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House Passes Senate Budget Resolution

On April 9, 2025, the House Republicans voted on the Senate budget resolution, which is a budget blueprint, by a vote of 216 to 214.  With both the Senate and House passing the same budget resolution, the focus now turns to the Committees that received instructions under the budget resolution.  For education matters, these committees include the House Education and the Workforce Committee and the Senate Health, Education, Labor and Pensions Committee.  They have until May 9, 2025, to report legislation that is compliant with the resolution’s instructions.  Both Committees will be required to find about $4 billion in spending cuts over a decade, and both Committees will focus on student loan-related matters to achieve their savings targets.

Departments of Education and Justice Announce Establishment of Title IX Special Investigations Team

On April 4, 2025, the Department of Education (ED) and the Department of Justice (DOJ) announced the creation of the “Title IX Special Investigations Team” (SIT) to ensure “timely, consistent resolutions to protect students, and especially female athletes, from the pernicious effects of gender ideology in school programs and activities.”  The Title IX SIT will streamline Title IX investigations by creating a specialized team of investigators from across ED and DOJ, by including ED Office for Civil Rights investigators and attorneys, DOJ Civil Rights Division attorneys, ED Office of General Counsel attorneys, ED Student Privacy and Protection Office case workers, and an FSA Enforcement investigator.

Secretary of Education Linda McMahon said:  “To all entities receiving federal funding who continue to allow these illegal practices, we will not permit you to trample on women’s rights any longer.”

A copy of the press release is found at:  https://www.ed.gov/about/news/press-release/us-department-of-education-and-us-department-of-justice-announce-title-ix-special-investigations-team.

OPE Calls for Third-Party Comments for Accrediting Agencies Currently Undergoing Review for Recognition by ED

On April 4, 2025, the Accreditation Group, Office of Postsecondary Education (OPE), published a Notice in the Federal Register, which calls for written third-party comments concerning the performance of accreditation agencies under review for the purpose of recognition by the Secretary of Education.  The agencies that will be reviewed in the summer 2026 meeting of the National Advisory Committee on Institutional Quality and Integrity (NACIQI) include the Accrediting Bureau of Health Education Schools (ABHES), the Council on Occupational Education (COE), and the Southern Association of Colleges and Schools (SACS).

A copy of the Federal Register Notice is found at:

https://links-1.govdelivery.com/CL0/https:%2F%2Fwww.govinfo.gov%2Fcontent%2Fpkg%2FFR-2025-04-04%2Fpdf%2F2025-05853.pdf/1/01000195ff327bbc-ca0447c4-699d-4e6f-8998-ae511a8ae434-000000/j699C84QwVLP6_ni4npS8gO0rXMnnK2IO6pYGpLe7Gk=399.

OPE Announces its Intention to Commence Negotiated Rulemaking on Streamlining Higher Education Regulations

On April 3, 2025, the Department of Education’s Office of Postsecondary Education (OPE) announced its intention to commence negotiated rulemaking on various programs authorized under Title IV of the Higher Education Act of 1965, as amended.  ED is seeking feedback on ways to streamline current higher education regulations and federal assistance programs to create efficiencies for students, institutions, and key stakeholders, as well as ways to improve the Public Service Loan Forgiveness Program (PSLF) by refining definitions of a qualifying employer, the Pay As You Earn (PAYE) Repayment plan, and the Income-Contingent Repayment (ICR) plan.  The official Notice was published in the Federal Register on April 4, 2025.

Acting Under Secretary James Bergeron said:  “This process will focus on how the Department can rightsize Title IV regulations that have driven up the cost of college and hindered innovation.”

The Department will host two public hearings – an in-person meeting on Tuesday, April 29, 2025, and a virtual hearing on Thursday, May 1, 2025.  It will also accept written comments that must be submitted through the Federal eRulemaking Portal at Regulations.gov.  The deadline for public comments is 30 days after the publication of the Notice in the Federal Register or May 5, 2025.

A copy of the press release, which includes the link to the draft Federal Register Notice, is found at:

https://www.ed.gov/about/news/press-release/us-department-of-educations-office-of-postsecondary-education-announces-negotiated-rulemaking.

A copy of the official Notice is found at:

https://links-1.govdelivery.com/CL0/https:%2F%2Fwww.govinfo.gov%2Fcontent%2Fpkg%2FFR-2025-04-04%2Fpdf%2F2025-05825.pdf/1/01000195ff327bbc-ca0447c4-699d-4e6f-8998-ae511a8ae434-000000/m8Th0lBWP6Arg_eYc6q1RqU7BfQu9Mfw_YAxBapFME4=399.

OPE Advises Nationally Recognized Accrediting Agencies that ED Will Perform Focused Reviews of Petitions for Renewal of Recognition

On April 3, 2025, the Department of Education’s Office of Postsecondary Education (OPE) advised the Executive Directors of the nationally recognized accrediting agencies that it will be conducting focused reviews of petitions for renewal of recognition for accrediting agencies due to be reviewed at and beyond the summer 2027 meeting of the National Advisory Committee on Institutional Quality and Integrity (NACIQI).  All accrediting agencies reviewed for renewal of recognition prior to that meeting will have completed a full review of every element of the Secretary’s Criteria for Recognition (Criteria).  The focused reviews will continue until such time as the HEA is reauthorized and/or new regulations are promulgated.

Under the focused review, all agencies will be asked to respond to 38 specific sections of the Criteria.  An attachment to the letter describes the selected Criteria.

As part of the focused review, the Department may ask accrediting agencies to respond to additional areas as needed for that agency.  In limited circumstances, if Department staff encounter information during the review of a petition that impacts agency compliance in an area of the Criteria, agencies will be notified and asked to respond to any findings in those areas.

Copies of the OPE letter, along with the disclosure, is found at:

 Focused Review Memo to Agencies FINAL.pdf and  Focused Review Criteria attachment FINAL.pdf.

ED Announces Retirement of FSA Chief Operating Officer and Former Acting U.S. Secretary of Education Denise Carter

On April 2, 2025, the Department of Education announced that Chief Operating Officer (COO) for the Office of Federal Student Aid (FSA) and former Acting U.S. Secretary of Education Denise Carter will retire with more than 30 years in public service.  Ms. Carter has served as Acting Chief Operating Officer for FSA since July 2024 and was appointed as Acting U.S. Secretary of Education on January 20, 2025.

Secretary of Education Linda McMahon said:  “Throughout her distinguished career in public service, Ms. Carter has showcased a willingness to take on challenging roles.  Prior to my arrival to the Department, she served as a pivotal leader – lending unparalleled expertise to incoming officials including myself.”

Starting April 2, 2025, Acting Under Secretary James Bergeron will also serve as Acting Chief Operating Officer for FSA.

A copy of the press release is found at:  https://www.ed.gov/about/news/press-release/us-department-of-education-announces-retirement-of-fsa-chief-operating-officer.

Coalition Sues Trump Administration for Dismantling Department of Education

On March 24, 2025, the National Association for the Advancement of Colored People (NAACP), public school parents, the National Education Association (NEA) and AFSCME Maryland Council 3, supported by Student Defense and Education Law Center (ELC), filed a lawsuit to stop the Trump Administration from dismantling the Department of Education.

“While state and local governments are responsible for the vast majority of America’s public education system, Congress created the Department to help bridge longstanding gaps in educational opportunity and provide critical funding and supports to students.  The Department fulfills that role by enforcing civil rights laws, supporting students with disabilities, promoting equal educational opportunities, bolstering the educator workforce, and administering the Federal Student Aid programs that place college within reach of working Americans.”

A copy of the press release is found at:  https://www.defendstudents.org/news/coalition-sues-trump-administration-for-dismantling-department-of-education-hurting-all-students.

Democrats Demand Greater Transparency Regarding Plans to Dismantle the Department of Education

On March 21, 2025, House Democrats, led by Ranking Member of the House Committee on Education and the Workforce Bobby Scott (D-VA), are demanding greater transparency from President Donald Trump and Secretary of Education Linda McMahon regarding their plans for dismantling the Department of Education.  The group introduced a Resolution of Inquiry requesting all documents related to the Department’s closure, including legal memos, emails, and communications related to the closure of the Department and the reductions in force or downsizing measures at the Department.

A copy of the press release, including the Resolution of Inquiry, is found at:  https://democrats-edworkforce.house.gov/media/press-releases/committee-democrats-take-action-to-hold-the-president-accountable-for-his-effort-to-dismantle-the-department-of-education.

Trump Announces Student Loans will be Handled by SBA

On March 21, 2025, after signing an Executive Order designed to dismantle the Department of Education, President Donald Trump held a press conference and provided some details about how the student loan program would be managed.  President Trump announced that federal student loans would be handled by the Small Business Administration (SBA), while school nutrition and special needs programs would be run by the Department of Health and Human Services (HHS).  “The federal government’s $1.8 trillion student loan portfolio will be “coming out of the Department of education immediately,” adding, “it will be serviced much better than it has in the past.  It’s been a mess.”  While President Trump said that the student loan portfolio would be transferred to the SBA, he did not provide any details as to how it will happen.

Many are Concerned About Proposed Transfer of Student Loan Portfolio to SBA

An article published by POLITICO, on March 31, 2025, indicated that many, including Republicans, had expected President Trump to propose moving the Department of Education’s $1.6 trillion student loan portfolio to the Treasury Department, but instead, the President announced that the portfolio would be sent to the Small Business Administration (SBA).  Although SBA provides financial support to companies for disaster relief, training and other needs, and managed a number of COVID relief programs, it normally runs a smaller operation than the enormous student loan portfolio.  Some are concerned about SBA’s lack of experience with colleges and universities and the time it will take its staff to learn the complex student loan system.  Another concern is that there may be two federal agencies running the student loan program:  the awarding and disbursement system run by the Department of Education, and the repayment and collection process run by the SBA.

The article reported that many Republicans are worried about the huge volume of the student loan debt and the staffing needed to manage the complex system of servicers, borrowers, and loan applications.  Chairman of the House Education and Workforce Tim Walbert was reported to have said:  “A lot of us were thinking it would go to Treasury.  We’re talking about the huge nature of student loans…They have much larger staffing capabilities right now, than SBA, but the president may have something specific in mind that I’m not aware of.”

Trump Signs Executive Order Seeking to Dismantle Department of Education

On March 20, 2025, President Donald Trump signed an Executive Order (EO) to “take all necessary steps to facilitate the closure of the Department of Education and return authority over education to the States and local communities while ensuring the effective and uninterrupted delivery of services, programs, and benefits on which Americans rely on.”  The EO does not specifically define those services, programs, and benefits, nor did it mention how the Department’s programs, including federal student aid programs and statutory responsibility, would be handled or possibly moved to another agency.

The EO said that the closure of the Department of Education would “drastically improve program implementation in higher education.”  The EO also noted:  “The Department of Education currently manages a student loan debt portfolio of more than $1.6 trillion.  This means the Federal student aid program is roughly the size of one of the Nation’s largest banks, Wells Fargo.  But although Wells Fargo has more than 200,000 employees, the Department of Education has fewer than 1,500 in its Office of Federal Student Aid.  The Department of Education is not a bank, and it must return bank functions to an entity equipped to serve America’s students.”

A copy of the EO is found at:

https://www.whitehouse.gov/presidential-actions/2025/03/improving-education-outcomes-by-empowering-parents-states-and-communities/.

A Fact Sheet provided by the White House said the Department has spent more than $3 trillion without improving student achievement, and burdened states and educational institutions with regulations and paperwork that keep educators from helping students.

A copy of the Fact Sheet is found at:  https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-empowers-parents-states-and-communities-to-improve-education-outcomes/.

Secretary of Education Linda McMahon released a statement following the release of President Trump’s EO, which would return education to the states:

“Today’s Executive Order is a history-making action by President Trump to free future generations of American students and forge opportunities for their success.  We are sending education back to the states where it so rightly belongs.”  Secretary McMahon went on to say:  “Taxpayers will no longer be burdened with tens of billions of dollars of waste on progressive social experiments and obsolete programs.  K-12 and college students will be relieved of the drudgery caused by administrative burdens – and positioned to achieve success in a future career they love.”

A copy of the Secretary’s statement is found at:

https://www.ed.gov/about/news/press-release/statement-president-trumps-executive-order-return-power-over-education-states-and-local-communities.

Senator Bill Cassidy, MD (R-LA), Chairman of the Senate Health, Education, Labor, and Pensions Committee, praised the EO and pledged to support President Trump’s goals by submitting legislation to close the Department.

A copy of Senator Cassidy’s press release is found at:

https://www.help.senate.gov/rep/newsroom/press/chair-cassidy-applauds-trump-effort-to-return-education-power-to-students-and-families.

On March 20, 2025, Congressman Tim Walberg (R-MI), Chairman of the House Education and the Workforce Committee, released his support of the President’s plan to dismantle the Department and said that “[t]he key to improving education is empowering parents and students and reducing the role of Washington bureaucrats.”

A copy of Congressman Walberg’s statement is found at:

https://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=412264.

On March 20, 2025, Ranking Member of the House Education and the Workforce Committee Bobby Scott (D-VA) released a statement saying:  “Abolishing a federal agency requires an Act of Congress.  President Trump’s executive order to dismantle the Department of Education (ED) and ‘return education to the states’ will be challenged in the Courts.”  Further, “President Trump’s executive order has little regard for the irreparable harm it would cause to students, educators, our future workforce, and parents, who are already struggling.”

A copy of Congressman Scott’s press release is found at:

https://democrats-edworkforce.house.gov/media/press-releases/ranking-member-scotts-statement-on-trump-dismantling-ed.

On March 20, 2025, Ranking Member Scott and Congressman Gerald E. Connolly, Ranking Member of the House Committee on Oversight and Government Reform, issued a press release calling for an immediate halt to the illegal dismantling of ED.

A copy of Congressmen Scott’s and Connolly’s press release is found at:  https://democrats-edworkforce.house.gov/media/press-releases/ranking-members-scott-and-connolly-call-for-an-immediate-halt-to-the-illegal-dismantling-of-ed.

President Trump Signs CR into Law

On March 15, 2025, President Donald Trump signed a six-month Continuing Resolution (CR) into law, which prevented a government shutdown, and finalized funding for FY 2025.  The vote was 54-46, with two Democrats joining all but one Republican in support of the bill.  Minority Leader Chuck Schumer said:  “The CR is a bad bill.  But as bad as the CR is, I believe allowing Donald Trump to take even much more power via a government shutdown is a far worse option.”

Trump Administration Drops Biden Administration’s Appeal of Title IX Injunction

On March 13, 2025, Bloomberg News reported that the Trump Administration dropped the Biden Administration’s appeal of the Title IX injunction.  The 2024 Title IX rule expanded Title IX protections against discrimination and harassment in federally-funded programs to include sexual orientation, gender identity, and sex characteristics.  The rule was blocked by half of the states and was subject to multiple district court injunctions.  The case was argued before the U.S. Court of Appeals for the Fifth Circuit on November 4, 2024.

A Dear Colleague Letter (DCL) was issued on February 4, 2025, which clarified that effective immediately, the Office of Civil Rights (OCR) will enforce Title IX under the provisions of the 2020 Title IX Rule, rather than the 2024 Title IX Rule.  The DCL stated that lawful enforcement of Title IX includes the definition of sexual harassment, the procedural protections owed to complainants and respondents, the provision of supportive measures to complainant, school-level reporting processes, and the interpretation of “sex” to mean the objective, immutable characteristic of being born male or female as outlined in the 2020 Title IX Rule.

The press release, which includes the text of the DCL, is found at:

https://www.ed.gov/about/news/press-release/us-department-of-education-enforce-2020-title-ix-rule-protecting-women.

ED Sends Letter to Stakeholders Regarding the RIF and the Impact on Offices and Programs

On March 14, 2025, James Bergeron, Acting Under Secretary, Department of Education, sent a letter to all stakeholders regarding the impact of the reduction in force (RIF) on students and families.  The letter sought to assure the stakeholders that the continuity of operations for Federal Student Aid (FSA) is both a statutory and critical function of the Department.  Therefore, Acting Under Secretary Bergeron said that no employees working on core functions of the Free Application for Federal Student Aid (FAFSA), or student loan servicing were impacted by the RIF.

The letter went on to say that while certain regional offices and staff that handle matters impacting institutions of higher education, such as program reviews, changes in ownership, and program participation agreements), were impacted by the RIF, these functions are being transferred to other offices and experts.  Employees with the Office of Postsecondary Education (OPE) and the Office of Higher Education Programs (HEP) were not impacted by the RIF, and funds will continue to flow normally.

Acting Under Secretary Bergeron advised the stakeholders that this is the first step in removing bureaucratic excesses from the Department.  Further, decreasing duplicative Department functions “will provide more opportunities for state and institutional leaders to innovate and best serve their students.”

An Electronic Announcement of March 17, 2025 (GENERAL-25-16), which includes the text of the letter, is found at:  https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2025-03-17/acting-under-secretary-james-bergeron-letter-education-stakeholders-march-14-2025.

FSA Issues Electronic Announcement of Updated School Participation Division Contact Information

On March 14, 2025, Federal Student Aid (FSA) issued an Electronic Announcement (GENERAL-25-14) advising institutions of higher education that FSA is now centrally responding to all questions related to the completion of the Application for Approval to Participate in the Federal Student Financial Aid Programs (E-App) and general school eligibility inquiries.  Effective March 14, 2025, institutions should direct correspondence to CaseTeams@ed.gov.  Support continues to be available at 1-800-848-0978.

A copy of the Electronic Announcement is found at:  https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2025-03-14/notice-updated-school-participation-division-contact-information.

ED Reinstates 65 Fired Probationary Employees

The Department of Education announced that 65 probationary workers will now return to the Department on administrative leave after U.S. District Judge James Bredar in Maryland ruled that the mass firings of probationary employees, who do not have the same protections as other civil service employees, were likely illegal.  The announcement about the 65 employees was made as part of the Department’s compliance report filed in U.S. District Court in Maryland on March 18, 2025, in response to the ruling.

ED’s OCR Opens Investigations into 52 Universities for Allegations of Violating Title VI of the Civil Rights Acts by Limiting Eligibility for Programs and Scholarships on the Basis of Race

On March 14, 2025, the Department of Education’s (ED) Office of Civil Rights (OCR) opened investigations into 45 universities under Title VI of the Civil Rights Act because of allegations that these institutions have partnered with “The Ph.D. Project,” an organization that purports to provide doctoral students with insights into obtaining a Ph.D. and networking opportunities, but limits eligibility based on the race of the participants.

OCR is also investigating six universities for allegedly awarding impermissible race-based scholarships and one university for allegedly administering a program that segregates students on the basis of race.

Secretary of Education Linda McMahon said:  “The Department is working to reorient civil rights enforcement to ensure all students are protected from illegal discrimination.”

A copy of the press release is found at:  https://www.ed.gov/about/news/press-release/office-civil-rights-initiates-title-vi-investigations-institutions-of-higher-education-0.

FSA Opens Revised Income-Driven Repayment Plan and Loan Consolidation Application for Borrowers

On March 26, 2025, the Office of Federal Student Aid (FSA) reopened the online income-driven repayment (IDR) plan and loan consolidation applications for borrowers.  The application was temporarily paused to comply with the 8th Circuit Court of Appeals injunction issued last month, which directed the Department to cease implementation of the Biden Administration’s Saving on a Valuable Education (SAVE) Plan and parts of other IDR plans.  Because the online application included provisions subject to the injunction, the Department needed to revise the form, making it unavailable to borrowers for a short period of time.

Acting Under Secretary James Bergeron said:  “A federal appeals court struck down another one of the Biden Administration’s illegal efforts to transfer student loan debt to taxpayers.  In response, the Trump Administration substantially revised the income-driven repayment plan application to conform with the ruling.”

A copy of the press release is found at:  https://www.ed.gov/about/news/press-release/us-department-of-education-opens-revised-income-driven-repayment-plan-and-loan-consolidation-applications-borrowers.

AFT Sues Department of Education for Blocking Access to Repayment Plans

On March 18, 2025, the American Federation of Teachers (AFT) sued the Department of Education over alleging that the Department violated Federal law by denying borrowers’ access to income-driven repayment (IDR) plans and blocking progress toward Public Service Loan Forgiveness (PSLF).  The AFT filed the lawsuit in U. S. District Court in the District of Columbia, arguing that a significant amount of their members are affected because they have student debt and work in public service, and the IDR plans prevent borrowers from going into default.  The lawsuit argues that the decision impacts borrowers’ ability to receive PSLF since they must be enrolled in an IDR plan and make 120 qualifying monthly payments in order to receive the loan forgiveness.

The lawsuit was filed after the Department removed access to applications for IDR plans after the 8th Circuit Court of Appeals ruled that the Biden Administration’s Saving on a Valuable Education (SAVE) plan was not legal.  [On March 26, 2025, the Department announced that it has reopened the online income-driven repayment (IDR) plan and loan consolidation applications for borrowers.  See above article.]

ED Announces More than 8 Million FAFSA Forms Processed and Additional FAFSA Form Improvements

On March 17, 2025, the Department of Education (ED) announced that more than 8 million 2025-2026 FAFSA forms have been successfully submitted and processed, almost a 50 percent increase on the number of FAFSA forms submitted at this time last year.  The Department also announced improvements in the FAFSA form to upgrade the user experience for students, parents, colleges, and universities, while cracking down on fraudulent activity and planning for the successful release of the 2026-2027 FAFSA form.

Acting Under Secretary James Bergeron said:  “Under President Trump’s leadership, the FAFSA form is a priority and we are correcting course by implementing industry best practices, which has resulted in providing universities with accurate data, ensuring American students have access to the best tools and resources, all while cracking down on fraud.”  The Department has resumed flagging potentially fraudulent activity on the FAFSA form, including flagging applicants suspected of assuming another individual’s identity.

A copy of the press release is found at: https://www.ed.gov/about/news/press-release/us-department-of-education-announces-more-8-million-fafsar-forms-complete-and-additional-form-improvements.

VA Reminds School Officials of Requirement to Make Available to Each Eligible Person or Veteran a Copy of Their Official Transcript in a Digital Format

On April 3, 2025, the Veterans Benefits Administration (VA) of the Department of Veterans Affairs sent a Dear School Official letter advising schools of the importance of Section 207 of the Dole Act, 21st Century Veterans Healthcare and Benefits Improvement Act of 2025 (P.L. 118-2010).  The letter said:  “Section 207, Requirement that educational institutions approved for purposes of Department of Veterans Affairs educational assistance programs provide digital official transcripts, requires institutions of higher learning (IHLs) to make ‘available to each eligible person or veteran a copy of the person or veteran’s official transcript in a digital format’”.

The amendments made by this section take effect on August 1, 2025, and will apply to each quarter, semester, or term, as applicable, commencing on or after the effective date.

A copy of the letter to School Officials is found at:

https://content.govdelivery.com/accounts/USVAVBA/bulletins/3d9f73e.

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