ADVOCACY & POLICY UPDATE - January 5, 2026

Congress Returns as January Funding Deadline Looms

Washington Update

Appropriations

Congress returns to Capitol Hill facing a January 30 deadline to pass federal spending legislation and avoid a partial government shutdown. So far, three of the 12 full-year FY26 appropriations bills have been enacted, covering military construction and veterans affairs, agriculture and the FDA, and the legislative branch. All other agencies are operating under temporary funding that expires at the end of January. Congress must either finalize an appropriations package for the rest of FY26 or pass another short-term continuing resolution (CR).

On December 20, House Appropriations Chair Tom Cole (R-OK) and Senate Appropriations Chair Susan Collins (R-ME) announced an agreement on topline FY26 discretionary funding allocations, providing a framework for drafting and advancing the remaining nine bills. Total FY26 spending under the agreement is set below the level projected in the current continuing resolution. Leaders emphasized a member-driven process with time for review, moving away from large end-of-year omnibus packages.

While the topline agreement provides a framework, neither a broader deal nor another continuing resolution is guaranteed. Healthcare funding, including potential renewal of Affordable Care Act (ACA) premium subsidies, could complicate negotiations. Democrats have previously tied support for government funding to extending these subsidies, which expired on December 31, increasing premiums for many marketplace enrollees. The House is expected to vote on a three-year extension of the subsidies after a discharge petition forced floor consideration, but the proposal’s future in the Senate remains uncertain.

Meanwhile, as cross-chamber negotiations on a five-bill package that includes the Labor-HHS spending bill begin, Senators Patty Murray (D-WA) and Tammy Baldwin (D-WI) are seeking a vote on an amendment to block the Department of Education from transferring administration of certain programs — including career and technical education (CTE), Title I, and special education — to other federal agencies. The amendment language, which would essentially prohibit the Trump administration from carrying out the seven agreements the Education Department already struck to transfer the administration of several programs to the Labor Department, builds on previous bipartisan measures and has drawn some Republican support. Proponents argue such transfers could increase costs, add bureaucracy, and disrupt services relied on by students and families.

NAWB Appoints New CEO

The National Association of Workforce Boards (NAWB) today announced the appointment of Andrew Bercich as its new Chief Executive Officer. Bercich brings deep institutional knowledge of NAWB and the nation’s workforce system, having served on the organization’s Board of Directors for 11 years, including a term as Board Chair.

Click here to read the full press release.

Professional Student Degree Act

On Wednesday, December 17, Congressman Mike Lawler (NY), along with four other House Republicans, introduced the Professional Student Degree Act, which would amend the Higher Education Act (HEA) to formally define “professional degree” and specify which graduate programs qualify under that definition. The proposal responds to recent changes enacted through the Working Families Tax Cut legislation, which revised federal student loan borrowing limits for graduate students. Under current law, most graduate students may borrow up to $20,500 annually and $100,000 in total, while students in qualifying professional degree programs may borrow up to $50,000 annually and $200,000 in total. Eligibility for the higher cap is tied to a regulatory definition of “professional degree.”

The legislation would codify the existing regulatory definition and expand the list of qualifying programs to clarify congressional intent. In addition to programs already recognized, it would explicitly include nursing, physical therapy, occupational therapy, ministry, social work, audiology, physician assistant studies, public health, business administration and management, accounting, architecture, secondary education, and special education.

The bill comes amidst concerns raised by a group of moderate House Republicans after the U.S. Department of Education’s implementation of new borrowing caps excluded nursing from the list of programs eligible for higher loan limits. The legislation is seeking to reverse the Department’s decision by legislatively expanding the list of qualifying professional degrees. The lawmakers have also previously joined a bipartisan letter urging inclusion of nursing programs, citing workforce shortages across the health care sector.

Click here to access a press release on the bill.

Click here to access the bipartisan letter.

Department of Education Negotiation Rulemaking Begins

The Education Department plans to reconvene the Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) committee today through the end of the week to begin negotiated rulemaking on accountability measures. This stems from passage of the One Big Beautiful Bill Act, which included provisions to modify the Higher Education Act and establish an accountability framework for all postsecondary programs receiving federal student loans. 

While the department already has Gainful Employment and Financial Value Transparency regulations, the new framework is expected to “compare the median earning of graduates to those of working adults and will discontinue a program’s Direct Loan Program eligibility if its graduates earn less than the comparison group,” according to a preliminary discussion guide for negotiations.

Click here for the preliminary discussion guide.