Congress Remains on Recess Ahead of Crunched Appropriations Schedule
This week, Congress remained on July 4 recess following the gradual ramp-up of the fiscal year (FY) 2027 process throughout June. As previously reported, the Senate appropriations process made little progress amid continued disagreements over FY27 funding levels, with much of the debate focused on parity between defense and non-defense discretionary levels of investment.
ACTION ALERT: Ask your member of Congress to support Education and Workforce Funding in FY27.
With many bills left to consider, Advance CTE will continue to monitor the status of FY27 appropriations and advocate for strengthened federal investments in Career Technical Education (CTE). As previously reported, the Labor, Health and Human Services, Education, and Related Agencies (Labor-HHS-ED) bill has advanced out of committee in the House but has yet to be scheduled for a vote by the full chamber. As of today, the Senate has yet to schedule an appropriations subcommittee markup on the legislation. The House will begin its summer recess on July 23, with the Senate recess beginning on August 7.
House Republicans Introduce Legislation to Codify Most Interagency Agreements
Yesterday, Republican members of the House Committee on Education and the Workforce introduced a legislative package titled “Less Bureaucracy, Better Education”. The slate of bills seeks to codify most of the 14 Interagency Agreements (IAAs) that seek to share the administration of programs that are statutorily housed within the U.S. Department of Education (ED) with other federal agencies, including the Department of Labor (DOL). Notably, the package did not include a proposal to codify recent efforts to transfer the administration of special education from ED to the Health and Human Services Department. Among the proposals is the Better Workforce Development Act, introduced by Chairman Tim Walberg (R-MI), which would transfer the Office of Career, Technical, and Adult Education (OCTAE) from ED to the U.S. Department of Labor (DOL). This proposal would codify the first IAA introduced last year, affecting the administration of Perkins V and adult education and family literacy activities authorized by Title II of the Workforce Innovation and Opportunity Act (WIOA).
Advance CTE will continue to closely monitor these proposals, particularly in light of the significant concerns previously raised about these efforts and its wider implications for the CTE community.
Congressional Attention Directed Toward Uniform Grant Guidance
Last week, the House Appropriations Subcommittee on Financial Services and General Government held an oversight hearing with the Office of Management and Budget (OMB) Director Russell Vought. The hearing focused primarily on the administration’s proposed updates to the Uniform Grant Guidance (UGG). As previously reported, the UGG was introduced earlier this summer with government-wide implications for federal grant processes. During the hearing, Rep. Glusenkamp Perez (D-WA) questioned the OMB Director on the ways the proposal is likely to impact CTE programs, particularly student participation in Career Technical Student Organizations (CTSOs). Director Vought did not directly address these concerns, instead focusing on provisions related to indirect costs. Also discussed during the hearing was the administration’s use of artificial intelligence (AI) tools to support implementation of these efforts, with Director Vought emphasizing that AI tools would supplement agency decision-making.
More broadly, Director Vought defended the proposed changes to the uniform grant guidance and indicated that OMB does not plan to extend the public comment period despite receiving a high volume of comments. Watch the hearing here.
This week, separately, Senate Appropriations Committee Chair Susan Collins (R-ME) sent a letter to Director Vought, urging OMB to extend the comment period and withdraw several proposed provisions in the rulemaking. Sen. Collins expressed concerns about the growing political influence over federal grantmaking and the new burdens imposed on grant recipients, particularly proposed payment justifications that would be required to draw down on federal funding. Read the full letter here.
The UGG public comment window closes early next week, on July 13. Read the regulation and submit comments here.
Advance CTE plans to submit comments in response to this proposal to address the significant and widespread concerns about this rulemaking’s potential negative impact on CTE programs and related operations.
Senate Democrats Send Letter to Secretary McMahon on IAA Use
At the end of June, Senate Democrats, led by Sen. Mark Kelly (D-AZ), sent a letter to ED Secretary Linda McMahon requesting additional information about the administration’s expanding use of interagency agreements. The lawmakers raised concerns about potential impacts on program administration, congressional oversight, and the Department’s statutory responsibilities, while seeking greater transparency on implementation and costs. Read the letter here.
Odds & EDs
- This week, ED held the first-of-its-kind higher education fraud summit, convening federal agencies to discuss efforts to prevent fraud and strengthen program integrity. The event highlighted ED’s ongoing efforts to focus on oversight of higher education initiatives. Read about the summit here.
- Last week, ED finalized regulations establishing accountability requirements for higher education programs. The rule creates the Student Tuition and Transparency System (STATS) and implements earnings-based performance measures intended to increase transparency and hold institutions accountable for outcomes. Read more about the rule here.
- Earlier this summer, the ED Office of Inspector General (OIG) released a report examining recent staffing reductions and operational changes at the Department, highlighting the potential risks associated with the agency’s restructuring. Read the “Review of U.S. Department of Education Changes in Staffing and Operations” report here.
