ADVOCACY & POLICY UPDATE - September 28, 2026

Federal Funding Rescissions; New AI and Workforce Legislation

Appropriations

Last week, the Senate continued its work in Washington while the House had limited activity as members began a recess period ahead of the midterm elections.

Their first priority was final passage of the Protect College Sports Act. The final vote on the bill could come as early as tonight. Senate leadership also plans to bring up the House-passed data center bill, The Ratepayer Protection Act. Additionally, the upper chamber announced plans this morning to vote on the House-passed member stock trading bill.

Meanwhile, on Friday, September 25, President Trump told congressional leaders that he unilaterally canceled almost $1 billion in federal funds for immigration services, support to foreign countries, education programs, health research efforts and assistance for businesses owned by minorities. The “pocket rescission”, which was done without Congress’ consent, is a budget maneuver many lawmakers consider illegal — and Senate Appropriations Chair Susan Collins (ME) condemned the move to rescind funds Congress has already enacted without congressional approval as a clear violation of the law. 

By law, the president is allowed to send Congress a request to rescind federal funding, then withhold it for 45 days while lawmakers make a decision. Administration officials said they have the power to cancel funding without congressional approval by sending Congress a rescission request with less than 45 days left in the fiscal year — claiming that the funds automatically get canceled when funding lapses on September 30.

The government is funded through Friday, December 11, but the move almost certainly sets up a contentious government funding battle when lawmakers return after midterm elections. 

U.S. Department of Education Proposed Rule

On Wednesday, September 23, House Education and Workforce Committee Ranking Member Bobby Scott (VA) urged U.S. Secretary of Education Linda McMahon to withdraw a proposed rule that would give her agency broader authority over federal grant funding. 

The proposed Education Department General Administrative Regulations would allow the Department of Education (ED) to cancel competitive grants to K-12 schools and colleges and make billions of dollars in formula grant funding contingent on states and subgrantees, including local school districts, complying with executive orders.

In the letter, Scott raised concerns that the rule could increase uncertainty and politicization in the grant-making process and questioned ED’s authority to proceed while it is not meeting certain statutory requirements or reporting to Congress on the transfer of responsibilities to other agencies. Those transfers include moving civil rights enforcement responsibilities to the U.S. Department of Justice.

An ED spokesperson said Scott can submit a public comment on the proposal and defended the rule as a way to prioritize merit, improve outcomes for students and families, and protect taxpayer funds.

Click here to access Ranking Member Scott’s letter.

Artificial Intelligence Education and Workforce Readiness Act

On Tuesday, September 22, Congresswoman Suzanne Bonamici (OR), ranking member of the House Education and Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education, introduced the Artificial Intelligence Education and Workforce Readiness Act, which addresses the use of artificial intelligence (AI) in education and workforce development. 

The legislation would establish an Interagency Council on AI in Education and the Workforce and direct the development of a National AI Workforce Strategy and state implementation plans to assess skills gaps, identify AI-disrupted occupations and align workforce programs with regional labor needs. It also would fund applied research on AI’s effects on employment, regional training programs, apprenticeships, reskilling initiatives and public service fellowships. It would establish grants for community colleges, small employers and workforce programs to develop upskilling resources, as well as a small business reskilling tax credit. It also would require reporting on AI-related worker displacement and direct the Equal Employment Opportunity Commission to issue guidance on preventing discriminatory uses of AI in recruitment, training and performance evaluations.

The bill would also establish AI risk assessment standards for classroom technology, require human review of certain automated decisions in federally funded workforce programs and create a student data breach reporting portal. It also would prohibit the use of student data to train AI models and provide funding for educator professional development, AI literacy, research and regional centers focused on human-centered AI in education and work.

Click here to access the full press release on the bill.

Workforce Opportunities for Communities in Recovery Act

On Friday, September 25, Congresswoman Pramila Jayapal (WA) and Congressman Rick Larsen (WA) reintroduced the Workforce Opportunities for Communities in Recovery Act, which would strengthen and expand grants for community partnerships that promote employment opportunities for workers in recovery and support communities impacted by substance use. Senate Health, Education, Labor, and Pensions (HELP) Committee member Senator Edward Markey (MA) reintroduced the legislation in the Senate.

The bill would authorize $187.5 million to strengthen and expand a pilot grant program first authorized under the Workforce Innovation and Opportunity Act (WIOA), which was later extended through the 2018 SUPPORT Act, that fund community partnerships that promote employment for individuals affected by substance use and those interested in professions that address the impacts of substance use. 

Click here to access a press release on the bill.