Department of Education Reinforces College Responsibilities for Student Loan Borrowers
May 19, 2025, 17:18
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AACOM Government Relations
- On May 5, 2025, the Department of Education (ED) issued a Dear Colleague Letter (DCL) to institutions of higher education reminding them of their shared responsibility under Title IV of the Higher Education Act of 1965 to support student loan borrowers.
- ED’s DCL outlined key actions institutions should take to tackle rising student debt and enhance borrower outcomes, such as:
- Providing accurate loan information
- Offering borrower counseling
- Ensuring transparency in financial aid practices
- The DCL was published the same day that ED resumed involuntary collections on defaulted student loans.
- AACOM continues to monitor activities related to ED and will provide updates as needed. Please contact aacomgr@aacom.org with questions.
HHS’ Civil Rights Office Clarifies Race-Based Prohibitions for Medical Schools
May 19, 2025, 17:19
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AACOM Government Relatons
- On May 6, 2025, the HHS published a DCL to medical schools and health-related institutions. The letter clarifies that race-based criteria in admissions, hiring and program operations are prohibited under federal law, in light of the Supreme Court’s decision in Students for Fair Admissions v. Harvard.
- The DCL advised medical schools to:
- Ensure that all policies, procedures and practices are fully consistent with applicable federal civil rights laws;
- Discontinue the use of any criteria, tools or processes that serve as substitutes for race or are intended to advance race-based decision-making; and
- Cease reliance on third-party contractors, clearinghouses or data aggregators that engage in prohibited uses of race.
- For full details, read the HHS announcement.
Health Affairs Article Highlights Effectiveness of THCGME and Rural Development Programs
May 19, 2025, 17:19
by
AACOM Government Relations
- A recent Health Affairs study reveals a significant expansion in graduate medical education (GME) programs in rural areas and at federally qualified health centers (FQHCs) from 2008 to 2024, crediting federal initiatives aimed at addressing physician shortages in underserved communities.
- The study reports an increase in residency programs incorporating rural training sites from 120 in 2008–09 to 412 in 2023–24, an increase from 6.18 percent to 14.34 percent of all programs. Similarly, GME programs with FQHC training sites grew from 69 to 321 during the same period, accounting for 11.17 percent of all residency programs by 2023–24.
- Federal programs like the Rural Residency Planning and Development (RRPD) program and the Teaching Health Center Graduate Medical Education (THCGME) program play a critical role in expanding rural and community-based training, as 21.6 percent of rural residencies are supported by the RRPD and 28 percent of FQHC-based residencies are funded through THCGME.
- The study also found that rural-trained residents are at least twice as likely to remain and practice in rural areas and that 56 percent of residents trained in community-based settings such as FQHCs go on to serve in medically underserved areas, compared to just 25.1 percent of the overall U.S. residency graduate population.
- These findings demonstrate the effectiveness of THCGME and other rural development programs in bolstering the healthcare workforce. With nationwide physician shortages, especially in rural and underserved areas, the OME community’s commitment to community-based training is more pertinent than ever.
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President’s Skinny Budget Released
May 19, 2025, 17:20
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AACOM Government Relations
- On May 2, 2025, President Donald Trump released his fiscal year (FY) 2026 discretionary budget request, which outlines the administration's key spending priorities for the upcoming year. Often referred to as the "skinny budget," this document is a policy outline, not a legally binding proposal, offering a preview of the administration's preferred approach.
- The "skinny budget" reduced discretionary spending by 22.6 percent across the federal government for non-defense discretionary spending, including:
- $29.3 billion for the National Institutes of Health, a 38 percent decrease from FY25
- $7.2 billion for the Health Resources and Services Administration, a 19.4 percent decrease from FY25
- $3.0 billion in discretionary funding for the Centers for Medicare and Medicaid Services, an 18.3 percent decrease from FY25
- $5.6 billion in discretionary funding for the Centers for Disease Control, a 38.9 percent decrease from FY25
- $240 million in discretionary funding for the Agency for Healthcare Research and Quality, a 35 percent decrease from FY25
- Many Republicans have expressed concerns about the president's "skinny budget," and the final budget may diverge from the president's preferences. A more detailed FY26 budget request, including specific programmatic funding levels, is expected to be released by the White House in the coming weeks.
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RFK Jr. Testifies in Congress
May 19, 2025, 17:21
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AACOM Government Relations
- On May 14, 2025, the House Appropriations Committee and the Senate Committee on Health, Education, Labor, and Pensions (HELP) held budget hearings for the U.S. Department of Health and Human Services (HHS).
- Secretary Robert F. Kennedy Jr. testified before both committees in support of significant budget cuts and structural reforms, which he argued would enhance departmental efficiency and better align with the administration’s health priorities. Central to these reforms is the proposed creation of the Administration for a Healthy America.
- Kennedy faced bipartisan scrutiny during the hearings, particularly concerning past vaccine-related statements and proposed funding cuts for programs related to infectious disease control, cancer and maternal health research, and the NIH. Despite the controversy, Kennedy reaffirmed his commitment to the health of the American people and defended the changes as necessary to modernize HHS and shift focus toward preventive care and chronic disease management.
- For more information on the hearings, see AACOM’s summaries of the House Appropriations and Senate HELP Committee hearings.
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ED Seeks Nominations for Upcoming Negotiated Rulemaking Committee
May 19, 2025, 17:22
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AACOM Government Relations
- ED is launching a negotiated rulemaking committee to overhaul multiple federal student loan and aid programs, including Public Service Loan Forgiveness, the Pay As You Earn plan and the Income-Contingent Repayment plan. As part of this initiative, ED is forming a Student Loans and Affordability Committee to draft proposed regulations.
- The Department is accepting nominations for committee negotiators through June 2, 2025. The first committee session will be held June 30 – July 2, 2025.
- Announced on April 3, 2025, ED seeks to “streamline” student-loan assistance programs, including for public-service workers and low-income borrowers, with the aim of creating “efficiencies for students, institutions, and key stakeholders.”
- AACOM submitted joint comments with the American Osteopathic Association urging ED to strengthen federal programs and policies that support the educational pathway of the future healthcare workforce.
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