After a brief government shutdown, yesterday, Congress passed a minibus that included final Fiscal Year (FY) 2026 funding for the Departments of Education (ED) and Labor (DOL). The House approved the package Tuesday evening in a 217-214 vote. The Senate had previously passed the measure on Friday in a 71-29 vote after first making changes to the legislation. The appropriations bills included in the minibus are:

• Labor, Health and Human Services, Education and Related Agencies
• Defense
• Homeland Security
• Transportation, Housing and Urban Development and Related Agencies
• Financial Services and General Government

FY 2026 funding for the last appropriations bill, for the Department of Homeland Security, was not included in the bill. This agency was instead funded through a new continuing resolution lasting until Feb. 13. Negotiations in Congress and with the White House are continuing over that bill.

For FY 2026, ED will be funded at $79 billion, which is approximately $217 million above FY 2025 levels. The Perkins State Grant was level funded, as was the Perkins National programs line item.

Most other education programs in the bill were also level funded, a significant victory after both the Administration and House had proposed steep cuts earlier this year. The bill maintains funding for the maximum Pell Grant at $7,395 for the 2026-2027 academic year. It also maintains funding for Title I of the Every Student Succeeds Act at approximately $18.4 billion, and for adult education programs.

At the Department of Labor, the bill provides $285 million to support the implementation of the Executive Order (EO), “Preparing Americans High-Paying Skilled Trade Jobs of the Future,” which sets the goal of surpassing one million new active apprentices.

A detailed summary of the bill can be found here.

The final bill does not include specific language that would prevent ED from entering Inter-Agency Agreements like the one covering the transition of the administration of the Perkins Act to the Department of Labor. However, there is general language prohibiting transferring funds to other agencies, and directs the agencies involved to provide Congress with biweekly reports on the implementation of any interagency agreement. It is unclear exactly how these provisions will be interpreted.

If you have any questions, please contact ACTE’s Government Relations Manager, Jimmy Koch (jkoch@acteonline.org).

CTE leaders in the House and Senate are preparing for the introduction of this year’s CTE Month Resolutions, and we need your help to recruit co-sponsors!  Senate CTE Caucus co-chairs Sens. Tim Kaine (D-VA), Tammy Baldwin (D-WI), Ted Budd (R-NC) and Todd Young (R-IN), along with House CTE Caucus co-chairs Reps. Glenn “GT” Thompson (R-PA) and Suzanne Bonamici (D-OR), are introducing the resolution in their respective chambers.  

CLICK HERE to ask your Members of Congress to cosponsor this year’s CTE Month resolution. 

This resolution recognizes February 2026 as CTE Month. CTE Month is a critical time in raising awareness of the role that CTE plays in connecting learners to high-wage, in-demand career opportunities that are vital to building a 21st-century workforce and strengthening the American economy.  

Strong support for the CTE Month Resolution will help to ensure that CTE is a priority for the Congress this year. Using ACTE’s Action Center, you can identify your senators and representative and send a message to their offices to ask them to co-sponsor the Resolution. If you have direct contacts in your Members’ offices, we urge you to call or email them directly.  

Senate co-sponsors are due by Feb. 12, while House members have the entire month of February to co-sponsor the Resolution. 

Senators can sign on as a co-sponsor of the Senate CTE Month Resolution by contacting:

• Rebecca Howard (rebecca_howard@kaine.senate.gov) in Sen. Kaine’s office 

Representatives can sign on as a co-sponsor of the House CTE Month Resolution by contacting either: 

• Faith Tuttle (faith.tuttle@mail.house.gov) in Rep. Thompson’s office 

• Allie Pearce (allie.pearce@mail.house.gov) in Rep. Bonamici’s office 

All focus was on the appropriations process in DC this week, as Congress attempted to navigate the passage of the remaining six appropriations bills before the expiration of the current continuing resolution (CR) on Jan. 30. Senate leaders struck a deal on Thursday to separate homeland security funding from a package of other funding bills, which includes FY 26 funding for the Education (ED) and Labor Departments (DOL). On Friday, the Senate passed a new short-term CR that would fund homeland security activities at their current level until Feb. 13, while approving the remaining five appropriations bills as originally negotiated between the chambers and passed by the House. However, because this package overall was different than what the House passed, it must go back to that chamber for another vote. Until that point, a partial government shutdown is underway. The shutdown is expected to be short, however, with the House hoping to vote by Tuesday. Read more updates from the week below.

• ED and DOL Release Guidance for WIOA Plans: On Jan. 26, ED and the DOL released guidance for states on updating their WIOA State Plans, encouraging states to submit Combined State Plans including Perkins (although this is not required). Guidance for Perkins State Plan revisions is expected soon.
• ED Announces Negotiated Rulemaking on Postsecondary Accreditation: On Jan. 26, ED announced that it was convening a negotiated rulemaking committee to develop regulations aimed at reforming the accreditation process, including easing rules for emerging and new accreditors as well as focusing more on outcomes. This announcement follows a series of actions from the Administration targeting the accreditation process, including an Executive Order and ED’s actions to update the Department’s Accreditation Handbook.
• ACCT Launches National Initiative for Community College Workforce Programs: On Jan. 27, the Association of Community College Trustees (ACCT) announced the launch of a three-year initiative aimed at embedding virtual, work-based learning into short-term workforce programs in 20 community colleges nationwide. The initiative will focus on high-demand fields such as advanced manufacturing and will provide institutions with technical assistance, resources and free access to AI training through the Google AI for Education Accelerator. Applications will open in spring 2026.
• ED Proposes Rule on Student Loan Repayment: On Jan. 29, ED issued a notice of proposed rulemaking in the Federal Register implementing student loan regulations that were authorized under the One Big Beautiful Bill Act (OBBBA) and then finalized by a negotiated rulemaking committee last year. The changes include the elimination of the Grad PLUS program and new caps on loans for graduate and professional students.
• DOL Announces 2026 National Apprenticeship Week: On Jan. 28, DOL announced that 2026 National Apprenticeship Week will take place from April 26-May 2. National Apprenticeship Week emphasizes how Registered Apprenticeship improves and expands career pathways for American workers.
• DOL Announces American Manufacturing Apprenticeship Incentive Fund Now Accepting Applications: On Jan. 28, DOL announced the launch of the American Manufacturing Apprenticeship Incentive Fund This initiative was designed to encourage employers to develop, expand or join advanced manufacturing Registered Apprenticeship programs. Eligible Registered Apprenticeship sponsors will receive $3,500 for each new apprentice hired.
• National School Choice Week Prompts Numerous Activities: ED and the Administration conducted a number of activities in its celebration of National School Choice Week, including issuing a Presidential proclamation and hosting a roundtable at the White House. On Jan. 27, ED and the Treasury Department jointly released a fact sheet detailing the Education Freedom Tax Credit that was passed under OBBBA. Twenty-three states have opted into the program so far. At the same time, some policymakers expressed concern about voucher programs. On Jan. 28, Senator Bernie Sanders released a report detailing how the federal school voucher program, created under OBBBA, disproportionately benefits private schools. The Senate Health, Education, Labor and Pensions Committee also held a hearing on school choice issues, “Empowering Families Through Educational Choice in America.”

Two briefs published by Bellwether provide state policymakers with strategies to expand career-connected learning opportunities in their schools, such as CTE and early college high schools (ECHS).  

The first brief contains an overview of different career-connected learning models and policy recommendations for state policymakers to consider when supporting local programs. Additionally, a table summarizes the benefits students reap across models based on the research. For instance, CTE programs and CTE dual credit courses are associated with strong high school, postsecondary and workforce outcomes. Policy recommendations the authors outline include the following: 

• Developing and sustaining a credential of value framework so that students, families, teachers and employers are aware of high-value, industry-aligned credentials 

• Expanding alternative certification pathways, easing licensure requirements and other actions that encourage industry professionals to become CTE teachers 

• Implementing a specific funding mechanism and agreement on how dual enrollment costs are allocated between K-12 school districts and postsecondary institutions, avoiding potential confusion 

• Creating or adopting frameworks that define specific roles, definitions, functions and goals of various career-connected learning models 

The second brief draws from the career-connected learning ecosystems of four states to provide lawmakers with a series of recommendations on building and supporting new ecosystems in their own state. The states profiled—Colorado, Delaware, Tennessee and Texas—have each taken considerable steps in advancing state policy to support career-connected learning and can serve as a basis for other states interested in implementing similar work: 

• Colorado’s S.B. 315 consolidated the state’s postsecondary and workforce readiness programs into three funding streams, better aligning the state’s education and workforce priorities 

• Delaware Pathways connects students and employers to develop career pathways that begin in middle school 

• The Innovative School Models (ISMs) initiative in Tennessee, a $500 million grant program, encourages school districts to reimagine how they deliver career-connected learning 

• Texas’s College, Career and Military Readiness (CCMR) indicator captures various student postsecondary outcomes and provides high-performing districts with financial incentives.  

This week, although the Senate was in recess, congressional leaders released a four-bill “minibus” funding the remaining federal government agencies for FY 2026, including the Departments of Education (ED) and Labor (DOL). The bill proposes level funding for most education and workforce programs, including Perkins, and contains language barring the Trump Administration from transferring funds to other agencies unless authorized by law, although it is unclear how this will apply to the interagency agreements already in place. The House voted to pass the minibus on Thursday, and the Senate is expected to vote next week when it returns from recess so that the bill can be enacted before the current continuing resolution expires on Jan. 30In other news, ACTE continues to prepare for CTE Month as well as the National Policy Seminar coming up in March. Read more updates below. 

• House Advances Pregnant Students’ Rights Act: On Jan. 22, the House voted to advance the Pregnant Students’ Rights Act. The bill, if passed, would require postsecondary institutions to advise pregnant students on their rights, such as securing modified class schedules or attaining excused absences for doctor’s appointments.  

• ED Encourages States to Consolidate Title I Funds: On Jan. 21, ED issued a Dear Colleague Letter that encourages states to take advantage of existing flexibility for Title I schools to consolidate federal, state and local funding streams together. This letter follows a series of other letters the Department has issued to states encouraging the flexible use of funds in advancing school choice and other Administration priorities. 

• ED Drops Appeal Against Judge’s Ruling on DEI Memos: On Jan. 21, ED moved to dismiss its appeal against a federal judge’s ruling that struck down two anti-DEI memos the Department issued earlier this year. The memos warned schools and universities against employing DEI-related practices and threatened to pull federal funding from those that do.  

• Trump Admin Reworking Higher Ed Compact: On Jan. 21, the New York Times reported that the Trump Administration is working on another version of its higher ed compact it sent to universities late last year. Universities that signed the compact would receive preferential funding treatment in exchange for abiding by several of the Administration’s priorities, such as doing away with DEI initiatives and limiting international student enrollment. Most universities rejected the compact last year. 

• Federal Judge Orders ED to Reconsider Canceled TRIO Grants: On Jan. 20, a federal judge ruled that ED must reconsider over 100 TRIO grants it had canceled last year due to DEI-related concerns. Over a dozen states and the Council for Opportunity in Education had filed lawsuits challenging the cancellations.  

• DOL Announces $23 Million to Support Homeless Veterans: On Jan. 16, the DOL announced over $23 million to support homeless veterans with training and employment services. Grant recipients will offer veterans with skills and on-the-job training as well as support participation in Registered Apprenticeship programs. 

• ED Delays Garnishing Wages of Defaulted Student Loan Borrowers: On Jan. 16, ED announced that it was delaying involuntary collections on federal student loans to allow the Department to implement additional repayment plans that were created in the One Big Beautiful Bill Act and set to begin in July. ED initially announced that it would resume collections this month following a pause on payments during the pandemic.  

• Secretary Chavez-DeRemer continues America at Work tour: Labor Secretary Lori Chavez-DeRemer continued her “America at Work” tour this past week, stopping at Iowa Western Community College to speak with apprentices and students in the school’s welding and HVAC programs. 

• Secretary McMahon continues Returning Education to the States Tour: Secretary McMahon continued her “Returning Education to the States” tour in Georgia, visiting several CTE labs in aviation, dental assistant and audio production programs. 

Market Value of Nondegree Credentials: A report from the Brookings Institution examines the wage premiums workers gain from attaining specific nondegree credentials, such as digital badges and industry certifications.  

After analyzing the resumes and wages of over 37 million U.S. workers, the researchers found that, on average, a worker’s first job-relevant nondegree credential yields them 3.8% higher wages compared to similar workers without a credential—double the 1.8% premium from a job-irrelevant credential. Analyzing by type of nondegree credential, a worker’s first job-relevant microcredential yields the highest wage premium (4.5%), followed by job-relevant industry certifications (4.1%). Premiums associated with digital badges and academic certificates are smaller and do not rely on job relevance.  

Non-college and early career workers realize particularly high wage premiums for their first relevant nondegree credential (6.8% and 6.1%, respectively), indicating that these credentials offer strong occupational pathways to high-wage careers for workers who are not college educated or have limited work experience.  

Administrator Perspectives on CTE Staffing Challenges: A paper from the Georgia Policy Labs examines how CTE administrators perceive and tackle CTE teacher shortages in their districts and schools. The researchers surveyed and interviewed CTE administrators from Massachusetts and Washington, interviewed each state’s CTE director and identified six overarching themes: 

• The Nature of Hiring Challenges: CTE teacher vacancies differed across Massachusetts and Washington by Career Cluster, but administrators in both states identify teacher attrition as the main reason why positions go unfilled. Furthermore, administrators in both states acknowledge the difficulty in finding candidates that meet licensure and experience needs while also competing with industry salaries. 

• Staffing Strategies: When a vacancy occurs, administrators from both states indicate that they usually place a teacher who lacks CTE experience into the course. If the vacancy is immediate and no external help is available, existing teachers may absorb the workload instead, a practice especially common in Washington.  

• Impacts of Challenges and Strategies: Vacancies and a lack of qualified applicants result in administrators either relying on substitutes or shuttering a course, restricting access. The costs of constantly hiring and training teachers also strains districts. 

• District Flexibilities: Administrators have very little leeway when recruiting or retaining CTE teachers but have adapted various go-to strategies. These include placing teachers with industry experience higher on salary schedules, covering costs for certification and developing “grow-your-own” programs. 

• Hiring Preferences: Administrators were presented five random pairs of hypothetical CTE teacher profiles and asked to identify ones they preferred. Respondents in both states most valued prior relevant industry experience and least valued full teacher certification.  

• Policy Recommendations: Nearly half of the administrators in both states indicated that greater flexibility in licensure rules would help the most with CTE teacher hiring, such as allowing CTE teachers to substitute teacher certification exams with industry credentials. 

Exploring the Costs of CTE-dedicated High Schools in New York City: A report from the Research Alliance for New York City Schools analyzes and compares the per pupil costs and return on investment for students enrolled in CTE-dedicated high schools to other types of high schools in the New York City Public Schools system.  

The researchers specifically examined students who entered high school between 2013-16 and found that CTE-dedicated high schools spent about 5% more per pupil compared to other types of high schools. The majority of this difference is spending for teacher salaries, as CTE-dedicated high schools have significantly smaller student-teacher ratios. 

Despite these additional costs, CTE-dedicated high schools showcase a return on investment in both high school graduation and college-going rates. Particularly, newer schools aligned with college degree pathways were the least costly and the most effective at producing graduates and college enrollees. Mixed-aligned schools—where students pursue careers that may require some postsecondary education but not necessarily a bachelor’s degree—also have a positive return on investment with respect to graduation. Workforce-aligned schools experience no positive return on investment for either high school graduation or college enrollment, but the authors note students in these schools often aim to enter the workforce directly after high school. 

A Post-pandemic Analysis of CTE Performance by Gender: A journal article by Ericca S. Douglas and John R. Slate in the American Journal of STEM Education examines CTE participation and completion rates by gender in Texas from 2020-23. 

The researchers found that, across all three school years, girls had significantly higher CTE concentration and completion rates while boys participated in a wider variety of clusters. Unsurprisingly, boys dominated enrollment in clusters aligned with traditionally male fields, such as Manufacturing, while girls were concentrated in clusters like Health Science and Education and Training. Completion rates varied by cluster as well, with girls generally having higher completion rates across clusters compared to boys. Girls and boys had similar concentration and completion rates for some clusters, such as Agriculture and Law and Public Services. 

On January 19, lawmakers in both the House and Senate released compromised language on a four-bill minibus funding the remaining agencies in the federal government for fiscal year (FY) 2026. This minibus includes the Labor, Health and Human Services, Education and Related Agencies funding bill.

The bill funds the Department of Education (ED) at approximately $78.79 billion, which represents a $32 million increase over FY 25 enacted levels. The bill proposes level funding for most programs, including the Perkins State Grant, which would be funded at approximately $1.4 billion. This is a big victory for education and workforce development programs that were targeted for deep cuts by the Administration and in the House bill.

With regard to the inter-agency agreements (IAA) shifting the administration of funds from ED to other agencies, the proposal includes language that could be interpreted as limiting the scope of IAAs. The bill states that the Administration is prohibited from transferring funds to other federal agencies unless specifically authorized by an appropriations law. However, it is unclear how this language will ultimately be applied.

The House is expected to take up the minibus this week with the Senate following next week when they return to session. ACTE will keep you up to date on the latest developments. If you have any questions, please contact ACTE’s Government Relations Manager, Jimmy Koch (jkoch@acteonline.org).