May 2025 Policy by the People Federal Update

What’s Happening in Washington   

*Please note: This update may not include all the changes currently happening in the federal government. 

Appropriations Season Continues: The U.S. House of Representatives passed its Reconciliation Bill for FY25 in the early morning hours of Thursday, May 22nd. The bill, which passed by a 215-214-1 vote, mostly along party lines, extends President Trump’s tax cut from 2017 till the end of his term. To offset the cost of the tax cuts, the bill cuts over $1 trillion in spending over the next 10 years. For example, the House’s Education and Workforce Committee’s Student Success and Taxpayer Savings Plan proposes $350 billion in spending reductions, cutting student aid. This would include changing eligibility requirements for the Pell Grant, ending PLUS loans, changing repayment plans, and instituting a risk-sharing requirement for universities.  

The Reconciliation Bill now moves to the Senate, where it is expected to undergo major revisions.  

The White House  

The President’s Fiscal Year 2026 Budget: On May 2nd, the White House Office of Management and Budget (OMB) released the President’s Fiscal Year 2026 Skinny Budget. This blueprint of the President’s budget calls for $12 billion in cuts to the ED, or a 15% reduction from the approved FY25 funding levels, and consolidates 18 currently unnamed competitive and discretionary grant programs into one block grant. 

Secretary McMahon Testifies on the President’s Budget: On Wednesday, May 21st, the Secretary testified in front of the House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies about the President’s skinny budget.  

During the hearing, Secretary McMahon answered questions related to the Department of Education’s actions against Congressional allocations for education programs. The Secretary reiterated that the Department will continue to follow the law while also prioritizing increasing school choice, improving literacy, and “returning education back to the states.” The Secretary did not offer additional details on the President’s “skinny budget” proposal, including which competitive grant programs will be consolidated into the Simplified Grant Program. 

President Trump nominates Assistant Secretary for Postsecondary Education: On May 9, the ED announced the nomination of Dr. David Barker as the Assistant Secretary for Postsecondary Education at the ED.  

On May 22nd, the Supreme Court of the United States, in a 4-4 decision, upheld the Oklahoma Supreme Court’s ruling that the state cannot use taxpayer dollars to fund a religious Charter School. The Court’s opinion states that the direct and complete public funding of the school violates the separation of church and state doctrine. 

Additionally, on May 22nd, a federal judge blocked the mass firings of ED employees by the Administration that took place starting in March.  

The U.S. Department of Health and Human Services
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  • IEL Announces Launch of National Action Commission 
    The Institute for Educational Leadership (IEL) announces the launch of a National Action Commission, a new national collaborative designed to improve schools and communities by lifting up hyperlocal solutions and building systemic change, such as place-based, Community Schools, and whole-child strategies. Led by Dr. Bernadine Futrell—IEL Senior Fellow and former Deputy Assistant Secretary at the U.S. Department of Education—the Commission brings together leaders across philanthropy, education, business, community organizations, and policy to elevate effective strategies, align resources, and guide investments in community-led solutions. 
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