Dear Colleagues,

I have some tentatively good news to report regarding the Bipartisan Workforce Pell Act (H.R. 6585). The bill has been pulled from floor consideration this week by the leadership in the House of Representatives. Significant opposition to the bill developed during the past several days, particularly concerning the problematic offset that would hold private colleges and universities subject to the endowment tax liable for federal student loan program costs, such as for congressionally mandated loan forgiveness. 

There have been several important developments related to the offset and the overall status of the bill, including:

• The Committee on Education & the Workforce issued a point-by-point rebuttal to the NAICU letter opposing the bill to all House members, which shows that the letter had raised serious questions among the Republican Caucus members. 
• The broader higher education community weighed in with its own letter in opposition to the bill. I am grateful that my public sector colleagues joined us in raising concerns about the inappropriateness of targeting private institutions paying the endowment tax. 
• The National Education Association, the American Federation of Teachers, the American Federation of State, County and Municipal Employees, and the AFL-CIO, among many other groups, all publicly announced their opposition to the bill.
• In a message to attempt to garner support among Democrats, Education and Workforce Committee Ranking Member Rep. Bobby Scott (D-VA) sent a message to the House Democrats pushing for support for the bill by assuring them that the offset would not be included in any Senate companion legislation.

While these actions may not be enough to prevent rescheduling consideration of the bill, which could resurface again as early as next week, these are significant steps in ensuring that the offset could still be amended before any final bill is approved. I will continue to keep you apprised of the bill’s progress.

This week’s Washington Update reports on the continuing saga of FY 2024 appropriations, where this week Congress was able to avoid a government shutdown by extending already delayed funding deadlines further into March. The issue also covers the fourth and final session of the student loan debt negotiated rulemaking.

• The Department of Education announced three updates to its ongoing Free Application for Federal Student Aid (FAFSA) rollout. First, after a more careful review of the statute, the Department announced the completion of another update to student aid calculations under the new need analyses formula however the newly approved FY 2024 Continuing Resolution would reverse this action. Neither the initial change, nor the reversal by Congress, would affect the timing of the delivery of institutional student information records (ISIRs) to campuses. Second, it will begin deploying the resources provided through its College Support Strategy initiative. Finally, it will soon begin sending out the first tranche of system-generated test ISIRs to allow institutions to make sure their updated systems work and are ready for the official mid-March release of student FAFSA data.
• NAICU, along with other members of the higher education community, signed onto an amicus brief in support of Emory University in a case involving a student suicide. At issue in the lawsuit is whether institutions of higher education can be held liable for a student suicide in cases in which the institutions have no knowledge of a student’s intent to commit self-harm.

Regards,

Barbara

Barbara K. Mistick
President, NAICU