Charter Funding Boost, Loan Repayment Notices, and Uncertainty at the Department of Education Podcast Por arte de portada

Charter Funding Boost, Loan Repayment Notices, and Uncertainty at the Department of Education

Charter Funding Boost, Loan Repayment Notices, and Uncertainty at the Department of Education

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 # Department of Education Weekly Roundup: May 21, 2025

HOST: Welcome to this week's Education Update. I'm your host, and today we're covering the most significant developments from the U.S. Department of Education.

The biggest headline this week: Secretary of Education Linda McMahon has announced a historic $60 million increase in funding for charter schools, raising the Charter Schools Program's total budget to $500 million for fiscal year 2025.

SECRETARY MCMAHON (VOICEOVER): "Not only are we proposing a future $60 million increase in the program budget, but we are also dedicating an additional $60 million in this year's funding. With more dollars going toward education choice and a new grant opportunity to help highlight best practices, we hope to pave the way for more choices, better outcomes, and life-changing opportunities for students and families."

HOST: This announcement came during National Charter Schools Week and includes the launch of the new Model Development and Dissemination Grant Program, designed to showcase successful charter school strategies nationwide.

The Department has also released the May 2025 update to the Federal School Code List of Participating Schools for the 2025-26 academic year. This quarterly update is crucial for students completing their FAFSA applications, ensuring their financial aid information reaches the correct institutions.

In a more concerning development, the Department has begun notifying approximately 195,000 defaulted student loan borrowers that their federal benefits will be subject to offset starting in early June. Later this summer, all 5.3 million defaulted borrowers will receive notices about administrative wage garnishment. The Department is urging colleges and universities to reach out to former students about loan repayment obligations before June 30th.

This flurry of activity comes amid uncertainty following President Trump's March 20th executive order directing the Education Secretary to "take all necessary steps to facilitate the closure of the Department of Education." While this would require Congressional approval that currently lacks support, it has created concern among education advocates.

The American Speech-Language-Hearing Association has expressed opposition to potential cuts that could impact student achievement and essential services for students with disabilities, particularly regarding IDEA funding.

For parents and educators watching these developments, mark your calendar for later this month when the Department plans to publish institutional non-repayment rates on the Federal Aid Data Center.

For more information on any of these topics, visit ed.gov or follow the Department's social media channels. I'm your host, thanks for listening to this week's Education Update.
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