Federal and Legislative Updates

September 2025 Federal and Legislative Updates

by Carleigh Gabryel

Subscribe to the Office of Public Affairs’ Legislative Lowdown newsletter for weekly federal and state policy updates of interest to the UNC-Chapel Hill community.

Congress continues work on FY26 appropriations

As the end of the fiscal year approaches on September 30, lawmakers are working to advance FY26 appropriations bills while preparing contingency plans to avoid a government shutdown. Congress left for August recess without finalizing a single FY26 appropriations bill. On September 9, the House Appropriations Committee advanced the Labor-Health and Human Services (HHS)-Education measure.

The bill provides:

  • $184.5 billion in total discretionary funding, including $66.7 billion for the Department of Education
  • $108 billion for HHS
  • $9.6 billion for the Department of Labor

It also proposes funding for several UNC-Chapel Hill priorities and rejects the administration’s proposed cuts and reorganization of the National Institutes of Health (NIH). Instead, the bill provides $46.9 billion for NIH’s base budget — an increase of approximately $99 million over FY25 when combined with mandatory 21st Century Cures Act funding — and funds all 27 NIH Institutes and Centers. While the Committee emphasized that any major restructuring of NIH falls under the jurisdiction of the House Energy and Commerce Committee, it signaled openness to continued dialogue with the administration on future reforms.

The L-HHS-ED bill again includes language from the FY25 draft that would cap facilities and administrative (F&A) costs at 30% for institutions subject to the endowment tax. The Senate bill, advanced in committee in July, contained language to block this cap.

The Committee approved the Commerce-Justice-Science appropriations bill, which allocates $76.8 billion in discretionary spending — $6.2 billion below FY25 — including $7 billion for the National Science Foundation (a decrease of $2.06 billion). Overall, House funding levels fall below those approved by the Senate Appropriations Committee earlier this summer.

For the most up-to-date information regarding FY26 appropriations bills, please refer to this status chart.

Senate Finance Committee holds hearing on Trump administration’s health care agenda

On September 4, the Senate Finance Committee convened for a hearing: The President’s 2026 Health Care Agenda. Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. was the sole witness at the meeting, providing testimony on the administration’s health care plans and initiatives.

Throughout the three-hour hearing, senators pressed Secretary Kennedy on a wide range of issues. A central focus was the evolving vaccine guidance from the CDC and Food and Drug Administration (FDA), particularly surrounding access to and research on COVID-19 vaccines. Members on both sides of the aisle voiced frustration.

Senator John Barrasso (R-WY), a physician, reminded Kennedy of his confirmation pledge to “uphold the highest standards for vaccines,” saying he has since grown “deeply concerned.” Senator Bill Cassidy (R-LA), a physician and chair of the Senate Health, Education, Labor and Pensions Committee, echoed those concerns, questioning whether the administration’s shifting vaccine policies were eroding public trust and clarity for providers. He pressed Kennedy on the lack of consistent communication with state health systems and asked whether the administration had adequately addressed safety monitoring and data transparency. Senator Elizabeth Warren (D-MA) likewise criticized what she described as uneven follow-through on commitments to strengthen vaccine research and access. Kennedy countered that “anybody” who wants a COVID vaccine can receive one, emphasizing the administration’s efforts to expand availability. Beyond vaccines, Senators also raised issues such as Medicaid funding, the “Make America Health Again” agenda, and other priorities. Watch the full hearing here.

Congressional report flags risky U.S.–China university partnerships

On September 12, the House Education and Workforce Chair Tim Walberg (R-MI) and Select Committee on China Chair John Moolenaar (R-MI) released a new report warning that U.S. universities continue to aid China’s military ambitions through joint institutes and academic partnerships.

The report, “Joint Institutes, Divided Loyalties,”  identifies more than 100 additional partnerships with Chinese entities, including programs in submarine engineering, aircraft power systems, and aerospace design. Many of these collaborations involve China’s “Seven Sons of National Defense” universities and other institutions tied to Chinese military contractors.

Lawmakers argue these partnerships enable the Chinese Communist Party (CCP) to exploit U.S. taxpayer-funded research. They are advancing legislation, including the SAFE Research Act, which would bar federal STEM funding to universities collaborating with China’s military or intelligence services, and the DETERRENT Act, which lowers the foreign gift reporting threshold for U.S. colleges and universities from $250,000 to $50,000 — and to $0 for “countries of concern” (China, Iran, North Korea, and Russia). The DETERRENT Act also creates a new investment disclosure report requiring private institutions with large endowments or significant investments in these countries to disclose them annually to the Department of Education.

This follows a September 2024 investigation documenting how U.S. research dollars advanced Chinese capabilities in nuclear technology, AI, robotics, and quantum computing.

HHS releases national childhood disease strategy

On September 9, HHS Secretary Robert F. Kennedy Jr. and the Make America Healthy Again (MAHA) Commission released a national strategy with more than 120 initiatives to combat the rise of childhood chronic diseases.

The plan, Make Our Children Healthy Again, emphasizes prevention and root-cause solutions, including stronger nutrition standards, new food labeling rules, enhanced school meal programs, expanded research on conditions like autism and metabolic health, updated Medicaid quality metrics, and greater focus on pediatric mental health. The strategy also includes regulatory reforms, community-based initiatives, and industry partnerships to improve children’s health outcomes nationwide.

For more information, including the full press release and report, click here.