Washington Update

Introduction by Barbara K. Mistick

Two different, yet interconnected, developments occurred this week at both ends of Pennsylvania Ave. that will have dramatic effects on higher education and the students we serve. Congressional action on the continuing resolution (CR) for FY 2025 continues as today’s deadline to avoid a government shutdown quickly approaches. On Wednesday, Senate Democrats indicated that they do not plan on voting for the House package, which would fund the government through September 30.

If Senate Republicans are unable to secure several Democratic votes to surpass the 60-vote threshold to pass the CR, the government will shutdown at midnight tonight. (See our story below for more details.)

While this was happening, Education Secretary Linda McMahon fired nearly half of the Department’s 4,100 employees nationwide. This move could cause considerable disruption in the administering of student aid, among many other aspects of the programs and initiatives under the Department’s purview. While McMahon said her directive from the Trump Administration is “clearly to shut down the Department of Education,” a group of 21 Democratic attorneys general have sued the administration in an effort to halt the layoffs. (See our story below for more details.)

These two moves are causing considerable uncertainty surrounding the federal student aid funding levels and the ability to administer the student aid programs.

That is why I requested in the Action Alert I sent on Wednesday that you contact your Members of Congress and ask them to seek assurances from their leadership and the Administration that the federal student aid programs will not be cut, funding levels for the upcoming academic year be set immediately, and that the layoffs at the Department do not upend operations and lead to another situation like the FAFSA debacle. The Alert includes talking points that you can tailor and use in your advocacy.

Soundbites

  • $400M in Grants to Columbia Cancelled. A federal task force announced the cancellation of $400 million in grants and contracts awarded to Columbia University due to the institution’s alleged failure to protect Jewish students from antisemitism. The legal basis for the cancellation is unclear, but at least 60 institutions received letters warning of similar enforcement action as the Trump Administration continues its close scrutiny of colleges and universities.
  • AI to be Used to Assist in Visa Reviews. The State Department announced that as part of the Executive Order on “Protecting the U.S. from Foreign Terrorists and other National Security and Public Safety Threats” issued in January, that it will use AI to assist in reviewing tens of thousands of current student visa holders. Targeting the social media accounts of current international students studying in the U.S., this effort would “catch and revoke” the visas of anyone involved in pro-terrorist activities, such as anti-Israel demonstrations or pro-Hamas sympathies or protests.
  • Legislation Introduced to Make Sec. 127 Expansion Permanent. Senators Mark Warner (D-VA) and John Thune (R-SD) joined Reps. Nicole Malliotakis (R-NY) and Scott Peters (D-CA) in introducing companion legislation (772 and H.R. 1801) that would make permanent the temporary expansion of IRC Sec. 127 (employer-provided education assistance) to include student loan repayment. Currently, employers can provide employees up to $5,250 in annual tax-free assistance to use for either tuition assistance or student loan repayment. The student loan repayment option was added during the pandemic as part of the CARES Act but is temporary and set to expire at the end of this year unless extended.

This week, I was honored to participate in several meetings and panel discussions to help provide insight into the status of federal higher education policy in Washington and encourage advocacy engagement on issues of importance to students, institutions, and communities.

My thanks to the Council of Independent Colleges and Universities (CICU) President Lola Brabham for inviting me to participate in a discussion during their annual meeting that focused on the current federal and state higher education landscapes.

NAICU was also fortunate this week to host Marquette University President Kimo Ah Yun and his colleagues Mary Czech-Mrochinski and Rana Altenburg, who serves as a government relations representative on NAICU’s board, and Harvey Mudd College President Harriet B. Nembhard.

Finally, I had the pleasure of networking with higher education leaders from around the country, including several NAICU members, during a meeting of the Women’s College Coalition at the Library of Congress.

There is a lot going on in Washington right now. NAICU is working incredibly hard to ensure the voices of our institutions are heard and included in the deliberations on these issue priorities. Thank you for your continued commitment to and support of private, nonprofit higher education. Together, we are making a difference.

I hope you have a pleasant weekend.

Regards

Barbara

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


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