The information covered below is from July 7, 2025, through July 17, 2025.

Highlights:

• Throughout July, the Department of Education (USED) and the Office of Management and Budget (OMB) have continued to withhold nearly $7 billion in federal education funding that was due to be dispersed on July 1. On July 18, OMB announced it would release approximately $1.3 billion of the withheld funds for the 21st Century Community Learning Centers program.
• On July 15, USED and U.S. Department of Labor announced the implementation of a workforce development partnership, which USED stated “marks a major step in shifting management of select [USED] programs to partner agencies.”
• On July 14, the Supreme Court allowed the Administration’s mass reduction in force at USED to take place while a pair of consolidated lawsuits challenging it proceeds in a Massachusetts federal court.

Administration:

Trump Administration continues to withhold nearly $7 billion in federal education funds for school year 2025-26: The Department of Education (USED) and the Office of Management and Budget (OMB) have continued to withhold nearly $7 billion in federal education funding that was due to be dispersed on July 1. These Every Student Succeeds Act (ESSA) and Adult Education and Family Literacy Act funds (AEFLA) funds—authorized and appropriated by Congress—are distributed via formula each year and have been included by states, districts, community colleges, and their partners as part of their planning and budgeting for the upcoming 2025-2026 school year. On June 3, however, the Administration communicated to states that they would not be receiving these funds as expected because they were being “reviewed,” leaving education systems and institutions with potentially significant gaps in their 2025-2026 school year budgets.

• Affected funding streams include resources to support teacher and school leaders ($2.19 billion from Title II-A), English learners ($890 million from Title III-A), migrant students ($376 million from Title I-C), adult learners ($715 million from AEFLA), and students and families relying on before- and after-school programs ($1.33 billion from Title IV-B). Another withheld grant program, the Student Support and Academic Enrichment Program ($1.38 billion from Title IV-A), provides flexible funding for school districts to invest in “provid[ing] all students with access to a well-rounded education; improve school conditions for student learning; and improve the use of technology in order to improve the academic achievement and digital literacy for all students.”
• A number of online tools provide information about the impacted K-12 funds by state, districts, and congressional district. The latter tool also identifies the 100 school districts that stand to lose the most overall funding and the 100 facing the largest per-pupil losses. This post examines the impact of withholding the AEFLA funding for adult literacy programs.

An OMB spokesperson provided additional information about the withholding for review to POLITICO: “Initial findings have shown that many of these grant programs have been grossly misused to subsidize a radical leftwing agenda,” an OMB spokesperson said in a statement to POLITICO that marked the administration’s most substantive public comments on the matter to date. Public schools in New York used money for students who are immigrants or speak limited English “to promote illegal immigrant advocacy organizations,” the spokesperson said, without providing specifics. The official said Washington state used funds “to direct illegal immigrants towards scholarships intended for American students.” Elsewhere, school improvement funds were used “to conduct a seminar on ‘queer resistance in the arts,’” they added. “[T]his is an ongoing programmatic review and no decisions have been made yet,” the official said.

At least two lawsuits are challenging the withholding. First, the plaintiffs in NAACP vs United States, a lawsuit brought in March by the NAACP, NEA, and others to challenge the dismantling of USED, amended their complaint to include the missing funds and also incorporated it into their motion for preliminary injunction that is now pending before the court. Second, on July 14, a coalition of 25 states filed a new lawsuit in a Rhode Island federal court challenging the withholding of $3.6 billion of funds due to the plaintiff states. The coalition simultaneously moved for a preliminary injunction. Note that the U.S. Supreme Court’s recent decision in Trump v. CASA precludes the court from providing any injunctive relief to states that did not join this lawsuit, and the preliminary injunction motion requests relief only for plaintiff states.

Separately, on July 16, ten Republican Senators wrote a letter to OMB Director Russell Vought requesting the “faithful implementation” of the funds, noting that the decision to withhold the funding “is contrary to President Trump’s goal of returning K-12 education to the states…because we know local communities know how to best serve students and families.” Congressional Democrats also sent a letter requesting information about the “illegal withholding” of the funds, and later issued a statement asserting, “This is not about cutting through red tape or returning education to the states. This is about dismantling the Department of Education and attacking our public education system.”

On July 18, OMB announced it would release approximately $1.3 billion of the withheld funds for the 21st Century Community Learning Centers program after Administration officials confirmed it had completed its review of the program.

Administration excludes undocumented children and students from multiple federal programs: On July 10 and 11, the Administration announced a series of new federal agency interpretations of what constitutes a federal “public benefit” under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA, sometimes referred to as “welfare reform”). The Administration’s actions broaden the list of federal benefits that only United States citizens and “qualified aliens” can access, thus excluding undocumented individuals as well as those in the country under temporary protected status or who are part of DACA, among other categories that are not encompassed by PRWORA’s definition of “qualified aliens.” The policy announcements are described by the Administration as part of how they are implementing President Trump’s February 19 “Ending Taxpayer Subsidization of Open Borders” Executive Order.

Among the programs restricted by the Administration affecting children and students are the Women, Infants, and Children (WIC) supplemental nutrition program for which provides nutrition support for low-income pregnant women, breastfeeding women, and children under the age of five, Head Start, postsecondary career and technical education (CTE), and dual enrollment, among others. Note that many other federal benefits are already restricted in this way either by law or prior agency guidance, such as SNAP, (nonemergency) Medicaid, and TANF. By contrast, other education-related federal benefits are exempted from these newly-expanded PRWORA restrictions, such as basic K-12 education (exempted by the Supreme Court’s Plyler v. Doe decision) and school meals (exempted directly by PRWORA). These federally-funded benefits continue to be available to all students regardless of their immigration status.

The following are more detailed summaries of the notices announcing new policy interpretations for USED, the U.S. Department of Health and Human Services (HHS) and the U.S. Department of Agriculture (USDA) (NOTE: other agencies also released official notices, including DOL and DOJ):

• Department of Education: USED’s new interpretive rule restricts access to educational benefits that are fully or partially funded by federal grants, such as CTE programs under the Carl D. Perkins Career and Technical Education Act (Perkins V) and adult education programs under Title II of the Adult Education and Family Literacy Act (AEFLA) of the Workforce Innovation and Opportunity Act (WIOA).

  • For postsecondary students and adult learners, this means that affected students are no longer eligible for any Perkins- or AEFLA-funded programs.

  • For secondary students, however, USED reaffirmed that affected students can still access all aspects of a “basic public education” as guaranteed by the U.S. Supreme Court’s 1982 decision in Plyler v. Doe. The Department’s new rule thus does not, for the most part, affect high school CTE programs provided “in secondary school settings.”

    • But it does mean that USED no longer considers affected secondary students to be eligible for federally funded “dual enrollment and other similar early college programs that provide opportunities to earn college level credits while participating in a secondary education program.”

    • The new rule also implies that older affected students are ineligible to participate in high school CTE programs: “[Perkins-funded programs], when provided to minors in the secondary school setting, are basic public education benefits that are protected under Plyler” (emphasis added).

• Department of Health and Human Services: HHS reinterpreted a “federal public benefit” to include Head Start and 12 other programs as federal public benefits subject to PRWORA’s immigration restrictions. Previously, HHS guidance in 1998 excluded Head Start, classifying it as an early childhood education program that benefits the community rather than individuals, households, or families. The current HHS justifies this new shift in part by citing the U.S Supreme Court’s Loper Bright Enterprises v. Raimondo ruling and a return to the “plain-language definition” of “Federal public benefit,” aiming to reverse “outdated exclusions.” This is a significant change for Head Start, which has included all children since its inception 60 years ago.

  • Despite this change, PRWORA explicitly exempts nonprofit charitable organizations from verifying immigration status, a point the HHS notice acknowledges and reaffirms. Despite this exemption, HHS’s guidance encourages (without requiring) nonprofits to align with its new interpretation. Approximately 70% of Head Start grantees are nonprofit organizations.

  • Additionally, the Head Start statute clarifies that children already deemed eligible for Head Start remain eligible through the succeeding program year. Accordingly, children already in Head Start should remain eligible for this program year and the next program year, despite HHS’s reinterpretation of eligibility for affected children and students. According to HHS, the new reinterpretation takes immediate effect, although the Department has not yet provided implementation guidance for Head Start programs on fundamental questions such as how to verify status and to whom it applies. HHS is inviting public comment for 30 days but is also applying the interpretation immediately due to perceived public interest and the “ongoing emergency at the Southern Border of the United States.”

• Department of Agriculture: USDA’s reinterpretation of a “federal public benefit” carries implications for nutrition assistance programs. The USDA notice clarifies certain programs are included in its reinterpretation—such as the Child and Adult Care Food Program (CACFP), Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), and Summer Electronic Benefits Transfer (EBT)—which typically have not required immigration status for determining eligibility.

  • However, the USDA notice highlights an existing exception in PRWORA ensuring that eligibility for school lunch and breakfast programs is not based on citizenship, alienage, or immigration status for students eligible for free public education under state or local law. Because Plyler v. Doe grants all K-12 students access to public education regardless of immigration status, this new USDA interpretation is not expected to affect students’ access to school breakfast and lunch.

President Trump announces $92 billion in corporate AI and energy investments: On July 15, the Trump Administration hosted the Pennsylvania Energy & Innovation Summit in Pittsburgh, at which President Trump announced $92 billion in private AI and energy investments. The announcement included a $25 billion investment from Google for data centers and infrastructure, $25 billion investment in data centers and natural gas plants from Blackstone, and $6 billion investment from CoreWeave in data center expansion. A White House press release explained the corporate commitments to "cutting-edge AI" as a "catalyst for unparalleled growth and opportunity." Reporting added that the investments will expand AI training programs and apprenticeships.

U.S. Department of Education (USED):

USED transfers career and technical education (CTE) and adult education functions to U.S. Department of Labor (DOL) through an interagency agreement: On July 15, USED and DOL announced the implementation of a workforce development partnership, which USED stated “marks a major step in shifting management of select [USED] programs to partner agencies.” The announcement launches an Interagency Agreement (IAA) outlining the plan that was signed on May 21 by USED and DOL but paused by a federal court’s preliminary injunction in a case challenging the Administration’s reorganization and reduction-in-force plans for USED. After the U.S. Supreme Court granted on July 14 an emergency request to stay the injunction, the agencies announced that they would begin implementing the IAA. USED explained that under the partnership, DOL would “take on a greater role in administering” adult education and family literacy programs funded under Title II of the Workforce Innovation and Opportunity Act (WIOA) and CTE programs funded by the Carl D. Perkins Career and Technical Education Act (Perkins V).

USED announces SAVE plan borrowers will begin accruing interest: On July 9, USED announced that beginning on August 1, 2025, borrowers enrolled in the Saving on a Valuable Education (SAVE) repayment plan would begin accruing interest. Borrowers in the SAVE plan were initially placed on an administrative forbearance during summer 2024 due to ongoing legal challenges and interest was covered by the government since that time. In its announcement, USED stated that it lacks the authority to continue the interest-free forbearance due to a federal court injunction issued in February, and that new interest will only accrue prospectively (i.e., borrowers will not be charged for retrospective periods of interest-free forbearance). USED is encouraging borrowers to enroll in another repayment plan, such as income-based repayment established in statute. Due to the recently-enacted budget reconciliation law, existing borrowers will lose access to any income-driven repayment plans created by regulation, including SAVE, PAYE, REPAYE, and income-contingent repayment no later than July 1, 2028, unless USED eliminates those other repayment plans earlier.

USED’s Office for Civil Rights (OCR) dismisses more than 3,400 complaints: In court filings submitted on July 1 in a case challenging the reductions in force at the Department, USED’s OCR stated it has dismissed 3,424 complaints between March 11 to June 27 “consistent with OCR’s Case Processing Manual.” The court filing details that in the same period “OCR received 4,833 complaints; opened 309 for investigation; opened 26 directed investigations; resolved 96 complaints after investigation concluded insufficient evidence for findings; and resolved 290 complaints with voluntary agreements.”

In a statement to POLITICO, USED spokesperson Julie Hartman expressed that, “OCR has taken unprecedented steps to streamline its functions according to demand,” adding that “OCR is vigorously upholding its responsibilities to protect all Americans’ civil rights.” However, according to POLITICO, one former agency official called “that amount of dismissals in a three month period…unheard of.”

USED issues proposed rules for School-Based Mental Health Services Grant Program and Mental Health Service Professional Demonstration Grant Program: On July 17, USED issued a notice of proposed priorities, requirements, and definitions under the School-Based Mental Health Services Grant (SBMH) Program, which provides competitive grants to State educational agencies (SEAS), local education agencies (LEAs), and consortia of LEAs to increase the number of credentialed school-based mental health services providers, specifically school psychologists,  delivering mental health services to students in high-need LEAs. The proposed priorities include SEAs and LEAs proposing to increase the number of credentialed school psychologists employed in high-need LEAs, as well as SEAs or LEAs delivering early intervention and intensive mental health services in high-need LEAs. Additionally, the proposed program requirements “prohibit the use of program funds for promoting or endorsing gender ideology, political activism, racial stereotyping, or hostile environments for students of particular races,” though the notice does not define those terms.

Separately, on July 17, USED also issued a notice of proposed priorities, requirements, and definitions under the Mental Health Service Professional Demonstration Grant Program (MHSP), which provides competitive grants to support and demonstrate innovative partnerships to train school-based mental health service providers for employment in schools and LEAs The proposed priorities for this program aim to enhance SEA efforts to address shortages of school psychologists in high-need LEAs; expand the capacity of high-need LEAs to address shortages of school psychologists; and increase the number of credentialed school psychologists available to deliver early intervention mental health services and intensive mental health services in high-need LEAs.

USED’s OCR restores public access to its resolution agreements: On July 10, for the first time since the beginning of the second Trump Administration, USED’s Office for Civil Rights (OCR) posted a set of resolution agreements for public review, along with letters to California and Maine regarding their trans-inclusive athletics policies. This publicly searchable database provides the public with access to open investigations and recent resolution agreements—redacted to remove any personally identifiable information. It currently includes 42 resolution agreements from the first six months of the Administration, with the vast majority - 91% - relating to complaints about alleged discrimination on the basis of disability.

USED notifies Harvard University's accreditor of Title VI violation; U.S. Department of Homeland Security (DHS) subpoenas Harvard University for international student information: On July 9, USED’s Office of Postsecondary Education and HHS’s Office for Civil Rights notified the New England Commission of Higher Education of its determination that Harvard University is in violation of Title VI of the Civil Rights Act of 1964 and therefore may fail to meet the Commission’s standards for accreditation. Once an accreditor takes action, institutions have a period of time to respond regarding how they are remedying the issue. If an institution ultimately loses accreditation, it also loses the ability to offer its students Federal Student Aid, including Pell Grants and student loans.

Separately, on July 9, DHS announced that it would send administrative subpoenas to Harvard University regarding its Student Visitor and Exchange Program. DHS wrote in its announcement that the subpoenas follow the university “repeatedly refus[ing] past non-coercive requests to hand over the required information for its Student Visitor and Exchange Program (SVEP) certification.” DHS previously requested this information from the university on April 16 in conjunction with an announcement of $2.7 million in terminated federal grants.

Visit EducationCounsel’s Deep Dive, The Trump Administration vs. Harvard University, for a detailed account of the overall timeline of events, Harvard’s lawsuit against the federal government, and a range of Administration actions by several agencies.

USED’s OCR launches Title VI investigation into Connetquot Central School District over Native American logo ban: On July 9, USED’s OCR announced an investigation into Connetquot Central School District in New York regarding alleged efforts to remove its Native American mascot and imagery, the Thunderbirds. The investigation follows a complaint from the Native American Guardians Association (NAGA). OCR will determine whether the school district is in violation of Title VI of the Civil Rights Act. The action follows other investigations in New York, including a finding in May that the New York State Board of Regents violated Title VI by implementing a statewide prohibition on names, mascots, or logos based on Native American race and national origin.

USED announces foreign funding investigation into the University of Michigan: On July 15, USED’s Office of the General Counsel (OGC) announced an investigation into the University of Michigan regarding “inaccurate and incomplete disclosures” of foreign funding. The investigation requests from the University its tax records from January 2020 through the present, written descriptions of its procedures to achieve compliance with the Higher Education Act’s Section 117 foreign funding disclosure requirements, and copies of written agreement(s) with foreign governments and educational institutions, among many other records.

Personnel:

USED announces appointment of National Center for Education Statistics (NCES) Acting Commissioner Dr. Matthew Soldner: On July 7, USED announced Dr. Matthew Soldner will also serve as the Acting Commissioner of the National Center for Education Statistics (NCES). Dr. Soldner has served as the Acting Director of the Institute of Education Sciences (IES) since April 2024. The announcement notes that Dr. Soldner will work “to ensure all NCES reports and products are usable and relevant,” and “oversee the ongoing preparation and administration of the 2026 National Assessment of Educational Progress (NAEP) in January 2026.”

USED announces new Trump Administration appointees: On July 16, USED announced the following new Trump Administration nominations:

• John Huston as Deputy General Counsel for Postsecondary Education and Competition in the Office of the General Counsel. Mr. Huston served in the first Trump Administration as a senior advisor in the Office of Postsecondary Education at the Department.
• Diana Díaz-Harrison as Deputy Assistant Secretary in the Office of Special Education and Rehabilitative Services, who most recently served as the Lead Founder and Executive Director of Arizona Autism Charter Schools, a charter school network focused on educating students with autism. Ms. Diaz-Harrison also founded the National Accelerator of Autism Charter Schools, a national training and technical assistance initiative designed to support the development of autism-focused charter schools in major metropolitan areas across the United States.
• Pamela Davidson as Deputy Assistant Secretary for Higher Education in the Office of Legislative and Congressional Affairs, who most recently served as an Associate Vice President for Government Relations and Public Policy with the Association of American Universities. Ms. Davidson also served as a Professional Staff Member for former Senator Mike Enzi (R-WY) on the Senate Health, Education, Labor and Pensions Committee and as a Senior Policy Advisor to Senator Bill Cassidy (R-LA).
• Meg Kilgannon as Director of Strategic Partnerships, who previously served as the Director of the Office of Faith and Opportunity Initiatives in the first Trump Administration.
• Dr. Anna Miller as Senior Advisor to the Office of Special Education and Rehabilitative Services, who most recently worked as a Postdoctoral Scholar in the Special Education Department at Vanderbilt University where she worked on projects supporting the development of instructional tools to support K-12 students with and at-risk for learning disabilities.
• Ellia Rosado as the Digital Director, who most recently worked as a Communications Specialist for the America First Policy Institute.

U.S. Department of Justice (DOJ):

U.S. Department of Justice (DOJ) sues California over trans-inclusive policies: On July 9, the DOJ sued the California Department of Education (CDE) and the California Interscholastic Federation (CIF) in a federal court in the Central District of California. The complaint alleges that the state is engaged in sex discrimination prohibited under Title IX by maintaining policies that allow transgender student athletes to participate in athletics and use locker rooms and other intimate spaces aligned with their gender identity. This lawsuit will proceed in parallel with a preemptive lawsuit the state of California filed on June 9 in the Northern District of California to challenge the Administration’s earlier threats to take this exact legal action. The dispute began in May when President Trump called on CIF to bar a transgender high school athlete from the track and field championships and later threatened that “large scale fines will be imposed” on the state after the athlete participated and medaled in two events. On June 3, DOJ sent a letter to all California school districts warning them of “legal liability” and potential violation of the Equal Protection Clause should they maintain their current policies. On June 25, USED announced its findings that CDE and CIF’s trans-inclusive athletics policies violate Title IX and, following California’s refusal to accept the Department’s proposed resolution, referred the matter to DOJ, which then filed the lawsuit described above.

Congress:

Congress passes rescissions package: On July 18, the House voted  216-213 to pass H.R. 4, the Rescissions Act of 2025. Two Republicans, Representatives Brian Fitzpatrick (R-PA) and Michael Turner (R-OH) voted against the bill. Previously, the Senate passed the rescissions package on July 17 by a vote of 51-48.  The bill passed the Senate with two Republicans opposing the measure – Senators Susan Collins (R-ME) and Lisa Murkowski (R-AK). The package codifies the “Department of Government Efficiency,” previous efforts to primarily reduce foreign assistance spending, as well as rescinds $1.07 billion for the Corporation for Public Broadcasting (CPB), which provides grants to the Public Broadcasting Service (PBS) and National Public Radio (NPR). Prior to the vote in the Senate, $400 billion in rescissions proposed by the Trump Administration to PEPFAR, which is a global HIV/AIDS program, were removed from the bill.

Senate:

Senate Appropriations Committee passes fiscal year (FY2026) Agriculture Appropriations bill: On July 10, the FY2026 Senate Agriculture Appropriations bill was unanimously approved by the Senate Appropriations Committee. Specifically, the bill includes $118.139 billion in mandatory funding for Supplemental Nutrition Assistance Program (SNAP, which provides basic nutrition assistance benefits for low-income individuals (-$4.244 billion/-3.5% below the FY25 CR; $4 million/0.0% above the FY26 President’s request; -$2 million/0.0% below the FY26 House level). Of this amount, $696 million is included for the SNAP Employment & Training program, which is designed to help SNAP recipients gain skills and find work that leads to economic self-sufficiency ($16 million/2.4% above the FY25 CR; level with FY26 President’s request; not comparable to FY26 House level). While the bill was approved with bipartisan support, Senate Appropriations Committee Chair Susan Collins (R-ME) and Ranking Member Patty Murray (D-WA) have yet to agree on topline spending levels. The bill could now move to the Senate for full consideration, though Senate Majority Leader John Thune (R-SD) has yet to announce a schedule for bringing FY26 appropriations bills to the Senate floor.

House:

House Education Committee holds hearing on antisemitism on college campuses: On July 15, the House Education and Workforce Committee held a hearing titled, “Antisemitism in Higher Education: Examining the Role of Faculty, Funding, and Ideology.” The committee heard from three university presidents: Dr. Robert Groves, Interim President at Georgetown University; Dr. Félix Matos Rodríguez, Chancellor of The City University of New York; and Dr. Rich Lyons, Chancellor of University of California, Berkeley. The committee also heard from Matt Nosanchuk, a former Deputy Assistant Secretary for USED’s OCR during the Biden Administration.

In opening remarks, Committee Chair Tim Walberg (R-MI) said the hearing would “examine the main drivers of antisemitism on college campuses such as policies on diversity, equity, and inclusion (DEI), foreign funding, unions, and faculty members that espouse antisemitism.” Highlighting DEI policies in particular, Chair Walberg argued, “the DEI ideology embraced by so many university bureaucrats categorizes Jews as white oppressors—and therefore excuses, or even justifies, antisemitic harassment.”

Ranking Member Bobby Scott (D-VA), in his remarks, condemned antisemitism, but noted that the committee has held nine hearings in the past 18 months, but no other hearings on “other forms of bigotry or racism or other challenges facing students on campuses across the country.” Ranking Member Scott said that “if we are seriously interested in addressing this and other forms of bigotry, we [need to ensure] vigorous enforcement of Title VI of the Civil Rights Act and enforced by the Office for Civil Rights, and this committee has said nothing about the wholesale dismantling of the OCR [by the Trump Administration]”

Republican members were uniformly critical of the campus presidents and claimed their policies were not addressing antisemitism, and highlighting the role of some campus organizations, unions, and professors. Democratic members shared concerns about antisemitism but highlighted the Trump Administration's efforts to dismantle the Department of Education, OCR in particular.

U.S. Courts:

U.S. Supreme Court allows USED Reduction in Force (RIF) to proceed at USED: On July 14, the Supreme Court allowed the Administration’s mass reduction in force (RIF) at USED to take place while a pair of consolidated lawsuits challenging it proceeds in a Massachusetts federal court. This “emergency docket” decision had no accompanying opinion or explanation, but three Justices noted their disagreement, with Justice Sotomayor writing a 19-page dissent joined by Justices Jackson and Kagan. In her press release celebrating the decision, Secretary McMahon stated that “this Administration will continue to perform all statutory duties.” According to the dissenting Justices, however, the Court’s action “hands the Executive the power to repeal statutes by firing all those necessary to carry them out.”

Plaintiffs, including a group of 21 states as well as a coalition of unions and school districts, had previously secured a preliminary injunction halting Secretary McMahon’s plan to terminate about a third of the agency’s workforce via a RIF and about half of USED’s employees in total when combining other actions such as terminating probationary employees. The First Circuit Court of Appeals agreed to keep the injunction in place, but the Supreme Court lifted the injunction, allowing the Administration to carry out its planned RIFs while the case proceeds toward a final resolution. Initial reports indicate USED is now planning to implement the RIFs on August 1.

• For now, the RIF should not include USED’s Office for Civil Rights (OCR). The Administration’s RIF announcement called for significant reductions at OCR including closing seven of the twelve regional offices, but a different lawsuit brought by the Victim Rights Law Center and two children affected by the RIF separately secured a preliminary injunction halting just the OCR terminations. The Supreme Court’s action today does not directly affect that injunction, but it is likely that the Administration will now seek to appeal. (In the meantime, USED continues to provide the court with regular status updates about its efforts to comply with the injunction in the OCR case, such as this July 8 update.)
• The Supreme Court’s action may also have implications for lawsuits challenging RIFs at other federal agencies. On July 8, the Supreme Court issued a decision allowing the Trump Administration to continue implementing RIFs across multiple agencies, including HHS, the National Science Foundation, and over a dozen other agencies. The decision reversed a lower court’s order in May that halted mass terminations while the case proceeded. (USED was not named in the complaint in this case because its RIF and the lawsuits challenging it had already moved forward.) In its decision, the Supreme Court wrote that President Trump’s “DOGE” executive order calling for agency reorganizations and RIFs—and a corresponding OMB memo about planning for them—are likely to be found lawful on their own terms. The Court noted, however, that it “express[ed] no view on the legality of any Agency RIF and Reorganization Plan.” Accordingly, agency-specific plans may still be challenged in lawsuits, but the Supreme Court’s decision in the USED case casts doubt on the viability of those suits.

Upcoming Events (Congress & Administration):

• On July 22 at 10:15 a.m., the Senate Finance Committee will hold a hearing to consider Trump Administration Nominations. Among the nominations is Alex Adams to be Assistant Secretary for Family Support of the Department of Health and Human Services. The hearing will be held in 215 Dirksen Senate Office and livestreamed here.
• On July 23 at 10:15 a.m., the House Education and Workforce Committee will markup legislation. Among five bills being considered is H.R. 4312, Student Compensation and Opportunity through Rights and Endorsements (SCORE) Act. The SCORE Act is designed to protect the name, image, and likeness rights of student athletes and to promote fair competition with respect to intercollegiate athletics, and for other purposes. The markup will be held in 2175 Rayburn and livestreamed here.
• On July 23 at 2:00 p.m., the Senate Health, Education, Labor, and Pensions (HELP) Subcommittee on Education & the American Family will hold a hearing titled, “Choice and Literacy: Empowering Families for Better Educational Results.” Witnesses have not yet been announced. The hearing will be held in 430 Dirksen Senate Office Building and livestreamed here.
• On July 24, the Senate HELP Committee will hold an Executive Session on Trump Administration Nominations. The nominations to be considered include David Barker to be Assistant Secretary for Postsecondary Education and Mary Christina Riley to be Assistant Secretary for Legislation and Congressional Affairs at the USED, among others. The hearing time and location have not yet been announced. More information is here.

Upcoming Events (Outside Organizations):

• On July 23 at 3:00 p.m., the Grantmakers for Thriving Youth (GTY) will host a webinar titled, "Youth Leaders on Mental Health: Pathways to Healing & Wellbeing for All." GTY and the National Collaborative for Transformative Youth Policy will lead a discussion about youth mental health and well-being. Participants will hear directly from youth leaders from across the country about how they are ensuring they and their peers have the support they need to thrive. Speakers include: Mikayla Arciaga, Georgia Advocacy Director at the Intercultural Development Research Association; Saanvi Arora, Executive Director at the Youth Power Project; Hazel Guzman, Program Officer for Adolescent Mental Health at the Carmel Hill Foundation; and Naomi Porter, National Collaborative for Transformative Youth Policy at Changemaker. Registration is here.
• On July 24 at 1:30 p.m., the Partnership to Advance Youth Apprenticeship (PAYA) will host a webinar titled, “State Approaches to Youth Apprenticeship.” The webinar will explore how three states are harnessing their state's definition of youth apprenticeship (or lack of one) to run effective apprenticeship programs for high-school aged youth. Speakers include: Denise Miller, Ed.D., State Director of Apprenticeship Colorado; Laz Lopez, Associate Superintendent for Teaching and Learning at High School District 214 and Chair of the Illinois Community College Board; and Lancy Downs, Senior Policy Analyst at New America. Registration is here.

Publications (Congress & Administration):

• On June 30, the Treasury Inspector General for Tax Administration published a report titled, “The IRS Transferred Incorrect Federal Tax Information to the Department of Education for Federal Student Aid.” The report reviewed the IRS's transfer of incorrect taxpayer data to the Free Application for Federal Student Aid (FAFSA) application system, which was announced in 2024. The analysis found that 7.2 million FAFSA requests were potentially affected by the incorrect federal tax information.

Publications (Outside Organizations):

• On July 6, the Institute on Taxation and Economic Policy (ITEP) published a blog post titled, “Megabill Takes Cap Off Unprecedented Private School Voucher Tax Credit, Potentially Raising Cost by Tens of Billions Relative to Earlier Version.” The post analyzed the federal tax credit designed to expand school choice and provide vouchers for private and religious K-12 schools as it appeared in the final budget reconciliation bill, which removed the aggregate cap on the tax credit. The analysis found that if an estimated 59 million taxpayers (43% of taxpayers) claim the credit, the cost to the federal government would be $101 billion per year.
• In July, FutureEd released a report titled, “Directional Signals: A New Analysis of the Evolving Private School Choice Landscape.” The report looked at the growth of universal private school choice programs and the participation, spending, achievement results, provider landscape, and student demographics in 10 states. Among its findings, the report concluded that participants in these programs skewed toward more affluent and white families; the number of students using universal choice programs grew nearly 40% between the 2023-2024 and 2024-2025 school years.

Legislation:

Introduced in the House of Representatives:

H.R. 4312

A bill to protect the name, image, and likeness rights of student athletes and to promote fair competition with respect to intercollegiate athletics, and for other purposes.
Sponsor: Rep. Gus Bilirakis (R-FL)

H.R. 4318

A bill to amend the Higher Education Act of 1965 to include child development and early learning as community services under the Federal work-study program.
Sponsor: Rep. Joaquin Castro (D-TX)

H.R. 4329

A bill to amend the National and Community Service Act of 1990 to establish an Office of Civic Bridgebuilding within the Corporation for National and Community Service, and for other purposes.
Sponsor: Rep. Chrissy Houlahan (D-PA)

H.R. 4330

A bill to amend the Internal Revenue Code of 1986 to establish the Early Childhood Education Trust Fund consisting of amounts paid for the estate tax and made available to fund child care services, and for other purposes.
Sponsor: Rep. Sara Jacobs (D-CA)

H.R. 4363

A bill to require elementary schools, secondary schools, and institutions of higher education to ensure biological fairness in women's sports as a condition of receiving Federal funds, and for other purposes.
Sponsor: Rep. Andy Barr (R-KY)

H.R. 4418

A bill to increase the quality and supply of child care and lower child care costs for families.
Sponsor: Rep. Bobby Scott (D-VA)

H.R. 4444

A bill to provide a more equitable discharge standard for student loan borrowers.
Sponsor: Rep. Lou Correa (D-CA)

H.R. 4448

A bill to amend the Civil Rights Act of 1964 and the Fair Housing Act to prohibit disparate-impact claims.
Sponsor: Rep. Brandon Gill (R-TX)

H.R. 4450

A bill to repeal the Federal charter for the National Education Association.
Sponsor: Rep. Mark Harris (R-NC)

H.R. 4451

A bill to amend the Richard B. Russell National School Lunch Act to enhance direct certification under the school lunch program.
Sponsor: Rep. Jahana Hayes (D-CT)

H.R. 4452

A bill to amend the Workforce Innovation and Opportunity Act to create a new national program to support mid-career workers in reentering the STEM workforce, by providing funding to small- and medium-sized STEM businesses so the businesses can offer paid internships or other returnships that lead to positions above entry level.
Sponsor: Rep. Chrissy Houlahan (D-PA)

H.R. 4534

A bill to codify Executive Order 14191 relating to expanding educational freedom and opportunity for families, and for other purposes.
Sponsor: Rep. Gregory Steube (R-FL)

H.Res. 569

A resolution affirming that diversity, equity, inclusion, and accessibility are fundamental values of the United States and emphasizing the ongoing need to address discrimination and inequality in the workplace, elementary, secondary, and higher education systems, government programs, the military, and our society.
Sponsor: Rep. Adriano Espaillat (D-NY)

Introduced in the Senate:

S. 2251

A bill to amend the Elementary and Secondary Education Act of 1965 to prevent the use of funds under such Act to teach or advance concepts related to gender ideology, and for other purposes.
Sponsor: Sen. James Risch (R-ID)

S. 2295

A bill to increase the quality and supply of child care and lower child care costs for families.
Sponsor: Sen. Patty Murray (D-WA)

S. 2306

A bill to amend the Workforce Innovation and Opportunity Act to create a new national program to support mid-career workers in reentering the STEM workforce, by providing funding to small- and medium-sized STEM businesses so the businesses can offer paid internships or other returnships that lead to positions above entry level.
Sponsor: Sen. Jacky Rosen (D-NV)

S. 2310

A bill to repeal the Federal charter for the National Education Association.
Sponsor: Sen. Marsha Blackburn (R-TN)

S. 2323

A bill to amend the Head Start Act to permit some teachers in Early Head Start programs to teach while earning a child development associate credential.
Sponsor: Sen. Raphael Warnock (D-GA)

S. 2330

A bill to direct the Secretary of Education to carry out a grant program to support the recruitment and retention of paraprofessionals in public elementary schools, secondary schools, and preschool programs, and for other purposes.
Sponsor: Sen. Ed Markey (D-MA)

S. 2337

A bill to establish a grant program to provide child care services for the minor children of law enforcement officers to accommodate the shift work and nontraditional work hours of such officers, and to enhance recruitment and retention of such officers.
Sponsor: Sen. Kristen Gillibrand (D-NY)

S. 2350

A bill to provide for the confidentiality of information submitted in requests for deferred action under the deferred action for childhood arrivals program, and for other purposes.
Sponsor: Sen. Martin Heinrich (D-NM)