Lena Heier
Higher Education Senior Research Analyst, Lena Heier supports Directors and Managing Directors by identifying and researching federal and foundation funding opportunities for clients. She also assists with various other funding research and coordination needs of the Higher Education Practice.
Chris Mather
Chris serves as Director of Business Development for McAllister & Quinn’s Higher Education practice. Chris partners closely with senior leadership to drive the practice’s strategic growth through targeted business development and marketing initiatives.
On February 3, 2026, the President signed into law H.R. 7148, the “Consolidated Appropriations Act, 2026,” which cemented appropriations for the fiscal year ending September 30, 2026. After a long road to final passage, including the longest government shutdown in history, the Departments of Labor, Health and Human Services (HHS), Education, Commerce, Justice, Economic Development Administration (EDA), National Science Foundation (NSF), and other agencies and departments that support higher education are funded through the end of September.
Overall, federal funded higher Education programs important to institutions of higher education remain in place and are funded at similar levels to FY2024[1] reflecting limited support for many of the reductions proposed in the FY26 President’s Budget released in May 2025.
McAllister and Quinn’s Higher Education Practice analyzed the key programs, funding changes, and accompanying language and summarized highlights relevant to institutions of higher education here.
[1] Congress passed a year-long Continuing Resolution that set FY2025 funding levels at FY2024 funding levels.
Key Highlights: Federal Grant Programs to Watch in 2026
Department of Education (ED) TRIO, GEAR UP, and Federal Supplemental Educational Opportunity (FSEOG) grants were level funded. This includes $1 billion in funding for TRIO programs, signaling Congress’ continued support for these critical programs.
Congress directed ED to conduct new Child Care Access Means Parents in School (CCAMPIS) and Open Textbooks Pilot program competitions in FY26. These programs missed their expected competition cycle in 2025.
ED is required to spend money on Title III and/or Title V programs. The final bill allocates $493 million total for all programs under the Title III Part A and Title V umbrellas, including $53.8 million specifically for Minority-Serving Institutions and Historically Black Colleges & Universities. This includes crucial programs such as the Strengthening Institution Program (SIP) and Developing Hispanic-Serving Institutions (DHSI) Program.
Congress increased funding for the Substance Abuse and Mental Health Services Administration (SAMHSA) Garrett Lee Smith Campus Suicide Prevention Program by 24%. Total funding in FY26 for this program is about $10.5 million, up $2 million from the previous year’s funding levels.
Department of Justice (DOJ) Campus Program level funded. Congress included specific language and funding levels in the final bill signaling continued support for the DOJ Office on Violence Against Women (OVW) Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence, and Stalking on Campus Program (Campus Program) and Addressing Domestic Violence, Dating Violence, Sexual Assault, and Stalking at Hispanic Serving Institutions (HSIs), Historically Black Colleges and Universities (HBCUs), and Tribal Colleges and Universities (TCUs) Initiative.
The Economic Development Administration (EDA) Economic Adjustment Assistance (EAA) program saw a 20% increase. While the EDA saw a 0.43% decrease in total funding for FY26, the EAA program received an increase of $6.5 million over previous funding levels, providing a total of $39.5 million in funding for the program.
FY26 Congressional Directives Supporting Higher Education
Department of Education Receives Slight Funding Increase in Face of Calls for Elimination
Congress provided a slight funding increase for the Department of Education (ED) in FY26, signaling little alignment with recent executive actions that had proposed significant structural changes. Lawmakers also declined to adopt the Department’s proposal to shift key programs to other federal agencies and instead directed ED to provide biweekly briefings to the committee on the implementation of existing agreements.
Highly popular ED programs that have been under threat from the Trump administration over the last year also saw renewed congressional support. Notably, as mentioned above, every TRIO program was allocated level funding, a huge win for colleges & universities looking to continue or stand up these key student support programs.
Congress also broke from past years and included explicit language requiring the Department of Education to disburse award funding through the Title III and/or Title V programs, ensuring funding can’t be moved or transferred to programs outside of Title III and/or Title V. Following a difficult year for these programs, this change is encouraging and brings renewed energy for coming year.
National Science Foundation Funding Demonstrates Clear Support for Science, Research and Development, and STEM Education
Congress continues to champion the National Science Foundation (NSF). Funding for the Directorate for STEM Education (EDU) was made available through the end of fiscal year 2027, a full fiscal year longer than is typical. Some of this funding was for programs that have been archived or paused by the NSF, such as ADVANCE: Organizational Change for Gender Equity in STEM Academic Professions (ADVANCE), Louis Stokes Alliances for Minority Participation (LSAMP), and Advancing Informal STEM Learning (AISL). It is unclear how the NSF will respond to this directive.
Congress commended the NSF for their work in the field of Artificial Intelligence and encouraged more investments in this area, including naming and encouraging the expansion of the CyberAICorps: Scholarships for Service (SFS) program. The agency seemingly responded in short order, releasing a new solicitation for the program within days of the bills becoming law.
Indirect Cost Rates Remain Stable
Following a turbulent year for research administration, Congress is requiring the science-based agencies (Department of Commerce (DOC), National Institutes of Health (NIH), and National Science Foundation (NSF)) to maintain all FY24 indirect cost rates, providing stability for college & university budgets for the next fiscal year. In doing so, Congress acknowledged the Financial Accountability in Research (FAIR) model proposed by the Joint Associations Group on Indirect Costs (JAG), noting it merits further consideration.
2026 Federal Outlook
Agency | Final FY25 | Final FY26 | % Change |
ED | $78.7 billion | $78.7 billion | 0.07% increase |
HRSA | $9.17 billion | $8.9 billion | 1% increase |
NEH | $207 million | $207 million | Level funding |
NEA | $207 million | $207 million | Level funding |
NIH | $46.76 billion | $47 billion | 0.3% increase |
NSF | $9.06 billion | $8.75 billion | 3% decrease |
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McAllister & Quinn is committed to helping colleges and universities turn strategic intelligence into action, ensuring they are prepared to meet today’s challenges and respond with agility. Our team closely monitors legislative actions, executive orders, and regulatory updates so that institutional leaders are equipped with timely insights to inform decision-making. If you are interested in learning more about our strategic intelligence and upcoming grant opportunities in 2026, please contact us today for a complimentary consultation.