Washington Insights & Highlights January 22nd

Congress Continues to Pass FY26 Appropriations Before the January 30 Deadline

On January 21, the U.S. House of Representatives passed its final package of Fiscal Year (FY) 2026 spending bills, before the January 30 deadline to fund the federal government. The Senate is expected to vote on the package of bills when it returns to Washington, D.C. next week.

The White House on Thursday evening released a statement stating that President Donald Trump’s senior advisers would recommend he sign the spending package into law. Below are important provisions from the FY26 Labor-HHS-Education Bill:

National Institutes of Health (NIH)

• The NIH would be funded at $47.2 billion, which is a $415 million increase over fiscal year 2025 levels. The bill also funds the Advanced Research Projects Agency for Health (ARPA-H) at $1.5 billion, which is the same level of funding the agency received in fiscal year 2025.

• While the bill preserves a 2017 framework on indirect costs, it calls for greater transparency in research costs and directs agencies to discuss models, such as the Financial Accountability in Research (FAIR) model with Congressional Committees.

U.S. Department of Education

• The bill rejects dismantling the U.S. Department of Education and the drastic cuts proposed by the Administration. This bipartisan and bicameral bill funds higher education programs at $3.3 billion, which is an $18 million decrease from FY25 appropriations.
• GAANN – Graduate Assistance in Areas of National Need (GAANN) would receive $19.5 million to support high-need fellowship areas.
• International Education – The bill preserves funding for international education at $80.6 million, which includes Title VI programs and the Fulbright-Hays Program.
• Minority-Serving Institutions – The bill appropriates $15 million for research and development infrastructure and $27.7 million for Hispanic postbaccalaureate opportunities. The bill includes $102.5 million for Strengthening Historically Black Graduate Institutions and $20.3 million for Strengthening HBCU Master’s programs.
• CCAMPIS – The bill includes language requiring the Department of Education to hold a new FY26 competition for the Child Care Access Means Parents in Schools (CCAMPIS) program.

In early January, the House of Representatives and Senate worked in a bipartisan manner to negotiate and move forward with the FY26 Commerce-Justice-Science Spending bill, which includes the National Science Foundation (NSF). This bill would appropriate $8.75 billion for NSF and calls on the agency to “sustain U.S. leadership in scientific discovery, including continued investments in quantum information science, artificial intelligence, Regional Innovation Engines, and critical research facilities.”

AHEAD Committee Reaches Consensus Regarding New Earnings Premium Framework

The U.S. Department of Education’s Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) Committee concluded its final session on January 9, reaching consensus on a new accountability framework. The framework, developed as a requirement of the One Big Beautiful Bill Act, officially replaces specific provisions within the Gainful Employment and Financial Value Transparency (GE/FVT). Notably, the committee reached a compromise to eliminate the debt-to-earnings (D/E) test, shifting the focus to a new earnings premium test to determine program eligibility for Title IV funding.

For a deeper dive into the negotiated rulemaking, review the CGS Government Relations and Public Policy readout on the AHEAD Committee, which highlights specific provisions impacting graduate education. These regulations are set to take effect on July 1, 2026, with the first official data reporting under the Student Tuition and Transparency System (STATS) system expected in 2027.

Lawler Bill Would Redefine Professional Degrees for Federal Graduate Loans

On December 15, Representative Mike Lawler (R-NY) introduced H.R. 6718, the Professional Student Degree Act, which could expand the list of professional degrees eligible for the higher federal student loan limit. The bill would define a professional degree as one that demonstrates both the completion of academic requirements for beginning practice in a profession that commonly requires licensure and a level of professional skill beyond that of a bachelor’s degree.

Why It Matters: This bill would allow more students in specific professional degree programs to obtain higher borrowing limits under the new loan caps established by the One Big Beautiful Bill Act (OBBBA). Specifically, this legislation helps those in “fast-track” professional programs who may need to borrow beyond the standard $20,500 annual limit for traditional graduate students. Under the OBBBA, professional students may borrow up to $50,000 annually up to the $200,000 limit.

Department of Education Pauses Wage Garnishment for Default Student Loan Borrowers

On January 16, the U.S. Department of Education (Department) announced that it would delay the implementation of involuntary collections on federal student loans, including Administrative Wage Garnishment (AWG) and the Treasury Offset Program (TOP). The temporary delay will enable the Department to implement student loan repayment reforms under the Working Families Tax Cuts Act (the Act) that expands repayment options for borrowers.

The Act streamlines the federal student loan repayment system by reducing the number of available repayment plans and eliminating what the Department has described as a “confusing array of options.” Borrowers will be able to choose between a single standard repayment plan or an income-driven repayment (IDR) plan tailored to their financial circumstances. Notably, the Act establishes a new IDR plan that waives unpaid interest for borrowers who make on-time payments that do not fully cover accrued interest. In certain cases, the Department will also provide small matching payments to ensure that borrowers’ outstanding principal is reduced each month. This new IDR plan will be available beginning July 1, 2026.

Staff Sent from Department of Education to Department of Labor

On January 15, the Trump Administration announced additional steps to dismantle the U.S. Department of Education (Department) by sending higher education agency staff to the U.S. Department of Labor (DOL). Starting January 20, 2026, staff in the Higher Education Programs (HEP) Division of the Office of Postsecondary Education (OPE) began working at DOL to support the transition of federally funded postsecondary programs to Labor’s grants management and payment systems.

The move follows a November 18 announcement from the Department that outlines six new interagency agreements (IAAs) designed to transfer certain departmental responsibilities to other federal agencies, including DOL.

The Administration’s continued efforts to shift the Department’s functions to other agencies have complicated congressional negotiations over federal education spending. As appropriators work to finalize funding levels for the current fiscal year, lawmakers have sought to include text in the FY26 Labor-HHS-Education spending bill that would prohibit the Department from transferring statutory responsibilities to other agencies without congressional approval.

Department of Energy Seeks Input on AI-Driven Graduate and Post-Doctoral Training

The U.S. Department of Energy (DOE) is requesting input on strategies to develop an AI for Science and Engineering pipeline specifically tailored for the graduate and post-doctoral levels. The Genesis Mission will provide expanded training and “research experiences as part of doctoral and post-doctoral associate training” to prepare the next generation of researchers. The DOE is focused on establishing dual competencies in AI and a specific scientific or engineering discipline, ensuring that advanced degree holders can “lead the world in AI-powered science, innovation, and applications.”

The DOE is requesting feedback on how to “catalyze and incentivize collaborations” that offer graduate students and post-docs real-world experiential learning opportunities. These training frameworks are intended to feed into “rapidly expanding private and government sector jobs,” as well as advanced academic roles, by equipping researchers with the skills to address “the most challenging problems of this century.” All comments must be submitted by March 4, 2026.