Introduction by Barbara K. Mistick

Dear Colleagues,

Last Friday night’s Dear Colleague letter from the Department of Education on diversity, equity, and inclusion guidance has caused considerable angst and confusion among the NAICU membership as well as within the broader higher education community. The Valentine’s Day missive has raised more questions than it provides answers. (See our lede story for more details.)

Due to the confusion and the questions we have been receiving, NAICU is hosting a webinar this morning from 10:00-11:00 EST to discuss the legalities, practicalities, and political considerations brought forth by the guidance (Register). We are pleased that Art Coleman, managing partner and co-founder of EducationCounsel, can join NAICU’s Jody Feder as a panelist on such short notice. They will also answer as many questions as possible from attendees.

Because of the interest in this webinar – it is the largest webinar we have hosted to date – we will be sure to send the recording and presentation slides to our full membership so those who are unable to attend will have access to the discussion.

While the DEI guidance letter has taken center stage this week, last Friday brought good news. The Trump the Administration has extended the FVT-GE reporting deadline until September 30, 2025. This extension allows for edits to be made to both the completers lists, which the Biden Administration had already sent to the IRS for processing but are now being pulled back, and debt reports. We are also working with the Department in hopes of getting better clarification on many of the confusing data collection requirements before the next round of reporting is due.

I want to again remind you of the importance of engaging with your Members of Congress on budget reconciliation. As I wrote in my Action Alert on Tuesday, there is much at stake for higher education in the reconciliation process. Namely, protecting vital student aid programs and student and family tax benefits, and warding off the most detrimental proposals that threaten our sector. The Alert included talking points on student loan reform, cost-sharing formulas (College Cost Reduction Act), gainful employment, the endowment tax, and the student aid programs.

Soundbites

• McMahon Confirmation. The Senate HELP Committee approved the nomination of Linda McMahon as Secretary of Education on a 12-11 party-line vote. The next step in her confirmation will be a vote on the Senate floor in the coming weeks.

• Trump Executive Order. President Trump issued an executive order to halt discretionary federal grants and contracts for institutions that mandate COVID-19 vaccines. More details can be found in NAICU’s updated fact sheet on President Trump’s executive orders.

• State Dept. Funding Pause. Funding pauses from the Trump Administration continue with grant funding at the Department of State temporarily paused until the end of February. The funding pause includes international education and exchange programs at institutions of higher education, including the Fulbright, Gilman Scholarship, Increase and Diversify Education Abroad for U.S. Students (IDEAS), and the Critical Language Scholarship programs.

• Student Athletes as Employees. The National Labor Relations Board revoked a Biden-era memo that said that student athletes should be treated as employees for purposes of the National Labor Relations Act. The memo’s recission will likely halt, at least for the time being, attempts by student athletes to form labor unions.

• COVID Expenditures. The Department of Education issued a memorandum regarding any unused COVID relief funding stating that any future pandemic expenditures must be submitted to the agency for reimbursement after the funds have been expended. Any remaining COVID relief funding that is available to institutions of higher education is likely from funds that were directed to states and made available to institutions.

I hope you have a pleasant weekend. 

Regards

Barbara

Barbara K. Mistick, D.B.A.
President, NAICU