Washington Update, July 8, 2025
Dear Colleagues:
Last week we focused on the sudden “programmatic review” that put roughly $7 billion in K-12 formula and competitive grants on ice—including 21st CCLC, Title II-A, Title III, Migrant Education and more. Districts are still waiting; state chiefs are modeling layoffs; at least two attorneys-general are drafting lawsuits. No timeline, no guidance, and summer programs are already trimming staff.
While that freeze grabs headlines, Congress spent the holiday pushing through the One Big Beautiful Bill Act (H.R. 1)—an 870-page reconciliation package that rewires federal student aid, slaps a steeper surtax on large private-college endowments, and creates the first-ever federal K-12 scholarship tax credit. The House margin was one vote (218–214); the President signed it on July 4. (congress.gov)
Below is what changed, why it matters for special-education scholars, and what to watch next.
Why this matters for higher-ed faculty & doctoral scholars in special education
1. Doctoral funding math just got harder.
Graduate students who once leaned on unlimited PLUS will hit firm ceilings. Programs may need to sweeten assistantships, accelerate time-to-degree, or braid in grant dollars (OSEP leadership, research fellowships) to remain competitive—especially vital as we fight persistent shortages in special-education faculty pipelines.
2. Endowment pressure may shift internal budgets.
Asset-rich universities will look for ways to classify more funds as “student-serving” to soften an 8 % bite. Colleges of Education could either gain (if leadership redirects for high-need programs) or lose (if central finance tightens discretionary pools). Keep an eye on how your institution allocates overhead for GA lines, clinic operations, and research centers.
3. A fresh policy lab for inclusion research.
The scholarship credit will channel private dollars toward voucher-style programs—often with uneven disability safeguards. Scholars have an opening to study enrollment patterns, IDEA compliance, and outcomes for students with disabilities in newly funded private settings. Early evidence can shape forthcoming Treasury guardrails and state opt-in decisions.
4. Pipeline programs depend on frozen K-12 streams.
Many special-education residencies, multi-tiered systems pilots, and bilingual-specialist trainings ride on Title II-A and Title III dollars now “under review.” If the freeze becomes a rescission, university-district partnerships may scramble for bridge funds right as fall cohorts arrive.
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What to watch
• Q4 ’25: Treasury proposed rules on Scholarship Tax Credit (eligibility tests, anti-double-dip rules).
• Winter ’25: ED draft regulations on new repayment plans and program-level earnings metrics.
• Sept 30 ’25: End of the federal fiscal year—still-withheld K-12 dollars could legally lapse without congressional action.
• July 1 ’26: New loan caps and two-plan menu take effect.
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What we can do this week
1. Audit doctoral funding gaps. Map current PLUS-dependent packages and estimate shortfalls under the new caps; share scenarios with deans before spring recruitment.
2. Document grant-dependent projects. Keep receipts on residencies, PD institutes, and data-collection efforts tied to the frozen K-12 streams; they may serve as evidence for reimbursement or litigation.
3. Engage state delegations. Provide district-level stories (and potential IDEA compliance risks) to appropriators weighing whether to force OMB to release FY 25 dollars.
4. Prep for endowment conversations. If your university clears the 3 000-student line, brief leadership on how surtax exposure could ripple into GA support and center budgets.
Advocacy Assist — TED-CEC Policy Committee Resources
As Congress rewires student-aid rules and the administration keeps nearly $7 billion in K-12 grants on ice, faculty and doctoral scholars need turnkey tools that translate policy shifts into action. Enter the Teacher Education Division (TED) Policy Committee.
• What they offer.
o A continually updated Policy & Advocacy Portal with issue explainers, Washington-Update archives, and rapid-response alerts that track exactly the kinds of developments we covered this week. (tedcec.org)
o A suite of concise Advocacy Briefs—think “Federal Appropriations 101,” “Using TED & CEC Resources,” and other bite-size primers that pair context with sample talking points you can drop straight into emails, op-eds, or class discussions. (tedcec.org)
o A downloadable Advocacy Toolkit (templates, calculators, and step-through guides) plus periodic “Advocacy-in-Action” sessions that walk you through engaging Hill and statehouse offices—crucial as states debate opting in or out of the new Scholarship Tax Credit and as districts brace for the grant review. (tedcec.org)
• Why it matters right now.
o The Briefs give you ready language to explain how capped grad-loan borrowing will hit the special-education faculty pipeline.
o The Toolkit’s district-impact calculator can quantify what a months-long freeze in Title III or 21st CCLC dollars means for your partner schools—data that resonates with appropriators.
o The Portal’s real-time alerts keep your syllabi and research agendas synced with each new ED or Treasury rule that flows from the One Big Beautiful Bill Act.
Bookmark it, share it with your cohort, and borrow liberally: tedcec.org/policy-and-advocacy-portal.
Huge thanks to the volunteer Policy Committee for building the scaffolding so the rest of us can keep our advocacy both nimble and evidence-rich.
With appreciation and resolve,
Kait
@brennan_kait
