Reconciliation Bill Clears House, Faces Hurdles in Senate

 

Washington Update

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May 27, 2025

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Appropriations

On Thursday, May 22, in a vote of 216-214, the House passed President Donald Trump’s multitrillion-dollar domestic policy package along party lines. House Appropriations Chair Tom Cole (OK) indicated that Republicans intend to move quickly on FY26 funding bills, aiming to pass some before the August recess and bring others to the House floor in June or July. 

 

Despite House passage, the bill faces significant hurdles in the Senate. Senator Rand Paul (KY) has expressed his opposition to the reconciliation bill because it raises the debt limit. Senator Ron Johnson (WI) is strongly opposing the House Republicans’ reconciliation bill, warning it will increase the national deficit and calling it fiscally irresponsible. He claims there are enough like-minded GOP senators to block the bill unless deeper spending cuts are made and deficit reduction becomes a priority. 

 

The House Appropriations Committee is tentatively scheduled to consider the FY26 Department of Education funding bill in July, with a subcommittee markup on July 21 and full committee review on July 24. During a May 21 budget hearing, U.S. Secretary of Education Linda McMahon outlined priorities that include returning greater control of education policy to states. While some lawmakers supported a reduced federal role, others raised concerns about proposed cuts, particularly a nearly $1.6 billion reduction to TRIO and GEAR UP — programs that assist low-income students in preparing for college. Democratic members also raised concerns about the status of FY25 funds — questioning the Department’s decision to pause or discontinue about $1 billion in mental health grants for schools. The department noted plans to reassess and possibly re-compete these grants, which were funded under the Bipartisan Safer Communities Act. Secretary McMahon emphasized that the department is reviewing all programs and will comply with legal obligations regarding appropriated funds.

 

Separately, college leaders warned senators that proposed changes in the House GOP’s reconciliation bill could reduce higher education access for low-income students. The plan would redefine full-time enrollment for Pell Grant eligibility and make students enrolled less than half-time ineligible. Over six million students currently receive Pell Grants, and the Congressional Budget Office estimates that more than half could see reduced awards under the proposal. Education officials expressed concern that changes to Pell Grants, combined with proposed limits on student loan borrowing, could significantly impact students with the greatest financial need. The Senate has not yet released its version of the bill.

Senate Appropriations Subcommittee Hearing

 

On Thursday, May 22, U.S. Secretary of Labor Lori Chavez-DeRemer testified before the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, fielding tough questions for both sides of the aisle — especially on the Trump Administration's stance on the Job Corps program. The Administration has proposed eliminating the program in its FY26 budget, citing concerns over cost-effectiveness and participant outcomes. Senate Appropriations Chair Susan Collins (ME) expressed strong opposition to the proposed cuts, highlighting the impact of the program on vulnerable youth in her state and urging the department to resume enrollment at Maine's Job Corps centers. She emphasized that the program has helped young people overcome significant challenges and attain career success. Senator Jack Reed (RI) also criticized a Department of Labor (DOL) performance report, suggesting it misrepresented the program’s effectiveness. Chavez-DeRemer responded by saying the report was not intended to be misleading but reflected the administration’s concerns about the program’s sustainability and noted that while improvements are possible, the future of Job Corps remains under review.

 

During the hearing, Secretary Chavez-DeRemer spoke in favor of the Administration’s proposal to consolidate workforce development funding into block grants and expand registered apprenticeships. While there is bipartisan support for expanding apprenticeships, several lawmakers questioned how the Administration's goals — increasing the number of annual apprenticeships from approximately 700,000 to 1 million — aligns with the proposed funding cuts to programs that currently support apprenticeship infrastructure. Concerns were also raised over the lack of detailed information about the proposed block grant model and reductions in departmental staffing.

 

Click here to watch a recording of the Senate hearing.

 

Letter on Modernizing Federal Regulations
 

On Thursday, May 22, House Education and Workforce Committee Chairman Tim Walberg (MI), along with several other GOP committee members, sent a letter to U.S. Department of Labor (DOL) Secretary Lori Chavez-DeRemer requesting that her agency modernize federal regulations by making electronic delivery the default for benefit providers to communicate with Employee Retirement Income Security Act (ERISA) health and welfare plan participants. The lawmakers argued that the current reliance on physical mail is outdated and creates unnecessary administrative burdens. They emphasized that shifting to electronic delivery would reduce costs for employers and health plans, improve access to benefit information for workers, and minimize reliance on paper-based communication. The letter calls on DOL to prioritize rulemaking to establish a safe harbor for default electronic delivery, noting the need for coordination with the Departments of Health and Human Services and the Treasury.

 

Click here to read the full letter.

Letter on TRIO Grants
 

On Thursday, May 22, Senator Jeanne Shaheen (NH) and Senate Appropriations Chair Susan Collins (ME) sent a letter to U.S. Department of Education Secretary Linda McMahon urging her to immediately release funding for TRIO Upward Bound programs, which support underrepresented high school students in preparing for college. In the letter, the senators expressed serious concern over delays in funding for the upcoming program year — emphasizing that some programs set to begin June 1 are at risk of being canceled as well as potential staff layoffs if funds are not received soon. They highlighted that current Upward Bound grant recipients were awarded five-year grants in 2022 and should be able to count on their fourth-year funding without disruption. The delay is creating “extreme uncertainty” and what the senators call an “existential crisis” for programs that serve thousands across the country. 

 

Click here to access the letter.

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House Subcommittee Hearing
 

On Tuesday, May 20, the House Education and Workforce Subcommittee on Workforce Protections held the hearing Empowering the Modern Worker. Witnesses for the hearing included American Trucking Associations Vice President for Workforce Policy Nathan Mehrens; freelance writer and editor Kim Kavin; National Employment Law Project Director of Work Structures Laura Padin; and Mercatus Center and George Mason Senior Research Fellow Dr. Liya Palagashvili. 

 

The hearing examined legislative options to protect independent contractors and offer optional benefits. Subcommittee chairman Ryan Mackenzie (PA) and witnesses raised concerns about recent state laws and federal rules that reclassify contractors as employees, warning of economic consequences and reduced worker flexibility. Testimony emphasized that many workers prefer independent status for the control it offers and often use it to supplement traditional employment. Lawmakers and experts also discussed the burden of shifting regulations and the potential of portable benefits programs. Proposed legislation, such as the Modern Worker Empowerment Act, was presented as a solution to preserve independent work arrangements.

 

Click here for more information about the hearing.
 

Protecting Older Workers Against Discrimination Act

On Tuesday, May 20, a bipartisan group of lawmakers reintroduced the Protecting Older Workers Against Discrimination Act (POWADA) in both chambers of Congress. The legislation aims to strengthen protections against age discrimination by restoring the legal standard used before the 2009 Gross v. FBL Financial Services Supreme Court decision. That ruling raised the burden of proof for age discrimination claims, requiring workers to show age was the decisive factor in adverse employment actions rather than just a contributing factor. POWADA would amend several federal laws to reinstate the earlier "mixed-motive" standard. This change would allow workers to pursue claims using various forms of admissible evidence and align age discrimination standards with those for other protected categories such as race and national origin.

 

Click here to read the full text of the bill.

 

Click here to read a fact sheet on the bill.

 

Click here to read a section-by-section summary of the bill.

Click here to read the press release on the Senate bill.