ADVOCACY & POLICY UPDATE - March 24, 2025

Washington Update

Department of Labor

On Wednesday, March 19, House Education and Workforce Committee Chair Tim Walberg (MI) sent a letter to Secretary Chavez-DeRemer outlining his Committee’s priorities and asking her to assist with oversight efforts. In the letter, Walberg highlighted key workforce and labor issues, including training opportunities, increasing access to healthcare, and strengthening compliance assistance. It referenced the House’s passage of A Stronger Workforce for America Act (HR 6655) and urged similar efforts in the new Congress. Walberg also highlighted past oversight inquiries on workforce policies, enforcement, data security, and pensions, encouraging the Secretary to review these issues and stay engaged with the Committee.

Click here to read the full letter.

Department of Education

On Thursday, March 20, President Trump signed an executive order (EO) directing his administration to begin dismantling the U.S. Department of Education. While acknowledging that Congress must approve a full closure, the EO instructs Secretary of Education Linda McMahon to transfer education authority back to the states. Trump expressed confidence in bipartisan support, though the EO’s immediate impact remains uncertain, as education policy is largely determined at the state and local levels. It calls for shutting down the department while maintaining essential services, including Title I funding for low-income schools, support for students with disabilities, and student financial aid. Though Congress must approve any formal closure, the administration has already cut the department’s workforce in half through layoffs and buyouts. It also prohibits remaining department funds from supporting diversity, equity, and inclusion initiatives or “gender ideology.” White House officials clarified that while the department will not be fully abolished, it will be significantly downsized.

On March 21, House Education and Workforce Committee Democrats, led by Ranking Member Bobby Scott (VA), introduced a Resolution of Inquiry (ROI) to challenge President Trump’s executive order to dismantle the Department. The resolution seeks transparency and information on the Administration's efforts to reduce the agency’s operations, including legal documents, emails, and communications related to workforce reductions and downsizing. If the Committee does not act within 14 legislative days, the full House will vote. Scott emphasized that abolishing a federal agency requires Congressional action and criticized the executive order for potentially harming students, educators, and the future workforce. 

Critics, including Democrats and teachers unions, condemned the move as an attempt to bypass congressional authority through staffing cuts rather than lawful legislative action, signaling potential legal challenges. Education advocates warn of potential disruptions for students and families, as well as challenges for states lacking the resources to absorb federal responsibilities. The order also raises concerns about federal oversight of school performance following deep cuts to the department’s research division.

Senate Health, Education, Labor, and Pensions (HELP) Chairman Bill Cassidy (LA) announced plans to introduce legislation supporting Trump’s initiative, but the measure faces significant hurdles in the Senate, where it would need 60 votes to overcome a filibuster. Some Senate Republicans have also expressed reservations about fully abolishing the agency.

House Education and Workforce Committee Chairman Tim Walberg (MI) praised the executive order, arguing that reducing federal involvement will empower parents and students. He criticized the previous administration’s education policies, including school closures, declining student performance, and student loan policies. Walberg expressed support for McMahon and pledged to work with her to shift control away from the federal government.

Secretary McMahon called the order a historic step toward returning control to states, emphasizing that education is fundamentally a state responsibility. She pledged to work with Congress to ensure an orderly transition while maintaining funding for essential programs. She stated that eliminating federal bureaucracy will empower teachers, reduce taxpayer waste, and allow students to focus on core subjects and career success.

Click here to read the full EO.

Click here to read a fact sheet on the EO.

Click here to access the Resolution of Inquiry.

Click here to read Education Secretary Linda McMahon’s statement on the EO.

Click here to reach Chairman Walberg’s statement on the EO.

Child Care Tax Credit

Senator Katie Britt (AL) is advocating for new child care benefits in the Republican tax plan, including expanding the child and dependent care tax credit, making it partially refundable, enhancing the dependent care assistance program, and easing the process for businesses to provide child care. Alongside Senator Tim Kaine (VA) she introduced the bipartisan Child Care Availability and Affordability Act and Child Care Workforce Act to make child care more affordable and accessible by strengthening tax credits and increasing the supply of child care providers.

The Availability and Affordability Act reforms three key programs: the Child and Dependent Care Tax Credit (CDCTC), the Dependent Care Assistance Program (DCAP), and the Employer-Provided Child Care Tax Credit. The reformed CDCTC would provide $2,500 for families with one child and $4,000 for families with two or more children, making it available to lower-income families for the first time. The DCAP would allow families to deduct 50% more in expenses, up to $7,500, and separate from the CDCTC, providing middle-class families access. The Employer-Provided Child Care Tax Credit would increase from $150,000 to $500,000, covering 50% of expenses, with a potential rise to $600,000 for small businesses.

The Child Care Workforce Act would create a competitive grant system to incentivize state and local governments and tribal organizations to implement pay supplement programs for child care workers, increasing provider supply and reducing turnover. Successful pilot programs in D.C., Maine, Nebraska, and Virginia have improved worker retention and satisfaction.

Britt argues addressing child care costs, which result in a $122 billion annual economic loss, aligns with the GOP's focus on supporting families and workers. Democrats, including Kaine, have endorsed the proposal, arguing it will help boost economic growth by enabling more parents to enter the workforce. Her plan is estimated to cost $4 billion annually, and she hopes it will be added to the party-line tax and border bill later this year. Britt emphasizes that expanding child care benefits is a clear way for Republicans to fulfill their campaign promises as the party of families and hard-working Americans. However, competing tax priorities, such as expanding the Child Tax Credit, could limit the resources available to fund both initiatives.

On March 19, Senate Finance Committee Chair Mike Crapo (R-ID) mentioned that Republicans are considering expanding the Child Tax Credit, including making the “refundable” portion available to low-income individuals, a surprising move as many Republicans oppose this aspect of the credit. Britt’s proposal and Crapo’s comments highlight ongoing discussions within the GOP on balancing tax relief for working families with competing priorities.

Click here to read the press release on legislation.

Debt Ceiling

Treasury Secretary Scott Bessent has yet to send Congress guidance on the X-date range, the window during which the U.S. could default on its $36 trillion national debt if the borrowing cap isn’t raised or waived. The Congressional Budget Office (CBO) is expected to release its projection this Wednesday, as the government continues using "extraordinary measures" to manage the debt limit reinstated in January. Bessent stated in a letter to lawmakers that Treasury officials plan to update Congress in May, after most April income tax receipts are in, suggesting the fiscal cliff may not hit in May as some lawmakers have warned. This week, the CBO will also release its long-term budget outlook for the next 30 years, expanding on the 10-year projections it published in January.

Click here to access the letter.

Overtime Rule

On March 18, the Partnership to Protect Workplace Opportunity, along with 90 other employer organizations, sent a letter to the Trump administration urging it to stop defending the Biden-era overtime rule in court. The group argued that two federal courts have already struck down the rule, recognizing that it exceeded the Department of Labor’s authority, and called on the administration to abandon its defense to protect workers, small businesses, public employers, nonprofits, and the economy.

Click here to access the letter.

Senate HELP Committee

Brianna Tibbetts is joining the Senate Health, Education, Labor, and Pensions (HELP) Committee as education policy adviser. She most recently was legislative assistant for Congresswoman Erin Houchin (IN).