PENN HILL GROUP’S WRAP UP – MAY 27, 2025

CONGRESS

The U.S. House of Representatives passed the House GOP’s budget reconciliation bill on a 215 to 214 vote.

House Appropriations Committee Chair Tom Cole (R-OK) announced the markup schedule for the House appropriations bills for fiscal year (FY) 2026. The Labor, Health and Human Services, Education, and Related Agencies (LHHS) appropriations bill is set for markup in the Subcommittee on July 21 and in the full House Appropriations Committee on July 24.

The Senate Health, Education, Labor, and Pensions Committee advanced several U.S. Department of Education (ED) and U.S. Department of Labor (DOL) nominations to the full Senate.

Senate Appropriations Committee Vice Chair Patty Murray (D-WA), House Appropriations Ranking Member Rosa DeLauro (D-CT) and Senate LHHS Appropriations Subcommittee Ranking Member Tammy Baldwin (D-WI) sent a letter to Secretary Linda McMahon expressing concern over delays in ED’s release of FY 2025 K-12 formula funding allocations.

ADMINISTRATION

Sec. McMahon shared her proposed supplemental priorities for ED discretionary grants: evidence-based literacy, expanding school choice and returning education to the States. These supplemental priorities have been published in the Federal Register and are now open for a 30-day public comment period.

The U.S. Department of Justice (DOJ) launched the Civil Rights Fraud Initiative to actively investigate and prosecute Federal grant recipients who violate Federal civil rights laws.

U.S. Secretary of Education Linda McMahon announced that in FY 2025, ED will fund the Charter Schools Program at $60 million more than the FY 2024 level, bringing the total to $500 million.

COURTS

A district judge halted President Trump’s Executive Order aimed at shutting down ED, blocked his related reduction in force affecting nearly half of agency staff, ordered the rehiring of dismissed staff and prohibited ED from transferring the management of Federal student loans and special education functions out of the Department.

The Supreme Court justices split 4 to 4 on Oklahoma Statewide Charter School Board v. Drummond, allowing a lower court’s decision to stand, which blocked public funding for what would have been the country’s first religious public charter school in Oklahoma. Justice Barrett recused herself from this decision.

A district judge issued a preliminary injunction, blocking the U.S. Department of Energy from instituting a 15 percent cap on indirect research costs.

In American Federation of Teachers vs. U.S. Department of Education, ED filed a status report that indicated that over 1.9 million income-driven repayment (IDR) applications were not processed as of April 30.