Budget Talks Intensify Amid Shutdown Concerns
Washington Update
Appropriations
On Friday, February 7, Senate Budget Chair Lindsay Graham released the text of his budget resolution to begin work on the Senate’s two-bill strategy to enact President Trump’s domestic policy agenda. The Senate Budget Committee will meet this Wednesday and Thursday to debate and vote on the bill which would authorize $85.5 billion in increased spending per year — fully offset by a projected $85.5 billion in funding cuts. The resolution authorizes a number of committees — including the House Committee on Education and Workforce and the Senate Health, Education, Labor and Pensions — to find no less than $1 billion in cuts (as a floor, not a ceiling) to pay for the bill, and sets a March 7 deadline for Senate committee chairs to deliver their plans for those cuts. The Senate blueprint does not tee up a bill to raise the debt ceiling.
Meanwhile, following a meeting with President Trump on Friday, Speaker of the House Mike Johnson (LA) was expected to unveil the House Republicans' party-line agenda framework, however, internal GOP divisions have delayed its release. The House Budget Committee may mark up the budget resolution as early as tomorrow, but disagreements over spending cuts and deficit limits are creating obstacles. Budget hawks, led by House Budget Committee Chair Jodey Arrington (TX) and Congressman Chip Roy (TX), are pushing for deeper cuts and strict deficit caps that could hinder House Ways and Means Committee Chair Jason Smith’s (MO) tax overhaul ambitions. The tentative $4.7 trillion budget figure would only allow for an extension of expiring tax cuts, falling short of broader tax reforms.
This scenario officially puts the Senate on a separate, faster, path forward than the House, With just over five weeks to fund the government before the March 14 deadline, bipartisan negotiations face additional hurdles due to Trump’s funding freezes and agency cuts. House Appropriations Chair Tom Cole (OK) highlighted efforts by the top four appropriators to reach a deal, but failure to agree on overall military and non-defense funding totals by next week could trigger a stopgap measure or a government shutdown. Previously agreed-upon funding caps, set under former Speaker Kevin McCarthy (CA) and former President Joe Biden, are now seen as politically irrelevant, with Cole noting shifting dynamics under new leadership in both the House and the White House.
Meanwhile, the confirmation process for Russ Vought to lead the Office of Management and Budget under Trump continues, with the Senate advancing his nomination to debate in a 51-46 vote.
Click here to read the Senate Budget Resolution Numbers.
Click here to read the draft Senate Budget Resolution Text.
Department of Labor Secretary Nominee
On Wednesday, February 12, the Senate Health, Education, Labor, and Pensions (HELP) Committee is expected to take up the nomination of Lori Chavez-DeRemer, President Trump’s pick to lead the U.S. Department of Labor (DOL). The former Congresswoman has met with lawmakers from both parties, including HELP Chair Bill Cassidy (LA) and Senate Minority Leader Chuck Schumer (NY), but her hearing was delayed due to other high-profile confirmations, such as Pete Hegseth for Defense Secretary.
During her time in Congress, Chavez-DeRemer supported the Protecting the Right to Organize (PRO) Act, which strengthens workers' rights to unionize, drawing criticism from the National Right to Work Committee, which has launched a social media campaign against her confirmation.Senator Rand Paul (KY) has also cited this stance as a reason to oppose her nomination.
House Education and Workforce Committee Hearing
On February 5, 2025, the House Education and Workforce Committee held a hearing titled "The State of American Education," focusing on the nation's education system from preschool through higher education, as well as workforce development. Committee Chairman Tim Walberg (MI) opened the discussion by emphasizing concerns over students graduating without necessary skills for success, citing the replacement of core subjects like math and reading with divisive ideologies, partially fueled by federal spending. Witnesses for the hearing included President of Parents Defending Education Nicole Neily; American Enterprise Institute Senior Fellow Dr. Preston Cooper; President of the Society for Human Resource Management Johnny C. Taylor, Jr.; and President and Director-Counsel at NAACP Legal Defense Fund Janai Nelson.
During his testimony, Taylor stressed the mismatch between job openings and the available skilled workforce. The hearing highlighted the need for reforms in both education and workforce systems, with the Committee developing bipartisan solutions, including expanding Pell Grants for short-term workforce education programs, to better serve students, parents, and employers.
Click here to access the hearing and witness testimony.
Apprenticeship Pathways Act
On Thursday, February 6, U.S. Senators Martin Heinrich (NM) and Jerry Moran (KS) introduced the bipartisan Apprenticeship Pathways Act, which aims to expand apprenticeship opportunities and technical education for high school students. The bill focuses on high-demand sectors such as building trades, healthcare, manufacturing, technology, telecommunications, and early childhood education and seeks to address workforce shortages and create a sustainable talent pipeline by providing students with hands-on experience and in-demand skills. It directs the U.S. Secretary of Labor to offer grants to industry intermediaries to develop apprenticeship programs based on local and national workforce trends. It also includes provisions for pre-apprenticeship opportunities, which will help young people, especially in underserved communities, gain access to high-wage careers.
Heinrich emphasized the importance of career-connected learning, stating that expanding access to apprenticeships can help strengthen local economies and create career opportunities. Moran highlighted the value of aligning tech training with industry needs to meet workforce demands in Kansas.
Click here to read a press release on the bill.
Department of Education
On Monday, February 10, the U.S. Department of Education announced the reversal of additional reporting requirements related to the Carl D. Perkins Career and Technical Education Act of 2006 (Perkins V). These requirements, introduced in late 2024, would have obligated state and local career and technical education (CTE) programs to revise their Perkins V State Plans outside the standard five-year process and meet expanded reporting obligations as part of their Consolidated Annual Reports.
In a January 24 letter, Advance CTE and the Association for Career and Technical Education (ACTE) raised concerns that the reporting requirements exceeded statutory intent and could create administrative burdens without clear benefits for learners. Critics of the requirements also expressed concerns about potential disruptions to state and local CTE programs, reduced data quality, and misalignment with existing education and workforce systems. To address these concerns, the Department of Education will reinstate the previous versions of the Perkins State Plan Guide and the Consolidated Annual Report Guide, publish a notice in the Federal Register, and communicate the changes to state CTE directors.
On February 3, President Trump signed a proclamation recognizing February 2025 as Career and Technical Education Month, highlighting the importance of CTE programs in equipping students with workforce skills.
Click here to read the full press release.
Click here to access the January 24th letter.
Unemployment Rate
On Friday, February 7, the U.S. Department of Labor (DOL) Bureau of Labor Statistics (BLS) released the January jobs report, which showed nonfarm payrolls rose by 143,000, fewer than economists expected, but the unemployment rate inched down to 4% from 4/1%. The report included routine annual data adjustments, in which November and December payroll levels were revised up by a combined 100,000. The BLS also revised downward the monthly pace of job gains for 2024, to an average of 166,000 from a previous estimate of 186,000.
Click here to access the report.
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