This week’s Federal Update covers Congressional, Executive, and Judicial activities of interest in Washington, D.C.
Congressional Branch activities of interest
Floor Activity
The House and Senate were in Session this week.
FY 2026 Appropriations
On February 12, a Senate vote to extend the FY25 Homeland Security bill for two weeks failed. Homeland Security funding expires on February 14, meaning that funding will lapse, and federal agencies funded by the bill will shut down. The Homeland Security bill includes funding for ICE and TSA, among others.
Hearings
On February 11, the House Subcommittee on Research and Technology of the Committee on Science, Space, and Technology held a hearing titled, “Accelerating Progress: U.S. Surface Transportation Research.” In their opening statements, Chairman Brian Babin (R-TX) and Subcommittee Chairman Jay Obernolte (R-CA) discussed the important of surface transportation research to supporting critical infrastructure in the United States. Chairman Obernolte also specifically mentioned how AI will play an essential role in improving the American transportation system. Watch the hearing here.
On February 10 the House Committee on Ways and Means held a hearing titled, “Foreign Influence in American Non-profits: Unmasking Threats from Beijing and Beyond.” Witnesses testified that foreign state-linked donors may seek to shape U.S. public discourse or policy by funding nonprofits engaged in advocacy, research, community organizing, or media work. Indiana Rep. Rudy Yakym (R) questioned witnesses on Swiss billionaire Hansjörg Wyss’s monetary contributions, to understand how Wyss’s donations to a 501(c)(3) organization end up influencing political action committees. Caitlin Sutherland, the Executive Director of Americans for Public Trust, responded that his funds are typically transferred through a network of tax-exempt organizations, that are often difficult to track because of their layered structure, and eventually end up in issue advocacy campaigns. The committee was urged by many of the witnesses to strengthen IRS oversight and capabilities to track foreign funding in both the nonprofit sector and universities. Watch Rep. Yakym’s Q&A here. Access witness testimony and the full hearing here.
Bills Introduced
Ending Exploitative Imported Labor Exemptions (EXILE) Act (H.R. 7451) was introduced by Rep. Gregory Steube (R-FL). The EXILE Act would end the H-1B visa program that allows U.S. employers to hire foreign workers in specialty occupations, such as in technology or healthcare. Read the press release here. Read the bill text here.
Preventing Research Ownership Transfer to External Competitive Threats (PROTECT) Act (H.R. 7510) was introduced by Rep. Troy Nehls (R-TX). The bill would prohibit universities from selling intellectual property rights of research conducted by university faculty and students to certain foreign governments. The PROTECT Act would enable the Department of Justice (DOJ) to seize any funds a university receives in exchange for its research. This bill follows the recent Department of Education (ED) announcement of university foreign funding and contract disclosures. Read the press release here. Read the bill text here.
Bipartisan AI Grand Challenges Act of 2026 (S. 3809 and H.R. 7434) was introduced by Sens. Cory Booker (D-NJ), Mike Rounds (R-SD), and Martin Heinrich (D-NM) as well as Reps. Ted Lieu (D-CA) and Jay Obernolte (R-CA). The bill would direct the National Science Foundation (NSF) to establish an AI Grand Challenges Program and administer prize challenges. The awards would constitute at least $1 million for each competition. The goal of the bill is to incentivize researchers and innovators to utilize AI to solve issues in a variety of sectors, including health, energy, environment, national security, and cybersecurity. Read the one pager here. Read the Senate bill text here and the House bill text here.
Foster Youth Postsecondary Education Access and Success Act (H.R. 7463) was introduced by Rep. Judy Chu (D-CA). Th bill would increase the value of the Education and Training Voucher (ETV) program from $5000 annually to $12,000 annually and establish a grace period for students to continue to receive vouchers if they experience circumstances that would prevent them from meeting their state’s satisfactory academic progress metrics. Read the press release here. Read the bill text here.
Executive Branch activities of interest
Department of Education Releases Foreign Funding Disclosures from Federally Funded American Universities
The Department of Education (ED) has released the foreign funding disclosures of American universities for 2025. In 2025, American universities reported more than $5.2 billion in foreign gifts and contracts. This data comes after a December 2025 announcement from ED about the creation of a new accountability portal to enable schools to more efficiently report foreign funding. Read the full press release here. See the funding portal here.
Secretary Pete Hegseth Ends Department of Defense Professional Programs with Harvard University
Secretary of Defense Pete Hegseth announced that the Department of Defense (DOD) will sever all academic ties with Harvard University, including graduate-level professional military education programs, fellowships, and certificate offerings. In his announcement, Secretary Hegseth cited concerns about Harvard’s ideological orientation, relationships with foreign entities, and campus culture as reasons for terminating these programs. He also stated that the DOD will continue to evaluate existing programs at Ivy League universities to determine whether they are “cost-effective compared to public universities and the DOD’s own military graduate education programs.” Read the full press release here.
Judicial Branch activities of interest
Department of Defense Withdraws Appeal in F&A Case
On February 10, the Trump Administration filed a motion to dismiss its appeal in the 1st Circuit Court of Appeals in the AAU, ACE, and APLU case challenging the Department of Defense’s policy to cap F&A costs at 15%. AAU, ACE, and APLU did not oppose the motion. The Administration did not provide a justification for why it is moving to dismiss the case, and the 1st U.S. Circuit Court of Appeals must still grant the dismissal. If the appeals court grants the dismissal, the district court’s order vacating the DOD rate cap policy will remain the final decision.