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OBBB Signed Into Law

President Donald Trump signed his “One Big, Beautiful Bill” into law during the July 4th picnic on the White House grounds, enacting a sweeping multitrillion-dollar legislative package that reflects the core of his policy agenda. The measure passed with near-unanimous Republican support in both chambers of Congress following months of negotiations and intense pressure from the president and GOP leadership.

The legislation extends Trump’s 2017 tax cuts and boosts funding for immigration enforcement and national defense. To balance the increased spending, the bill imposes substantial reductions to domestic programs, slashing Medicaid and food assistance by $1.2 trillion and cutting billions from federal higher education funding. According to estimates from the Congressional Budget Office, the bill will increase the national deficit by $3.3 trillion over the next decade and result in 11.8 million additional people losing health coverage.

Despite internal dissent and unanimous Democratic opposition, Trump succeeded in pushing the massive reconciliation bill through Congress in time for the July 4th deadline.

 

Dept. of Education Budget Request Released

The Trump administration has released its budget request for the Department of Education for Fiscal Year 2026, proposing steep funding cuts of more than 15%—a $12 billion reduction in budget authority. The administration characterizes these cuts as part of a broader effort to “responsibly wind down” the department.

While the president’s budget request serves as an important policy statement, it carries no legal authority. Final funding decisions rest with Congress, which determines allocations through the annual appropriations process. Several key Congressional committees are set to begin deliberations in the coming weeks, shaping the future of federal education spending.

Included below are some of the key higher education policy changes proposed in the budget request:

  • Pell Grant Reduction: The maximum Pell Grant award would be cut by $1,685, reducing it to $5,710 in total. The administration argues that this is necessary to address a $2.7 billion shortfall that has resulted from increasing instances of fraud as well as congressional irresponsibility.
  • Elimination of TRIO Programs: Federal funding for TRIO programs would be ended entirely. The administration argues that programs to support students from disadvantaged backgrounds will be better administered by individual states.
  • Cuts to Federal Work-Study: The administration requests to cut funding for work-study programs by $980 million. The administration hopes these proposed cuts will help to “enact a more appropriate split between Federal and employer wage subsidy, where employers pay 75 percent of a student’s hourly wages and reduce the federal contribution to 25 percent.”
  • Defunding GEAR UP: The GEAR UP program would also be defunded under this proposal.

Department of Labor Budget Hearing

The Subcommittee on Labor, Health and Human Services, Education, and Related
Agencies will meet in open session at 10:00 AM on Thursday, May 22, 2025, in Room 138
of the Dirksen Senate Office Building.

The hearing is titled: A Review of the President’s Fiscal Year 2026 Budget Request for
the Department of Labor

Witness:
The Honorable Lori Chavez-DeRemer, Secretary, Department of Labor

Live video webcast of the hearing available on www.appropriations.senate.gov.

HHS Budget Hearing

The Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies will meet in open session at 10:00 AM on Tuesday, May 20, 2025in Room 124 of the Dirksen Senate Office Building.

The Subcommittee will hold a hearing titled: A Review of the President’s Fiscal Year 2026 Budget Request for the Department of Health and Human Services. Secretary Robert F. Kennedy Jr. will be the witness. Live video webcast of the hearing can be found here:  www.appropriations.senate.gov.

 

 

 

Continuing Resolution Unveiled

On Saturday, House Republicans unveiled a stopgap measure to fund the government through September, setting up a vote on the resolution that would avert an impending government shutdown. The 99-page continuing resolution (CR) is expected to be considered by the House Rules Committee on Monday, with a floor vote expected Tuesday, though it remains unclear whether Republicans have the votes for passage.

The proposed CR would maintain current discretionary spending levels through the end of the fiscal year, though it does include some anomalies. In total, these anomalies increase defense spending by $6 billion, including funds for shipbuilding and military pay raises, and decrease nondefense spending by $13 billion. Also included are a number of extensions for healthcare programs, including: Medicare telehealth flexibilities and the Acute Hospital Care at Home Program, funding for the National Health Service corps and the Teaching Health Centers Graduate Medical Education Program, and the delaying of scheduled cuts to Medicaid Disproportionate Share Hospitals.

Notably, the CR does not raise the debt limit, which Congress must adjust in the coming months. It also does not include any earmarks for individual legislators.

While President Trump came out in support of the bill shortly after its unveiling on Saturday, Speaker Mike Johnson (R-LA) still faces an uphill battle as he works towards whipping enough votes for passage. House Democrats have quickly come out in opposition to the CR, voicing their frustrations over having been left out of the negotiations. Many Democrats have also cited concerns over the lack of guardrails on President Trump and his adviser Elon Musk’s attempts to unilaterally slash government spending.

If all members are present and voting, Johnson can afford just one Republican defection. If House Republicans are able to unify and pass the CR, it will face an even more difficult challenge in the Senate, where it will need 60 votes to cut off debate on the bill to get to a vote. With a 53-47 majority, and one member already voicing their opposition (Republican Rand Paul of Kentucky), Republicans will need Democratic votes for passage. So far, not a single Democratic member in either chamber has said they will vote yes.

As a reminder, Congress must pass and the President must sign a CR by midnight on the 14th to prevent a partial government shutdown.

Link to CR text