ADVOCACY & POLICY UPDATE - May 11, 2026

Secretary McMahon to Testify Before House Committee

Washington Update​

Department of Education/Department of Labor

On Monday, May 11, the U.S. Departments of Education (ED) and Labor (DOL) announced the FY26 grant competitions for the Career Pathways Exploration (CPE) and Teacher Quality Partnership (TQP) programs. 

The Career Pathways Exploration program is a new competitive grant initiative designed to expand early exposure to careers and strengthen statewide career pathway systems. The Teacher Quality Partnerships competition will support efforts to strengthen the educator pipeline, with updated priorities focused on workforce alignment, evidence-based literacy instruction, and applied, classroom-relevant training for new teachers.

The announcement reflects continued coordination between ED and DOL to align federal education and workforce programs. These are the sixth and seventh grant competitions released under the Elementary and Secondary Education partnership framework.

Click here to access the press release. 

Department of Education/Department of Treasury

The U.S. Department of Education (ED) is moving forward with plans to transfer management of the federal student loan portfolio, valued at approximately $1.7 trillion, to the U.S. Department of the Treasury (Treasury) as part of the Trump Administration’s broader effort to reduce the role of the Education Department. The transition has already begun through staff-sharing arrangements between the agencies, including ED employees detailed to Treasury and Treasury hires with student loan policy expertise.

Department of Education officials have indicated there will be a transition period during which both agencies will work collaboratively to transfer operational knowledge and responsibilities related to federal student aid programs. Treasury and ED staff have reportedly been coordinating on the future administration of the portfolio. 

Some current and former federal student aid officials, along with several Democratic senators, have raised concerns about Treasury’s capacity to manage the large and complex student loan system, citing Treasury’s primary expertise in fiscal and tax policy rather than student loan servicing. Lawmakers also requested additional information regarding implementation timelines, costs, legal authority, and the potential impact on borrowers and existing challenges within the federal student loan system. In response, the agencies stated that the transfer is intended to support reforms to federal student assistance programs and asserted that the arrangement is lawful and necessary.

Meanwhile, the Department’s Federal Student Aid office, which administers many of the agency’s largest loan programs, is hiring at a rapid pace. While the office experienced significant staff cuts in March of last year when DOGE was engaging in a government-wide reduction in force, it is currently trying to hire 334 full-time employees by 2027, according to a presentation made to FSA staff in mid-April. This is a 45 percent increase from its staffing levels as of last month.  

Department of Education Student Loan Rule

On Thursday, May 7, a coalition of five congressional Democrats announced plans to introduce a Congressional Review Act (CRA) resolution to overturn a newly finalized U.S. Department of Education (ED) rule that would significantly restructure the federal student loan system for graduate and professional students. Representatives Suzanne Bonamici (OR), John Mannion (NY), and Lauren Underwood (IL), along with Senators Jeff Merkley (OR) and Angela Alsobrooks (MD), said they will seek to block the regulation once it is formally submitted to Congress.

The rule would place new caps on federal borrowing for graduate and professional education programs and eliminate the Grad PLUS loan program for new borrowers. Under the regulation, graduate students would face lower aggregate borrowing limits, while only certain professional degree programs would qualify for higher loan thresholds.

The Department has stated the changes are intended to reduce tuition costs and simplify the federal student loan system. Critics argue the borrowing caps could limit access to graduate and professional education, particularly for students pursuing careers in education, nursing, social work, and other public service fields that may not qualify for the higher lending limits. Lawmakers opposing the rule have also raised concerns that the changes could disproportionately affect low- and moderate-income students. 

Click here to access the Department of Education’s press release on the rule.

House Education and Workforce Committee Hearing

On Thursday, May 14, at 10:15 a.m. ET, the House Education and Workforce Committee will hold the hearing “Examining the Policies and Priorities of the Department of Education, during which committee members will hear testimony from Education Department Secretary Linda McMahon on President Trump’s FY27 budget request for her agency.

Click here to access more information about the hearing.

Unemployment Report

On Friday, May 8, the U.S. Department of Labor (DOL) Bureau of Labor Statistics (BLS) released the April jobs report, showing nonfarm payroll employment increased by 115,000 while the unemployment rate remained at 4.3 percent. March job growth was revised upward to 185,000 jobs. The report reflected continued labor market stability, though household employment declined for a fourth consecutive month and labor force participation continued to contract. The number of individuals working part-time for economic reasons increased notably, and the number of multiple jobholders also rose. 

Click here to access the full report.

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