Introduction by Barbara K. Mistick

Dear Colleagues,

This week, the House Education & the Workforce Committee completed a critical markup of legislation introduced as part of the budget reconciliation process. The proposed legislative text seeks to extract more than $330 billion in savings from federal higher education programs.

Among the most concerning elements of the bill is the introduction of a federal “risk-sharing” model that would penalize institutions financially based on program outcomes, without regard to realistic performance indicators or student success. Proposals to eliminate the Grad PLUS program and undergraduate in-school interest subsidies, restrict graduate borrowing, and tie federal aid to the median cost of college by academic program threaten to undermine student access and institutional sustainability—particularly at colleges serving rural and underrepresented populations.

Finally, proposals to tighten Pell Grant eligibility and the attendant cuts to student aid grants are also deeply concerning.

I know there are questions related to the potential impact these proposals could have on our institutions. NAICU is developing tools and resources to help you navigate this legislative environment and assist in your advocacy efforts, including. 

• Webinar: NAICU is hosting a webinar [REGISTER] on Monday, May 5, 3:00-4:00 p.m. EDT to address reconciliation, the first 100 days of the Trump Administration, and provide details on the policy timeline and NAICU’s advocacy strategies.
• The Action Alert I sent earlier this week, which includes talking points and a sample letter to send to your representatives.
• The letter sent by NAICU and the other presidential higher education associations to the House Committee on Education & Workforce outlining its opposition to many of the proposals contained in the reconciliation bill.
• We will soon have dedicated webpages that will house all the materials related to these issues that will provide a one-stop location for you to access the information you need on these topics.

Your voice and input with your Members of Congress will be instrumental in the weeks ahead.

Though Congress and the budget reconciliation process are demanding a lot of attention, the Department of Education continues its efforts to implement the administration’s education agenda. Yesterday, NAICU presented oral testimony to the Department on a wide range of issues related to the announced negotiated rulemaking session scheduled to convene later this year. NAICU’s testimony focused on the need to streamline regulations, improve clarity around Public Service Loan Forgiveness and repayment plans, and general reforms to lessen the burden on private, nonprofit governance, such as financial responsibility standards. NAICU will also submit written comments as a companion to its oral testimony.

Soundbite

• Accreditation. In late-breaking news yesterday, the Department of Education lifted the Biden Administration’s moratorium on accepting applications for new accreditors and issued new guidance that will streamline the process for institutions seeking to switch accreditors. Both of these steps were taken in order to implement President Trump’s recent executive order on accreditation. Further detail will be provided next week’s Washington Update.

I hope you have a pleasant weekend.

Regards

Barbara

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

For more information, please contact:
Barbara K. Mistick, D.B.A.