The House Appropriations Labor-HHS Subcommittee held a May 21 hearing on the Department of Education’s FY 2026 budget, where Education Secretary Linda McMahon faced questions on federal student aid and loan servicing under the department’s jurisdiction — which are key AAMC priorities.
Rep. Lois Frankel (D-Fla.) expressed concern with the elimination of the Grad PLUS loan program, “which helps the graduate students, including those in medicine and nursing, to cover the full costs of tuition and living expenses, while exhausting standard loans.” Frankel also noted that elimination of this program is of particular concern because limiting access to health professions education could further exacerbate the physician and nurse workforce shortage. Rep. Julie Letlow (R-La.) urged the department to refocus the Office of Federal Student Aid on its core mission of supporting students and loan repayment. Secretary McMahon affirmed her commitment to ensuring that functionality.
Democratic members also questioned McMahon on President Donald Trump’s executive order directing her to begin to dismantle the Department of Education and her commitment to spending all appropriated funding to the agency [refer to Washington Highlights, March 21]. McMahon replied that she will “abide by the law.” In a separate Senate Appropriations, Financial Services, and General Government Subcommittee hearing on the Small Business Administration (SBA) budget, Sen. Chris Van Hollen (D-Md.) asked whether the student loan portfolio might shift to the SBA if the Department of Education is dismantled. SBA Administrator Kelly Loeffler said no final decision has been made.
- Washington Highlights