AASCU Federal Highlights – April 2026
A compilation of policy news shared in AASCU’s Weekly Federal Policy Update.
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April’s Lead Story
Budget Reconciliation
Th budget reconciliation process continued throughout April. The latest updates indicate that higher education will not be addressed in a second reconciliation bill to address funding related to U.S. Immigration and Customs Enforcement (ICE) and U.S. Customs and Border Protection (CBP).
April 2 update. April 23 update. April 30 update.
Other news and resources
April Documents & resources
From the week of Apr.2
Budget Reconciliation Update
In both the Senate and the House, discussions have continued regarding the possibility of a second budget reconciliation package. If Republicans decide to move forward with a second reconciliation package, it is possible that the House Education and Workforce and the Senate Health, Education, Labor, and Pensions (HELP) Committees will receive instructions on changes to spending, revenues, deficits, and/or the debt limit.
Just yesterday, President Trump called on Congress to send him a reconciliation bill by June 1 that provides funding related to U.S. Immigration and Customs Enforcement (ICE) and U.S. Customs and Border Protection (CBP). The Senate today re-passed fiscal year (FY) 2026 funding for the U.S. Department of Homeland Security (DHS) without funding for ICE and CBP. The House may consider this bill as soon as next week. If the House approves the bill, a second reconciliation bill is more likely to address funding for ICE and CBP.
As a reminder, during the reconciliation bill process last year, the House Education and Workforce Committee tried to change the eligibility requirements for part-time Pell Grants and full-time Pell Grants, with the changes to the former being a new minimum of 7.5 credits (as opposed to 6 credits) and changes to the latter being a requirement for 15 credits (as opposed to 12 credits) to qualify for the maximum Pell Grant. If Congress moves to a second reconciliation bill, the Committee may address these issues again if the budget resolution provides the necessary reconciliation instructions to trigger the budget reconciliation process.
Moreover, a projected $17 billion budget shortfall for Pell Grants across fiscal years 2026 and 2027 could put pressure to reduce spending on Pell Grants. AASCU will continue to monitor developments and share upcoming advocacy opportunities. To stay informed of our action alerts, please sign up for our Advocacy Center.
Trump Signs EO Regarding DEI and Federal Contractors
Last Thursday, President Trump signed an Executive Order (EO) titled “Addressing DEI Discrimination by Federal Contractors.” This EO, which is the latest in the Administration’s efforts focused on diversity, equity, and inclusion (DEI), directs departments and agencies to insert a clause in all federal contracts requiring an attestation that contractors “will not engage in any racially discriminatory DEI activities.”
As distinct from the President’s 2025 EO regarding DEI in the public and private sectors, this EO provides a specific definition of racially discriminatory DEI activities, which is the following: “disparate treatment based on race or ethnicity in the recruitment, employment (e.g. hiring, promotions), contracting (e.g. vendor agreements), program participation, or allocation or deployment of an entity’s resources.”
As possible federal contractors, colleges and universities could be impacted as agencies seek to implement this EO. AASCU will continue to monitor this matter, including any legal challenges to the EO or an agency’s implementation of the Order.
ED Headquarters Gets Relocated
On Friday, the General Services Administration and the U.S. Department of Education (ED) announced that ED will move from its current location at the Lyndon B. Johnson headquarters building to 500 D Street SW. ED argued that this action will save $4.8 million annually in operating costs, eliminate “wasted space in a building that is roughly 70% vacant,” and further reduce the federal education bureaucracy in D.C. The relocation is expected to take place in August 2026.
ED Sends Communication Regarding Switching Repayment Plans
On Friday, ED shared that it will start emailing the 7.5 million borrowers enrolled in the Saving on a Valuable Education (SAVE) Plan with guidance on entering a new repayment plan. As a reminder, earlier this month, a federal appeals court officially ended the SAVE Plan, which was created during the Biden Administration. Given the volume of individuals who need to shift to an alternative repayment plan, AASCU expects this process to be complicated, with individuals who fail to properly switch plans at risk of missing payments, which could lead to delinquency and eventually default on their loans. For colleges and universities, this means that cohort default rates could increase.
ED Restarts Reviews of the BDR Process
On Monday, ED announced that it is restarting consideration of applications for Borrower Defense to Repayment (BDR). BDR is the process in which a borrower can apply for loan forgiveness if their college or university misrepresented its graduation rates, cost of tuition, or postgrad employment, among other claims. Notably, the applications under consideration do not include those that were part of the $6 billion settlement with ED in 2022. Institutions will begin receiving communications from ED regarding this process and updates on any applications filed against the college or university.
From the week of Apr. 9
Administration Releases FY27 Budget Request
On Friday, the Administration submitted its Fiscal Year (FY) 2027 budget request to Congress. The FY27 recommendations propose $75.7 billion in discretionary spending for the U.S. Department of Education (ED).
Highlights pertaining to higher education include the following:
- Pell Grants – Maximum grant is proposed to be level–funded at $7,395; the budget calls for $10.55 billion in additional discretionary spending above FY26 to address the projected Pell Grant shortfall.
- Strengthening Institutions Program – funding proposed to be eliminated.
Minority-Serving Institutions (MSI) – funding is only proposed for HBCU and Tribal institutional aid programs, including mandatory spending. - Supplemental Education Opportunity Grant (SEOG) – funding proposed to be eliminated.
- Federal Work Study – funding requested at $123 million, a proposed cut of $1.107 billion.
- Student Aid Administration – proposed to be level-funded at $2.059 billion.
- TRIO – funding proposed to be eliminated.
- Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) – funding proposed to be eliminated.
- Child Care Access Means Parents in Schools (CCAMPIS) – funding proposed to be eliminated.
- Teacher Quality Partnerships – funding proposed to be eliminated.
Notably, the ED request does not include funding for Career and Technical Education (CTE) State Grants National Activities. Rather, the U.S. Department of Labor (DOL) request includes funding for CTE State Grants and CTE National Activities, aligning with the Administration’s Interagency Agreements issued earlier this year, which seek to transition the program from ED to DOL. Neither request includes funding for Adult Education.
ED Releases Accreditation Regulations Proposal Ahead of Next Week’s Negotiated Rulemaking Session
On Monday, ED released materials for its upcoming Accreditation, Innovation, and Modernization (AIM) negotiated rulemaking session, scheduled for next week. The proposed draft regulations are available. In its summary document, the Administration states that the goal of these regulatory changes is “to realign the Secretary’s criteria for recognition of accreditors to promote high-quality, high value, and affordable education for students that:
- Promotes such academic programs and activities at higher education institutions that are focused on student outcomes and are free from unlawful discrimination and other violations of federal law;
- Reduces barriers that limit competition, innovations, and new education models that advance credential and degree completion;
- Holds institutions accountable for discrimination and unlawful acts; and
- Advances academic freedom, intellectual inquiry, and student learning by ensuring that accreditation requires that institutions support and prioritize intellectual diversity among faculty.”
AASCU will monitor the negotiated rulemaking session next week for key outcomes.
Trump Issues EO on College Sports
On Friday, President Trump issued an executive order (EO) titled “Urgent National Action to Save College Sports.” The EO raises concerns about financial instability in collegiate athletics, particularly the risks to women’s and Olympic sports posed by relaxed rules on pay-for-play, eligibility, and transfers. It calls for the interstate intercollegiate athletic governing body (the NCAA for most universities) to establish consistent rules on athlete eligibility, transfer windows, medical care, and revenue-sharing, while prohibiting improper financial activities and regulating name, image, and likeness (NIL) payments. The EO also directs federal agencies to monitor compliance, encourages legal action against conflicting state laws, and establishes protections for student-athletes. The order is set to take effect in August.
House Ed and Workforce Committee Introduces WIOA Bill Text
On Monday, the Chair of the House Education and the Workforce Committee, Tim Walberg (R-MI), introduced the Stronger Workforce for America Act of 2026, which reauthorizes and updates the Workforce Innovation and Opportunity Act (WIOA). See the related press release and the bill summary. Much of this bill is similar to the 2024 bipartisan agreement that was not included in the final version of the FY25 continuing resolution. However, the bill does move the administration and functions for the Adult Education program from ED to DOL, which Republicans strongly support, and Democrats strongly oppose, likely leading to partisan outcomes for the bill. AASCU will continue to provide updates on the legislative progress of this measure.
Court Update on IPEDS Data Collection
On Friday, Massachusetts District Judge Dennis Saylor issued a preliminary injunction blocking the Administration’s expanded admissions data collection for public universities in the 17 plaintiff states. The judge ruled that the survey was developed in a “rushed and chaotic manner” and that the Administration’s efforts to dismantle ED and the National Center for Education Statistics complicated the process. On Monday, Judge Saylor also extended the deadline for private institutions represented by several associations in regions including New England and the Pacific Northwest, allowing them to seek similar protections and pushing their compliance deadlines to mid-April. AASCU will continue to monitor this case for developments.
From the week of Apr.16
ED Begins Negotiated Rulemaking on Accreditation Regulations
This week, the U.S. Department of Education (ED) began meetings of the Accreditation, Innovation, and Modernization Negotiated Rulemaking Committee. The Committee is scheduled to complete its first week of meetings this week and has a second week of meetings scheduled starting May 18. ED utilizes negotiated rulemaking, a process that requires ED to seek input from representatives of affected stakeholder groups when regulating matters under Title IV of the Higher Education Act.
Thus far, the Committee has debated significant issues impacting accreditation and institutions, including processes to permit new accreditors and to ease the process of institutions switching accreditors, new requirements on accreditors to be “separate and independent” from any related trade or other membership association; standards, including those pertaining to student outcomes, that accreditors have to adopt and how issues of civil rights and academic freedom impact accreditation.
The Committee is expected to work through the week. It is likely that ED will issue a revision of its original regulatory proposal after this first week of negotiations.
Ed and Workforce Committee Likely to Markup WIOA Bill
The U.S. House of Representatives Committee on Education and Workforce is likely to hold a markup of A Stronger Workforce for America Act of 2026 (ASWA 2026) on Tuesday morning.
This legislation largely reauthorizes Titles I through III of the Workforce Innovation and Opportunity Act (WIOA):
- Title I of WIOA largely consists of WIOA’s large formula programs focused on adult, dislocated, and youth formula programs in addition to national programs such as Job Corps and YouthBuild.
- Title II of the bill encompasses the Adult Education and Family Literacy Act, which provides funding to states for adult education services.
- Title III focuses on employment service functions (matching individuals with jobs).
- Of note, the bill does not amend Title IV of WIOA, which consists of the Rehabilitation Act of 1973, which provides funding to states for vocational rehabilitation programs.
ASWA 2026 largely mirrors the bipartisan legislation that Congress nearly passed at the end of 2024, reauthorizing WIOA with two major differences. First, the bill transfers the administration of Title II of WIOA from the U.S. Department of Education (ED) to the U.S. Department of Labor. Second, the bill increases, compared to the 2024 bill, the number of states and local areas permitted to combine WIOA funds into a block grant.
Democrats oppose both of these changes, meaning that markup will likely result in a partisan vote on final passage. AASCU will continue to monitor this legislation.
Additional Court Updates on IPEDS Admissions Data Collection
Earlier this week, the U.S. district judge overseeing the case pertaining to the Admissions and Consumer Transparency Supplemental Survey, an expansion of the existing Integrated Postsecondary Education Data System (IPEDS) from earlier this year, extended temporary restraining orders he issued earlier this month. This gives institutions represented by the Association of American Universities, the Association of Independent Colleges and Universities in Massachusetts, and the Connecticut Conference of Independent Colleges through April 24 to complete the survey. Additional institutions also argued for relief from this expanded IPEDS data collection this week. AASCU will continue to update on the progress of this case and the application of any injunctions to additional institutions.
ED Begins Implementation of New FAFSA Fraud Measures
Yesterday, ED announced the implementation of new measures to prevent fraud, in real time, when students apply through the Free Application for Federal Student Aid (FAFSA). Starting on April 26, ED will begin a process, in partnership with a financial services firm, to screen and assess risk as students complete their FAFSA. ED’s process will seek to confirm an applicant’s identity through the FAFSA workflow process. However, if the identity cannot be confirmed, the applicant’s Institutional Student Information Record (ISIR) will be placed in rejected status. Those applicants with ISIRs in rejected status must undergo additional screening by an institution through in-person verification.
Report Shows Enrollment Outpacing Funding at Public Colleges
Public colleges had enrollment growth outpace government funding in fiscal year 2025. This resulted in a slight decline in per-student support, according to the latest state higher education finance report from the State Higher Education Executive Officers Association (SHEEO). State and local appropriations for public higher education totaled $130.7 billion, a 2.6% increase after adjusting for inflation. Enrollment rose faster, however, climbing 3.6% to 10.8 million full-time equivalent students. This resulted in a drop in per-student funding to $12,082, down from $12,205 the previous year, the first such decline since 2012.
When adjusted for inflation, per-student public funding is still 9.2% higher than it was in 2008, reflecting a steady recovery following cuts during the Great Recession. However, 24 states continue to provide less funding for higher education than they did prior to the recession, underscoring persistent disparities in state investment.
Student Visa Denial Rates Rise
Shorelight, an international education firm, recently published its annual report on visa denials. The report found that visa denials reached a decade-high of 35% in 2025, surpassing the previous peak in 2020. The report documented that the denials were mostly concentrated in Africa, the Middle East, and South Asia, with 64% of all F-1 visa requests from Africans rejected. India, from which a large number of international students attend U.S. universities, had its denial rate increase form 36% in 2023 to 61% in 2025.
From the week of Apr. 23
Reconciliation Update
Early Thursday morning, the Senate passed a budget resolution to unlock a second reconciliation bill that does not involve higher education matters. The budget resolution only gives instructions to the Senate Judiciary Committee and Senate Homeland Security and Governmental Affairs Committee, with the goal of initiating a reconciliation process to fund border patrol and Immigration and Customs Enforcement (ICE). It does not include instructions to the Senate Health, Education, Labor, and Pensions Committee or the House Education and Workforce Committee which would be necessary for a reconciliation bill to include changes to the Higher Education Act.
AIM Committee Concludes First Round of Negotiated Rulemaking Sessions
Last Friday, ED completed its first round of Accreditation, Innovation and Modernization (AIM) Negotiated Rulemaking Committee sessions. There were no agreements reached by the end of session. However, on Friday, ED did go over an updated version of the proposal, which they deemed Version 1.1, and requested input by negotiators on such proposal by April 27. ED expects to have a new version out for negotiators and the public before the next (and final) session, which will take place from May 18 through May 22. AASCU will continue to monitor for updates.
ED Publishes Proposed Rule Related to AHEAD Committee Programmatic Accountability
On Monday, ED released a notice of proposed rulemaking (NPRM) containing draft regulations to establish a new postsecondary accountability framework. The proposal follows negotiated rulemaking sessions held in December 2025 and January 2026, during which the Accountability in Higher Education and Access Through Demand-driven Workforce Pell (AHEAD) Committee reviewed regulations to implement higher education provisions of H.R. 1, the One Big Beautiful Bill Act (OBBA). Particularly, as ED explains in the NPRM, “This document proposes regulations…to implement the provisions of the [OBBA] related to low-earning outcome programs and the Direct Loan program, and to harmonize those regulations with requirements for programs that are required to lead to gainful employment (GE programs).” The Department is accepting public comments on the proposed regulations through May 20, 2026.
House Ed and Workforce Committee Passes WIOA Reauthorization Bill
On Tuesday, April 21, the House Committee on Education and Workforce held a markup on H.R. 8210, A Stronger Workforce for America Act of 2026. As a reminder, this bill largely mirrors the bipartisan legislation that Congress nearly passed at the end of 2024 reauthorizing the Workforce Innovation and Opportunity Act (WIOA) with two major differences: (1) It transfers the administration of Title II of WIOA (Adult Education) from the U.S. Department of Education (ED) to the U.S. Department of Labor (DOL); and (2) It increases the number of states and local areas that would be permitted to combine WIOA funds into a block grant. The bill was favorably reported by Committee on a roll call vote of 19 to 14.
It is worth noting that during the markup, Ranking Member Bobby Scott (D-VA) offered an amendment to strike the underlying bill and replace it with the original A Stronger Workforce for America Act passed by the House in 2024. However, this amendment was defeated on a 14 to 19 vote.
ED Publishes List of States Impacted by Federal Student Aid Fraud
On Tuesday, ED released a list of the ten states where it reported the highest levels of prevented fraud in Federal student aid programs. The announcement follows a new requirement last year for institutions of higher education to verify the identities of certain first-time Free Application for Federal Student Aid (FAFSA) applicants beginning in summer 2025, aimed at reducing the risk of aid being distributed to fraudulent applicants. In its press release, ED stated that these efforts have resulted in more than $1 billion in savings for taxpayers. The states identified as seeing the largest amounts of prevented fraud included California, Virginia, Texas, Florida, Washington, New York, Louisiana, Connecticut, Colorado, and Georgia. More information.
ED Clarifies Interpretation of Grad PLUS Loan Caps
Recent reporting indicates that ED has clarified its interpretation of Grad PLUS loan limits under OBBA. As a reminder, Grad PLUS loans were historically available to students pursuing graduate and professional degrees and allowed borrowing up to the full cost of attendance. However, Congress eliminated the program last summer through enactment of the law and replaced it with new federal lending limits, including a $257,500 lifetime borrowing cap.
Initially, stakeholders interpreted that existing Grad PLUS borrowers would be exempt from this cap regardless of when they completed their programs. More recent guidance from ED indicates that certain borrowers will be subject to the limit, particularly those who do not remain continuously enrolled or whose course of study extends beyond a defined period. Specifically, Inside Higher Ed reported that the lifetime cap is expected to apply to borrowers who pause their enrollment before completing their degree, enroll part-time or in programs that take longer than three years to complete (such as dual-degree programs), or previously borrowed more than $257,500 through Grad PLUS and later seek additional federal aid for a subsequent degree.
Chavez-DeRemer Announces Departure from DOL
On Monday, Lori Chavez-DeRemer announced she was leaving her position as Secretary of Labor. In the interim, Deputy Labor Secretary Keith Sonderling will serve as Acting Secretary of Labor.
From the week of Apr. 30
McMahon Testifies Before Senate Appropriations Subcommittee
On Monday, U.S. Secretary of Education Linda McMahon testified before the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies on the Fiscal Year (FY) 2027 budget request for the U.S. Department of Education (ED). Topics discussed included ED’s proposal to eliminate funding for the TRIO program, which received significant pushback from several Members of Congress across both sides of the aisle, and ED’s $10.5 billion request to boost Pell Grant funds. The latter aims to both maintain the maximum award and support the recent expansion of the grant to short-term workforce training programs. During the hearing, Sec. McMahon also clarified that the U.S. Department of Labor (DOL) and ED are “co-administering” the programs affected by the interagency agreements initiated by the Administration earlier this year, rather than programs.
ED Issues Final RISE Rule on Loan Limits and Loan Repayment
Today, ED released a final regulation stemming from the Reimagining and Improving Student Education (RISE) negotiated rulemaking committee. As a reminder, this regulation was focused on establishing new loan limits for graduate and Parent PLUS loans, as well as a new loan repayment program. ED issued regulations on these matters following the passage of H.R. 1, the One Big Beautiful Bill Act (also known as the Working Families Tax Cuts Act) last summer.
The final regulation, which will be formally published in the Federal Register tomorrow, retains the main points of the proposed rule, including maintaining a narrow list of 11 named and other related programs eligible for higher “professional” graduate borrowing limits. Advocates, especially those in health professions such as nursing, had argued for an expanded application of these higher professional loan limits. AASCU joined this effort and subsequently endorsed a bill led by Rep. Mike Lawler (R-NY-17).
Judge Expands Scope of Preliminary Injunction on IPEDS Data Submission
On Friday, Massachusetts District Court Judge Dennis Saylor expanded the scope of his preliminary injunction blocking ED’s requirement for states to submit admissions data from the Integrated Postsecondary Education Data System (IPEDS) Admissions and Consumer Transparency Supplement Survey. The latest injunction applies to six colleges and those represented by the Association of American Universities, the Connecticut Conference of Independent Colleges, the Maine Independent Colleges Association, the North Carolina Independent Colleges and Universities, the Oregon Alliance of Independent Colleges and Universities, and Independent Colleges and Universities in Massachusetts.
Reconciliation Update
On Friday, the Senate passed a budget resolution to unlock a second reconciliation bill that does not involve education matters. Yesterday, the House passed this Senate-passed budget resolution. Neither the House nor the Senate education committees, which oversee the Higher Education Act, were included in the process, thus indicating that higher education will not be addressed in the upcoming reconciliation process.
House Appropriators Propose 20% Cut to NSF
On Wednesday, the House Appropriations Committee released the text of its fiscal 2027 Commerce-Justice-Science bill. The funding totals $77.3 billion, approximately $670 million below current levels (i.e., about a 1% cut). In particular, appropriations for the National Science Foundation (NSF), which funds research grants at institutions of higher education across the country, were proposed to be cut by 20%.
