GW Weekly Federal Update (February 5)

Recent Federal Actions

Congress

• On February 3, the House of Representatives voted 217–214 to pass a five-bill fiscal year 2026 spending package covering Defense, Financial Services–General Government, Labor–HHS–Education, National Security–State, and Transportation–HUD, along with a two-week extension of funding for the Department of Homeland Security under FY25 levels. The U.S. Senate approved the package the previous week by a 71–29 vote, and the legislation was signed into law the same day by President Trump, ending a brief government shutdown that began after funding lapsed. The enacted legislation provides full-year funding for most federal agencies through September 30, maintaining level funding for the U.S. Department of Education (ED) and increasing funding for the National Institutes of Health (NIH) by $400 million compared to the prior fiscal year, while largely rejecting proposed reductions to several research agencies. Funding for DHS is set to expire again on February 13, requiring further congressional action. Members of Congress noted that the final agreement establishes full-year appropriations and includes provisions addressing staffing and program continuity across agencies.

Department of Education

• A recent report from the Government Accountability Office (GAO) examines ED’s decision to reverse planned layoffs affecting nearly 300 employees in its Office for Civil Rights. The report estimates that the reduction in force, which occurred in multiple phases beginning in October and March, could have cost between $28.5 million and $38 million. Some employees were recalled before the layoffs were formally reversed in January, though the report does not specify how many staff ultimately returned. According to the GAO, congressional action overturned one round of layoffs, and without those reversals, staffing at the Office for Civil Rights would have declined substantially from prior levels. The report also found that the department did not fully document projected costs and savings associated with the layoffs, as outlined in federal guidance. GAO recommended estimating the full costs and savings of the actions previously taken, a recommendation the department declined on the grounds that the layoffs had been rescinded.
   
• In November 2025, Reimagining and Improving Student Education (RISE) negotiated rulemaking committee approved a draft framework for new federal student loan limits for graduate and professional students. On January 29, ED published its formal proposed rule in the Federal Register, opening a public comment period through March 2. The proposal, developed in response to the higher education provisions of H.R.1, would end Grad PLUS loans, limit Parent PLUS loans, and cap borrowing for graduate students based on whether their programs are designated as “professional,” with an anticipated effective date of July 1. The department proposed automatically designating 11 programs as professional; however, nursing and other technical graduate programs are not included in this category and would therefore be subject to lower borrowing limits. Following the proposal, Democrats in the House introduced legislation to amend the underlying law and have urged the department to reconsider the loan-cap approach, as the department moves toward reviewing public comments and finalizing the rule.

Higher Education Institutions

• Harvard: President Trump has demanded a cash payment of $1 billion “in damages” from Harvard University, just hours after reports that he had backtracked on a demand that Harvard pay the administration $200 million in a financial settlement.

National Science Foundation

• On January 23, the National Science Foundation issued a “Dear Colleague” letter requesting input from agency partners and the research community on a proposed restructuring of the National Center for Atmospheric Research, a federally funded research and development center. The request follows an announcement on December 17, 2025, that NSF intends to reassess the scope and management of weather and atmospheric science infrastructure currently operated by NCAR, with responses due by March 13. According to the letter, NSF is exploring options that could include changes to stewardship of observational platforms, modeling and forecasting activities, cyberinfrastructure, training functions, and physical facilities, with an emphasis on efficient and cost-effective operations. In December, Russell Vought publicly stated that NSF planned to break up NCAR, drawing attention to the agency’s review. NSF indicated that materials submitted in response to the request for input will be used to inform future decisions, though the agency will not provide formal responses to individual submissions.

Resources and Reminders

About this Newsletter

GW publishes this weekly Federal Update to inform students, faculty and staff about how developments in the federal government affect higher education generally and the University. This newsletter includes timely information, answers to questions from GW community members, and resources for support.