ADVOCACY & POLICY UPDATE - July 7, 2025

President Trump Signs Spending Package

Washington Update

Appropriations/Reconciliation

Reconciliation

On Friday, July 1, President Donald Trump signed into law his sweeping tax cut and spending package known as the “Big, Beautiful Bill.” The Senate narrowly approved the bill (51-50) on Tuesday, July 1, with Vice President JD Vance casting the tie-breaking vote, and the House passed it by a razor-thin margin (218-214) on Thursday, July 3. The over 800-page package underwent several revisions to secure final passage.

Although proposed reforms to the federal pension system were removed, several workforce-related provisions remain. These include an increase in the child and dependent care credit for workers with employment- related expenses such as child or elder care, and an expansion of the employer-provided care credit, raising the maximum tax credit from $150,000 to $500,000 for businesses that offer or contract child care services. The bill also raises the income threshold for independent contractors to report earnings on 1099 forms from $600 to $2,000.

The legislation includes funding to address the Pell Grant shortfall, expand the award to short-term workforce programs, and exclude “full-ride” students from receiving the grant. It also removes House-proposed changes to eligibility requirements. The expansion of workforce Pell is limited to accredited programs, marking a shift from earlier versions that included unaccredited providers. 

The spending package has drawn criticism from both parties. Speaker of the House Mike Johnson (LA) voiced dissatisfaction with the Senate’s revisions, and the AFL-CIO opposed the bill, warning of potential job losses resulting from cuts to food assistance and clean energy programs.

Appropriations

With the spending bill now signed into law, attention is turning to the administration’s proposed $9.4 billion rescissions package and the FY26 appropriations process. The House has already enacted the rescissions proposal, which would cancel previously approved but unobligated federal funds. Passage in the House initiated a 45-day countdown for Congress to act, after which the funds must be spent as originally directed. The bill still awaits Senate consideration, though, with time running out before the July 18 deadline. In that chamber, Senators Susan Collins (ME), Lisa Murkowski (AK), and Mike Rounds (SD) have expressed reservations about cuts to AIDS initiatives and public broadcasting.

Regarding appropriations, the House has passed the Military Construction-VA spending bill, and four additional measures — Agriculture-FDA, Defense, Homeland Security, and Legislative Branch — have cleared the House Appropriations Committee. While the House is in recess this week, the Senate is beginning work on its own funding bills, starting with Agriculture-FDA, Commerce- Justice-Science, and Legislative Branch.

Click here to access a section-by-section summary of the One Big, Beautiful Bill (OBBB) from the Senate HELP Committee.

Click here to access the OBBB text.

Click here to access the rescissions bill text.

Click here to read the White House summary on the rescissions bill.

Subminimum Wage for Disabled Workers

The Trump Administration has decided not to continue Biden-era efforts to end the subminimum wage for disabled workers. The U.S. Department of Labor (DOL) states it lacks the authority to stop issuing 14(c) certificates, which permit employers to pay disabled workers below the minimum wage. House Education and Workforce Chair Tim Walberg (MI) supported this decision, emphasizing the importance of programs that help employers provide opportunities for individuals with disabilities to work and contribute to their communities.

Click here to access the filing.

Unemployment Report

On Thursday, July 3, the U.S. Department of Labor (DOL) Bureau of Labor Statistics (BLS) released the June unemployment report, which showed nonfarm payrolls increased by 147,000, surpassing economists’ expectation of 110,000 to 111,000. The unemployment edged down slightly to 4.1% from 4.2%, while labor force participation declined to 62.3%. Job gains were driven largely by the public sector, with government and education adding 73,000 positions, and healthcare and social assistance contributing 39,000. However, private-sector hiring slowed sharply, adding only 74,000 jobs — the weakest since October 2024. The Federal Reserve is expected to delay interest rate cuts until at least September. 

Click here to access the full report.

Click here to read Labor Secretary Lori Chavez-DeRemer’s statement on the report.