS) announced the Harvest to Hallways Initiative to provide new investments and technical assistance for school meal programs. The announcement is the latest step in a broader federal effort to change federal nutrition programs. USDA is also expected to release new school meal regulations in the coming months.

The U.S. Department of Education (ED) issued a notice of proposed rulemaking on August 24th that would make it easier for the agency to terminate or discontinue discretionary grants and further cement administration policies in regulations.

U.S. Department of Education published a new guidance document for superintendents that lays out the Department’s interpretation of the legal standards governing the consideration of race in school discipline and how districts can ensure compliance with federal law.

Stay informed on the latest federal education policy and advocacy issues. Join AESA’s Federal Advocacy Update Webinar on August 19, 2026.