February 28, 2025

This week’s Federal Update covers Congressional, Executive Branch and Judicial Branch activities of interest in Washington, D.C.

Congressional Activities of Interest

Floor Activity

The House and Senate were both in session this week. The House considered and ultimately passed the FY25 budget resolution (discussed below).   

The Senate is scheduled to be in session through Friday, February 28. The Senate confirmed Daniel Driscoll to be Secretary of the Army and confirmed Jamieson Greer to be U.S. Trade Representative.  

Budget Reconciliation & FY25 Appropriations 

House Republicans narrowly passed the chamber’s FY 2025 budget resolution on Tuesday February 25 by a 217 – 215 vote. The measure includes $4.5 trillion in tax cuts contingent on $1.5 trillion in spending reductions over a decade. The plan also raises the borrowing limit by $4 trillion and allocates funding for border security and defense. 

The House resolution is substantially different from the resolution passed in the Senate last week. The Senate’s resolution provides $342 billion over four years for border security, the Department of Defense, and domestic energy production but does not include tax provisions. The House and the Senate must now work together to create a compromise budget resolution that can pass both chambers.  

As for FY25 appropriations, news outlets report that House and Senate Republicans are meeting this week to hash out plans to avoid a government shutdown on Friday, March 14. Leadership has not yet settled on a path forward – whether that be a yearlong continuing resolution (CR), a stop-gap CR, or the passage of an FY25 omnibus bill, which is less likely.

Bills Introduced 

American Dream and Promise Act (bill number not yet assigned) – a bipartisan group of lawmakers led by Reps. Sylvia Garcia (D-TX) and Maria Elvira Salazar (R-FL) reintroduced the American Dream and Promise Act of 2025.  The bill would create a pathway to citizenship for certain recipients of the Deferred Action for Childhood Arrivals (DACA) program, children of certain nonimmigrant visa holders, and individuals with Temporary Protected Status (TPS) or Deferred Enforced Departure (DED). The bill is identical to the American Dream and Promise Act of 2023 introduced in the 118^th Congress.   

H.R.1490 – Simplifying Financial Aid Information for TRIO Programs. Introduced by Rep. Gwen Moore (D-WI) on February 21, this bill would allow institutions of higher education to use certain federal tax information—originally provided for financial aid purposes—to also support Federal TRIO programs. The bill seeks to simplify administrative processes and improve targeted outreach to students who benefit from TRIO’s educational services.  

H.R.1527 – Veterans’ Educational Assistance Improvement Act. This bill aims to enhance the educational benefits provided to veterans under the U.S. Department of Veterans Affairs. If passed, it seeks to improve laws governing veterans’ access to financial aid for higher education, streamline the application process, and expand eligibility for certain programs. Sponsored by Rep. John James (R-MI).

Hearings This Week 

• The Senate Committee on Banking, Housing, and Urban Affairs held a hearing on Thursday, February 27 to consider several nominations. The committee reviewed the nominations of Dr. Stephen Miran to serve as Chairman of the Council of Economic Advisors, The Honorable Jeffrey Kessler for Under Secretary of Commerce for Industry and Security, Mr. William Pulte for Director of the Federal Housing Finance Agency, and The Honorable Jonathan McKernan for Director of the Bureau of Consumer Financial Protection. Indiana Senator Jim Banks spoke at the hearing and criticized the Biden administration’s loan level price adjustment policy, arguing it unfairly penalized families with good credit to subsidize riskier borrowers. He praised Trump administration’s tariff policies, linking them to Apple's recent $500 billion U.S. investment and job creation, while challenging economists who argue tariffs hurt American jobs. Sen. Banks also raised concerns over U.S. export controls, accusing career bureaucrats of allowing sensitive technology to fall into Chinese hands, and secured a commitment from a nominee to take a stricter approach to national security in technology exports. Watch a recording of the hearing here.  

• On February 26 the House Committee on Science, Space, and Technology’s subcommittee on Space and Aeronautics held a hearing titled, “Step by Step: The Artemis Program and NASA's Path to Human Exploration of the Moon, Mars, and Beyond.”  

The hearing emphasized the Artemis Program’s role in maintaining U.S. leadership in space exploration amid growing competition from China. Lawmakers and experts including Purdue University professor Dr. Daniel Dumbacher, discussed the program’s progress, including the upcoming Artemis II and III missions, but raised concerns over cost overruns, technical challenges, and workforce instability. Witnesses highlighted the need for sustainable mission planning, regulatory reform to enhance private-sector collaboration, and stronger congressional oversight to ensure Artemis remains on track.  Indiana Representative Jim Baird attended the hearing but did not make comments.

• The House Education and Workforce Committee held a hearing on Wednesday, February 26 titled, “Unleashing America’s Workforce and Strengthening Our Economy.” Watch the hearing here.  

The hearing focused on the challenges facing American workers and small businesses, with Republicans criticizing Biden-era regulations and inflation while expressing optimism about Trump's return to office, and Democrats highlighting job growth and wage increases under the previous administration. Indiana Representative Mark Messmer specifically opposed the Biden administration’s heat injury prevention rule, arguing it exceeds OSHA’s authority and burdens small businesses. He supported blocking the rule and emphasized the need to extend the 2017 small business tax deduction to prevent tax hikes on small business owners. 

• The Senate Commerce Committee met on Tuesday, February 25 to hold a nomination hearing for Michael Kratsios to lead the White House Office of Science and Technology Policy. Indiana Senator Todd Young emphasized the importance of emerging technologies for national security and economic competitiveness. He sought commitments from the nominee on maintaining CHIPS Act agreements to strengthen domestic semiconductor manufacturing and R&D. Young also discussed AI policy, stressing the need for a regulatory environment that fosters innovation and collaboration between government, academia, and the private sector. He highlighted the role of biotechnology in national security and advocated for a coordinated, whole-of-government approach to leadership in this field. Lastly, he reiterated his commitment to noncompete reform, arguing that such agreements limit worker mobility and innovation, and secured a pledge to collaborate on future policy efforts.  

Executive Branch Activities of Interest

Executive Order: Implementing the President’s “Department of Government Efficiency” Cost Efficiency Initiative

On Wednesday, February 26, President Trump signed an executive order (EO) implementing the Department of Government Efficiency’s (DOGE) cost efficiency initiative. The EO requires each agency head, in consultation with DOGE, to review all existing contracts and grants and, where appropriate and consistent with law, terminate or modify contracts and grants to reduce overall Federal spending or reallocate spending to “promote efficiency and advance the policies of the Trump Administration.”  

According to the EO, review is to begin immediately and is to prioritize funds disbursed “to educational institutions and foreign entities for waste, fraud, and abuse.” Agencies have 30 days to complete this review.

Federal Student Aid Income-Driven Repayment Plans Paused  

The U.S. Department of Education has paused applications for income-driven repayment (IDR) plans following a court order that blocked the Biden administration’s Saving on a Valuable Education (SAVE) plan. The Eighth Circuit Court of Appeals ruled that the Education Department lacks explicit congressional authorization to forgive loans through IDR, leading to concerns about higher monthly payments and financial uncertainty for those enrolled. While some experts believe the freeze is a temporary response to legal challenges, others argue it unnecessarily restricts access to repayment options beyond SAVE.

U.S. Citizenship and Immigration Services (USCIS) Creates Registry for Undocumented Immigrants   

On February 25, USCIS announced that the Department of Homeland Security will soon create a “form and process” for “all undocumented immigrants 14 years of age or older who were not fingerprinted or registered when applying for a U.S. visa and who remain in the United States for 30 days or longer” to register with the federal government. The announcement indicates that individuals issued specific designation documents are already considered registered.  

Judicial Branch Activities of Interest

Judge Extends Restraining Order in Lawsuit Challenging F&A Cut  

On February 21, the U.S. District Court for the District of Massachusetts held a hearing in all three lawsuits challenging the National Institutes of Health’s imposition of a 15% cap on facilities and administrative (F&A) cost reimbursements for universities that conduct NIH-supported research. At the end of the hearing, U.S. District Judge Angel Kelley extended the existing temporary restraining order until she decides whether to impose a preliminary injunction. Judge Kelley could issue a ruling on an injunction at any time.  

Federal Judge Blocks DOGE Access to Student Information  

A federal judge temporarily blocked the Department of Government Efficiency (DOGE), from accessing sensitive personal data from the Education Department and the Office of Personnel Management (OPM) without consent. A district court judge issued a 14-day restraining order in response to a lawsuit filed by the American Federation of Teachers and other labor unions, arguing that DOGE’s access to Social Security numbers, home addresses, and financial records of students violated privacy laws. The lawsuit alleges that the Trump administration improperly allowed DOGE to collect and use this data beyond its intended purpose, raising security concerns. The order prevents these agencies from sharing personally identifiable information with DOGE until at least March 10, while a separate case had already blocked access to Treasury Department data.