Education Budget Proposes Funding Shifts for Disability and Civil Rights Programs
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U.S. Education Secretary Linda McMahon testified on the administration's 2027 budget, which proposes increased funding for disability education and Pell Grants while cutting the Office for Civil Rights (OCR). The department is also shifting oversight of key programs, including student loans and civil rights enforcement for disabilities, to other agencies. McMahon stated the department is working to hire more lawyers to address a significant case backlog.
Facts First
- The budget proposes a $539 million increase for the Individuals with Disabilities Education Act (IDEA), bringing its total to $16 billion.
- A 35% funding cut is proposed for the Office for Civil Rights (OCR), which investigates discrimination complaints.
- Oversight of IDEA and student loans is shifting to other agencies, with the Department of Labor and Treasury Department identified.
- Spending for Title I aid to low-income schools remains level, while Pell Grants receive a proposed $10 billion increase.
- The department is hiring more lawyers to address a backlog of thousands of civil rights cases.
What Happened
U.S. Education Secretary Linda McMahon testified before a Senate committee regarding the White House's proposed 2027 fiscal year education budget. The proposal includes a $16 billion allocation for the Individuals with Disabilities Education Act (IDEA), a $539 million increase from the previous year. McMahon pledged to shift the supervision and enforcement of IDEA to other agencies, naming the Department of Labor and the Department of Health and Human Services (HHS) as potential candidates. The budget also proposes a 35% reduction in funding for the Office for Civil Rights (OCR), an office that investigates discrimination complaints. This follows actions in March 2025 where more than half of the OCR's lawyers and staff were terminated and seven of its 12 regional offices were shut down. McMahon stated the department is working to hire more lawyers to address a backlog of thousands of cases.
Spending for Title I... will remain at current levels. The administration's proposed budget includes a $10 billion increase for federal Pell Grants. The Education Department is shifting oversight of the federal government's $1.7 trillion in student loans to the Treasury Department. A new repayment plan for borrowers affected by a previously ruled illegal Biden administration repayment plan is scheduled to roll out in July.
Why this Matters to You
If you or your child receives special education services under IDEA, the proposed funding increase could mean more resources for your school district, though the shift in oversight to other agencies may change how services are administered. For students from low-income families, Title I funding stability and the proposed increase to Pell Grants could help maintain access to educational support and make college more affordable. The significant cuts and staff reductions at the Office for Civil Rights (OCR) may lead to longer wait times if you file a discrimination complaint based on race, sex, national origin, or disability. If you are one of the approximately 88,000 borrowers waiting for the Public Service Loan Forgiveness (PSLF) buyback program, the shift of loan oversight to the Treasury Department could affect the processing of your application.
What's Next
The proposed budget must be debated and approved by Congress, where changes are likely. The department's effort to hire more lawyers for the OCR may help reduce the existing case backlog over time. The shift of IDEA oversight to the Department of Labor or HHS will require formal inter-agency agreements and could alter enforcement procedures. The new student loan repayment plan for affected borrowers is scheduled to be implemented in July, and the Treasury Department will assume greater responsibility for managing the $1.7 trillion student loan portfolio.