Higher Ed Policy Roundup: Vol. 10 - Issue 24

This Week In Washington

This week, Congress passed the Continuing Appropriations and Extensions Act of 2027 (H.R. 6500), which will keep federal agencies operating at current funding levels through December 11, 2026, and avoid a government shutdown this fall. This continuing resolution would temporarily block the Office of Management and Budget (OMB) from implementing its proposed Uniform Grants Guidance rule, which intends to restructure federal grants and cooperative agreements. The bill now goes to President Donald Trump for his signature.

The Department of the Treasury and the Internal Revenue Service (IRS) have issued proposed rules that would end federal tax-exempt status for private K-12 and postsecondary schools that engage in racial discrimination. Under the proposed rule, a private school will not qualify for federal tax-exempt status if it adopts, maintains, or enforces a policy or practice that discriminates based on race, color, or national or ethnic origin. The rule would apply to admissions, educational policies, scholarships and loans, athletics, and every other school-administered program.

The final regulation would apply to taxable years beginning on or after May 31, 2027, providing affected institutions with sufficient time to review and update their policies and procedures to ensure compliance. The proposed regulations are now open for public comment for 60 days.

News You Can Use

The American Enterprise Institute (AEI) published a report analyzing how the elimination of Grad PLUS is expected to reshape financing for graduate and professional education. The report estimates that about 370,000 borrowers will have funding gaps with the new federal loan limits. Funding gaps are expected to be concentrated at high-cost institutions and in several health professions.

The Congressional Research Service (CRS) released a report summarizing recent legal challenges surrounding the Public Service Loan Forgiveness (PSLF) program. The report outlines options for Congressional response and summarizes recent court rulings and how the Department of Education (ED) is implementing changes.

Recent Legislation

The following bill(s) have been recently introduced for consideration by the 119th Congress (2025-26):

H.R. 10232 – [Rep. John Mannion (D-NY-22)] would prohibit the transfer of certain offices and functions of ED to other federal agencies.

H.R. 10220 – Streamlining Income-driven, Manageable Payments on Loans for Education (SIMPLE) Act [Rep. Suzanne Bonamici (D-OR-1)] would help borrowers avoid delinquency by automatically enrolling delinquent borrowers in income-driven repayment plans to make repayment more affordable.

H.R. 10206 – Restoring Opportunity for Advanced Education Act [Rep. Shomari Figures (D-AL-2)] would expand access to graduate and professional education by reversing provisions in H.R. 1 that limit access to federal student loans for graduate and professional students.