ADVOCACY & POLICY UPDATE - July 21, 2025

Rescissions Package

On Friday, July 18, President Trump signed the rescissions package, which narrowly passed the House (216-213) earlier in the day, approving $9 billion in budget cuts targeting foreign aid and public broadcasting. On Thursday, July 17, the Senate amended and passed the bill (51–48), removing a proposed $400 million cut to the President’s Emergency Plan for AIDS Relief (PEPFAR) and adding exemptions for global health, agriculture, and other aid programs. The Senate also included informal assurances to preserve emergency broadcasting access in rural areas. Senators Susan Collins (ME) and Lisa Murkowski (AK) joined Democrats in opposing the measure.

On Thursday, July 17 White House Office of Management and Budget (OMB) Director Russ Vought announced that a second rescissions request is likely. While some Republicans are wary of rescinding even more congressionally approved spending, there are others who favor more funding clawbacks in the future. Vought indicated there is still a great enthusiasm for rescissions bills as Congress wants to be seen as voting for spending cuts. 

Appropriations

This week, Senate Republicans are preparing to bring a package of FY26 appropriations bills to the floor, potentially including up to four measures: Commerce-Justice-Science, Military Construction-VA, Agriculture-FDA, and Legislative Branch. Senate leadership is open to a smaller bundle if disagreements arise. In a sign of progress, Senate Republicans cleared the stalled Commerce-Justice-Science bill after removing an amendment that restricted the use of funds for the FBI headquarters. Senate appropriators also advanced the Military Construction-VA bill, which includes $19.8 billion for construction and housing and $253.6 million in mandatory veterans’ benefits. The bill passed with bipartisan support despite some opposition. 

On the House side, Appropriations Chair Tom Cole (OK) released updated topline figures for FY26: $892.5 billion for defense, aligning with the Trump administration’s request, and $705.6 billion for non-defense discretionary funding — higher than the administration’s proposed $557.4 billion but below the current year’s $720.5 billion. Overall, the House plan represents a modest reduction in discretionary spending, rather than the deeper cuts the President requested.

House Appropriations Labor-HHS-Education Subcommittee Chair Robert Aderholt (AL) announced that markups for that spending bill are now expected in early September due to scheduling delays. The subcommittee’s tentative allocation for FY26 exceeds $184 billion, with early estimates suggesting a potential 7% reduction — roughly $14 billion — compared to FY25 levels.

With the September 30 deadline approaching, lawmakers have acknowledged the possibility of needing a continuing resolution (CR) to keep the government funded while broader negotiations continue.

DOL/SBA Sign New Agreement

On Wednesday, July 16, the U.S. Department of Labor and the U.S. Small Business Administration signed a Memorandum of Understanding to support American manufacturing. The agreement, which will enhance collaboration and data-sharing across key programs, is designed to cultivate a pipeline of skilled workers to support domestic producers — 98 percent of whom are small businesses. 

Click here to access the press release and learn more about the MOU.

Democratic Leaders Blast DOL/ED Partnership Plan

On Wednesday, July 16, Democratic Senators Patty Murray (WA), Bernie Sanders (VT), and Tammy Baldwin (WI), and House education leaders Robert C. “Bobby” Scott (VA) and Rosa DeLauro (CT) issued a joint statement criticizing the Department of Education (ED) and Department of Labor’s (DOL) plan to transfer WIOA adult education and career and technical education programs from ED to DOL. In the statement the Congressional leaders stated “The law of the land has not changed…this is yet another illegal action by this administration that ignores the rule of law.”

Click here to access the Senate & House Democrats’ statement on the move.

21st Century Community Learning Centers Funding

Last week, the Trump Administration announced it will release approximately $1.3 billion in previously delayed funds for the 21st Century Community Learning Centers program, which supports after-school and summer learning programs for over 1.4 million students. States such as California, Texas, New York, and Florida are set to receive significant shares of this funding. The release follows an Office of Management and Budget (OMB) review, with new compliance guardrails in place. However, other federal education grants — including those for teacher training and migrant education — remain under review. Administration officials have cited concerns about program misuse and ideological content. Final decisions on the remaining $7 billion in withheld education funds have not yet been made. While some lawmakers welcomed the partial release, others, including top Democrats, criticized the administration for delaying congressionally approved funding. Legal challenges from multiple states are ongoing.

Child Care for Working Families Act

On Tuesday, July 15, House Education and Workforce Committee Ranking Member Bobby Scott (VA) and Senate Appropriations Committee Vice Chair Patty Murray (WA) reintroduced the Child Care for Working Families Act — a comprehensive proposal aimed at addressing the rising cost and limited availability of child care across the country. The bill seeks to make child care more affordable by capping costs at no more than 7% of a family’s income, with many low-income families paying nothing. It also aims to expand access to high-quality care options, particularly in underserved communities and during non-traditional hours. Grants would support the establishment of new providers, help cover start-up and licensing costs, and expand services for children with additional needs, including those experiencing homelessness or in foster care. 

It proposes funding to raise wages and align compensation with that of similarly qualified elementary educators and would also increase investments in Head Start, enabling full-day, full-year programming and higher wages for staff. Additionally, the legislation would support the expansion of high-quality pre-K for 3- and 4-year-olds through a mixed-delivery system, prioritizing access in high-need communities. In cases where a state declines funding, the federal government could distribute funds directly to localities or providers.

Click here to access the full text of the bill.

Click here to access a fact sheet on the bill.

Click here to access the section-by-section summary of the bill.

HEADWAY Act

On Thursday, July 17, Senators Reverend Raphael Warnock (GA) and Shelley Moore Capito (WV) introduced the bipartisan Head Start Education and Development Workforce Advancement and Yield (HEADWAY) Act to address ongoing shortages in the early childhood workforce. The legislation would allow Early Head Start teachers to earn their Child Development Associate (CDA) credential while actively teaching — reducing barriers to entry and expanding the pipeline of qualified educators. It also aims to increase hiring flexibility, attract more professionals to the field, and ensure that Early Head Start classrooms remain fully staffed. 

Click here to read the full press release, access the full text of the bill, as well as a one-pager.

READY4Life Grants

On Tuesday, July 15, the U.S. Department of Health and Human Services (HHS), Administration for Children and Families (ACF), Office of Family Assistance (OFA) announced plans to solicit applications for the competitive award of grants that support healthy marriage and relationship education activities including parenting, and job and career advancement activities as authorized under Section 403(a)(2) of the Social Security Act. The Relationships, Education, Advancement, and Development for Youth for Life (READY4Life) grants will be targeted exclusively to projects designed to provide healthy marriage and relationship education skills, parenting (for young fathers and mothers as applicable), financial management, job and career advancement, and other activities, to youth that are high-school aged (grades 9-12) or in late adolescence and early adulthood (ages 14 to 24), including parenting and/or pregnant youth. Applications are due July 29, 2025. 

Click here to access the grant information.