Last Week in Congress

On May 1, the Department published Reimagining and Improving Student Education – Federal Student Loan Program Final Regulations. The rules, which implement provisions of the One Big Beautiful Bill Act, P.L. 119-21, and take effect on July 1, 2026, dramatically change certain aspects of the federal student loan program. One of the more controversial provisions of the regulations is the definition of “professional” and “graduate,” with the impact of categorization being significant disparities in new federal loan caps. Since P.L. 119-21 was passed last summer some members of Congress have been seeking to adjust those changes. So far, eight different bills have been introduced to either raise loan limits or shift the definition of “professional” to increase the number of students eligible for higher loan limits; two of those bills were introduced last week, but nothing has advanced yet.

Last week, the Senate Appropriations Committee hosted Secretary McMahon to discuss the President’s FY2027 Budget Proposal. Secretary McMahon, facing bipartisan skepticism, defended her vision of educational renewal and returning education to the states. The House Appropriations Committee is scheduled to hold a markup of their FY2027 budget for Labor, Health and Human Services, Education, and Related Agencies on June 5 (Subcommittee) and June 9 (Full Committee); the Chair and Ranking Member of the Senate Appropriations Committee released General Guidance on appropriations requests, and aims to complete markup of all 12 spending bills by the end of June.

Last week, Congress continued to hear testimony about the President’s FY2027 Budget Proposal. This Tuesday, the Senate Appropriations Committee, Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, will review the budget request for the Department of Education and hear from Secretary McMahon. Expect questions related to the transfer of significant functions out of the Department, efforts to overhaul large swaths of federal student assistance programs, and continued concern about how and when funding (both title and discretionary) will reach states.

Budget season is underway—House and Senate Budget and Appropriations committees began hearing testimony on the President's FY2027 budget request, with the House set to mark up its Labor, HHS, and Education spending bill on June 5 and 9. A hearing specifically on the Department of Education's budget has not yet been publicly scheduled.

While Congress remained in recess, the House Education and Workforce Committee advanced committee reports on seven bills amending the Child Care and Development Block Grant Act of 1990, introducing enhanced fraud prevention measures, new provider accountability requirements, and triennial state performance reviews. The reports position the bills for House floor consideration as part of a broader Republican push on child care oversight.

With Congress on Spring Break, the administration released its FY2027 Budget Proposal—which assumes continued dismantling of the Department through IAAs, consolidation or elimination of numerous discretionary grant programs, and the creation of a new "Make Education Great Again" (MEGA) block grant program. Congress rejected analogous proposals in FY2026, but the budget signals the administration's intent to press forward administratively even without legislative approval.