AASCU Federal Highlights – November 2025

From the week of Nov. 6

Government Shutdown Continues

This week, the Federal government remains in a shutdown after Congress failed to pass a continuing resolution to fund operations for fiscal year 2026. However, as of late, there have been increased discussions among Democrat and Republican rank-and-file members on finding a way to extend the continuing resolution date past November 21 (and possibly into the new year), starting the process of passing appropriations bills, and creating a legislative path to consider an Affordable Care Act subsidy extension (one of the main objectives of Democrat Members). The Senate is scheduled to go on a one-week recess next week, so there is pressure for the chamber to vote on a funding agreement before the end of the week or potentially over the weekend. AASCU will continue to monitor and share developments.

Update on RISE Committee Negotiated Rulemaking

This week, the U.S. Department of Education (ED) held its second round of negotiated rulemaking sessions on the student loan provisions in H.R. 1, the One Big Beautiful Bill Act. As a reminder, this is the final round of sessions, at the end of which the negotiators will either reach consensus or not. The issue of defining professional programs continues to be a major focus, with Under Secretary Nicholas Kent stating that “it is not lost on him or the Administration that the issue of defining professional students is one of the most interesting and contentious parts of the rulemaking.”

Yesterday, Under Secretary Kent offered a proposal that would require professional programs to be at the doctoral level and share Classification of Instructional Programs (CIP) codes with programs presently listed in regulation as professional to qualify for the higher professional loan limit amount. Today, discussions of professional programs have continued, with ED sharing the impact of the Department’s proposed definition of professional student on enrollment and loan disbursement for the affected programs. AASCU will continue to monitor whether the negotiators reach a consensus.

Senate HELP Hearing on College Cost and Value Transparency

Earlier today, the Senate Health, Education, Labor, and Pensions (HELP) Committee held a hearing titled, “Reforming Financial Transparency in Higher Education.” This hearing aimed to identify ways to increase financial transparency in higher education, enabling families to have better information and ultimately, students to have greater access to postsecondary education.

In his opening statement, Chair Bill Cassidy (R-LA) emphasized the importance of both college cost and value transparency, highlighting his College Transparency Act (CTA). The bipartisan bill would make information available on cost, enrollment, retention, completion, and post-college earnings of a particular university or program of study. Cassidy further expressed support for President Trump’s Compact for Higher Education, which would require colleges to report graduates’ earnings. Senator Kaine (D-VA) agreed that transparency is critical but cautioned that it alone cannot address the high costs of higher education for students and families.

During the hearing, most of the discussion focused on enhancing the College Scorecard, creating consistent definitions for student aid, and providing clearer and earlier cost estimates. Several of the witnesses argued that improving access to necessary services and funding is crucial, and that these efforts should be tied to transparency. AASCU will continue to keep you updated on the status of the CTA, as well as any federal developments related to college cost transparency.

SNAP Impacts on College Students

This afternoon, a Federal judge in Rhode Island ruled that the Trump administration must make full November Supplemental Nutrition Assistance Program (SNAP) payments to tens of millions of beneficiaries. This comes just days after the Trump Administration moved to use emergency reserves to issue partial SNAP benefits during the government shutdown, following the same federal judge’s previous order. Per the U.S. Department of Agriculture, the emergency funding available would have only covered 65% of the current benefits for eligible households.

College students are among those affected, prompting campuses across the country to expand food programs, according to Inside Higher Ed. Some colleges have started their annual food drives early, while others have increased free meals and provided grocery and farmers’ market vouchers. Advocates warn that even with these efforts, stretched campus and community resources may not be enough to meet students’ basic needs, putting their academic progress at risk.

AASCU is gathering stories on the impacts of delayed SNAP funding to students and campuses. If your institution’s students are experiencing difficulties in receiving benefits, please contact us. You may also find helpful toolkits, guides, and resources for campuses and students on Swipe Out Hunger’s website.

Lawsuits Filed Against PSLF Rule

Last Friday, ED officially published its final rule on Public Service Loan Forgiveness (PSLF) in the Federal Register. Shortly after, on Monday, two lawsuits were filed challenging the regulation. One lawsuit was filed by the National Council of Nonprofits, joined by cities, labor unions, and nonprofit organizations, asserting that the rule violates the Higher Education Act and the First Amendment. A second lawsuit was filed by Massachusetts, New York, and 20 other states, raising similar claims. Both suits contend that the new rule unlawfully alters PSLF eligibility and could allow future administrations to use the program for political purposes. The rule is scheduled to take effect on July 1, 2026.

From the week of Nov. 20

ED Announces Six New Interagency Agreements, Sending Programs to Other Federal Agencies

On Tuesday, the U.S. Department of Education (ED) announced six new interagency agreements (IAAs) with four agencies: the U.S. Department of Labor, the U.S. Department of the Interior, the U.S. Department of Health and Human Services, and the U.S. Department of State. These IAAs aim to “break up the federal education bureaucracy, ensure efficient delivery of funded programs, activities, and move closer to fulfilling the President’s promise to return education to the states.”

These IAAs will shift several programs to new agencies. Namely, Office of Elementary and Secondary Education and the Office of Postsecondary Education (OPE) programs will move to the U.S. Department of Labor (DOL); Office of Indian Education programs to the U.S. Department of Interior; campus child care access and foreign medical school accreditation programs to the U.S. Department of Health and Human Services; and international education and foreign language programs to the U.S. State Department.

Regarding the transfer of OPE programs to DOL through the Postsecondary Education Partnership (fact sheet), the following OPE programs will be impacted:

• TRIO
• Upward Bound
• Upward Bound Math and Science
• Veterans Upward Bound
• Talent Search
• McNair Scholars Program
• Student Support Services Program
• Educational Opportunity Centers
• Training Program for Federal TRIO Programs
• Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP)
• Graduate Assistance in Areas of National Need (GAANN)
• Augustus F. Hawkins Center of Excellence
• Title III Part A Strengthening Institutions Program
• Title III Part B Strengthening Historically Black Colleges and Universities Program
• Master’s Degree Programs at Historically Black Colleges and Universities Program
• Strengthening Historically Black Graduate Institutions (HBGI)
• Howard University
• Higher Education Emergency Relief Fund
• Transition and Postsecondary Programs for Students with Intellectual Disabilities (TPSID)
• Transition Programs for Students with Intellectual Disabilities Coordinating Center (TPSID-CC)
• Fund for the Improvement of Postsecondary Education (FIPSE)
• Higher Education Congressionally Funded Community Projects Program

Public officials have already spoken out on these IAAs. There remains some division among education-leading Republicans, with House Education and Workforce Chair Tim Walberg (R-MI) stating that this move prioritizes students over bureaucracy, while others, such as Committee Subcommittee Chair Rep. Kevin Kiley (R-CA), caution that the reorganization could be effective only if it safeguards core services.

House Appropriations Labor, Health and Human Services, Education, and Related Agencies Subcommittee Chair Robert Aderholt (R-AL) stated that “If you’re going to completely try to do away with the Department of Education, I’d say yes, they’d need an act of Congress;” however, the temporary move is more of a “gray area.”

Finally, former U.S. Secretary of Education Margaret Spellings argued the plan fundamentally misses the mark, saying that “moving programs from one department to another does not actually eliminate the Federal bureaucracy, and it may make the system harder for students, teachers, and families to navigate and get the support they need.”

Trump Administration Holds Campus Compact Roundtable

On Wednesday, the Trump Administration hosted a roundtable with college leaders to discuss its campus compact. As a reminder, this compact offers universities increased access to Federal funding and reduced regulatory oversight in exchange for implementing a series of actions. These include a five-year tuition freeze, limits on international student enrollment, alignment with the Administration’s stance on gender, protections for conservative speech, and mandatory free tuition in hard sciences at institutions whose endowments exceed $2 million per undergraduate student.

U.S. Secretary of Education Linda McMahon and Under Secretary Nicholas Kent led the session, which included leaders from community colleges, state universities, and advocacy groups. The discussion focused on reducing low-value programs, promoting affordability and transparency, and seeking broader engagement across institutions, including community colleges.

DHS Announces New Student Visa Fraud Hub

The U.S. Department of Homeland Security (DHS) launched a new “fraud hub” on Tuesday to help colleges identify student visa misuse. Created with ICE Homeland Security Investigations, the initiative includes a 20-minute training video that outlines concerns such as students not reporting to campus, misuse of practical training programs, forged documents, and attempts to access sensitive technology. DHS said the effort is intended to strengthen document review and verification practices and “help prevent foreign students from exploiting America’s education system to the detriment of American students.”

Lucas Appointed as Acting FSA Head

ED recently announced that Richard Lucas, a longtime Office of Federal Student Aid (FSA) veteran who previously served as FSA’s Chief Financial Officer, will return to lead the Office as Acting Chief Operating Officer. In the past, Lucas has held multiple roles at FSA and within the Department, including auditor, legislative liaison, criminal investigator, and senior financial management official. In a statement, he said, “It is an honor to re-join the Federal Student Aid team,” adding that he is eager to support reforms grounded in “accountability, transparency, and results.”

Rep. Adelita Grijalva Appointed to House Education and Workforce Committee

On Tuesday, newly sworn-in Rep. Adelita Grijalva (D-AZ) was appointed to the House Education and Workforce Committee. Grijalva won a special election to fill the seat of her late father, former Rep. Raúl Grijalva, who also served on the Committee. Before coming to Congress, she spent about 20 years on the governing board of the Tucson Unified School District.

Sec. McMahon Pens Op-ed on Government Shutdown

On Sunday, Secretary of Education Linda McMahon argued that the recent 40-day government shutdown showed ED’s limited impact on daily school operations, reinforcing her push to wind down the agency. In a USA Today op-ed, she cited the transfer of Federal workforce development programs to DOL as an example of how ED functions could be shifted, while assuring that core responsibilities like funding for low-income students and students with disabilities as well as civil rights enforcement will continue. “These critical functions are required by law and will continue – even if the building where they are housed does not have ‘Education’ on the door,” she wrote.

House Education and Workforce Holds Hearing on College Costs

On Tuesday, the House Education and the Workforce Committee held a hearing to examine costs. Members and the witness discussed college affordability and completion, wraparound services for students, and modernizing higher education through innovation and artificial intelligence. As a reminder, the Senate Health, Education, Labor, and Pensions Committee held a hearing on the same topic two weeks ago, indicating an increase in bipartisan, bicameral attention on this matter.