Monday, June 30 Update: Over the weekend, changes were constantly being made to the reconciliation bill, and versions of short-term Pell and school voucher tax credits were reinserted. The situation is still very fluid, so we'll have more updates as the text of the bill is finalized in the Senate. 

This week, the Senate Parliamentarian made a number of rulings on education provisions lawmakers are hoping to include in the final reconciliation package.

When the Senate takes up a budget reconciliation bill, the Senate Parliamentarian, Elizabeth MacDonough, reviews all provisions to ensure that it complies with the Byrd Rule, a process commonly known as the “Byrd Bath.” The Byrd Rule, named after former Sen. Robert Byrd (D-WV), aims to prevent extraneous measures from being included in reconciliation bills. Under the Byrd Rule, provisions can be struck if they do not affect federal spending or revenue, if their impact is "merely incidental" budgetary goals, or if they increase the deficit outside the time period covered by the budget resolution. A senator can raise a point of order to challenge such provisions, but it takes 60 votes to override it.

During this Byrd Bath, the parliamentarian made several rulings on the various education provisions included in the text the Senate Committee on Health, Education, Labor and Pensions (HELP) submitted for consideration.

Most notably, she ruled that the expansion of Pell Grant access for short-term training programs be subject to the 60-vote threshold because of the provision that gave access to unaccredited programs and for-profit institutions. As of now, it is not known if lawmakers will reinsert a slimmed down provision that does not include unaccredited programs and for-profit institutions.

The parliamentarian also ruled that the changes to student loan repayments are in violation of the Byrd Rule. This provision would limit repayment options to the standard plan with fixed payments (over 10-25 years) or a new income-based repayment plan.

In addition to the HELP rulings, the parliamentarian also ruled on a key provision in the Senate Finance Committee bill. She ruled that the creation of $5,000 tax credit for K-12 private school vouchers violates the Byrd Rule.

The parliamentarian is still set to rule on many other provisions, including provisions that would permanently restrict the Secretary of Education from issuing regulations that are “economically significant,” meaning their annual effect on the economy is at least $100 million or they “adversely” affect the economy. The Byrd Bath process must be completed before the Senate can begin consideration of the legislation.

ACTE will continue to monitor the progress of the budget reconciliation process and provide regular updates to our membership. If you have any questions, please contact ACTE’s Government Relations Manager, Jimmy Koch (jkoch@acteonline.org).

Who takes High-earning CTE Pathways?: A report from the Career and Technical Education Policy Exchange examines which students enroll in high-earning CTE pathways.

The researchers analyzed data on CTE concentrators from five school districts across the country to find that gender is the strongest predictor of earnings potential. Across all five school districts, female CTE students were more likely to enroll in Career Clusters associated with lower earnings such as Education & Training and Human Services as well as the higher earning Health Science Cluster. Meanwhile, male students were more represented in high-paying Clusters such as IT, STEM and Finance. 

Smaller but noteworthy differences were also found between racial/ethnic groups. Black and Hispanic CTE students tend to enroll in Clusters that are associated with slightly lower earnings than white students, but the researchers noted that these gaps are much smaller than the national pay gaps between Black, Hispanic and white workers. CTE students from low-income households enroll in Clusters with similar wages compared to high-income students, and differences by disability status were mixed. 

Some College, No Credential Outcomes: A report and data dashboard from the National Student Clearinghouse Research Center examines the current population of some college, no credential (SCNC) individuals. Major takeaways from the report include: 

• At the start of the 2023-24 academic year, the total SCNC population under 65 years of age was 37.5 million, a 2.2% increase from the previous year. 
• Most institutions saw reductions in the number of students leaving postsecondary education; notably, community colleges saw a 10.7% reduction in the number of stopouts compared to the previous year. 
• More than one million SCNC students re-enrolled in postsecondary education in 2023-24, and the share of re-enrollees who earned a credential in their first year of re-enrollment increased by 4.7%.  
• Community colleges are the primary destination for returning SCNC students, with nearly three in five re-enrolling in a community college. 
• Approximately one-quarter of SCNC credential earners attained a credential without re-enrolling, possibly owing to state/institutional policies aimed at awarding credentials to learners who had previously stopped out. 
• Although white and Asian students earned credentials at higher rates compared to other SCNC re-enrollees, all racial/ethnic groups saw gains in re-enrollment and credential attainment. 

Gen Z's Limited Awareness of Non-college Pathways: A report from Gallup, the Walton Family Foundation and Jobs for the Future surveyed over 1,900 Gen Z high school students and their parents/guardians as well as adults nationwide to better understand Gen Z’s experiences and awareness of non-college pathways. 

The researchers found that: 

• Fewer than three in 10 students feel very prepared to pursue any pathway after high school. Apprenticeship programs rank the lowest, with only 8% of students feeling very prepared to pursue them. 
• Only 15% of Gen Z students received information from their schools on career pathways that do not require a college degree, only 24% reported being prepared for an apprenticeship program, and only 39% reported that their schools prepared them to pursue an internship.  
• Gen Z students and their parents know very little about pathways other than college. Despite this, nearly half of all high school students reported interest in pursuing a pathway other than a job or a bachelor’s degree. 
• Students are much more likely to express interest in a pathway if their parents have talked with them about that pathway. For instance, students are 37 percentage points more likely to express interest in pursuing an apprenticeship if their parents have talked to them about apprenticeship. 

2025 Post-graduation Readiness Report: A report from YouScience examines the pathways high school graduates from the class of 2024 pursued and the career guidance that they received. 

The report finds that graduates are increasingly pursuing non-baccalaureate pathways – from 2019 to 2024, the percentage of graduates who pursued a bachelor’s degree dropped by 20 percentage points. Over the same period, graduates were 15 percentage points more likely to be working toward a specific career goal, reflecting a shift toward more skills-based pathways. 

Despite this, 70% of graduates reported lacking confidence in their post-graduation career plans. In addition, students reported the following:  

• 50% said that their schools could have offered more work-based learning opportunities. 
• 39% wished that they had participated in more CTE courses. 
• 38% wished that they had participated in an internship, job shadow or part-time work.  
• 27% wished they had done more research on other postsecondary options. 

This week, Democratic Members of Congress addressed the interagency agreement (IAA) to transfer administration of CTE funding from the Department of Education (ED) to the Department of Labor (DOL). In other Capitol Hill news, the Senate continued to work on the confirmation process for Trump Administration appointees while the House took recess. Keep reading for more details! 

• Democratic Leadership Calls on ED to Cease IAA with DOL: Sens. Patty Murray (D-WA) and Tammy Baldwin (D-WI), and  Reps. Rosa DeLauro (D-CT) and Robert C. “Bobby” Scott (D-VA) sent a letter to ED Secretary Linda McMahon opposing the efforts to transfer responsibility over CTE programs to DOL.  

• Senate Health, Education, Labor and Pensions Committee Held Hearing on DOL Nominees: The Senate HELP Committee held a hearing on several Trump Administration nominations for DOL and the Equal Employment Opportunity Commission.  

• Senate HELP Committee to Consider Trump Administration Nominees: Next week, the Senate HELP Committee is voting on several nominations at ED, DOL and the EEOC. This includes the Nomination of Penny Schwinn to serve as Deputy Secretary of Education at ED. ACTE will share any relevant updates! 

• Appropriations Process Slows: This week, House Appropriations Committee leaders announced the postponement of several appropriations bills originally scheduled for next week. While the Labor, Health and Human Services, and Education Appropriations bill is still on the schedule for July 21, but could be pushed back as well. The Senate process has also been delayed, and markups of their bills will not start before the week of July 7.   

Following the House passage of their budget reconciliation bill (H.R. 1, the One Big Beautiful Bill Act) in May, work has now shifted to the Senate, where each relevant committee is preparing legislative text to be combined into a comprehensive bill

Last week, the Senate Committee on Health, Education, Labor and Pensions (HELP) released it portion of the budget reconciliation package. While the Senate bill builds on many of the provisions included in the House-passed bill, including significant changes to student loans, it removes the provision that would eliminate Pell Grant eligibility for students enrolled less than half time. It also maintains the current definition of full-time status for the purpose of Pell grants at 12 credit hours per semester, rather than shifting it to 15 credit hours as in the House bill. The Senate bill would provide $10.5 billion in funding to the Pell Grant program, in light of a predicted shortfall.

Like in the House bill, the Senate bill also includes language that would expand Pell Grant access for short-term training programs. Programs between 150 and 599 clock hours in length that are at least eight weeks would be eligible for Pell Grants. Senators included some additional guardrails to ensure program quality. Programs must meet key completion, job placement and earning metrics to maintain eligibility, including verifying that program completion leads to “value added earnings,” meaning that the amount that earnings exceed 150% of the poverty standard, with regional adjustments.

In addition to the HELP Committee bill, the Senate Committee on Finance released its text last night. The Finance Committee is the final Senate committee to release its legislative text.

Similar to the House bill, included in the text is the creation of $5,000 tax credit for K-12 private school vouchers. Students who benefit from the vouchers must be members of a household with an income not greater than 300% of the area median gross income and be eligible to enroll in a public elementary or secondary school. ACTE opposes any proposal that would take resources away from public education.

The Senate reconciliation package will now go directly to the floor to be considered by the full Senate. If the bill passes, it will be sent back to the House for its approval or the creation of a Conference Committee to reconcile the differences between the two bills.

ACTE will continue to monitor the bill and communicate the latest developments as they occur. If you have any questions, please don’t hesitate to reach out to ACTE’s Government Relations Manager, Jimmy Koch (jkoch@acteonline.org). 

Last week, Congress worked on appropriations and the budget reconciliation process, hallmarked by the Senate Health, Education, Labor and Pensions (HELP) Committee releasing text for its reconciliation bill. Meanwhile, court injunctions stopped an Interagency Agreement (IAA) between the Department of Education (ED) and the Department of Labor (DOL), which would have transferred administration of CTE funding from ED to DOL. Keep reading for more details. 

• ACTE and Advance CTE’s Statement in Response to ED and DOL’s IAA: ACTE and Advance CTE strongly oppose any efforts to move CTE administration away from ED given the disruption this would cause to Perkins legislation’s implementation and services to students in schools across the country. Urge your Members of Congress to oppose the agreement and protect Perkins funding!  

• Senate HELP Committee Releases Reconciliation Bill Text: The Senate HELP Committee released its higher education budget proposal earlier this week. Similar to the House version, which passed late last month, the bill would expand Pell grant availability to short-term job training programs. There are several differences in the Senate’s bill though. Notably, it does not include a limit on Pell grant eligibility that would have excluded part-time students.  

• Senate HELP Committee to Hold Hearing on Labor Nominees: Next Wednesday, the Senate HELP Committee will hold a hearing to review several Trump administration nominees for DOL and one for the Equal Employment Opportunity Commission.  

• Senate Democrats Send Letter to Labor Secretary Lori Chavez-DeRemer on Job Corps Program: 39 senators joined Senator Bernie Sanders (I-VT) to urge Secretary Chavez-DeRemer to reverse cuts made to the Job Corps program, which offers free career training, support and education assistance for younger Americans. The program was indefinitely paused last month by the Administration, although temporary court order has been issued limiting the pause.  

• Trump Administration Terminates Higher Ed Data System Training: The Administration eliminated a contract to train college officials on how to report data to the Integrated Postsecondary Education Data System (IPEDS) that is used to track trends in higher ed enrollment, completion, financial aid usage and other characteristics.  

The Departments of Education (ED) and Labor (DOL) recently signed an Interagency Agreement (IAA) to transfer administration of career and technical education (CTE) funding through the Carl D. Perkins Career and Technical Education Act from ED to DOL. While the IAA is paused temporarily due to court injunctions related to operations of ED, if enacted, this agreement would have far-reaching negative impacts on CTE programs and learners across the country.  

ACTE is strongly opposed to any efforts to move CTE administration away from ED and is concerned about the disruption this would cause to Perkins implementation and services provided to students nationwide.  

CLICK HERE to contact your Members of Congress and urge them to oppose any transfer of Perkins funding to the Department of Labor! 

Transferring Perkins funding from ED to Labor as outlined in the IAA would create significant administrative confusion and unnecessary layers of bureaucracy, increasing the risk of funding delays or disruptions in program delivery. Several states have already reported significant challenges in receiving timely funding allocations in recent weeks likely due to the IAA.  

This effort would also shift the focus of Perkins and disrupt the critical connection between CTE and the broader education system, posing a threat to the development of programs of study, integration of rigorous academic standards, alignment with graduation requirements that are critical to CTE student success, and potentially disrupt connections between high school and postsecondary CTE—as called for in the President’s FY 2026 budget request. Protect your Perkins funding and the integrity of CTE by telling your Members of Congress to oppose this transfer! 

Congress returned to DC this week, with work primarily focusing on appropriations for Fiscal Year (FY) 2026 and the budget reconciliation process. Both chambers heard testimony from Education Secretary Linda McMahon, and Labor Secretary Lori Chavez-DeRemer testified in the House. Keep reading for more details and stay tuned for updates! 

• More on the Trump Administration’s FY 2026 Budget Request: As reported last week, the Trump Administration released its full Fiscal Year (FY) 2026 budget request on May 30. The full budget reinforces the President’s request to make significant cuts to the Departments of Education (ED) and Labor. While Perkins would be level funded in the proposal, there are concerning policy changes included. Read more on the blog. 

• Secretary Chavez-DeRemer Highlights Skilled Workforce on America at Work Tour: Secretary Chavez-DeRemer visited with apprentices in New York and New Jersey, alongside Reps. Andrew Garbarino (R-NY), Nick LaLota (R-NY) and Thomas Kean Jr. (R-NJ). She also delivered remarks and released statements on the importance of having a skilled workforce.  

• House Passes Connecting Small Businesses with Career and Technical Education Graduates Act of 2025: This week, the House passed bipartisan legislation endorsed by ACTE to ensure small businesses have access to information about CTE programs and can hire CTE graduates. The bill would also provide CTE graduates with information on how to launch small businesses. Now the bill will go to the Senate for further consideration.  

• Rep. Raja Krishnamoorthi (D-IL) Reintroduces Resolution to Double CTE Funding: Rep. Krishnamoorthi reintroduced a resolution calling to double the federal funding for CTE. ACTE has endorsed this resolution, as these funds are critical to the sustainability and growth of CTE programs nationwide.  

• ACTE Perkins 101 Briefing for Hill Staff: On Friday, ACTE, in partnership with Jobs for the Future (JFF) and Advance CTE, hosted an all-day Perkins 101 briefing for Congressional staff. This briefing was designed to provide staff that could be involved in any potential reauthorization discussions a strong knowledge foundation.  

• McMahon Testifies Before Both Chambers of Congress: Last Tuesday, Secretary McMahon testified before the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education and Related Agencies on President Trump’s Fiscal Year (FY) 2026 budget request for the Department of Education (ED). Then on Wednesday, she testified before the House Committee on Education and Workforce on the policies and priorities for ED. Read more on the blog. 

• Secretary Chavez DeRemer Testifies Before Education and Workforce Committee: Secretary Chavez DeRemer testified at the House Education and Workforce Committee’s hearing on the policies and priorities of DOL. She discussed the importance of expanding apprenticeship programs for underserved communities and highlighted DOL’s recently created apprenticeships. 

• Senate HELP Committee Held Hearing on Trump Administration Education and Labor Nominees: The Senate HELP Committee held a hearing on several ED and DOL nominees, including nominations to Deputy Secretary of Education and Assistant Secretary for Civil Rights at ED and Assistant Secretary of Labor the Employee Benefits Security Administration at DOL.  

• Court Battles Continue Around ED Staffing: Following a preliminary injunction stopping large layoffs at ED, the Trump Administration has asked the Supreme Court to weigh in and allow them to move forward.  

• New Appointees Announced at ED: On June 6, ED formally announced the appointment of a new late of staff, including former OCTAE Deputy Assistant Secretary Casey Sacks, who will be working temporarily in the Administration as a senior policy advisor on workforce and AI. New OCTAE Deputy Assistant Secretary Nick Moore, who assumed his role several weeks ago, was also included in the announcement.