ADVOCACY & POLICY UPDATE - February 9, 2026

Funding Deal Signed While DHS Talks Continue

Appropriations

On Tuesday, February 3, President Donald Trump signed a $1.2 trillion spending package into law after the House approved it in a 217-214 vote, ending a brief partial government shutdown that began early Saturday when funding lapsed for several federal agencies following the Senate’s passage of an amended measure. 

The bill includes $13.7 billion for the Department of Labor (DOL), an increase of $4.1 billion above the Republican House bill, and funds the U.S. Department of Education (ED) at roughly $79 billion for FY26, largely maintaining existing federal education funding levels through September. It preserves funding streams that support college access, services for disadvantaged students, and K-12 and career-connected programs, and does not adopt a proposal to consolidate multiple K-12 programs into a single state block grant.

The statutory text requires ED to distribute formula grants — including for high-poverty schools, special education, and career and technical education — by the July 1 obligation deadline, a provision added after nearly $7 billion in education funding was withheld last summer and later released. It also addresses debate over potential reorganization of the Department. An accompanying explanatory statement, separate from the statutory appropriations language, states ED lacks authority under existing appropriations and authorizing laws to transfer its responsibilities to other agencies, and directs the agency to provide Congress biweekly briefings on any interagency agreements. The provision reflects a negotiated compromise after some lawmakers sought binding legislative language explicitly blocking transfers of education programs across the federal government.

Since the restriction appears only in explanatory report text rather than statute, it does not create a formal legal prohibition. An Office of Management and Budget (OMB) official acknowledged the report language but noted it is not appropriations language or law. 

The broader legislation funds most federal agencies through September, marking the second shutdown resolution in four months, but leaves the Department of Homeland Security (DHS) funded only temporarily through this week. Lawmakers are now negotiating a separate agreement before the February 13 DHS deadline, with Democrats seeking changes to immigration enforcement policies and Republican leaders pushing for a longer-term funding arrangement.

Only 21 House Democrats voted in favor of the overall package, underscoring divisions that could complicate negotiations over DHS funding. House Minority Leader Hakeem Jeffries (NY) and Senate Minority Leader Chuck Schumer (NY) planned discussions to coordinate strategy, as House Democrats requested a larger role in talks with Speaker of the House Mike Johnson (LA) and Senate Majority Leader John Thune (SD).

Departments of Education/Labor Alignment

The Trump Administration is using administrative actions to shift responsibilities out of the U.S. Department of Education (ED) — part of a broader effort to eliminate the agency. But early implementation has revealed logistical and technical challenges for the roughly 60 ED employees who manage higher education programs that have been temporarily reassigned to the U.S. Department of Labor (DOL), one of several agencies expected to absorb education-related duties. Staff reported building access and IT connectivity problems, and the DOL is still adapting its grant-management systems to handle billions of dollars in education funding. Because the two departments use different grant platforms, new processes must be built before some programs can be transferred. To avoid delays, at least one upcoming grant competition will remain in the ED’s system for now.

The transferred employees oversee major higher-education initiatives serving low-income students, students with disabilities, and veterans, including the TRIO programs funded at more than $1 billion annually. Officials have not yet determined whether the transition could affect the timing of funding distributions. Administration officials say integrating programs with DOL will better align education and workforce development and demonstrate that programs can operate without a standalone Education Department. Union representatives and some lawmakers have expressed concern the changes could disrupt services and add inefficiencies.

The recently signed spending package includes language stating the Department of Education lacks authority to transfer responsibilities to other agencies and requires regular briefings to lawmakers. Some lawmakers are nervous about the transfer efforts because of last year’s shift of federal career, technical and adult education money from ED to DOL that also experienced implementation difficulties and took weeks to resolve.

U.S. Department of Education ESEA Guidance

On Monday, February 9, the U.S. Department of Education (ED) issued guidance to states and districts highlighting existing flexibilities under the Elementary and Secondary Education Act of 1965 (ESEA) to utilize Title II, Part A funds to implement innovative teacher workforce strategies, including strategic staffing models. According to the ED press release these strategies “are designed to improve academic achievement and student outcomes by strengthening educator support and expanding instructional options.”

Click here to read the full press release and access the guidance

U.S. Department of Education Proposed Loan Rule

On Friday, January 30, the U.S. Department of Education (ED) issued the Notice of Proposed Rulemaking (NPRM) “Reimagining and Improving Student Education” that proposes a regulatory definition of “professional degree” to determine federal student loan borrowing limits. Under the rule, students in certain professional programs could borrow up to $200,000 total ($50,000 annually), while other graduate students would remain capped at $100,000 total ($20,500 annually). The proposed rule evaluates professions based on factors such as whether a degree is required for entry and the level of independent practice. Several health care fields — including nursing, physician assistant, and occupational therapy programs — would not qualify for the higher borrowing limit. 

In response, the department received considerable pushback from nurses, physicians assistants and occupational therapists, along with other medical personnel, who didn’t qualify as “professional” under the proposed definition. They have until March 2, 2026, to provide public comment to the department providing reasons why they should be included. 

Health care associations and practitioners have raised concerns that the lower loan cap may not cover the cost of training for many medical-related careers and could affect future workforce supply. They argue the proposal will “decimate the healthcare workforce pipeline at a time of historic shortages.” Accordingly, professional healthcare groups are encouraging members to submit public comments before the March deadline. ED states the definition is intended to set loan eligibility parameters rather than assess the value of specific occupations.

Click here to access the full NPRM.

House Education and Workforce Hearing

On Wednesday, February 11, the House Education and Workforce Subcommittee on Workforce Protections will hold the hearing “Building an AI-Ready America: Safer Workplaces Through Smarter Technology.”

Click here to learn more about hearing and access the livestream.