The Trump Administration’s Budget Proposal Signals a Reduced Federal Role in Education

On April 3, the Trump Administration released its annual budget proposal outlining priority areas and funding goals for fiscal year 2027 (FY27). While the budget proposal is not law, it serves as guide for Congress as they strategize upcoming FY27 appropriations bills.

Overall, the budget requests $76.5 billion in discretionary budget authority for the Education Department (ED) for FY27, a 2.9% decrease from the FY26 enacted level. The budget advances the Administration’s current efforts to dismantle the federal government’s role in education, including continuing to reduce ED’s staff and transferring programs to other agencies. Below is a breakdown of the budget request and how it may impact higher education.

Elimination and Reprioritization of Higher Education Program Funding

The current budget proposal reduces higher education programs by $2.7 billion. It builds on earlier efforts to return more education control to state governments and eliminates programs the Administration does not support. For example, funding for Minority Serving Institution (MSI) programs was reduced by $345 million. In December 2025, the Department of Justice chose not to defend these programs in court and deemed them unconstitutional because they provided government funding exclusively to schools meeting specific racial or ethnic requirements. Instead, ED is reprioritizing funding to institutions it believes have a stronger history of expanding access to higher education, such as Historically Black Colleges and Universities (HBCUs) and Tribally Controlled Colleges and Universities.

Child Care Programs Eliminated

The proposed budget would also eliminate the Child Care Access Means Parents in School Program (CCAMPIS), a federal grant initiative that funds campus-based child care services for low-income, Pell Grant-eligible student parents. Even as research shows that the lack of reliable child care forces many parenting students to drop out, the Administration argues that CCAMPIS is duplicative of other state programs and would be best suited as a state or institution-wide initiative.

ED Shrinks Workforce as Budget Cuts and Program Shifts Continue

Since taking office, reducing federal agency staffing has been a top priority of the Trump Administration. The FY27 budget proposal continues this priority by significantly reducing ED’s personnel. In FY27, ED plans to support about 1,909 full-time employees. That is 1,635 fewer staff positions than it had in FY25. With this, ED is requesting $2.3 billion for salaries and expenses, which is a $381.6 million decrease from FY25 levels. Most of these staffing reductions are full-time employees in Program Administration, reflecting a shift in programming responsibilities to other federal agencies or back to the states.

Flat FSA Funding, Despite Expanded Responsibilities

Federal Student Aid (FSA) manages the nation’s largest source of financial assistance for post-secondary education students, including helping students and families access aid, processing the Free Application for Federal Student Aid (FAFSA), and overseeing outstanding loans and collections. Recently, FSA’s workload has increased significantly due to the One Big Beautiful Bill Act (OBBBA). OBBBA reshapes FSA’s responsibilities by changing FAFSA processing and implementing new repayment rules, borrowing limits, and loan eligibility requirements. Despite these expanded demands, the FY27 budget provides $2.1 billion for student aid administration, the same amount appropriated in FY25. Combined with significant staff reduction across ED, these changes may contribute to confusion among borrowers and widespread delays in receiving aid.

What’s Next and How to Stay Informed

The next step in the budget process will be for the House and Senate to pass a budget resolution setting the spending and revenue limits they will use during the annual appropriations process. For information and resources to help you navigate the changing federal policy landscape, visit and bookmark the AccessLex Institute^® Student Aid and Policy Action Center.