March 24 Federal Update: President Trump Issues an Executive Order to Close the Department of Education 

On March 20, President Donald Trump issued an executive order directing the Secretary of Education to take all necessary steps to facilitate the closure of the Department of Education. The order intends to return authority over education to the states and their local communities. 

The Secretary of Education, Linda McMahon, issued a statement stating that “closing the Department does not mean cutting off funds from those who depend on them.” McMahon affirmed the Department’s commitment to supporting K-12 students, students with special needs, college student borrowers, and others who rely on essential programs.  

Although terminating the Department of Education requires Congress to pass directed legislation, the order follows significant staffing reductions that will hinder the Department of Education’s ability to function effectively.  

CMS Rescinds Medicaid’s Health-Related Social Needs Guidance 

The Centers for Medicare and Medicaid issued an informational bulletin announcing its recission of 2023 and 2024 guidance explaining how states could access Medicaid coverage for health-related social needs (HRSNs), including through Section 1115 demonstrations. The demonstrations fund opportunities for states to create trial projects to assist Medicaid beneficiaries in accessing essential health care services. The guidance also rescinds the HRSN framework published by CMS in 2023. 

The demonstrations enabled states to provide support through Medicaid and the Children’s Health Insurance Program, including toward: 

• Nutrition 
• Housing 
• Employment support  
• Medical respite  
• Utility assistance 
• Case management services  

The policy change does not apply to existing HRSN programs that Medicaid covers; however, it may impact states’ ability to renew their coverage policies. CMS will continue to consider state requests for Medicaid coverage of HRSNs on a case-by-case basis to determine whether they comply with other federal requirements.   

President Trump Signs Continuing Resolution 

Congress approved a continuing resolution (CR) that will extend government funding through September. The CR increases funding for the Food and Drug Administration, including by allocating an additional $500 million for the Special Supplemental Nutrition Program for Women, Infants, and Children. It also extends funding for Temporary Assistance for Needy Families, Community Health Centers, the National Health Service Corps, and the Special Diabetes Program. 

The resolution also calls for funding cuts, including:  

• $160 million in obligated funds under the American Rescue Plan Act  
• $1.5 billion from HHS’s nonrecurring expenses fund 
• A nearly 5% funding reduction for the Department of Veterans Affairs 
• A nearly 3.5% funding reduction for Transportation and Housing and Urban Development 

CMS Offers Flexibility for State Medicaid and CHIP FFS Program Deadlines 

The Centers for Medicare & Medicaid Services offered additional time for states struggling to implement a rule that would require fee-for-service Medicaid programs to improve the timeliness of prior authorization decisions (CMS-0057-F). 

The Centers for Medicare & Medicaid Services Interoperability and Prior Authorization final rule established that, beginning January 1, 2026, state Medicaid and Children’s Health Insurance Program fee-for-service programs send prior authorization decisions within established timeframes: 72 hours for expedited requests and seven calendar days for standard requests. When prior authorizations are denied, the reason for the denial must be communicated to providers. 

However, CMS recognizes the unique challenges and extenuating circumstances states may face as they implement the adjusted timeframes. The agency expressed its commitment to working with state Medicaid and CHIP FFS programs to discuss situational challenges and identify a target compliance date.  

Senate Committee on Aging Holds a Hearing on Senior Loneliness 

The United States Senate Special Committee on Aging held a hearing to discuss the epidemic of rising social isolation and loneliness among American seniors and the severe harm it poses to their health and safety. Witnesses and senators lamented the increased risk to seniors’ physical and mental health, memory and thinking skills, and potential to participate in the workforce.  

Committee members and witnesses discussed risk factors, including the decline of multi-generational living, declining participation in community and civic life, and barriers to physical and financial mobility. Witnesses recommended strengthening federal programs and aging services, investing in meal programs, and expanding intergenerational programs. They also advocated for enhancing Medicare’s role in addressing loneliness including through wellness visits with routine screenings, supporting caregivers, improving transportation access, and strengthening digital inclusion. 

House Committee on Education and Workforce Holds a Hearing on School Choice  

The Subcommittee on Early Childhood, Elementary, and Secondary Education detailed declining education outcomes and stressed the trend’s harm to children’s futures and America’s prosperity and security. Chairman Kiley (R-CA) introduced school choice as a critical place for reform, including through conventional vouchers, education savings account vouchers, tax credit scholarship vouchers, and tax credits.  

Ranking Member Bonamici (D-Ore.) affirmed the importance of school choice through magnet schools, public charter schools, and inter-district and intra-district open enrollment policies. However, Bonamici also emphasized the importance of public schools’ federal civil right protections against discrimination and segregation and stressed the lack of accountability in private schools. 

Several witnesses spoke in favor of private schools and the safety and academic quality they offer. Dr. Michael McShane, the director of national research at EdChoice, a nonprofit whose mission is to advance educational freedom and choice as a pathway to successful lives and a stronger society, cited studies that demonstrated how school choice programs generally help raise participants’ academic results. In seventeen random assignment studies, eleven found positive results for some or all students, four found no effect, and two found negative effects.  

Nevertheless, Jessica Levin, the litigation director for the Education Law Center, a nonprofit that strives to safeguard students’ right to a high-quality education, spoke against private schools and raised concerns about their limited quality and accountability standards. Levin refuted the evidence provided by the previous witnesses presented and shared studies of worsening academic outcomes in private schools. She also stressed uncovered expenses, including transportation and books, the loss of federal protections public schools offer to students with disabilities, and the harm of diverting federal and state funds from underfunded public schools. 

Head Start Grantees Instructed to Remove EDI from Training and Expenditures

On March 21, the Administration for Children and Families (ACF) announced that the Office of Head Start will not approve the use of federal funding for training, technical assistance, or other program expenditures that promote or participate in equity, diversity, and inclusion (EDI) initiatives. This decision also applies to expenditures for services provided by contractors or vendors.

Acting Assistant Secretary Andrew Gradison further advised Head Start grant recipients to carefully review their funding applications, including the budget and budget justification narrative, training and technical assistance plans, program goals, and any other supplemental materials, before submitting their next application.

This announcement aligns with an executive order issued by President Trump, which directs federal agencies and departments to eliminate EDI initiatives.

Updates from the Judiciary 

Executive Orders Prohibiting Federal EDI Efforts Temporarily Reinstated 

The 4^th U.S. Circuit Court of Appeals is allowing the Trump administration to temporarily reinstate two executive orders that prohibited equity, diversity, and inclusion (EDI) efforts at federal agencies and government contractors as litigation continues.  

Ending Radical and Wasteful Government EDI Programs and Preferencing directs federal agencies to abolish all EDI programs within the federal government. Ending Illegal Discrimination and Restoring Merit-Based Opportunity requires recipients of federal grants and contracts to certify that they do not operate unlawful EDI programs, and it directs federal officials to “encourage” the private sector to end EDI. 

Judges within the 4^th Circuit maintained that the partial, nationwide preliminary injunction previously issued was premature but noted the administration might violate free speech and other rights if the orders are enforced too aggressively. The verdict does not determine the legality of the executive orders, and the lawsuit remains pending.  

Supreme Court Agrees to Determine the Constitutionality of Conversion Therapy Ban 

The Supreme Court agreed to hear a lawsuit questioning the constitutionality of Colorado’s ban on conversion therapy for minors. The American Academy of Child and Adolescent Psychiatry defines conversion therapies, or reparative therapies, as interventions that alter same-sex attractions or an individual’s gender expression to align with heterosexuality. 

The lawsuit was filed by Kaley Chiles, a licensed counselor and a practicing Christian, who maintained Colorado’s law violates her First Amendment rights to free speech and to freely exercise her religion.  

The U.S. Court of Appeals upheld Colorado’s law because it was enacted based on the evidence of conversion therapy’s harm. Rather than speech, the court determined the law sought to regulate the health care profession and therapists’ conduct.  

The Supreme Court’s hearings will likely be held in the fall, and its decision will likely be issued in the summer of 2026. The verdict will decide whether state and local governments can enforce laws banning conversion therapy for LGBTQ+ children.