The U.S. Department of Education (ED) recently posted on its website estimated state-by-state reduction amounts for the agency’s largest grant programs resulting from the March 1, 2013 sequester. The 5.0 percent reductions for discretionary programs are estimated based on fiscal 2012 enacted spending levels. Estimates are provided for the following discretionary programs: Title I Grants to Local Education Agencies, School Improvement Grants, Impact Aid Basic Support Payments, Improving Teacher Quality State Grants, 21^st Century Community Learning Centers, English Learner Education State Grants, IDEA Part B Grants to States, CTE State Grants, Adult Basic and Literacy Education State Grants, Supplemental Educational Opportunity Grants, and Federal Work Study Grants. Estimates are also provided for Vocational Rehabilitation State Grants, a mandatory program, with the 5.1 percent reduction applied to the fiscal 2013 mandatory spending level. ED also released the estimated impact of the sequester on Title I funding allocations for the nation’s largest 100 school districts.

As ED explained in a memorandum issued last summer, the sequester’s impact on federal grant funding for the most part will be felt in the 2013-2014 school year. The memo indicated that Title I – Education for the Disadvantaged, Title II – School Improvement Programs, IDEA Part B – Special Education, and Career, Technical and Adult Education would not see 2012-2013 school year funds reduced due to the sequester. Rather, the sequester cuts for these accounts would be taken from 2013-14 school year funds. The letter also stated that most other elementary and secondary programs would not be affected by the sequester until the 2013-2014 school year as well, with the major exception being the Impact Aid program.

The Office of Postsecondary Education at ED also released a memorandum to the financial aid community last week clarifying the impact of sequestration on Title IV Student Financial Assistance Programs. Programs affected by the sequester include Iraq-Afghanistan Service Grants and TEACH Grants. In addition, the sequester will increase loan fees charged to Direct Loan borrowers. Regarding Campus-Based Programs, including Work Study Grants and Supplemental Education Opportunity Grants, the memo notes that official information on the sequester’s impact on funding allocations will be released later this spring.

Link(s): ED Grant Programs – Estimated Reductions; Title I Reductions for Largest School Districts; 7-20-12 Letter on Timing of Sequester Impact; Memo on Title IV Programs