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Top Story
Partial Government Shutdown Ahead
Six of twelve appropriations bills have been signed into law already. The final six bills were bundled into a funding package that seemed on track to passage. However, in the wake of another fatal shooting involving Department of Homeland Security (DHS) immigration officers (ICE), discussions fell apart.
A vote on the five-bill bundle and a separate short-term stopgap funding for DHS failed to pass the Senate. A partial government shutdown that includes the Department of Education (Department) will begin on Friday, January 30, 2026.
It is unlikely that the shutdown will last long. The five bills that remain bundled in the package are expected to pass quickly. That includes funding for the Department, which remained close to 2025 levels. Legislators were careful to avoid any ambiguity that could be used to disrupt funding for beleaguered programs like TRIO, Federal Work Study, Federal Supplemental Educational Opportunity grants, and competitive grants for Minority Serving Institutions.
The package also expressly forbids agencies from unilaterally limiting indirect costs. It blocks the Department from transferring funding to other agencies without prior authorization and establishes strict reporting requirements for interagency agreements.
It also includes a provision that stipulates the National Institutes of Health (NIH) must disburse multi-year grants in full on the first year rather than on an annual basis. Critics say the stipulation will reduce the volume of grants NIH can award. Read the bill summary and the explanatory statement. Note that these provisions are subject to change.
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What's Happening in Higher ED
News |
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DEI Lawsuit Update
The Department has withdrawn its appeal of an injunction in a class action lawsuit headed by the American Federation of Teachers. The agency will comply with a ruling that blocks enforcement of the February 14, 2025, Dear Colleague Letter and the requirements set forth in the accompanying certification and FAQ notices. The End DEI portal will also remain closed. Read more.
Indirect Cost Cap Litigation Update
An appellate court left in place a nationwide injunction blocking the NIH from imposing a 15 percent cap on facilities and administrative costs reimbursement. The ruling will likely apply to lawsuits faced by the Department of Energy, the Department of Defense, and other agencies that attempted to impose similar caps. Read more.
TRIO Lawsuit Status Update
A District Court granted a preliminary injunction requested by the Council for Opportunity in Education in its lawsuit challenging cuts to active TRIO grants. The injunction blocks the Department of Education (Department) from enforcing or re-issuing the non-continuation notices it distributed to TRIO grantees. The court found the Department violated federal statutes and procedures when it discontinued TRIO funding for programs based on conformity with the Trump administration’s priorities. The case is ongoing. Read the ruling.
US Postal Services (USPS) Update
Effective December 25, 2025, the United States Postal Service (USPS) updated its operating procedures. Intended to improve efficiency, the update causes a delay in postmarking—long accepted as a verification of a mailing date. The courts, election boards, and some federal agencies, including the Department use the postmark as evidence of compliance with deadlines. USPS recommends requesting a hand-stamped postmark or using certified or registered mail services. Read an analysis by the Brookings Institution.
Restoration of Land-grant Status
A bill introduced in the senate in the state of Virginia would restore Hampton University’s status as a land-grant institution. State legislators emphasized that the measure would not reduce funding for Virginia Tech or Virginia State University. Restoration would provide access to additional funding for research and community support initiatives. The bill has strong support in the senate. Read more.
Conspiracy Charges
The NCAA called on state gambling commissions to restrict wagering on individual athletic performance and eliminate opportunities for predatory bettors in the wake of point-shaving charges brought against players. The association also called on the Commodity Futures Trading Commission to pass laws that protect players from bullying and safeguard the integrity of college sports. Read more.
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Enrollment Trends
The National Student Clearinghouse Research Center released its final report on enrollment trends for 2025. The data show enrollment in short-term certificate and associate degree programs continues to surpass enrollment in four-year degree programs. Graduate enrollment held steady, with the exception of graduate international student enrollment which declined. Read the report.
Campus Security
Several HBCUs were among nearly a dozen institutions of higher education that received bomb threats via email on Thursday, January 22, 2026. Officials say the FBI is investigating the threats which included anti-Black, anti-Asian, anti-Semitic, anti-Jesuit, anti-Muslim, and anti-LGBT messages. Read more.
Collections on Defaulted Loans
The Department announced it will not begin involuntary collections on defaulted federal student loans this month as previously planned. The agency will finalize revisions to repayment plans before resuming involuntary collections.
In-State Tuition for the Undocumented
Virginia Attorney General Jay Jones is seeking to annul an agreement his predecessor made with the Department of Justice (DOJ). Under the accord, undocumented immigrants would no longer be eligible for in-state tuition despite provisions in the Virginia Dream Act of 2020. DOJ has sued at least seven states over similar laws.
H-1B Visa Freeze in Texas
Texas Governor Greg Abbot ordered state agencies and public colleges and universities to freeze consideration of new H-1B visa applications unless they first obtain written permission from the Texas Workforce Commission (TWC). The directive requires state agencies and public institutions to provide information about current H-1B visa holders to the TWC. They must also show that they attempted to hire qualified Texans for positions filled by H-1B visa holders. Read more.
Winter Storm Fern
Several governors preemptively issued state of emergency declarations in advance of a winter storm that disrupted travel and power grids from Texas to Maine. Most colleges and universities that quickly activated business continuity plans reopened by Wednesday, January 28, 2026. However, meteorologist are tracking another winter storm that could hit some of the same areas over the weekend. Read more.
New Overtime Rules
The IRS published information on updated overtime reporting requirements for employers. For tax year 2025, penalty relief will be allowed to assist in the transition. Read more.
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Additional Reading
Reports |
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Demographics and HBCU Administration
HBCU Money published The Decline of African American Administrators, Faculty, and Staff Endangers the Cultural IQ of HBCUs. The author examines options for preserving the cultural ties between HBCUs, the diaspora, the past, and the future.
Presidential Tenure
UNCF Institute for Capacity Building, renowned for its executive leadership initiatives, released a report on presidential turnover in the HBCU sector. The report includes several recommendations for reducing turnover and improving outcomes. Read more.
First Amendment
A study released by Senator Bernie Sanders found that since coming to power in 2025, the Trump administration suppressed free speech and academic freedom at colleges and universities. Cuts and freezes of funding already appropriated by Congress were used as leverage. The report includes an analysis of seventeen cases. Read the report.
Federal Research Funding
A study by Quality Education for Minorities (QEM) examined the different approaches federal agencies take to funding research at HBCUs. According to the report, coordination is needed. QEM suggests outcomes would be improved if a federal agency dedicated to that task was established. Read the report.
State of the Dream 2026: From Regression to Signs of a Black Recession
The Joint Center for Political and Economic Studies published its annual report in recognition of the Reverend Dr. Martin Luther King Jr.’s birthday. The reports states that the current administration’s policies including the DEI ban and reduction in force actions at federal agencies, withdrawal of support for minority-owned businesses, and erasure of demographic data have had an immediate impact on Black communities and institutions. Read the report.
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Who's Who, Who's Where
Leadership |
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Morris Brown College
Days after naming trustee, Ms. Nzinga Shaw interim president, Morris Brown College Board of Trustees reinstated Dr. Kevin James. Dr. James, who served as president for seven years, successfully piloted the institution through the reaccreditation process. Read more.
Fort Valley State University
Dr. Paul A. Jones announced he will retire in June 2026. Dr. Jones has served as president of Fort Valley State University for ten years. During his tenure the university expanded academic offerings, increased enrollment, and improved retention and graduation outcomes. Read more.
Dillard University
Dillard University named Mr. Denis Muckelroy, CPA controller. Mr. Muckelroy, a Southern University alumnus, is an experienced accountant who served several organizations in the corporate sector. Read the announcement.
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Funding, Gifts, and Donations
Grants |
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Elior Collegiate Dining
Bowie State University received a $6,500,000 unrestricted gift from foodservice operator Elior Collegiate Dining. The funds will be used to provide scholarships and renovate campus facilities. Read more.
The Marlene and Spencer Hays Foundation
The Hays Foundation awarded Fisk University a $100,000 grant. The funds will be used to support the establishment of the university’s new student success center. Read more.
The Department of Education
The Department awarded Howard and Bowie State Universities a $4,000,000 four-year grant to support the ASCEND-AI — Advancing Student and Collaborative Educator Networks for Digital AI Integration project. The universities will work together to train students and faculty at their campuses and secondary schools. Read more.
The Department of Agriculture
The USDA 1890 National Scholars program has resumed accepting applications from students pursuing undergraduate degrees in food, agriculture, natural resource science, and other related disciplines. The application portal will be open through March 8, 2026. Read more.
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Initiatives and Agreements
Programs |
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Educator Pipeline
South Carolina State University Department of Teacher Education formed a partnership with the Today’s Students, Tomorrow’s Teachers organization. Under the agreement the participants will work with local and district leaders to identify, recruit, and support future teachers from high school through their post-secondary years. Read more.
Practicum Partnership
Talladega College and Presbyterian Home for Children have entered an agreement that will provide students enrolled in the college’s social work degree program the opportunity to gain professional experience through supervised work at the agency. Read more.
New Academic Unit
Prairie View A&M University announced it will launch University College on April 1, 2026. The college is designed to support students during their first two years of undergraduate study. Dr. Carmen R. Carter, who is the associate vice provost for academic affairs, will serve as the inaugural dean. Read more.
Archives on Display
The Smithsonian National Museum of African American History and Culture will exhibit archival collections from Clark Atlanta, Florida A&M, Jackson State, Texas Southern, and Tuskegee Universities. In addition to photographs and video, the exhibit includes first editions, research journals, and pottery. Titled, At the Vanguard: Making and Saving History at HBCUs, the exhibit will be on display through July 19, 2026. Read more.
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Compliance
Federal Student Aid
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Underuse Penalty Waiver
The deadline to request a waiver of the 2026-2027 award year penalty for underuse of Federal Work Study and Federal Supplemental Educational Opportunity Grant allocations is February 2, 2026.
Training Conference
The Federal Student Aid Conference will be limited to 2,000 attendees. Only one individual per eligible school may attend. The conference sessions will be recorded and made available later but they will not be streamed live. Read the FAQ.
Disbursement Reporting, Excess Cash, and Reconciliation Requirements
FSA published a reminder of the requirements for Title IV programs applicable to both the financial aid and the business offices. These include disbursement reporting and excess cash and reconciliation requirements. Read more.
Foreign Gift and Contract Reporting
The new portal for reporting foreign gifts and contract information is open. Note that disclosure reports are due on Monday, February 2, 2026. Read more.
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Webinars, Forums, Conventions
Events
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Event: Association for Biblical Higher Education Annual Meeting
Date: February 11-13, 2026
Location: Orlando, FL
Information: Details
Event: ACE Annual Meeting
Date: February 26-27, 2026
Location: Washington, DC
Information: Details
Event: Federal Student Aid Training Conference
Date: March 4-6, 2026
Location: Washington, DC
Information: Details
Event: University-Industry Demonstration Partnership (UIDP) Contracting Forum 2026
Date: March 11-12, 2026
Location: Scottsdale, AZ
Information: Details
Event: HBCU Engage 2026
Date: March 25-26, 2026
Location: Cary, NC
Information: Details
Event: The 2026 Association of Blacks in Higher Education (AABHE) Annual Conference
Date: April 11-14, 2026
Location: Baltimore, Maryland
Information: Details
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About this Publication
WPG HBCU News is a monthly email published by the Wesley Peachtree Group, CPAs (WPG) as a service to the sector. It consists of short summaries of news articles, government regulations, and announcements found online.
WPG HBCU News is available at no cost to HBCU administrators, trustees, and senior stakeholders. It is not intended as legal or financial advice. WPG's staff, writers, editors, publishers, web hosts, email distributors, and others involved with the production and presentation of this newsletter are not liable for errors, omissions, losses, injuries, or damages arising directly or indirectly from use of this newsletter or any information presented therein.
WPG is a full-service accounting firm serving privately held businesses and clients in the education, government, faith-based, and not-for-profit sectors. We specialize in higher education with a particular emphasis on minority-serving institutions. We hope you find this publication useful and welcome your feedback. |
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The Wesley Peachtree Group, CPAs
Atlanta Office:
1475 Klondike Road, Suite 100,
Conyers, Georgia, 30094
+1 404-874-0555
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