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→ The director of the National Science Foundation American has stepped down. The agency, which is undergoing a DOGE review, announced a change in priorities. It has paused processing grant proposals and terminated hundreds of grants, homing in on DEI and misinformation studies. Analyst say the actions follow a pattern mapped out in
D.E.I. Division Extremism Ideology: How the Biden-Harris NSF Politicized Science, a report released by Senator Ted Cruz. They issued their own report,
Defending the Hidden Figures: A Rebuttal of Erroneous Attacks on Merit-Based, Fair, and Competitive STEM Grants to point out errors and problems with the methodology used in the Cruz report.
→ Four faculty senates of the eighteen Big Ten institutions passed resolutions calling for the creation of mutual defense agreements. They urged presidents to form an alliance capable of marshaling funds and expertise to counter threats to research, autonomy, and free speech. Other faculty senates plan to take up the matter in the near future.
→ The American Association of Colleges and Universities published
A Call for Constructive Engagement, an open statement signed by a still-growing list of college presidents and scholars. The statement declares the signatories welcome constructive reform but oppose the use of public research funding as instruments of intimidation and coercion.
→ NBC News published an article on the impact the changes in the federal government are having on HBCUs—particularly in regard to federal funding. Several institutions have already lost research grants and there is uncertainty over continuity of federal programs under a greatly reduced or terminated Department of Education. While there no word yet of a formal mutual defense agreement, administrators and advocates have met several times to address the situation. Recent conferences and webinars include WPI’s Managing Change In Higher Education: Strategies to Endure Uncertain Times; AABHE’s Annual Conference Breaking Boundaries: Cultivating Inclusive Leadership; and Virginia Union University’s the State of B.L.A.C. Higher Education Summit.
→ The American Council on Education and the Carnegie Foundation for the Advancement of Teaching released the new Carnegie Classifications. They include a migration from the former Basic Classification to the new Institutional Classification. This aims to provide a more robust profile of institution. A Student Access and Earnings Classification provides information on student demographics and graduates’ earning potential. Institutions that excel at fostering economic mobility are acknowledged by assignment of an Opportunity Colleges and Universities designation.
→ The Equal Employment Opportunity Commission and the Department of Justice released guidance on the discrimination in the workplace focused on DEI.
What To Do If You Experience Discrimination Related to DEI at Work and
What You Should Know About DEI-Related Discrimination at Work
focus on protections afforded by Title VII of the Civil Rights Act. Notably, neither document defines DEI. The lack of a definition has been cited in several of the ongoing lawsuits. The College and University Professional Association for Human Resources discussed the issue.
→ The Departments of Education and Health and Human Services launched an investigation into the Harvard Law Review’s use of race in its editorial decision-making process. They also sent questions regarding content, acceptance of competing viewpoints, and funding to three medical journals.
→ The website Grant Watch maintains a list of terminated grants and offers other resources.
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Overview
President Trump signed several executive orders that impact higher education. In brief, the orders:
Secretary McMahon released comments on the order and Forbes published an analysis. The sections below provide details.
HBCUs
→ The executive order establishing the White House Initiative on Historically Black Colleges and Universities is similar to its predecessors—with the exception that it returns the initiative back to the White House. The White House also published
Trump HBCU Fact Sheet and a form to collect contact information of those interested in participating in the National HBCU Week Conference.
→ The executive order suggested the administration will work with the Department of Agriculture and states to ensure 1890 Land-grant HBCUs receive the funding they are entitled to. However, no mention was made of restitution for past inequity.
→The executive order directs the Environmental Protection Agency to terminate its nascent HBCU advisory council.
→ While the White House has re-established the initiative for HBCUs, it has not done so for other types of minority-serving institutions, all which were rescinded.
Accreditation
President Trump signed an executive order criticizing accreditors for their diversity policies. In particular, the order named the Council of the ABA Section of Legal Education and Admission to the Bar (ABA), the nation’s only law school accreditation agency; the Liaison Committee on Medical Education (LCME), the only federally recognized accreditor for medical schools; and the Accreditation Council for Graduate Medical Education (ACGME), the body that sets standards for medical residency and fellowship programs. It orders the Departments of Education (Department) and Health and Human Services to suspend or terminate recognition of them and any other accreditors that fail to terminate DEI policies.
The accompanying fact sheet appeared to blame accrediting agencies for low graduation rates and high student debt. In response, the Council of Regional Accrediting Commissions released a statement defending the accreditors and urging the administration to adhere to current regulations.
Key Points and Background:
→ Inside Higher Ed published an overview of reactions and responses to the executive order.
→ Although the ABA temporarily suspended enforcement of its diversity standard in the wake of an earlier executive order, it recently reaffirmed its commitment. Tensions between the federal government and the ABA have been building amid the termination of grants used to train lawyers to represent victims of violence and the dismantling of USAID. ABA was one of the organizations that won a temporary restraining order blocking the federal government from withholding USAID grants.
→ States that oppose DEI have also targeted the ABA over its diversity standard. The supreme courts in both Florida and Texas are considering alternatives to requiring a degree from an ABA-accredited law school as a prerequisite for the state bar. However, the Association of American Law Schools continues to support the accreditation requirement.
AI and Apprenticeships
→ The executive order promoting workforce development and apprenticeships directs the heads of the Departments of Labor, Education, and Commerce to collaborate on a plan to train one million new apprentices annually. The order also directs the agencies to evaluate and report on the current apprenticeship system, possible ways of integrating artificial intelligence (AI), alternative credentials and assessments, and retraining for incumbent workers.
→ A separate order on AI established the White House Task Force on Artificial Intelligence Education. The task force will be charged with:
- Establishing public-private partnerships with AI industry leaders
- Setting up a Presidential Artificial Intelligence Challenge competition
- Finding industry and federal resources to commit to K-12 AI education
- Expanding registered apprenticeships in AI-related occupations across industries
- Prioritizing the use of AI in teacher training
Foreign Gift Reporting
→ The executive order regarding foreign gift reporting calls on the Secretary of Education and other agency heads to ensure certification of compliance with the rule and hinging receipt of federal funding to disclosure. Although, much of the order echoes rules already in place, it shifts responsibility for enforcement from Federal Student Aid to the Department's Office of General Counsel. The Department announced foreign gift reporting investigations into Harvard University and University of California, Berkeley.
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Dear Colleague Letter
→ Judge Landya McCafferty issued a preliminary injunction blocking the Department from enforcing the provisions in its Dear Colleague Letter while a lawsuit filed by the National Education Association, the American Civil Liberties Union, the Center for Black Educator Development, and others moves forward.
→ In a similar lawsuit brought by the American Federation of Teachers, the American Sociological Association, and others, Judge Stephanie A. Gallagher issued a temporary stay on the deadline for compliance with the Dear Colleague Letter effective nationwide. The court did not rule on the requirement that institutions certify compliance, citing an absence of facts related to it in the amended complaint. As was noted in earlier rulings, such certification could be used against signatories under the False Claims Act.
Indirect Cost Rate
→ In a lawsuit filed by higher education associations and institutions, Judge Allison D. Burroughs issued a temporary restraining order blocking the Department of Energy from setting a blanket indirect cost recovery rate of 15%. The restraining order applies nationwide.
→ Judge Angel Kelley permanently enjoined the National Institute of Health (NIH) from adopting a 15% indirect cost recovery rate, effective nationwide. The NIH has appealed.
→ Several higher education experts and organizations are collaborating on a new model for calculating indirect cost reimbursement that promises to be more efficient and easier to understand and implement.
NIH Grants
→ Sixteen states sued the NIH over delays in approval of new research grants and termination of previously issued grants. A similar lawsuit was filed by scientists and research organizations. Both are seeking injunctive relief. The science journal Nature published a review of the litigation.
Teacher Grants
→ The US Supreme Court granted the Department of Education an administrative stay that permits it to withhold teacher training grants while a lawsuit challenging their termination proceeds. Characterizing them as divisive DEI initiatives, the Department terminated the grants in February. Several states sued and Judge Myong Joun ordered the funds disbursed while the case went forward. The Department lost its initial appeal but won this stay from the highest court.
Foreign Students
→ Thousands of foreign students have had their visa records restored amid several legal challenges to the mass terminations. Typically, updating a student's status in the Student Exchange and Visitor Information System (SEVIS) is done by colleges. However, the Department of Homeland Security (DHS) drew names from a federal crime database and without vetting the results removed those on the list from SEVIS. This impacted students who had been exonerated, had charges dropped, or were suspected but never charged. DHS has also sent letters to advisers demanding access to student records. The Presidents' Alliance on Higher Education and Immigration is among the groups that have sued over the matter. Some institutions are advising their international students to remain in the country over the summer break.
→ Some lawsuits filed on behalf of students in Oregon whose visas were revoked without notice have been successful in halting deportations. In most cases the government has been required to reinstate the visas.
→ Attempts to rollback a policy that allows Immigrations and Customs Enforcement (ICE) agents to conduct enforcement activities at previously exempted sensitive locations such as schools, churches, courthouses, and community centers have had mixed results.
→ In Florida, several public universities signed agreements with ICE that authorize campus police to question and detain immigrants. The move aligns with new state laws that have been challenged in court and are subject to a temporary restraining order.
DEI
→ An appeals court has granted the federal government a stay while the lawsuit filed by the National Association of Diversity Officers in Higher Education and others challenging the federal about-face on DEI works its way through the system. A preliminary injunction was issued in February. The stay was granted on appeal.
Department of Education
→ The NAACP and others sued the Department of Education over the planned closing of the agency. They contend that workforce reduction and grant terminations that impair the agency’s ability to function are illegal. They asked the court to enjoin the government from making further cuts while the case goes forward.
→ The Association for Education Finance and Policy (AEFP) and the Institute for Higher Education Policy (IHEP) sued the Department over cuts made to the Institute of Education Sciences. The groups seek restoration of contracts, staff, and resources.
NCAA
→ Although the parties agreed to settle, Judge Claudia Wilken withheld approval of the settlement between the NCAA and current and former student athletes. Judge Wilken said she would not approve a settlement that includes immediate enforcement of roster limits. She previously suggested grandfathering in current athletes to ensure they do not lose their spots on the roster. The NCAA, however, has insisted on implementing the limits immediately. If the agreement is not approved, the case will go to trial.
→ The NCAA has agreed to settle an antitrust complaint brought by so-called volunteer baseball coaches. At issue are bylaws that restricted Division I schools to paying three baseball coaches but allowed them to hire a fourth unpaid coach. The proposed settlement offers pay to the volunteer coaches who served at Division I schools between November 29, 2018, and July 1, 2023, pending court approval. ClassAction.org discussed the details.
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→ Oakwood University’s Board of Trustees named Dr. Gina Spivey-Brown president, effective July 1, 2025. Dr. Spivey-Brown most recently served as the dean of Howard University’s College of Nursing and Allied Health Sciences.
→ The University of Arkansas Board of Trustees appointed Dr. Anthony Graham chancellor of the University of Arkansas at Pine Bluff. Dr. Graham hails from Winston-Salem State University, where he served as a tenured professor of education.
→ The Council for Higher Education Accreditation (CHEA) announced Dr. Nasser Paydar as its next president. He previously served as an assistant secretary in the Department of Education and as chancellor of Indiana University–Purdue University. His tenure begins August 1, 2025.
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WPG joins the North Carolina community in mourning the passing of administrator and educator Dr. John Harding Lucas, Sr.. The Durham public school system dedicated a middle school and a high school wellness center in his honor. Dr. Lucas also served as a trustee and as interim president at Shaw University, his alma mater. In 2013, the state of North Carolina recognized his contributions by awarding him its highest honor. Dr. Lucas was 104.
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Federal Student Aid and Compliance
→ FSA announced the final funding worksheets and Statement of Account for the Campus-Based programs are available on the COD website. FSA also published an explanation of the worksheets and information on the Expected Family Contribution. Note that, unless a waiver has been granted, an institution that returned more than 10% of it’s 2023-2024 Federal Work-Study or Federal Supplemental Educational Opportunity Grant will have its award for 2025-2026, reduced by the amount returned.
→ FSA announced the final funding worksheets and Statement of Account for the Campus-Based programs are available on the COD website. FSA also published an explanation of the worksheets and information on the Expected Family Contribution.
→ In general, the deadline for updating student records that have a status code of “W” is May 7. 2025. The Common Origination and Disbursement (COD) System will not accept “W” as a valid verification status code after September 27, 2025.
→ The The Fiscal Operations Report for 2025–26 and Application to Participate for 2026–27 (FISAP) has been approved by the Office of Management and Budget. The FISAP will be available on the COD website by Aug. 1, 2025. The PDF form, instructions, desk reference, and technical reference are available now.
→ Volume 3 (academic calendars, payment periods, disbursements cost of attendance and packaging Title IV aid) and Volume 7 (determining eligibility for and calculation of Federal Pell Grants) of the 2025-2026 Federal Student Aid Handbook have been published and are available online.
→ Updates to the FAFSA include guidance for instances where for students from the Freely Associated States hav been issued multiple pseudo-Social Security numbers, an update to the process for requesting reprints for paper filers, and restoration of the ability to request Institutional Student Information Records.
→ The Department announced it would resume collection on defaulted federal student loans. Collections have been paused since the pandemic.
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Event: Ideation Innovation Collaboration: The Future of HBCUs
Date: May 12-15, 2025
Location: Charlotte, NC
Information: Details
Event: National Association of College and University Attorneys Annual Conference
Date: June 22-25, 2025
Location: Seattle, WA
Information: Registration
Event: UNCF UNITE 2025 Together We Lead
Date: July 20-24, 2025
Location: Atlanta, GA
Information: Registration
Event: Crafting Positive Board/President Relationships
Date: September 16, 2025
Location: Virtual
Information: Registration
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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,
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+1 404-874-0555
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