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By Mike Bilfinger, Assistant Director, Public Policy, ̽»¨Â¥
August is generally a sleepier time in D.C., thanks to Congress being out on recess; however, this August has seen no shortage of significant news stories impacting higher education. Here is a brief overview of some of the major stories from the past two weeks.
Accreditation
Before members left for August recess, the House Education and the Workforce Committee advanced the (H.R. 2516), which would prohibit college accreditors from requiring institutions to adopt diversity, equity, and inclusion standards. The House previously passed the bill in the 118th Congress as part of the ; however, the measure did not pass the Senate. The bill is now seeing renewed interest amidst President Trump’s efforts to overhaul college accreditation.
It’s not just the federal government that is seeking to influence accreditors; some accrediting agencies are making changes on their own. For instance, the Accrediting Commission for Community and Junior Colleges is to gauge student outcomes for the institutions it oversees, with a particular focus on return on investment.
Public Service Loan Forgiveness
Back in March, President Trump signed an aimed at revamping the Public Service Loan Forgiveness program, and which employers qualify. Fast forward to August, and the U.S. Department of Education published a that would exclude employers who “engaged on or after July 1, 2026, in activities that have a substantial illegal purpose.”
This includes providing health care services to transgender youth, facilitating the violation of federal immigration laws, violating state laws, or engaging in an activity that facilitates illegal discrimination. Public comments can be submitted by September 17, 2025, via the .
College Admissions
On the college admissions front, U.S. Secretary of Education Linda McMahon made directing the National Center for Education Statistics to begin collecting more admissions data starting in the 2025-2026 school year to ensure race-based preferences are not being used in college admissions. According to the :
As part of their regular data reporting process, institutions of higher education will now have to report data disaggregated by race and sex relating to their applicant pool, admitted cohort, and enrolled cohort at the undergraduate level and for specific graduate and professional programs. This data will include quantitative measures of applicants’ and admitted students’ academic achievements such as standardized test scores, GPAs and other applicant characteristics.
̽»¨Â¥ is closely monitoring this story as some experts have raised initial concerns about the additional time needed to complete this reporting and ensuring that federal student privacy laws are followed. Public comments can be submitted by October 14, 2025, via the .
In other college admissions news, will no longer consider applicants’ race in their admissions processes.
Lastly, three students and a recent graduate are , alleging their early-decision admissions policies are tantamount to price collusion because they effectively prevent students from comparing financial aid packages.
In the Courts
In news from the judiciary, multiple federal judges have halted actions taken by the Trump administration targeting DEI. Most notably, the Education Department’s prohibiting institutions from considering race in all aspects of education unlawful due to the process the administration used to enact the ban. In the , Judge Gallagher wrote, “the administration is entitled to express its viewpoints and to promulgate policies aligned with those viewpoints…but it must do so within the procedural bounds Congress has outlined.”
In other judiciary news, a federal judge ordered the Education Department’s so it can carry out its congressionally mandated functions. This decision comes after the Trump administration tried to shutter seven of the 12 regional OCR offices and lay off over 1,300 staff across the entire department. Inside Higher Ed has a against the Trump administration.
Federal Appropriations
Back in May, the Trump administration released its , which proposed cutting the Department of Education’s funding by approximately 15%. Before going on recess, to fund Labor, Health and Human Services, the Education Department, as well as several other smaller federal agencies.
passed in a 26-3 vote and would see Education Department funding maintained at nearly $79 billion. In doing so, the Senate rejected the President’s request to completely cut TRIO program funding and to reduce the maximum Pell Grant award.
However, the administration is making attempts to cut federal spending in other ways. For instance, to academic and cultural exchange programs run by the U.S. Department of State, effectively ending these programs. At least 22 programs are on the list to be removed from funding for fiscal year 2025.
Changes to the U.S. Department of Education
Despite the political complexity of shutting down the Education Department, the Trump administration and its congressional allies remain committed to delivering on the president’s campaign-trail promise. In fact, Chair of the House Education and the Workforce committee, Tim Walberg (R-Michigan), floated the idea of rather than in one fell swoop. Senate Health, Education, Labor, and Pensions Committee Chair Bill Cassidy (R-Louisiana) seemed to agree with Rep. Walberg when he said, “people want proof of concept before they vote for a whole shebang, right?”
In the meantime, the Education Department continues to grapple with the significant changes included in the One Big, Beautiful Bill, signed into law on July 4, 2025. A four-hour hearing hosted by the Department the higher education sector has with the final legislation. From capping federal student loans to creating new loan repayment plans to expanding Pell eligibility to specific short-term programs, public commenters at the hearing argued that lawmakers left serious gaps. For instance, the legislation doesn’t explain:
What data will be collected for the short-term Pell.
Who will have to take on that reporting.
How new requirements could increase administrative burdens for institutions.
All the while, the number of complaints about the Office of Federal Student Aid’s operations is growing, according to the from the National Association of Student Financial Aid Administrators. Worryingly, the survey found that 72% of in FSA’s communications since the Education Department had mass layoffs in March.
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