FY 2023 AGENCY FINANCIAL REPORT 18 U.S. DEPARTMENT OF EDUCATION

Management’s Discussion and Analysis (Unaudited)

The Department’s Approach to 

Performance

1 GPRA Modernization Act of 2010 amends the Government Performance and Results Act of 1993 (GPRA).

2 The FY 2023 Statement of Net Cost and related notes align with the FY 2022–26 Strategic Plan.

Performance Management Framework

In accordance with the GPRA Modernization Act of 20101, the Department’s framework 

for performance management begins with the Strategic Plan, which serves as the 

foundation for establishing and implementing priorities, highlighting performance goals 

and objectives, and developing performance indicators to gauge progress and outcomes. 

Progress toward the Department’s strategic goals and its two-year Agency Priority Goals 

(APGs) are measured using data-driven review and analysis. Additional information 

on performance management is available in the Annual Performance Plans and Annual 

Performance Reports.

2

The FY 2022–26 Strategic Plan is comprised of five Strategic Goals and three FY 2022 

and FY 2023 APGs. The Strategic Plan aims to address administration priorities, such 

as recovering from the coronavirus disease 2019 (COVID-19) pandemic; ensuring 

high-quality, equitable secondary and postsecondary education; and providing diverse 

learning environments for all students, especially underserved ones. Each supporting 

strategic objective has corresponding performance indicators to assess the Department’s 

progress on achieving the Strategic Goals and objectives. For additional information 

about Performance Management at the Department, visit ED Strategic Plans and Annual 

Reports or email PIO@ed.gov.

FY 2022–26 Strategic Goals and Strategic Objectives

Strategic Goal 1: Promote equity in student access to educational resources, opportunities, and 

inclusive environments.

Strategic Objective 1.1 Prioritize the equitable and adequate distribution of resources to communities of 

concentrated poverty, in an effort to provide underserved students with highquality educational opportunities.

Strategic Objective 1.2 Ensure all students have access to well-rounded, rigorous, engaging, and diverse 

learning opportunities and environments to support their success in school.

Strategic Objective 1.3 Support states, school districts, and institutions of higher education to promote 

and protect students’ nondiscriminatory and equal access to education, as 

provided by Federal civil rights laws.

Strategic Objective 1.4 Promote greater access and supports for youth and adults to engage in learning, 

succeed in postsecondary education, and increase their employability in highdemand occupations.

Strategic Goal 1 focuses on outcomes related to improving and promoting educational 

equities for all students through adequate resources, opportunities, and supports. In 

FY 2023, $54.1 billion was appropriated to the Department in support of Strategic 

Goal 1. 

To thrive academically and be globally competitive, students require access to a broad and 

challenging education that provides equal opportunities to build deep knowledge and 

useful life skills across many disciplines. However, access to a comprehensive and rigorous 
FY 2023 AGENCY FINANCIAL REPORT 19 U.S. DEPARTMENT OF EDUCATION

education is not equitable across all students and communities. Research shows that 

when students have access to rich learning experiences across the spectrum of education, 

they are more likely to be engaged in school, get better grades, attend school more, and 

graduate on time.

In support of Strategic Goal 1, the Department continued to work with state and local 

leaders to expand access to high-quality early learning, rigorous science, technology, 

engineering, and mathematics (STEM) education and arts programming; protect 

students’ civil rights in schools; support students’ financial literacy; and emphasize the 

importance of focusing teaching and learning on the instructional core. In FY 2023, 

the Department hosted “YOU Belong in STEM” National Coordinating Conference 

in Washington, D.C. as a key initiative. The Raise the Bar: STEM Excellence for All 

Students initiative is designed to strengthen STEM education nationwide. This new 

initiative helps implement and scale equitable, high-quality STEM education for all 

students from PreK to higher education—regardless of background—to ensure their 21st 

century career readiness and global competitiveness.

The devastating and adverse impacts of the COVID-19 pandemic exacerbated previously 

documented gaps in educational opportunity. Supporting urgent and wise investing has 

been a major focus of the Office of Elementary and Secondary Education (OESE) State 

and Grantee Relations team’s work on the COVID-relief programs. Additionally, ensuring 

compliance with major fiscal equity provisions further supports student recovery from 

the impacts of the pandemic. In FY 2023, OESE monitored states’ compliance with 

the Maintenance of Effort and Maintenance of Equity provisions of the COVID-relief 

acts. The Department is committed to bring student learning beyond pre-pandemic 

levels and to help close underlying opportunity and achievement gaps by ensuring states 

and districts deploy federal pandemic relief funds in evidence-based ways, promoting 

promising practices, and providing technical assistance and opportunities for new or 

continued grant funding.

Strategic Goal 2: Support a diverse and talented educator workforce and professional growth to 

strengthen student learning.

Strategic Objective 2.1 Strengthen and diversify the educator pipeline and workforce.

Strategic Objective 2.2 Identify and promote evidence-based practices or strategies that support diverse 

districts (including rural districts) with high rates of poverty in recruiting, selecting, 

preparing, and retaining well-qualified (including in-field fully certified) and 

effective teachers, principals, paraprofessionals, and specialized instructional 

support personnel.

Strategic Objective 2.3 Support the professional growth, retention, and advancement of talented, 

experienced educators and other school personnel and their capacity to meet the 

social, emotional, mental health, and academic needs of underserved students.

Strategic Goal 2 focuses on outcomes related to supporting and increasing diversity and 

talent in the educator workforce and professional growth. Every student should have access to 

outstanding, well-prepared, well-supported educators who reflect the diversity of the students 

they serve. In FY 2023, $20.4 billion was appropriated to the Department in support of 

Strategic Goal 2. 

Due to the pandemic, from February to May 2020, the economy lost an estimated 

730,000 local public education jobs. As of March 2023, public education recovered 

600,000 of those jobs (82 percent). However, there are still 130,000 fewer people working 

in local public education than before the pandemic, and schools were already experiencing 

shortages before the pandemic began, with disproportionate impacts on students of 

Management’s Discussion and Analysis (Unaudited)
FY 2023 AGENCY FINANCIAL REPORT 20 U.S. DEPARTMENT OF EDUCATION

Management’s Discussion and Analysis (Unaudited)

color, students with disabilities, and English learners. The Department is committed to 

working with state and local leaders to elevate the teaching profession by investing in 

and scaling up high-quality and affordable pathways to teaching. The Department also is 

supporting efforts to better prepare, develop, and retain talented and diverse educators in 

America’s schools. 

In support of Strategic Goal 2, the Department launched a partnership with Department of 

Labor to expand the number of registered apprenticeship programs for teachers. The registered 

apprenticeship programs allow teachers to gain robust experience in the classroom and make 

becoming a teacher more affordable. States with Teacher Registered Apprenticeship Programs 

have increased from 2 to 25 since the launch, and enrollees in these programs total more 

than 1,000.

In FY 2023, the Department announced first-ever awards, totaling over $15 million, for the 

Augustus F. Hawkins Centers of Excellence Program (Hawkins Program) grants to increase 

high-quality teacher preparation programs for teachers of color, strengthen the diversity of our 

teacher pipeline, and address teacher shortages. The Hawkins Program, named for Augustus F. 

Hawkins, the first Black politician elected to the U.S. House of Representatives from west of 

the Mississippi River, supports comprehensive, high-quality teacher preparation programs at 

Historically Black Colleges and Universities, Tribally Controlled Colleges and Universities, and 

Minority Serving Institutions.

Strategic Goal 3: Meet students’ social, emotional, and academic needs.

Strategic Objective 3.1 Support the development and implementation of multitiered systems of supports 

to increase students’ engagement; social, emotional, and mental health; wellbeing; and academic success.

Strategic Objective 3.2 Foster supportive, inclusive, and identity-safe learning environments and ensure 

the individual needs of underserved students are met through appropriately 

designed instruction, evidence-based practices, and related supports 

and services.

Strategic Objective 3.3 Strengthen learning environments, support professional development, 

and improve educator credentialing for emergent bilingual students and 

multilingual learners.

Strategic Goal 3 focuses on meeting students’ social, emotional, and academic needs. 

Learning and development across a student’s life span are influenced by several 

interrelated factors, including the individual’s social, emotional, academic, and career 

development. In FY 2023, $26.0 billion was appropriated to the Department in support 

of Strategic Goal 3. 

When students feel connected to school, their mental health and academic performance 

improve; however, the consequences of the pandemic—social isolation, illness, and family 

hardship among them—have led to decreased feelings of connectedness for students. For 

example, approximately 1 in 3 high school students have experienced poor mental health 

amid the pandemic, and rates of poor mental health have been higher for historically 

marginalized groups of students. For students to thrive in school, they need a strong 

foundation of overall wellness. The Department is committed to working with parents, 

families, educators, and others to meet students’ mental health needs.

In support of Strategic Goal 3, the Department announced awards of more than 

$188 million across 170 grantees in over 30 states to increase access to school-based 

mental health services and to strengthen the pipeline of mental health professionals in 

high-needs districts. With funding provided by the Bipartisan Safer Communities Act

(BSCA), these investments help advance the President’s Mental Health Strategy, which 
FY 2023 AGENCY FINANCIAL REPORT 21 U.S. DEPARTMENT OF EDUCATION

directly implements his Unity Agenda priority to tackle the mental health crisis in our 

school communities. These grants enable communities to hire approximately 5,400 

school-based mental health professionals and train an estimated 5,500 more to build a 

diverse pipeline of mental health providers in schools.

To support multilingualism, in FY 2023, the Office of English Language Acquisition 

announced awards of nearly $120 million over five years under the National Professional 

Development Program (NPD) to support educators of English learner students. The 

NPD program provides grants to eligible Institutions of Higher Education and public or 

private entities with relevant experience and capacity, in consortia with states or districts, 

to implement professional development activities that will improve instruction for 

English Learners.

Strategic Goal 4: Increase postsecondary value by focusing on equity-conscious strategies to 

address access to high-quality institutions, affordability, completion, post-enrollment success, and 

support for inclusive institutions.

Strategic Objective 4.1 Support educational institutions and state systems in efforts to raise academic 

quality and college completion for all students, especially for underserved 

students, such as first-generation students, students from low-income 

backgrounds, students of color, and students with disabilities.

Strategic Objective 4.2 Improve the administration of student aid programs to help eligible students 

receive aid; support borrowers in successfully repaying their loans, claiming 

loan forgiveness benefits, and mitigating student loan default; and hold 

contractors accountable.

Strategic Objective 4.3 Increase equitable access to secondary and postsecondary programs that 

have clear on-ramps to both high-quality jobs and additional high-quality 

postsecondary educational opportunities.

Strategic Objective 4.4 Improve the alignment across secondary, postsecondary, and career and 

technical education programs, including through transparent and effective 

transition processes, inclusive pathways, and clear credentialing requirements.

Strategic Goal 4 focuses on increasing the value of postsecondary education by addressing 

access, affordability, and degree and credential completion. This includes aligning our 

education and workforce systems to create college and career pathways that lead to 

industry-recognized credentials and opportunities to secure in-demand jobs. In FY 2023, 

$104.6 billion was appropriated to support Goal 4.

In support of Goal 4, the Department provided over $30 million to colleges and 

universities from five competitive grant programs of the Fund for the Improvement of 

Postsecondary Education (FIPSE), which aims to improve higher education opportunities 

and outcomes for students from underrepresented communities. The five grant programs 

that target critical needs in our higher education system include: Postsecondary 

Student Success Program, Basic Needs for Postsecondary Students Program, Open 

Textbooks Program, Centers of Excellence for Veteran Student Success Program, and the 

Transitioning Gang-Involved Youth to Higher Education Program. 

The Department has made a concerted effort to fix persistent problems in the student loan 

forgiveness and discharge process through regulatory changes and making investments in 

system and customer service upgrades. As of the end of FY 2023, 730,000 student loan 

borrowers were approved for Public Service Loan Forgiveness, compared to only 7,000 

applications that had been approved in total prior to 2021. As of July 2023, more than 

3.4 million borrowers qualified for automatic discharges, Public Service Loan Forgiveness 

benefits, total and permanent disability discharges, and closed school court settlements.

Management’s Discussion and Analysis (Unaudited)
FY 2023 AGENCY FINANCIAL REPORT 22 U.S. DEPARTMENT OF EDUCATION

Management’s Discussion and Analysis (Unaudited)

The Department is committed to supporting efforts to dramatically increase the number 

of Americans who possess postsecondary industry-recognized credentials. Education 

programs that incorporate the opportunity to earn an industry-sought credential can give 

students a successful onramp to the workforce when they graduate from high school. 

The Department aims to expand access to work-based learning programs and initiatives 

by helping states and districts identify workforce credentials that have value in the 

labor market, expand opportunities for students to earn these credentials, and eliminate 

barriers to credential attainment. In FY 2023, $1.46 billion was appropriated for Career, 

Technical, and Adult Education.

Strategic Goal 5: Enhance the Department’s internal capacity to optimize the delivery of its mission.

Strategic Objective 5.1 Manage information technology as a strategic resource and driver to 

promote the advancement of the missions executed by the Department’s 

21st-century workforce.

Strategic Objective 5.2 Strengthen agency-wide data governance and build capacity to improve 

data access, data management, and enterprise data analytics in support of 

agency goals. 

Strategic Objective 5.3 Recruit, retain, and develop the workforce needed to meet the Department’s 

mission now and into the future.

Strategic Objective 5.4 Deliver mission outcomes and value for taxpayers through efficient 

acquisition management and proactive industry partnerships while promoting 

small businesses.

Strategic Goal 5 is focused on continuously improving agency operations as the 

Department manages, engages, and empowers the workforce; purchases products and 

services; enhances and secures information technology resources; and leverages data to 

support evidence-based decision-making. In FY 2023, $72 million was appropriated to 

support Goal 5. 

Information technology security was identified as a top management challenge in 2023, 

and the Department has made great strides in strengthening cybersecurity, reliability, 

and privacy protections. In 2023, the Department received an overall Federal Information 

Security Modernization Act of 2014 (FISMA) assessment of “Effective,” or a Level 4 

Cybersecurity Maturity Level. This score was the highest achieved by the Department 

since the scoring metrics were established in 2014. 

The Department was the first cabinet-level Department to receive funding from the 

Technology Modernization Fund (TMF) and successfully adopted a secure access service 

edge (SASE) solution in support of advancing its Zero Trust Architecture (ZTA) capabilities 

in support of federal requirements as outlined in OMB Memorandum M-22-09.

In April 2023, the Office of Chief Data Officer staff received the Federal 2023 Chief 

Data Officers Council Award for Distinguished Achievement for improving data skills 

and culture at the Department and pioneering work in the federal space through the 

advancements of the Data Strategy Goal 2: Building Human Capacity to Leverage Data.

Strategic Goal 5 also prioritizes reducing potential procurement barriers and increasing 

procurement opportunities for small, underserved, and disadvantaged businesses. The 

Department established Creating and Leveraging Acquisition Small Business Strategies to 

elevate the Department’s small business achievement, which resulted in identifying 124 

small business set asides totaling $131 million. The Department also received an “A” on 

the U.S. Small Business Administration’s Federal Scorecard released in July 2023.
FY 2023 AGENCY FINANCIAL REPORT 23 U.S. DEPARTMENT OF EDUCATION

The Office of Business Support Services developed a robotic process automation tool or 

“bot” to automatically close out more than 50 percent of expired but open contracts in 

the Contracts and Purchasing Support System (CPSS). To date, the bot has closed 57 

percent of expired but open contracts, providing approximately $1.15 million in savings 

to the Department.

The Department’s Agency Priority Goals

The Department identified three Agency Priority Goals (APGs) for FY 2022 and FY 2023 

to address the impact of the COVID-19 pandemic, effectively manage federal student 

loans, and reduce disparities in attainment of high-quality degrees and credentials. These 

current APGs concluded in September 2023, and the status reports are available online. 

The Department will focus on three new APGs in FY 2024 and FY 2025.

APG 1 Address the impact of the COVID-19 pandemic on students, educators, and faculty. The Department will be a 

leader and partner in addressing the impact of the COVID-19 pandemic in educational areas. By September 30, 2023, 

the Department will respond to the impact of the COVID-19 pandemic and the need to continuously provide for highquality educational environments and capabilities by supporting state educational agencies, local educational agencies, 

and institutions of higher education to:

• Continue to support schools in maintaining safe, fully in-person instructions for students.

• Utilize COVID-19 relief funds on appropriate, effective, and evidence-based activities to reengage students, address

lost instructional time, and improve educational opportunities by offering 300+ Department-led technical assistance

engagements.

Related Strategic 

Objectives

Strategic Objective 1.1: Prioritize the equitable and adequate distribution of resources to communities of concentrated 

poverty in an effort to provide underserved students with high-quality educational opportunities.

Strategic Objective 1.2: Ensure all students have access to well-rounded, rigorous, engaging, and diverse learning 

opportunities and environments to support their success in school.

Strategic Objective 3.1: Support the development and implementation of multitiered systems of supports to increase 

students’ engagement; social, emotional, and mental health; well-being; and academic success.

Strategic Objective 3.2: Foster supportive, inclusive, and identity-safe learning environments and ensure the individual 

needs of underserved students are met through appropriately designed instruction, evidence-based practices, and 

related supports and services.

APG 2 Effectively manage federal student loans. The Department will provide effective customer service for borrowers to 

simplify the student loan repayment process. By September 30, 2023, Federal Student Aid will improve loan servicer 

quality and accuracy to levels at or above 95 percent, as defined in student loan servicer agreements.

Related Strategic 

Objective

Strategic Objective 4.2: Improve the administration of student aid programs to help eligible students receive aid; 

support borrowers in successfully repaying their loans, claiming loan forgiveness benefits, and mitigating student loan 

default; and hold contractors accountable.

APG 3 Reduce disparities in attainment of high-quality degrees and credentials. The Department will support institutions 

and states to assist low-income students and students of color to enroll in and complete high-quality postsecondary 

education programs, including at community colleges and through career and technical training. By September 30, 2023, 

the Department will increase the number and diversity of higher education grant applicants from community colleges, 

Historically Black Colleges and Universities, Tribally Controlled Colleges or Universities, Minority-Serving Institutions, 

and public four-year colleges by 5 percent to support and assist low-income students and students of color in attaining 

improved educational outcomes.

Related Strategic 

Objectives

Strategic Objective 4.1: Support educational institutions and state systems in efforts to raise academic quality and 

college completion for all students, especially for underserved students, such as first-generation students, students 

from low-income backgrounds, students of color, and students with disabilities.

Strategic Objective 4.2: Improve the administration of student aid programs to help eligible students receive aid; 

support borrowers in successfully repaying their loans, claiming loan forgiveness benefits, and mitigating student loan 

default; and hold contractors accountable.

Management’s Discussion and Analysis (Unaudited)