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Federal Government Update - 10.2.26

Dear Colleagues,

Please find a federal government update from our teams.

White House Unveils $810 Million Rescission Package
The White House announced on Sept. 25 that it would impound $810 million in Fiscal Year (FY) 2026 funding appropriated by Congress. The so-called "pocket rescission" claws back funding for eleven programs at the U.S. Departments of Commerce, Education, Health and Human Services, Homeland Security, Housing and Urban Development and Justice, as well as International Assistance Programs, according to a letter to House Speaker Mike Johnson (R-LA). CU campuses applied for grant funding from some of the impacted health and education programs.

Lawmakers, including Senate Appropriations Chair, Susan Collins (R-ME), said the White House is violating the Impoundment Control Act of 1974, which prescribes the process the president must follow to delay or cancel congressionally approved funding. The White House says the impounded funds expired on Sept. 30, which is the last day of the fiscal year.

A coalition of seven attorneys general, led by California, filed a lawsuit on Sept. 30 in the U.S. District Court for the Northern District of California challenging the pocket recission. Colorado did not join the suit. The complaint alleges violations of the U.S. Constitution and Administrative Procedure Act and urges the court to compel federal agencies to "fully apportion, obligate and spend unlawfully impounded funds."

This is the second rescission package proposed by the current administration. The White House blocked $5 billion in foreign aid in 2025, deploying a pocket rescission for the first time in over 50 years. The U.S. Supreme Court allowed the rescission to proceed without ruling on its merits, reports ABC News. Meanwhile, the Government Accountability Office (GAO) says pocket rescissions are illegal when Congress is not given adequate time to consider rescission requests.

Senate Advances Protect College Sports Act
The U.S. Senate passed the Protect College Sports Act (S.4668) on Sept. 28 on a bipartisan vote of 77-22. Colorado Sens. Michael Bennet and John Hickenlooper voted favorably. Sen. Hickenlooper, who co-sponsored the bill and championed inclusion of strong protections for Olympic and women’s sports, applauded its passage in a press release. The legislation establishes a federal regulatory framework for college athletics, creating a national standard for NIL that preempts the current patchwork of state laws, ensuring enforceable guardrails around spending and transfers, providing limited liability protection, so schools and conferences can enforce the rules and much more. Most importantly, it enshrines essential protections for student athletes. CU supports this legislation and President Saliman, Chancellor Schwartz, Athletic Director Lovo and others have worked with our Senators, their staff and others over many months toward this outcome. The bill will head to the U.S. House for consideration after the mid-term elections in November. Despite the strong bipartisan Senate vote and White House support, the legislation faces an uncertain future in the House, reports Axios. CU will work toward bill passage with our Colorado House members and other partners over the coming weeks and months.

ED Recodifies Title IX Regulations
The U.S. Department of Education (ED) formally rescinded on Sept. 29 regulations enacted in 2024 to implement Title IX, which prohibits sex-based discrimination in education programs that receive federal financial assistance. ED also reinstated 2020 regulations governing Title IX. The new final rule will not precipitate changes for "individual students, parents and teachers," ED explains in an accompanying fact sheet. The 2024 rules were never implemented due to legal challenges. ED has been enforcing the 2020 regulations since Jan. 31, 2025.

CU Anschutz Responds to NIH K Award RFI
CU Anschutz submitted comments to the National Institutes of Health (NIH) on Sept. 29 expressing concern about proposed changes to Career Development (K) Awards for early-stage clinical investigators. NIH issued a request for information in August seeking feedback on two potential funding models that would separate clinical trial funding from K awards, including a separate research project grant or a phased award transitioning investigators from mentored training to independent trial funding. CU Anschutz urged the NIH to keep the existing programs open and funded for at least five years while a replacement is developed and evaluated. In addition, the campus urged the NIH to ensure future K mechanisms allow investigators to gain hands-on experience conducting small pilot, feasibility and ancillary studies.    

Senate Confirmations
The Senate confirmed Keith Sonderling on Sep. 30 to be the Secretary of the Department of Labor on a 47-41 vote.

The Federal Relations and General Counsel teams are actively monitoring developments at the federal level. We are working closely with the President and Chancellors, as well as the Colorado congressional delegation to champion CU priorities. We are committed to keeping you informed. Please visit the CU System Federal Updates and Actions page for up-to-date communications and federal memos.

Danielle Radovich Piper, Sr. VP External Relations and Strategy  
Kerry Tipper, Vice President, University Counsel

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