Managing Change in Higher Education: Strategies to Endure Uncertain Times
Big Beautiful Bill Act Becomes Law
Law

The Department of Education (Department) announced it will begin to implement the provisions of the recently enacted One Big Beautiful Bill Act. Key changes to federal financial aid eligibility and calculation, student loan access and repayment, and tax obligations are listed below.

 

Federal Financial Aid

Requires inclusion of foreign income in Pell Grant determination and eliminates the student aid administrator's ability to use professional discretion in this instance.

 

Creates a rule whereby a student who receives grant aid that meets or exceeds the cost of attendance from other sources is ineligible to receive a Pell Grant. Although the student is ineligible to receive the grant, it counts toward the student’s total Pell Grant eligibility period.

 

Establishes workforce Pell Grants.

 

Establishes metrics for determining low performance programs based on earnings data. Students would be unable to use federal student aid to pay for programs that fail to meet the minimum performance requirement.

 

Excludes certain small business assets such as family farms and fishing businesses from student financial aid calculations.

 

Ends the PLUS loans programs for graduate and professional students.

 

Modifies the limit on the total amount students can borrow for graduate degree or professional credential programs.

 

Sets a limit on the total amount students can borrow.

 

Sets an annual loan limit for parent borrowers.

 

Sets a total lifetime limit for Parent PLUS loans that includes repaid, forgiven, canceled, and discharged loans.

 

Sets a deadline for current borrowers to consolidate Parent PLUS loans to retain access to income-driven repayment plans and Public Service Loan Forgiveness program.

 

Excludes future Parent PLUS loans from all income-driven repayment options and from Public Service Loan Forgiveness.

 

Permits part-time students to borrow proportionate to enrollment.

 

Permits colleges and universities to limit loans—provided they do so on a consistent basis.

 

Establishes a repayment assistance plan but permits borrowers with specified loan origination dates who are already in repayment programs to continue to use those programs.

 

Requires applicants to the Public Service Loan Forgiveness program to enroll in one of the recognized repayment plans. Authorizes the Secretary to enroll them if they fail to do so by the specified date.

 

Federal Tax

Extends the exclusion of loans discharged due to death or disability from taxable income calculations

 

Updates the tax on highly compensated employees employed by tax-exempt organizations

 

Changes the applicability and calculation of the endowment tax.

 

Updates the tax deductions available to individual donors and sets a minimum amount corporations must donate to be eligible to claim a tax deduction.

 

Updates tax deductions for employers who help their employees repay student loans.

 

Expands the definition of qualified expenses in regard to 529 savings plans.

 

Establishes a Social Security number disclosure requirement for unlocking access to certain tax credits.

 

Permits eligible employees to claim a tax deduction on overtime—the half portion of time-and-a-half. Requires filers to include Social Security number and, if married, they must file jointly. Requires employers to file information returns with the IRS or the SSA and furnish statements to employees showing the total amount of qualified overtime compensation paid during the year.

 

Creates a maximum $1,700 tax credit for individuals who make qualified contributions to an eligible scholarship granting organization.

 

Other

Reverts the borrower defense rule to the version in place in 2020 and postpones implementation until July 1, 2035.

 

Postpones closed school discharge rule to July 1, 2035.

 

Eliminates funding for SNAP-ED, a Department of Agriculture program that provided Supplemental Nutrition Assistance Program grants to university extension programs. The funds were used for food pantries, cooking and nutrition education, community gardens, and assistance to local farmers and families.

 

Adds work requirements to Medicaid.

 

For more information consult the following sources:

 

American Council on Education

College and University Professional Association for Human Resources

National Association of College and University Business Officers

Internal Revenue Service

Social Security Administration

Chronicle of Higher Education

Higher ED Dive

Inside Higher ED

Diverse Issues in Higher Education

 

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News
News

Prototype of New Model for Calculating Indirect Cost

The Joint Associations Group on Indirect Costs (JAG) unveiled a potential replacement for the current method of determining reimbursement for indirect cost. JAG submitted the results—dubbed the Financial Accountability in Research (FAIR) model—to Congress. The executive summary is available here. Presentations associated with the deliberation process, including webinars, slides, testing, and feedback are available here. A list of participants is available here.

 

Online HBCU Portal Launch

A consortium of HBCUs recently announced the opening of eHBCU, an online portal providing access to a selection of their degree, certificate, and career-aligned programs. Founded by Delaware State University, Southern University and A&M College, Southern University at Shreveport, Southern University at New Orleans, Alabama State University, and Pensole Lewis College of Business & Design, the programs are completely online.

 

HBCUs Launch Investment Management Programs

During the UNCF 2025 UNITE Conference, Ms. Rosalind "Roz" Brewer, interim president of Spelman College and Mr. Phil Gross, co-founder of Adage Capital Management led a discussion about the benefits of offering investment management programs at HBCUs. Central to the discussion was Project ACCLAIM  (Accelerating Learning in Asset,  Investment Management), an initiative aimed at developing such programs at HBCUs. Similar programs at non-HBCUs have graduated successful investment managers who became top donors to their alma maters. Project ACCLAIM will launch at Spelman, Clark Atlanta University, Morehouse College and Howard University.

 

Senior Reserve Officers’ Training Corps Update

Several HBCUs will be affected by changes the military is making to its Senior Reserve Officers’ Training Corps (ROTC). The changes are expected to take effect during the summer of 2026. ROTC programs at Elizabeth City State University, Saint Augustine’s University, and West Virginia State University will be deactivated. ROTC programs at Tuskegee University, University of Arkansas at Pine Bluff, Howard University, Lincoln University of Missouri, Alcon State University, Prairie View A&M University, Norfolk State University, and Hampton University have been reclassified as extension units. As such, enrolled cadets will be permitted to continue their education on campus but the program will be administered by a host institution. ROTC programs at Central State University and Southern University and A&M College have been reclassified as crosstown relationships. Cadets at those institutions will receive training and education at a nearby host institution. The move is part of a rebalancing effort necessitated by reductions in workforce and funding.

 

Highest Court Lifts Injunction

In response to a Department of Education (Department) request, the US Supreme Court (SCOTUS) lifted a preliminary injunction that blocked it from continuing efforts to dismantle the agency while the case challenging its authority to do so proceeds. The injunction included an order to reinstate fired employees and halt plans to outsource key functions to other agencies. Justices Sotomayor, Brown and Kegan dissented. The stay allows the Department to formally announce adult education and career and technical education programs will be administered by the Department of Labor and move forward to outsource other responsibilities. 

 

Athletics Programs Opt-in

Sports Illustrated posted a list of FCS programs that have opted into the House settlement.

 

2026 Appropriations Process Moves Forward

Appropriations committees in both chambers advanced bills for the Department of Commerce, Justice, Science, and related agencies—which includes the National Science Foundation (NSF) the National Institute of Standards and Technology (NIST), and the National Aeronautics and Space Administration (NASA).

 

The Senate released the 2026 appropriations bill for the Departments of Commerce, Justice, Science, and related agencies. It included a reduction in funding for the NSF, which provides grants to institutions of higher education. However, the reduction was not as steep as cuts proposed by the president. The press release and a table of spending requests by Senate committee members is available here.

 

A few days earlier, the House released the 2026 appropriations bill for the Departments of Commerce, Justice, Science, and related agencies. It includes a 23 percent reduction in funding for the NSF. The press release and a table of the spending requests by House committee members is available here.

 

No Consensus on Public Service Loan Forgiveness Program

The negotiated rulemaking process convened to consider changes to the Public Service Loan Forgiveness program ended without consensus. A major sticking point was whether the Department has the authority to restrict the eligibility of nonprofits that currently qualify based on their 501(c)(3) status. The Department pushed to include language that would give the secretary authority to disqualify 501(c)(3) nonprofits based on their support of controversial ideas.  In absence of a consensus, the Department is free to craft its own rule, which could go into effect as early as July 1, 2026. Files related to the session can be viewed here

 

NSF Policy Update

A recent update to the NSF website provides answers to frequently asked questions about recent changes in policies and grant terminations and an update to research security policies that go into effect in October. The FAQ provides information on the indirect cost rate institutions should use for proposals while challenges to the NSF’s imposition of a flat 15% rate work their way through the courts. NSF also provided a list of terminated grants that includes nearly seventy grants awarded to HBCUs.

 

NSF scientists delivered a letter to House Committee on Science, Space and Technology to express concern over recent cutbacks, funding freezes, and sudden changes in location and policy at the agency. Of major concern was a new system where unqualified political appointees conduct post review screening. The scientists say the screening is ideological and undermines the integrity of grant application process. Most of the signatories opted to remain anonymous for fear of reprisals.

 

Columbia will Pay

Columbia University announced an agreement with the federal government that will restore canceled grants. The university will pay $221,000,000 over three-years—with $21,000,000 of that going to settle faculty antisemitism civil rights complaints. The university also agreed to submit to federal monitoring, to end DEI programs, and reduce foreign student enrollment. 

 

 

Title IX

In response to a Department finding that it violated Title IX, the University of Pennsylvania has agreed to rescind swimming records set by a transgender athlete. When the records were set, they were in accordance with Title IX and NCAA rules in effect at the time. The university will award the championship to the biologically female competitors; issue apologies; and note the accomplishment of the transgender athlete. After agreeing to the terms, $175,000,000 in federal funding was restored.

 

 

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Leadership
Leadership

 

Southern University at New Orleans named Dr. Joseph Bouie, Jr., chancellor. Dr. Bouie is a Louisiana state senator currently serving District 3. He takes the reins from Dr. James H. Ammons, Jr., whose term ends on July 31, 2025. Dr. Bouie previously served as chancellor of the university from 2000 to 2002.

 

Rust College named Dr. Johnny M. Moore president. An HBCU alumnus, Dr. Moore hails from Arkansas State University-Newport, where he served as chancellor. Prior to that appointment, he served as president of Pierpont Community & Technical College and as president of his alma mater, Philander Smith University.

 

Bethune-Cookman University named Dr. Albert Mosley president. Dr. Mosley is an experienced administrator who previously served as president of Morningside University. Dr. Mosely, who took the reins from Dr. William Berry, began his tenure on July 7, 2025.

 

Bennett College named Dr. Teresa Hardee interim president. Dr. Hardee is an experienced administration and certified public accountant who has served in academia and the corporate sector. She hails from Claflin University where she served as executive vice president and chief operating officer. She holds certifications from Harvard’s Institute of Education Management and the Council for Six Sigma Certification.

 

American Baptist College named Rev. Dr. Derrick Jackson interim president. Dr. Jackson is the senior pastor of First Baptist Church in Gallatin, Tennessee. He currently chairs the American Baptist College Board of Trustees’ audit and compliance committee. He takes the reins from Dr. Forrest E. Harris, Sr., who has retired.

 

Central State University named Dr. Adrian Petway vice president for administration and finance and chief financial officer. Dr. Petway is an experienced administrator currently serving as Virginia State University’s associate vice president for finance and administration.

 

Huston-Tillotson University named Dr. Antonius Pegues vice president of finance and administration. He hails from Albany State University where he served as vice president for finance and administration. Prior to that, he served Southern University-Shreveport as vice president for finance and administration and at Louisiana State University as director of operations and business.

 

Morehouse School of Medicine named Ms. Jamie Allen, JD, LLM senior vice president and chief legal officer. An experienced attorney, she will provide legal oversight for Morehouse Healthcare. Ms. Allen previous served as vice president of legal services for BJC Health System and as vice president and general counsel for Saint Luke’s Hospital of Kansas City.

 

The American Association of Community Colleges named Dr. DeRionne Pollard president and chief executive officer. She takes the reins from Dr. Walter Bumphus who has retired. Dr. Pollard is president of Nevada State University and has previously served as president of Montgomery College and Las Positas College.

 

 

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Grants
Grants

Tuskegee University

The United States Air Force donated three flight simulators to Tuskegee University. The simulators will be housed in the Chambliss Annex. They will be used to provide students in the Aerospace Science Engineering Department programs immersive practice and hands-on research.

 

Claflin University

Sigma Gamma Rho Sorority Inc. established the Mary Louise Layton Memorial Scholarship at Claflin University. The scholarship will be awarded to an eligible first or second year student. The award is named in honor of alumna Mary Louise Layton, who passed away recently.

 

Texas Southern University

The Cancer Prevention and Research Institute of Texas awarded $2,000,000 to Texas Southern University to support its Breast Cancer Screening and Prevention Center. The center provides no-cost screening and education in underserved communities. The award will be used to expand services to nine of the ten counties that comprise the Greater Houston area.

 

The BeyGOOD Foundation donated $100,000 to Texas Southern University’s Ocean of Soul Marching Band. The foundation was founded by singer-songwriter Ms. Beyoncé Knowles-Carter. The band received accolades for its performance during the Beyoncé Bowl—the inaugural NFL 2024 Christmas Day Halftime Show.

 

Mississippi HBCUs

Mississippi Governor Tate Reeves announced the state would provide $9,100,000 in grants to institutions of higher education through the new Mississippi AI Talent Accelerator Program (MAI-TAP). The program will support development and expansion of AI, machine learning, and web services throughout the state. Jackson State University will receive $1,300,000; Alcorn State University will receive $1,150,000; and Tougaloo College will receive $1,080,000.

 

Dillard University

Lilly Endowment Inc. Awarded a $1,250,000 grant to Dillard University to establish Vision Quest. The funding will help the university develop programming that support spiritual and faith experiences for children ages 12 and under.

 

Elizabeth City State University

The National Institutes of Health (through Vanderbilt University) awarded a $250,000 grant to Elizabeth City State University to analyze genetic data of prostate cancer patients to develop early detection and personalized treatment.

 

North Carolina A&T State University

The State Library of North Carolina awarded a Library Services and Technology Act grant to North Carolina A&T State University. The $115,557 award will be used to create a Library Data Lab on the lower level of the university’s Bluford Library. Open to all majors, researchers, and instructors, the lab will provide technology and software for advanced data analysis and visualization.

 

Florida A&M University

Alumna Sharon Lettman-Hicks donated $50,000 to Florida A&M University’s Marching 100. The gift will be used to support the university’s Beyond the Uniform: 100 for 100 fundraising campaign.

 

Norfolk State University

Langley Federal Credit Union further demonstrate support for Norfolk State University by adding $25,000 to a prior commitment and extending its partnership through 2030. The funds will be used to support the Langley Scholars Demand Fund.

 

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Programs
Ptograms

Sport Management Degree Program

In partnership with Stillman College School of Business, the School of Education’s Department of Kinesiology will offer a bachelor of science in sport management. The program will launch this fall. It is aimed at individuals seeking to launch or further a career in coaching, athletics administration, or sports businesses.

 

Digital Media Program

Southern University and A&M College Department of Visual and Performing Arts and Department of Mass Communication are offering an interdisciplinary bachelor of arts program in digital media. The program offers five areas of concentration: digital screen arts production, digital performance fusion,

visual arts and motion graphics, digital sports production, and recording arts.

 

Education Studies Program

North Carolina A&T State University announced it will add a bachelor of science in educational studies to the programs offered by its College of Education’s Department of Education Preparation. The non-licensure degree program will prepare students for further study and for careers in education policy, nonprofit administration, educational technology, community-based education, and specialized education services. The program will offer three areas of concentration: technology and innovation, leadership and policy, and family and community. It is expected to welcome its inaugural cohort in the fall 2026 semester.

 

Entrepreneurship and Commercialization

Miles College 2150 Center for Innovation, Commercialization & Growth has been selected as the pilot site for the MentoPRO platform launch. The program provides a framework for students to interact with peers, alumni, professors, and experts. The program, which features AI tools specifically designed for HBCUs, will help them develop entrepreneurial skills and create a network that supports innovation and commercialization. 

 

Health Care Access and Internships

Texas Southern University is collaborating with Legacy Community Health to improve health care access in Houston’s Acres Homes neighborhood, an area that has been chronically underserved. Legacy Community Health is building a clinic which will provide university students with internships and other hands-on opportunities.


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Federal Student Aid (FSA) and Compliance

 

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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.

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Managing Change in Higher Education: Strategies to Endure Uncertain Times
Managing Change in Higher Education: Strategies to Endure Uncertain Times
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