Tuesday, September 30, 2025
Federal Focus: Update on Federal Government Shutdown
We want to update you on the potential impact a federal government shutdown could have on programs and operations of the U.S. Department of Education and other federal agencies.
At this point, there are four key points for you to know:
- The Wisconsin Department of Public Instruction will maintain operations during any federal government shutdown.
- Most federal education funds granted to local education agencies (other than impact aid and school meals) were provided in July/August, and LEAs are currently drawing down those funds. The DPI will continue to pay LEAs’ claim reimbursement for most federal grants submitted during the shutdown.
- The DPI will reach out to LEAs that will be affected by Impact Aid.
- The DPI will be able to pay September claims on school meals and will await further information from the United States Department of Agriculture.
Background
The new Federal Fiscal Year (FFY26) begins tomorrow, on October 1, 2025. As of the time of this communication, Congress has not passed either a budget or a continuing resolution. If they fail to act prior to midnight, a federal government shutdown will go into effect and federal agencies must implement shutdown procedures and operate in a severely curtailed manner described below. The last time the federal government shut down was from December 2018 into January 2019.
We hope Congress can come together for all of us, especially our children. We stand with you advocating for solutions to this impasse.
What Happens Under a Shutdown?
Under a shutdown, not all federal government functions stop. Programs and activities carried out with mandatory funding (funding that is not subject to annual appropriations) and those that have been funded through previous years’ appropriations continue. Activities that, if suspended, would immediately threaten the safety of human life or the protection of property or infringe upon the constitutional responsibilities of the president also continue.
Lastly, individual federal agencies must determine which employees must carry out this limited set of programs and functions. These “essential employees” continue working during a shutdown.
Based on past experience, ED designates only a small number of staff as essential – typically the head of each office, employees engaged in law enforcement activities (such as Office of Inspector General staff carrying out criminal investigations), and certain Federal Student Aid staff who work on programs receiving mandatory funding.
In the past, the Office of Management and Budget issued guidance and other documents advising agencies and the public on the operation of agencies and programs during a shutdown. In addition, each federal agency will develop its shutdown contingency plan.
Again, the DPI will maintain operations during any federal government shutdown.
Impact on Federal Grant Programs
- ESEA, IDEA, and Perkins Grants: Most ED funding for K-12 education flows from states and then to LEAs. This includes programs like ESEA Title I-A (Grants to Local Educational Agencies), Title II-A (Supporting Effective Instruction), Title III (English Language Acquisition), Title IV-A (Student Support and Academic Enrichment), and Title IV-B (Nita M. Lowey 21st Century Community Learning Centers Grant), as well as IDEA Part B (Special Education Grants to States) and Carl D. Perkins (Career and Technical Education) Grants.
LEAs will be able to continue using 2025-26 funds from DPI, as well as carry-over funds from the previous year if the ED is shut down. The funds allocated to LEAs for 2025-26 were included in the last federal budget
The shutdown will not impact the current 2025-2026 grants to LEAs. It will, however, delay allocations for grants that LEAs would receive on July 1, 2026. - Impact Aid: The DPI’s School Financial Services team will reach out directly to the 20 LEAs receiving Impact Aid to explain the effect a shutdown will have on these funds.
- School Meals: As with ED, we expect the USDA to provide additional information about funding for important programs during a government shutdown.
Child Nutrition Programs, including school lunch, breakfast, and snack programs, are reimbursed 30 days after the end of each service month. We anticipate funding for these programs will be available through the first quarter of the federal fiscal year (December 2025) but will provide an update when information is available from USDA.
If you have any questions regarding this information, please contact DPI Policy Initiatives Advisor Laura Adams at laura.adams@dpi.wi.gov.
New Initiative for 4K Providers Launching in 2026-27
Get Kids Ready is a new initiative that was included in Wisconsin’s 2025-27 biennial budget intended to support licensed or certified childcare providers. This initiative will be implemented by the Department of Children and Families in partnership with the DPI. Launching July 1, 2026, Get Kids Ready supports licensed or certified childcare providers serving 4-year-olds who do not contract with LEAs.
For details and FAQs, visit the Get Kids Ready section on the DCF’s 2025-27 Biennial Budget webpage.
Request for Feedback: Wisconsin Model Early Learning Standards
The Wisconsin Model Early Learning Standards (WMELS), used by those working with infants, toddlers and young children, are being updated by the Department of Children and Families in collaboration with the DPI and the Department of Health Services.
A statewide feedback survey is open now through October 24 to gather input from caregivers, families, educators, and community members.
Please share this survey with your 4K and 5K educators, families, and others in your district. Their input is essential to this process.