Committee staff briefed members on federal funding developments that could reduce or reorganize K‑12 grants and recommended continued monitoring and state capacity building.

Daniel Estupian, the committee fiscal analyst, told the panel the U.S. Department of Education has proposed consolidating 18 existing grants into a single discretionary formula that would total about $2.0 billion under the administration’s proposal — roughly $3.8 billion less than the programs currently distribute. "We are not seeing any immediate changes in federal funding for K‑12, but we are seeing some delays in communication," Estupian said, adding that the administration's proposal would require congressional action.

Estupian highlighted particular risk to Title II‑A (supporting effective instruction), which currently drives about $15 million a year to New Mexico. He also reported that the administration formally proposed terminating funding for TRIO, English‑learner programs under Title III, adult education and migrant student education; staff estimated Title III funding to New Mexico at roughly $5 million annually and migrant student funding near $1 million.

The briefing noted the Department of Education proposal would include a $12 billion reduction in the department's proposed budget, with proposed steep cuts to the Institute of Education Sciences and other research and technical assistance streams. Estupian said the state should build its own capacity to collect and use data if federal research funding is curtailed.

Members asked about coordination with the federal delegation and the education secretary's recent remarks at the Western Governors Association. Estupian said staff and Education Department officials have provided preliminary awards for some formula programs but that LAEC/LESC staff did not attend the secretary’s conference presentation and had no direct new guidance to report.

No committee action was taken; members discussed the option of backfilling critical programs if federal cuts materialize. One member suggested the Legislature could provide state funding for programs the federal government reduces, citing the state's cash balances as a potential source. Estupian said staff will continue weekly tracking and brief the committee as developments occur.

The committee did not adopt formal policy or budget language at the meeting; staff told members they would provide further details to the federal funding stabilization interim committee and the Legislature as federal proposals advance and Congress acts.