CDE warns federal education staffing, funding table delays leave state K–12 programs in fiscal limbo

The Department of Education and finance officials told the Senate Budget Subcommittee No. 1 on Education that federal changes and delayed federal funding tables have created uncertainty that complicates state K–12 planning.

Patrick Rochelle, Department of Finance, said the May Revision includes about $8.2 billion in federal funds for the California Department of Education in 2025–26: “This is made up of $194.5 million in state operations and $8.0 billion in local assistance,” he said, adding that some federal award updates were not available at the time the May Revision was finalized because federal grant award tables were delayed.

Kimberly Rosenberg, California Department of Education, described operational impacts from federal agency changes: “The federal fiscal landscape at the U.S. Department of Education involves executive orders, a 50% reduction in workforce, [and] the regional office of civil rights based in San Francisco was forced to close,” she said, reporting that CDE staff have received repeated notices of delayed drawdowns, award changes and other disruptions.

Why it matters: Many state and local K–12 programs — including Title I, IDEA, child nutrition programs and others — rely on federal grants and funding tables. State budget planning assumes an allocation schedule; delays or changes in federal awards can make it hard for LEAs and the state to plan staffing, purchases and services before the school year.

Specifics from the hearing

- Finance’s May Revision federal‑fund totals for CDE in 2025–26: roughly $8.2 billion ($194.5 million state operations; $8.0 billion local assistance). Finance said the May Revision used the most recent federal estimates available (mostly October 2024) and will update after final federal tables. - CDE said key federal funding tables that allocate Title and other funds to states were delayed this year; the agency expects allocations to be posted before the July 1 school‑year start but said the delay complicates planning. - Smaller grant changes were noted on the record: CDE staff said the IDEA grant award declined about $4 million from the prior year (a roughly 0.3% shift of the $1.4 billion total award), a change described by CDE as the result of routine population adjustments rather than a punitive action. - Finance and LAO told the committee they will continue monitoring federal developments and return with adjustment recommendations if large federal cuts materialize.

Sun Bucks (formerly summer EBT) and other new federal items

Legislative Analyst and CDE staff discussed the new federal summer benefits program (Sun Bucks). The LAO flagged a $21.9 million cost estimate in the May Revision tied to administering the federal benefit at the state level and noted the May Revision lacks an allocation formula for distributing those administrative funds to districts.

Committee direction

Senators asked the administration to alert the Legislature if federal appropriations or federal guidance cause material changes. Finance said it would continue to coordinate with CDE and the Legislature about updates and potential budget adjustments; LAO and CDE urged caution in assuming a status‑quo federal funding environment while Congress and federal agencies continue to consider changes.

Ending: The subcommittee did not take action but requested ongoing updates from Finance and the Department of Education as federal developments unfold.