Federal Programs
Weekly Brief
Curated intelligence for district federal program leads
Provided by EnchantED LLC
Grad PLUS Loan Program Ends July 1 — Major Financing Route for Teachers and School Psychologists Eliminated
Effective July 1, 2026, the Federal Direct Graduate PLUS Loan program is eliminated under the One Big Beautiful Bill Act (OBBBA). Graduate students who did not borrow a Grad PLUS loan before July 1, 2026, or who are starting a new program after that date, will not have access to the program. Those who have already borrowed in their current program before July 1, 2026, may continue borrowing Grad PLUS loans for up to three more academic years or until program completion, whichever comes first. For new graduate borrowers, only the Direct Unsubsidized Loan remains available, capped at $20,500 per year and $100,000 lifetime. The Grad PLUS program had allowed graduate students to borrow up to the full cost of attendance.
Indiana districts depend on graduate-degreed professionals — school psychologists, special education specialists, reading specialists, administrators, and licensed counselors — whose preparation programs often cost well beyond the $20,500 annual cap. The elimination of Grad PLUS will make some graduate programs financially inaccessible for prospective educators, tightening the pipeline for already-scarce specialties. Districts should brief HR departments and any staff currently in graduate programs on the grandfathering exception. For staff beginning new programs after July 1, districts may want to explore Title II-A sponsored professional development, employer tuition assistance, or partnerships with Indiana university programs that have reduced tuition to close the gap.
PSLF Repayment Landscape Overhauled July 1 — Indiana Teachers on SAVE or PAYE Must Act Before Transition Window Closes
The Repayment Assistance Plan (RAP), created by the OBBBA, launches July 1, 2026, as the sole new income-driven repayment option for federal student loan borrowers. The SAVE plan was vacated by court order in March 2026 and is being wound down; PAYE and Income-Contingent Repayment (ICR) plans accept no new enrollees after July 1, 2026, and are fully phased out by July 1, 2028. For borrowers pursuing Public Service Loan Forgiveness (PSLF), RAP counts as a qualifying repayment plan and the 120-payment, 10-year structure is unchanged. However, new repayment plan terms under RAP range from 10 to 25 years depending on balance — and only 10-year standard repayment plans qualify for PSLF. Borrowers automatically placed on longer RAP terms will not earn PSLF credit unless they proactively elect the standard 10-year plan. Additionally, a new final rule effective July 1, 2026, gives the Secretary of Education authority to disqualify employers found to have a “substantial illegal purpose” from PSLF eligibility — adding uncertainty to nonprofit employer qualifications.
Indiana teachers, administrators, and support staff pursuing PSLF represent one of the district’s most effective retention tools. Any staff member currently on SAVE should be directed to studentaid.gov immediately — they will receive 90-day servicer notices beginning July 1 to select a new plan, but proactive action is better. Staff on PAYE or ICR must make a plan change before July 1, 2028, or lose qualifying payment progress. Most critically: staff automatically placed on RAP plans longer than 10 years will not earn PSLF credit. Communicate this urgency to staff now, and consider inviting a student loan specialist to a professional development session this summer. This is a retention risk that has nothing to do with salaries and everything to do with information access.
Federal “Condition of Education” Report Released May 29 — Dramatically Slimmed Down to 17 of 702 Indicators
The 2026 Condition of Education, the congressionally mandated annual statistical compendium from the National Center for Education Statistics, was released May 29 — but covers only 17 of the 702 indicators NCES historically tracks. Key findings from the pared-down report: U.S. states spent an average of $20,000 per pupil in 2024 (the most recently available finance data). The report’s scope is drastically reduced from prior years, reflecting the administration’s staff cuts and funding constraints at IES. The Data Quality Campaign praised the report’s timeliness but noted that fewer indicators “could make it less useful for communities who may lack analytical capacity,” such as school districts. NAEP data and graduation data are among those retained; many chronic absenteeism, disaggregated student outcome, and teacher workforce indicators were absent from this edition.
The Condition of Education is a key reference document for consolidated application planning, ESSA compliance narratives, and grant application needs assessments. A report covering only 17 of 702 indicators means the national data benchmarks many districts rely on for per-pupil comparisons, demographic trend analysis, and equity documentation may not be available or may be outdated. Indiana districts should rely more heavily on IDOE data portals, the Indiana Education Employment Relations Board, and state-produced reports for FY2026 and FY2027 planning data. Document which NCES indicators your district used in recent grants or consolidated plans — if those indicators are now missing, identify Indiana-specific replacements before next consolidated application cycle.
Indiana Next Gen SIG Cohort 6 Application Window Opening — CSI and TSI Schools Should Prepare Now
IDOE’s Office of School Support and Transformation has indicated the 2025–2026 Next Generation School Improvement Grant (Next Gen SIG) application window is scheduled to open in Spring 2026 with finalist interviews in Summer and awards announced in August/September 2026. The Next Gen SIG is a competitive federal grant funded through Title I school improvement funds, offering up to $300,000 in planning grant funds for the first year and up to $3 million distributed over three implementation years. Eligibility is limited to schools currently identified as Comprehensive Support and Improvement (CSI) or Targeted Support and Improvement (TSI) under Indiana’s ESSA Plan.
This is the most significant school improvement grant opportunity in Indiana and applications are competitive — IDOE received 60 applications for Cohort 5. CSI and TSI schools that have not yet applied should confirm their eligibility using the IDOE list, identify an intervention model and priority, and begin scoping an expert transformation partner now before the application window formally opens. Given that federal Comprehensive Centers technical assistance is uncertain due to the OMB impoundment of Comprehensive Centers Program funding, the Next Gen SIG’s embedded planning funds and partner support model are more important than ever for Indiana’s highest-need schools. Contact IDOE’s Office of School Support and Transformation at [email protected] for current application materials.
ED Releases McKinney-Vento Data Summary for School Years 2021–22 Through 2023–24 — National Homelessness Counts Rising
The U.S. Department of Education released its March 2026 McKinney-Vento Education for Homeless Children and Youth Program data summary covering school years 2021–22 through 2023–24. The report tracks the number of students experiencing homelessness, primary nighttime residence, and demographic subgroups. National data shows the count of students experiencing homelessness has been rising across this three-year window, reflecting continued housing instability post-pandemic. Students in doubled-up housing situations (living with other families due to economic hardship) represent the largest subgroup nationally. The data also show persistent academic outcome gaps between students experiencing homelessness and their housed peers, particularly in reading and graduation rates.
This data is directly relevant to three compliance areas for Indiana federal program coordinators: (1) Title I, Part A set-aside requirements for homeless students — districts must use a portion of their Title I allocation to serve homeless students even if those students are not in a Title I school; (2) McKinney-Vento liaison training and outreach documentation — rising national counts signal Indiana districts should actively audit whether their local identification processes are capturing all eligible students, especially those in doubled-up housing who are often under-identified; and (3) grant needs assessments — this ED report provides the national context benchmark for McKinney-Vento competitive grant applications and consolidated application narratives. Download and archive this report now before federal data portals are further reduced.
SEED FY2026 Grant Closes June 1 — Final Submission Week for Indiana Applicants via GrantSolutions
The Supporting Effective Educator Development (SEED) FY2026 grant competition closes at 11:59 p.m. ET on Monday, June 1, 2026. Awards totaling approximately $90 million will be made to 25–30 entities developing, expanding, or evaluating practices in educator development. Applications are submitted through DOL’s GrantSolutions platform (opportunity number DOL-OESE-33914), not Grants.gov. Indiana applicants should be in final review this week. The competition includes four absolute priorities and three competitive preference priorities; the final version of the Application Notice and Instructions (ANI) governs all submission requirements. The ED-DOL partnership administers this competition, with awards issued by DOL on behalf of ED.
This is the last week to submit. Confirm your GrantSolutions account is active, your authorized representative has upload and submit permissions, and your SAM.gov registration is current. If your district has experienced any GrantSolutions technical issues this week, document them and contact the GrantSolutions help desk immediately — technical errors do not automatically extend deadlines, but documented platform failures may support a waiver request if submitted within hours of the deadline. Do not wait until Monday evening to attempt submission.
Workforce Pell Grant Launches July 1 — New Federal Aid for Short-Term CTE Programs Creates K–12 Pathway Planning Opportunity
Beginning July 1, 2026, the Workforce Pell Grant Program — created by the OBBBA — will make federal Pell Grant funds available to students enrolled in short-term credential programs as brief as eight weeks. Eligible programs include Emergency Medical Technician certifications, automotive mechanics, construction trades, and other high-demand skilled workforce fields. Students in these programs, who were previously ineligible for Pell Grants, will now have access to federal aid. The program is administered through the existing Pell Grant framework and is designed to expand career and technical education access at the postsecondary level.
The Workforce Pell Grant is a postsecondary program, but its launch is directly relevant to Indiana districts building or expanding career pathways. Districts using Title IV-A SSAE funds for CTE-aligned programming or developing dual enrollment partnerships should be aware that students who complete a K–12 CTE pathway may now have enhanced financial access to credential programs immediately after graduation. This strengthens the case for robust CTE pathway development and can be a compelling element of Title IV-A spending plan narratives and competitive grant applications under the new Career Pathways Exploration (CPE) program. Update your district’s career counseling resources to reflect the new Workforce Pell option for students considering short-term credential pathways.
Final submission week. Do not wait until Monday to submit. Verify GrantSolutions account access, authorized representative permissions, and SAM.gov active status today. Applications submitted through Grants.gov will not be accepted — GrantSolutions only. If platform issues arise, document immediately and contact the GrantSolutions help desk.
Applications should be complete and in final internal approval. Given the Grad PLUS elimination and its impact on educator pipeline development, narratives addressing teacher recruitment, retention, and compensation reform are highly timely and likely to resonate with reviewers this cycle. Confirm GrantSolutions AOR access before June 7 to allow time to resolve any issues.
Application window is opening this spring — confirm your school’s CSI/TSI status using the current IDOE eligible school list, and begin identifying your intervention model and transformation partner now. IDOE received 60 applications for Cohort 5, so competition is real. Funded with Title I school improvement dollars — not ESSER, not a one-time fund. This is a sustainable, multi-year opportunity.
Active grantees: June 1 midyear report is this Monday — file today if not already done. Non-grantees: given the Grad PLUS elimination’s impact on school psychology graduate pipelines, the timing of the forthcoming SBMH competition is especially urgent. Districts building toward an application should note that school psychologist recruitment will face new structural headwinds — build that context into your needs documentation now.
The Educator Pipeline Squeeze: How July 1 Loan Changes Should Reshape Your Workforce Planning
Three federal changes taking effect July 1, 2026 — the elimination of Grad PLUS, the launch of RAP, and the restructuring of PSLF repayment pathways — together represent the most significant shift in educator workforce financing in decades. Indiana districts that have not yet briefed HR departments, building principals, and relevant staff should do so before the school year ends.
What districts should communicate to staff before June 30: Any staff member pursuing a graduate degree — including education administration, special education, reading specialist, school counseling, or school psychology programs — should be told immediately whether their current borrowing status qualifies for the Grad PLUS grandfathering exception. Staff who began their program and borrowed before July 1 and remain at the same institution in the same program can continue under prior terms for up to three more years. Staff considering switching programs, taking a leave, or transferring institutions after July 1 may lose that protection — they should consult their financial aid office before making any changes.
What districts should plan for in hiring: Beginning in fall 2026, the applicant pool for school psychologists, licensed counselors, and doctoral-level administrators will face new financial headwinds. Programs that cost more than $100,000 in total — which includes most school psychology doctoral programs and many Ed.D. programs — will either require students to bridge the gap with private loans (at higher interest rates with no PSLF eligibility) or reduce program costs. The districts best positioned for the future are those already developing internal grow-your-own pipelines, tuition assistance benefits, and partnerships with Indiana universities that are proactively lowering graduate program costs in response to OBBBA.
The SEED grant closes June 1 and TSL closes June 9 — both are the top near-term action items for Indiana districts with competitive applications in progress. After June 1, watch for any court action or congressional hearing forcing OMB to release the frozen $2 billion in congressionally approved education grants before the September 30 expiration cliff. Indiana districts should also watch for the formal opening of the Next Gen SIG Cohort 6 application window from IDOE, and monitor Grants.gov for the first posting of the new School-Based Mental Health Services competition, which is overdue given the $164 million appropriated for FY2026 and is expected any week.
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