AASCU Federal Highlights – August 2025
A compilation of policy news shared in AASCU’s Weekly Federal Policy Update.
Subscribe now.
August’s Lead Story
Trump Administration Targets Transparency in Higher Education Admissions
Following recent executive orders seeking to regulate college athletics and oversight of federal grantmaking, the White House has released a presidential memorandum seeking to ensure transparency in higher education admissions in light of the Students for Fair Admissions v. Harvard decision. The memorandum instructs the Department of Education, in coordination with the National Center for Education Statistics, to begin collecting expanded admissions data within 120 days. The enhanced reporting requirements have been published in the Federal Register and are open for public comment until Tuesday, Oct. 14.
Other news and resources
August Documents & resources
From the week of Aug. 28
DOJ Declines to Defend HSIs in Ongoing Lawsuit
On Friday, media outlets reported that the U.S. Department of Justice (DOJ) has no plans to defend Hispanic-Serving Institutions (HSIs) in the recent court filing from the State of Tennessee and Students for Fair Admissions (SFFA) against the U.S. Department of Education (ED). As a reminder, SFFA won its case two years ago against Harvard and the University of North Carolina at Chapel Hill on the grounds of discriminatory admissions processes. In this HSI court filing, Tennessee and SFFA argue that the criteria for becoming an HSI are unconstitutional and discriminatory.
To qualify as an HSI, a college or university must have a student body that is at least 25% Hispanic and enroll at least 50% low-income students, or more than comparable institutions, along with meeting other requirements. However, according to the court filing, none of the public institutions of higher education in Tennessee meet these thresholds, which prevents them from applying for HSI-specific grants, even though they serve Hispanic and low-income students. Without support from DOJ in court action, the future of federal funding for these programs could be in jeopardy. AASCU will monitor this issue closely, report on developments, and engage accordingly.
ED Remains on Track to Make FAFSA Forms Available by Oct. 1
On Wednesday, U.S. Secretary of Education Linda McMahon sent a letter to Congress, affirming that ED remains on track to release the 2026–27 Free Application for Federal Student Aid (FAFSA) form by the statutory deadline of October 1. This follows two consecutive years of delays and technical problems during the form’s rollout under the Biden Administration, which the U.S. Government Accountability Office reported contributed to a 9% drop in submissions from first-time applicants. Sec. McMahon credited early testing, including ED beginning its second round of beta testing in August, for helping the agency identify and resolve issues before the full launch. She stated that this is the earliest FAFSA testing phase in the program’s history and highlighted the Department’s focus on technical preparation to meet congressional requirements.
DHS Proposes Fixed Admission Periods for F, J, and I Visa Holders
Today, the Department of Homeland Security (DHS) published a proposed rule to limit the admission period for the following nonimmigrant classifications—F (academic students), J (exchange visitors), and I (foreign media representatives)—to a fixed term instead of the current “duration of status” framework. Under the proposal, these categories of nonimmigrants would be admitted for up to four years or the length of their program (whichever is shorter) and would need to apply for extensions to continue their stay. The rule aims to address oversight challenges and national security concerns, citing risks of visa misuse and long-term unauthorized residence. The proposal also includes restrictions on program changes, shorter grace periods after program completion, and new biometric requirements when applying for an extension of status, such as fingerprints. DHS will accept public comments on the rule through September 27, 2025.
ED Updates Interpretation on Use of Federal Work Study Funds
On August 19, ED updated the agency’s interpretation on using Federal Work Study (FWS) funds for certain voter registration and related activities, largely stating that such use is impermissible. The Department rescinded prior guidance (GEN-22-05 and GEN-24-03) that had allowed FWS support for nonpartisan political activities, clarifying that such activities—including voter registration, poll work, and voter assistance—are considered political and therefore ineligible for FWS funding. ED also clarified that while institutions must make a good faith effort to distribute voter registration forms, they are not required to provide them to students whom the institutions have “reason to believe” are ineligible to vote, such as noncitizens.
Supreme Court Overturns Lower Court Ruling on NIH Grants
The Supreme Court ruled, in a 5-4 decision, to allow the Trump Administration to halt funding for about 1,200 NIH grants that the Administration said promote diversity, equity, inclusion (DEI), or “gender ideology extremism.” The case involves grants related to various health issues, including heart disease and mental health. The Court noted that disputes over federal grants should be filed in the Court of Federal Claims, not the lower court where the case began. This ruling permits the Administration to withhold funding while legal challenges continue.
ED Begins Reinstating Office of Civil Rights Employees
On August 19, ED shared that it would begin reinstating hundreds of employees at the Office for Civil Rights as part of its compliance with a district court order. According to court documents, approximately 25 employees will return to the Office on September 22 and will increase incrementally over time. As a reminder, U.S. District Judge Myong Joun ordered the agency to bring the staff back in June. This reinstatement plan came out days after Judge Joun found that ED failed to comply with that directive.
From the week of Aug. 14
Trump Releases EO on College Sports
On July 24, President Trump released an Executive Order (EO) titled “Saving College Sports.” The EO frames college athletics as facing unprecedented challenges due to recent court rulings and policy shifts that have removed limits on athlete compensation, pay-for-play incentives, and transfers.
To address this, the EO sets policies aimed at stabilizing the college sports landscape by:
- Requiring college athletic departments with higher revenues to increase or maintain scholarships and roster spots in non-revenue and women’s sports, while prohibiting disproportionate cuts by lower-revenue programs;
- Opposing third-party pay-for-play payments and permitting revenue sharing only if it preserves athletic and educational opportunities;
- Directing the U.S. Department of Education (ED) to enforce these policies through Title IX and Federal funding decisions;
- Tasking the U.S. Department of Labor (DOL) and the National Labor Relations Board (NLRB) with clarifying student-athlete employment status;
- Instructing the U.S. Department of Justice and Federal Trade Commission to protect college sports from legal threats; and
- Calling on the White House to help safeguard the “integral role and competitive advantage” that collegiate athletics provide in developing athletes to represent the U.S. in international competitions like the Olympics.
Trump Releases EO on Oversight of Federal Grantmaking
On August 7, President Trump issued an Executive Order titled “Improving Oversight of Federal Grantmaking.” This EO seeks to strengthen oversight of Federal grants to ensure they are aligned with “American interests” and achieve measurable impact. Specifically, it requires agencies to review grant notices and awards for consistency with the Administration’s priorities, with senior officials responsible for approving new grants; bans funding that promotes racial discrimination, denial of biological sex, illegal immigration, or “anti-American” values; and favors grants to institutions with lower costs and demonstrated results, emphasizing “Gold Standard Research.”
The EO also directs the Office of Management and Budget to revise grant regulations to simplify application requirements, permit the government to terminate discretionary grants when they no longer align with priorities or the national interest, and restrict the use of grant funds for facilities and administrative costs.
Trump Releases Presidential Memorandum on Transparency in Higher Education Admissions
On August 9, President Trump issued a Presidential Memorandum titled “Ensuring Transparency in Higher Education Admissions,” directing ED to expand data collection through the Integrated Postsecondary Education Data System (IPEDS) to increase transparency in college admissions. This follows the 2023 Supreme Court ruling in Students for Fair Admissions v. Harvard, which found race-based discrimination in admissions unconstitutional; however, the Trump Administration expressed concerns that race may still be used in admissions under diversity initiatives. The memorandum instructs ED to improve IPEDS’s data accessibility and efficiency, expand reporting beginning in the 2025-2026 academic year to include detailed admissions and scholarship data disaggregated by race and sex, and strengthen compliance monitoring.
In line with the memorandum, U.S. Secretary of Education Linda McMahon directed the National Center for Education Statistics to collect new data from universities to better detect potential race discrimination in admissions. Relatedly, ED released a Federal Register notice outlining a new “Admissions and Consumer Transparency Supplement” survey component to IPEDS, which focuses on selective four-year institutions and requires this data going forward and from the past five academic years to establish a baseline for tracking admissions practices. The notice also seeks input on whether to extend this reporting to open-access institutions like community colleges and other schools.
Nicholas Kent Confirmed as ED Undersecretary
Two weeks ago, AASCU reported that Senate Majority Leader John Thune (R-SD) filed cloture on the nomination of Nicolas Kent for U.S. Under Secretary of Education. On August 1, the Senate officially confirmed Kent for the position by a 50 to 45 vote. Shortly after, he issued a set of higher education priorities for the agency, which include stabilizing the Federal student loan portfolio to benefit both students and taxpayers, restoring trust in the higher education system, and implementing the One Big Beautiful Act’s measures pertaining to institutional accountability, Workforce Pell, and student loans.
ED Makes Test Version of 2026-2027 FAFSA Available
Last week, ED announced that the test version of the 2026-2027 Free Application for Federal Student Aid (FAFSA) is available. Currently in beta, the form is open to a limited group for early testing, with phase one running through August 2025 in partnership with select students and organizations. In September, others may request to join the second phase, though not all will be invited. The full launch is scheduled for October 1, 2025. This early testing is intended to allow the ED to monitor system performance and make improvements before the form becomes widely available.
