ED Announces New Neg-Reg Committees
Jul 28, 2025, 15:22
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AACOM Government Relations
- On Thursday, July 24, 2025, the U.S. Department of Education (ED) announced its intent to establish two negotiated rulemaking (neg-reg) committees to implement recent changes enacted by the One Big Beautiful Bill Act (OBBBA), H.R. 1.
- The Reimagining and Improving Student Education Committee will focus on major reforms to federal student loans for graduate and professional students, including phasing out Grad PLUS loans and setting new annual and lifetime borrowing limits.
- The Accountability in Higher Education and Access through Demand-driven Workforce Pell Committee will address changes to institutional and program accountability, including potential loss of Direct Loan eligibility for programs with low graduate earnings, reinstatement of Gainful Employment rules and implementation of Financial Value Transparency measures.
- Before establishing the neg-reg committees, the public will have an opportunity to provide oral advice and recommendations addressing the implementation of the OBBBA in a virtual public hearing on August 7, 2025. Nominations for negotiators and written comments will be accepted until August 25, 2025. The committees will consist of students, student loan borrowers, state officials and other organizations representing students and taxpayers, among others. The earliest any rules resulting from this process could go into effect is July 1, 2027, assuming the ED finalizes and publishes the rules by November 1, 2026.
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ED Implements Key Higher Education Provisions from OBBBA
Jul 28, 2025, 15:23
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AACOM Government Relations
- On July 18, 2025, ED released a Dear Colleague Letter (DCL) announcing the immediate implementation of several higher education provisions from the OBBBA, including changes to Income Based Repayment (IBR) and Public Service Loan Forgiveness (PSLF).
- The IBR changes include the elimination of the partial financial hardship requirement, which expands IBR eligibility to more borrowers and sets payments for these borrowers at 10 percent of discretionary income.
- Updates to PSLF include expanding eligibility to those making payments under the new Repayment Assistance Plan (RAP), which launches by July 1, 2026.
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Supreme Court Allows ED to Resume Mass Layoffs
Jul 28, 2025, 15:24
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AACOM Government Relations
- On Monday, July 14, 2025, the U.S. Supreme Court granted a request by the Trump administration allowing the Department of Education (ED) to proceed with firing half of the agency, roughly 1,400 employees.
- The Supreme Court’s majority did not explain the decision in the one-paragraph court order, which is not a final ruling but lifts a previous lower court injunction that blocked the administration from moving forward.
- ED first initiated the reduction in force in March and can now proceed while litigation continues in the lower courts through the appellate process.
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NIH Ordered to Reinstate Grants While Litigation Continues
Jul 28, 2025, 15:25
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AACOM Government Relations
- On Thursday, July 24, 2025, the Trump administration appealed to the U.S. Supreme Court to allow it to cut $783 million in federal research grants awarded by the National Institutes of Health (NIH) linked to diversity, equity and inclusion.
- Previously, U.S. District Judge William Young found the grant cuts illegal and vacated them. This lower court decision ordered the NIH to reinstate the grants and required the Trump administration to continue paying out the awards.
- The administration requested a stay to block the reinstatement of grants from going into effect, but this was denied on Friday, July 18, 2025, by the U.S. Court of Appeals.
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Congress Begins Action on FY26 Appropriations Bills
Jul 28, 2025, 15:25
by
AACOM Government Relations
- Since the passage of the One Big Beautiful Bill Act in early July, Congress has turned its attention to the fiscal year (FY) 2026 (FY26) funding bills.
- On July 17, 2025, the House Appropriations Committee approved top line funding numbers, reducing spending by $45 billion compared to the FY25 full-year continuing resolution, and interim 302(b) allocations, with a six percent cut in non-defense spending.
- The House Appropriations Committee has advanced nine bills with two already passed by the full House. House Appropriations Committee action on the Labor, Health and Human Services, Education (LHHSE) funding bill for FY26 has been rescheduled for early September.
- The Senate Appropriations Committee has marked up four FY26 funding bills and negotiations are underway to package them for a single floor vote. Senate committee action on the FY26 LHHSE is currently scheduled for July 31, 2025
Congress Cuts Foreign Aid Funding, Maintains PEPFAR
Jul 28, 2025, 15:26
by
AACOM Government Relations
- In July, for the first time in decades, Congress approved $9 billion in cuts in the Rescissions Act of 2025, H.R. 4. This action codified the funding cuts proposed by the Department of Government Efficiency using authority under the Congressional Budget and Impoundment Control Act of 1974.
- The Senate passed the rescissions package by a vote of 51-48 on July 17, 2025 after stripping out $400 million in cuts to the President's Emergency Plan for AIDS Relief (PEPFAR). It then returned to the House and passed by a narrow vote of 216-213 early July 18, hours before the 45-day deadline to act on the rescissions package.
- The bill contained approximately $7.9 billion in cuts to foreign aid and $1.1 billion to the Corporation for Public Broadcasting.
- Russell Vought, the director of the Office of Management and Budget, has indicated that the administration will send another rescissions package to Congress.
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House Subcommittee Holds Hearing on Public Health and Healthcare Workforce
Jul 28, 2025, 15:27
by
AACOM Government Relations
- On July 16, 2025, the House Energy and Commerce Subcommittee on Health held a hearing titled, "Legislative Proposals to Maintain and Improve the Public Health Workforce, Rural Health, and Over-the-Counter Medicines," which focused on the reauthorization of several expiring programs, including those related to rural health and the public health workforce. This marked the first hearing for COM Rep. Morgan Griffith (R-VA) as subcommittee chair.
- During question-and-answer segments, Dr. Candice Chen, the acting associate administrator for Health Workforce, HRSA, noted that reauthorization of Title VII and VIII programs are crucial as they support training in needed specialties and integrate behavioral health and other disciplines into primary care.
- Dr. Chen revealed that under current funding, the National Health Service Corp (NHSC) can award just 50 percent of applications. Further, Dr. Chen noted that the rural health workforce faces unique challenges, but workforce shortages also exist in urban and suburban areas.
- AACOM continues to advocate for the reauthorization and funding for Title VII and VIII programs and the NHSC. For more information about the hearing, view our summary and analysis.
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