House education panel backs Department of Education policy agenda at Washington hearing

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House backs education policy agenda

Highlights

Secretary McMahon's Department of Education has enacted major reforms, including new student loan rules, expanded Pell Grants, and early FAFSA rollout for 2026-2027.
Anti-fraud initiatives blocked over $1 billion in attempted fraud in 2025 by strengthening identity verification and detection amid rising AI-driven ghost student attempts.
The Working Families Tax Cuts will expand K-12 school choice with a tax-incentivized scholarship program set to mobilize $4.4 billion annually by 2034, with 31 states participating.

Hearing focuses on reform rollout

As reported by the House Committee on Education and the Workforce, Chairman Tim Walberg says at a May 14 hearing that Secretary McMahon's department is moving quickly to carry out reforms under the Working Families Tax Cuts and broader education policy priorities.

Walberg says the law includes the biggest higher education changes in more than a decade, aimed at lowering college costs, reducing debt burdens and expanding career pathways. He says the department has already completed two negotiated rulemaking processes that reached consensus on student loan reforms, accountability rules and an expansion of Pell Grants for short-term workforce programs.

He also says the department has launched the 2026-2027 FAFSA earlier than before, after problems with the prior rollout, and that student loan repayment is returning to a more stable footing. In addition, Walberg points to new Section 117 investigations into unreported foreign funding and changes to the reporting portal designed to improve transparency and public access.

Fraud controls and school choice carry wider impact

Walberg says the department is stepping up anti-fraud efforts as AI increases the scale and sophistication of ghost student schemes. He credits McMahon's tenure with restoring safeguards, tightening identity verification and improving fraud detection, adding that those actions help block more than $1 billion in attempted fraud in 2025 alone.

At the K-12 level, he says the Working Families Tax Cuts expands school choice through a tax benefit tied to donations to nonprofit scholarship granting organizations. The program is set to become operational in January 2027, and the Joint Committee on Taxation estimates it could make about $4.4 billion available annually to students and families by 2034.

Walberg says 31 states had indicated by last week that they would participate in the program, while the Treasury Department handles implementation in coordination with Education. He also praises the department's positions on Title IX, parental rights, antisemitism and shifting education decision-making back to states and local communities, framing those areas as part of a broader push to align education programs with workforce and economic priorities.

Our earlier coverage of the expansion of combined WIOA State Plans explained how more states are integrating workforce development planning with Perkins V career and technical education programs. We noted that the shift is designed to reduce administrative friction, better align credentials with in-demand jobs, and support initiatives such as Workforce Pell Grants as part of a broader education-to-employment strategy.

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