The 2026 federal budget proposal includes significant changes to how educational funds are distributed, particularly affecting programs aimed at supporting homeless students. If approved, the changes could impact how school districts provide essential services to students experiencing housing instability.
The current funding structure is supported by the McKinney-Vento Homeless Assistance Act, a long-standing federal law that protects the educational rights of homeless children and allocates grants for related services. In 2024, the U.S. Department of Education allocated approximately $129 million specifically for homeless student support, as part of a $6.5 billion package covering 18 different federal programs.
The new budget plan proposes reducing the overall funding to $2 billion and merging all programs into a single block grant. This approach would allow districts to choose how to allocate funds, without being required to spend them on services for homeless students.
Education professionals and advocacy organizations have voiced concerns that the absence of targeted funding could lead to fewer resources reaching this vulnerable population. They also highlight that identifying homeless students—a key step in providing them with services and protections—could become more difficult without dedicated support.
According to recent federal data, an estimated 1.4 million pre-K through 12th-grade students experienced homelessness during the 2022-2023 school year.
The proposal still requires Congressional approval, leaving the future of the McKinney-Vento program uncertain. In the meantime, educators and advocates emphasize the importance of maintaining focused efforts to ensure that students experiencing homelessness continue to receive the support they need to succeed academically.
