Introduction by Barbara Mistick

Dear Colleagues:

As part of the continued push to delay the October 1 reporting deadline for the Financial Value Transparency/Gainful Employment regulations, Senator Roger Marshall (R-KS) authored a bipartisan letter, signed by 19 of his Senate colleagues, to Secretary Miguel Cardona requesting that the reporting requirements be delayed until July 2025. The letter outlines the senators’ concerns about the effects the delays in the rollout of the FAFSA are having on the ability of institutions to meet the upcoming deadline. My thanks to Matt Lindsey of the Kansas Independent College Association for spearheading the work for our sector, along with his state executive colleagues, in securing the signatories on the letter. NAICU will keep you posted on any response to the efforts to delay implementation.

Here in the nation's capital, Congress is back in session with a three-week sprint to keep the government open and consider legislation that could be politically advantageous before recessing until after the November elections.

In pursuit of this goal, Speaker Mike Johnson (R-LA) proposed a continuing resolution (CR) to keep the government running until March 28, 2025, but had to delay this week’s vote due to a lack of support from within his caucus. The measure is not expected to pass the Senate with a six-month extension. Both the Senate Republican leadership and congressional Democratic leaders agree that the CR should only last until December to allow final FY 2025 funding bills to be completed in the post-election lame duck session. For student aid funding, cuts to Supplemental Educational Opportunity Grants and Federal Work-Study remain on the table, along with a proposed $100 increase in the Pell Grant maximum award. NAICU will continue to fight cuts and advocate for increases in the federal student aid programs for next year.

Meanwhile, there is continued pressure in the House to move the College Cost Reduction Act, which includes institutional risk-sharing for loan losses to the federal government. While this proposal comes from Republicans, the Bipartisan Work Force Pell Act is the legislation that could serve as a compromise vehicle to complete end-of-session education legislation. The Bipartisan Workforce Pell Act would further penalize private colleges that are paying the endowment tax by requiring risk-sharing by those institutions to cover federal loan losses. Several other bipartisan bills also could see action before the end of the session, including anti-hazing legislation that was marked up in the House this week (see Washington Update article below for more details).

As we watch the moving parts carefully, we encourage you to communicate to your Representatives that these proposals to cut student aid funding and require institutional risk-sharing will be devastating for your institution.

Soundbites

• The Department of Education announced that institutions interested in participating in the beta testing process for the 2025-26 Free Application for Federal Student Aid (FAFSA) can begin notifying the agency by submitting their interest form. More information on the beta testing process and eligibility requirements can be found on the Department’s website. The deadline to apply for any of the beta periods is September 20 at 3:00 p.m. EDT.

• The Fifth Circuit Court of Appeals ruled this week that the Department of Labor (DOL) has the authority to use a minimum salary requirement to define so-called “white collar” exempt employees. The ruling is a small win for the DOL, as it continues to defend the current final overtime rule issued in April. While several pending legal challenges to the final rule argue that DOL exceeded its authority in using a minimum salary threshold rather than the duties test for white collar determinations, this ruling is not expected to impact how the courts will decide on the current challenges to the final rule.
  
  
• NAICU joined its higher education association colleagues in sending a letter to the leadership in the House of Representatives responding to bills being considered this week related to China. Of the four bills being considered, the higher education community supported two and opposed two. The community supported the Countering the PRC Malign Influence Fund Authorization Act (H.R. 1157) to authorize State Department funding against foreign malign influences activities, and H.R. 7686, which clarifies a definition in the CHIPS and Science Act regarding foreign talent recruitment. The bills that were opposed were the Department of Homeland Security Restrictions on Confucius Institutes and Chinese Entities of Concern Act (H.R.1516), which restricts the department’s funding for institutions with partnerships with Chinese institutions of higher education, and the Protect America’s Innovation and Economic Security from CCP Act (H.R.1398), which would reestablish the “China Initiative” at the Department of Justice. All the measures passed in the House.
  
  
• The Federal Emergency Management Agency (FEMA) is offering a series of webinars for institutions with faith-based missions and/or spaces of worship in conjunction with The Protecting Places of Worship National Weeks of Action (September 16-27), including a threat briefing on Thursday, September 19, 2024, at 2:00 p.m. EDT. The briefing is organized as part of National Preparedness Month. Other webinar topics include Suspicious Activity Recognition, Response to Suspicious Behaviors and Items, and Introduction to Bomb Threat Management.

As I write this, our colleagues at institutions in Louisiana and elsewhere are dealing with the effects of Hurricane Francine. As you know, with President Biden’s federal disaster declaration for much of Louisiana, several institutions (and their employees) would potentially be eligible for federal assistance through the Federal Emergency Management Agency (FEMA), under the provisions of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. As a reminder, NAICU has an issue brief with FEMA resources and recently conducted a webinar with a FEMA representative who shared additional resources for working with the agency before, during, and after an emergency