House Committee Advances Trump's Budget Bill

 

Washington Update

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May 19, 2025

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Appropriations

On Sunday, May 18, the House Budget Committee advanced President Donald Trump’s multitrillion-dollar domestic policy package — just two days after a group of conservatives voted to reject it. The committee approved the bill 17-16 along party lines, with the four Republicans who opposed the bill on Friday voting ‘present.’ These GOP members cited concerns over the package’s projected $3.3 trillion deficit increase over the next decade and criticized its emphasis on spending over savings. 

 

The 300-page reconciliation package is to undergo further changes before it secures the votes to pass the full House. It also faces significant hurdles in the Senate, where Republicans have said it won’t pass without major revisions. The bill proposes sweeping policy changes across nutrition, labor, health care, and education programs. It also includes temporary tax exemptions for tipped wages and overtime pay through the 2028 filing year. 

 

The Energy and Commerce Committee introduced new work requirements for Medicaid eligibility for low-income adults without dependents, while the Agriculture Committee proposed stricter work requirements for adults under 65 receiving Supplemental Nutrition Assistance Program (SNAP) benefits.

 

On Wednesday, May 14, the House Agriculture Committee voted 29–25 along party lines to approve a reconciliation bill that would reduce SNAP spending by up to $300 billion over 10 years while increasing farm program funding by $60 billion. The proposal introduces a cost-sharing structure requiring states to cover at least 5 percent of SNAP benefit costs beginning in FY28, with that share increasing to as much as 25 percent for states with higher payment error rates. Additional changes include tightening eligibility rules for able-bodied adults without dependents, limiting future updates to the Thrifty Food Plan used to calculate benefits, shifting more administrative costs to states, and restricting the inclusion of certain living expenses — like internet costs — in benefit calculations. Other savings stem from eliminating the National Education and Obesity Prevention Program, closing benefit loopholes, and changing the general SNAP work requirement age from over 15 and under 60 to over 17 and under 65.

 

In total, the changes are projected to generate between $290 billion and $300 billion in savings — exceeding the committee’s original $230 billion target. The bill also includes higher reference prices for crop supports, expanded crop insurance subsidies, and additional USDA program funding. Committee Chairman Glenn Thompson (PA) said the proposal aims to strengthen program integrity, control federal costs, and better support farmers and rural communities. He described the state cost-sharing model as a way to encourage more efficient program management. Senate Agriculture Committee Chairman John Boozman (AR) has expressed interest in similar tools to support farmers, though the Senate’s budget proposes only $1 billion in SNAP reductions — signaling likely revisions ahead.

 

Democrats offered multiple amendments to preserve SNAP funding and invest in food access, local sourcing, and agricultural research, but all were rejected on party-line votes. They warned the proposal could reduce access to food assistance and complicate efforts to pass a bipartisan farm bill. 

 

According to House Budget Chair Jody Arrington (TX), deliberations are ongoing and will continue this week as lawmakers prepare the bill for the floor. House Speaker Mike Johnson said that the House Rules Committee is set to consider the megabill the middle of this week with the full House taking it up at the end of the week. 

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Department of Labor

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On Thursday, May 15, U.S. Department of Labor (DOL) Secretary Lori Chavez-DeRemer testified before the House Appropriations Subcommittee on Labor, Health and Human Services, and Education. Throughout the hearing, Democrats pressed her on workforce reductions, program changes, and enforcement efforts — particularly within the Wage and Hour Division. Secretary Chavez-DeRemer declined to provide specific answers on several topics, citing pending litigation, and did not give updated figures on agency staffing or resignations related to recent exit incentive offers. Meanwhile, the department’s Chief Human Capital Officer, Sydney Rose, has confirmed she accepted an incentive offer and is transitioning out of her role, though she remains on the job for now.

 

The most intense exchange came between Chavez-DeRemer and Congressman Josh Harder (CA), who accused the administration of defunding labor enforcement and neglecting reports of child labor abuses. Chavez-DeRemer denied eliminating the Wage and Hour Division and said she could not speak to specific cases.

 

Secretary Chavez-DeRemer will testify this Thursday, May 22, before the Senate Appropriations Committee on the president’s FY26 budget request.

 

Department of Education

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Looking ahead, Education Secretary Linda McMahon is scheduled to testify before House appropriators on Wednesday, May 21, regarding the administration’s FY26 budget request for her agency. The proposed budget would cut the Department of Education’s funding by $12 billion, bringing it to $66.7 billion, and includes plans to consolidate K–12 grant programs, increase charter school funding, reduce funding for the civil rights office, and cut programs such as TRIO and Federal Work-Study. The administration has also proposed dismantling the Department of Education as part of a broader federal restructuring effort.

 

Workforce & Innovation Funding Support Letters

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On Tuesday, May 13, coalitions of business leaders and economic organizations released two community sign-on letters urging Congress to fully fund key federal programs that support regional innovation and workforce development. 

 

The first letter, signed by over 40 organizations, calls for at least $250 million in FY26 appropriations for the Regional Technology and Innovation Hubs (Tech Hubs) program. Authorized at $10 billion under the bipartisan CHIPS and Science Act of 2022, the program has received less than 8% of that funding to date. Nearly 400 regions applied in the first round, but only a small number have received implementation grants. The letter emphasizes Tech Hubs’ role in advancing U.S. competitiveness, supporting critical technology sectors, and enhancing national security.

 

The second letter, signed by nearly 30 organizations, urges Congress to appropriate $50 million in FY26 for the Economic Development Administration (EDA)’s Workforce Training Grants and State Grant Pilot Program. Reauthorized on a bipartisan basis last session, the program aims to support employer-driven strategies to address skill gaps and connect workers to in-demand jobs. These investments are positioned as critical to regional economic resilience, global competitiveness, and national security.

 

Both letters highlight strong bipartisan support for these programs and stress their importance in strengthening local economies and empowering the American workforce.

 

Click here to access the workforce funding support letters.

 

Click here to access a video of Secretary Chavez-DeRemer’s hearing in the House.

 

Click here to watch Secretary Chavez-DeRemer’s Senate Appropriations Committee hearing.

 

Click here to access the Department of Education hearing.

Senate HELP Committee
 

On Thursday, May 22, the Senate Health, Education, Labor, and Pensions (HELP) Committee is set to vote on several labor-related nominations. The nominees include Henry Mack for Assistant Secretary of the Employment and Training Administration; Wayne Palmer to lead the Mine Safety and Health Administration; Julie Hocker to head the Office of Disability Employment Policy; and Marco Rajkovich for the Federal Mine Safety and Health Review Commission. 

 

Click here to access the committee website for more information.

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House Education and Workforce Subcommittee Hearing

On Tuesday, May 20, the House Education and the Workforce Subcommittee on Workforce Protections will hold the hearing “Empowering the Modern Worker” at 10:15 a.m. (ET). The hearing will be livestreamed. Witnesses for the hearing include 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. 

Click here to access more information about the hearing.

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2025 Workforce Innovation and Opportunity Act (WIOA) Title I Allotments

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On Monday, May 19, the U.S. Department of Labor Employment and Training Administration released a notice announcing allotments for PY 2025 for WIOA Title I Youth, Adult, and Dislocated Worker Activities programs; allotments for Employment Service (ES) activities under the Wagner-Peyser Act for PY 2025, and the allotments of Workforce Information Grants to States for PY 2025.

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Click here to access the notice.