CONGRESS

The U.S. Senate Appropriations Committee held a markup of the Labor, Health and Human Services, and Education (LHHS) fiscal year (FY) 2026 Appropriations bill. The bill was passed by a roll call vote of 26-3.

Senate Majority Leader John Thune (R-SD) filed cloture on the nomination of Nicolas Kent for the U.S. Department of Education (ED) Under Secretary.

ADMINISTRATION

ED announced it would be releasing the remaining $5 billion of education funding for the five formula programs that the agency was withholding for review. Politico reported that the Administration has installed “guardrails” requiring programs to use the money in compliance with President Trump’s Executive Orders.

ED notified chief State school officers inviting them to implement existing statutory flexibilities and seek waivers from statutory and regulatory provisions by using the authority outlined in the Elementary and Secondary Education Act (ESEA).

The U.S. Department of Justice (DOJ) issued guidance that further defined the Administration’s position on what practices and programs the DOJ has determined as discriminatory, including diversity, equity and inclusion programs.

ED Secretary Linda McMahon, at the National Governor’s Association Summer meeting, stated that implementation of Workforce Pell Grants will be jointly administered with the U.S. Department of Labor (DOL).

The Administration reversed its decision to withhold the distribution of funds for the National Institutes of Health, ultimately releasing the money to the agency for research grants, training awards, and research and development contracts.

ED Secretary McMahon announced that President Trump’s Deputy Education Secretary nominee, Penny Schwinn, is withdrawing her nomination and will be taking on an advisory role at the Department of Education.

COURTS

Brown University announced a settlement with the Trump Administration to restore over $500 million in Federal research funding that had previously been frozen.

A Federal judge in New York blocked the Trump Administration’s cancellation of $175 million in National Endowment for the Humanities grants allegedly related to diversity, equity and inclusion; gender ideology; or environmental justice.

EVENTS

Penn Hill Group plans on providing clients with a summary of the following event next week:

Negotiated Rulemaking Public Hearing – Thursday, August 7, 2025 (Virtual) – 9:00 a.m. to 12:00 p.m. ET and 1:00 p.m. to 4:00 p.m. ET