FY25 Funding Deadline Approaching | Legislative Update

This week, Congress remained on its annual August recess while federal agencies announced new funding opportunities and sought input on improvements to federal student aid application forms.

FY25 Funding Deadline Approaching

This week, both the House and the Senate remained on August recess. Congress is set to return in early September and 2025 federal fiscal year (FY25) funding legislation is widely expected to be prioritized ahead of a key upcoming deadline next month. With FY25 set to begin on October 1 of this year, lawmakers must act before this date to avert a lapse in federal funding for critical programs and initiatives like the Carl D. Perkins Career and Technical Education Act (Perkins V). As a reminder, the most recent FY25 funding proposals from both the House and the Senate remain considerably far apart. However, both chambers’ FY25 measures have proposed increased investments in Perkins V’s basic state grant program. Advance CTE has formally responded to both the House and Senate proposals. 

Due to the significant remaining differences between both of these proposals, however, Advance CTE expects that lawmakers are likely to take up and pass a short-term extension of federal funding, known as a continuing resolution (CR), which will extend funding for a specified period of time ahead of this impending deadline. Much of the current FY25 discussion now centers on the content and length of this likely CR as the November elections approach. This week, a group of conservative lawmakers in the House issued a letter to Republican leadership demanding that any potential CR last through at least the early part of 2025. However, lawmakers elsewhere believe that is critical to complete work on FY25 funding legislation before the end of the current Congress. As these efforts and more take shape, Advance CTE will continue to advocate for a robust investment in CTE made possible by Perkins V’s state grant program and other critical funding streams in support of education and workforce development.  

Commerce Announces Notice of Funding Opportunity

Late last month, the U.S. Department of Commerce’s Economic Development Administration (EDA) announced a new funding opportunity that aims to build on the “Good Jobs Challenge” first created as part of the American Rescue Plan. The Notice of Funding Opportunity (NOFO) would provide competitive grant funding to support sector partnerships made up of a range of stakeholders, including employers, labor unions, and institutions of higher education. Eligible applicants could include state and local governmental entities, postsecondary institutions, and other relevant stakeholders. EDA envisions awarding $25 million in funding, with grants ranging from $1 million to $8 million each, that focus on placing workers in in-demand jobs. The NOFO indicates that priority will be given to applications that prioritize worker representation within a sector partnership and initiatives that aim to support workers at all skill levels. Applications for this funding are due September 27th, 2024. 

Department of Education Requests Information on FAFSA 2025-26 to Support Success

The U.S. Department of Education (ED) published a notice this week requesting information about the 2025-26 Free Application for Federal Student Aid (FAFSA) form and ways to support the successful completion and submission of this form. The request specifically asks for feedback from a host of stakeholders– including students, financial aid administrators, counselors, postsecondary institutions, state and local entities, and others– for ways to improve the “help text” of the form and supplementary materials, like tip sheets for students or other contributors. It also seeks recommendations on ways to support the processing and packaging of student aid. The announcement sets the due date for feedback as September 13, 2024.

Rob Young, Communications & Advocacy Associate

Steve Voytek, Policy Advisor 

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