For the past week or so, lawmakers have been primarily focused on tackling health care subsidies under the Affordable Care Act, and work has stalled on the remaining FY 26 appropriations bills that have to yet pass. The continuing resolution (CR) currently funding the government expires on January 30, 2026, giving Congress limited time to address federal funding for programs before adjourning for the holidays. In other news, the AHEAD Committee at the Department of Education (ED) wrapped up its first week of negotiated rulemaking, focusing on implementation of Workforce Pell next year. Read more updates below. 

• First Week of Workforce Pell Rulemaking Concludes: On Dec. 12, the Accountability in Higher Education and Access Through Demand-driven Workforce Pell (AHEAD) Committee concluded its first week of negotiated rulemaking. The committee came to a consensus for implementing Workforce Pell next year, adopting a series of changes aimed at better aligning Workforce Pell with WIOA and other education and workforce programs. A detailed recap of the committee’s activities can be found on Workforce Pell Watch. 

• Senate HELP Committee Holds Hearing on Workforce Development: On Dec. 9, the Senate Health, Education, Labor and Pensions (HELP) Committee held a hearing that discussed CTE programs and examined their role in equipping workers with the skills needed to enter high-wage careers. During the hearing, several senators expressed concerns regarding the shift of Perkins funds to the Department of Labor (DOL). You can watch the hearing here. 

• ED Launches Talent Marketplace Challenge: On Dec. 15, ED launched the Connecting Talent to Opportunity Challenge. Beginning in January of next year, the Department will call on Governors to work alongside education and workforce leaders to develop and scale talent marketplaces that include a credential registry, learning and employment records and skills-based job description generators. Up to 10 semi-finalists and finalists will receive tailored technical assistance and earn a portion of the $15M prize pool. In addition, the House Education and Workforce Committee held a hearing on these topics on Dec. 10. You can watch the hearing, titled, “Building a Talent Marketplace: How LERS Empower Workers and Expand Opportunity,” here.    

• ED Awards $256M in Education Innovation and Research Grants: On Dec. 15, ED awarded $256M in Education Innovation and Research (EIR) grants to improve literacy across the nation. Aligning with Secretary McMahon’s initial supplemental grant priorities, the majority of grants were awarded to support projects in rural communities. 

• ED Announces Crackdown on Student Aid Fraud: On Dec. 11, ED announced that it has prevented over $1B in student aid fraud through the use of new validity processes that were implemented earlier this year.  

• ED Awards Over $208M in Mental Health Grants: On Dec. 11, ED awarded over $208M in grants to expand mental health professional recruitment and retention and strengthen the mental health workforce in schools. These grants were awarded after the Department identified new grant priorities earlier this year, discontinuing mental health grants that focused on DEI and diversity-related initiatives. 

• Credential Engine Releases Report on 2025 Credentials: A recent report from Credential Engine provides data on total credential counts for 2025. In total, students and workers earned over 1.85M unique credentials. This includes over 264K degrees, 14K occupational licenses and 486K certificates (such as academic and apprenticeship certificates).  

• ED Updates Accreditation Handbook: On Dec. 10, ED announced that it was seeking comments regarding updates to the Department’s Accreditation Handbook. The Department is specifically requesting comments on how the handbook can reduce postsecondary costs, drive intellectual diversity and better assist accreditation agencies in evaluating postsecondary education programs.   

• ED Officially Ends the SAVE Plan: On Dec. 9, ED announced that it was officially ending the Saving on a Valuable Education (SAVE) Plan for student loan repayment after reaching a settlement with the state of Missouri. Initiated during the Biden Administration, the SAVE Plan aimed at helping low-income student loan borrowers with lower monthly payments and an accelerated timeline to finish payments. Over seven million borrowers are currently enrolled in the SAVE Plan and will be required to enroll in new payment plans. 

• ED Launches New FAFSA Earnings Indicator: On Dec. 8, ED launched a new earnings indicator embedded in the FAFSA application process. Once prospective students submit information on institutions they are interested in attending, FAFSA will present data on whether graduates of the institution make more than high school graduates. Secretary McMahon highlights the tool as a way for students and families to make more financially transparent decisions when considering taking on loans and student debt. 

• ED Brings Civil Rights Staffers Back to Work: On Dec. 5, ED recalled dozens of staffers on administrative leave to return to work at the Office for Civil Rights, aiming to reduce the office’s backlog of discrimination complaints. This action follows the Department’s layoffs throughout the year and the numerous lawsuits that followed.