AASCU Federal Highlights – August 2026

From the week of Aug. 6

 Senate Appropriators Release Continuing Resolution

On Sunday, Senate appropriators released the text of a continuing resolution (CR) to fund federal agencies through December 11, with some exceptions. In contrast to the House version, the Senate proposal includes language to block an Office of Management and Budget (OMB) rewrite of a rule related to Uniform Guidance, which governs federal grants. Notably, this rewrite would give political appointees the authority to approve grants, limit the impact of peer review, and require preapproval for the use of federal grant funds for conference attendance and membership in organizations.

While the bill has not yet been scheduled for a final vote, the Senate took an initial procedural vote early this week. The bill is expected to pass before the August recess, likely by the end of the week. As a reminder, the House has approved a separate CR that would keep the government funded through early December; however, the measure does not include language postponing implementation of the OMB rule. The House and Senate will need to reach an agreement on these provisions before the president may sign the bill into law.

ED Sends Letter to Universities Calling for Institutional Changes

On Monday, the U.S. Department of Education (ED) sent a call to action letter from Secretary Linda McMahon to university presidents and governing boards, urging them to publicly commit to a series of institutional changes. The letter, which was also issued publicly, calls on institutions to address the following areas:

1. Transparency and merit in admissions
2. Free speech and open inquiry
3. Intellectual pluralism and academic vitality
4. Affordability, value, and student outcomes
5. Academic standards and rigor in the age of artificial intelligence
6. Safeguarding research integrity from malign foreign influence and
7. Prioritizing American interests

The Secretary also requested that every postsecondary institution issue a clear public statement by the end of 2026, outlining its commitment to implementing reforms that “rebuild public confidence and trust.” While not a formal directive, critics suggest that this call to action bears similarities to an earlier letter, the Compact for Academic Excellence in Higher Education, issued in October 2025. Unlike that compact agreement issued by the Department last year, Secretary McMahon’s call to action does not specify any consequences for noncompliance.

Campus leaders will have the remainder of the year to decide how to respond. Regional public universities (RPUs), intrinsically guided by many of the principles listed above, are among the strongest engines of socio-economic opportunity. Our sector consistently delivers some of the highest value for students, communities, employers, and taxpayers. With this in mind, AASCU is currently gathering additional information about the request and will provide guidance, as appropriate, to inform your response or action. Should you have any questions regarding this matter, please reach out to us at govrel@aascu.org.

Proposed Accreditation Rule Advances Through Clearance Process

This week, OMB began its regulatory review of an ED rule that would rewrite accreditation regulations. In the regulatory process, this step takes place immediately before an agency publishes a proposed rule for public comment. This accreditation rule is the result of the Accreditation, Innovation, and Modernization (AIM) Committee’s consensus reached after ED’s negotiated rulemaking sessions earlier this year.

As previously reported, the consensus would make it easier for new accreditors to gain recognition from ED, facilitate the transfer of credit, focus accreditation decisions on graduate earnings, and prioritize policies on intellectual diversity. OMB’s review of this rule likely indicates that a formal notice of proposed rulemaking for public comment could be published in the coming weeks. AASCU will keep you updated when the comment period begins.

Revised College Sports Bill Released in the Senate

On Tuesday, the Senate Committee on Commerce, Science, and Transportation released a new version of the Protect College Sports Act, legislation to regulate college sports and revenue in the age of name, image, and likeness (NIL). The updated version has won support from the Southeastern Conference (SEC) and the Big Ten Conference, but this bill still does not include provisions governing whether college athletes should be classified as employees. Chairman Ted Cruz (R-TX) has advocated for a vote by the full Senate before the August recess, and on Wednesday, Senate Majority Leader John Thune (R-SD) took an initial step to allow a vote on this legislation. Senator Thune’s move allows the bill to be debated by the full Senate as soon as Friday, but it remains unclear when a final vote will take place. AASCU will keep you updated on the status of the legislation.

Agency Officials Call on Congress to Support ED’s Interagency Agreements (IAAs)

Last week, a group of federal agency officials, including Secretary Linda McMahon, sent a letter to congressional leadership urging support for ED-related IAAs. Alongside Secretary McMahon, the letter was also signed by Acting Secretary of Labor Keith Sonderling, Secretary of Health and Human Services Robert F. Kennedy, Jr., Secretary of the Interior Doug Burgum, Secretary of State Marco Rubio, Secretary of the Treasury Scott Bessent, and Acting Attorney General Todd Blanche.

The letter addresses what it describes as “misconceptions” about the IAAs and outlines the administration’s rationale for the agreements. It also follows recent congressional consideration of bills on the IAAs in both chambers, where committees adopted differing legislative approaches. The House Education and Workforce Committee advanced legislation to transfer several ED responsibilities to other agencies, while the Senate Health, Education, Labor, and Pensions (HELP) Committee advanced legislation to prohibit the transfer of certain ED offices and programs, including programs housed under ED’s Office of Postsecondary Education. AASCU will keep you updated on the status of these bills and any additional administrative actions regarding IAAs.

Nursing Coalition Amended Complaint to ED’s Professional Degrees List

On Monday, a nursing coalition filed an amended complaint challenging ED’s criteria for determining which graduate programs qualify for higher federal loan caps. This filing follows their original lawsuit from May of this year, arguing that ED’s regulatory language unlawfully limited which programs would be considered professional degrees. The coalition’s amended complaint is a reaction to ED’s updated list of eligible programs from late June, alleging that ED’s latest guidance departs from congressional instructions.

First Workforce Pell Grant Program Approved

On Tuesday, ED approved the nation’s first Workforce Pell Grant program at Iowa Central Community College. Eligible students at this institution can now receive a Workforce Pell Grant for an Emergency Medical Technician Program. Established under H.R. 1, also known as the One Big Beautiful Bill Act, Workforce Pell extends Pell Grant eligibility to approved short-term programs (lasting 8 to 15 weeks), creating new pathways to workforce credentials and training. The final rule implementing Workforce Pell was published on May 18 and became effective on July 1, 2026.

Government Accountability Office (GAO) Issues Report on College Athletic Programs

On Wednesday, the GAO published a report on college athletics, requested by House Education and Workforce Committee Chairman Tim Walberg (R-MI) last year. The report found that most Division I and all Division II College Athletics Programs spent more than they generated in revenue during the 2023-24 academic year. To bridge this spending gap, most colleges reported supplementing athletics funding with other institutional resources, including investment income and student tuition and fees, which indirectly includes federal student aid. Chairman Walberg issued a statement following the publication, urging Congress to hold colleges accountable for how tuition dollars and federal student aid are used.

Report from GAO on Better Agency Communication with Loan Servicers

Today, the GAO published a report, requested by Former House Education and Workforce Committee Chairwoman Virginia Foxx (R-NC) and Senate Health, Education, Labor and Pensions Chairman Bill Cassidy (R-LA). The report found that ED’s communication with its contractors for federal student loans could be improved.

ED presently uses four contractors to provide servicing on changes sought by the agency regarding federal student loans. When ED seeks a change in how servicers operate, it issues a change order. The GAO found that some change orders involved extensive back-and-forth discussions between ED and the contractors. The GAO recommended that ED and servicers improve up-front communication to enhance the efficiency of change-order implementation. Chairman Walberg and Chairman Cassidy issued a joint statement following the report’s publication, supporting better coordination with servicers and increased accountability with the federal student loan program.

Senate Bill Introduced to Ban Legacy Admissions

Last week, a group of bipartisan senators reintroduced a bill to ban legacy admissions, entitled the Merit-Based Educational Reforms and Institutional Transparency (MERIT) Act. This legislation would amend the Higher Education Act to prevent colleges and universities from giving “preferential treatment” to applicants with relationships to alumni or donors. The MERIT Act was previously introduced in the Senate in 2023.