Federal Budget and Tax Policy

Last night, the House Appropriations Committee advanced its fiscal year (FY) 2027 Labor, Health and Human Services, Education, and Related Agencies funding bill.

WASHINGTON, D.C. – On Friday, President Trump released his Fiscal Year 2027 (FY27) “skinny” budget which proposes $1.5…

A coalition of 65+ organizations is urging Congress to act immediately to address a looming funding shortfall for the federal Pell Grant program by “providing new funding that fully covers the current and projected Pell Grant shortfall for the current and upcoming fiscal years to prevent any loss in student eligibility or aid.” 

The OBBBA made significant changes to the federal student loan system, with many of those changes likely to increase graduate students’ reliance on private student loans. In anticipation of these changes, our fact sheet offers Congress solutions to pre-emptively protect students from risky private loans.

Federal student loan default comes with severe consequences. The entire loan balance becomes immediately due, and borrowers face ongoing damage to their credit scores, along with a range of significant fees. Our fact sheet outlines reforms Congress can make to help borrowers get out and stay out of loan default.

Shifts to student loan repayment in the OBBBA have driven ongoing concerns about a looming “default cliff,” where an unprecedented number of borrowers struggle so much to repay their loans that they default on their payments in droves. Our fact sheet outlines additional reforms Congress can make to ensure the repayment system is actually affordable for all borrowers.