WASHINGTON UPDATE
NOVEMBER 2025
President Trump Signs Short-Term Funding Bill into Law; Federal Government Reopens
On November 12, 2025, President Trump signed into law a short-term spending bill that would fund all federal agencies, including the Department of Education, through January 30, 2026. Earlier in the day, the House of Representatives passed the short-term funding bill by a vote of 222-209. On November 9, 2025, the Senate had passed the spending bill by a vote of 60-40 with support from eight Democrats.
The Continuing Resolution (CR) included other spending bills that would fund the Department of Agriculture, the Department of Veterans Affairs, military construction projects, and the operations of Congress for the entire 2026 fiscal year. The bill also contains a provision that would reverse recent reduction-in-force (RIF) notices that occurred between October 1, 2025, and November 12, 2025. The Trump Administration would also be prohibited from carrying out additional RIF notices until January 30, 2026.
There are likely to be few operational changes for colleges and universities because some Department of Education employees were deemed essential. Financial aid was being disbursed, and student loans were being serviced during the government shutdown. However, staff will now be available to address concerns or questions from educational institutions. The bill would also reinstate more than 460 Department of Education employees that were laid off during the government shutdown.
Senate HELP Committee Convenes Hearing to Address College Affordability
On November 6, 2025, the Senate Health, Education, Labor, and Pensions (HELP) Committee held a hearing titled, “Reforming Financial Transparency in Higher Education.” Chairman Bill Cassidy, M.D. (R-LA) opened the hearing by highlighting their bipartisan proposals seeking to provide more transparency in college pricing and enable students to evaluate the value of their prospective degree. Those efforts include the College Transparency Act, the Net Price Calculator Improvement Act, and the Understanding the True Cost of College Act. Senator Tim Kaine (D-VA) agreed with Chairman Cassidy that higher education institutions need to provide students and families with clearer and more transparent information about costs associated with college but stressed that investments in higher education need to be increased.
Committee Republicans and Democrats agreed that data transparency and market accountability are necessary. However, the Democrats on the HELP Committee also argued that the Administration was seeking to weaponize the Public Service Loan Forgiveness (PSLF) program through final regulations that would limit employer eligibility with new conditions. The Republicans on the HELP Committee argued that inflationary pressures and regulations from the federal government caused institutions to expand their administrative offices, which led to increased costs.
House Committee Democrats Urge Trump to Reverse Firings
On October 27, 2025, Ranking Member Bobby Scott (D-VA) and the other Democrats from the House Committee on Education and Workforce sent a letter to Office of Management and Budget (OMB) Director Russell Vought, urging him to reinstate thousands of terminated employees at the Department of Education (ED) and the Department of Health and Human Services (HHS).
The members said in a press release, which includes the letter to the OMB Director: “Civil servants at the Department of Education (ED) and the Department of Health and Human Services (HHS) were among those targeted by the recent firings. These Departments and the programs they administer ensure that children and families can thrive in their communities and ensure that those living in this country are safe, healthy, and educated. These Departments were already operating at critically low staffing levels since the Administration began issuing widespread RIFs starting earlier this year. The elimination of even more staff severely undermines the ability of the Departments to faithfully execute the law.”
Ranking Member Scott Calls for the GAO to Investigate Partisan Firings During Government Shutdown
On October 17, 2025, Ranking Member Bobby Scott (D-VA), of the House Committee on Education and Workforce, urged the Government Accountability Office (GAO) Comptroller General Gene Dodaro to investigate President Trump’s use of Reduction in Force (RIF) actions during the government shutdown. The Ranking Member’s press release, which includes the letter to the Comptroller General, states:
“At the Department of Education (ED), reportedly 466 staff who oversee the administration of programs authorized under the Individuals with Disabilities Education Act (IDEA), the Elementary and Secondary Education Act, the Higher Education Act, the Civil Rights Act of 1965, and the Title IX of the Education Amendments of 1972, were laid off.”
Ranking Member Scott said:
“It is clear by the President’s actions that he intends to circumvent any oversight or investigative check on his will to power as relates to the operation of the federal government. However, as Comptroller General you have been empowered by Congress to ‘investigate all matters related to the receipt, disbursement, and use of public money, and to evaluate the results of programs and activities carried out by the government under existing law.’”
RISE Committee Concludes Neg Reg with Consensus
On November 6, 2025, the Reimagining and Improving Student Education (RISE) Committee reached consensus on the entire package of 17 proposals by the Department of Education related to the enactment of the One Big Beautiful Bill Act (OBBBA). Eight negotiators voted for consensus, and the veterans constituency group abstained from the final vote. Because the Committee reached consensus on the Department of Education’s proposed regulations, ED is bound to use the consensus regulatory text in the forthcoming Notice of Proposed Rulemaking (NPRM), which is expected to be published in early 2026.
Some of the issues discussed during the two sessions of the RISE Committee include:
- The impact of a student changing their enrollment status and credit hours on borrowing limits within the same academic year;
- The definition of “on-time” payments as it pertains to the interest subsidy;
- The impact of the Fresh Start program on rehabilitation limits;
- Defining program of study as an eligible program for purposes of institutionally-determined loan limits;
- Income-driven repayment plans; and
- Professional student definition.
The Committee spent a great deal of time debating what degree programs would have access to the highest level of loans under a new set of regulations, written in response to the new loan caps codified in the OBBBA. Beginning on July 1, 2026, the OBBBA caps annual loans for new borrowers at $20,500 for graduate students ($100,000 aggregate limit) and $50,000 for professional students ($200,000 aggregate limit). Consensus was reached on ED’s proposal defining a professional program as:
“(1) A professional degree is a degree that
(i) Signifies both completion of the academic requirements for beginning practice in a given profession and a level of professional skill beyond that normally required for a bachelor’s degree;
(ii) Is generally at the doctoral level, and that requires at least six academic years of postsecondary education coursework for completion, including at least two years of post-baccalaureate level coursework;
(iii) Generally requires professional licensure to begin practice; and
(iv) Includes a four-digit program CIP code, as assigned by the institution or determined by the Secretary, in the same intermediate group as the fields listed in paragraph (2)(i) of this definition.
(2) A professional degree may be awarded in the following fields:
(i) Pharmacy (Pharm.D.), Dentistry (D.D.S. or D.M.D.), Veterinary Medicine (D.V.M.), Chiropractic (D.C. or D.C.M.), Law (L.L.B. or J.D.), Medicine (M.D.), Optometry (O.D.), Osteopathic Medicine (D.O.), Podiatry (D.P.M., D.P., or Pod.D.), Theology (M.Div., or M.H.L.), and Clinical Psychology (Psy.D. or Ph.D.).
(3) A professional student under this definition:
(i) May not receive title IV aid as an undergraduate student for the same period of enrollment; and
(ii) Must be enrolled in a program leading to a professional degree under paragraph (2) of this definition.”
Another negotiated rulemaking committee is set to meet on December 8-12, 2025, to discuss other provisions included in the OBBBA, which is the Accountability in Higher Education and Access Through Demand (AHEAD) Committee.
Under Secretary of Education Nicholas Kent said in a press release:
“We appreciate the committee’s efforts to assist the Department in implementing President Trump’s One Big Beautiful Bill Act, which will simplify our complex student loan repayment system and better align higher education with workforce needs. The consensus language agreed upon by the negotiators today will help drive a sea change in higher education by holding universities accountable for outcomes and putting significant downward pressure on the cost of tuition. This will benefit borrowers who will no longer be pushed into insurmountable debt to finance degrees that do not pay off.”
ED Publishes Final Rule on PSLF Program
On October 31, 2025, the Department of Education published a final rule in the Federal Register amending the Public Service Loan Forgiveness (PSLF) program regulations. The final rule amends the definition of a “qualifying employer” to exclude employers that participate in illegal activities such that they have a substantial illegal purpose. “When an organization has a pattern or practice of engaging in certain illegal conduct, they have a substantial illegal purpose because a significant amount of their activities are supporting illegal activity.” According to the Fact Sheet accompanying the publication of the final rule, “[t]hese activities include aiding and abetting violations of Federal immigration laws, supporting terrorism or engaging in violence for the purpose of obstructing or influencing Federal Government policy, engaging in the chemical and surgical castration or mutilation of children in violation of Federal or State law, engaging in the trafficking of children to States for purposes of emancipation from their lawful parents in violation of Federal or State law, engaging in a pattern of aiding and abetting illegal discrimination, and engaging in a pattern of violating State laws.”
In addition to defining illegal activities, the final rule establishes a process for the determination of employer disqualification from the PSLF program; provides a reconsideration process for employers in the event they are removed from qualifying employer status; requires timely notification to borrowers and employers of any relevant determinations; and clarifies that this final rule will only be applied prospectively. A summary of the major provisions of the regulation is included in the Fact Sheet. The Fact Sheet specifies that only illegal activities that occur on or after July 1, 2026, the effective date, will be taken into account when the Department takes enforcement action under the final rule.
In a press release of October 30, 2025, Under Secretary of Education Nicholas Kent said in a statement:
“Taxpayer funds should never directly or indirectly subsidize illegal activity. The Public Service Loan Forgiveness program was meant to support Americans who dedicate their careers to public service – not to subsidize organizations that violate law, whether by harboring illegal immigrants or performing prohibited medical procedures that attempt to transition children away from their biological sex. Within this new rule, the Trump Administration is refocusing the PSLF program to ensure federal benefits go to our Nation’s teachers, first responders, and civil servants, who tirelessly serve their communities.”
On October 30, 2025, Chairman Tim Walberg (R-MI) of the House Committee on Education and Workforce released a statement after ED released the final rule where he stated:
“As the name suggests, Public Service Loan Forgiveness (PSLF) was intended to help meet workforce needs for employers who serve the public good. Unfortunately, the open-ended nature of PSLF has forced taxpayers—many of whom never went to college, to foot the bill for employees at radical organizations that violate state and federal laws. Aiding illegal immigration, supporting terrorism, or promoting child abuse through gender transitions is not ‘public service.’ This new rule codifies the Trump administration’s executive order on PSLF preventing taxpayer dollars from paying the student loans of those undermining the rule of law.”
Ranking Member Bobby Scott (D-VA) of the House Committee on Education and Workforce also released a statement after ED released the final rule where he stated:
“A college degree remains the surest path to financial stability. Individuals who have dedicated their lives to giving back to their communities do not deserve their hard-earned loan forgiveness to be ripped away from them on a political whim. This rule follows the Trump Administration’s disturbing pattern of making repayment less affordable and taking money out of the pockets of hardworking families, all while attempting to police political speech. I oppose this dangerous rule and am committed to working in Congress to promote equitable and affordable education for all.”
ED Changes Date for NACIQI Meeting to December 16th
On October 21, 2025, the Department of Education announced in the October 21, 2025 Federal Register that the next meeting of the National Advisory Committee on Institutional Quality and Integrity (NACIQI) will be held on December 16, 2025. ED previously announced that the meeting would be held on October 21, 2025. The announcement includes the Agenda, which calls for an update on the Administration’s higher education policy priorities from the Under Secretary. In addition, after electing the chairperson for the NACIQI committee, the committee with review the compliance reports from the following five accrediting agencies:
- Accrediting Commission for Midwifery Education
- American Physical Therapy Association, Commission on Accreditation in Physical Therapy
- Middle States Commission on Higher Education
- New England Commission of Higher Education
- Western Association of Schools and Colleges
ED Agrees to Cancel Student Debt for all Eligible Borrowers Enrolled in ICR and PAYE Plans
Over the weekend of October 15th and 16th, the Trump Administration and the American Federation of Teachers (AFT) reached a legal agreement to resume student loan forgiveness across several Income-Driven Repayment (IDR) plans. The deal is pending court approval, which is expected to be reviewed in the next few weeks. The Department has agreed to cancel student debt for all eligible borrowers enrolled in Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) plans. Forgiveness under these programs has been paused since February, with the Department citing court orders as the reason for the freeze.
The dispute began in March when the AFT filed a lawsuit challenging the Trump Administration’s decision to remove IDR enrollment applications from Federal websites and to instruct loan servicers to halt processing. After the lawsuit was filed, the Department resumed accepting applications and later began processing them. The timing of the agreement is significant since an exemption from Federal taxation for forgiven student loans is set to expire on December 31, 2025. Without the exemption, borrowers whose loans are forgiven after that date face significant tax liabilities.
The agreement also includes provisions for the Public Service Loan Forgiveness (PSLF). ED agreed to cancel debt for eligible PSLF borrowers, issue refunds to those who made payments after qualifying for cancellation, and process IDR and PSLF Buyback applications, which is a mechanism that allows borrowers to retroactively count previously ineligible months toward forgiveness.
ED Experiences Reduction in Force Amidst Government Shutdown
On October 10, 2025, the Office of Management and Budget (OMB) initiated its plan to carry-out Reductions in Force (RIF) during the government shutdown. Across the government, at least 4,100 Federal workers have been fired. The Department of Education fired 466 employees. The Department has not released details about the layoffs, but media reports indicate the following offices were affected:
- Office of Elementary and Secondary Education
- Office of Communications and Outreach
- Office of Postsecondary Education
- Office of Special Education and Rehabilitative Services
- Office of Civil Rights
This leaves the Department with around 2,000 employees. The latest round of layoffs has been paused by a federal judge. It is uncertain what will happen when the government reopens.
VA Issues Supplemental NPRM Amending Definitions of Independent Study, Distance Education, and Resident Learning
On September 3, 2025, the Department of Veterans Affairs (VA) published a Supplemental Notice of Proposed Rulemaking (SNPRM) in the Federal Register to amend its definitions of the terms independent study, distance learning, and resident learning, and to establish a new term, standard curriculum. Comments are due on or before November 3, 2025.
On October 14, 2021, VA had published an NPRM to amend its regulations to govern State Approving Agencies’ (SAA) jurisdiction for approval of courses to distinguish online distance learning courses from resident training and independent study-resident training courses, and to clarify SAA authority and jurisdiction regarding the approval or disapproval of any course. Two commenters questioned the appropriateness of VA’s categorization of online distance learning and recommended that the VA “modernize” its definitions to improve oversight of distance education programs. Further, stakeholder partners expressed concern with the possible negative impacts of defining all distance learning as independent study. They asserted that considering distance learning as a subset of independent study barred SAA approval of non-accredited, non-college degree (NCD) programs conducted via distance education. VA responded that because VA is not authorized to approve enrollment in independent study programs “unless they are accredited and lead to a standard college degree or certificate offered by an institution of higher learning, see 38 CFR 21.4267(f), under current regulations, that define distance learning as independent study, VA cannot approve enrollment in NCD programs conducted via distance learning.”
VA proposes to include four modalities of training in its regulations as follows:
- Standard Curriculum: A class in which the instructor dictates a uniform structure for all students, determining tasks, setting standards for evaluation of students’ work, and establishing the timeframe for completion of the work, without consultation with the student or tailoring on a student-by-student basis.
- Independent Study: A class (i.e., unit subject) in which the student follows a course of study with predefined objectives and works with a faculty member to decide how the student is going to meet those objectives. The student and the faculty member together agree on the student’s tasks required to meet the objectives. The student interacts with the faculty member on a periodic and substantive basis to assure progress towards the objectives, which may be in-person, virtually, or a combination of both.
- Distance Learning: The definition mirrors the Department of Education’s definition found in 20 U.S.C. 1003(7). The exception to the Department of Education’s definition of distance learning is that a modality of instruction will not be considered distance education if it requires class attendance when the instructional material and technologies are only accessible at the educational institution during the regularly scheduled times synchronous with the times other students enrolled in the same class must attend, even if the classrooms are geographically dispersed. [This exception to ED’s definition relates to whether students are paid a full monthly housing allowance under the Post-9/11 GI Bill. A reduced housing allowance is paid for those who receive training solely through distance learning.]
- Resident Learning: Any classroom instruction with an instructor physically co-located in the same classroom with the students, or with the student required to be in a classroom to access technology to receive distance learning instruction regardless of where the instructor is located. In addition, correspondence learning is not viewed as resident learning.
The SNPRM also proposes that the if an educational institution offers a course by independent study (through resident learning or distance learning), by correspondence, or solely through distance learning, only the State approving agency for the State where the educational institution’s main campus is located may approve the course for VA training. Another section outlines when an SAA may deny, suspend, withdraw or approve an Application. Finally, the SNPRM proposes that “VA may not pay educational assistance for a nonaccredited course which is offered in whole or in part by independent study.”
Federal District Court Rules in Favor of ED in the GE Final Rule Lawsuits
On October 2, 2025, Judge Reed O’Connor, the Chief District Judge of the U.S. District Court for the Northern District of Texas, entered an Order granting the Department of Education’s motion for summary judgment and denying the motions for summary judgment brought by the Ogle School of Beauty and Cosmetology and Tricoci University of Beauty and Cosmetology as well as Duvall’s School of Cosmetology and the American Association of Cosmetology Schools. Judge O’Connor found that the Department’s interpretation of “gainful employment” under the Biden rule’s debt-to-earnings and earnings premium measures was the best interpretation based on the statute.
It is likely that one or more of the plaintiffs will appeal the ruling to the Fifth Circuit. ED will be amending the Biden GE rule as part of the accountability measures from the One Big Beautiful Bill Act when it convenes the Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) Committee negotiated rulemaking scheduled in December and January.
NCAN Provides FAFSA Guidance for Mixed-Status Families
On October 27, 2025, the National College Attainment Network (NCAN) released FAFSA guidance for mixed-status students and families that submit data to the Department of Education as part of the FAFSA process. NCAN stated that it continues to hear questions about how best to support students from mixed-status families. “Although the Higher Education Act prohibits the use of data for any purpose other than determining and awarding federal financial assistance, NCAN cannot assure mixed-status students and families that data submitted to U.S. Department of Education (ED), as part of the FAFSA process, will continue to be protected.” NCAN noted that many families remain uneasy about completing the FAFSA due to past efforts by the Trump Administration to access personal data from other agencies for immigration enforcement including requesting State voter rolls, public housing data, tax information, and records of applicants for SNAP benefits. NCAN is encouraging its members to advise students whose parents (FAFSA Contributor) may not have an SSN about the risks and benefits of submitting a FAFSA.
It is noted that the 2026-2027 FAFSA process now includes an instant, real-time matching for contributors who do enter their SSN, but for those without an SSN, contributors must answer a set of unique questions to verify their identity. Also, as in previous years, all contributors without an SSN, including those with an Individual Taxpayer Identification Number (ITIN), will need to manually enter their financial information.
Cornell University Settles with the Trump Administration Following Settlements with the University of Pennsylvania, Columbia University, Brown University, and the University of Virginia
On November 8, 2025, in a virtual town hall meeting, President Michael Kotlikoff addressed Cornell University’s settlement with the Trump Administration, to pay the federal government a $30 million settlement and invest another $30 million in agricultural research, in exchange for having its $250 million in frozen federal research funding restored. President Kotlikoff indicated that the University agreed to incorporate the federal guidelines on discrimination as a training resource for all faculty and staff. The guidelines deem race-based decisions on admissions and hiring, diversity, equity, and inclusion programs, and transgender athletes in sports as unlawful practices.
This settlement follows similar agreements made with the University of Pennsylvania, Columbia University, Brown University, and the University of Virginia. These institutions were targeted for a range of alleged violations including allowing transgender athletes to compete on women’s sports teams, failing to police campus antisemitism, and operating illegal diversity, equity, and inclusion practices.
10 Institutions Seek Recognition by New Accreditor, the Commission for Public Higher Education
On November 13, 2025, Inside Higher Ed reported that 10 institutions sent letters of intent to seek recognition from a new accreditor, the Commission for Public Higher Education, as it seeks federal approval. The newly formed accreditor was first introduced by Florida governor, Ron DeSantis, at a June press conference. The initial group of institutions that are currently accredited by the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) include:
- Appalachian State University (NC)
- Chipola College (FL)
- Columbus State University (GA)
- Florida Atlantic University
- Florida Polytechnic University
- Georgia Southern University
- North Carolina Central University
- Texas A&M Kingsville
- Texas A&M Texarkana
- University of North Carolina at Charlotte
Century Foundation Reports that State and Institutional Aid Dollars Go to High-Income Students
On November 6, 2025, the Century Foundation released a report titled “A Better Hundred Billion: Improving State and Institutional College Financial Aid,” which found that state and institutional financial aid programs frequently benefit higher-income students more that those with the greatest financial need. The report found:
- A high share of state and institutional grant dollars goes to students without financial need, even while low-income students have unmet need that results in having to take out student loans or seek work to fill unmet need.
- Nineteen percent of white students receive grants in excess of need as compared to five percent of the Hispanic and Black students.
- Merit-based grants comprise an increasing share of state grants, rising 17 percentage points since 1982.
- State grants disproportionately benefit students at highly selective public colleges, with an average of $3,693 going to students at highly selective public colleges as compared to $842 going to students at open admission public four-year colleges.
The report concluded that making higher education more affordable requires “sustained efforts by states and colleges to adequately address need and requires a collective effort to restrain from the seemingly never-ending rise of tuition.”
Sharon H. Bob, Ph.D.
Higher Education Specialist
Powers Pyles Sutter and Verville, PC
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November 15, 2025
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