Introduction by Barbara K. Mistick

Dear Colleagues,

The countdown to a potential government shutdown continues to loom over Washington, DC and specifically the House of Representatives, which failed twice this week to pass a military spending bill. If a spending bill can’t be negotiated among House republicans that can pass in the House and Senate and be signed by President Biden before midnight on September 30, all but a limited number of federal employees will be sent home until a deal can be reached. 

Amidst this intraparty chaos, the House Budget Committee did hold a mark up to write a FY 2024 budget resolution – a step that typically occurs in March. The resolution includes policy language about the federal role in higher education (see story below for more details).

Earlier this week, I invited you to participate in an important survey NAICU is fielding to gather feedback on the impact of the proposed overtime rule. Considering we had over 100 completed surveys in the first 24 hours, it is clear the impact of this rule would be far-reaching on your campus. If you haven’t completed the survey, I hope you will find the time before October 4. Your feedback will provide important context to our advocacy work.

As a reminder, comments on the overtime rule must be submitted by November 7. If you submit comments, it would be great if you send a copy to Karin Johns, NAICU’s director of tax policy (Karin@Naicu.edu) so we have a record of the potential impact on our member institutions. 

• Last week, the Department of Education requested public comment for the latest round of updates to the forthcoming 2024-2025 FAFSA form. This is the second, and likely last, draft of the new form before the final version is released in December. For institutions interested in providing input on these changes, comments are due by October 16.

• The House Committee on Education & the Workforce held a markup to consider nine bills, including J. Res. 88, a resolution to prohibit the implementation of the Biden Administration’s Saving on a Valuable Education (SAVE) income-driven repayment plan. The measure passed on a party-line vote and may now be taken up by the House for a full floor vote, though it is unlikely the measure will pass the Senate or be signed by the President. The resolution is the latest in a long line of messaging efforts from the House majority to push back against the Biden Administration’s student loan reform initiatives.

• The Biden Administration approved $37 million in student loan forgiveness for over 1,200 students who attended the University of Phoenix. These loan discharges were part of approved borrower defense to repayment claims made by students who attended the school between Sept. 21, 2012, and Dec. 31, 2014. The Department of Education ruled that these students were misled by the university’s national advertising campaign that falsely represented its partnerships with thousands of companies, including Microsoft, Adobe, AT&T, and the Red Cross, including false claims of hiring preferences for graduates applying to those companies.

In addition to the budget story, this week’s Washington Update also reports on a Pell Plus proposal introduced in the House, an announcement by the IRS that it is halting the processing of Employee-Retention tax Credit claims, a new report from the Consumer Financial Protection Bureau on tuition installment plans, and a House hearing on the VA’s risk-based surveys.

Thank you for all you do for your campus community and independent higher education.

Barbara K. Mistick
President, NAICU