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Tennessee Department of Education briefs subcommittee on federal grant increases, interagency changes and waiver timeline
Summary
TDOE officials told the Education Administration Subcommittee that FY26 forward-funding provides predictability for districts, Title I and related funds increased by about $20 million at the federal level, and the department is pursuing waivers and ESSA-plan revisions while monitoring interagency shifts to Labor for some programs.
The Education Administration Subcommittee heard an update from the Tennessee Department of Education on federal education funding, interagency agreements, and the department's effort to secure federal waivers.
Debbie Thompson, assistant commissioner of federal programs and oversight, said the FY26 consolidated appropriations measure signed at the federal level funds the 2026–27 school year, enabling states and LEAs to plan ahead. "This law will provide educational funding for next school year 2026–27," Thompson said, adding that states can begin budgeting and hiring this spring.
Thompson told members TDOE has identified "an increase of $20,000,000 in Title I and related funds at the federal level" while most other K–12 programs remain level-funded. She also described recent U.S. Department of Education announcements that shift some Perkins and ESSA responsibilities toward the U.S. Department of Labor; TDOE said it has participated in federal conversations and is tracking implications for districts.
On waivers, Thompson said the U.S. Department of Education has 120 days to review waiver submissions and that TDOE expects a formal response "in the coming weeks as the 120 day deadline approaches." Mary Ann Durske, the department's chief financial officer, told the committee that preliminary allocations typically arrive in February or March and that core allocations (ESSA, IDEA, Perkins) are trending "pretty consistent" for Tennessee so far.
Members asked how proposed flexibilities — including waiving Title IV Part A spending caps and allowing transferability into Title I — would affect district service delivery. Thompson explained many LEAs currently transfer Title IV funds into Title I to avoid spending caps, and that waiver requests aim to reduce administrative burdens and increase local operational flexibility. "We have over 100 districts that transfer Title IV funds into Title I to avoid those spending caps," she said.
The department highlighted short-term operational issues tied to interagency accounting systems; Thompson said transitions have caused "1 or 2 speed bumps" because the Department of Labor and Department of Education use different accounting platforms, but that programs have not been disrupted for students. TDOE invited further dialogue with members as federal reviews proceed.
