Introduction by Barbara Mistick

It has been a chaotic week in Congress. A deal to keep the government open that contained several provisions, including substantial funding for disaster aid and support for farmers among numerous other proposals, was turned on its head when Elon Musk took to X, his online social platform, to prod Republicans to step away from the bipartisan deal negotiated and approved by House Speaker Mike Johnson (R-LA). Then yesterday, President-elect Donald Trump also denounced the spending bill saying the package was too big and that a straight extension of current program funding is all that should be included in the funding package.

These moves forced Speaker Johnson back to the negotiating table and, as Washington Update went to print, it appears there is a new deal that President-elect Trump is urging be passed but that Democrats are deriding. All of the proposed deals would, among other things, extend funding at the current levels until mid-March. The student aid funding components, contained in the bill, were not part of the negotiations or this week’s controversies (see the lede story below for details on higher education spending).

What was significant for private, nonprofit colleges this week was the fact that departing House Committee on Education & the Workforce Chair Virginia Foxx (R-NC) did not have the votes to bring the College Cost Reduction Act (CCRA) to the floor during the lame duck session. While this is welcome news in the short-term, it is likely that the bill will be amended before it is reintroduced in the next Congress with many key concerns still under consideration and ripe for inclusion in a fast-track budget reconciliation when the 119^th Congress convenes next month.

In discussing her disappointment with the outcome for CCRA in an end-of-term interview, Foxx highlighted her frustration with the members of her party who, after hearing from college presidents that the bill would harm their institutions, could not lend their support to her legislation. My sincere thanks to those who engaged with their Members of Congress on this issue and highlighted the detrimental effects the bill would have on institutions. While our work to protect our institutions and students has only just begun, this accomplishment is yet another example of the power of college presidents, along with our state executive and Secretariat networks, in translating the exact impacts of various proposals on our campuses, students, and the communities we serve.

NAICU’s Advocacy Day, the traditional day when our membership heads to Capitol Hill to meet with their congressional delegations, will take on even greater importance when we meet for our Annual Meeting & Advocacy Day, February 2-5, 2025.

While we’re together in Washington, Congress will be considering or starting to frame its thinking on: appropriations priorities, including federal student aid funding; student loan risk sharing for institutions; items for inclusion in a large-scale tax bill, like new taxes on nonprofits and an expansion of the endowment tax; deregulation; and other proposals that will impact independent higher education for years to come. So, these meetings and conversations will be both timely and critical to our efforts.

As a leader of one of the nation's independent colleges and universities, this is a critical time for you to visit with your elected officials, both old and new, and to make sure our voices are heard.

Soundbites

• NAICU Seeks Further FVT/GE Delay. NAICU joined a community letter asking the Department of Education to further delay the Financial Value Transparency (FVT) and Gainful Employment (GE) reporting deadline from January 15 to July 2025. This action signals widespread community support for the delay long sought by NAICU. While the Department has been resistant to additional delays, NAICU will continue advocating for relief from the onerous reporting requirements under FVT/GE.

• New Rule Modernizes H 1-B Visa Program. The Department of Homeland Security (DHS) announced a final rule that aims to enhance U.S. companies’ ability to fill job vacancies in critical fields, including campus faculty, research, and other positions. The new rule modernizes the H-1B visa program by streamlining the approvals process, increasing its flexibility to better allow employers to retain talented workers, and improving the integrity and oversight of the program. NAICU joined others in the higher education community in sending a letter to DHS late last year advocating for these improvements.
  
• House Antisemitism Report. The House of Representatives released a report detailing findings from its multiple investigations of antisemitism in America. Among other things, the report, which is highly critical of colleges and universities, recommends that the Department of Education take more aggressive enforcement action on Title VI and that Congress pass the College Cost Reduction Act, the Deterrent Act, and legislation to strip federal funding from institutions that boycott Israel. The report compiles findings from inquiries conducted by multiple House committees, including the previously released report by the House Committee on Education and the Workforce.

This is the final issue of Washington Update for the year. We will be on a holiday hiatus and return to our regular distribution schedule on January 10, 2025.

This has been a remarkable year in so many ways. We have made incredible progress on the issues facing independent higher education and the students we serve. Your contributions, and those of the entire NAICU membership, play a vital role in ensuring that our voices are heard. We have much work ahead and will need to hit the ground running early in the New Year.

I wish you a safe, happy, healthy, and restful holiday season and a very Happy New Year!