Introduction by Barbara K. Mistick

Dear Colleagues,

After months of negotiations, the House narrowly passed its version of a budget reconciliation bill early yesterday morning by a vote of 215 to 214. While a handful of technical revisions were made during the bill’s path from committee to floor, the sweeping changes to higher education policy were left almost entirely intact.

Among the most concerning provisions are significant changes to Pell Grant eligibility, the elimination of the in-school loan interest subsidy for undergraduates, the termination of the Grad PLUS program, caps on graduate borrowing, and substantial changes to the cost of attendance calculations and institutional eligibility to receive federal financial aid. The bill also includes a controversial federal risk-sharing proposal that would disproportionately impact the private, nonprofit sector and a broad expansion of the higher education endowment tax.

In advance of the vote, NAICU sent a letter to Speaker Johnson (R-LA) and Minority Leader Jeffries (D-NY) opposing the reconciliation package. That letter was cosigned by 42 associations and organizations representing the diversity and breadth of the private, nonprofit sector of American higher education. While we expressed appreciation for a few positive provisions in the bill, the harmful proposals far outweighed any potential benefits.

For a summary of the bill, sample letters for your campus, and other resources, we encourage you to visit the NAICU Reconciliation Advocacy Center.

What’s Next?

With the House having completed its work, all eyes are now on the Senate. So far, the Senate has only adopted a baseline budget resolution and has not yet introduced any legislation. Senate Majority Leader John Thune (R-SD) has publicly stated his goal to have the Senate complete its version of the reconciliation bill by July 4.

As with past reconciliation efforts, we expect significant differences between the House and Senate proposals. These differences will need to be resolved before a final package can become law, making this moment a critical window for advocacy.

How You Can Help

With the Senate scheduled to recess for Memorial Day, we urge you to use this opportunity to meet with senators while they are home. Your voices matter, and this is the best time to ensure the higher education provisions of the House-passed bill do not gain traction in the Senate. Combined with our ongoing work in Washington, this “home-and-away” strategy remains our strongest tool for defending students and preserving institutional strength.

Soundbites

• A federal district court judge in Massachusetts granted a preliminary injunction that temporarily blocks the Department of Energy from imposing a 15% cap on indirect costs for research grants with institutions of higher education. A similar lawsuit against the National Institutes of Health resulted in a permanent injunction, while a lawsuit against indirect cost caps established by the National Science Foundation is still pending.

• This week the Department of Education released a summary of Secretary Linda McMahon’s proposed priorities for projects funded under the Department’s discretionary grant programs. The proposed priorities, which will replace Biden-era priorities once they are finalized, include: (1) evidence-based literacy; (2) expanding educational choice; and (3) returning education to the states.

Thank you for your continued engagement.

Regards,

Barbara

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

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