Budget reconciliation passes the Senate
On April 4, floor debate on the compromised version of the budget blueprint took place. Amendments were suggested and voted upon, but there was no additional debate. Voting took place, and the bill passed the Senate reaching the 50-vote threshold. The measure will now be considered by the House.
The Senate version of the bill amends the budget resolution previously passed by the House. Some key features of the legislation include:
- making the expiring 2017 tax cuts permanent
- adding new tax breaks
- lifting the debt ceiling by as much as $5 trillion
- $150 billion in new defense spending
- $175 billion for border security and immigration enforcement
- an additional $20 billion within the Senate Commerce Committee’s jurisdiction, specifically set aside for the Coast Guard
Additionally, the bill includes different instructions for both House and Senate committees to set their own spending thresholds for reconciliation, with the Senate committees being required to cut spending by at least $3 billion and the House committees to cut spending by at least $1.5 trillion.
Senate DETERRENT Act introduced
On April 4, Senators Thom Tillis (R-NC) and Bill Cassidy (R-LA) introduced a new version of the DETERRENT act that differs from the recent bill passed in the House on March 27. The measure continues to address disclosure requirements for higher education institutions on foreign gifts and contracts. Both bills aim to increase transparency on collaborations with outside entities.
The Senate version removes section 117C, which addresses university endowments from other countries, from the House bill. Additionally, section 117B — which requires institutions to implement a searchable public database for reported foreign gifts and contracts to individual faculty and staff — was adjusted to add some privacy for faculty in the Senate bill. It also increases the disclosure threshold for gifts and contracts with foreign entities to $50,000 instead of the $5,000 minimum in the House edition.
The bill will move to the Senate Health, Education, Labor, and Pensions (HELP) Committee, where Senator Cassidy serves as chairman. The measure falls into the Department of Education’s jurisdiction, but there is some discussion about rehousing this bill’s responsibilities to the National Science Foundation or other agencies such as the Department of the Treasury. Senate HELP Committee staff has not indicated a clear timeline for when this bill will begin to be marked up.
UNC Federal Affairs continues to work closely on this legislation with our Congressional delegation as well as Senator Tillis’ office.
HHS announces major reorganization and workforce reductions
On March 27, the U.S. Department of Health and Human Services (HHS) announced a substantial organizational restructuring aimed at improving efficiency and reducing costs. The plan includes the consolidation of 28 divisions into 15 main units and a reduction of approximately 10,000 full-time positions. Key agencies affected include the Food and Drug Administration, the Centers for Disease Control and Prevention, the National Institutes of Health, and the Centers for Medicare & Medicaid Services.
The implementation of the restructuring began on April 1, with employees receiving termination notices. HHS Secretary Robert F. Kennedy Jr. has acknowledged that a portion of the layoffs were issued in error, estimating that roughly 20% will be reversed.
The reduction has prompted several responses from Congress:
- Senate Health Committee Hearing: Senators Bill Cassidy (R-LA) and Bernie Sanders (D-VT) have called for Kennedy to testify before the Senate Health Committee to explain the rationale and implications of the job cuts.
- Congressional Letters: On March 31, Democratic Appropriations Committee leaders sent a letter to HHS expressing concerns that the restructuring plan disregards congressional appropriations and may violate the law.
- Public Statements: The Democratic Congressional Doctors Caucus issued a statement condemning the layoffs, warning of devastating consequences for public health and safety.
Senate confirms OSTP and NIH leaders
On March 25, the Senate confirmed two vital science posts in the new administration. Michael Kratsios was confirmed with a vote of 74-26 to be the director of the White House Office of Science and Technology Policy (OSTP). Additionally, Jay Bhattacharya was confirmed with a vote of 53-47 to serve as the director of the National Institutes of Health (NIH). After successful confirmation votes, the two will now assume their new positions.
Executive order issued on Department of Education
On March 21, President Trump issued an executive order (EO) entitled, “Improving Education Outcomes by Empowering Parents, States, and Communities.” The aim of this measure is to dismantle the Department of Education with the goal of strengthening education in the U.S. with individual states taking over many of the agency’s powers.
Additionally, President Trump stated that some of the department’s responsibilities will be taken over by other agencies, transitioning the management of student loans to the Small Business Administration. To fully abolish an agency, Congressional action must take place. There has not yet been any legislation introduced to act upon this EO, and it remains unclear how it will be implemented.