Education and Labor

President-elect Trump has proposed to eliminate the Department of Education. While that is politically and procedurally difficult, he will work with a Republican-controlled Congress to pursue drastic funding cuts to education programs like Title I and postsecondary education. When the GOP-controlled House held a floor vote in 2023 on an amendment to scrap the agency, 60 Republicans joined all Democrats in voting against it.

Republicans will look for ways to reduce the federal role in education by cutting spending for key education programs at the federal level, such as funding for Title I K-12 schools and forcing civil servants out. House Speaker Mike Johnson has promised “a very aggressive first 100 days agenda for the Congress” and pointed to “maximizing school choice for parents and holding woke university administrators accountable.” The Trump administration will also eliminate or halt action on numerous Biden-era regulations, including Title IX and student loan debt relief, and will aggressively pursue the elimination of campus DEI programs and revamp the accreditation system.

President-Elect Trump has tapped Linda McMahon to serve as Education secretary.

McMahon served on the Connecticut Board of Education for a year starting in 2009. She also spent years on the board of trustees for Sacred Heart University in Connecticut. McMahon is considered a relative unknown in education circles, though she has expressed support for charter schools and school choice.

McMahon led the Small Business Administration during Trump’s first term, chaired America First Action, a super PAC that backed Trump’s reelection campaign in 2020, and helped start the America First Policy Institute to continue advocating for Trump’s agenda. McMahon co-chairs his transition team along with Howard Lutnick and has been helping to plan Trump’s new administration.

Overview 

Rep. Virginia Foxx’s (R-NC) last few months as chair of the House Education and the Workforce Committee may signify a few key developments. Some parting gifts for Chairwoman Foxx in a year-end package may include:

• An agreement on the bill to reauthorize the Workforce Innovation and Opportunity Act (WIOA), the Stronger Workforce for America Act (H.R. 6655 ), considered a Dr. Foxx legacy priority;
• An agreement to amend the Higher Education Act of 1965 to extend Federal Pell Grant eligibility to certain short-term workforce programs (H.R. 6585 /S. 161 );
• Other bipartisan provisions of her College Cost Reduction Act (H.R. 6951 reauthorization proposal; and
• The Stop Campus Hazing Act (H.R. 5646 signed into law before the end of the year) is the linchpin of her Higher Education Act (HEA) (S. 2901 ), which passed the House by voice vote in September.

Reps. Burgess Owens (R-UT) and Tim Walberg (R-MI) are expected to battle for the gavel in the next Congress. While Rep. Owens is a close ally of Chairwoman Foxx, Rep. Walberg is next in seniority to lead the committee for the Republicans.

Senate HELP Committee roles will flip with Sen. Cassidy becoming chairman and Sen. Bernie Sanders (I-VT) becoming ranking member. It remains to be seen how much Sen. Cassidy will prioritize education issues once he has the gavel. Sen. Cassidy has expressed interest in passing legislation related to literacy and learning disability issues, considering his personal experience with one of his children who has dyslexia. He also may look for ways to pass the College Transparency Act (H.R. 2957 /S. 1349 ) next Congress, given it has been one of his higher education priorities for several Congresses.

Low morale amongst the department’s career employees could lead to a mass exodus during the first few months of the new administration if not forced out as part of a broader effort to dismiss career Democrats within the federal government.

Other key goals of the Trump administration and Republican Congress in this space include:

• Overturning or significantly altering several Biden administration regulations, such as Title IX and student loan repayment programs.

President Biden could make one-time student loan account adjustments and address student loan debt in bankruptcy before leaving office in preparation.

Legislation advancing universal school choice, the expansion of 529 savings accounts, and the support of homeschooling families.

• Continued oversight of colleges and universities on First Amendment rights, antisemitism, Title IX, DEI programming, accreditation standards, and foreign influence issues.
• Potential HEA reauthorization, with the College Cost Reduction Act as the base bill.

Early Learning and Child Care Issues:

Child Care and Development Block Grant Program (CCDBG)

Increased investments in CCDBG have earned bipartisan support since the pandemic, and Rep. Owens has championed robust funding for the program in recent Congresses.

• Expect congressional Republicans to focus on updating CCDBG, which has not been reauthorized in 10 years, in addition to prioritizing relevant tax credits, incentivizing choice in providers, including home-based and onsite care, and expanding military care.‒ In lieu of agreement on a CCDBG reauthorization bill, the Trump administration could roll back or rewrite the Biden administration’s regulations governing CCDBG family copayments and Head Start wage requirements.
• Tax Credits
• Given the expected focus on tax reform in 2025, with the expiration of many tax provisions in the Tax Cuts and Jobs Act, many of the bipartisan policies in the childcare space are expected to be in play during this debate in addition to the Child Tax Credit, including the Child and Dependent Care Tax Credit, the Employer-Provided Child Care Tax Credit (or Section 45F), and the Dependent Care Assistance Program.

K-12

Curriculum Issues

Many Republicans focused on curriculum issues and countering “woke” policies in K-12 schools on the campaign trail. Republicans will continue to look for opportunities to conduct oversight and advance policies at the federal level that address their concerns, including reinstating the first Trump administration’s 1776 Commission that President Biden repealed when he entered office.

• Most of the action will remain with state and local officials who have jurisdiction over these topics in K-12 education. The Trump administration may utilize the grantmaking and contracting process to place restrictions on carrying out these policies.
• School Safety
• President-elect Trump supports stricter school discipline measures in classrooms, as well as school hardening measures and policies to train teachers to use concealed weapons as ways to combat school safety threats. 
• Despite bipartisan support for additional investments in the Bipartisan Safer Communities Act (BSCA, P.L. 117-159), it is unlikely the Trump administration would support increased funding for these programs.
• Vice President-elect Vance has been critical of BSCA for restricting schools from purchasing weapons for hunting, archery, and shooting programs.
• School Choice
• Similar to the first Trump administration, we expect a second administration to prioritize education freedom issues, including advancing policies related to school choice, vouchers, 529 savings accounts, and homeschooling families.

The administration does not have much leverage to advance school choice priorities other than broad support for programs like the Charter Schools Program.

Republican lawmakers may look for ways to implement expanded school choice policies, including through bills like the Educational Choice for Children Act (H.R. 531 /S. 120 ).

Budget reconciliation legislation, which only requires a simple majority vote in the Senate, could serve as a vehicle for an expansion of school choice through a tax credit program or an increase of the child tax credit.

Education Technology

Student Success and Academic Enrichment Grant (SSAEG): Schools can purchase education technology equipment through this block grant program, but President-elect Trump’s previous budget proposals zeroed it out.

Congress ignored his previous requests to eliminate the program; expect flat funding or slight reductions for SSAEG in the 119th Congress.

The administration and Congress may compromise on funding increases for rural areas, which could mean a boost for the Rural Education Achievement Program, with authorized uses matching those under SSAEG.

E-Rate: This program is funded through the Universal Service Fund and is used to purchase broadband and technology equipment for K-12 schools and libraries.

It is unclear whether the Trump administration would continue to fight for this program and its current funding structure, which is currently tied up in legal battles.

Children’s Data Privacy: Protecting children from technology companies and the collection of their data for non-education-related reasons is a bipartisan issue that will likely be addressed next Congress if policymakers do not find a way to pass legislation updating current laws to protect children’s data privacy in the lame-duck session.

Higher Education

Deregulation: If Congress is unable to repeal regulations through the Congressional Review Act, President-elect Trump’s Department of Education may spend much of its time pulling or redrafting regulations and guidance related to campus protests, student loan repayment and forgiveness, Title IX, distance education, TRIO eligibility for DREAMERs, and textbook affordability.

Higher Education Accountability: Reducing college costs would remain a priority for congressional Republicans, but expect it to come through market-driven solutions, such as performance-based funding incentives, institutional risk-sharing, and revoking tax-exempt statuses from nonprofit colleges and universities that come under congressional scrutiny.

• Given the work to advance House Education and the Workforce Committee Chairwoman Foxx’s College Cost Reduction Act (H.R. 6951 ) in the 118th Congress, expect it to serve as the base for any HEA reauthorization legislation that moves forward in the 119th Congress.

Career Pathways: An increased focus on workforce-oriented education, such as certification programs and non-traditional degree opportunities, will likely be a priority for congressional Republicans and the administration. GOP lawmakers want to promote apprenticeships and pass legislation that would allow Pell Grants for short-term programs.

Campus Climate: Congress and the Trump administration will focus on a variety of higher education issues, including First Amendment rights, antisemitism, foreign influence, DEI, and college athletics.

Title IX: President-elect Trump is expected to withdraw the Biden administration’s Title IX final rule, eliminating protections for LGBTQ+ students and DEI programs.

• Civil Rights and Antisemitism. Combatting antisemitism remains a top priority for Republicans.
• Members in both chambers will push for more hearings, legislation, and regulations to address this issue on and off college campuses. Congressional Republicans will work to ensure students’ First Amendment rights, such as freedom of speech and association, remain intact and will reintroduce the Respecting the First Amendment on Campus Act (H.R. 7683 ), which aims to address institutional overreach on students’ free speech.
• The department is also likely to issue new guidance threatening DEI initiatives on college campuses.

Foreign Influence: Foreign influence in higher education remains a concern for Republicans, who will continue to investigate and call for limiting funds to institutions that take donations from foreign adversaries. Lawmakers will continue to push for reforms to Section 117 of the HEA, which addresses foreign gift and contracting reporting requirements for institutions.

College sports: It is unclear how Congress will look to address college athletics issues, such as name, image, and likeness or employment of college athletes, given the recent proposed settlement in several cases related to these issues, though Republican control of both chambers may help these efforts progress next Congress. Republicans could side with the NCAA and colleges, which have urged Congress to bar athletes from becoming employees and have asked for bolstered antitrust protections.

Endowments: Colleges are also bracing for conversations over taxing their endowments. During his first term, he signed a modest endowment tax into law. Expanding that tax is a logical priority for his second term. Vice President-elect J. D. Vance introduced legislation in the Senate to raise the tax on wealthy universities’ endowment income from 1.4 percent to 35 percent

Workforce Legislation, Issues

Workforce Innovation and Opportunity Act Reauthorization: Despite the bipartisanship that often accompanies a workforce reauthorization bill, the 118th Congress has yet to pass WIOA reauthorization legislation, making it likely this work will continue in the 119th Congress if not accomplished in the lame-duck session.

• The House passed its bill – the Stronger Workforce for America Act (H.R. 6655 ) – earlier this year. The bill is seen as a top legacy issue for Chairwoman Foxx.‒ The Senate HELP Committee released a discussion draft but has not considered a bill formally.

Pell Grants for Short-Term Programs: Congress may attach a proposal to expand Pell Grant eligibility to short-term programs, such as the House’s Bipartisan Workforce Pell Act (H.R. 6585 ) or the bipartisan, bicameral JOBS Act (H.R. 793 /S. 161 ), as part of a year-end package.

• Sticking points remain over a pay-for mechanism and whether for-profit entities should be eligible to participate.
• Given the bipartisan nature of these proposals, Congress will continue its efforts to pass legislation next year if it does not act in the lame-duck session.

Workforce Regulatory

Overtime Rule: The Biden administration’s overtime rule faces several legal challenges, and President-elect Trump has not indicated how he would address the rule and if he would seek to repeal and replace it.  He will push for legislation to end taxes on overtime pay as part of the tax package discussions likely to take place next year.

Worker Classification: The Biden administration repealed the Trump-era worker classification rule and instituted a stricter standard for companies utilizing independent contractors, which went into effect in March 2024.

While Republican Senators have introduced legislation since the campaign announced the plan, it is unclear whether there is sufficient support in Congress to make the change.

Business groups filed lawsuits challenging the rule, meaning it is unlikely President-elect Trump will defend the rule in court.

Instead, he may repeal the rule and reinstate a version similar to his previous administration’s proposal. 

No Tax on Tips: President-elect Trump has proposed eliminating tax on tips for certain workers.