ADVOCACY & POLICY UPDATE - July 6, 2026

Trump Nominates Sonderling for Labor Secretary; Senate Democratic Caucus Demands OMB Rescind Rule

Appropriations

Last week, tensions increased between Senate Appropriations Chair Susan Collins (ME) and Ranking Member Patty Murry (WA) over the direction of federal spending negotiations, marking a shift from their previously cooperative approach to bipartisan appropriations work. The disagreement centers on diverging priorities for defense and domestic funding levels, as well as disagreements over the handling of policy-related amendments in spending bills.

Republican appropriators have argued that Democrats are unwilling to negotiate within GOP funding frameworkers, while Democrats contend that Republican proposals prioritize defense spending at the expense of domestic programs. Procedural disagreements and partisan disputes have slowed committee consideration of several appropriations bills, raising questions about Congress’ ability to complete the FY27 appropriations process before the September 30 deadline. 

With fewer than three months remaining in FY26, congressional appropriators are increasingly focused on the outlook for FY27 funding. Some lawmakers have indicated that Congress is likely to rely on a continuing resolution to extend current funding levels beyond the start of the new fiscal year on October 1, while others have warned that a government shutdown remains possible if appropriations legislation is not enacted.

OMB Guidance

On Wednesday, July 1, the Senate Democratic Caucus released a letter to Office of Management and Budget Russ Vought demanding that he rescind the agency’s proposed rule regarding federal grant management, arguing it undermines Congress’ role in directing federal spending. The proposed regulation, which would apply across federal agencies, revises the federal government’s guidance on how organizations receive federal money. The rule would bar federal funds from being used for “woke” initiatives or any efforts not in keeping with Trump administration priorities.

In the letter, led by Senate Minority Leader Chuck Schumer and Senators Gary Peters (MI), Patty Murray (WA) and Jeff Merkley (OR), the caucus specifies that “When Congress authorizes and appropriates money for federal grants, it does so with the understanding that all Administrations will distribute those grants consistent with Congressional intent and the funding instructions articulated in law.” 

The administration’s position is that “federal grants funded unlawful DEI practices,” and “various anti-American ideologies.” Their proposal would put political appointees in charge of approving funding awards to prevent this.

Click here to access the full letter to OMB Director Vought.

U.S. Department of Labor Secretary Nominee

On Monday, June 29, President Trump nominated Keith Sonderling to serve as U.S. Secretary of Labor. Sonderling has served as Acting Secretary since April, following the departure of former Secretary Lori Chavez-DeRemer, and previously served as Deputy Secretary of Labor. 

Prior to this, Sonderling held leadership roles within the Department of Labor’s (DOL’s) Wage and Hour Division and served as Commissioner of the Equal Employment Opportunity Commission during Trump’s first term. 

His nomination is subject to approval by the Senate Health, Education, Labor, and Pensions (HELP) Committee and confirmation by the full Senate.

U.S. Department of Education

On Monday, June 29, the U.S. Department of Education’s (ED’s) Office of Elementary and Secondary Education transferred approximately 60 employees to the Departments of Labor (DOL) and Health and Human Services (HHS) as part of the Trump Administration’s ongoing effort to redistribute education programs across multiple federal agencies. The transferred employees include staff supporting school safety and education choice initiatives.

The moves follow previously announced transfers of programs from the Department’s Office of Career, Technical, and Adult Education and Postsecondary Education to several agencies, including DOL, HHS, as well as the Departments of Treasury and Interior. According to the Administration, these interagency agreements are part of its broader effort to reorganize the Department of Education, though ED can’t be eliminated without congressional approval. 

The union representing ED employees has raised concerns about the restructuring and filed a workplace safety complaint regarding conditions at the DOL building where many transferred employees are now located.

Separately, on Tuesday, June 30, Senate Democratic appropriators sent a letter to Secretary of Education Linda McMahon urging her agency to halt efforts to transfer special education programs and civil rights enforcement responsibilities outside the department. The lawmakers argued that the FY26 Labor-HHS-Education appropriations law does not authorize such transfers and urged the department to implement the law as enacted by Congress.

Click here to access the full letter to Secretary McMahon.

Securing Agriculture’s Workforce Act of 2026

On Tuesday, June 30, House Agriculture Committee Chairman G.T. Thompson (PA) introduced the Securing Agriculture’s Workforce Act of 2026 to expand and restructure the H-2A agricultural worker program. The bill includes provisions allowing certain undocumented agricultural workers already employed in the U.S. to apply for temporary legal status through H-2A if they meet eligibility requirements.

It would also expand H-2A access to year-round agricultural operations by allowing contracts under 350 days to qualify regardless of whether work is continuous, a change intended to accommodate sectors such as dairy. In addition, the legislation extends eligibility to other industries, including forestry and aquaculture, and transfers authority over the definition of agricultural labor from the Secretary of Labor to the Secretary of Agriculture. It also codifies existing wage methodology rules for H-2A and limits annual changes to adverse effect wage rates. Additionally, it includes the creation of a centralized online platform to streamline communication among employers, workers, and federal agencies, along with clarifications of agency roles in program administration.

Click here to access more information about the legislation. 

Supporting Our Direct Care Workforce and Family Caregivers Act

On Tuesday, June 30, Ranking Member of the Senate Aging Committee Kirsten Gillibrand (NY) introduced the Supporting Our Direct Care Workforce and Family Caregivers Act which aims to strengthen the direct care workforce and support family caregivers for seniors and people with disabilities. The legislation would provide federal grants through the Department of Health and Human Services’ (HHS) Administration for Community Living to states and other eligible entities to support recruitment, training, retention, and professional development for direct care workers, including certified nursing assistants, home health aides, and personal care assistants. It would also fund training and educational support for unpaid family caregivers.

Additionally, the bill codifies and expands an existing technical assistance center within the Administration for Community Living to support workforce development efforts, including career pathways, apprenticeship and certification programs, data collection and analysis, and dissemination of best practices related to direct care work and caregiving.

Click here to access more information on the bill.

Workforce Pell

On Wednesday, July 1, the U.S. Department of Education (ED) announced that Workforce Pell officially began implementation as key provisions of the Working Families Tax Cuts Act took effect, alongside new student loan repayment options and expanded higher education affordability measures.

As of July 1, federal student loan borrowers can select from two simplified federal repayment plans: a Tiered Standard plan and a new income-driven Repayment Assistance Plan (RAP). The Tiered Standard plan offers fixed repayment terms of 10, 15, 20, or 25 years based on loan size, while RAP ties monthly payments to income, generally ranging from 1 to 10 percent, with payments as low as $10. RAP also includes waived unpaid interest for on-time payments and a federal matching contribution of up to $50 per month toward principal reduction when payments do not sufficiently reduce balances.

ED also implemented new limits on federal borrowing for graduate and professional programs aimed at reducing excessive debt and encouraging institutions to manage program costs. Workforce Pell, which also started on July 1, allows qualifying short-term workforce training programs to become eligible for Pell Grant funding following state and federal approval. The initiative is designed to expand access to shorter-term, career-aligned training in high-demand fields.

Click here to access a Department of Education fact sheet.

Unemployment Rate

On Thursday, July 2, the U.S. Department of Labor (DOL) Bureau of Labor Statistics (BLS) released the June unemployment report, showing that nonfarm payrolls increased by 57,000 jobs. This marks a slowdown from the downwardly revised gain of 129,000 jobs in May and fell short of economists' expectations of 115,000 new jobs. The unemployment rate edged down from 4.3% to 4.2%; however, the decline was largely driven by approximately 720,000 people leaving the labor force, pushing the labor force participation rate to its lowest level in more than five years. 

Click here to access the full report.

Click here to access Acting Labor Secretary Keith Sonderling’s statement on the jobs report.