Indirect Cost Litigation Update

The Department of Justice failed to meet the deadline to appeal a nationwide injunction blocking the National Institutes of Health from imposing a 15 percent cap on indirect cost reimbursement. This leaves that injunction and rulings blocking similar caps by the Department of Energy, the Department of Defense, and the National Science Foundation in place. Read more on ACE.

 

Race and Gender Reporting Update

In a recent ruling, Judge F. Dennis Saylor IV granted institutions that belong to six associations additional time to submit to ED applicant and admissions data disaggregated y race and sex. Six colleges were also granted additional time. All twelve are eligible to join a legal challenge to the requirement. The rule in question requires institutions of higher education to report applicant demographic data to the Department of Education (ED) via IPEDS’ new Admissions and Consumer Transparency Supplement survey. The data includes race, gender, income, parental education, and Pell grant eligibility going back seven years.

 

Seventeen state attorneys general sued citing the imposition of a short deadline, lack of consideration of state privacy and data retention laws, cuts to IPEDS that eliminated training, and other issues. Earlier this month, Judge Saylor enjoined the federal government from enforcing it but the injunction is limited to public institutions in the states that sued. Read more on the EDU Ledger.

 

Negotiated Rulemaking Update

The Department of Education (ED) largely stuck to the draft regulations it released prior to the current round of negotiated rulemaking. The committee is considering changes to the rules governing accreditation. Members representing accreditors and institutions found some of the proposals violate existing federal statutes. Read more on Inside Higher Ed.

 

HBCUs Brace for Impact of Loan Restrictions

Experts fear changes to the PLUS loan programs, which go into effect on July 1, 2026, will devastate HBCUs including medical and law schools. They note the negative impact on enrollment previous changes to the loan programs had in 2011. Precautionary actions include fundraising, seeking state support, and developing new financial aid options. Some law schools, for example, have launched their own loan programs. ED characterized these responses as evidence downsizing the agency has resulted in lower tuition. Read more on Inside Higher Ed and the EDU Ledger.

 

Workforce Pell Rules

Experts note that there are problems with the way completion is calculated under ED’s proposed rules for the Workforce Pell Grant program. Post-completion job placement rates are a key metric that must fall above a threshold in order for a program to remain eligible. However, there is no allowance for students who continue their education rather than immediately begin working. The American Council on Education (ACE) and other organizations are calling on ED to revise that and other rules that impact Pell grant eligibility. Read more on ACE.

 

Kentucky Considers Bill to Oversee HBCU

An expert argues that the state should view Kentucky State University as an institution in need of support and investment rather than one that needs to be fixed and externally controlled. Read the article by Michael N. Weaver Jr., on the EDU Ledger.

 

DEI Targeted Again

The president signed an executive order (EO) that requires federal contractors and subcontractors to agree not to engage in DEI activities. Unlike previous EOs that were vague, it defines DEI as disparate treatment based on race or ethnicity. Under the order, contractors are subject to False Claims Act penalties. They are required to provide access to their books, records, and accounts to confirm compliance. Critics say the EO undermines economic mobility and efficiency. Read the EO on the White House website and commentary on Inside HigherED.

 

Missouri Considers Enrollment-Based Funding

A bill that would base state higher education funding on enrollment passed the House in Missouri and is headed to the state senate. The bill would cut funding for smaller institutions including HBCUs, Lincoln University and Harris-Stowe State University. Read more on Inside Higher ED.

 

Accessibility Compliance

The Department of Justice extended the deadline for colleges and universities to comply with accessibility requirement to April 24, 2027. The rule applies to institutions serving localities over a defined size threshold. It requires covered entities to ensure their websites and mobile apps to be accessible to people who have disabilities. Read more on Community College Daily.

 

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 The HBCU Research Capacity Act

Senator Reverend Raphael Warnock (D-GA) and Senator Katie Britt (R-Ala.) introduced the HBCU Research Capacity Act. The bipartisan legislation would require the Department of Education to establish a clearinghouse aimed at helping HBCUs take advantage of federal research opportunities. The senators hosted a roundtable discussion for HBCU presidents who discussed the need for federal support. Read more on the Journal of Blacks in Higher Education.

 

Scholarship Award Challenged

The American Alliance for Equal Rights (AAER) filed a lawsuit on behalf of two students challenging the legality of the Congressional Black Caucus Foundation’s Spouses Education Scholarship program. By requiring applicants to By limiting eligibility to Black students from certain congressional districts, AAER claims the program is unlawfully discriminatory. The group also alleges the awards should subject to rules governing contracts due to nuances in the application process. Read more on the Root.

 

Executive Order Takes Aim at Sports

The president issued an executive order to address rules governing collegiate sports including, time span for player eligibility; transfers; required reporting; name image and likeness payments; restrictions on collectives, third parties, and agents; and other issues. Some of the rules go into effect August 1, 2026. A fact sheet provided additional details. Non compliance could result in loss of federal funding. However, a previous EO regarding collegiate sports had little impact and the president was said to acknowledge that this EO would probably not survive a legal challenge. The NCAA is said to be keen on enforcing rules similar to what appears in the EO. Experts suggest regulations or the lack there of will impact HBCUs. Read more on Sporting News.

 

ED Updates Grant Eligibility

The current eligibility application for Title III and Title V grant programs does not mention minority-serving institutions. Experts had predicted ED would transfer discretionary funds from MSI programs to the Strengthening Institutions Program—placing all the funding in a single bucket. Although Congress allocated the funds to MSI grants, it did not expressly forbid ED from making such a transfer. Read more on ED and on Inside Higher ED.

 

TRIO Competitive Grant

The Departments of Education and Labor launched the 2026 TRIO programs with the Talent Search Program. The program provides eligible institutions with funding to help students who are pursuing college, training, and registered apprenticeships.

 

Grant Cancellation Litigation

The American Council of Learned Societies, the American Historical Society, the Modern Language Association and co-plaintiffs, the Authors Guild filed a pivotal motion in their fight to restore grants canceled by the National Endowment for the Humanities (NEH). In it they ask the court to restore the grants, declare the cancellations unlawful, and block the NEH from canceling them again. The motion comes on the heels of the discovery phase which revealed DOGE used ChatGPT, failed to follow established procedures, and used social engineering to pressure leaders to move quickly. The plaintiffs published the discovery documents including video depositions online. Read more on Inside Higher ED.

 

International Group Pressured to Move Meeting

Mathematicians from around the world have pledged to boycott the International Congress of Mathematicians’ quadrennial conference in July if it is held in the United States. At issue is the removal of Venezuelan President Maduro, the bombing of Iran, visa restrictions, restrictions on academic freedom, and inability to guarantee the security of attendees against the profiling and detainment policies of US Immigration and Customs Enforcement. Proponents note that the demand is not without precedent. The organization declined to hold its last meeting Saint Petersburg, Russia in response to the invasion of Ukraine. Read more on Inside Higher ED.

 

Proposed Accountability Rule

Comments are open for a proposed rule that would require institutions to show that students who complete an undergraduate degree program earn more per year than a typical high school graduate. The American Council on Education (ACE) noted that the rule penalizes institutions when a student continues their education rather than entering the workforce. ACE also questioned the absence of a standardized appeals process and criticized a provision that could trigger Pell Grant ineligibility in a way that leaves a student in debt. Read ACE’s letter, the related negotiated rulemaking sessions, and the proposed rule. 

 

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