Washington Update

U.S. Department of Education Announces New Interagency Agreements 
On November 18, the U.S. Department of Education (ED) announced six interagency agreements (IAAs) with four different federal agencies, provoking mounting congressional and legal opposition. The agreements were signed with the Departments of Labor, Interior, Health and Human Services, and State to “streamline federal education activities on the legally required programs, reduce administrative burdens, and refocus programs and activities to better serve students and grantees.”  

Capitol Hill  
On December 4th, a group of 36 Senate Democrats, including relevant minority committee leaders, sent a letter to Education Secretary Linda McMahon on the interagency agreements. Per the press release, the group alleges they “illegally outsource core functions that students and their families rely on —and calling on her to reverse these latest steps to dismantle the Department of Education.”   

Judicial Action
The American Federation of Teachers, AFSCME, AAUP, SEIU, The Arc of The United States, and two public school districts in the U.S. District Court for the District of Massachusetts amended their complaint in a previously filed lawsuit to seek injunctive relief to reverse the IAAs. 

Additionally, a new legal analysis by EducationCounsel and Sligo Law Group examined the Department of Education’s legal authority to transfer the agency’s functions, concluding, “…there are significant legal issues that likely make these IAAs unlawful. They appear to violate on their face applicable appropriations laws enacted by Congress that prohibit USED from transferring funds in this way. And they likely exceed the statutory authorities cited by the Administration to justify these kinds of wholesale transfers designed to dismantle USED without congressional action.” 

Go Deeper: Under the interagency agreements, the U.S. Department of Labor will administer most grant programs previously under the Office of Postsecondary Education. The U.S. Department of Health and Human Services will administer the Child Care Access Means Parents in School (CCAMPIS) program. Additionally, the U.S. Department of State will administer the International Education and Foreign Language Studies program, which includes Title VI international education programs and Fulbright-Hays.  

FY26 National Defense Authorization Act (NDAA) Update 
On Sunday evening, lawmakers released compromise FY26 NDAA text. Lawmakers agreed to authorize Pentagon activities at $901 billion, $8 billion above the President’s budget request. The House plans to vote on the bill this week with the Senate following next week.  

APLU and member institutions were successful in advocacy to keep overly burdensome and duplicative research security provisions, including the SAFE Research Act, out of the final agreement. APLU and AAU previously raised concerns about these provisions in a joint FY26 NDAA conference letter and opposition letter.  

USCIS Updates Policy on Asylum Applications and Benefit Applications for Aliens from High-Risk Countries 
United States Citizenship and Immigration Services (USCIS) posted a policy memo placing a hold on all asylum applications and pending benefit requests for applicants from countries listed under the June presidential proclamation, “Restricting Entry of Foreign Nationals to Protect the United States from Foreign Terrorists and Other National Security and Public Safety Threats.” 
 
The memo also requires a rereview of all approved benefit requests for individuals from those countries who entered after January 20, 2021. The memo likely applies to all benefit types, including F-1, H-1Bs, O-1s, and J-1s. This rereview will not only impact students, faculty, and staff on APLU member campuses, but will also divert resources from current adjudications and likely result in additional processing backlogs. 

U.S. Government Appeals District Court Decision Vacating DOD F&A Policy 
On December 9, the U.S. government filed an appeal of the U.S. District Court for the District of Massachusetts’ decision that vacated the Department of Defense policy capping indirect costs at 15%. The government’s appeal brief will likely be filed within 40 days.   

More information on the district court’s decision vacating the DOD policy and continued updates on the status of the appeal with the 1st U.S. Circuit Court of Appeals is available on the APLU website.  

U.S. Department of Education Announces Foreign Funding Reporting Portal 
On December 1, ED announced a new foreign funding reporting portal for colleges and universities. The new portal will go live on January 2, 2026, and will be located at www.ForeignFundingHigherEd.gov (note: the link is not yet active).  
 
Pursuant to Section 117 of the Higher Education Act, institutions receiving foreign gifts and contracts worth $250,000 or more must annually disclose such funding to ED. The announcement follows an April Executive Order, “Transparency Regarding Foreign Influence at American Universities” on ending “the secrecy surrounding foreign funds in American educational institutions and safeguard America’s students and research from foreign exploitation.” In an accompanying electronic announcement, ED announced a training webinar on December 15 at 2:30pm ET that is open for registration.   

U.S Department of Education Solicits Feedback on Updates to the Accreditation Handbook 
On December 10, ED issued a Request for Information (RFI) to solicit feedback from the public on updating the Accreditation Handbook. Per the press release, by updating the Handbook, “the Department continues to advance its goal of significantly reforming the accreditation system through reduction of unduly burdensome and bureaucratic requirements and increasing transparency and efficiency.” 

The Higher Education Act of 1965 directs ED to determine if an accrediting agency is a reliable authority as to the quality of education or training for the purposes of awarding federal student aid. The Accreditation Handbook provides guidance to accreditors on how to comply with the U.S. Secretary of Education’s criteria for recognition. The RFI establishes that ED intends to revise the handbook to “comply with updated guidance and policy changes while incorporating feedback from the public and to align with Administration priorities.” 

APLU staff are reviewing the RFI and are weighing a response in partnership with the Councils on Academic Affairs, Governmental Affairs, and Student Affairs.  

AHEAD Negotiated Rulemaking Begins 
The Department of Education began its Accountability in Higher Education through Demand-Driven Workforce Pell (AHEAD) negotiated rulemaking committee on December 8. The committee will continue its discussion on proposed regulations implementing the Pell Grant provisions of the One Big Beautiful Bill Act throughout the week. Under the law, short term programs that meet certain outcomes measures and state workforce needs are eligible for the new Workforce Pell program. Separately, the law also prohibits students whose full cost of attendance is covered by non-federal aid from receiving Pell Grants. During its upcoming January session, the committee will discuss regulations for the accountability provisions of the law.  

ED posted the committee member list, protocols, agenda, and drafts for discussion on its negotiated rulemaking webpage. Additional discussion items and proposals from negotiators will be posted throughout the week. 

APLU Joins Amicus Brief on NIH Grant Terminations 
APLU joined the higher education community in submitting an amicus brief to the First Circuit Court of Appeals in cases American Public Health Association, et al. v. National Institutes of Health, et al. and Commonwealth of Massachusetts, et al. v. Robert F. Kennedy, Jr., et al. 

The Bottom Line: The cases concern the National Institutes of Health (NIH)’s abrupt termination of grants deemed inconsistent with the administration’s priorities. The amici describe how the en masse grant terminations threaten to upend the longstanding collaborative relationship between the federal government and research institutions, urging the court to uphold a lower court ruling to reinstate hundreds of grants. 

Additionally, the amici argue that the Court of Federal Claims is not the appropriate forum for relief. 

USGS Coalition Letter on FY26 Appropriations 
The U.S. Geological Survey (USGS) Coalition, of which APLU is a member, sent a letter urging House and Senate appropriations leadership to support the highest possible appropriations level for USGS in FY26. The letter specifically highlights the value of the Cooperative Research Units in training the next generation of natural resource professionals, creating local jobs, and ensuring science is translated into practical, locally relevant solutions for conservation and land management.   

Response to House Veterans’ Affairs Subcommittee on Economic Opportunity Letter on Chapter 35 Benefits 
Earlier this month, APLU provided a written response to the House Veterans Affairs Subcommittee on Economic Opportunity letter to APLU President Cruzado on Chapter 35 benefit delays. The delays of payments from the Department of Veterans Affairs have impacted beneficiaries of the Chapter 35 Survivors’ and Dependents’ Education Assistance Program.  

Chapter 35 benefits are unique in that they are disbursed directly to students, not to institutions, and are often used for non-institutional educational costs, like rent and textbooks. As a result, many institutions may be unaware that these beneficiaries are not receiving their aid. In mid-November, a spokesperson for the VA noted the agency anticipates fully resolving the issue by late November or early December. APLU understands some problems persist.  

For additional background information, please see this issue brief from the American Council on Education. 

Department of Education Debuts Earnings Indicator on FAFSA 
On December 10, the ED unveiled a new earnings indicator for students and families on the Free Application for Federal Student Aid (FAFSA). The data is intended to alert aid applicants of institutions in which graduates, on average, earn less than a high school completer. When completing the form, students identify institutions to directly receive their application. Upon completion, the earnings indicator creates an alert if one of the selected institutions’ average earnings are below that of the average high school graduate. Per ED’s data, no APLU institutions generate this alert.