This week’s Federal Update covers Congressional and Executive activities of interest in Washington, D.C.
Congressional Branch Activities of Interest
Floor Activity
The House is expected to consider the DHS Restrictions on Confucius Institutes and Chinese Entities of Concern Act (H.R. 881) today. H.R. 881 prohibits Department of Homeland Security funding from going to any institution that hosts a Confucius Institute or that has a relationship with a “Chinese entity of concern.”
FY 2026 Appropriations
Last Friday, the White House released a “skinny” version of the FY26 President’s Budget Request. Skinny budgets are not uncommon during the first year of a new President’s term and are limited in detail. A more detailed budget request is expected to be sent later this month.
The $1.691 trillion request includes $1.011 trillion in total discretionary defense spending and $601 billion in total non-defense discretionary spending. The budget decreases non-defense discretionary spending by $163 billion, or 23%, over FY25 levels. The request increases defense discretionary spending by 13%.
The proposed budget includes $27 billion for the National Institutes of Health, cutting $17.9 billion from FY25 levels, or 40%.
The administration provides $3.9 billion for the National Science Foundation (NSF), a $4.9 billion cut from FY25 levels, or 55%.
The proposal cuts the Department of Education’s discretionary budget 15% below FY25 levels and would cut Federal Work Study by $980 million and eliminate Supplemental Educational Opportunity Grants (SEOG). The summary budget does not specify requested funding levels for Pell Grants, Title VI International Education Programs, or the Institute for Education Sciences.
Hearings
The House Education and Workforce Committee held a hearing "Beyond the Ivy League: Stopping the Spread of Antisemitism on American Campuses." Witnesses at the hearing included the Presidents of Haverford University, DePaul University, and California Polytechnic State University, San Luis Obispo. Indiana Representative Mark Messmer (R), questioned Haverford’s President, asking about her plans to protect Jewish students on campus. Rep. Messmer’s remarks may be seen here.
The House Committee on Science, Space and Technology held a hearing titled, “From Policy to Progress: How the National Quantum Initiative Shapes U.S. Quantum Technology Leadership.”
Indiana Congressman Jim Baird participated in the hearing and touted northwest Indiana as part of the U.S. “Quantum Corridor.” Rep. Baird encouraged the continued growth of the quantum in the Midwest. See a recording of the hearing here.
The Senate Committee on Commerce, Science, and Transportation held a hearing to examine “Winning the AI Race, Focusing on Strengthening United States Capabilities in Computing and Innovation.” Indiana Senator Todd Young emphasized in his remarks that the growth and development of artificial intelligence is an issue of national and economic security. Senator Young shared the importance of embedding AI models with American values like privacy, property rights, transparency, and freedom of speech. Watch the hearing here.
Legislation
- Introduced by Indiana Senator Todd Young (R) and New Hampshire Senator Maggie Hassan (D), the “American Innovation and Jobs Act” would allow companies and startups investing in research and development (R&D) to either claim a tax credit or deduct their investments. The legislation seeks to incentivize job-creating R&D activity in the United States – particularly among start-up companies. Read Senator Young’s press release here.
- Introduced by Indiana Senator Jim Banks (R), the “Fairness in Higher Education Accreditation Act” would prohibit accreditors from requiring institutions to adopt racial or sex-based quotas as a condition of accreditation and requires accreditors to consider the school’s commitment to academic freedom. Read the press release here.
- Sens. Thom Tillis (R-NC) and Chris Coons (D-DE) and Reps. Kevin Kiley (R-CA) and Scott Peters (D-CA) reintroduced the Patent Eligibility Restoration Act (PERA), which broadens the categories of eligibility for patenting.
- Sens. Thom Tillis and Chris Coons joined Sens. Dick Durbin (D-IL) and Mazie Hirono (D-HI) to reintroduce the Promoting and Respecting Economically Vital American Innovation Leadership (PREVAIL) Act, which would make reforms to the rules and procedures at the Patent Trial and Appeal Board.
Executive Branch Activities of Interest
NSF Announces 15% F&A Cap; Associations Sue
The National Science Foundation (NSF) announced it would cut the reimbursement rate for Facilities and Administrative (F&A) reimbursements to a maximum rate of 15% on new grants to colleges and universities.
In response to this announcement, a group of institutions and higher education associations jointly filed a new lawsuit in the United States District Court for the District of Massachusetts seeking to halt the NSF’s new policy. A statement on the lawsuit may be found here.
NIH Announces Policy on Foreign Subawards
The National Institutes of Health announced an updated policy prohibiting foreign subawards from being nested under the parent grant, with the new policy being implemented no later than September 30, 2025. NIH notes the new policy “will include a prime with independent awards that are linked to the prime that will allow NIH to track the project’s funds individually, while scientific progress will be reported collectively by the primary institution.”
President Trump Signs Executive Order Pausing Gain-of-Function Research
President Trump has issued an executive order, “Improving the Safety and Security of Biological Research,” suspending domestic “dangerous gain-of-function research” for 120 days to allow for the White House Office of Science and Technology Policy (OSTP) and other agencies to revise or replace the 2024 “United States Government Policy for Oversight of Dual Use Research of Concern and Pathogens with Enhanced Pandemic Potential.”
The order instructs OSTP and other agencies, including the Department of Health and Human Services, to “strengthen top-down independent oversight; increase accountability through enforcement, audits, and improved public transparency; and clearly define the scope of covered research,” and to review and revise the policy every four years. An accompanying fact sheet about the order is available here.