WASHINGTON, DC EDUCATION UPDATE AUGUST 2025

White House Issues Presidential Memorandum for Ensuring Transparency in Admissions

On August 7, 2025, President Trump issued a Presidential Memorandum on “Ensuring Transparency in Higher Education Admissions.” Within 120 days of the date of the memorandum, the Secretary of Education, in coordination with the National Center for Education Statistics (NCES), shall expand the scope of required reporting to provide adequate transparency into admissions beginning in the 2025-2026 school year. “The Secretary of Education, in conjunction with the heads of other executive departments and agencies as necessary, shall revamp the online presentation of the Integrated Postsecondary Education Data System (IPEDS) data, to make it easily accessible to parents and students.” President Trump believes that greater transparency will expose unlawful practices of using “shameful, dangerous racial hierarchies” in making admissions decisions.

On August 15, 2025, the Department of Education published a Notice in the Federal Register, clarifying that certain institutions will be required to collect and report comprehensive data about their admissions decisions going back five years.  The data must be broken down by race and sex and include students’ high school GPA, test scores, time of application, financial aid status, and other data.  According to ED, the Admissions and Consumer Transparency Supplement (ACTS) will only affect four-year institutions that use “selective college admissions” as they “have an elevated risk of noncompliance with the civil rights laws.”

Democratic Senators Send Letters to Private Student Loan Lenders

On August 3, 2025, Democratic Senators Elizabeth Warren (D-MA), Senate Minority Leader Chuck Schumer (D-NY), Bernie Sanders (I-VT), Richard Blumenthal (D-CT), Mazie Hirona (D-HI), Ron Wyden (D-OR), Chris Van Hollen (D-MD), Edward Markey (D-MA), and Jeffrey Merkley (D-OR) sent letters to Navient, Nelnet, Sallie Mae, and SoFi, requesting information on how they are preparing to react to the changes to the federal student loan program made by the One Big Beautiful Bill Act (OBBBA).  Senator Warren’s press release includes the text of the letters.

The Senators expressed concern that more students will be turning to private lenders, who “have a track record of discrimination and predatory lending tactics – making high-rate loans with shoddy underwriting.” Further, in the last decade, private equity firms, such as Carlyle, Blackstone, KKR and Apollo, began buying up legacy portfolios from banks, which only heightened their concerns “about the predatory and abusive collection practices and lack of meaningful avenues of relief for borrowers in the private market.”

To better understand how borrowers will be affected by the expansion of the private student loan market, the Senators asked a series of questions, with a response date of August 17, 2025, regarding:

• Private student loan portfolio changes and projections;
• Loan servicing and customer support;
• Loan collections and default management; and
• Borrower protections and loan sales.

Chairman Cassidy Highlights Major Wins in the OBBB Legislation

On August 1, 2025, Chairman of the Senate Health, Education, Labor, and Pensions Committee Bill Cassidy MD (R-LA) released a press release highlighting the reforms included in the One Big Beautiful Bill (OBBB) Act to fix America’s broken higher education system. Dr. Cassidy said: “Our higher education system has failed students, workers, and families.  Students are graduating with degrees that won’t get them a job and insurmountable debt that they can’t pay back.”  Dr. Cassidy went on to describe the historic reforms:

• Pro-Student
  • Strengthens the Pell Grant program;
  • Caps graduate loans at reasonable levels to lower tuition prices and protect students from debt; and
  • Increases Direct Unsubsidized Loan limit for professional students so they can borrow at lower interest rates and origination fees.
• Pro-Worker
  • Creates Workforce Pell Grants so that workers can take advantage of short-term programs that provide skills needed for in-demand jobs;
  • Simplifies student loan repayment to two plans; and
  • Reforms income-driven repayment so that borrowers who make affordable payments make progress in paying down their loans.
• Pro-Family
  • Supports families with a $50 per child reduction in monthly student loan payment for borrowers enrolled in the Repayment Assistance Plan;
  • Enacts common-sense protections to prevent federal loans from supporting programs that leave students worse off; and
  • Restores fiscal sanity to the student loan program.

The press release also includes the following documents:

Click here for a one-pager on the HELP Committee portion of the OBBB.
Click here for a section by section.
Click here for a Myth vs. Fact document.
Click here for FAQs.

Ranking Member Scott Introduces Bill to Lower the Cost of College

On August 1, 2025, House Education and Workforce Committee Ranking Member Bobby Scott (D-VA) introduced the Lowering Obstacles to Achievement Now (LOAN) Act. The Loan Act would lower the cost of college for students and their families. According to the press release, Ranking Member Scott said: “The Loan Act will help confront the student debt crisis. This legislation would lower the cost of college for students and families by doubling the Pell Grant, improving the Public Service Loan Forgiveness program, lowering interest rates, and making other critical reforms to fix our student loan system.”

Senate Appropriations Committee Passes FY 2026 Education Appropriations Bill

On July 31, 2025, by a vote of 26-3, the Senate Appropriations Committee reported the FY 2026 Labor, Health and Human Services, Education and Related Appropriations bill out of Committee. The bill includes funding for key student aid programs:

• The maximum Pell Grant would be maintained at $7,395 for the 2026-2027 award year;
• Federal Supplemental Educational Opportunity Grants (FSEOG) would be allocated $910,000,000, the same funding as FY 2025;
• Federal Work-Study would be allocated $1,230,000,000, the same funding as FY 2025;
• Funding for Federal Student Aid administration remains level-funded at $2,059 billion, the same funding as FY 2025; and
• TRIO programs would be allocated $1,191,000,000, the same funding as FY 2025.

Congress has until September 30, 2025, to fund the federal government.

Group of Bipartisan Lawmakers Reintroduce the College Transparency Act

On July 29, 2025, a group of bipartisan lawmakers reintroduced the College Transparency Act, which aims to provide students with information about enrollment, completion, and postsecondary earnings for institutions and majors across the country.  Senator Bill Cassidy MD (R-LA), Chair of the Senate Health, Education, Labor and Pensions (HELP) Committee and Senator Elizabeth Warren (D-MA), who had both sponsored previous version of the bill, reintroduced the bill.  A companion bill was also reintroduced in the House by Congressmen Mike Kelly (R-PA) and Raja Krishnamoorthi (D-IL).

According to the press release, the bill would modernize the college reporting system for postsecondary data by providing accurate reporting on student outcomes, while ensuring the privacy of individual students is securely protected. This information will give students a clear understanding of the return on investment in higher education and help them to make better decisions about which schools and programs of study are best suited to their unique needs and desired outcomes.

Dr. Cassidy said: “The One Big Beautiful Bill made historic reforms to our broken higher education system, lowering college costs and increasing Americans’ access to quality education options.” Senator Warren said: “Every student deserves access to clear information about colleges and universities so they can choose a school that’s best for them, and that’s exactly what our bill would do.”

Congressman Kelly said: “College is one of the biggest investments a person will make in their lifetime. The College Transparency Act gives parents and students the tools they need to succeed.” Congressman Krishnamoorthi said: “Deciding where to pursue higher education is one of the most important and financially challenging choices a student and their family will face…Before making such a major investment, families deserve access to reliable and clear information about cost, success, and outcomes so they can make the best choice.”

House and Senate Education Democratic Leaders Oppose the Dismantling of the Department

On July 16, 2025, Ranking Member Robert C. “Bobby” Scott (D-VA), House Committee on Education and Workforce; Ranking Member Rosa DeLauro (D-CT), House Appropriations Committee and Labor, Health and Human Services, and Education Subcommittee; Vice Chair Patty Murray (D-WA), Senate Appropriations Committee; Ranking Member Bernie Sanders (I-VT), Senate Committee on Health, Education, Labor, and Pensions (HELP); and Ranking Member Tammy Baldwin (D-WI), Senate Appropriations Subcommittee on Labor, Health and Human Services (HHS), and Education issued the following statement after the Department of Education (ED) and Department of Labor (DOL) announced plans to transfer career and technical education and adult education programs from ED to DOL:

“The Court’s ruling to allow the Trump administration to dismantle the Department of Education as litigation continues sets a troubling precedent.  Congress authorized and appropriated funds to the Department of Education to carry out career and technical education programs.  The law of the land has not changed.  If this administration is able to do this, no education program that our teachers, parents, and children rely on is safe from an administration more interested in executing its extreme agenda than helping of students.

“Let’s be clear:  this is not about cutting through red tape or returning education to the states.  This is about dismantling the Department of Education and attacking our public education system.  This is yet another illegal action by this administration that ignores the rule of law.  This comes as the Administration is already illegally withholding nearly $7 billion in education funding, including for the Adult Education programs tied up in this illegal transfer.

Speaker of the House Announces Intention for Two More Reconciliation Bills

In several appearances on Fox News, Speaker of the House Mike Johnson (R-LA) discussed his intention to pursue two more reconciliation bills during this fall and in the spring of 2026. “The reconciliation bill today was a big, giant leap forward.  But we’re going to do this again.  We’re going to have a second reconciliation package in the fall and a third in the spring next year.” He did not discuss possible subjects for these bills.

OPE Holds Public Hearing to Receive Feedback in Anticipation of Establishing Two Neg Reg Committees

On August 7, 2025, the Department of Education’s Office of Postsecondary Education (OPE) held a public hearing to receive feedback in anticipation of establishing two neg reg committees. ED plans to prepare proposed regulations on various provisions under Title IV of the Higher Education Act, as amended. During the public hearing, OPE invited interested parties to provide advice and recommendations on the changes made to the Title IV programs by the enactment in the One Big Beautiful Bill Act (P.L. 119-21).

Various speakers commented on transparency around costs and outcomes, job placement data, and some cautioned against using earnings as the only indicator of a program’s value. Many speakers commented on the elimination of Grad PLUS Loans and the changes to the graduate unsubsidized loans. Many raised concerns about the repayment plan changes. A number of speakers expressed support for the Workforce Pel Grant program and emphasized the need for clear rules.

Senate Confirms Nicholas Kent as Under Secretary at ED

On August 1, 2025, by a vote of 50-45, Senate voted to confirm Nicholas Kent as the Under Secretary at the Department of Education. Mr. Kent’s primary responsibilities include the Offices of Postsecondary Education, Career, Technical, and Adult Education, and Federal Student Aid. Most recently, Mr. Kent was the Deputy Secretary of Education for the Commonwealth of Virginia. Prior to that position, Mr. Kent was the Chief Policy Officer at Career Education Colleges and Universities (CECU).  Before joining CECU, Mr. Kent was the Director of Policy, Planning, and Research at the DC office of the State Superintendent of Education.

On August 4, 2025, Secretary of Education Linda McMahon said of Mr. Kent in a press release: “Nicholas Kent’s technical expertise and vast experience in higher education will serve as an invaluable asset to the Department of Education team.” Secretary McMahon went on to state: “Not only will he work to fulfill President Trump’s vision for accreditation, accountability reforms, and more, but he will also be a great benefit to current and aspiring postsecondary students, faculty, and staff. I look forward to serving alongside Nicholas as we continue to strengthen higher education and brighten America’s future.”

On August 4, 2025, Mr. Kent stated in a press release: “As Under Secretary, I have a responsibility to oversee policies, programs, and activities of this Department related to postsecondary education, career, technical, and adult education, and federal student aid. This includes implementing our action plan and advancing President Trump’s One Big Beautiful Bill Act – a landmark reform that lowers costs, simplifies student loan repayment, authorizes Workforce Pell, and holds institutions accountable for degrees that don’t pay off.”

Department of Education Office of the Ombudsman Has a Backlog of Over 27,000 Borrower Complaints

In a press release of August 7, 2025, Senator Elizabeth Warren (D-Mass.) publicly released Secretary of Education Linda McMahon’s response to the Senator’s 60+ questions, sent in advance of the June meeting between Secretary McMahon and Senator Warren, regarding the Department of Education’s (ED)’s “war on students.”  Secretary McMahon revealed that the Department’s Office of the Ombudsman currently has a backlog of over 27,000 complaints from students and student loan borrowers, while only 1,122 complaints were closed during May 2025. Calling Secretary McMahon’s response “severely lacking,” Senator Warren sought additional information from Secretary McMahon and announced that she would refer certain matters where the Department has proved uncooperative to the Government Accountability Office and the Department of Education’s Inspector General.

Senator Warren concluded by stating: “The American people deserve to know how your policies are impacting services and programs that millions of students and families across the country rely upon.”

FSA Announces Beta Version of FAFSA Launches Earlier than Expected

During the first week of August, Federal Student Aid (FSA) announced that the test version of the 2026-2027 FAFSA was launched earlier than anticipated.  This announcement comes two years after the difficult rollout of the 2024-2025 FAFSA. The opening of the FAFSA for that year was late December 2023 and still experienced problems. For the 2026-2027 FAFSA cycle, the FAFSA is expected to open on time on October 1, 2025.  In order to be prepared for the October 1 date, ED launched beta testing making the form available to a small number of students and families through partnerships with community organizations, schools and other groups.

Interest Officially Resumes Accruing on SAVE Plans on August 1^st

On July 9, 2025, the Department of Education announced in a press release that as of August 1, 2025, millions of borrowers enrolled in the Biden-era Saving on a Valuable Education (SAVE) program will begin accruing interest on their loans again. The Department said that it took this action to comply with a federal court injunction that has blocked implementation of the SAVE Plan, including the Department’s action to put SAVE borrowers in a zero percent interest rate status, action which it had no authority to take.

Secretary of Education Linda McMahon said: “For years, the Biden Administration used so-called ‘loan-forgiveness’ promises to win votes, but federal courts repeatedly ruled that those actions were unlawful. Congress designed these programs to ensure that borrowers repay their loans, yet the Biden Administration tried to illegally force taxpayers to foot the bill instead.”

When a federal court blocked parts of the SAVE Plan in June 2024, borrowers enrolled in the SAVE Plan were placed in forbearance with a zero percent interest rate.  In February 2025, the Eighth Circuit Court of Appeals held that the SAVE Plan is unlawful. A federal district court entered an injunction in 2025 to implement the Eight Circuit decision. To comply with the federal district court’s action, ED instructed its federal student loan servicers to start assessing interest on these loans starting August 1^st. Borrowers can choose to stay in forbearance, but interest will begin being added to their total loan balance.

ED Releases DCL Providing Information that Supplements the 2025-2026 Award Year Verification Information

On July 22, 2025, ED released an updated Dear Colleague Letter (DCL) (GEN-24-10) that provides information that supplements the 2025-2026 award year verification information provided in the Federal Register notice published on September 4, 2024. The DCL summarizes and explains the changes in the verification process for the 2025-2026 award year.  The DCL also provides text that an institution may use to fulfill its regulatory verification requirements.

ED Announces Neg Reg to Implement the OBBB

On July 24, 2025, the Department of Education’s Office of Postsecondary Education (OPE) announced it will commence two negotiated rulemaking sessions in order to implement President Trump’s One Big Beautiful Bill Act (OBBB). According to Acting Under Secretary James Bergeron: “The Department is taking swift action to implement President Trump’s One Big Beautiful Bill Act,” which will “force colleges and universities to focus more on post-graduation outcomes, facilitate more workforce pathways, make student loans simpler for borrowers, and ensure taxpayers are not forced to pick up the bill for mass student loan forgiveness.”

On July 25, 2025, the Department of Education published in the Federal Register its plans to establish two negotiated rulemaking (neg reg) committees to implement recent statutory changes to the Title IV, HEA programs included in P.L. 119-21, known as the One Big Beautiful Bill Act, signed into law on July 4, 2025. The announcement said that there will be a virtual public hearing that will be held on August 7, 2025, and ED will also accept written comments. ED is also seeking nominations for the two neg reg sessions. Further details are included in the Announcement.

The two neg reg sessions are:

• Reimagining and Improving Student Education (RISE) Committee

• • Two Sessions:

• • • Session 1: September 29-30 and October 1 – 3, 2025
    • Session 2: November 3 – 7, 2025

• • Proposed Issues:
    • Phase-out of graduate and professional PLUS Loans.
    • Establishment of new annual loan limits for graduate and professional students and parent borrowers, and implementation of new lifetime borrowing caps.
    • Simplification of student loan repayment plans into a standard repayment plan and a single income-based Repayment Assistance Plan (RAF) for new borrowers, elimination of the Income-Contingent Repayment (ICR) plan, and streamlining requirements for Income-Based Repayment plans for existing borrowers.
    • Institutional flexibility to apply lower annual limits for student and parent borrowers for selected programs of study.
    • Modifications to loan rehabilitation include allowing defaulted borrowers to rehabilitate their loans a second time and setting minimum monthly payment amounts for such loans, phasing-out unemployment and economic hardship deferments, and limiting a borrower’s ability to receive a general forbearance.
    • Other provisions that are effective upon enactment, on July 1, 2026, on July 1, 2027, or on July 1, 2028.

• Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD)

• • Two Sessions:

• • • Session 1: December 8 – 12, 2025
    • Session 2: January 5 – 9, 2026

• • Proposed Issues:

• • • Changes in institutional and programmatic accountability measures, including loss of Direct Loan eligibility for certain programs with low earnings outcomes for 2 out of 3 years, and Financial Value Transparency and Gainful Employment.
    • Establishment of program eligibility requirements for a new Workforce Pell Grant for students enrolled in programs that last a duration of 8-15 weeks, are transferrable to a recognized credential or degree, are approved by the state governor, and have strong outcomes.
    • Exclusion of Pell Grant assistance for students who receive grant or scholarship aid covering their entire cost of attendance or for students with a Student Aid Index in excess of twice the maximum Pell Grant award.
    • Other provisions that are effective upon enactment, on July 1, 2026, on July 1, 2027, or on July 1, 2028.

FSA Releases Nonrepayment Rates by Institution

On July 23, 2025, Federal Student Aid (FSA) released an Electronic Announcement (GENERAL-25-34) releasing the nonrepayment rates by institution. In an earlier announcement of May 5, 2025, FSA issued an Electronic Announcement (GEN-25-19) encouraging Title IV participating institutions by June 30, 2025, to perform outreach to borrowers who ceased to be enrolled at their institutions since January 1, 2020.

The nonrepayment rates are based on the percentage of Direct Loan borrowers who entered repayment since January 2020 and whose federal student loans were more than 90 days delinquent at the time of the data pull (mid-May 2025).

CECU Reports that ED Plans Neg Reg to Reconsider the “Bare Minimum Rule”

On July 22, 2025, Career Education Colleges and Universities (CECU) reported that the federal government filed a status report on July 21, 2025, on behalf of the U.S. Department of Education in the AMTA v. U.S. Department of Education lawsuit in the D.C. District Court. The status report stated that the Department “intend[s] to reconsider the [“Bare Minimum Rule”] in negotiated rulemaking later this year.” According to the CECU article, ED requested that the Court stay the lawsuit for another six months, at which time the parties could provide another status report to the Court. The plaintiff consented to the request. The CECU article concluded that it was likely that ED would request a similar extension of the stay in the Cortiva lawsuit in Texas against the “Bare Minimum Rule” as well.

In the Cortiva case, known as 360 Degrees Education, LLC, et al. v. U.S. Department of Education, et al., the U.S. District Court for the Northern District of Texas granted the plaintiff’s motion for a preliminary injunction preventing the Department from enforcing the changes made to 34 C.F.R. § 668.14(b)(26), pending a decision by the Court.

Therefore, until further notice, institutions must continue to comply with the maximum program length regulations in effect prior to July 1, 2024. The existing regulations limit the maximum program length of GE programs to 150 percent of a state’s minimum educational requirements for licensure, or 100 percent of the requirements of an adjacent state, whichever is greater.  The preliminary injunction against the “Bare Minimum Rule” will remain in effect during the time that both lawsuits are stayed.

ED Releases DCL Regarding Immediate Implementation of Certain Provisions Impacting Federal Student Aid Programs under the One Big Beautiful Bill Act

On July 18, 2025, the Department of Education released a Dear Colleague Letter (DCL) (GEN-25-04) providing information about the immediate implementation of certain provisions impacting federal student aid Title IV programs under the One Big Beautiful Bill Act (OBBB). The DCL addresses the changes that became effective upon enactment, July 4, 2025:

• Changes to Income-Based Repayment: OBBB eliminates the requirement that borrowers must have a partial financial hardship to qualify for enrollment in an income-based repayment (IBR) plan.  As a result, borrowers who have loans made on or after July 1, 2024, and before July 1, 2026, and did not qualify for partial financial hardship, are now eligible for the IBR plan.
• Parent PLUS Repayment Options:  OBBB allows borrowers with a consolidation loan that repaid a Parent PLUS Loan to enroll in an IBR plan effective upon enactment.
• Loan Limits for Part-time Students: OBBB reduces the amount of a loan that a student may borrow for an academic year if the student is enrolled in a program of study on less than a full-time basis during the academic year.  The reduction in the annual loan limit will be made in direct proportion to the degree to which the student is not enrolled full-time, rounded to the nearest percentage point.  The Department is currently working on a schedule of reductions that is required by OBBB, which will be submitted for public comment later this year.  Once the revised schedule of reductions is issued, it will be used to determine the reduction in annual loan limits for students enrolled less than full-time for the academic years 2026-2027 and beyond.
• Public Service Loan Forgiveness: OBBB amends the Public Service Loan Forgiveness (PSLF) program to allow for payments made under the Repayment Assistance Plan (RAP) to count toward loan forgiveness.  RAP will be in effect no later than July 1, 2026.
• Borrower Defense to Repayment Regulations: OBBB delays implementation of the Biden Administration’s Borrower Defense to Repayment regulations until July 1, 2035.  A notice will be published shortly in the Federal Register announcing that the Borrower Defense to Repayment regulations that were effective July 1, 2020, will be effective as if the regulations were never amended.
• Closed School Loan Discharge Regulations: OBBB delays implementation of the Biden Administration’s Closed School Loan Discharge regulations until July 1, 2035.  A notice will be published shortly in the Federal Register that the Closed School Discharge regulations that were effective July 1, 2020, will be effective as if the regulations were never amended.

The Department released a press release announcing the availability of the DCL outlining the immediate implementation of numerous higher education provisions in the OBBB. Acting Under Secretary James Bergeron said:  “President Trump’s One Big Beautiful Bill is a historic win for students, families, and taxpayers. The OBBB delivers for student borrowers in a big way – simplifying the student loan repayment system, funding the $10.5 billion shortfall in Pell Grant funding left by the previous administration, supporting short-term career focused programs that train workers for in-demand jobs, and holding colleges accountable by eliminating student loan eligibility for programs that leave students worse off than if they had never enrolled.”

Departments of Education and Labor Implement Workforce Development Partnership

On July 15, 2025, the Departments of Education (ED) and Labor (DOL) announced the implementation of a workforce development partnership to create an integrated federal education and workforce system. DOL will take on a greater role in administering the adult education and family literacy programs funded under Title II of the Workforce Innovation and Opportunity Act (WIOA) and career and technical education (CTE) programs funded by the Carl D. Perkins Career and Technical Education Act (Perkins). The programs will be managed alongside ED staff, with continued leadership and oversight by ED.

Secretary of Education Linda McMahon said: “The current structure with various federal agencies each managing pieces of the federal workforce portfolio is inefficient and duplicative. Support from the Department of Labor in administering the Department of Education’s workforce programs is a commonsense step in streamlining these programs to better serve students, families, and educators.”

Secretary of Labor Lori Chavez-DeRemer said: “I’m excited to team up with Secretary McMahon as we work together to provide states with clearer guidance, reduced regulatory burdens, and more resources that are directly invested in opportunities for American workers.”

As background, the press release indicated that ED signed an Interagency Agreement (IAA) with DOL on May 21, 2025. One day later, a Massachusetts District Judge granted a preliminary injunction to plaintiffs in McMahon v. New York, forcing ED to pause implementation of the IAA.  On July 14, 2025, the Supreme Court granted an emergency request to stay the injunction, allowing ED to implement this IAA and proceed with the reduction in force to administer ED’s programs more efficiently.”

Finally, the press release stated: “[T]his shared effort will provide a coordinated federal education and workforce system, consistent with Executive Order No. 14278 signed on April 23, 2025. The press release stated that additional guidance will be coming out in the next few weeks.

Trump Administration Releases its Multiagency Plan for the Federal Government’s Approach to Workforce Development

Recently, the Trump Administration released its multiagency plan for the Federal government’s approach to workforce development titled, “America’s Talent Strategy: Equipping American Workers for the Golden Age,” which includes a vision for workforce programs in the Departments of Labor (DOL), Commerce, and Education. The plan calls for the expansion of apprenticeship programs and support for Workforce Pell Grants.  “With the enactment of The One Big Beautiful Bill Act, Workforce Pell Grants provide an opportunity to align the supply of talent and training programs to labor market demand.” The report states the three departments will work with governors and State workforce boards to identify “high-quality” programs, particularly ones that lead to employment that should be eligible for Workforce Pell Grants. The plan also states that DOL can provide technical assistance to states to ensure statutory provisions designed to ensure Pell Grants are the primary source of funding used by the students.

Secretary of Education Linda McMahon said: “President Trump has set an ambitious and bold strategy to reindustrialize America, and to realign education to better serve our evolving workforce…I am proud to stand with Secretaries Chavez-DeRemer and Lutnick to reinvigorate industry-driven standards, cross-agency integrated systems, and skills-based education pipelines to support in-demand career development. By empowering Americans with new career pathways and access to innovative workforce-based programs, we are confident these reforms will build the net great American workforce.”

Federal Appeals Court Ruling Allows DOGE Access to Department of Education Data

On August 12, 2025, the U.S. Court of Appeals for the Fourth Circuit in Richmond, VA ruled 2-1 to vacate an injunction issued in February by a federal district judge in Maryland. The order barred the Department of Government Efficiency (DOGE) access of data at the Department of Education, the Treasury Department, and the Office of Personnel Management. The lawsuit, which was filed by the American Federation of Teachers (AFT), along with other unions, had argued the DOGE was “steamrolling into sensitive government records systems” in ways that put data at risk and violated the Privacy Act of 1974. The majority also cited a Supreme Court ordered in June that granted DOGE employees access to Social Security Administration files.

AFGE Files Grievance Against ED for the RIF

According to a NASFAA report, on August 31, 2025, the American Federation of Government Employees (AFGE), a union representing government employees, filed a grievance against the Department of Education for the reduction in force (RIF) of the Office of Federal Student Aid (FSA). The AFGE, along with Student Defense, who represents the union, asserted that FSA operates as a performance-based organization within ED, where Congress granted FSA independence from the Department. The “independence” is in respect to budget allocations, expenditures, and personnel decisions. As a result, the AFGE and the Student Defense contend that FSA has no decision-making authority with respect to ED’s RIF plans.

Supreme Court Allows ED to Carry Out RIF

On July 14, 2025, the Supreme Court confirmed that the Department of Education should be able to carry out its reduction in force (RIF) and implement President Trump’s Executive Order to improve education for families by returning education authority to the states.

Secretary of Education Linda McMahon released a statement:

“Today, the Supreme Court again confirmed the obvious:  The President of the United States, as the head of the Executive Branch, has the ultimate authority to make decisions about staffing levels, administrative organization, and day-to-day operations of federal agencies.  While today’s ruling is a significant win for students and families, it is a shame that the highest court in the land had to step in to allow President Trump to advance the reforms Americans elected him to deliver using the authorities granted to him by the U.S. Constitution.”

ED and HHS Notify Harvard University’s Accreditor of Harvard’s Title VI Violation

On July 9, 2025, the Department of Education’s Office of Postsecondary Education and the Department of Health and Human Services’ Office for Civil Rights notified the New England Commission of Higher Education (NECHE) that its member institution, Harvard University, is in violation of federal antidiscrimination laws and therefore, may fail to meet the standards of the Commission. Pursuant to President Trump’s Executive Order, Reforming Accreditation to Strengthen Higher Education, both Departments have an obligation to promptly provide accreditors with any noncompliance finding related to member institutions.

Secretary of Education Linda McMahon said in a press release:  “Accrediting bodies play significant role in preserving academic integrity and a campus culture conducive to truth-seeking and learning. Part of that is ensuring students are safe on campus and abiding by federal laws that guarantee educational opportunities to all students.”

Secretary of Health and Human Services Robert F. Kennedy, Jr. said:  “ When an institution – no matter how prestigious – abandons its mission and fails to protect its students, it forfeits the legitimacy that accreditation is designed to uphold.”

DOJ Issues New Guidance on Admissions and Recruitment; ED Seeks Comments to Update IPEDS Survey

On July 29, 2025, Attorney General Pam Bondi released guidance to Federal funding recipients encouraging educational organizations to review their programs, policies, and partnerships to ensure they align with the law. The memorandum clarifies that federal antidiscrimination laws apply to programs or initiatives that involve discriminatory practices, including those labeled as Diversity, Equity, and Inclusion (DEI) programs. The guidance included in the press release identifies “Best Practices” to help entities comply with federal antidiscrimination laws and avoid legal pitfalls. Examples of unlawful practices include race-based scholarships or preferential treatment of “underrepresented groups” for admissions, hiring, or promotion.

On August 7, 2025, President Donald J. Trump issued a Presidential Memorandum entitled “Ensuring Transparency in Higher Education Admissions,” directing the Secretary of Education to, within 120 days of that date, “expand the scope of required [IPEDS] reporting to provide adequate transparency into admissions.” In response to the President’s directive, on August 15, 2025, the Department of Education published a Notice in the Federal Register seeking comments on adding the new IPEDS “Admissions and Consumer Transparency Supplement” (ACTS) survey component. Only certain institutions will be required to collect and report comprehensive data about their admissions decisions going back five years, which must be disaggregated by race and sex and include students’ high school GPA, test scores, time of application, and financial status. Only institutions that use “selective college admissions” as they “have an elevated risk of noncompliance with the civil rights laws” will be required to report the additional data. Comments are due on or before October 14, 2025.

Columbia University Agrees to Pay Over $200 Million to Settle Federal Civil Rights Investigations

On July 23, 2025, Columbia University reached a settlement with the Trump Administration to settle the Trump Administration’s claims of antisemitism on campus.  Columbia University agreed to pay $200 million to settle a number of federal civil-rights investigations and an additional $21 million to resolve Equal Employment Opportunity Commission investigations. As part of the settlement, the institution agreed to make a number of changes to its campus-safety and disciplinary procedures. In return, the federal government will restore most of the $400 million in research funding that was terminated earlier in the year. The agreement will be overseen by a third-party monitor, agreed on by Columbia University and the federal government, who will provide reports every six months.

Columbia University is the first university to reach a settlement with the federal government over allegations of antisemitism on campus. Negotiations between the federal government and Harvard University are ongoing. In the meantime, Harvard University has also taken the Trump Administration to court after the Trump Administration canceled federal funds.

In a press release of July 23, 2025, Secretary of Education Linda McMahon made a statement about the settlement with Columbia University: “The Trump Administration’s deal with Columbia University is a seismic shift in our nation’s fight to hold institutions that accept American taxpayer dollars accountable for antisemitic discrimination and harassment.”

MSCHE Warns Columbia University that its Accreditation is Under Review

On June 26, 2025, the Middle States Commission on Higher Education (MSCHE) sent a letter to Columbia University warning that its compliance with accreditation standards was under review. According to a July 2, 2025, article in Inside HigherEd, the Trump Administration has stated that Columbia University violated federal civil rights laws and is therefore, out of compliance with the accreditor’s standards.  MSCHE plans on conducting an on-site evaluation in April 2025. The article indicated that MSCHE does not have sufficient evidence showing Columbia University is complying with its standard on ethics and integrity. The accrediting agency has requested a monitoring report that is due by November 3, 2025, that demonstrates that the University is in compliance with the standard. A University was reported to have indicated that they are confident it can address the issues cited in the Middle States warning.

Bieda Hopes to Establish a New Accrediting Agency

On July 22, 2025, the Chronicle of Higher Education reported that Anthony Bieda, formerly an executive director of the Accrediting Council for Independent Colleges and Schools (ACICS), is hoping to establish a new accrediting agency, the National Association for Academic Excellence (NAAE). Mr. Bieda now serves as a consultant along with five current NAAE staffers who have worked with for-profit colleges. Another potential accreditor is the Commission for Public Higher Education created from a consortium of six public university systems.  [See article below.]  Other entities that may seek recognition from the Department are the American Academy for Liberal Education and the American Alliance for Accreditation of Short-Term Education Programs.

NAAE’s start-up costs are from the American Academy of Sciences and Letters (AASL), which was formed in 2023 and publicly launched in October 2024. AASL gave NAAE $600,000 to create a new accreditor with three principles: academic excellence, robust scholarship, and freedom of thought. The plan is to measure student success in terms of how college shapes students’ personhood as opposed to graduation rates and career outcomes. That said, Mr. Bieda was quoted as saying:  NAAE “will require more explicit measurement of student learning and student outcomes than most of the regional accreditors do.”

In April, President Trump signed an Executive Order that seeks to expedite approvals of new accrediting agencies. The EO also plans to make it easier for institutions to change to another accreditor. However, at the same time, the Trump Administration is trying to dismantle the Department. It is not clear how new accrediting agencies will be able to proceed.

State University System of Florida’s Board of Governors Approve Plans to Start a New Accreditor

On July 11, 2025, Inside Higher Ed reported that the State University System of Florida’s Board of Governors voted to create a new accrediting agency, in coordination with five other state university systems. The decision came after a heated discussion about the details of the plan.  Chancelor Raymond Rodriguez argued that the Commission for Public Higher Education (CPHE), the new accreditor, would eliminate the bureaucracy that exists with current accrediting agencies. A number of the Board members expressed concern there were many details that were not addressed, such as the accreditor’s governance structure, and the roles of the governing board and board of directors were not delineated. Some board members asked for budget projections of what CPHE would cost before they could vote. Despite all of the concerns and questions, the Board of Governors voted unanimously to approve the measure.