Washington Update

President Trump Signs Executive Order to Dismantle U.S. Department of Education 
On Thursday, March 20, President Trump signed a long-anticipated executive order (EO), “Improving Education Outcomes by Empowering Parents, States, and Communities” to begin the process of dismantling the U.S. Department of Education (ED).” Both the White House and U.S. Secretary of Education Linda McMahon have acknowledged that a full closure and transfer of responsibilities would require congressional action, though there are certainly actions the administration can take on its own to substantially reduce the department’s operations and staffing. 

The Big Picture: APLU President Mark Becker released a statement underscoring areas of U.S. Department of Education responsibility that are vital to the nation, including administering student aid and other key programs funded by Congress, publishing higher education outcomes data, and evidence-based research that advances teaching and learning. APLU also noted the need for reform given past tendencies of the U.S. Department of Education to overreach, while expressing interest in working with Secretary McMahon and Congress on finding the right balance. 

On March 11, the U.S. Department of Education initiated a reduction in force to reduce staffing by nearly 2,000 employees, or approximately 50 percent. The Trump administration also indicated certain functions of the Department would be moved to the Small Business Administration, including student loans. Following the reduction in force, 21 Democratic state attorneys general filed a lawsuit and subsequent motion for a preliminary injunction. Two separate lawsuits have been filed by coalitions of associations in the District Court for Massachusetts and the District Court for Maryland.  

APLU previously wrote a letter to Secretary McMahon underscoring the potential impacts that the reduction in force could have on aspects of the Department’s mission that are of vital importance to public universities. APLU is developing a list of questions for the Department and plans to productively engage on concerns of member institutions.  

Congress Passes Continuing Resolution, Prevents Government Shutdown 
On Friday, March 14, the Senate passed House Republicans’ continuing resolution package to continue federal funding through the end of Fiscal Year 2025 (FY25). Overall, the bill would cut non-defense spending by a net $13 billion and increase defense funding by $6 billion, compared to Fiscal Year 2024. APLU’s Office of Governmental Affairs developed an analysis document with details on dynamics specific to public research universities. 

Reconciliation Update 
The Senate could consider an updated budget resolution as soon as this week. The updated resolution includes instructions that allow both the House and Senate to set their own committee spending or saving thresholds for reconciliation, bypassing a hurdle between the chambers.  

Remaining hurdles to a final agreement include potential cuts to mandatory programs, committee spending or saving levels, whether and to what extent to offset the expense of tax expenditures within the final package, and the scope and length of tax extensions. As a resource to member institutions, APLU created a list of the proposed reconciliation provisions from the House Budget Committee with the most direct impact to higher education. 

White House Freezes $3 Billion in Emergency Funds Impacting Science Agencies 
The Trump administration announced it intends to block the release of nearly $3 billion out of the $12.4 billion in emergency spending carried through in the Full-Year 2025 Continuing Appropriations and Extensions Act. The emergency spending had been agreed to as part of a “side deal” to boost nondefense funds above discretionary budget caps enacted in 2023. Bloomberg obtained a memo to President Trump from Office of Management and Budget (OMB) Director Russ Vought, which provides that the funds that won’t be released include: 

• $234 million for National Science Foundation research facilities and construction. 

• $100 million for National Oceanic and Atmospheric Administration procurement. 

• $30 million for Economic Development Administration grants. 

Effectually, these agencies will now have to incorporate these cuts into their final FY25 spending plans, with only six months left in the fiscal year. Under federal law, the president must implement either all or none of the emergency spending authorized by Congress, leaving the legality of the move questionable. 

The president did however approve portions of NASA exploration ($450 million) and construction ($250 million) accounts as emergency spending. Senate Appropriations Chair Susan Collins (R-ME) and Ranking Members Patty Murray (D-WA) sent a letter to OMB Director Vought opposing this action.  

Grants Terminated Across Federal Research Spectrum 
Over the last several weeks a number of agencies announced grant and contract cancellations for a variety of reasons, such as deeming grants redundant or misaligned with the Trump administration’s core priorities. In some cases, such as at the EPA, agencies have changed their terms and conditions for grants creating an easier pathway for cancellations. Agencies with sweeping announcements of grant and contract cancellations to date include: 

• $20B from EPA: EPA changed its terms and conditions for all grants allowing it to terminate funding “if an award no longer effectuates the program goals or agency priorities.” This move comes as EPA Administrator Lee Zeldin attempts to claw back $20 billion through the Greenhouse Gas Reduction Fund and terminate environmental justice awards.  

• $580M from DOD: DOD is eliminating grants in areas of diversity, equity, and inclusion and related social programs, climate change, social science, Covid-19 pandemic response, and other areas.  

• $420M from NASA: NASA is terminating contracts the agency says are redundant or “misaligned” with its core priorities but has not provided details about what contracts will be ended.  

• Upwards of $22B DOE: DOE is targeting cancellation of grants and loans under the Inflation Reduction Act, including any program or project that has spent less than 45 percent of its appropriated funding. NIH termination notices are being sent to a wide range of grantees related to vaccine hesitancy, health equity, climate change and other topics.  

The U.S. Department of Health and Human Services Announces Agency Restructuring 
On March 27, the U.S. Department of Health and Human Services announced an agency restructuring on. This includes a reduction of 10,000 full-time employees, a consolidation of 28 HHS divisions into 15 with a new Administration for a Healthy America, and the establishment of new priorities on safe, wholesome food, clean water, and the elimination of environmental toxins aimed to end America’s epidemic of chronic illness. The restructuring is in accordance with President Trump’s Executive Order, “Implementing the President’s ‘Department of Government Efficiency’ Workforce Optimization Initiative.”  Secretary Kennedy also released a video message and fact sheet on the announcement. 

Administration Shares Plans for USAID-State Department Merger with Congress 
The Trump administration shared plans with Congress for the permanent dissolution of USAID, according to reporting from Devex. While USAID has undergone a high-profile dismantling, U.S. law requires the administration to consult with Congress on agency reorganization plans and it takes an act of Congress to formally end the agency. This outreach is part of that process.  

Under the plan, USAID would be abolished as an independent agency, and its programming absorbed into the Department of State. The programming currently administered by the Office of Humanitarian & Food Assistance and the Bureau of Resilience & Food Security would be rolled into a new “Office of Global Food Security” at State, while many global health programs will be moved to State Department’s “Bureau of Global Health Security and Diplomacy.” The administration also proposes eliminating nearly all USAID employees across this fiscal year and holding an independent hiring process to staff the newly created departments at State. Ultimately, it will take an act of Congress to formally end the agency, the prospects of which remain uncertain. 

DETERRENT Act Passes U.S. House of Representatives 
On March 27, the U.S. House of Representatives voted 241 to 169 to pass the DETERRENT Act, which expands the oversight and disclosure requirements related to foreign influence in higher education. APLU sent a letter in opposition to the legislation, citing concerns that the bill would impede innovation that is essential to U.S. competitiveness and add substantial costs to institutions that drive growth in administrative compliance rather than support for students and science. It is likely that the Senate will introduce their own version of the DETERRENT Act this week.  

During the House floor debate last week, Education and Workforce Committee Ranking Member, Bobby Scott (D-VA), read from APLU’s letter and the higher education community’s joint association letter, entering both into the record. APLU continues to underscore the efforts made by universities and federal agencies to expand research security efforts since 2023 and raising the following concerns: 

• The DETERRENT Act would impede important international collaborations and be duplicative of other federal research agencies’ efforts to appropriately strengthen research security and foreign partnership reporting requirements. 

• The bill would inappropriately create a new and highly unusual role for the U.S. Department of Education in making determinations about the suitability of international research, education, and cultural partnerships despite its lack of expertise in scientific research. 

• The reporting requirements under the legislation would needlessly mandate disclosure of nonwork related gifts from any country, even from a family member. Records of such gifts would be required to be in a searchable database maintained by institutions. For public universities, such reporting would potentially be subject to open records requests that would allow foreign actors to then identify leading researchers to target foreign influence operations. 

Federal Judge Orders U.S. Department of Education to Restore Teacher Training Grants 
A judge for the District Court for Maryland ruled that ED acted illegally when it terminated grants last month in the Teacher Quality Partnership, Supporting Effective Educator Development, and Teacher and School Leadership Incentive Programs.  

The order states: “The harms plaintiffs identify also implicate grave effect on the public: fewer teachers for students in high-need neighborhoods, early childhood education and special education programs.” The judge ordered ED to reinstate the grant awards and not terminate any of the aforementioned program awards in violation of the Administrative Procedures Act. 

American Federation of Teachers Sues U.S. Department of Education for Freezing Income-Driven Repayment and Public Service Loan Forgiveness 
Last week, the American Federation of Teachers filed litigation against the U.S. Department of Education for removing the Income-Driven Repayment and Public Service Loan Forgiveness applications, and for ordering loan servicers to halt processing for these programs. The lawsuit accuses ED of taking “arbitrary and capricious agency action” in violation of the Administrative Procedure Act. For more information, view the plaintiffs press release and fact sheet.   

APLU President Endorses Darío Gil for Undersecretary for Science and Innovation at DOE 
On March 28, APLU President Mark Becker wrote to the Chairman and Ranking Member of the Senate Committee on Energy and Natural Resources urging the Committee to advance the nomination of Darío Gil as Undersecretary for Science and Innovation at the Department of Energy. Mr. Gil currently serves as chair of the National Science Board and is the director of IBM Research. In the letter, President Becker expresses hope that Mr. Gil will be able to “build bridges between the private sector, federal research agencies, and the academic research community as we collectively strive toward the goal of maintaining U.S. scientific leadership.” 

APLU, Student Aid Alliance Urge Congress to Support FY26 Student Aid Funding  
APLU joined the Student Aid Alliance in a community letter urging the House and Senate Appropriations Committees to “protect and maintain funding for federal student aid programs in fiscal year 2026.” The letter aligns with APLU’s FY26 appropriations priorities to provide increases to the maximum Pell Grant, Federal Work-Study, Supplemental Educational Opportunity Grants, TRIO, GEAR UP, and Graduate Assistance in Areas of National Need. It also suggests reconciliation as one option to shore up Pell. 

APLU Endorses Tax Free Pell Grant Act 
APLU joined the other presidential associations in endorsing the Tax Free Pell Grant Act, ahead of introduction by Representatives Lloyd Doggett (D-TX) and Mike Kelly (R-PA). The bill, a longstanding APLU tax priority, resolves the conflict between the American Opportunity Tax Credit (AOTC) and Pell Grant awards by repealing the taxability of Pell Grants and enables hundreds of thousands of low-income students to maximize their federal aid. Under current law, students must deduct their Pell Grant award from eligible expenses prior to utilizing the AOTC. By making the Pell Grant tax-free, students can claim the full AOTC.