House committee markups begin in the reconciliation process
The House passed an updated reconciliation bill before the two-week April recess. The next step in the process has started and consists of various House committees marking up their reconciliation bill. They have been tasked with finding at least $1.5 trillion in cuts over the next 10 years.
The House Education and the Workforce Committee recently held a markup on their bill entitled, the “Student Success and Taxpayer Savings Plan” and was charged with finding at least $330 billion in spending cuts over the next 10 years. To do so, the bill alters federal student aid and loan programs.
For example, some of the provisions establish risk-sharing policies requiring universities and colleges to pay the unpaid interest and principal on certain federal student loans back to the federal government. The provisions also set loan borrowing limits, limit Parent PLUS loans, eliminate Grad PLUS loans, and require students to be registered for 15 credit hours per semester to be eligible for the maximum Pell Grant. The measure advanced through the committee with a vote along party lines.
Additionally, the House Homeland Security Committee hosted their markup and passed the measure. Their bill includes $69 billion in new spending. Much of that will go toward President Trump’s immigration efforts, but it also adds funding for programs such as the Golden Dome missile defense system as well as:
- $250 million for directed energy research,
- $3.24 billion for the National Nuclear Security Administration,
- $250 million for “advancement of the artificial intelligence ecosystem,” and
- $250 million for the Quantum Benchmarking Initiative.
Other committees that met recently include the Armed Services, Judiciary, Financial Services, Oversight and Government Reform, and Transportation and Infrastructure Committees. Markups will also need to take place for additional committees including Ways and Means, Energy and Commerce, and more.
The GOP are hoping to have a full reconciliation package hit the House floor the week of May 19 with the goal of passing the full tax agenda by July 4. UNC Federal Affairs will continue to provide timely updates as they arise.
Senate appropriations hearing on biomedical research innovation
On Wednesday, April 30, the Senate Appropriations Committee held the first of a two-part committee hearing series titled, “Biomedical Research: Keeping America’s Edge in Innovation.” The hearing included five witnesses who shared their input on research, including:
- Sudip Parikh, CEO of the American Association for the Advancement of Science,
- Herman Haller, president of Mount Desert Island Biological Laboratory,
- Cartier Esham, executive Director of Alliance for a Stronger Food and Drug Administrator,
- Barry Paul Sleckman, director of the O’Neal Comprehensive Cancer Center at the University of Alabama at Birmingham, and
- Emily Stenson, a patient advocate.
The hearing also highlighted the value of U.S. biomedical research to national health and the economy. A large focus of the hearing was the funding uncertainties and layoffs that are taking place across health research agencies like the National Institutes of Health (NIH) and how that affects the future of biomedical innovation.
As Chairwoman Susan Collins (R-ME) stated: “Proposed funding cuts, the firing of essential federal scientists, and policy uncertainties threaten to undermine the foundation for our nation’s global leadership.”
Other topics included the proposed limit to the NIH’s indirect cost rate and concerns regarding the training of the next generation of biomedical researchers. The committee is planning to hold another similar meeting with witnesses from the Trump administration to discuss the federal government’s role in supporting biomedical innovation.
Patent legislation reintroduced
On Thursday, May 1, Senators Thom Tillis (R-NC) and Chris Coons (D-DE) along with Rep. Kevin Kiley (R-CA) and Scott Peters (D-CA) reintroduced bicameral and bipartisan legislation called the “Patent Eligibility Restoration Act.” The aim of this bill is to restore patent eligibility to important inventions across many fields. Additionally, it addresses concerns over the patenting of ideas, what already exists in nature, and social and cultural content.
As Senator Tills stated: “Clear, reliable, and predictable patent rights are imperative to enable investments in the broad array of innovative technologies that are critical to the economic and global competitiveness of the United States, and to ensuring the national security of our great country.”
The bill keeps the current categories of eligible subject matter for patents but eliminates the current judicial exceptions and replaces them with five specific, defined exclusions. After this reintroduction, the measure will move into committees in both the Senate and House. It is likely that discussion on the bill will begin in the Senate Judiciary Committee, where Senator Tillis is the chairman of the Subcommittee on Intellectual Property.
NSF announces implementation of standard indirect cost rate
On Friday, May 2, the National Science Foundation (NSF) released an update to its policy regarding the reimbursement of indirect costs in federal awards to institutions of higher education. The policy adopts a standard rate of 15% for indirect costs on grants and cooperative agreements. The 15% rate will only apply to new awards made on or after May 5, 2025, and it does not apply retroactively to existing awards.
A lawsuit was filed on May 5 by a coalition of universities and academic organizations to stop this action. UNC Federal Affairs will continue to track this policy and provide updates.
White House releases FY26 “skinny” budget
On the morning of May 2, the White House released its preliminary budget request for FY26. This budget outline will assist GOP appropriators in the FY26 appropriations process by providing clarity on the Trump administration’s budget priorities. The blueprint includes an increase of 13% for defense spending, a 65% increase in spending for the Department of Homeland Security, and a cut of $163 billion in non-defense spending.