Federal Programs
Weekly Brief
Curated intelligence for district federal program leads
Provided by EnchantED LLC
Title I and Formula Funds Confirmed to Flow Through Existing G5 System This Summer
On April 14, the U.S. Department of Education confirmed it is delaying plans to route FY26 formula funding through a new Department of Labor grant portal. Instead, Title I, REAP, and other formula funds will be distributed through the existing G5 platform, with the July 1 allocation expected to proceed on schedule.
No action required for summer drawdowns — districts should continue using G5 as normal. This also means no new system registrations or access issues heading into the 2026–27 school year. Monitor IDOE communications for any state-level relay of this guidance.
FY2027 Budget Proposes “MEGA Grant” to Replace 17 Programs — Including Title II, Title IV, and McKinney-Vento
The White House released its FY2027 budget proposal on April 3, calling for a new “Make Education Great Again (MEGA) Grant” that would consolidate 17 existing K–12 programs into a single $2 billion state formula grant — a reduction of more than two-thirds from current combined funding of approximately $6.5 billion. Programs proposed for consolidation include Title II-A (educator professional development), Title IV-A (SSAE), Title IV-B (21st Century Community Learning Centers), McKinney-Vento homeless education funding, and REAP.
This is a budget proposal — Congress rejected a similar consolidation plan last year, and FY26 enacted funding held programs flat. However, districts dependent on Title II or Title IV dollars for staffing or programming should begin scenario planning. Title III (English Language Acquisition) is also proposed for elimination as a standalone program.
FY2027 Budget Eliminates Title III and Maintains Title I at Flat Funding
The FY2027 request proposes eliminating the $890 million Title III English Language Acquisition grant program and the $190 million Migrant Education (Title I-C) program entirely. Title I, Part A is proposed flat at approximately $18.42 billion — level with FY2026.
Indiana districts serving English learners should not reduce Title III-dependent services now, but program coordinators should note the sustained uncertainty around this funding stream. IDOE has submitted a flexibility waiver that — if approved — would consolidate Title funds into a block-grant-like structure, which could partially buffer the impact if federal changes occur in FY28.
School Mental Health Grants Funded Through June 1; Midyear Reports Are a Hard Compliance Gate
Most recipients of the School-Based Mental Health Services (SBMH) and Mental Health Service Professional Demonstration grants have had their awards extended through June 1, 2026, following court orders blocking the administration’s earlier termination notices. The Department issued the extensions “under protest” while appealing ongoing litigation. Grantees may receive additional funding only after submitting midyear performance and budget reports due June 1.
Any Indiana district or consortium holding an active SBMH or MHSPD grant must submit its midyear performance and budget report by June 1 to remain eligible for continuation funding. Begin preparing that documentation now. Non-grantee districts should follow litigation outcomes closely before planning multi-year mental health hires tied to anticipated new grant cycles.
ED Finalizes AI Literacy and Workforce Readiness as New Competitive Grant Priorities
Federal Register notices published April 13 confirm the Department of Education has finalized two new competitive grant priority areas: career and workforce readiness with an emphasis on registered apprenticeships, skilled trades, and dual enrollment; and AI literacy integration across K–12 instruction. These priorities will govern upcoming competitive discretionary grant competitions.
Districts pursuing competitive federal grants in FY2026 should align application narratives to these priority areas. For Title IV-A spending plans, connecting technology expenditures to AI literacy readiness is increasingly defensible as an evidence-based strategy.
Teacher and School Leader (TSL) Incentive Program Deadline Corrected to June 9
A Federal Register correction notice published April 16 updates the TSL FY2026 competition deadline from June 8 to June 9, 2026. The notice also corrects eligible applicant language. LEAs, consortia of LEAs, and SEAs are eligible; charter schools that function as LEAs may also apply.
If your district is preparing a TSL application, update your internal timeline to reflect the corrected June 9 deadline and re-read the updated eligible applicant language in the Federal Register before finalizing your submission.
Indiana’s IDEA Part B Application Open for Public Comment Through April 29
IDOE has posted Indiana’s FFY2026 IDEA Part B application for a required public comment period running March 20 through May 29, 2026. Written comments are accepted until April 29, 2026. Upon OSEP approval, the award period runs July 1, 2026 through September 30, 2028.
LEAs should review the application and budget to understand how Indiana intends to use Part B funds and flag any areas of concern through the public comment process before April 29. Continued Part B formula allocations to Indiana are expected upon OSEP approval.
If your district has a teacher compensation reform or career ladder initiative underway, this is a high-fit competition. Begin gathering performance data and community partnership letters now.
No district action required to receive formula funds, but special education directors should review the posted application and submit comments through IDOE’s portal before April 29 if warranted.
New awards under current ED priorities focus on school psychologists, not counselors or social workers. Begin documenting student mental health need data and psychologist-to-student ratios now to build a competitive narrative.
All Indiana grant applications now route through the eCivis Grants Portal. Ensure your district’s eCivis roles (grant writer, fiscal approver, superintendent sign-off) are properly assigned before any deadline arrives.
Scenario Planning for Title II and Title IV Volatility
With two consecutive White House budget proposals targeting Title II-A and Title IV-A for consolidation or elimination, districts that rely on these funds for instructional coaching, professional development, or after-school programming face real medium-term uncertainty — even though Congress has so far maintained current funding levels.
A practical approach: Conduct a quick audit of which district positions and programs are funded with Title II or Title IV dollars and model what local replacement cost would look like if those streams were reduced by 25%, 50%, or eliminated entirely. Sharing this analysis with your school board in a spring budget session builds credibility and creates a planning record.
Cross-program alignment also helps: using Title I schoolwide funds to absorb some professional development costs, or pairing Title IV technology spending with documented academic outcomes, strengthens your position if future grant monitoring shifts toward outcomes-based reviews. Document the connections explicitly in your consolidated application.
Watch for the FY2027 congressional appropriations process to heat up as Congress returns from recess — early signals suggest the MEGA Grant proposal will face significant pushback from both parties. Also monitor IDOE for any update on the status of Indiana’s federal Title flexibility waiver, which — if approved — could reshape how Indiana districts receive and report on Title funds beginning in 2026–27.