Higher Ed Policy Roundup: Vol. 9 - Issue 4

On Monday, the Office of Management and Budget (OMB) ordered a temporary suspension of all federal financial assistance, leaving many unsure about what programs would be impacted. However, on Tuesday a spokesperson for the Education Department (ED) clarified that the temporary pause would not impact programs that provide assistance directly to individuals, such as Pell Grants and Direct Loans. That same day, a federal judge blocked implementation of OMB’s order, citing a need for courts to have time to review the ramifications of the order. The Trump Administration then seemingly rescinded the freeze according to an OMB memo; however, the White House later clarified that the effort was still in place. The order blocking implementation of the freeze on federal financial assistance will expire on February 3 at 5:00 pm, and a separate federal judge has said that they intend to issue a new block on the freeze because of inconsistent messaging from the White House.

In the wake of a federal hiring freeze announced last week by President Trump, agencies have revoked job offers made to third-year law students through honors programs, as well as summer internships for others. 

The National Student Clearinghouse Research Center published its latest Current Term Enrollment Estimates, revealing that postsecondary enrollment increased by 4.5% in fall 2024, bringing the combined number of enrolled undergraduate and graduate students above 2019 levels for the first time since the start of the COVID-19 pandemic.

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

H.R. 713 – [Rep. Beth Van Duyne (R-TX-24)] would impose a financial penalty on higher education institutions with high percentages of students who default or make insufficient payments on federal student loans.

H.R. 777 – [Rep. Jahana Hayes (D-CT-5)] would amend the Higher Education Act of 1965 to require the Secretary of Education to send information to certain students who submit a Free Application for Federal Student Aid (FAFSA) regarding their potential eligibility for assistance under the Supplemental Nutrition Assistance Program.

S. 308 – [Sen. Tommy Tuberville (R-AL)] would modify the annual and aggregate limits for Federal Unsubsidized Stafford Loans and terminate Federal Direct PLUS Loans for graduate and professional students.