Funding Talks Continue as Concerns Grow Over Spending Freeze
Washington Update
Appropriations
Senate Appropriations Committee Chairwoman Susan Collins (ME) remains optimistic that a "top-line" deal on overall funding totals can be reached despite slow progress in negotiations. Collins acknowledged that while there is no agreement yet, the talks are ongoing. However, Senate Appropriations Committee Vice Chair Patty Murray (WA) warned that President Trump’s funding freeze could undermine bipartisan efforts to keep the government funded beyond March 14, and expressed concern that future administrations could disregard funding agreements. Meanwhile, nonprofits and public health groups are challenging Trump’s freeze on federal aid programs, which could affect more than 400 health programs, transportation projects, and various other initiatives. However, programs such as Pell Grants and direct loans remain unaffected.
Department of Labor Secretary Nominee
Senate Republicans are divided over Lori Chavez- DeRemer’s support for the Democrats’ pro-union legislation, the Protecting the Right to Organize (PRO) Act, which aims to strengthen workers' rights to organize and collectively bargain by making significant changes to labor law, including restrictions on right-to-work laws. Senator Rand Paul (KY) criticized Chavez-DeRemer’s backing of the PRO Act, arguing it opposes national right-to-work laws and preempts state laws. Paul, a lead author of the right-to-work bill, plans to vote against her confirmation and suggested she could lose over a dozen GOP votes, requiring her to rely on Democrats for confirmation. However, Senate Health, Education, Labor, and Pensions (HELP) Chair Bill Cassidy (LA) said he found his conversation with Chavez-DeRemer reassuring despite his colleagues' concerns.
Department of Labor Return to Work
On Wednesday, January 29, House Education and Workforce Committee Chairman Tim Walberg (MI) sent a letter to Department of Labor (DOL) Acting Secretary Vince Micone urging DOL to return to in-person work, following President Trump's January 20 memorandum requiring federal employees to end remote work. Walberg commended the memo and called for immediate implementation, highlighting the slow return to normal operations since DOL ceased regular work due to COVID-19.
Click here to read the full letter.
Child Care Workforce and Facilities Act
On Monday, January 27, Senators Amy Klobuchar (MN) and Dan Sullivan (AK) reintroduced the Child Care Workforce and Facilities Act to combat the nationwide shortage of affordable child care. The bipartisan legislation aims to provide competitive grants to states to train child care workers and build or renovate child care facilities, particularly in rural areas. It addresses the rising cost of child care, which is becoming a barrier to children’s development and parents’ ability to enter the workforce. The bill would offer grants to improve workforce development, expand facilities, and increase the availability and affordability of quality child care. It aims to enhance retention and compensation for child care professionals and address shortages, especially in rural communities and child care deserts. Companion legislation is also being led in the House by Congressmen Josh Harder (CA) and Brian Fitzpatrick (PA).
Click here to access the press release.
Head Start
On Thursday, January 30, Representatives John Garamendi (CA), Don Beyer (VA), Suzanne Bonamici (OR), and 30 other House Democrats sent a letter highlighting payment delays faced by Head Start providers. Despite a White House budget office memo that initially froze federal financial assistance, which was later clarified not to affect Head Start grants and rescinded after a federal judge's ruling, program directors remain uncertain. The letter noted that providers who submitted funding requests between January 23 and January 27 have not received payments, which are typically approved within 24 hours. Additionally, providers with February 1 grant renewals have not received notices. Lawmakers warned that without timely payments, programs may be forced to rely on external funding or credit lines to cover essential expenses.
Click here to access the letter.
Initial Jobless Rate
In the week ending January 25, the advance figure for seasonally adjusted initial claims was 207,000, a decrease of 16,000 from the previous week's unrevised level of 223,000. The 4-week moving average was 212,500, a decrease of 1,000 from the previous week's unrevised average of 213,500. The advance seasonally adjusted insured unemployment rate was 1.2 percent for the week ending January 18, unchanged from the previous week's unrevised rate.
Click here to access the report.
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