Introduction by Barbara K. Mistick

Dear Colleagues,

Welcome back! I hope you have had a safe and successful return-to-campus and start to your academic year. While Washington Update may have been on hiatus the past few weeks, the administration was very active, and with the return of Congress this week action is already heating up on the other end of Pennsylvania Ave.

Today’s issue provides a comprehensive look at August’s activity, bringing you up to speed on the key actions, decisions, and proposals from the month.

There were two key news items this week that I want to highlight.

First, on Tuesday House Republicans passed a spending bill that proposes a 15% cut to the budget of the Education Department in their FY 2026 funding bill. Those cuts are consequential for the federal student aid programs. Although President Trump’s budget proposal contained steep cuts to the maximum Pell Grant, House Republicans rejected them and maintained the maximum award at its current level. The House Republicans’ proposal also maintains funding for the TRIO and GEAR UP programs. However, it eliminates funding for the SEOG program and would cut funding for Federal Work-Study by nearly 40%.

Second, a federal judge ruled Wednesday that the Trump Administration’s move to freeze Harvard’s federal research grants was illegal. We will have more coverage on the decision next week. In the meantime, the White House said it would immediately appeal the decision.

Soundbites

FAFSA Updates for 2026-27. The Department of Education announced changes to the Free Application for Federal Student Aid form for the 2026-27 award year, which will be available on October 1, 2025. In addition to the exclusion of the net worth of family-owned businesses, family farms, and commercial fishing businesses from aid eligibility calculations, as recently enacted by the One Big Beautiful Bill Act, students who have a Student Aid Index of $14,790 or more will be ineligible for a Pell Grant, unless they qualify for certain exemptions.

Guidance Issued on Political Activity and Work-Study. The Department of Education has issued guidance informing institutions that they may not pay students for jobs related to partisan or nonpartisan political activities using Federal Work-Study funds. This guidance reverses previous guidance from the Biden Administration that allowed a broader interpretation of voter registration engagement for student work, which included “get out the vote,” voter registration, voter assistance or poll work as eligible activities under Federal Work-Study. The Department is also encouraging institutions to employ students for real-world experience more directly related to their field of study.

SCOTUS Rules in NIH Grants Case. In a highly fractured and convoluted ruling, the Supreme Court issued an emergency order that allows the Trump Administration to cut funding for National Institutes of Health research grants that were delayed or terminated for failing to effectuate the agency’s new priorities. The Court’s divided ruling also appears to allow the plaintiffs to challenge the loss of funds in a court that hears contract disputes while also allowing them to challenge the government’s policy in the district court that originally blocked the cuts. However, practical and legal considerations make it unlikely that the grantees would recover the funding even if they ultimately prevail.

IPEDS Training Webinar Series. NAICU’s IPEDS trainings, in partnership with Carolyn Sloane Mata, Ph.D., a former IPEDS educator who works with several of our state associations, continues this month with a deeper dive into the IPEDS fall collection. Join us on Sept. 15 from 2:00-4:00 p.m. EDT. You can register for the remaining 5 webinars and view last month’s session on our IPEDS webpage. As a reminder, these trainings are intended for campus institutional research staff who are new to IPEDS or looking to reinforce their understanding of the data system.

Voter Registration and Civic Engagement. National Voter Registration Day (Sept. 16) and Constitution Day (Sept. 17) are just a couple weeks away! As a reminder, all campuses are required to observe Constitution Day. Additionally, Virginia and New Jersey have gubernatorial elections that will affect students and campuses in those states. Prior to each gubernatorial and federal election cycle, colleges and universities are required by the Higher Education Act to assist students with the voter registration process, and NAICU’s Your Vote Your Voice initiative offers guidance on federal requirements, best practices, and ready-to-use voter registration tools to help campuses comply with these obligations. 

I know I have given you much to digest and that you are focused on the start of your academic year. However, there are significant issues being debated in Washington now that will have considerable implications for your students and campus. NAICU will continue to keep you engaged in our advocacy efforts and how you can help.

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.