Skip to content
News and updates

Category: Budget

UW Provost Tricia Serio Visits D.C. to Champion Research Priorities

Posted on

This week, University of Washington Provost Tricia Serio traveled to Washington, D.C. to meet with senior leaders across multiple federal agencies, including the National Science Foundation (NSF), to advocate for robust federal investment in research and innovation.

As the chief academic officer of one of the nation’s leading public research universities, Provost Serio underscored the vital role that federal research funding plays in advancing scientific discovery, supporting students and faculty, and driving economic growth in Washington state and across the country. Her meetings focused on aligning federal priorities with the university’s research strengths and strategic goals for the upcoming fiscal year. Amid growing uncertainty around federal budget negotiations, Provost Serio emphasized the critical need for sustained investment in university research and explored opportunities for the University of Washington to strengthen its role as a trusted partner to the federal government.

Provost Serio’s visit reflects UW’s ongoing commitment to federal engagement and its leadership in shaping national research policy. By fostering and maintaining strong partnerships with federal agencies, Provost Serio worked to ensure that the UW’s research enterprise remains a powerful engine for innovation and advancement.

Federal Budget Update

Posted on

The federal government is set to run out of funding at the end of September, leaving Congress just weeks to avoid a shutdown.

Current funding is provided by a continuing resolution (CR) passed in March that extended government operations through the fiscal year. Lawmakers have increasingly relied on CRs in recent years as partisan divisions have made it difficult to pass the 12 annual appropriations bills on time.

Although Republicans control both chambers, deep divisions remain between the House and Senate. Senate Republicans have advanced bipartisan bills that call for tens of billions more in spending than proposals from House Republicans and the Trump administration.

In the House, GOP lawmakers have been drafting bills with steep cuts but are also moving toward another stopgap resolution. Such a measure could extend funding into mid-November, giving negotiators more time to strike a full-year deal for fiscal 2026.

One option gaining traction would combine a short-term CR with several relatively uncontroversial appropriations bills, including Military Construction–VA, Agriculture, and Legislative Branch. Senior appropriators Sen. Susan Collins (R-ME) and Rep. Tom Cole (R-OK) have endorsed the approach, with Cole signaling he wants the CR to run only through Thanksgiving.

Tensions with the White House are complicating talks. The administration’s recent use of the “pocket rescissions” process to cancel billions in foreign aid has drawn sharp criticism from Democrats, raising doubts about whether bipartisan agreements will hold.

Meanwhile, appropriators are pressing ahead with their individual bills to show progress. The House is set to take up the Energy-Water bill this week, while the Appropriations Committee will vote on the Financial Services measure. In the Senate, the panel plans to advance Homeland Security and State-Foreign Operations next week.

Less than 13 legislative days remain until the funding deadline, meaning lawmakers will have to act quickly to keep the government open.

 

 

Student Loan Changes

Posted on

After a marathon of overnight voting and intense intra-party negotiations, the Republican-controlled Congress has passed the long-anticipated “Big, Beautiful Bill” championed by President Trump. The sweeping legislation, signed into law on July 4, introduces significant changes across key policy areas—including taxation, defense, immigration, healthcare, and education.

One of the bill’s most consequential changes involves a complete restructuring of the federal student loan system, aimed at curbing government spending to offset substantial tax reductions. Although initial proposals varied between the House and Senate, lawmakers ultimately reached a compromise that is now law.

New Borrowing Limits (Effective July 1, 2026):

  • Graduate students: $20,500 annually, $100,000 lifetime cap
  • Professional students: $50,000 annually, $200,000 lifetime cap
  • Parents (combined per student): $20,000 annually, $65,000 lifetime cap
  • Lifetime borrowing cap for all students: $257,000
  • Grad PLUS and Parent PLUS programs: Eliminated
  • Undergraduate annual borrowing limits: Unchanged

Repayment Changes: Starting July 1, 2026, all existing income-driven repayment (IDR) plans will be discontinued for new borrowers. Instead, two new plans will be introduced:

  1. Standard Repayment Plan: Payment periods range from 10 to 25 years, depending on the original loan balance
  2. Repayment Assistance Plan (RAP): Payments set at 1% to 10% of income, with remaining balance forgiven after 30 years

Current borrowers can remain on existing repayment plans through July 1, 2028, after which they will be transitioned to RAP or a revised version of the Income-Based Repayment (IBR) plan.

See the table below for more:

OBBBA Student Loan Chart

Senate Tax Package Update

Posted on

Senate Finance Committee Chair Mike Crapo (R-Idaho) confirmed Tuesday that his panel will not formally review the GOP tax package recently released by the committee, opting instead to send it directly to the Senate floor as part of the GOP’s broader legislative effort. While Crapo maintains that this decision is unrelated to opposition within the committee, speculation suggests that Senator Ron Johnson (R-Wisconsin), a key swing vote and vocal critic, may have influenced the move.

The Senate package introduces an endowment tax hike for private institutions, though it is more modest than the House version. Additionally, it eliminates the proposed logo and licensing income tax included in the House’s provision.

The committee’s proposal also contains controversial Medicaid and debt ceiling provisions. One key Medicaid-related measure would gradually reduce most states’ ability to impose provider taxes on hospitals and other health care providers, capping the rate at 3.5% by 2031—down from the current 6% limit. However, this restriction would only apply to the 40 states and the District of Columbia that have expanded Medicaid for low-income adults.

For states that have not expanded Medicaid—primarily GOP-led—new provider tax rate increases would be restricted but would not face as drastic an impact. The Senate package also introduces stricter Medicaid work requirements, mandating that parents with children aged 15 and older engage in work, volunteer activities, school, or job training for at least 80 hours a month to maintain benefits. The House version had exempted parents of dependent children from this requirement.

Regarding the debt ceiling, the Senate committee proposes a $5 trillion increase, surpassing the House’s $4 trillion adjustment. This provision is designed to extend the timeframe for President Trump’s policy implementation, reducing the necessity for negotiations with Democrats over the cap.

If the committee’s proposal withstands scrutiny under the Senate Byrd Rule process, it will be incorporated into the “Big, Beautiful Bill” package, requiring only a simple majority to pass. GOP leaders aim to send the bill to President Trump by July 4, though some lawmakers have voiced concerns about the ambitious timeline.

 

 

 

 

 

 

 

 

Dept. of Education Budget Request Released

Posted on

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.