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Regulatory Updates

• US House advanced bills that support downsizing the Department of Education (ED). 
• Homeland Security published a final rule on student visa duration. 
• Rules governing federal student aid went into effect.
• ED outlined the categories it will focus on during the next round of rulemaking. 

 

House Gives Downsizing ED a Nod

The House Education and Workforce Committee advanced legislation that codifies recent outsourcing agreements and introduces new ones. Notably, TRIO and GEAR UP, Federal Work-study, and Title III would fall under the jurisdiction of the Department of Labor. Led by Rep. Scott (D-NC), Democrats on the committee held a webinar with leaders in government and higher education to discuss the agreements and policy changes. Experts say that even if the package clears the House, it will likely stall in the Senate. Read more on Politico, Higher ED Dive, and University Business.

 

New Restrictions on International Students

The Department of Homeland Security (DHS) published a final rule that ends the duration of status policy that permitted students to stay until they completed their studies. The rule puts a four-year cap on visas. Students who need additional time to complete their program would have to apply to DHS for an extension. They would also need DHS approval to transfer, change their major, or advance to the next level of study. Read more on Higher ED Dive and Forbes.

 

Workforce Pell Goes Live

Under the rule now in effect, states can move forward with putting eligibility parameters and approval and evaluation processes in place. Institutions should note that the rule restricts the duration of programs and the cost of attendance. Programs must maintain 70% completion and 70% post-completion employment rates. Institutions must show that alumni of the programs earn more than their peers who did not attend college. The National Conference of State Legislatures and the Center for American Progress published reports on the processes and infrastructure needed to support the program. Read more on FSA, New America and Opportunity Data.

 

New Accountability Metrics 

The Accountability in Higher Education and Access Through Demand-Driven Workforce Pell: Student Tuition and Transparency System (STATS) and Earnings Accountability rule which supersedes the Biden era Financial Value Transparency and Gainful Employment rule went into effect this month. 

 

Under the rule, institutions must show that, after four years, the median earnings of alumni of undergraduate and certificate programs exceeds the median earning of their peers who did not pursue post secondary education. For graduate programs, institutions must show that, after four years, alumni earn more than individuals aged 25-34 whose degree attainment stopped at the baccalaureate level. All institutions must make either their first STATS or their final FVT/GE data submission by October 1, 2026. 

 

A program that fails the earnings test twice during a three-year period will be ineligible to participate in the Direct Loan program. The rule also establishes a limited appeals process and a pathway for institutions to regain eligibility. Compliance is delayed for programs whose graduates enter fields where tipping is a part of income. Low-earning programs that have not participated in the Direct Loan program within the past five years, will remain Pell Grant-eligible. The same is true for low-earning programs that agree to suspend participation in the Direct Loan program for five years. 

 

Institutions and advocates had pressed for exemptions and alternative performance metrics such as repayment statistics. Critics note that by focusing on early career earnings, the rule may precipitate program cuts that reduce access to higher education or eliminate specializations within an academic field. They also fear triggering workforce shortages in healthcare, ministry-training, early childhood education, and other fields where lower-salaries predominate. Read ED’s announcement and fact sheet, and the Association of Governing Boards’ policy alert.

 

Professional Program Designation

In accordance with a court order, ED expanded to twenty-nine the list of professional programs considered eligible for higher loan limits. Judge Beryl Howell temporarily blocked ED from using a shorter list while a lawsuit filed by a coalition of healthcare professionals is heard. The suit challenges ED’s decision to limit the definition of a professional degree to eleven programs and impose additional restrictions such as program length requirements. Note that the loan limits were not in contention and went into effect as scheduled. Read more on ED and on Inside Higher Ed. 

 

More Rules on the Horizon

ED published a packed 2026 Unified Agenda which includes completion of some initiatives already underway. The agency intends to make additional changes to Title VI enforcement, accreditation, Section 117 obligations, textbook packaging rules, and Title IX . Read more on Higher ED Dive and the Educator’s Room. 

HBCU, Small College, and Higher ED News

News

Coalition Sues Over Withheld Funds

Several organizations sued ED and the OMB over their failure to distribute awards as appropriated by Congress. The groups allege the agencies are deliberately withholding funds that have expiration dates. Citing the Anti-Deficiency Act, the Administrative Procedure Act, and the Constitution, they ask the court to order the agencies to distribute the funds. Read more on Higher ED Dive.

 

Visa Fee Ruling 

Judge Leo T. Sorokin vacated the Department of Homeland Security’s (DHS) $100,000 fee for H-1B visas. The court found the fee was a tax, which only Congress is authorized to levy. DHS asked the court to stay the ruling pending appeal. Read more on Higher ED Dive.

 

Court Vacates Loan Forgiveness Restriction

In two separate cases, federal judges struck down revisions to the Public Service Loan Forgiveness (PSLF) program that would have given the secretary broad discretion to disqualify employers. Judge Myong J. Joun vacated the recent changes to the PSLF program, finding the definition of illegal purpose impermissibly vague. Judge Amir H. Ali also vacated the changes, finding the rule granted the secretary powers that went beyond what is authorized in the statute that established the program. Read more on the Associated Press, Inside Higher Ed, and Democracy Forward.

 

 Borrowers Sue ED

Legislation that ends Biden-era income-driven student loan repayment plans does not go into effect until 2028. However, ED announced that borrowers on a discontinued plan who do not select either the Repayment Assistance, Tiered Standard, or Income-Based Repayment plan will be auto-enrolled in the pricey Standard Repayment Plan. A group of borrowers sued, contending that those forced off the REPAYE plan during litigation should be allowed to switch back to it and, if applicable, should have their loans discharged. Read more on the Department of Education, the Business Insider and Forbes.

 

Backlash Against Agency Outsourcing 

Impeachment articles filed by Representative Suzanne Bonamici (D-OR) against the education secretary call the transfer of nearly all the department’s obligatory duties to other federal agencies illegal. Observers note that reductions in the federal workforce make it unlikely that the agencies have the ability to fulfill additional responsibilities. Read more on Politico, the New York Times, and Higher ED Dive.

 

Mental Health Grants 

Fifteen states filed suit against ED over plans to cut mental health grants despite being enjoined against doing so. The states object to ED’s plan to terminate rather than discontinue the grants. They contend that this violates the intent of the injunction. Read more on the Chronicle (WA).

 

Uniform Guidance

The public pushed back against proposed changes to the administration of federal grants by submitting nearly half a million comments online. The rule would expand reporting requirements and tighten control over subawards, international research, and article publication. It would also give political appointees authority to vet applications to ensure research aligns with the administration’s priorities and is not associated with DEI or theories of disparate-impact liability. Read more on Research America, Inside Higher ED, and ACE.

 

Employee Retention Credit Update

The IRS launched a process for taxpayers to request an extension of the two-year deadline for resolution of pandemic-era Employee Retention Credit denials. Under current regulations, without an extension, the IRS cannot issue a refund after the deadline—even if it finds one is appropriate. Read more on the IRS website.

 

New Tax Filing System

The IRS will retire the Filing Information Returns Electronically (FIRE) system at the end of December. Institutions should be prepared to use the new Information Returns Intake System (IRIS). Institutions may need to adjust timetables to accommodate  the time it takes to get a new Transmitter Control Code from the IRS, train staff, and verify third-party vendor compliance. Refer to the user guide and tutorial.

 

Financial Outlook 

Fitch and S&P Global credit rating agencies issued negative outlooks for the higher education sector. They named enrollment, inflation, and federal policy as factors. In its annual College Financial Grades, Forbes reported that 27% of the institutions in its study scored the lowest grade possible. Read more on Career Ahead, Higher ED Dive, and Academic Jobs. 

 

PhD Admissions Decline

Acceptance rates for doctoral applicants fell 15 percent year-over-year. The decline was driven by disruptions in federal grant-making and restrictions on international students. Read more on the Association of American Universities, the New York Times, and Inside Higher ED.

 

Accreditor Prepares for Name Change

The Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) Board of Trustees voted in favor of adopting a new name and logo. The branding update will not impact the accreditation status of member institutions. The new name, Commission on Colleges and Universities (The Commission) and the new logo will be unveiled this fall. Read more on SACSCOC. 

 

Another Cyber Attack

An attack that breached Oracle PeopleSoft application may have exposed the data of several colleges and universities. The attack has been attributed to ShinyHunters the hackers behind the recent Canvas breach. Experts advise PeopleSoft users to disconnect affected servers and initiate incident response routines. Read more on Higher ED Dive. Note that FSA updated its cybersecurity advisory.

 

Affirmative Action and Disparate Impact Guidance

The Equal Employment Opportunity Commission (EEOC) voted to rescind affirmative action guidance that protected employers from accusations of reverse discrimination. The rescission does not change Title VII or overturn Supreme Court decisions that support voluntary affirmative action policies. Employers may also continue to be bound by state law. 

 

The rescission comes in the wake of an opinion issued by the Department Justice (DOJ) that found the EEOC interpretation of disparate impact, used to support age discrimination complaints is unconstitutional. DOJ wrote that a practice must not only be shown to directly result in unequal outcomes but a viable alternative must also be offered. Read more on the Society for Human Resource Management and the College and University Professional Association for Human Resources. 

 

Florida’s Stop WOKE Act

A federal appellate court permanently enjoined enforcement of Florida’s Stop WOKE Act at institutions of higher education, calling it a violation of the First Amendment. The legislation, which is still applicable to K-12 institutions, placed restrictions on the discussion of race, color, sex, and national origin in classrooms and workplaces. Read more on Higher ED Dive and Politico.

 

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Bowie State University

Maryland awarded Bowie State University over $2,300,000 in competitive grants. The funds will be used to support programs in the Department of Nursing. 

 

Winston-Salem State University

North Carolina appropriated nearly $45,000,000 to Winston-Salem State University. The funds will be used to make capital improvements, expand student scholarships, increase employee compensation, and develop nursing programs. 

 

Tuskegee University

The Department of Defense awarded a $872,562 grant to Tuskegee University College of Arts & Sciences. The funds will be used to purchase a computer capable of advanced artificial intelligence simulations and a DNA sequencing machine. 

 

Savannah State University

Georgia appropriated $42,800,000 to Savannah State University. The funds will be used for critical infrastructure upgrades and facilities improvement. 

 

Southern University at Shreveport

Community Foundation of North Louisiana awarded a $35,000 grant to Southern University at Shreveport. The funds will be used to provide gap scholarships.

 

Prairie View A&M University

Shell Global Solutions awarded a $320,000 grant to Prairie View A&M University. The funds will be used to support developing cleaner alternatives to traditional jet fuel.

 

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Spelman College

Spelman College named Dr. Ayanna Howard president effective August 1, 2026. She hails from Ohio State University where she held the Monte Ahuja Endowed Dean’s Chair. She is an experienced researcher and administrator who has served in government, higher education, and industry.

 

Council for Higher Education Accreditation

Ms Antoinette Flores was named vice president of federal policy and government relations by the Council for Higher Education Accreditation. She specializes in higher education and federal policy. 

 

Texas Southern University

Mr. J’Maine Chubb is the new chief financial officer and vice president of business & administration at Texas Southern University. He is a certified public accountant who has served in senior executive positions in the corporate sector. 

 

Savannah State University

Ms. LaTora S. Green was appointed director of financial aid at  Savannah State University, her alma mater. An experienced administrator, she previously served as president of the Louisiana Association of Student Financial Aid Administrators.

 

Xavier University of Louisiana

Mr. Ronald M. Carrere, Jr., was named chief of staff and vice president of government and community relations for Xavier University of Louisiana. The appointment is a promotion from his role as associate vice president of government and community relations. He has many years experience as an administrative leader and liaison. 

 

LeMoyne Owen College

Roderick Smothers, Jr., was named LeMoyne Owen College’s director of athletics. Prior to this appointment he served as an assistant athletic director at Alabama A&M University and as director of athletics for Philander Smith University.

 

Edward Waters University

Dr. Brian L. Johnson was named executive vice president and chief operating officer and Mr. Lloyd H. Nesbitt was named vice president for campus operations and facilities management at Edward Waters University. Dr. Johnson’s leadership experience includes stints as president of Warner Pacific and Tuskegee Universities. Mr. Nesbitt is an experienced facilities management executive. He most recently served as associate vice president of facilities management at Alcorn State University. 

 

Rust College

Dr. Jacqueline G. Powell was named interim vice president for academic affairs at Rust College. Dr. Powell has over two decades of experience in academic administration and leadership. 

 

Shaw University

Dr. Jillian Jackson has been named dean of students at Shaw University. She previously served in the university’s office of academic success and as director of digital teaching and learning.

 

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HBCU Work-Integrated Learning (WIL) Accelerator

UNCF’s Institute for Capacity Building announced it will launch the HBCU WIL Accelerator during UNITE 2026. The multi-year initiative will help HBCUs improve student success, institutional capacity, and collaboration. 

 

AI Doctoral Degree

Shaw University Divinity School will launch the Doctor of Education in Artificial Intelligence and Moral Agency program in the spring of 2027. The program will prepare non-traditional adult learners to serve in roles where moral reasoning needs to be applied to the rapidly advancing technology. 

 

Business and Religion

Jarvis Christian University launched an MBA and Master of Arts in Religious Studies dual degree program. The program will prepare students to serve in nonprofit administration, ministries, and other positions that require advanced business expertise and strong values-based leadership.

 

Cosmetic Science

Tuskegee University launched a cosmetic science program. It will prepare students to serve in various roles associated with bringing products to market including sourcing and marketing. The university is working with Spelman College and other HBCUs to form an HBCU Cosmetics Science Consortium. 

 

Doctoral Degree in Bioengineering

North Carolina A&T State University College of Engineering will offer a doctor of philosophy degree in bioengineering. The program will prepare students to work as researchers and innovators in healthcare, biotechnology, and engineering.

 

Transfer Opportunities

Florida A&M University (FAMU) signed an enhanced memorandum of understanding with Pasco-Hernando State College (PHSC) that creates a pathway for students seeking to earn bachelor’s degrees. Under the Ignite 2+2 Pathway agreement, students who finish their associate degree at PHSC can easily transfer to select bachelor degree programs at FAMU. The agreement includes coordinated advising. 

 

Civic Engagement

Alabama State University and Unite, Inc., signed a memorandum of understanding that creates a civil discourse initiative. Founded by an Alabama State University alumnus, Unite, Inc., is a nonprofit that focuses on connecting students with HBCUs and fostering civic engagement. Under the agreement, the signatories will create a national HBCU Civil Discourse Speakers’ Bureau, establish two endowed professorships, provide civil discourse training, offer graduate assistantships, and hold an annual civil discourse conference. 

 

Dance Degree

Hampton University School of Liberal Arts and Education will launch a new Bachelor of Arts in Dance program. The multidiscipline program includes ballet, contemporary dance, African dance, jazz, hip-hop, dance practicum, choreography, and performance studies. The university will welcome its inaugural cohort this fall.

 

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HBCU Digest 

The digest recently published its annual HBCU Executive Leadership Turnover Report.

 

The Thurgood Marshall College Fund (TMCF) 

Dr. N. Joyce Payne Research Center at TMCF published Ready to Scale, Poised to Lead: Assessing AI Readiness at Our Nation’s HBCUs. 

 

Department of Education Office of Inspector General

The assistant inspector general for audit released Review of U.S. Department of Education Changes in Staffing and Operations.

 

National Association of Student Financial Aid Administrators (NASFAA)

NASFAA’s Task Force on the Use of Artificial Intelligence in Financial Aid Offices posted Use of Artificial Intelligence in Financial Aid Offices: Findings from a Survey of Financial Aid Professionals. 

 

The 1890 Universities Foundation

The 1890 Land-grant Communications Committee published  The 1890 Voice: Where Innovation Drives Impact , its annual report on the accomplishments and impact of the Black land-grant universities. 

 

Black Legislative Leaders Network 

Government Technology published Workforce Pell an Opportunity for HBCUs. an essay written by a Black Legislative Leaders Network board member.

 

State Higher Education Executive Officers Association (SHEEO)

SHEEO published Effective Leadership in State Higher Education: Advice from the Field by Scott Jenkins.

 

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