May 5 Federal Update: White House Releases Fiscal 2026 Budget Proposal

On May 2, President Donald Trump released the administration’s proposed budget for fiscal year 2026, highlighting significant spending cuts to domestic programs. While presidential budgets outline policy priorities, Congress is not obligated to adopt them.

The proposal calls for more than $163 billion in cuts to non-defense spending, with major reductions targeting child welfare, education, and public health programs.

Key proposed cuts include:

• $26 billion from the State Rental Assistance Block Grant
• $3.3 billion from the Community Development Block Grant
• $1 billion from the Substance Abuse and Mental Health Services Administration
• $674 million from Centers for Medicare and Medicaid Services Program Management
• $315 million reduction in Preschool Development Grants
• $4 billion from the Low Income Home Energy Assistance Program (LIHEAP)
• $770 million from the Community Services Block Grant
• $425 million from the Commodity Supplemental Food Program

Congressional Republicans aim to pass appropriations legislation by July 4, ahead of the Sept. 30 fiscal year deadline.

President Trump Signs Executive Orders on Education and Immigration

Advancing Artificial Intelligence Education for Youth

On April 23, President Trump signed an executive order establishing an Artificial Intelligence Education Task Force. The initiative aims task force is to highlight student and educator achievements in artificial intelligence (AI) and promote the adoption of emerging technology nationwide.

The order directs the secretary of education to prioritize AI integration in discretionary grant programs, including efforts to improve teacher training, evaluation, and professional development. It also encourages states and grantees to use Workforce Innovation and Opportunity Act funds to support AI skills development and work-based learning.

Amending School Discipline Policies

In a separate executive order issued the same day, President Trump directed the secretary of education and the attorney general to collaborate with governors and state attorneys general to prevent racial discrimination in school discipline practices.

The order requires the Department of Education to report on what it calls the “discriminatory-equity-ideology-based” policies. The report must include an inventory and analysis of Title VI discipline investigations, model policies, and the role of federally funded nonprofits in promoting these approaches. It must also include recommendations to restrict federal funding for organizations that promote such discipline and behavior modification practices.

Reforming Accreditation in Higher Education

Also on April 23, President Trump signed an executive order directing the Department of Education to hold accreditors of higher education institutions accountable violations of federal law or failing to meet recognition criteria. The order flags equity, diversity, and inclusion (EDI) requirements for institutions as grounds for monitoring, suspension, or termination of accreditor recognition.

Following the order, the department released a Dear Colleague Letter providing updated guidance for accrediting agencies.

Enforcement of Federal Immigration Law

On April 28, President Trump signed an executive order directing the attorney general and secretary of homeland security to publish a list of states and local jurisdictions that do not comply with federal immigration law. Noncompliant jurisdictions may face legal action, loss of federal funds, and other enforcement measures.

White House Releases Report on Executive Order Targeting Gender-Affirming Care

The White House released a report detailing initial steps to implement Executive Order 14187, titled “Protecting Children from Chemical and Surgical Mutilation.” The order prohibits federal departments from funding, sponsoring, assisting, or facilitating gender affirming care. Key actions outlined in the report include:

• The DOJ has drafted legislation, pending further review, that would create a private right of action for children and parents seeking legal recourse for medical interventions related to gender-affirming care
• The Department of Health and Human Services (HHS) has eliminated 215 grants to prevent federally funded research or education from contributing to gender-affirming care
• Federal health contractors and insurers covering the civilian workforce are removing gender-affirming care as a covered benefit
• The Department of Justice (DOJ) has issued guidance  enforcing protections against female genital mutilation and will convene state attorneys general to coordinate enforcement efforts

ACF Updates Payment Processing Requirements to Improve Accountability

The Administration for Children and Families (ACF) has announced updates to its payment processing procedures aimed at increasing transparency and accountability in the use of federal funds.

Organizations using the Payment Management System are now required to provide detailed explanations for payment requests at the subaccount level. Federal awarding agencies will review these justifications and may request additional information or approve based on the details provided.

ACF advised grantees to anticipate potential payment delays by increasing the lead time between the organization’s financial need and the payment request. Additionally, grantees are encouraged to:

• Consolidate subaccounts within the same program area where possible
• Submit payment requests that include only one awarding agency
• Limit the number of grant subaccounts and group subaccounts

Head Start Encourages Family-Centered Program Design

The House and Senate passed a budget framework along partisan lines, completing the first step of budget reconciliation. The plan inThe Office of Head Start has released an information memorandum urging programs to promote parent choice in early education. Programs are encouraged to participate in state and local efforts that coordinate enrollment and services across early care and education systems.

The memorandum recommends engaging families to shape and refine program models, ensuring offerings align with community needs and support informed family decisions. Programs are also encouraged re-evaluate partnerships, particularly with community and faith-based organizations, to expand options and improve access for families.

Office of Child Care Promotes Use of CCDF for Expanded Choice

The Office of Child Care (OCC) issued an information memorandum outlining strategies to use the Child Care and Development Fund (CCDF) to enhance educational choice. Recommendations include:

• Expanding the use of CCDF certificates to include faith-based and private school-affiliated providers
• Supporting mixed delivery systems that incorporate diverse provider types
• Enhancing access to before- and after-school care, wraparound services, and flexible scheduling

OCC also emphasized the importance of improving transparency, such as providing accessible provider information and streamlining enrollment processes to help families make informed decisions.

HHS Highlights Progress Under Trump Administration

The Department of Health and Human Services (HHS) released a summary of its key initiatives during the first 100 days of President Trump’s administration. Secretary Kennedy highlighted the following actions as central to reducing chronic illness and improving public health:

• Expanded efforts to investigate the environmental contributors to rising autism rates, alongside a push for greater transparency and urgency in related research
• Establishment of the Make America Healthy Again Commission
• Launch of Operation Stork Speed to investigate options for safe, reliable, and nutritious infant formula

HHS Releases Review on Gender Dysphoria Treatments for Youth

The Department of Health and Human Services (HHS), through the Office of the Assistant Secretary for Health and the Office of Population Affairs, released a comprehensive review of medical interventions for children and adolescents with gender dysphoria.

The report raises concerns about the risks associated with puberty blockers, cross-sex hormones, and surgeries, while noting the broader mental health challenges facing adolescents. It also highlights a lack of research on psychotherapeutic approaches for treating gender dysphoria in youth.

Updates from the Judiciary 

Supreme Court Reviews ACA Preventive Care Coverage Mandate

On April 21, the U.S. Supreme Court heard oral arguments in a case challenging the Affordable Care Act’s (ACA) mandate requiring health insurers and group plans to cover preventive services at no cost to patients. At issue is the constitutionality of delegating authority to the U.S. Preventive Services Task Force (USPSTF), which determines the list of required services.

The USPSTF—a panel of independent experts appointed to four-year terms—has recommended coverage for services such as cancer screenings, substance use disorder evaluations, statin use, and HPV vaccinations. The legal challenge stems from the task force’s recommendation to include pre-exposure prophylaxis (PrEP), a medication that prevents HIV, prompting Texas employers and individuals to file suit.

Plaintiffs argue the task force’s authority is unconstitutional because its members are neither presidentially appointed nor Senate-confirmed. Federal officials counter that the Secretary of Health and Human Services maintains ultimate authority by appointing and removing task force members and approving or rejecting its recommendations.

The Court is expected to rule in June. The decision could significantly affect the future of preventive care coverage under the ACA.

Federal Courts Block Enforcement of EDI-Related Funding Threats in Schools

Three federal judges have ruled against a Feb. 14 Dear Colleague Letter from the U.S. Department of Education that threatened to revoke Title I funding from schools maintaining equity, diversity, and inclusion (EDI) programs.

Chief Judge Landya B. McCafferty of the U.S. District Court for the District of New Hampshire found the guidance unconstitutionally vague, noting its lack of definitions for EDI programs or the criteria for alleged violations of Title VI of the Civil Rights Act. Similar concerns were raised by U.S. District Judge Dabney L. Friedrich of the District of Columbia.

Judge Paula Xinis of the District of Maryland issued a temporary stay preventing the administration from enforcing the funding threats. The ruling also paused compliance certification requirements for affected schools. Additionally, Judge McCafferty blocked enforcement against plaintiffs and their members, including the National Education Association, its New Hampshire affiliate, and the Center for Black Educator Development.

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