FISCAL MANAGEMENT ADVISORY 26-01

Date: February 2, 2026

To: County and District Superintendents, Charter School Administrators

From:  Abel Guillén, Deputy Superintendent, Operations and Administration Branch

Subject:  Impacts of a Government Shutdown

The purpose of this memorandum is to outline the impact of the federal government shutdown on programs and operations of the U.S. Department of Education (ED) and other federal agencies that normally provide support to California’s education system.

Federal Government Shutdown: What to Anticipate

• Federal Deadline: At the end of January 30, 2026, funding for agencies without a full-year appropriations bills expired without the passage of the minibus funding package or a continuing resolution (CR) for the federal fiscal year (FY) 2026 that began October 1, 2025.
• Shutdown Impacts: As of January 31, the six remaining appropriations bills remain unsigned without enacting a CR. Without a budget or CR, federal agencies affected cannot maintain their operations and program continuity, which will cause some lapses in government functions. During the “partial shutdown,” the federal government’s operational capacity is significantly reduced, but not all functions cease.
• Essential Operations Continue: Federal programs and activities funded through mandatory allocations or supported by the previous FY’s appropriations persist during a shutdown.
• Education Funding: Transitional kindergarten through grade twelve (TK–12) education funding, other than nutrition (explained below), operates on either a forward-funded or an advance-funded model. Depending on the program, some or all of the program’s funding is appropriated on a forward-funded basis, which means that the funding becomes available for drawdown by the state educational agencies and local educational agencies (SEAs and LEAs) beginning on July 1 of the fiscal year for which it was appropriated (for instance, on July 1, 2025, for FY 2025 funds). SEAs and LEAs will be able to continue using those funds appropriated in the prior federal fiscal year, as well as carry-over funds from previous years, while the federal government is shut down.

Elementary and Secondary Education Act (ESEA) Titles I-A and II-A, Individuals with Disabilities Education Act (IDEA) Part B, and Career Technical Education (CTE) programs are appropriated on an advance-funded basis, meaning the funding does not become available until October 1 of the following fiscal year. However, it is possible that competitive grant programs may encounter delays due to staffing constraints that affect application reviews and award processes.

• Child Nutrition Programs: Although Child Nutrition Programs are not normally funded in advance, on November 12, 2025, the U.S. Department of Agriculture was provided a full-year appropriation. Therefore, Child Nutrition Programs are not impacted by the “partial shutdown.” These programs encompass school lunch, breakfast, and snack programs.

The CDE is maintaining vigilant oversight of the situation as CDE’s Federal Policy Liaison works to obtain the latest information. Although we do not anticipate that a federal partial shutdown will immediately or significantly disrupt the operations of the CDE and LEAs, we aim to ensure that the field remains informed about the situation.