Federal Update - July 15

July 15, 2026

GOVERNMENT RELATIONS HIGHLIGHTS

Congress Behind on Spending: September CR Likely 

Walberg Unveils ED Restructuring Package: House Republicans Seek to Codify Operational Transfers

Senate Shakeups: Both Parties Search for New Candidates 

Clarifying RISE: ED Makes Mistake in Program List 

MOVEMENT ON APPROPRIATION STALLS

What You Need to Know  

July is typically one of the busiest months on Capitol Hill, with lawmakers traditionally working to advance all twelve appropriations bills before the August recess. This year, however, progress has slowed considerably in both chambers. In the Senate, Appropriations Chair Susan Collins (R-ME) and Ranking Member Patty Murray (D-WA) have yet to reach agreement on topline spending levels. Recent disruptions have further complicated negotiations, including the hospitalization of Senator McConnell (R-KY) and the death of Senate Budget Committee Chair Graham (R-SC), both influential figures in negotiations. In the House, Speaker Johnson (R-LA) appears to have reached a temporary truce with conservative members who had refused to advance legislation without action on President Trump's election reform legislation. 

Why This Is Important  

Despite the slowdown, Congress is still expected to pass a short-term continuing resolution in September to avoid a government shutdown when the fiscal year ends on September 30. With lawmakers scheduled to spend much of October campaigning ahead of the midterm elections, final funding decisions are increasingly likely to be deferred until the post-election lame-duck session. 

EDWORKFORCE TEES UP BILLS FORMALIZING IAAS

What You Need to Know  

Over the past year, ED has entered into 14 interagency agreements (IAAs) with six federal agencies as part of the Trump Administration’s broader effort to restructure, and ultimately eliminate, the agency. These agreements have transferred responsibility for a number of programs and functions, including workforce development initiatives and portions of the federal student loan portfolio. On Friday, House EdWorkforce Committee Chairman Tim Walberg (R-MI), joined by seven Republican members of the committee, introduced the ten-bill “Less Bureaucracy, Better Education” package. The bills would formally codify many of the transfers already underway. Notably, the bills do not make substantive changes to the underlying programs, grant structures, or statutory requirements governing ED activities. 

Why This Is Important  

While the package is expected to advance out of committee on a party-line vote, its path beyond that is uncertain. Republicans' narrow House majority, a compressed legislative calendar ahead of the August recess, and competing priorities could make floor consideration in the House difficult. Even if the legislation clears the House, it faces long odds in the Senate, where bipartisan opposition is expected to be strong.

BOTH PARTIES SCRAMBLE FOR NEW NOMINEES

What You Need to Know 

The unexpected death of Senator Graham has triggered a scramble among South Carolina Republicans to select a nominee for the seat. Graham's sister, Darline Graham Nordone, has been appointed to serve temporarily. Republicans will hold a special election on August 11 to select their nominee. The race could attract a crowded field, and President Trump has already endorsed Representative Russell Fry (R-SC). Republicans remain favored to retain the seat in November. 

Why This Is Important 

Democrats are facing their own candidate challenges. In Maine, Democratic Senate nominee Graham Platner withdrew from the race last week following allegations of sexual assault. Democrats are expected to select a replacement nominee later this month. The Maine race remains one of the most competitive Senate contests of the cycle. Collins is the only Republican senator seeking reelection in 2026 in a state carried by Kamala Harris in 2024, making the race a key battleground as both parties compete for control of the Senate. 

ED UPDATES "PROFESSIONAL DEGREE" GUIDANCE

What You Need to Know 

On May 1, ED published the Reimagining and Improving Student Education (RISE) final rule in the Federal Register. After a June 24 court ruling, ED was required to freeze implementation of certain elements of the “professional degree” definition. To comply with the court’s order, on June 29, ED published guidance with an expanded list of professional degree programs. On July 10, ED updated the guidance by adding the Clinical Psychology PhD program to the list of professional degrees.  

Why This Is Important 

Clinical Psychology PhD programs were included in the professional degree definition in the RISE final rule. For this reason, a number of schools were surprised to see the Clinical Psychology PhD excluded from ED’s June 29 professional degree list. However, ED’s July 10 guidance indicated that the Clinical Psychology PhD was “inadvertently not included in the initial list.” This oversight was likely the result of ED’s rapid response to the judge’s order, diminished agency capacity due to staffing cuts, and the pace of ED’s aggressive regulatory agenda.