House Republicans unveiled a federal budget proposal that would cut multiple streams of education funding for fiscal 2027 and add restrictions tied to transgender participation in women’s sports. The proposal would reduce Title I formula dollars for low-income students by $1.6 billion (9%) and eliminate funding for certain teacher professional development and English-learner services. It also includes a withholding mechanism: federal funds could be jeopardized for K-12 schools and colleges that allow transgender girls to participate in women’s sports or that “withhold or conceal” information about students’ gender identity from parents. Implementation would likely trigger conflicts with state laws—California is cited as one likely source of court battles. The proposal arrives as Capitol Hill faces a negotiations window over how to extend or replace current fiscal 2026 levels by Sept. 30. For higher education institutions, the near-term risk is compliance uncertainty around athletics policy, student identity practices, and how federal requirements would interact with state protections. The package’s mixed approach—preserving some grants while cutting others—means campuses will need to model budget impacts alongside legal exposure, particularly for institutions that rely heavily on federal aid streams and Title I-adjacent programming.