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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.

 

 

 

NSF Restructuring

The National Science Foundation is next agency in line for a massive shake-up under the Trump Administration. Staff were reportedly informed last week that the agency’s 37 divisions—across all eight NSF directorates—are being abolished and the number of programs within those divisions will be drastically reduced. The current directors and deputy directors will lose their titles and might be reassigned to other positions at the agency or elsewhere in the federal government.

The NSF’s new structure will retain the existing directorates but replace divisions with “clusters” that fund research in the president’s five priority areas: artificial intelligence, quantum information science, biotechnology, nuclear energy, and translational science.

The consolidation appears to be driven in part by President Donald Trump’s proposal to cut the agency’s $4 billion budget by 55% for the 2026 fiscal year that begins on October 1. Furthermore, the NSF is expected to send termination notices to an unspecified number of its 1700-member staff.

In addition to staff layoffs, the NSF will significantly reduce the number of scientists it employs through the Intergovernmental Personnel Act. Under this program, scientists on leave from their academic positions work with the NSF to help the agency choose the best research to fund. NSF currently hosts 368 scientists but plans to slash this number to 70 by June 9.

The move comes after the recent announcement that the NSF would begin capping reimbursement rates for indirect research costs at 15%, mirroring the funding cuts at the NIH and the Department of Energy, both of which have been blocked in court. A number of universities and associations have filed a suit to block this move as well.

Helpful Links:

NSF slashes number of ‘rotators’ and well-paid managers as part of restructuring | Science | AAAS

Exclusive: NSF faces radical shake-up as officials abolish its 37 divisions | Science | AAAS

 

 

 

 

GOP Reconciliation Proposals

On Tuesday morning, the House Education & Workforce Committee will markup their proposed reconciliation language. The draft legislative text proposes sweeping changes to higher education in order to meet the reconciliation goal of saving $330 billion over ten years. It is one part of a larger GOP reconciliation bill aimed at reducing government spending to pay for the proposed extension of President Trump’s 2017 tax cuts, which are due to expire at the end of the year.

The draft text includes an overhaul of federal student loan programs, including the elimination of subsidized student loans and Grad PLUS loans, restricting Parent PLUS loans, and altering the aggregate borrowing limits.

The aggregate limit for undergraduate students would be $50,000. For graduate students in nonprofessional programs, the aggregate limit would be $100,000. For professional programs geared toward training for a specific field, like law or medicine, the limit would be $150,000.

A student or their parents, across all programs of study, could not borrow more than $200,000 in unsubsidized federal loans.

Additionally, the proposal would limit the availability of federal aid to the median cost of a specific program nationally.

The legislation would also make changes to federal Pell Grants. The text would make ineligible students who are enrolled less than half-time or whose student aid index — a calculation used by schools to determine aid eligibility — is greater than twice the maximum Pell Grant amount for that school year.

The text would also create a system of “workforce” Pell Grants to help students pay for workforce development programs. For students to be eligible, a workforce program would need to last between 8 and 15 weeks, have a completion rate of over 70 percent and have a job-placement rate of over 70 percent. The text would also condition a program’s eligibility for the grants on students’ earnings relative to the cost of the program. The legislation also proposes increasing the amount of funds appropriated to the Pell Grant program by $10.5 billion over the next three fiscal years.

Another consequential change offered in the text is the implementation of a risk-sharing program. The measure would institute required reimbursement payments by colleges and universities based on student graduation rates, earnings and failure to repay federal loans. The Education Department would calculate the reimbursement an institution would pay for a program of study by dividing federal loans among different cohorts of undergraduate and graduate students who finish their programs on time and those who do not. The repayment balance would be the total of payments students failed to make, interest waived under the income-based repayment plan and interest or principal the Education Department forgave. The department would use the risk-sharing payments to fund new grants to schools that meet certain criteria, including on price transparency and completion rates.

 

 

 

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House Education & Workforce Committee Unveils Reconciliation Language

Republicans on the House Education & Workforce Committee on Monday proposed sweeping changes to higher education in order to meet their budget reconciliation goal of saving $330 billion over the next 10 years.

The draft legislative text will be marked up in Committee on Tuesday morning. Prior to the markup, Republican Committee Staff circulated a summary of the draft text, which is included below.

4.29 Reconciliation Bill Summary

HHS Changes Under RFK

The Health and Human Services Department announced a sweeping plan to cut 10,000 jobs and consolidate control over its sub-agencies on Thursday. FDA drug, medical device, or food reviewers and inspectors will not be among those fired, according to an HHS fact sheet. Instead, the cuts will target employees working on policy, human resources, information technology, procurement, and communications. The administration will start sending notices to employees on Friday, with the terminations coming into effect on May 27.

Around 3,500 employees are on the chopping block at the Food and Drug Administration, though they don’t yet know who they are.

The cuts come as Elon Musk and DOGE continue to trim the federal workforce and also represent HHS Secretary Robert F. Kennedy Jr.’s goal to exert more control over the sub-agencies contained within the department.

Kennedy has framed the cuts as a way to unite all the agencies around his efforts to “make America healthy again.”

This is not the administration’s first attempt to shrink HHS. In February, Musk laid off thousands of probationary workers. After pushback from the device industry, the administration rehired some FDA reviewers a week later. A federal judge has since paused all the probationary layoffs.