Washington Insights & Highlights July 24th

U.S. Department of Education Releases Guidance on Implementation of One Big Beautiful Bill Act

The U.S. Department of Education released guidance on the implementation of the One Big Beautiful Bill Act (OBBB), outlining immediate changes to federal student aid programs. While most changes within the bill will be implemented on July 1, 2026, several became effective on July 4, 2025, when President Trump signed the OBBB into law.

Below are key provisions from the bill that are now in effect:

Changes to Income-Based Repayment: The new law removes the partial financial hardship requirement for enrolling in the Income-Based Repayment (IBR) plan. Loans disbursed between July 1, 2014, and July 1, 2026, may now enroll in the IBR plan, which caps payments at 10 percent of discretionary income and forgives remaining debt after 20 years.

Loan Limits for Part-time Students: The new law reduces annual student loan limits for students enrolled less than full-time, with the reduction proportionate to their enrollment level. The Department of Education is developing a schedule of these reductions, which will be released for public comment and implementation starting in the 2026 – 2027 academic year.

Parent PLUS Loan Repayment Options: The new law permits borrowers with consolidation loans that re-paid Parent PLUS Loans to enroll in an IBR plan. This change is effective immediately, with further guidance and system updates forthcoming.

Public Service Loan Forgiveness: The new law allows payments made under the new Repayment Assistance Plan (RAP) to count toward Public Service Loan Forgiveness.

Latest News: FY 26 Appropriations Process

As Congress heads into August recess, the FY 2026 appropriations process is behind schedule. Among the delayed legislation is the Labor-HHS-Education appropriations bill, which funds many federal higher education programs and the National Institutes of Health. The House has postponed its markup of the bill until September. As it stands, the House of Representatives proposes a nearly 6 percent cut to nondefense spending and a $1.3 billion reduction to the Labor-HHS-Education allocation. The Senate plans to proceed with its markup on August 1.

Commerce, Justice, Science: On July 15, the House Appropriations Committee’s Commerce, Justice, Science (CJS) Subcommittee advanced its FY 2026 funding bill along party lines. The legislation aligns with the Trump administration’s FY2026 Budget Request. The full committee markup is scheduled for September following the five-week August recess. On July 23, House Appropriators released the accompanying CJS Committee Report.

Key provisions of the House FY2026 CJS Bill/Report:

• Allocates $7 billion to the National Science Foundation (NSF), a $2.06 billion decrease from FY 2025 levels. This includes $6.4 billion for Research and Related Activities (R&RA), down $803.5 million from FY 2025 funding.
• Provides $5.8 billion for the National Oceanic and Atmospheric Administration (NOAA), $387.45 million below FY 2025 funding.
• Directs the U.S. Department of Justice to reinstate the China Initiative, a program previously criticized for undermining academic freedom and disproportionately targeting researchers of Chinese descent.
• Requires NASA and NSF to report back on plans for handling colleges or universities that receive federal funding but do not act against allegations of campus antisemitism.

In the Senate Appropriations Committee, lawmakers from both parties reaffirmed the importance of continued federal investment in fundamental scientific research. The Senate Committee completed its mark-up of the bill and released its committee report.

Key provisions of the Senate CJS Bill/Report:

• Allocates $9 billion for the NSF, a $60 million decrease from FY 2025, including $7.2 billion for R&RA, level with the previous year.
• Provides $6.1 billion for NOAA, $41.2 million below FY 2025 funding.
• For the National Sea Grant College Program, the Committee provides not less than $80,000,000 for the Sea Grant program, which plays a vital role in enhancing the practical use and conservation of coastal, marine, and Great Lakes resources to create a sustainable economy and environment, while simultaneously providing invaluable educational opportunities to students.
• Includes language preventing abrupt changes to indirect cost (F&A) rates by the Department of Commerce, NSF, or NASA.

Energy and Water: On July 17, the House Appropriations Committee approved its $457.3 billion Energy and Water spending bill. The House has yet to schedule a full floor vote on the bill, and Senate appropriators have yet to begin work on their version of the funding measure. The House bill, as it stands, provides $8.4 billion for the Department of Energy’s Office of Science, $160 million below the FY 2025 enacted level, and $350 million for Advanced Research Projects Agency-Energy (ARPA-E), $110 million below the FY 2025 enacted level.

Interior-Environment: On July 22, the House Appropriations Committee advanced its $38 billion Interior-Environment spending bill to the floor, clearing the committee vote 33-28. Notably, the bill provides $135 million for the National Endowment for the Humanities, $72 million below the Fiscal Year 2025 enacted level. The Senate has yet to release its version of the funding measure.

For more information on FY 2026 appropriations and detailed summaries from the Senate and House CJS Appropriations Bill, please view CGS’s Budget and Appropriations webpage

White House Considers Education Cuts in Second Rescission Package

The White House is planning to send a second rescissions package to Congress. Office of Management and Budget Director Russel Vought recently indicated that further rescissions are under consideration, specifically noting education as an area of interest.

This follows an earlier package that rescinded $9 billion in previously approved funding for programs including public broadcasting and foreign aid assistance.

The Department of Education related funds under review include approximately $7 billion in unobligated appropriations, which include resources for teacher training, support for migrant students, and other educational initiatives.

New NSF-NCSES Report Shows China Science Enterprise on the Rise

The National Center for Science and Engineering Statistics released its first Indicators 2026 report on July 23. The report highlights key trends in the global research and development landscape. The United States continues to lead in total R&D investment, spending $923 billion in 2022, but China is rapidly closing the gap. China’s R&D spending grew 16 percent from 2021 to 2022, compared to the U.S. growth rate of 12 percent. China now produces more than twice the number of research publications than the United States.

Higher education institutions continue to play a vital role in basic research, performing 11 percent of total U.S. R&D but accounting for nearly half of all basic research efforts. Academic R&D expenditure increased by $11.0 billion in FY 2023 to $108.8 billion.

In the United States, the business sector remains the dominant force in research and development, funding 75 percent and performing 78 percent of total R&D in 2023, totaling $940 billion. Business investment in basic research has increased significantly, rising from 21 percent in 2012 to 35 percent in 2023.

National Science Board Holds Summer Meeting

The National Science Board held its quarterly meeting on July 23 to discuss updates related to the National Science Foundation’s Graduate Research Fellowship Program (GRFP), the agency’s forthcoming implementation of the Gold Standard Science Executive Order, and the continued importance of federal research investments.

Key Take-aways from the NSB Meeting:

• Since May 2025, the NSF has awarded 500 additional GRFP fellowships, bringing the total for Fiscal Year (FY) 2025 to 1,500. The agency has proposed funding 2,000 fellowships in FY 2026.
• On August 22, 2025, the NSF will release its implementation plan for President Donald Trump’s Executive Order on Gold Standard Science. The plan will align with the recommendations of the Merit Review Commission and reflect the seven core tenets outlined in the order.
• As part of his comments to the NSB membership, Bill Dally, Chief Scientist at NVIDIA, underscored the importance of strengthening university-industry partnerships, expanding the domestic graduate student pipeline, and maintaining support for international graduate students. He emphasized GRFP’s essential role in advancing innovation and meeting the nation’s workforce demands.

NIH Limits Principal Investigators to Six Grant Applications Annually

The National Institutes of Health (NIH) has announced a new policy capping the number of grant applications a Principal Investigator (PI) may submit, to six per calendar year. This limit applies to new, renewal, resubmission, and revision applications.

In addition to the cap, NIH is introducing new restrictions on the use of artificial intelligence (AI) in the application process. Applications deemed to be “substantially developed by AI” will not be considered original work and may be disqualified. According to the NIH announcement, the policy follows recent instances of PIs submitting unusually high numbers of applications, in some cases over 40 in a single cycle. However, the NIH has yet to specify what constitutes “substantial” AI involvement.

The policy does not apply to R13 conference grant applications or T activity codes, which include training grants for graduate students. Additionally, collaborative applications involving co-investigators or other senior/key personnel will not count toward the six-application limit per PI.