Washington Update, June 30, 2025
Dear Colleagues:
This Washington Update arrives at a moment when the policy landscape around education finance, curriculum rights, and pandemic recovery remains in flux. Senate Republicans’ efforts to advance sweeping tax and education provisions through reconciliation have encountered major setbacks, with the Senate parliamentarian ruling that several high-profile proposals—like restricting student loan repayment options and creating new private school tax credits—fall outside the rules of budget reconciliation. Meanwhile, the Supreme Court’s decision on parental opt-out rights in Montgomery County underscores the growing tension between inclusive curriculum and religious liberty, raising important questions for school leaders and teacher preparation programs. Finally, the Education Department’s temporary pause on cutting off COVID relief reimbursements has provided short-term stability for states and districts while legal challenges continue.
These developments illustrate just how quickly the education policy environment can shift—and why it’s essential for faculty, researchers, and doctoral scholars to stay informed about emerging decisions that affect funding streams, accountability expectations, and the day-to-day realities of schools.
1. Reconciliation roadblocks for Republican education Agenda
Senate Republicans’ plans to advance sweeping education and tax policy changes through reconciliation have hit multiple roadblocks after a series of procedural rulings from the Senate parliamentarian.
First, the parliamentarian determined that efforts to end existing student loan repayment plans—including the Biden administration’s SAVE program—and replace them with two new options can’t apply to current borrowers without 60 votes. Those repayment changes were projected to save billions but now face an uncertain path. Other provisions targeting student aid were also flagged, including limits on Public Service Loan Forgiveness for medical residents and expanded Pell Grants for short-term training at unaccredited or for-profit programs.
Separately, Republicans’ proposal to create a multibillion-dollar private school tax credit also failed the Byrd rule test. The plan, modeled on the Educational Choice for Children Act, would have offered a $4 billion annual tax credit to donors funding private school scholarships—an effort projected to cost more than $26 billion over ten years. Another GOP provision to exempt religious colleges such as Hillsdale College from a new federal endowment tax also did not meet reconciliation requirements.
Senate Finance and HELP Committee leaders say they may try to rework some of these proposals to fit within the procedural constraints. But as it stands, the rulings represent a major challenge to Republican efforts to move their education and tax priorities forward without bipartisan support.
Why This Matters for Special Education Faculty and Doctoral Scholars
These proposals touch nearly every part of the education landscape—from how graduate students repay their loans to whether federal incentives will shift funding toward private schools. If you work in teacher preparation, special education policy, or higher education finance, these debates are critical to watch. Even when provisions don’t survive the Byrd rule, they signal where federal priorities are moving—and what might return in future legislation.
2. Supreme Court backs parental opt-out rights in curriculum dispute
The Supreme Court has ruled that parents in Maryland’s largest school district must be given the option to remove their children from storybook lessons that conflict with their religious beliefs.
In a 6–3 decision along ideological lines, the court said Montgomery County Public Schools violated parents’ First Amendment rights by ending its opt-out policy for lessons featuring LGBTQ+ themes. The policy change had sparked a lawsuit from Muslim, Christian, and Jewish families who argued they should be notified in advance and allowed to excuse their children.
Justice Alito, writing for the majority, said the district’s approach interfered with parents’ ability to guide their children’s religious upbringing. He pointed out that the books were designed to promote specific views on sexuality and gender that parents sincerely opposed. The court ordered a preliminary injunction, meaning the families can opt out while the larger legal fight continues.
Justice Sotomayor, writing in dissent, warned the decision could create serious disruption for public schools by requiring them to track and notify families about any material that could be considered religiously sensitive.
Why This Matters for Special Education Faculty and Doctoral Scholars
This ruling is likely to have ripple effects in curriculum policy and school administration nationwide. For faculty working in teacher preparation, special education, or school leadership, it raises questions about how districts will balance inclusive instruction with parental objections—and whether new notification requirements will divert time and resources from instruction. If you supervise student teachers or research school policy, watch this closely. It could reshape how districts handle sensitive content in classrooms.
3. Education Department pauses Pandemic relief cuts amid legal Challenges
The Education Department is hitting pause on its plan to cut off pandemic relief reimbursements to states—for now.
After a federal judge blocked the Trump administration’s March directive to end reimbursements for leftover American Rescue Plan funds, the Secretary of Education, Linda McMahon, said states can keep submitting claims to cover contracts and programs they’d already approved. This means efforts like facility upgrades, tutoring, summer school, and literacy supports that were at risk of losing funding can continue at least while the legal fight plays out.
The situation has caused a lot of confusion, with some states still under the March order and others exempt because of the lawsuit. The Department released new guidance last week to help state agencies figure out next steps while courts sort it out.
Why This Matters for Special Education Faculty and Doctoral Scholars
Many of the programs paid for with these dollars have been critical for students with disabilities, including extended school year services, mental health supports, and targeted interventions to help close learning gaps. For faculty and doctoral researchers who partner with schools or rely on these initiatives for data collection and demonstration projects, the uncertainty creates real risks for timelines, access, and funding stability. It’s worth watching closely as the legal process unfolds.
While this moment brings no shortage of uncertainty, it also offers opportunities to engage, inform, and help shape policies that impact the students and communities we serve. By staying connected and lending your expertise to the conversation, you help ensure that future legislation and guidance reflect both the complexity of the field and the needs of those on the front lines.
As always, thank you for your commitment to advancing knowledge, supporting equity, and preparing the next generation of educators.
With hope and resolve,
Kait
@brennan_kait
