By Hugh T. Ferguson, NASFAA Managing Editor

House Republicans have taken their first committee action on their reconciliation package with the House Education & Workforce committee advancing their portion of the bill that makes drastic changes to Department of Education (ED) programs and initiatives.

The markup took place on Tuesday with Republicans and Democrats sparring over the massive budget framework requiring the committee to cut at least $330 billion in ED spending over the next 10 years.

Ultimately, the committee advanced the legislation on a party-line vote of 21-14.

Members of the committee remained diametrically opposed to the bill, with Republicans urging its advancement, arguing that the bill would simplify student loan repayment and promote fiscal accountability, while Democrats argued that the bill would put higher education out of reach for millions of Americans.

NASFAA’s analysis of how the reconciliation proposal will impact higher education programs

Rep. Tim Walberg (R-Mich.), chair of the House Education and Workforce Committee, said that the legislation was necessary to overhaul the student loan system and ensure that students and taxpayers are afforded more fiscal accountability.

“If there is any consensus when it comes to student loans it is that the current system is effectively broken and littered with incentives that push tuition prices upward,” Walberg said. “Schools have no reason to lower costs or ensure degrees align with employer needs, all while students and tax payers pay the price.”

Walberg also accused Democrats of supporting policies that would force taxpayers to pay for free college and said it was “radical and illegal” for the Biden administration to implement the Saving on a Valuable Education (SAVE) repayment plan.

Rep. Bobby Scott (D-Va.), ranking member of the House Education and Workforce Committee, said the reconciliation package was a “betrayal” to the promise of the Higher Education Act (HEA), which was meant to ensure that the federal government would help students seeking higher education.

“In the past couple decades there has been an open hostility to higher learning,” Scott said, noting that the Pell Grant program used to cover roughly 80% of higher education and now – following decades of disinvestment – only covers a third of the cost of higher education.

Instead of lowering costs for students, Scott said that the reconciliation bill “will ensure that higher education will be out of reach for millions of Americans.”

During the markup the committee rejected more than two dozen amendments offered by committee Democrats. Those amendments were offered by: 

• Rep. Alma Adams (N.C.) to prohibit the bill from taking effect until the Education Secretary certifies that the package won’t disproportionately harm HBCUs or increase out of pocket costs for low-income students; and strike a provision that would cap student aid at the median cost of attendance.

• Rep. Lucy McBath (Ga.) to preserve closed school discharge rule and move the responsibility of a school closure to school proprietor; seek to stop the exemption of time worked as medical and dental residency in rural areas from PSLF program; and prevent the bill from taking effect until the Education Secretary certifies that the bill will not result in a decrease of the average pell award.

• Rep. Jahana Hayes (Conn.) to prohibit the reduction of Supplemental Nutrition Assistance Program (SNAP) benefits; and expand PSLF to count the 5 years of classroom service in a high need district towards both PSLF and the direct loan program. 

• Rep. Suzanne Bonamicci (Ore.) to require that the bill not reduce nutrition benefits from Special Supplemental Nutrition Program for Women, Infants, and Children; stike the portion of the bill that places limitations on the Education Secretary’s rulemaking authority; and prohibit funding cuts to take effect until OIG can verify that low-income borrowers will not see an increase in their monthly loan payments. 

• Rep. Joe Courtney (D-Conn.) to shorten the time to PSLF forgiveness from 120 payments (10 years) to 96 payments (eight years).

• Rep. John Mannion (D-N.Y.) to require an examination of the Department Of Government Efficiency’s (DOGE) impact terminated contracts had on higher education; and preserve access to the home or community-based services for students with disabilities.

• Rep. Mark Takano (D-Calif.) to strike proposed repeal of borrower defense rule; to strikes repeal of 90/10 loophole fix; and prohibit the bill from taking effect until the Education Secretary certifies that there will not be an increase in fraud affecting service members.

• Rep. Bobby Scott (D-Va) to strike bill section concerning Pell Grant eligibility that would change the definition of full time student and increase number of credits from 12 to 30 in order to be considered part time; and preserve the SAVE plan; and prevent the bill from taking effect if its implementation results in cuts to Medicaid or SNAP.

• Rep. Illian Omar (D-Minn.) to strike the section on Pell Grant eligibility for part time students; strike the removal of the sunsetting of the economic hardship and unemployment deferments provision for student loan borrowers; prohibit any wage or social security garnishments from defaulted student loans; and prohibit the bill from taking effect if it causes a student to become ineligible for a service or benefit funded under medicaid.

• Rep. Mark DeSaulnier (D-Calif.) to require ED to certify that the department is complying with all court orders that have and may be issued.

• Rep. Summer Lee (D-Penn.) to require that the legislation will not reduce access to abortion services for college students; prevent DOGE from accessing sensitive student health data; strike the section concerning loan limits; shift Pell Grant program funding fully mandatory; prohibit colleges and universities from considering legacy or donor admissions; and strike the bill’s risk-sharing agreement if over 20% of the student body is pell eligible.

• Rep. Greg Casar (Texas) to prevent DOGE employees from accessing sensitive higher education information student data and privacy; and prevent the legislation from taking effect if a special government employee (such a Elon Musk) exceeds their 130 days of employment. 

After extensive debate, the only bipartisan agreement reached was the notion that the reconciliation package is being considered at a time when higher education is at an inflection point.

NASFAA’s Interim President and CEO Beth Maglione said in a statement that the legislation as drafted would turn the clock back for student access.

“In this volatile economy, students and families are questioning not just how they will pay for college, but whether they should go at all,” Maglione said “Rather than making college more affordable, this bill would eliminate entire federal student aid programs, significantly reduce eligibility for others, strip protections and flexibilities for struggling borrowers, and remove provisions intended to protect taxpayer dollars.”

Tuesday was the first in a series of House committee markups for the eventual bill, where committees will address the sections that fall within their respective jurisdictions.

The White House and Republican leaders in Congress are now coalescing around a deadline of July 4 to finalize and enact their budget bill, though that timing could change based on how quickly each committee and chamber is able to work through the reconciliation bill text.  

Stay tuned to Today’s News for further analysis of the text.

Publication Date: 4/30/2025

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