Washington Insights & Highlights June 13th

Senate HELP Committee Unveils Education Portion of Reconciliation Bill; CGS Provides Resources for Members

On June 10, the Senate Health, Education, Labor, and Pensions (HELP) Committee released its bill text for the Budget Reconciliation package with key differences from the House-passed reconciliation package. Unfortunately, both the House and Senate bills calls for the elimination of GRAD Plus Loan program; a program that has provided people with the financial resources to pursue a graduate education. The Senate HELP bill also includes a provision that consolidates repayment plans into one income-driven repayment plan.

Below are key items within the Senate version that affect graduate education:

• Loan Limits: Graduate unsubsidized loan limits would be capped at $20,500 annually and $50,000 for professional students. The aggregate limit would be capped at $100,000 for graduate students and $200,000 for professional students. A $257,500 cap on all federal student loans would apply, excluding borrowed Parent PLUS loan amounts.
• Proration of Loans: Both bills require institutions to prorate annual loan amounts based on the student’s enrollment status in direct proportion to their percentage of full-time enrollment.
• Median Cost of College: The Senate bill does not include language on tying aid to the median cost of college.
• Accountability: The Senate bill does not include institutional risk-sharing but introduces an accountability measure comparing the median earnings of program graduates to those with a high school or bachelor’s degree, based on credential level. Programs that fail this test in 2 of 3 years would lose Direct Loan eligibility for 2 years. After one year of failure, institutions must disclose outcomes to students. The policy would take effect July 1, 2026.

For more information about the Senate HELP Committee’s bill, please read the bill text, section-by-section document, and one-pager.

CGS Action: CGS staff have developed a webpage to provide CGS members with up-to-date information about the Budget Reconciliation bill and process.

Please Note: It is not too late to advocate for the Grad PLUS Loan program. The CGS Budget Reconciliation webpage has useful information and talking points.

The FY 2026 Appropriations Process Begins

On May 30^th, the Trump administration released its detailed FY 2026 President’s Budget Request (PBR), which includes steep cuts to non-defense discretionary programs, including higher education programs. The $1.6 trillion base request includes $1 trillion in defense spending and $601 billion in non-defense discretionary spending. Notably, the PBR decreases non-defense discretionary spending by 22 percent to its lowest level since 2017. Meanwhile, defense spending would increase by 13 percent.

As noted in previous CGS publications, such as the CGS Programs of Interest document, the administration proposes a 40 percent cut in funding for the National Institutes of Health, a 50 percent cut for the National Science Foundation, and a 14 percent cut for the Department of Energy’s Office of Science. The PBR proposes to cut U.S. Department of Education programs such as TRIO, the Graduate Assistance in Areas of National Need (GAANN), and the Child Care Access Means Parents in School program (CCAMPIS).

Immediately following the release of the PBR, Trump administration cabinet officials made their way to Capitol Hill to testify before House and Senate Appropriations Committees to support the FY 2026 PBR. When testifying before the Senate Appropriations Committee, NIH Director Jay Bhattacharya faced serious questions from Democratic and Republican senators. Senate Appropriations Committee Chair Susan Collins (R-ME) said that the proposed cut to the NIH budget is “so disturbing” and “that it would undo years of congressional investment in NIH and would delay or stop effective treatments and cures.” NIH Director Bhattacharya also faced tough questions about the drastic reduction in the NIH workforce by 5,000 employees, the termination of 2,500 grants worth $4.9 billion, and the 15-percent cap on indirect costs.

For more information about FY 2026 appropriations, please visit the CGS Budget and Appropriations webpage.

Trump Administration Executive Order: Restoring Gold Standard Science

On May 23, President Trump issued an executive order (EO) titled “Restoring Gold Standard Science”. The order will overhaul federal agencies’ handling of scientific research and introduce a requirement to revisit all Biden-era regulations to ensure compliance with new scientific integrity standards. The executive order defines Gold Standard Science as research that is “reproducible, transparent, clearly and quickly communicates error and uncertainty, collaborative and interdisciplinary, etc.”

According to the executive order and subsequent federal register notice, the White House Office of Science and Technology Policy must issue implementation guidance to agencies to revamp their management of science to ensure that it is reproducible, transparent, falsifiable, and unbiased among a lengthy list of requirements within 30 days of the publication of this notice.

Federal agencies will then have 60 days to review all regulations and other actions issued during President Joe Biden’s term from 2021 to 2025 “to ensure alignment with the policies and requirements of this order” and that their policies “protect employees from efforts to prevent or deter consideration of alternative scientific opinions”.

The executive order also requires agencies to reinstate the scientific integrity frameworks that were in place at the conclusion of the first Trump administration, pending the development of updated policies.

In addition, federal agencies will be required to publicly share data, analyses, models, and conclusions associated with scientific and technological information produced or used by the agency. This closely mirrors the first Trump administration’s now-defunct Environmental Protection Agency “Secret Science” rule, which was explicitly designed to exclude studies based on whether they made raw data publicly available.

Education and Treasury Departments Sign MOU on Student Loan Collections

A court declaration filed on Tuesday by Rachel Oglesby, Chief of Staff at the Department of Education, revealed that the department had been negotiating a memorandum of understanding (MOU) with the U.S. Department of the Treasury to coordinate management of federal student loan collections. Under the proposed MOU, Education Department employees from the defaulted loans collections unit would be detailed to the Treasury’s Fiscal Service Bureau to support Federal Student Aid operations and coordinate collections-related activities.

Implementation of this agreement has been paused following a May 22 ruling by a federal judge that blocked the Trump administration’s attempt to significantly reduce the Department of Education’s workforce. The administration has appealed the injunction to the U.S. Supreme Court.

U.S. Department of Education FVT/GE Reporting Deadline Remains

Friendly Reminder: The U.S. Department of Education is extending the deadline for evaluating the Completers’ List and reporting data associated with Financial Value Transparency and Gainful Employment (FVT/GE) until September 30, 2025.

For more information, please read the February 14, 2025 FSA Electronic Announcement.