Washington Update

Introduction by Barbara K. Mistick

Dear Colleagues,

President Trump wasted no time this week in issuing executive orders that, while not specific to higher education, will certainly affect many institutions. The orders covered issues such as immigration, DEI, and gender and identity-related issues. The president also announced a hiring freeze that will prevent federal agencies from hiring new employees for 90 days, at least temporarily limiting the ability to fill understaffed agencies. (See our lede story for more details.)

Trump has tapped Denise Carter as Acting Secretary at the Department of Education while Secretary nominee Linda McMahon awaits her confirmation hearing. Carter had been acting COO of the Department’s Office of Federal Student Aid. The administration also announced several key senior political appointees at the Department. However, Trump has not announced who he will nominate for the undersecretary position, which is traditionally the lead higher education representative and must be approved by the Senate.

As we continue to monitor congressional priorities, we know that we have challenges ahead on issues such as risk sharing, the proposed elimination of some of the major federal student loan programs, reconsideration of all the student and family tax benefits, and further executive orders that could dramatically reshape the higher education landscape. 

The fast-tracked reconciliation process continues to be our number one concern, and a House Budget Committee document that was leaked this week highlights a host of problematic proposals that demonstrate the array of student and institutional supports that could be eliminated during reconciliation. (See our story below for more details.) You will hear more from NAICU on these and other reconciliation-related issues in the weeks and months ahead.

As I have been writing for several weeks, NAICU’s upcoming Annual Meeting & Advocacy Day takes on added importance within this legislative and regulatory environment. In a testament to NAICU’s national network and reach, we will have Senate Majority Leader John Thune (R-SD) and House Committee on Education & Workforce Chair Tim Walberg (R-MI) discussing their goals, objectives, and perspectives from both sides of Capitol Hill in sessions on Monday afternoon, February 3. We will also have a session with key education committee staff members discussing their priorities from both sides of the aisle.

This will truly be a pivotal meeting for getting our agenda in front of policy makers early in the new congress and administration.

Soundbites

  • FAFSA Batch Corrections Update. The Department of Education provided an update on the timeline for the release of batch corrections functionality for the 2025-26 Free Application for Federal Student Aid cycle. Batch corrections are expected to go through a short beta testing process throughout most of February, and the Department expects a full release by the end of the month. The exact date will be announced soon.
  • Student Loan Forgiveness. Before President Biden left office, the Department of Education announced a final round of student loan forgiveness under his administration, cancelling over $600 million in student loan debt for 4,550 borrowers through the income-based repayment plan, and 4,100 borrowers through borrower defense to repayment. The total amount of student loan debt forgiven by the Biden Administration is $188 billion to more than 5 million borrowers.
  • Senate Education Committee gets Organized. The Senate Committee on Health, Education, Labor and Pensions held its organizing meeting for the 119th Congress under the direction of committee Chair Sen. Bill Cassidy (R-LA). Cassidy outlined the committee’s top priorities, which include, among others, addressing antisemitism on college campuses. Ranking Member Sen. Bernie Sander (I-VT) focused his remarks on public college affordability.
  • Title IX/NIL Guidance. Days before President Biden left office, the Department of Education issued guidance clarifying how the agency will apply Title IX to NIL-related compensation and benefits. Specifically, the guidance notes that Title IX covers the benefits and opportunities that a school provides related to NIL activities, including publicity and support services, and explains that school payments for use of a student’s NIL constitutes financial assistance for purposes of Title IX. The guidance, however, does not address Title IX’s application to NIL compensation provided to students by third parties, and it is unclear whether the Trump Administration will amend or enforce the new guidance.

I hope you have a pleasant weekend,

Regards,

Barbara

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


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