Washington, D.C. — Education Secretary Linda McMahon appeared before the House Appropriations Committee today to discuss the White House’s proposed 2026 budget for the U.S. Department of Education. The proposal outlines $67 billion in cuts, a 15 percent reduction in discretionary funding for the Department.
Mike Calhoun, president of the Center for Responsible Lending (CRL), issued the following statement:
The administration’s proposed budget represents a devastating setback for higher education access and equity, particularly for first-generation college students and students from historically marginalized communities. Slashing billions from the Department of Education not only weakens the federal commitment to public education but it also directly threatens the future of students who rely on need-based financial aid to attend and complete college.
The Secretary considers these cuts a ‘pivotal’ step toward winding down the Department, but they would limit access to Pell Grants, reduce support for student loan borrowers, and undercut efforts to simplify and strengthen repayment options. Students who are already navigating systemic barriers—low-income students, underrepresented students and adult learners returning to school—will be disproportionately harmed. For many, higher education is a path to economic mobility, but this budget turns that path into a dead end
Equally troubling is the administration’s decision to resume collections for borrowers in default while improvements to repayment plans remain stalled. More than five million borrowers are currently in default and now face aggressive collection actions such as wage garnishment, tax refund seizures and Social Security offsets. These punitive measures exacerbate financial instability and widen racial and economic disparities.
As Congress evaluates this proposal, we urge lawmakers to consider the real-life consequences for students and families across the country. We must reject policies that deepen inequality and instead invest in a higher education system that is inclusive, affordable and fair for all.
Note: Today’s House hearing coincides with a related Senate hearing examining the broader state of higher education in the United States. Together, they highlight a pivotal moment in the national dialogue about the federal government’s responsibility in ensuring educational opportunity for every student.
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Press Contact: Vincenza Previte vincenza.previte@responsiblelending.org