AASCU Federal Highlights – June 2026
A compilation of policy news shared in AASCU’s Weekly Federal Policy Update.
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June’s Lead Story
House FY27 LHHS Bill
The House Appropriations Committee advanced its FY27 Labor-HHS-Education spending bill, which would reduce overall Department of Education funding while increasing the maximum Pell Grant by $50 and providing modest increases for TRIO and GEAR UP. The bill also eliminates funding for Teacher Quality Partnerships, ends new subsidized undergraduate loans beginning in 2027-28, and includes provisions affecting graduate student borrowing and implementation of the RISE rule.
Read more.Other news and resources
June Documents & resources
From the week of June 4
House FY27 LHHS Bill Highlights and Upcoming Markup
As mentioned above, the House Appropriations LHHS Subcommittee released its FY27 appropriations bill text earlier today. Read the Committee Press Release and the Committee Summary of the Subcommittee bill.
Highlights pertaining to higher education include the following:
- Increases the maximum Pell Grant by $50 to $7,445.
- Adds $15.03 billion in mandatory spending for the Pell Program in FY27 to respond to the program’s shortfall.
- Increases funding for TRIO and GEAR Up by $6 million each.
- Eliminates funding for the Teacher Quality Partnership (TQP) program.
- Terminates subsidized undergraduate student loans effective with the 27/28 award year (except for students currently borrowing and enrolled).
The Subcommittee bill markup will be livestreamed June 5. A full committee markup is scheduled for Tuesday, June 9.
Senate Appropriations Committee Postpones FY27 CJS Markup
On Tuesday, the Senate Appropriations Committee postponed its scheduled markup of the FY27 Commerce-Justice-Science (CJS) appropriations bill, along with several other appropriations measures. The action was driven by anticipated Democratic amendments opposing the U.S. Department of Justice’s proposed $1.8 billion “Anti-Weaponization Fund.” The markup was initially scheduled for today; however, media reports have indicated that the markup may be rescheduled for the coming week. The Committee has not yet officially announced a new date for consideration of the bill.
OMB Issues Proposed Rule on Federal Financial Assistance
On Friday, OMB issued a proposed rule to comprehensively revise the OMB Guidance for Federal Financial Assistance. According to OMB, the rule is intended to “enhance transparency, accountability, and oversight” and clarify the regulatory status of existing guidance by converting it into binding regulations applicable to all federal agencies. Regarding higher education matters, the proposed rule would:
- Require senior political appointees to review funding opportunities and ensure they align with the Administration’s priorities;
- Prohibit the use of federal award funds for diversity, equity, inclusion, and accessibility activities; and
- Direct agencies to give preference to applicants with lower indirect cost rates when proposals are otherwise comparable.
The proposed rule would also expand agencies’ authority to terminate awards that are determined to no longer align with federal priorities or the national interest. Following a 45-day window, comments on the proposed rule are due July 13, 2026.
Senate Commerce, Science, and Transportation Committee Holds Hearing on College Sports
On Wednesday, the Senate Commerce, Science, and Transportation Committee held a hearing on the bipartisan Protect College Sports Act, which seeks to establish a national framework for college athletics and student-athlete compensation. The hearing comes as Congress continues to weigh competing House and Senate proposals. Members and witnesses discussed growing concerns over NIL spending, transfer portal activity, and the long-term sustainability of college sports. In his opening remarks, Committee Chair Ted Cruz (R-TX) argued that Congress must act to address the “legal chaos” surrounding college athletics and highlighted provisions in his bill intended to create uniform national standards, protect scholarships, and preserve opportunities for Olympic and women’s sports.
Last week, following the Senate bill’s introduction, Education and Workforce Committee Chairman Tim Walberg (MI-05) and Energy and Commerce Committee Chairman Brett Guthrie (KY-02) issued a statement reiterating support for the House version’s SCORE Act while lamenting the Senate legislation’s intentional omission of language barring the classification of student-athletes as employees.
House Education and Workforce Committee Holds Hearing on AI in Higher Education
On Wednesday, the House Education and Workforce Subcommittee on Higher Education and Workforce Development held a hearing titled “Building an AI-Ready America: Higher Education in the Age of AI.” Members and witnesses discussed the opportunities and challenges posed by artificial intelligence in higher education, efforts to accelerate AI research and adoption across campuses, and disparities in access to AI resources between large institutions and smaller, less-resourced colleges. In his opening remarks, Subcommittee Chair Burgess Owens (R-UT) emphasized that AI is “not a passing trend—it is a seismic shift in how learning happens and how institutions operate.” This marked the seventh hearing that the Committee has held proceedings on AI in this Congress. AASCU will continue to provide updates on the matter as it relates to higher education policies.
Rep. Frederica Wilson Not Seeking Reelection
Rep. Frederica Wilson (D-FL), Member of the House Education and Workforce Committee, announced that she will not seek reelection in the 2026 midterms. Rep. Wilson is a top Democrat on the Committee and has previously served as Ranking Member of the Higher Education and Workforce Development Subcommittee in the 118th Congress.
Additional Lawsuits Against ED Over RISE Rule
Two additional lawsuits have been filed against ED’s final Reimagining and Improving Student Education (RISE) rule, which establishes new graduate borrowing limits based on whether a student is enrolled in a “graduate” or “professional” degree program. Last week, a coalition of more than ten national nursing organizations sued ED over the rule, and yesterday, the American Academy of Physician Associates (AAPA) and the PA Education Association filed a similar suit. These cases follow a legal challenge brought by 25 Democratic-led states and Washington, D.C., as well as a lawsuit by a coalition representing professionals in nursing, counseling, public health, and education.
In the recent case brought by nursing organizations, the plaintiffs contend that ED’s decision to exclude advanced nursing programs from the federal definition of a “professional degree” will increase barriers to post-baccalaureate nursing education. In the case brought by the physician assistant groups, industry experts assert that the regulation could hurt the pipeline of workers that become physician assistants. AAPA President Todd Pickard stated that “It will further consolidate the care to the counties that already have the most care and create an increasing desert of health care in rural communities.” Pickard further said, “This is a complete opposition to what the Trump Administration has said that they are interested in.”
Treasury Department Rescinds Student Debt Work From 5 Contractors
According to POLITICO, the Treasury Department has recently rescinded student loan default collection work that had been assigned to five private contractors, citing a procurement error. The move comes as the Administration prepares to transfer responsibility for defaulted federal student loans from ED to Treasury, under the Federal Student Assistance Partnership. Treasury officials stated that the agency will conduct a separate procurement process for debt collection services and expects to release a formal solicitation later this year. They also indicated that new contractors are unlikely to begin handling federal student loan collections before the end of 2026.
ED Announces Launch of Real-Time FAFSA Eligibility Results
On Monday, ED announced the launch of real-time results for the Free Application for Federal Student Aid (FAFSA), allowing students and families to receive eligibility information immediately after submitting their application. Under the new feature, applicants will also be notified instantly of any errors that require correction, replacing a process that previously could take days or weeks.
From the week of June 11
House Appropriations Full Committee Mark Up and Passage of FY27 LHHS Bill
Following the passage of the fiscal year (FY) 2027 Labor, Health and Human Services, Education, and Related Agencies (LHHS) appropriations bill by the House Appropriations LHHS Subcommittee on Friday, the House Full Committee on Appropriations released report language and Full Committee text for its FY27 LHHS appropriations bill on Monday. Overall, the bill would provide $189.3 billion in discretionary funding for FY27, $5.6 billion (3%) below the FY26 enacted level. The bill would fund the U.S. Department of Education (ED) at $70.7 billion, which is $8 billion (10%) below the FY26 enacted level. Bill Text | Committee Report
Highlights pertaining to higher education within the bill include the following:
- Pell Grants: Increases the maximum Pell Grant by $50 to $7,445; Increases Pell discretionary appropriations by $250 million – $22.725 billion; Adds $15.03 billion in additional mandatory spending for the Pell Grant Program in FY27
- Supplemental Educational Opportunity Grant (SEOG): Decreased by $364 million – $546 million
- Federal Work Study: Decreased by $322 million – $908 million
- Hispanic-Serving Institutions (HSIs), Asian American and Native American Pacific Islander-Serving Institutions (AANAPISIs), and other Minority-Serving Institutions (MSIs) within the Committee report tables: Mostly level-funded
- TRIO: Increased by $6 million – $1.197 billion
- GEAR UP: Increased by $6 million – $394 million
- Teacher Quality Partnerships: Eliminates funding
- Child Care Access Means Parents in Schools (CCAMPIS): Level-funded
- Hawkins Centers of Excellence: Level-funded
- Subsidized Undergraduate Student Loans: Effective with the 2027/2028 award year (except students currently borrowing and enrolled) – Terminated
On Tuesday, the House Appropriations Committee held a Full Committee markup of the bill. The bill ultimately passed by a 34-28 vote. Of note, a manager’s amendment was adopted, including provisions on graduate student borrowing limits and the TRIO program. Specifically, the amendment would prohibit ED from using funds to implement its recent Reimagining and Improving Student Education (RISE) rule in a manner that excludes advanced nursing programs from the definition of professional degree programs for federal student loan purposes. The amendment also included language directing ED to administer TRIO consistent with congressional intent, including preventing changes to the program’s fundamental structure, requiring timely obligation of funds, and maintaining funding allocations at no less than FY26 levels.
Federal Judge Blocks Administration’s $100K Visa Fee
On Monday, a federal district court judge blocked the Administration’s effort to impose a $100,000 fee on employers seeking to hire foreign workers through the H-1B visa program, ruling that the fee constituted a tax that required congressional authorization. The fee was established through a September 2025 presidential proclamation and was challenged by a coalition of states that argued it would impede their ability to recruit workers for public institutions, including colleges, universities, and hospitals.
In its decision, the court cited recent Supreme Court precedent limiting the Executive Branch’s authority to impose taxes or similar financial obligations without clear approval from Congress. The Administration has indicated that it intends to appeal the ruling, while maintaining that the policy was intended to address concerns regarding the “abuse” of the H-1B visa program.
House Passes No Aid for Ghost Students Act
On Wednesday, the House passed H.R.7892, the No Aid for Ghost Students Act of 2026, by a 249-172 vote. As a reminder, this bill seeks to amend the Higher Education Act of 1965 to require the Secretary of Education to use an identity fraud detection system to review each Free Application for Federal Student Aid (FAFSA) and determine whether specific FAFSAs present a reasonable suspicion of identity fraud. To become law, this bill must be passed by the Senate and signed by the President. AASCU will continue monitoring any major developments.
Update on Senate Timeline for the Protect College Sports Act
On Wednesday, Senate Commerce Committee Chair Ted Cruz (R-TX) indicated that he plans to schedule a committee markup of the Protect College Sports Act “shortly” and expressed optimism that the legislation could advance through the Senate this year. As a reminder, this bill seeks to establish a national framework for college athletics and student-athlete compensation, but it does not address whether student-athletes should be classified as employees. While the bill has received support from the Administration and Senate leaders on both sides of the aisle, House Republicans have raised concerns about several provisions. Ongoing differences between the two chambers could complicate the legislation’s path forward. AASCU will continue to report on federal efforts related to this issue.
Federal Judge Grants Temporary Injunction for Texas Tech Quarterback
On Monday, a Texas state judge granted a temporary injunction allowing Texas Tech quarterback Brendan Sorsby to play during the 2026 season despite being declared ineligible by the National Collegiate Athletic Association (NCAA) for wagering on college sports. The case has drawn attention across higher education and college sports, with some athletic leaders warning of broader implications for NCAA enforcement authority and ongoing congressional discussions regarding governance of intercollegiate athletics.
The ruling prevents the NCAA from enforcing its eligibility determination while litigation proceeds. The NCAA has announced plans to appeal the decision, arguing that the ruling undermines longstanding rules intended to protect the integrity of college athletics.
Sen. Murkowski (R-AK) Signals Interest in HELP Committee Chair
On Wednesday, Sen. Lisa Murkowski expressed interest in taking the top GOP slot on the Health, Education, Labor, and Pensions (HELP) Committee. The position will be open next Congress following the recent loss of current HELP Committee Chairman Bill Cassidy (R-LA) in his state’s GOP primary election. Fueling speculation, yesterday, Sen. Murkowski said, “If I am most senior, I would certainly welcome the opportunity,” in reference to the top GOP HELP position.
In Committee seniority, Sen. Murkowski ranks behind Sen. Rand Paul (R-KY) and Sen. Susan Collins (R-ME). Sen. Paul is the current Chair of the Senate Homeland Security and Governmental Affairs Committee, and Sen. Collins is Chair of the Senate Appropriations Committee. Sen. Paul has not made any public indication of wanting to switch to the GOP leadership on the HELP Committee, and Sen. Collins has publicly stated her desire to remain on the Senate Appropriations Committee.
Meanwhile, Sen. Roger Marshall (R-KS), who is behind Sen. Murkowski in seniority, has also publicly expressed interest in being the GOP leader on the HELP Committee. AASCU will continue to monitor and report on any updates.
From the week of June 18
Department of Education Transfers OCR to Department of Justice
On Tuesday, the U.S. Department of Education (ED) announced a new interagency agreement (IAA) with the U.S. Department of Justice (DOJ) that will shift key civil rights investigation and enforcement activities from ED’s Office for Civil Rights (OCR) to DOJ’s Civil Rights Division. The Administration stated that the agreement is intended to improve efficiency and “scale back federal micromanagement.”
Under the IAA, DOJ will evaluate, investigate, and develop findings for civil rights complaints involving schools and institutions of higher education, while ED will retain overall management of OCR and final decision-making authority regarding enforcement actions and case resolutions. ED and DOJ have indicated they are now working to determine implementation timelines, staffing arrangements, and resource needs.
It is also worth noting that in a separate IAA announcement the same day, ED indicated that certain responsibilities currently housed within the Office of Special Education and Rehabilitative Services will be transferred to the U.S. Department of Health and Human Services. AASCU will continue to monitor for implementation updates.
ED Announces Temporary Student Loan Interest Rate Reduction for Auto Pay Enrollment
Today, ED announced a temporary reduction in student loan interest rates for eligible federal borrowers who enroll in automatic payments by Sept. 30, 2026. Borrowers with Federal Direct Loans originated on or after July 1, 2012, can now receive a total 1% interest rate reduction through June 30, 2028. Current auto-pay participants will automatically receive an additional 0.75 percentage-point reduction on top of the existing 0.25 percentage-point discount. The initiative coincides with the launch of two new federal repayment options on July 1, including the Repayment Assistance Plan and a new Tiered Standard repayment plan. Department officials said the incentive is intended to encourage on-time repayment and help borrowers take advantage of available repayment and loan forgiveness benefits. AASCU will continue to track and provide updates on this new incentive and other emerging federal efforts aimed at supporting student loan borrowers.
Senate Commerce, Science, and Transportation Committee Holds Markup of College Sports Bill
Today, the Senate Committee on Commerce, Science, and Transportation held a markup of S. 4668, the Protect College Sports Act of 2026. The Committee passed the bill by a 19 to 9 vote. As a reminder, this bill seeks to establish a national framework for college athletics and student-athlete compensation, but it does not address the matter of whether student-athletes should be classified as employees. AASCU will continue to monitor how the Senate reconciles with the House bill.
Attorneys General Sue the Administration Regarding Federal Contractor DEI Executive Order
Last week, a coalition of 20 State attorneys general filed a lawsuit challenging the Administration’s executive order (EO) targeting diversity, equity, and inclusion (DEI) programs among federal contractors. The EO directs federal contractors to provide records and other documentation for compliance reviews and authorizes agencies to suspend, terminate, or deny future contracts to entities found in violation of its requirements.
This case is one of several legal challenges currently pending against the EO. The lawsuit argues that the EO is overly vague about which activities are prohibited and could hinder states’ efforts to prevent and address discrimination within their own operations. The Administration has defended the policy as part of its broader effort to eliminate what it characterizes as discriminatory DEI practices in federally funded activities.
From the week of June 25
Recent Court Action on ED’s Professional Degree Definition
Today, a Federal district court partially stayed ED’s new definition of “professional degree,” preventing ED from enforcing portions of the definition that limited eligibility for higher Federal student loan borrowing caps based on specific program criteria. The lawsuit was brought by associations representing advanced nursing, physician assistant, therapy, public health, and other healthcare professions that argued the rule would exclude their students from higher borrowing limits available to certain professional degree programs.
While the court left portions of the definition in place and did not suspend the statutory graduate and professional student loan limits enacted by Congress, the ruling creates uncertainty regarding how ED will implement the remaining definition and may allow institutions to argue that additional healthcare and other graduate professional programs qualify for the higher borrowing limits while the case proceeds.
HUD “Dear Colleague” Letter Warns Public Institutions on Discriminatory Race-Based Housing
On Tuesday, the Department of Housing and Urban Development (HUD) urged public colleges and universities to reconsider race-based “affinity-housing” arrangements in a “Dear Colleague” letter sent to higher education stakeholders and fair-housing affiliates. In the letter, HUD seeks to remind higher education institutions that race-based housing violates federal civil rights law under the Fair Housing Act, while promising that the department would “ensure maximum accountability” for any violations.
Labeling “the rise of institutionalized separatism on the basis of race” as a disturbing trend, and a form of “neo-segregation” in higher education, HUD committed to pursuing every available remedy to end perceived discrimination and segregation in campus housing.
OIG Releases Report on ED Changes in Staffing and Operations
On Monday, the U.S. Department of Education’s (ED’s) Office of Inspector General (OIG) released a report outlining staffing, operational, contract, and grant changes made between January and March 2025 as part of the Administration’s workforce and spending reduction efforts. The report found that ED’s workforce declined by approximately 40 percent through reductions in force and voluntary separation programs, while numerous contracts and grants were terminated, modified, or moved toward closeout. OIG noted that several suboffices were eliminated, including some with oversight and statutory responsibilities, and stated that limited access to ED personnel and records constrained its review. ED disputed aspects of the report, citing ongoing judicial proceedings and asserting that it continues to fulfill its statutory responsibilities despite the staffing reductions.
House Education and Workforce Committee Holds Hearing on Apprenticeship
On Wednesday, the House Committee on Education and Workforce Subcommittee on Higher Education and Workforce Development held a hearing titled, “Workforce Rewired: Modern Apprenticeships for a Modern Economy.” Members and witnesses discussed the importance of apprenticeships as a pathway to employment and as a substitute, depending on student interest, for a four-year college degree. Members also focused on barriers to expanding apprenticeship opportunities and the importance of guardrails that ensure that apprenticeships lead to quality outcomes for employers and apprentices. Lastly, Members and witnesses also discussed methods to incentivize the expansion of apprenticeships across employment sectors.
A committee-provided recap is available.
