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DC Insight - 5/7/25

DC Insight

Good morning,

The goal of this email is to provide a regular source of useful information to staff and faculty of the University of 狐狸少女 System regarding the federal government and higher education. We have put together a list of news articles that will keep you informed of the actions taken by the executive, legislative, and judicial branch of government. These articles are meant to be informative and are not a reflection of the views or stance of the system regarding these issues.  

If you would like more information regarding any of the stories we share, or if you have any suggestions, please feel free to contact Dusty Schnieders schniedersd@umsystem.edu and/or Emily Lucas el59bz@umsystem.edu.

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Capitol Hill News

Inside Higher Ed 鈥 April 30, 2025 

The the House Education and Workforce Committee approved the Republican-led "Student Success and Taxpayer Savings Plan," a comprehensive overhaul of the federal student loan system. The legislation proposes capping federal student loans at $50,000 for undergraduates, $100,000 for graduate students, and $150,000 for professional students, effective July 1, 2026. It also consolidates income-driven repayment plans into two options, eliminates several Biden-era repayment and forgiveness programs, and introduces a "risk-sharing" model requiring colleges to repay a portion of defaulted loans, particularly for programs with poor employment outcomes. Additionally, the bill tightens Pell Grant eligibility by requiring students to complete 30 academic hours per year and extends the program to short-term training programs. Supporters argue that these measures will reduce federal spending by $330 billion and hold educational institutions accountable for student outcomes, while critics express concern over reduced financial aid and consumer protections.

The Hill 鈥 April 28, 2025

House Republicans have released legislation that would increase Pentagon spending by $150 billion, pushing the total defense budget in FY-25 to more than $1 trillion if passed. The bill, developed by the House and Senate Armed Services committees, includes nearly $25 billion earmarked for President Trump鈥檚 long-discussed Golden Dome missile defense initiative, a shield intended to protect the entire continental United States against advanced missiles. 


Federal News

The White House 鈥 May 2, 2025 

The following is a brief summary of President Trump鈥檚 鈥渟kinny鈥 budget proposal for FY 2026, which outlines key funding priorities and proposed cuts across education, research, and federal grant programs.

  1. Teacher Training & DEI Programs: Elimination of over $600 million in grants for teacher preparation programs incorporating diversity, equity, and inclusion (DEI) content, including the Teacher Quality Partnerships and Equity Assistance Centers.
  2. Reduction in Federal Funding: 
    1. $18 billion from the National Institutes of Health
    2. $12 billion from the Education Department
    3. $5 billion from the National Science Foundation.
  3. Reduction in Research Funding: Significant cuts are proposed for federal research agencies, including the National Institutes of Health (NIH) and the National Oceanic and Atmospheric Administration (NOAA), particularly targeting studies related to climate change, DEI, and renewable energy.
    1. National Science Foundation (NSF) Grants: Cancellation of more than 1,000 NSF grants, particularly those focusing on DEI or combating misinformation.
    2. National Institutes of Health (NIH) Research: Termination of NIH-funded studies related to DEI.
    3. Environmental and Climate Research: Cuts to NOAA and EPA educational and research grants perceived as promoting climate activism and DEI. 
    4. Advanced Research Projects Agency-Energy (ARPA-E): Reduction in funding to refocus on technologies producing reliable domestic power, eliminating support for certain renewable energy initiatives.

The Trump administration鈥檚 FY 2026 budget proposes a significant restructuring of federal education and research funding, with a focus on streamlining operations and reducing federal oversight. One major initiative includes consolidating 18 separate Department of Education grant programs into a single, simplified K-12 funding stream. This move is designed to cut administrative costs, ease compliance burdens, and ensure a larger share of funds directly supports students and families rather than bureaucracy. In line with a broader goal of revitalizing federalism, the administration plans to shift more responsibility for areas like education, housing, and environmental management to the states. 

U.S. National Science Foundation 鈥 May 2, 2025 

鈥婨ffective May 5, 2025, the National Science Foundation (NSF) will implement a standardized indirect cost rate cap of 15% of modified total direct costs (MTDC) for all new grants and cooperative agreements awarded to institutions of higher education (IHEs). This policy aims to streamline funding practices, enhance transparency, and ensure that a greater proportion of federal research dollars are allocated directly to scientific and engineering activities. The 15% cap applies only to new awards made on or after the effective date and does not retroactively affect existing awards or their supplements. By adopting this uniform rate, NSF seeks to reduce administrative burdens associated with individualized indirect cost negotiations and align with common federal benchmarks.

Federal Register 鈥 April 29, 2025 

The Office of Science and Technology Policy (OSTP), through the Networking and Information Technology Research and Development (NITRD) National Coordination Office, has issued a Request for Information (RFI) to gather public input for the development of the 2025 National Artificial Intelligence (AI) Research and Development Strategic Plan. This initiative aims to update the 2023 AI R&D Strategic Plan to ensure the United States maintains its leadership in AI by accelerating innovation, enhancing economic competitiveness, and addressing national security concerns. The RFI seeks feedback from various stakeholders, including academia, industry, and the public, on research priorities and strategies that the federal government should adopt, particularly in areas less likely to be addressed by the private sector. Comments are due by May 29, 2025, and will inform the strategic direction of federal AI research and development efforts.

Federal Register 鈥 April 22, 2025 

鈥婳n April 22, 2025, the U.S. Department of Commerce initiated a Section 232 national security investigation into the impact of imports of processed critical minerals and their derivative products, following Executive Order 14272. The investigation seeks public input on various factors, including the volume and sources of such imports, potential risks associated with foreign suppliers, and the effects of foreign market practices on U.S. industries. Stakeholders are encouraged to submit comments by May 16, 2025, to inform the assessment of whether these imports threaten national security and to consider potential policy responses.


2025 Congressional Calendar

Tentative 2025 congressional calendar, subject to change. 

Reviewed 2025-05-08