AASCU Federal Highlights – March 2026

March Documents & resources

From the week of Mar. 12

ED Publishes Workforce Pell NPRM for Public Comment

On Monday, the U.S. Department of Education (ED) released a Notice of Proposed Rulemaking (NPRM) regarding Workforce Pell Grants. As a reminder, Workforce Pell Grants expanded the existing Pell Grant program to include short-term, high-quality education and training programs. These training programs must be either 8 to 14 weeks or 150 to 599 clock hours in length. The provisions establishing Workforce Pell were passed as a part of reconciliation (i.e., through H.R. 1, also known as the One Big Beautiful Bill Act or the Working Families Tax Cuts Act). This proposed rule reflects the consensus reached by the negotiated rulemaking committee. The deadline to submit comments is Wednesday, April 8.

GSA Releases DEI Related Federal Funding Proposal

On January 28, the General Services Administration (GSA) published a notice that requires any entity that receives “grants, cooperative agreements, and financial assistance such as loans, insurance, and direct appropriations” from the federal government to sign a certification agreement that aligns with the Administration’s anti-diversity, equity, and inclusion policies. Notably, as recipients of federal grants and contracts, this requirement applies to higher education institutions as well.

The GSA proposal aligns with the Administration’s broader agenda to eliminate DEI, as initiated by President Trump’s executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” and continued through ED’s Dear Colleague Letter from 2025 regarding discrimination on the basis of race, as well as guidance from the U.S. Department of Justice that urged federal grant recipients to assess their programs. While some past actions have been struck down by the courts as illegal, the Administration has continued its efforts in this area.

This notice is open for public comment. The deadline to submit comments is Monday, March 30.

Latest Federal Activity on College Sports Policies

On Friday, President Trump attended a roundtable on college sports, where he urged Congress to “deliver a permanent fix,” arguing that federal legislation must establish a fair name, image, and likeness (NIL) standard that replaces the current patchwork of state laws. He said, “If Congress does not take action fast, it could destroy college sports, and destroy the colleges that play these sports,” adding that “our goal is not to go back to the days where student athletes were never allowed to receive any compensation — although not the worst idea — but I think a lot of people would overrule me on that.” President Trump also floated the idea of an executive order on this topic.

Relatedly, Speaker of the House Mike Johnson (R-LA) said he will put the Student Compensation and Opportunity through Rights and Endorsements (SCORE) Act back on the House floor for consideration and that the bill is “on the verge of passage.” This bill seeks to “protect the name, image, and likeness rights of student athletes and to promote fair competition with respect to intercollegiate athletics.” In opposition, the Chair of the Senate Commerce Committee, Ted Cruz (R-TX), said the SCORE Act cannot pass the Senate and that he is working on a bipartisan alternative to the bill. AASCU will continue to monitor for updates and report on further developments.

FAFSA Processing Updates

On Monday, ED announced upcoming updates to Federal Student Aid systems and the Free Application for Federal Student Aid (FAFSA) processing experience to implement provisions from H.R. 1. Beginning April 26, 2026, system changes to the FAFSA Processing System, National Student Loan Database System, and Common Origination and Disbursement platform will support program updates that take effect July 1, 2026. These updates include Workforce Pell grants for students enrolled in approved workforce training programs and incorporating new loan limits, including a lifetime borrowing cap, limits on parent Direct PLUS loans, and the elimination of Direct PLUS loan eligibility for graduate and professional students. ED noted that the updates are intended to help institutions and partners prepare their systems for the upcoming policy changes while formal rulemaking on several provisions continues.

State Department Report on Student Visas

Last Friday, the U.S. Department of State released data showing a significant decline in student visa issuances during the key summer months leading up to the fall 2025 semester. According to an analysis of the data by Inside Higher Ed, the U.S. issued 186,160 student visas between June and August 2025, which is more than 100,000 fewer than the previous summer and a 35.6% decline overall. The decrease followed a temporary pause in visa interviews and increased screening requirements, which created application backlogs and raised concerns among higher education leaders about potential impacts on international enrollment and the broader U.S. higher education sector.

IES Director Sends Report Outlining Reforms to Secretary of Education

On February 28, Dr. Amber Northern, an ED Senior Advisor focused on issues related to the Institute of Education Sciences (IES), sent recommendations to ED Secretary Linda McMahon on reforming ED’s research arm. The report recommends modernizing federal postsecondary data collections by retaining key datasets administered by the National Center for Education Statistics (NCES) while improving coordination across data systems, standardizing definitions, and accelerating public access to data to better inform policy and student success efforts. The report also calls for IES-funded research to be more informed by state needs and for IES grantees to disseminate research findings more purposefully. See the full report.

GAO Report on Federal Student Loans and Servicer Oversight

Recently, the Government Accountability Office (GAO) released a report titled “Federal Student Loans: Education Needs to Address Gaps in Servicer Oversight.” Key findings from the report include that ED stopped assessing student loan servicers on key performance metrics, such as record accuracy and call quality, in February 2025 due to staffing shortages. As a result, GAO found that ED lacks assurance that servicers are maintaining accurate borrower records and providing reliable customer service, which could lead to borrowers being billed incorrect amounts or placed in the wrong repayment status. Education and Workforce Committee Ranking Member Bobby Scott (D-VA) came out with a related press release, stating, “ED, in its oversight of the $1.6 billion student loan portfolio, is required by law to ensure that student loan servicers provide borrowers with accurate information about their loans. When they do not, borrowers can either overpay or be placed in the wrong student loan repayment program. ED’s refusal to conduct oversight of student loan servicers is a dereliction of duty.” Ranking Member Scott was one of the requestors of this report.

Democrat Senators Call for GAO Investigation on ED Program Transfers to Other Agencies

U.S. Senators Elizabeth Warren (D-MA), Bernie Sanders (I-VT), Patty Murray (D-WA), and Tammy Baldwin (D-WI) requested that the GAO open an investigation into ED’s transfer of grant programs to agencies such as the U.S. Department of Labor (DOL). The concern expressed by the senators stems from the Trump Administration’s use of Interagency Agreements (IAAs) to transfer the administration and operation of ED programs to agencies such as DOL. The senators wrote, “We are deeply concerned that the administration’s decisions to [transfer] grant programs in this manner delayed crucial funding that millions of students and schools rely on, created administrative inefficiencies, increased the cost of program administration, and compromised the quality of technical assistance provided to states and grantees.” The letter expressly asks GAO to examine the costs associated with these transfers and how they affect states’ ability to draw down career and technical education and adult education funds.

State Attorneys General Sue to Stop New IPEDS Admissions Data Collection

This week, Attorneys General from several states sued to stop the collection of new Integrated Postsecondary Education Data System (IPEDS) admissions data from being reported to ED. The data collection in question is the recently required Admissions and Consumer Transparency Supplement (ACTS) Survey as a part of the data collection and reporting that institutions must complete under IPEDS. With the ACTS survey information imminently due, the Attorneys General are asserting that it is an unlawful demand by the Trump Administration. AASCU will continue to monitor and keep you updated on the status of the lawsuit.

From the week of Mar. 26

ED Issues SIP Designation Process Notice Without MSI Criteria

This week, the U.S. Department of Education (ED) issued its annual notice on the process that is used to designate institutions as eligible for the Strengthening Institutions Program (SIP) and other HEA programs. In past years, this notice also announced the process for determining eligibility and related matters for Minority-Serving Institutions (MSIs) programs (see the Administration’s 2025 notice), but the notice this week did not include any mention of MSI programs.

Inside Higher Ed reported on the views of different advocates on what this might mean, with most expressing concern that this was a sign that ED would not be allocating MSI funding again this year and that the agency may reprogram the funds into a larger SIP competition. Congress structured institutional aid funding under the Education Appropriations bill that passed in February to allow ED to fund the MSI programs as has been done in the past, but also to permit reprogramming of MSI funding, excluding funding for Tribal institutions and Historically Black Colleges and Universities, into a larger SIP grant.

This was done out of concern that ED would not fund most MSI programs this year. As part of the Inside Higher Ed reporting, Ellen Keast, a spokesperson for ED, is described as not confirming or denying such reprogramming. This latest notice comes after ED announced last year that they would not be awarding discretionary funds to MSIs, and the agency also adopted a DOJ interpretation that MSI programs are unconstitutional. AASCU will continue to monitor and report on these developments.

AASCU Signs Letter Regarding GSA Proposal on Federal Funds and DEI

On Monday, AASCU, alongside other higher education groups, sent a letter to the General Services Administration (GSA) regarding Information Collection 3090-0290, System for Award Management Registration Requirements for Financial Assistance Recipients. This notice requires any entity that receives “grants, cooperative agreements, and financial assistance such as loans, insurance, and direct appropriations” from the federal government — which includes higher education institutions — to sign a certification agreement that aligns with the Administration’s anti-diversity, equity, and inclusion policies.

The letter raises three main concerns:

1. Requiring recipients of federal funds to certify they comply with recommended best practices included in the U.S. Department of Justice (DOJ) and other sub-regulatory guidance effectively turns ‘non-binding suggestions’ into mandatory requirements for the receipt of federal funds;
2. The proposed certification goes beyond settled law, requiring endorsement of legal interpretations that are the subject of current federal litigation and have not yet been resolved by the courts; and
3. Colleges and universities are subject to many different state and local non-discrimination laws, which federal guidance does not supersede.

Read the full letter.

Judge Extends Deadline for Universities in Plaintiff States to Submit IPEDS Data

On Tuesday, a federal judge again extended the deadline for institutions in the 17 plaintiff states to submit admissions data from the Integrated Postsecondary Education Data System (IPEDS) Admissions and Consumer Transparency Supplement Survey. As a reminder, ED originally required colleges and universities to report several years of detailed applicant, admissions, and enrollment data by March 18. AASCU reported last week that this deadline was extended to March 25, and this week, the deadline was extended once again to April 6. Notably, this ruling does not apply nationwide but rather only to institutions located in the 17 plaintiff states.

HELP Committee Chairman Cassidy Seeks Input on College Athletics

U.S. Senate Health, Education, Labor and Pensions Committee Chairman Bill Cassidy (R-LA), following a roundtable on college sports, recently issued a request for information (RFI) on stabilizing programs and preserving opportunities for athletes. The RFI outlines that college athletics involves over half a million student-athletes annually, allowing the opportunity to compete and to learn leadership skills. The RFI further states that the rules governing college athletics are in flux and that policymakers should promote the well-being of and opportunity for college athletes. The RFI seeks feedback on several questions in the categories of compensation and benefits, protecting paid student-athletes, eligibility and academic experience, and student athlete status. Responses are requested by April 10, 2026, to opportunitiesforathletes@help.senate.gov.

House Committee Holds Hearing on National Security and Foreign Threats at Colleges

Earlier today, the U.S. House Committee on Education and Workforce held a hearing focused on the threat of foreign espionage and intellectual and other property theft by foreign interests at U.S institutions of higher education. Chairman Tim Walberg (R-MI) opened the hearing by recognizing the leading role that U.S. universities play, but expressed concern that the Chinese Communist Party and other foreign interests pose dangers to the U.S. higher education system. He specifically listed incidents at the University of Michigan and Stanford and highlighted that the House had previously passed the DETERRENT Act, legislation that would require additional reporting on foreign gifts to and contracts with U.S. schools. Rep. Suzanne Bonamici (D-OR) gave an opening statement for the Minority, stating that the biggest threat to students today is not foreign espionage, but rather the attacks from the Trump Administration on higher education and student borrowers. Rep. Bonamici objected to the Committee’s focus on the topic of the hearing and instead urged the Committee to address efforts by the Administration to dismantle ED.

AAMC Flags NIH Behind on Obligating Research Funding

This week, the Association of American Medical Colleges (AAMC) reported on its tracking on obligations of grant and contract funds by the National Institutes of Health (NIH). AAMC reported that NIH has only obligated approximately 15% of the estimated $38 billion in funding around halfway through the current federal FY. The $5.8 billion obligated by NIH as of last week compared to $9 billion obligated in the final FY of the Biden Administration. An obligation by NIH is when the agency notifies an institution that funding is available to the institution. These findings by AAMC mirror a similar analysis by the Association of American Universities through the end of February. Last year, the NIH obligated over half of its research funds in the final three months of the FY. If NIH continues this obligation pace, it could have an impact on institutional budgets and jeopardize staff salaries. AASCU will continue to monitor and report on the matter.