Compliance Conversations | Federal Education Grants: What the Latest Changes Mean for Programs and Compliance-Video Recording

Video Transcription

Video Summary

In this National Grants Management Association webinar, Tip Tucker-Kendall and presenters Steve Spillan and Tiffany Kessler from the Brumman Group discuss significant current issues affecting federal education grants management amidst the U.S. government shutdown and funding uncertainties. They emphasize that Department of Education (ED) programs are generally forward-funded, so the shutdown mainly slows fund drawdowns due to reduced staffing but does not immediately cut funding. The presenters overview the current appropriations landscape, noting proposed funding level cuts with some congressional resistance and highlight potential administration rescission requests that could reduce already approved funding without new appropriations legislation.<br /><br />The ongoing effort by Secretary McMahon and the administration to close or dismantle the Department of Education is a central concern. Despite statutory protections establishing ED as an independent agency responsible for various education programs, there are moves to transfer key programs—such as Perkins, Career and Technical Education, Adult Education, and student aid—to other agencies like the Departments of Labor, Treasury, and Health and Human Services. Multiple lawsuits challenge these reductions in force and transfers, with some temporary injunctions in place, though recent Supreme Court decisions have allowed reductions to proceed.<br /><br />An Executive Order on federal grant oversight aims to enhance political appointees' review authority, encourage termination clauses in discretionary grants, prefer applicants with lower indirect cost rates, and tighten drawdown justifications, raising compliance complexity.<br /><br />The administration is advancing integration of artificial intelligence (AI) into education through policy and funding priorities, promoting AI literacy, educator training, and use of AI-powered tools, while stressing the need for privacy compliance under FERPA and HIPAA.<br /><br />Finally, evolving guidance on the Personal Responsibility and Work Opportunity Reconciliation Act (PRAWORA) challenges the definition of federal public benefits, potentially extending eligibility verifications to certain K-12 programs, especially career and technical education, leading to legal disputes.<br /><br />Overall, educators and grant managers are urged to stay informed, monitor legal developments, and prepare for shifting administrative structures and compliance requirements in the rapidly changing federal education grant environment.

Keywords

National Grants Management Association

federal education grants

U.S. government shutdown

Department of Education funding

appropriations cuts

ED program transfers

executive order on grant oversight

artificial intelligence in education

FERPA and HIPAA compliance

PRAWORA eligibility verification