Recent changes in federal education policy have dramatically impacted investments in education programs nationwide. Severe cuts at the Department of Education, Executive Orders targeting Diversity, Equity, and Inclusion, policies designed to shift control to the states, and other changes contributed to a turbulent year and a half for organizations working in education.
Much like what we observed regarding grantmaking for Human Services organizations over the past 18 months, Education nonprofits likewise faced dramatic shifts in the allowable use of government funds, increased competition for private funding, and substantial uncertainty.
In this article, we review key observations about grantseeking in the Education space, and strategies that Elevate’s nonprofit partners are implementing in order to navigate these changes.
What changed in the last 18 months?
Nonprofits working in the education space faced tremendous uncertainty over the past year. Noteworthy changes include:
1. Public funding contracted
In 2025, the president issued an unprecedented number of Executive Orders impacting the Department of Education, slashed the number of staff in the department in half, and sought to freeze or entirely eliminate funds from long-standing education programs. While some of the more dramatic changes were not permanent, the loss of reliable public funding had a notable impact on education organizations in the nonprofit sector.
For the nearly 5 decades since the U.S. Department of Education was founded, funds originating at the federal level distributed as pass-through grants from states have represented a significant proportion of the resources available to schools and to local, nonprofit education programs nationwide.
Because of the funding freezes, institutions providing direct education programming saw a sudden and serious reduction in funding last year. For example, In July 2025, New York Senators and Representatives signed a letter noting that previously-appropriated funds representing 10% of federal K-12 funding for the State of New York were being withheld. The six federal grant programs impacted represent some of the largest federal sources of education funding for nonprofits, which implement the adult literacy education, teacher workforce development, afterschool programming, tutoring and other educational supports previously supported under these programs.
Later in the fall, Congress ultimately rejected President Trump’s additional $7 billion in proposed cuts to the same longstanding education programs, but they did little to prevent the administration from moving K-12 grant programs to other agencies and slashing staff.
More recently, reports suggest that the administration is once again not releasing funds on the timeline recommended by Congress for the same programs that they previously tried to eliminate.
2. Private grantmaking was stable
Private foundations that support education programming remained a stable source of funding for their established partners in 2025.
However, private grantmakers on the whole did not increase funding for education programs last year. We saw very few grantmakers enter the education space for the first time. And the number of grantmakers that opted to increase their support for education last year was limited.
However, education funders are projecting increased investment in education policy change, likely in response to the current federal policy environment. A recent survey by Grantmakers for Education found that, “just over half of respondents reported supporting narrative change, up markedly from 2023. This suggests greater emphasis on exploring new strategies for moving public opinion, which will ultimately factor into public policy considerations.”
3. Corporate support changed and will likely continue to decline
One of the federal policy changes with the biggest impact on education was the widespread crackdown on Diversity, Equity, and Inclusion (DEI). Almost immediately after the new administration took office anti-DEI executive orders were issued.
Not long after, we saw corporations scramble to adjust their own policies with respect to DEI – whether to align themselves with the administration or to remain under the radar.
Corporate funding likewise changed. Questions regarding grantees’ leadership demographics, student populations served, and DEI commitments disappeared from funding applications practically overnight, leaving nonprofits to question how these aspects of their work would weigh into funding decisions.
Additionally, concerns about the impact of tariffs and the recently-enacted 1% floor on corporate charitable contributions may slow corporate giving. Specifically, corporations anticipating uncertain profits due to tariffs have communicated that they are postponing grant cycles or distributing fewer resources. And, most corporations currently give 1.1% of corporate pre-tax profits. If they are concerned that they won’t achieve the new 1% floor, they may have little incentive to give at all.
These variables combined suggest that corporate grants are not likely to be a robust source of support for education nonprofits hoping to replace lost public funding or reinforce a budget that is tighter than before.
How are Education Organizations Responding?
Since early 2025, organizations providing education programming have been forced to navigate substantial and continued uncertainty about the future of their public funding while facing limited opportunities to increase revenue from private funding sources.
Elevate’s partners in the education space have managed to weather the changes over the past year in a few key ways.
Drawing down existing grants in a timely and organized manner.
Much of the public funding issued to schools and education organizations comes in the form of reimbursable grants, meaning that the grantee must cover their own expenses before submitting documentation for reimbursement.
While documentation and tracking of allowable uses of public dollars has always been critical, those organizations that were the most successful in navigating the changes to their government funding in 2025 focused on thoughtfully and strategically drawing down grant funds as soon as possible, in anticipation of future program cuts or delayed funding.
Adapting to Changing DEI Terminology
Elevate staff and clients are routinely updating grant request language to keep private funders informed about how their work is impacted by changes at the local, state, and federal levels. Specifically, most organizations have reduced or eliminated an explicit focus on DEI work or terminology to remain compliant with all public funds and align with private and corporate funders’ revised application requirements.
Interestingly, education grantmakers are doing the same. Survey respondents for the Trends in Education Philanthropy report shared, for example:
- “We still say equity but may include words like opportunity, access, or belonging depending on who we are speaking with”;
- “Instead of using the terms diversity, equity, and inclusion, we use terms like democracy, egalitarian, and justice”; and
- “We use fairness, which resonates positively with everyone.”
Across the board, organizations persist in finding ways to close educational achievement and access gaps in partnership with philanthropy.
Monitoring Public Policy Changes
Policy advocacy has protected programs and funding mechanisms that are critical to delivering high-quality educational support at scale across the country.
A key policy win has been the preservation of Head Start and Early Head Start programs, which are irreplaceable without federal funding. Significant congressional oversight, combined with advocacy from industry leaders like the National Head Start Association, Zero to Three, and Save the Children helped preserve these programs in the FY26 budget. Now, advocates are looking ahead to 2027 – the current funding proposal from the administration proposes flat funding next year, which means no cost of living increases or investments in program quality.
Policy advocacy to preserve public funding goes hand in hand with raising private funds to comprehensively support educational programming. As a country, most of us still believe a significant portion of education funding should come from public sources, which means institutional and individual donors expect to supplement, but not fully fund, educational initiatives.
Exploring Creative Solutions to Gaps in Community Services
As with our social service partners, organizations working in the education space actually explored increasing services, despite the difficult funding landscape, in response to clear community needs. As afterschool programs quietly closed and education support services became unavailable, organizations serving children and families looked for ways they could step into the gap.
If you’re interested in more analysis from Elevate on the trends we are seeing in grantseeking among our nonprofit partners, check out these other articles from our blog:
And if you’re interested in exploring how Elevate can support your organization to rise to the current challenges across the sector and maximize your grant success, we’d love to hear from you! Contact us today to explore a partnership with Elevate.
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