State education officials warn federal budget and rescinded ESSER extensions could force districts to return millions

Gilbert Campbell, deputy secretary of education, and Anne Bordenaro, director of federal and education support programs at the Agency of Education, told the Appropriations committee on May 23 that the state has received some federal K‑12 allocations but faces mounting uncertainty from federal budget proposals and a recent reversal on COVID-era ESSER liquidation extensions.

“The good, the bad, and the ugly,” Campbell said, summarizing the agency’s update for lawmakers.

The agency reported a mix of near-term certainty and looming risks. Anne Bordenaro said the agency “did receive on May 14 our title 1 allocations for school year 2526,” and that final Title I allocation notices are expected on July 1 and Oct. 1 as required by federal law. She told the panel the agency also has received IDEA awards and recent Perkins (career and technical education) allocations and has provisionally loaded district hold‑harmless amounts into grant systems so districts can begin budgeting.

But officials flagged larger federal changes that could reduce funding or complicate eligibility. Bordenaro summarized elements of the White House’s FY26 “skinny budget,” saying it proposes eliminating some programs and consolidating others: “There are proposed elimination of title 3 … adult learning, preschool development grants, teacher quality partnership grants, as well as cuts to Perkins for CTE” and a proposed consolidation of IDEA and other ESEA programs into block grants with unspecified cuts to other programs.

Campbell and Bordenaro said a separate process — the reconciliation bill and other FY25…