Introduction by Barbara K. Mistick

Dear Colleagues:

This week, the House Appropriations Committee approved its FY 2027 education spending bill, which prioritizes student aid and higher education program funding. NAICU greatly appreciates that the House proposes to increase the maximum Pell Grant award by $50, to $7,445; increase funding for TRIO and GEAR UP; and provide funding for all of the Strengthening Institutions programs, including all minority-serving institutions.

While we appreciate that the bill addresses the projected Pell Grant funding shortfall, we remain concerned that it proposes to eliminate subsidized loans for undergraduate students to offset those costs. The bill also would reduce funding for Supplemental Educational Opportunity Grants (SEOG) and Federal Work-Study (FWS). However, these proposed reductions represent a significant improvement over recent years, when the House proposed eliminating both programs entirely.

The House Appropriations Committee has heard your continued advocacy on the importance of addressing the Pell Grant shortfall while maintaining support for student aid and higher education programs. We look forward to continuing to work with the House and Senate throughout the appropriations process to secure final funding levels that strongly support students.

At the same time, institutions are rapidly approaching the July 1 implementation deadline for the higher education provisions of the One Big Beautiful Bill Act (OB3), one of the most significant changes to federal student aid in a generation. NAICU recently hosted a webinar to help campuses prepare for these changes. If you were unable to attend, the webinar slides and  recording are now available for on-demand viewing.

As campuses prepare for implementation, attention is focused on several major policy changes that will take effect on July 1, including the elimination of Grad PLUS loans; new annual and lifetime borrowing caps for graduate, professional, and parent borrowers; the replacement of existing income-driven repayment plans with the new Repayment Assistance Plan; an earnings-accountability standard applied to every program in every sector; and the launch of Workforce Pell for short-term programs.

We also continue to monitor developments related to negotiated rulemaking and other implementation guidance that may affect institutions as they prepare for these changes. In addition, the House this week passed legislation aimed at strengthening safeguards against student aid fraud and identity theft, reflecting continued congressional focus on protecting the integrity of federal student aid programs.

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.