WASHINGTON, D.C. — The U.S. Department of Education rolled out a rapid-fire set of initiatives in mid-December that officials say are meant to reshape how students connect to jobs, how schools teach civics, how states fight literacy gaps, and how families access federal financial aid.
On Monday, the department announced the launch of the Connecting Talent to Opportunity Challenge, a national competition aimed at accelerating the development of statewide “Talent Marketplaces” that link learners, earners, and employers through skills-based tools and digital records. Beginning in January 2026, the department is inviting governors to apply—working with career and technical education, adult education, and workforce partners—to build or scale systems that include a credential registry, Learning and Employment Records, and skills-based job description generators. Up to 10 semifinalists and finalists will receive technical assistance and be eligible for a share of a $15 million prize pool, the department said.
Also on Monday, the department unveiled a new national scholarship contest billed as a high-stakes civics competition: the Presidential 1776 Award. The program will test high school students’ knowledge of the American founding in three rounds, culminating in a national final in Washington, D.C., in June 2026. Three winners will receive scholarships totaling $250,000. The multiple-choice and verbal examinations will be developed and judged independently by the James Madison Memorial Fellowship Foundation, according to the department.
Round One, scheduled for February 22–28, 2026, centers on what the department calls “The Impossible Civics Test,” an online, timed, electronically proctored exam in which students have 90 minutes to answer up to 4,000 randomized questions across three escalating difficulty sections. Four finalists from each state advance. In May, state finalists compete in five regional verbal semifinals, with the top four students in each region moving to the national championship at the end of June.
The department tied the civics competition to broader America 250 programming, including the History Rocks! Trail to Independence tour. On Monday, Education Secretary Linda McMahon visited Maple Elementary in Cambridge, Maryland, for a stop on that tour featuring hands-on history activities. Kellyanne Conway, a member of the U.S. Semiquincentennial Commission, also participated, the department said.
In a third Monday announcement, the department said it is awarding $256 million in Education Innovation and Research grants aimed at improving literacy nationwide. The department said the funds align with three McMahon priorities: expanding evidence-based literacy instruction, expanding education choice, and shifting authority back to states. Ten of the 24 new awards went to state education agencies—described by the department as the largest number of state-led literacy awards in any EIR competition. More than 65% of the awards, totaling over $167 million, will support projects in rural America, the department said, well above the program’s 25% rural funding requirement. Eighteen of the 24 grantees are new to the program.
The department followed on Thursday with a separate update on the federal student aid pipeline, announcing that more than 5 million 2026–27 FAFSA forms had been submitted—an increase it described as nearly 150% compared with the same point last year. The department said the 2026–27 FAFSA opened earlier than any prior cycle and cited internal satisfaction metrics showing more than 96% of respondents reporting satisfaction and 91% saying the form took a reasonable amount of time to complete.
Finally, on Friday, McMahon endorsed a Justice Department Office of Legal Counsel opinion concluding that race-based quotas and preferences used to determine eligibility for certain Minority Serving Institution programs are unconstitutional. The department said it is assessing the full impact of the opinion, which was issued December 2, and noted it had already moved earlier this year to reprogram discretionary appropriations from affected programs while disbursing about $132 million in mandatory funding that could not be redirected. The department said it does not intend to claw back previously obligated funds from prior fiscal years as it winds down the programs.
Taken together, the announcements sketch an Education Department agenda focused on workforce pipelines and credentialing, competitive civic learning tied to America’s 250th anniversary, large-scale literacy investments with a heavy rural footprint, faster FAFSA throughput, and a legal pivot on federal funding programs that rely on race-based eligibility.
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