New Federal Grants Aim to Reshape Student Testing Systems

School children
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WASHINGTON, D.C. — States will have access to new federal funding to redesign how student performance is measured, as part of a joint education and workforce initiative aimed at improving accountability and academic outcomes.

What This Means for You

  • States can apply for funding to redesign student testing systems
  • New assessments may better track student progress and readiness
  • Federal agencies are coordinating education and workforce goals

The U.S. Departments of Education and Labor announced the Fiscal Year 2026 competition for the Competitive Grants for State Assessments program, which funds efforts to improve how states measure student achievement.

State assessments are standardized systems used to evaluate student performance and school effectiveness, often tied to accountability requirements and federal funding.

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Focus on New Testing Approaches

The grant program encourages states to develop more comprehensive assessment systems, including tools that track progress throughout the school year rather than relying solely on end-of-year exams.

These include formative assessments, which monitor learning in real time; diagnostic assessments, which identify specific learning gaps; and interim assessments, which measure progress between major testing periods.

Officials said aligning these tools with existing statewide exams could provide a clearer picture of student performance.

Federal-State Coordination

The program will be administered through a partnership between the Department of Education and the Department of Labor, formalized through an interagency agreement.

Under this arrangement, the Labor Department will assist with managing funds, providing technical support, and linking education outcomes to workforce readiness.

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Officials said the collaboration is intended to better align classroom learning with job skills needed in the broader economy.

Broader Policy Context

The initiative follows a recent federal convening involving representatives from 43 states and three territories, where education leaders discussed best practices for assessment and accountability systems.

Federal officials said the effort reflects a broader policy direction aimed at giving states more control over education systems while maintaining accountability for results.

Next Steps

States can apply for funding through the federal grants portal at https://www.grants.gov, where application details and eligibility requirements are available.

Federal agencies said additional guidance will be provided to participating states as the program moves forward.

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