AASCU Federal Highlights – May 2026
A compilation of policy news shared in AASCU’s Weekly Federal Policy Update.
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May’s Lead Story
Challenges mount against ED’s RISE Rule
Legal and political challenges to the Department of Education’s new RISE rule grow as states and professional associations push back on new graduate and Parent PLUS loan caps established under H.R. 1. Recent developments include a multistate lawsuit, a second coalition-led legal challenge, and continued legislative efforts to expand program eligibility.
AASCU has endorsed Rep. Mike Lawler’s (R-NY) Professional Student Degree Act (H.R. 6718).
Read our issue summary.Other news and resources
May Documents & resources
From the week of May 14
Upcoming AIM Negotiated Rulemaking Sessions
Next week, the Accreditation, Innovation, and Modernization (AIM) Committee will meet for its second round of negotiated rulemaking on accreditation in higher education. The U.S. Department of Education (ED) has released an updated proposal for negotiators’ consideration that largely maintains the provisions of its initial draft regulations while adding new elements, such as a definition of academic freedom. Next week will focus on whether negotiators can persuade ED to agree to further changes in key areas, as well as determine whether consensus as a whole can be reached. The most up-to-date draft proposal from ED is available. All sessions are available for public viewing, and interested parties may register to stream next week’s sessions live. Past transcripts and recordings are also available on ED’s website. AASCU will listen in on next week’s sessions and report on any developments.
Sec. McMahon Testifies Before House Education and Workforce Committee
Today, U.S. Secretary of Education Linda McMahon testified before the House Education and Workforce Committee on ED’s fiscal year (FY) 2027 budget request. Topics pertaining to higher education discussed include ED’s request for $33 billion in Pell Grant funding, representing a $10.5 billion increase. In her written testimony, Sec. McMahon stated, “The Trump Administration is committed to maintaining access to Pell without cuts to the maximum award and looks forward to working with Congress to put the program on stable financial footing for this year and into the future.”
Sec. McMahon also highlighted ED’s efforts to simplify the Free Application for Federal Student Aid (FAFSA), noting that the updated form now cuts completion time from days to minutes and that this year’s FAFSA launch marked the earliest rollout in the program’s history. She additionally discussed ED’s new earnings indicator, designed to help students and families better understand projected outcomes from a college or university before taking on significant student loan debt.
Expected Reconsideration of the SCORE Act
The House Committee on Rules announced that it may meet next week to provide floor consideration of H.R. 4312, the SCORE Act. This announcement came as House Majority Leader Steve Scalise (R-LA) also stated that the bill will be considered on the House floor next week. As a reminder, the SCORE Act provides a framework for compensating student athletes for the use of their names, images, or likenesses (NIL). It was initially slated for consideration in December, but House Republican leadership pulled the bill from the floor schedule at the last minute due to a lack of support.
If the bill passes the Rules Committee on Monday, it could be voted on the floor as early as Wednesday or Thursday. While the official schedule for next week has not been released, the House also shortened its session days, raising questions about which bills will actually be considered. AASCU will continue to monitor and report on any major developments.
Anticipated Lawsuit on RISE Rule
As recently reported, ED has now released the final rule following the consensus of the Reimagining and Improving Student Education (RISE) Committee last fall. Since then, some higher education and advocacy groups have signaled possible legal challenges to the rule. As a reminder, it implements new graduate and professional student loan limits required under H.R. 1 (or OBBB, the “One Big Beautiful Bill” Act) and imposes new caps on Parent PLUS loans. Specifically, under the rule, students in 11 designated “professional” fields will qualify for up to $50,000 in federal student loans per year, with an aggregate limit of $200,000. Students in other graduate programs will be capped at $20,500 per year with a $100,000 aggregate limit. Parent PLUS loans will also now have annual and aggregate limits.
On this issue, AASCU has endorsed Rep. Mike Lawler’s (R-NY) Professional Student Degree Act (H.R. 6718), which seeks to broaden the federal definition of a “professional degree” by allowing 13 additional graduate programs, many among the most popular RPU graduate programs, to qualify for higher federal student-loan borrowing limits.
Additional groups representing excluded programs, particularly in healthcare and education, argue the changes could make graduate education less accessible and worsen existing workforce shortages. Several organizations have also suggested that ED’s interpretation exceeds congressional intent, and student advocates have criticized ED’s argument that the rule will reduce student debt, warning that students may instead rely more heavily on private loans to finance their education. AASCU will continue to monitor and report on legal and legislative updates following the release of this final rule.
GAO Report on FAFSA Simplification and Pell Grant Eligibility
On Monday, the U.S. Government Accountability Office (GAO) publicly released a report titled “FAFSA Simplification: Pell Grant Eligibility Changes after Simplified Aid Application,” examining how recent changes to the FAFSA and federal aid eligibility affected Pell Grant access for the 2024–25 academic year. The report found that approximately 9.9 million students were eligible for Pell Grants, an increase of about 570,000 students, or 6%, compared to the previous year. In addition, eligibility for the maximum Pell Grant award increased by 31%, with roughly 1.9 million more students qualifying for the full $7,395 award. The report also found that Pell Grant eligibility increased for many students with family members in college and for vulnerable student populations, including homeless and foster youth.
Court Action on Dismantling of ED
According to POLITICO, on Friday, a district court judge in Maryland denied the Trump Administration’s motion to dismiss a lawsuit challenging its efforts to dismantle ED, allowing the case to move forward. The lawsuit, filed by the NAACP, the National Education Association, and other education advocacy groups, argues that the Administration unlawfully attempted to weaken ED through mass layoffs, canceled grants and contracts, and a March 2025 executive order aimed at restructuring the agency. Plaintiffs contend these actions exceeded executive authority and interfered with Congress’s role in directing and funding ED’s responsibilities. AASCU will continue to report on the developments surrounding this case.
FY26 Teacher Quality Partnerships Competition Announced
On Monday, ED and the U.S. Department of Labor (DOL) announced the FY 2026 competitions for Teacher Quality Partnership (TQP) program. In its press release, ED states that the new TQP competition will focus on Sec. McMahon’s supplemental priorities of teacher preparation, evidence-based literacy, and meaningful learning opportunities for educators. This jointly issued grant competition is part of the Administration’s broader interagency agreement (IAA) between ED and DOL aimed at aligning education and workforce development programs.
Reps. Scott and Adams Call for FSA Oversight Hearing
Ranking Member of the House Education and Workforce Committee Bobby Scott (D-VA) and Ranking Member of the Subcommittee on Higher Education and Workforce Development Alma Adams (D-NC) called for an oversight hearing on the Office of Federal Student Aid (FSA). In their letter, they cited growing operational strain within FSA, stating that “the urgency of an oversight hearing is heightened by the reduction in force (RIF) of FSA employees, the growing backlog of unprocessed Income Driven Repayment Plan (IDR) applications, and the Department’s offloading of key responsibilities through IAAs.” They added, “The Department’s actions have rendered FSA poorly equipped to support the most vulnerable students and borrowers, especially as colleges prepare to disburse financial aid for the new academic year, and P.L. 119-121 changes go into effect on July 1.” AASCU will monitor the status of this request and the hearing schedule.
CRS Report on Student Consumer Information Transparency
On Tuesday, the Congressional Research Service (CRS) released a report providing an overview of federal requirements and ongoing policy debates related to student consumer information transparency in higher education. The report outlines how institutions disclose key data on costs, outcomes, and program performance, and summarizes recent federal efforts to improve the accessibility and consistency of that information for students and families. It also highlights continuing concerns among policymakers about whether current transparency tools effectively support informed college decision-making. The report concludes by sharing several legislative proposals introduced in the 119th Congress to improve the transparency of student consumer information in higher education.
From the week of May 21
Update on AIM Negotiated Rulemaking Session
This week, the U.S. Department of Education (ED) held its second session of the Accreditation, Innovation and Modernization (AIM) negotiated rulemaking. As a reminder, the AIM Committee’s agenda included the discussion of federal regulations on accreditor recognition, streamlining the process for institutions seeking to change accreditors, and placing greater emphasis on student outcomes and achievement. Key areas of debate included requirements for the transfer of credit, the role of accreditors in enforcing academic freedom and intellectual diversity, and the constraints that should govern trade associations’ relationships with their affiliated accreditors.
The Committee reached consensus, meaning that ED will move forward with developing a notice of proposed rulemaking (NPRM) for public comment based on the consensus agreement. AASCU will monitor and report on the publication of this NPRM, which ED said will be published and finalized before November 1, 2026, and will take effect by July 1, 2027.
ED Releases Final Workforce Pell Rule
On Monday, ED released the final Workforce Pell rule, developed through the Accountability in Higher Education and Access through Demand-Driven Workforce Pell (AHEAD) negotiated rulemaking committee. As a reminder, under the new Workforce Pell Grant Program, which was authorized under H.R. 1 (often referred to as the One Big Beautiful Bill Act or the Working Families Tax Cuts Act), qualifying students will be eligible to receive federal Pell Grants to enroll in short-term workforce training programs, with the amount of the grant adjusted based on the length of such program.
Programs approved by state governors and the secretary of education may range from as short as eight weeks to as long as fifteen weeks. ED is permitting early implementation of this authority beginning July 1, 2026, which would be the first day ED could, in theory, approve a program for this new authority. See additional details on the final rule.
Senate HELP Chair Cassidy Loses Primary Election
This past weekend, it was reported that Senate Health, Education, Labor, and Pensions (HELP) Chair Bill Cassidy (R-LA) lost his primary election. As a result, Cassidy will not serve in the next Congress, thus opening up the position of Senate HELP Committee Chair. There have been early discussions of Sen. Roger Marshall (R-KS) or Sen. Lisa Murkowski (R-AK) taking over as Republican leadership on the Committee. AASCU will continue to follow and provide updates on any leadership developments.
Republican Members Launch Probe into Nine Universities Regarding Foreign Influence Concerns
On Friday, Republican leaders in the House and Senate launched investigations into nine universities over concerns related to research security and institutional financial ties to China. In letters sent to the institutions, Senate HELP Committee Chair Cassidy, House Education and Workforce Committee Chair Tim Walberg (R-MI), House Select Committee on China Chair John Moolenaar (R-MI), and Sen. Jim Banks (R-IN) cited concerns regarding reported financial transactions disclosed through ED’s foreign funding portal and requested additional information about the universities’ foreign relationships and funding activities. The inquiries were directed to institutions including the Massachusetts Institute of Technology, the University of California, Berkeley, and the Georgia Institute of Technology, among others. See a full list of universities.
SCORE Act Pulled from House Agenda
Last week, AASCU reported that the SCORE Act may be reconsidered by the full House this week. As a reminder, the bill provides a framework for compensating student athletes for the use of their names, images, or likenesses (NIL). Ultimately, it was pulled from the House agenda again this week, amid criticism from members across the aisle.
In the Senate, discussions have begun on another version of a college athletics bill. At the head of the negotiating table is the chamber’s Commerce, Science, and Transportation Committee leadership, Chair Ted Cruz (R-TX) and Ranking Member Maria Cantwell (D-WA). It remains to be seen how senators will overcome their policy differences while developing a proposal that can pass the House and avoid the issues that sank prior efforts. While Cantwell made it clear that the Senate’s version will not be a companion bill, both senators expressed a strong desire to reach an agreement. AASCU will continue to monitor for future House action on this legislation or any similar Senate bill.
25 States Sue Over Grad Student Loan Limits
On Tuesday, a coalition of 25 states filed a lawsuit against ED, challenging new federal student loan caps for graduate and professional programs. Under the rule, students in 11 designated professional fields may borrow up to $50,000 annually, with an aggregate cap of $200,000, while students in other graduate programs are limited to $20,500 per year with an aggregate cap of $100,000. The lawsuit argues that ED’s exclusion of programs such as nursing and other healthcare professions is too narrow and inconsistent with congressional intent. As a result, the plaintiffs seek to block the rule (which stemmed from the passage of H.R. 1 last summer) before the new loan limits take effect on July 1, 2026.
Senate Rejects Resolution on Student Loan Forgiveness for Public Servants
This Wednesday, the Senate rejected a Congressional Review Act resolution that would have overturned the Trump Administration’s final rule modifying the Public Service Loan Forgiveness (PSLF) program. The final rule narrows employer eligibility by excluding organizations determined to have a “substantial illegal purpose.” Democratic lawmakers leading the resolution argued the standard is overly broad and could allow ED to make politically motivated determinations regarding borrower eligibility for loan forgiveness. The resolution did not receive Republican support and failed to advance in the Senate.
From the week of May 28
Senators Introduce Bipartisan Bill on College Sports
On Wednesday, Senate Commerce Committee Chair Ted Cruz (R-TX) and Ranking Member Maria Cantwell (D-WA) introduced the bipartisan “Protect College Sports Act.” This bill aims to create a national framework for college athletics and student-athlete compensation. It would establish Federal standards for name, image, and likeness (NIL) compensation, athlete transfers, and eligibility, while also imposing penalties for agents who improperly recruit or exploit student-athletes. Notably, the bill does not address whether student-athletes should be considered employees. The bill comes as House consideration of similar NIL legislation, which includes the SCORE Act, has stalled amid bipartisan disagreements. Lawmakers indicated the Senate Commerce Committee could consider the legislation as early as next month.
Second Major Lawsuit Against ED Following RISE Rule
Last week, a coalition representing professionals in nursing, counseling, public health, and education sued the U.S. Department of Education (ED) over its final RISE rule and new graduate student loan caps established under H.R. 1 (often referred to as the One Big Beautiful Bill Act or Working Families Tax Cuts Act). The lawsuit follows a separate legal challenge brought earlier this month by 25 Democratic-led states and Washington, D.C., which also argued the new loan limits exceed ED’s authority.
In this most recent lawsuit, the coalition contends that the rule unfairly limits access to Federal Direct Loans by narrowing the definition of “professional” degree programs eligible for higher borrowing caps. The plaintiffs also criticized ED for finalizing the rule despite receiving more than 80,000 public comments urging broader inclusion of professional programs. ED has not yet publicly responded to the lawsuit.
ED Notifies SAVE Borrowers of Transition Deadline for Repayment Plans
Last week, ED issued another round of notices to more than seven million borrowers enrolled in the Saving on a Valuable Education (SAVE) Plan regarding the upcoming requirement to transition into a different repayment plan. The notices follow the termination of the SAVE Plan after nearly two years of litigation and inform borrowers that loan servicers will begin sending official transition notices starting July 1. Borrowers will have 90 days from the date of their notice to select and apply for a new repayment option. According to ED, borrowers who do not voluntarily switch plans within the designated timeframe will be automatically placed into a standard repayment plan by their loan servicer.
House Dems Send Letter on Earnings Accountability Rule
Last week, 15 Democratic Members of the House Education and Workforce Committee sent a letter to ED Secretary Linda McMahon raising concerns about the Department’s proposed earnings accountability rule following the close of the public comment period.
The proposed rule would establish new earnings thresholds for academic programs based on graduate earnings outcomes, with programs at risk of losing Title IV eligibility if they fail to meet the benchmarks. While the lawmakers expressed support for some aspects of the proposal, they urged ED to strengthen student protections and questioned whether the rule’s new framework would be as effective as existing gainful employment and debt-to-earnings regulations. As a reminder, a final rule is expected in the coming weeks.
