The DC Digest

Duke Government Relations

Duke in DC's Top News Today:

Appropriations Update
Department of Energy Repeals Policy Capping Indirect Cost Rates
Department of Defense to Merge Innovation and Science Boards
Department of Education Takes Another Step Toward Finalizing Loan Limits
H-1B Visa Pauses Advance in Florida, Texas

The Highlights 📰

Budget & Appropriations

The latest coverage on Fiscal Year 2026 appropriations that are relevant to Duke.

Duke Government Relations' primer on the federal appropriations process.

APPROPRIATIONS UPDATE

A partial government shutdown could begin tonight if the Senate fails to reach a deal on the final spending bills for FY26. Progress on the remaining FY26 appropriations bills stalled this week after Senate Democrats withdrew support for the package, citing concerns with the included Department of Homeland Security (DHS) bill following the recent fatal incident in Minnesota involving ICE agents. Without enough Democratic votes--and with several Republicans also opposing the measure--the package failed to advance in a Thursday vote. A new agreement would fund the DHS bill under a short term continuing resolution while negotiations continue and would provide final passage for the remaining five appropriations bills. The Senate is expected to take up the revised package for a vote later today. The House is on recess and not expected to take up the funding bills until Monday at the earliest, which means a short lapse in funding for several federal agencies would occur over the weekend. The Office of Government Relations (OGR) is maintaining a close eye on the Senate as things unfold and will provide updates as necessary.

Potential Shutdown

Research

The latest updates on legislation and regulations that impact Duke's research enterprise.

DEPARTMENT OF ENERGY REPEALS POLICY CAPPING INDIRECT COST RATES

This week, the Department of Energy announced that with the FY26 Energy-Water bill signed into law, “the Policy Flashes related to adjusting indirect rates…are no longer in effect.” The bill requires the negotiated indirect cost rates to apply as they were applied in FY24. The DOE had issued new rate caps that we covered last spring.

Policy Flash

DEPARTMENT OF DEFENSE TO MERGE INNOVATION AND SCIENCE BOARDS

The Department of Defense has announced a plan to merge the Defense Innovation Board and the Defense Science Board into a single entity, the Science and Technology Innovation Board (STIB). The move is part of a broader effort to streamline departmental advisory structures and reduce what officials describe as redundant bureaucracy. According to an announcement from the DoD, the new board will bring "together the DSB's deep scientific and technical rigor with the DIB's private‑sector agility and disruptive mindset." Reporting from POLITICO Pro indicates that the STIB is expected to include 40 experts and will launch with two subcommittees--one focused on strategic options and another on national security innovation--to help accelerate the transition of new concepts into operational use. Formal establishment of the board is pending with the Federal Registrar.

Board Merge

Student Aid, Institutional Support and Taxes

The latest updates regarding legislation and regulatory actions related to student aid, higher education institutional support, taxes and more.

NASFAA Student Aid Reference Desk

DEPARTMENT OF EDUCATION TAKES ANOTHER STEP TOWARD FINALIZING LOAN LIMITS

The Department of Education has released its proposed rule from the RISE committee's negotiated rulemaking process, moving changes to federal student loan eligibility and borrowing limits closer to finalization. The proposal reflects the agreement reached by the RISE committee and introduces a newly formalized, narrowly defined category of “professional student.” Because borrowing limits under the “One Big Beautiful Bill” Act are tied to this definition, many graduate programs could see lower federal loan caps. Under the proposed regulation, Grad PLUS loans would be eliminated, Parent PLUS loans would be restricted, and new annual and aggregate borrowing limits would be established, with higher caps reserved for programs that meet the new “professional” designation. The rule will be posted for 30 days of public comment, after which the Department will work to finalize it before the planned July 1 effective date. The Office of Government Relations continues to actively engage on this issue and will provide more updates in this Digest.

Loan Limits

Immigration

The latest updates on legislation and regulatory actions related to immigration that are relevant to Duke.

H-1B VISA PAUSES ADVANCE IN FLORIDA, TEXAS

Texas and Florida are advancing measures that would pause new H-1B visa hiring at public universities and state agencies, citing concerns about how the program is being used and the need to collect additional information. In Texas, Gov. Greg Abbott ordered a halt on new H-1B applications by public colleges and agencies through May 2027 and directed institutions to report detailed data on current sponsorships and recent petition activity by March 27. In Florida, the state university system’s Board of Governors has opened a two-week public comment period on a proposal to prohibit new H-1B hires at public universities through Jan. 5 of next year, with a full board vote expected afterward.

Government Relations Resources

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