The incoming administration has articulated an intention to enact some changes that would result in a significant shift in the nation’s education policies. From the promotion of school choice to rethinking the role of the U.S. Department of Education (USDE), key initiatives promise to reshape how students are educated across the country. These are some of the major topics likely to define this administration’s education focus as the president’s agenda is implemented.
The education agenda for the new administration focuses heavily on increasing parental rights and local control over educational decisions. While the president-elect has declared that he is not adopting the Project 25 plan circulated by the Heritage Foundation, the framework shaping the president’s education plan models that blueprint in calling for extensive reforms to the federal government’s role in education. Key recommendations include actions that would reduce federal control and enable families and school districts to make decisions best suited to their local communities.
A major announced focus of the new administration’s education agenda is greater availability of school choice. Central to this policy shift is the creation of a universal federal tax credit scholarship program aimed at expanding school choice to all 50 states. Currently, the D.C. Opportunity Scholarship Program is the only federally funded choice program funded by Congress. All other choice programs that may provide state tax credits are funded by individual states or private philanthropy. In the 118th Congress, the Educational Choice for Children Act (ECCA), allowing federal income tax credit for contributions to education scholarship granting organizations, was voted out of the House Ways and Means Committee but did not get a floor vote. Attempts will be made to reintroduce this bill again in the new Congress.
The initiative is backed by polling data that shows strong public support for school choice, particularly among voters who feel their educational options are limited. Advocates believe that school choice will create an educational system that is more responsive to the needs of individual students and families, promoting innovation and improved student outcomes across the board. However, passage of choice legislation is not assured. During the first Trump administration, when the Secretary of Education and both chambers of Congress were controlled by republican leadership, a similar bill was not given earnest consideration. While, unfortunately, choice has become a partisan issue, not all partisans can be counted on to support such an option as a policy issue.
While fully abolishing the USDE would require congressional approval—a hurdle that might prove difficult to clear—the president-elect has made clear his intention to reduce the department’s scope and impact.
A longstanding goal of some conservatives has been to reduce or even eliminate the USDE. A bill, Returning Education to Our States Act, was introduced in the Senate in the last days of the 118th Congress to abolish the USDE within six months of being enacted, designating other federal agencies to manage funds for “important programs.” This did not gain any traction but may be introduced in the new Congress. A new bill that might include transferring programs: IDEA (special education) to the Department of Health and Human Services, Pell Grants and student loans to the Department of the Treasury, Title IX and civil rights concerns to the Department of Justice and ESEA programs block-granted to the states bears close scrutiny.
Such a transition could potentially alter how private and faith-based schools interact with federal programs, raising concerns about the co-mingling of federal and state funds, and the potential for restrictive state regulations that could infringe on the independence of such institutions and their ability to participate in them. Catholic school equitable participation has frequently depended upon the Office of Nonpublic Education in the USDE to provide guidance and some interventions when states were not in compliance with the obligations of the programs. The USDE has been effective in resolving issues nationally, not leaving schools to have to deal with each of the states over similar issues.
In what might be a move toward reducing the federal role in education, the new administration has selected Linda McMahon, former head of the Small Business Administration and a strong advocate for parents’ rights and school choice, as Secretary of Education. McMahon’s business background and outsider perspective are seen as assets in reducing the power of the USDE and she is expected to play a critical role in pushing the agenda to return education to state control. She has made it clear that empowering parents and expanding school choice will be a top priority under her leadership.
The new Congress will focus on pushing forward education reforms, including legislation that strengthens parental rights and reduces federal intervention in school operations. With the election of the new Congress, the leaders of the House Committee on Education and the Workforce and the Senate Health, Education, Labor, and Pensions Committee (HELP) are expected to play a pivotal role in shaping education policy. Bill Cassidy (R-LA) will chair the Senate committee in the upcoming 119th Congress. While his primary focus has been on lowering the cost of higher education and addressing student loan debt, he introduced the Educational Choice for Children Act in the last Congress. House committees have not been determined. The leading candidate for the chairperson role is Tim Walberg (R-MI) who is aligned with the president-elect’s education agenda, particularly on the issue of school choice.
In addition to the USDE and congressional education committees, Catholic schools may be impacted by the actions of other federal agencies. Among these, private school advocates pay close attention to the Federal Communications Commission, Internal Revenue Service and U.S. Supreme Court. Following are some concerns that will be monitored.
The Federal Communications Commission (FCC) plays a key role in ensuring that schools, libraries and healthcare facilities have access to broadband, with programs like the Universal Service Fund (USF) designed to subsidize these connections. However, the current funding model, which collects funds from traditional telephone customers, has been challenged in federal courts on constitutional grounds, and there are calls for reform. The U.S. Supreme Court announced it will hear the case this term. Catholic schools have participated in the E-Rate program discounted telecommunications services since it began in 1997. Schools receive discounted services that are paid to the telecom provider, not to the schools. The funds are collected from the telecommunication companies by a non-governmental agency (Universal Services Administrative Company-USAC) and are not considered federal funds appropriated by Congress. Under the new administration and a new chairperson at the FCC, there may be attempts to move the program funding to congressional appropriations which would make it more difficult for Catholic schools to participate.
The Tax Cuts and Jobs Act of 2017 expires in 2025 and will require another revision. Several proposals that may impact Catholic schools and other non-profit organizations are being monitored. Some tax policy experts are talking about an amendment to the tax code that would require such organizations to pay income tax on all non-donation revenue, such as membership dues, conference fees, corporate sponsorships and other contributions.
Additionally, challenges to tax-exempt status have been heard in federal district courts that questioned whether tax exemption automatically constitutes recipient of federal funds status on institutions. Several federal laws are triggered by the receipt of federal financial assistance, potentially subjecting non-profits to multiple burdensome and costly regulations. While the Fifth and Ninth Circuit courts have ruled it does not, their decisions are applicable only in the states located in their jurisdiction. Rather than having to litigate it again in other circuits where it may be challenged, a bill was introduced in the last Congress to amend the tax code to clarify that tax-exempt status is not receipt of federal funds, and efforts will be made to reintroduce it as part of the tax reform process.
The incoming administration’s education policy promises significant change and challenges the status quo. The new Secretary of Education combined with key Congressional allies will be at the forefront, working to reshape the educational landscape in ways that prioritize students, families and local control. Whether through expanding school choice, redefining the status of federal education funding or reconsidering how technology supports education, the next few years could bring some of the most profound shifts in U.S. education policy in decades. In the coming months, NCEA and its collaborators in federal advocacy for private education will be meeting with new players to make them aware of the interests and concerns of private schools and work to assure the continuance of equitable participation in federal programs that have been a part of the educational landscape for decades.
Sister Dale McDonald, PBVM, Ph.D.is the vice president of public policy for NCEA.
McDonald@ncea.org
