Runaway College Spending Meets the Working Families Tax Cuts

Education and Workforce MarkupsHouse Education and Workforce Subcommittee on Higher Education and Workforce Development · 2026-02-04 · 119th Congress
The House Education and Workforce Subcommittee on Higher Education and Workforce Development held this hearing to examine rising college costs and the effects of the recently passed reconciliation law (the "Working Families Tax Cut," also called HR1), which simplified student loan repayment plans, capped graduate and professional student borrowing, and tied federal loan eligibility to post-graduate earnings outcomes. Begins at 0:06:36
Transcript
Highlights

Title

Republicans and Democrats spar over college costs and the Working Families Tax Cut

Purpose

The House Education and Workforce Subcommittee on Higher Education and Workforce Development held this hearing to examine rising college costs and the effects of the recently passed reconciliation law (the "Working Families Tax Cut," also called HR1), which simplified student loan repayment plans, capped graduate and professional student borrowing, and tied federal loan eligibility to post-graduate earnings outcomes. Republicans highlighted state-level reforms in Utah and Florida as models for accountability and affordability, while Democrats argued the law's Medicaid/SNAP cuts and elimination of income-driven repayment options will drive up costs and defaults. Witnesses included Dr. Beth Akers (AEI), Commissioner Geoffrey Landward (Utah), Dr. Julie Morgan (Century Foundation), and Chancellor Raymond Rodrigues (Florida). Begins at0:06:36

Who spoke

Chairman Bob Owens0:06:36: Opened by noting tuition has risen five-fold since 1970 and that colleges spend more on administration than instruction0:06:58; praised the Working Families Tax Cut's simplified repayment plans and graduate loan caps0:07:27; closed by framing the debate as capitalism versus government control of higher education2:14:22.

Ranking Member Alma Adams (D-NC)0:09:17: Argued college remains the surest path to mobility but disinvestment, not administrative bloat, drives costs0:10:35; cited that three in five students face food or housing insecurity0:12:50; said HR1 narrows pathways to college0:14:27.

Dr. Beth Akers, AEI0:16:55: Said outcomes vary enormously across programs and praised HR1's graduate loan caps as consumer protection0:18:15; urged more focus on price and transparency in future reforms0:18:43; later cited economists finding unconstrained graduate credit drove up program costs0:55:43.

Mr. Geoffrey Landward, Commissioner, Utah System of Higher Education0:19:56: Described Utah's system redesign to reduce duplication0:21:24 and required public hearings justifying every tuition increase0:21:51; said $60 million was reallocated statewide to high-value programs0:22:17; Utah has the lowest average student loan debt in the nation0:22:43.

Dr. Julie Morgan, President, The Century Foundation0:23:28: Said total federal student debt is nearly $1.7 trillion with the average borrower owing under $40,000 and one in four borrowers delinquent0:23:55; said HR1's elimination of income-driven repayment (SAVE) will cost borrowers $2,800–$4,800/year more0:26:19; warned private lenders are positioned to profit from new borrowing caps0:26:48.

Mr. Raymond Rodrigues, Chancellor, State University System of Florida0:27:59: Cited a Pew survey finding 7 in 10 Americans think higher ed is on the wrong track0:28:27; described Florida's tuition freeze since 2013 and 80% of resident undergrads graduating with no loans0:30:19; credited performance-based funding for a 90% academic progress rate and 76% six-year graduation rate0:29:25.

Rep. Jimmy Gomez (D-CA)0:47:08: Pressed Dr. Morgan on for-profit college pricing and outcomes, drawing her statement that for-profits compete for federal aid dollars, not students, and warned of a coming default crisis0:47:440:51:40.

Rep. (NC, name not given in transcript)0:52:32: Questioned Dr. Morgan on HBCU underfunding, noting decades of unequal treatment despite legal settlements0:39:200:40:00.

Chairman Tim Walberg (Full Committee)0:41:33: Praised Utah and Florida for accountability-based reform over "throwing money" at higher ed0:41:33; asked Rodrigues about administrative growth, who said Florida's administration grew just 2% over 10 years0:45:42.

Rep. Joe Courtney (D-CT)0:58:09: Criticized the Department of Education's removal of occupations like nurse practitioners and physician assistants from "professional" loan status, saying banks lobbied for the caps0:58:34; entered a letter from the American Association of Nurse Anesthesiology into the record1:02:33.

Rep. Randy Fine (R-FL)1:03:34: Highlighted Florida's free tuition for students with IB/AP/Cambridge diplomas1:04:22 and asked Rodrigues about HB 741, Florida's anti-Semitism definition law, which he said has faced no successful court challenges1:08:16.

Rep. (AZ, Galva)1:08:49: Advocated for TRIO programs and Pell Grant investment, noting 74% of Pell recipients come from families earning under $40,0001:11:19.

Rep. (Guam, Milan)1:14:39: Cited data showing college tuition up 200% from 2000–2025, more than housing or medical care1:15:02; raised the added burden of travel costs for territory students1:17:00.

Rep. Suzanne Bonamici (D-OR)1:20:15: Noted state/local funding for public colleges fell from 79% to 57% of revenue since 19801:20:49; criticized HR1 while noting the bill gave ICE nearly $75 billion and CBP nearly $65 billion1:21:43.

Rep. Glenn Grothman (R-WI)1:25:57: Argued Workforce Pell duplicates private-sector-funded trade training like trucking and welding1:26:26; asked how to steer students away from low-value degrees toward trades1:27:17.

Rep. (GA, McBath)1:31:38: Argued HR1 shifts costs to families without lowering prices and noted all but two House Republicans voted to cut Pell Grant eligibility for part-time students1:33:22.

Rep. Mark Alford / "Dr. Honor" (R-MO)1:36:10: Promoted the Student Financial Clarity Act for price transparency and asked Akers about monthly loan disclosures1:37:44; discussed Utah's post-tenure review system with Landward1:39:59.

Rep. Doug LaMalfa / "Mr. Dalier" (D-CA)1:41:31: Discussed generational affordability pressures with Dr. Morgan, citing Elizabeth Warren's "Two-Income Trap" framework1:44:04.

Rep. Kevin Kiley / "Mr. Collie" (R-CA)1:46:55: Framed the hearing as part of a broader reckoning on campus anti-Semitism and free speech alongside affordability reforms1:47:16; asked Landward and Rodrigues to summarize their reform philosophies1:49:30.

Rep. (MN, Alman)1:52:16: Questioned Morgan, eliciting confirmation that HR1 doesn't require schools to lower costs, doesn't increase Pell funding, and doesn't expand federal loan access1:53:141:53:351:53:44.

Rep. Michael Baumgartner / "Mr. Garner" (R-WA)1:56:24: Described cutting Washington State tuition by 15–20% and capping future growth at inflation plus population as a bipartisan model1:59:03.

Rep. (PA, McKenzie)2:01:49: Asked Landward and Rodrigues for practical cost-reduction steps; Landward cited Utah's concurrent enrollment saving students over $100 million in one year2:03:28.

Ranking Member/Rep. Jennifer McClellan / "Virginia ranking member" (D-VA)2:07:15: Questioned witnesses on whether liberal arts education has non-monetizable value (all agreed yes)2:07:322:07:59 and on state disinvestment's effect on tuition2:11:34.

Rep. Alma Adams (D-NC), closing2:12:28: Closed by calling college "a public good," not just personal investment, and urged reinvestment in students2:12:58.

Key moments

Landward said Utah reallocated $60 million statewide toward high-value programs like healthcare, engineering, and computer science while cutting administrative costs0:22:17.

Morgan testified total federal student debt stands at nearly $1.7 trillion, with one in four borrowers currently delinquent0:23:55.

Rodrigues said Florida cut higher education appropriations 43% during the Great Recession (2008–2013) — nearly double the national average — while raising tuition 86%, the highest in the country0:28:57; after 2013 Florida adopted performance-based funding and instate tuition has been frozen since0:29:250:30:19.

Morgan said SoFi told investors it would be "very happy to step in for the government" on student lending if federal caps take effect, part of a broader private-lender lobbying push she said used paid Politico ads to promote loan caps0:26:480:59:59.

Under direct questioning from a Minnesota member, Morgan confirmed HR1 does not require schools to lower costs, does not increase Pell or grant aid, and does not expand federal loan access — leaving families to either forgo college or turn to private loans1:53:14.

Rodrigues said Florida's shift to a four-year graduation metric (from six-year) cut costs roughly in half for students who graduate on time, after the state found barriers like insufficient course sections and excess major requirements2:04:40.

Rep. Bonamichi noted HR1 allocated nearly $75 billion to ICE and $65 billion to CBP, arguing that $140 billion could instead have funded education and economic development1:22:14.

Akers cited AEI economist Preston Cooper's finding that administrative growth is concentrated in the top quintile of institutions (161 administrators per 10,000 students) versus a national median of 70, and 62 in Florida1:30:20.

Courtney said the Department of Education's November reclassification of professions (excluding nurse practitioners, PAs, nurse anesthetists) from "professional" loan eligibility will push borrowers into costlier private loans, citing lobbying by private lenders for the caps0:58:340:59:11.

Landward said Utah's concurrent K-12 enrollment program, charging $5 per credit hour, saved students over $100 million in tuition in a single year2:03:28.

Metadata

CommitteeHouse Education and Workforce Subcommittee on Higher Education and Workforce Development
Chamber / CongressHouse · 119th Congress
Date2026-02-04
TypeHearing
Witnesses
Dr. Beth Akers — Senior Fellow, American Enterprise Institute
Mr. Geoffrey Landward — Commissioner, Utah System of Higher Education
Dr. Julie Morgan — President, The Century Foundation
Mr. Raymond Rodrigues — Chancellor, State University System of Florida
Dr. Beth Akers — Senior Fellow, American Enterprise Institute
Mr. Raymond Rodrigues — Chancellor, State University System of Florida
Mr. Geoffrey Landward — Commissioner, Utah System of Higher Education
Dr. Julie Morgan — President, The Century Foundation
Videoyoutube
Transcript385 caption blocks · 22,678 words · 2:18:32 runtime
EventCongress.gov 118922