Washington Update

APLU Memo on Accreditation Negotiated Rulemaking Committee  
The U.S. Department of Education’s Accreditation, Innovation, and Modernization (AIM) negotiated rulemaking committee convened for a second session last week and reached consensus on a package of proposed regulations that will fundamentally reshape the Department’s expectations for accreditors, and thus, also expectations of accreditors for institutions and programs. APLU developed a memo that outlines the committee’s deliberations and provides high-level summaries of select key issues, including:  

• Viewpoint diversity 
• Board composition/conflict of interest 
• Research integrity 
• Student outcomes 
• Academic freedom and the First Amendment 
• Transfer of credit 

As a result of the consensus agreement, the Department is expected to release a Notice of Proposed Rulemaking (NPRM) in July that is aligned with the committee’s outcome, with final regulations published by November in order to go into effect July 2027.

Appropriations Update 
This month, The House Appropriations Committee considered the Fiscal Year2027 Interior and Environment bill in subcommittee and the Energy and Water and Commerce, Justice, Science bills in full committee. APLU’s appropriations priorities chart has been updated to reflect the latest action in the House for the association’s priority accounts.

Interior 
The House Interior, and Environment, and Related Agencies bill includes:   

• $527.9 million for the Environmental Protection Agency Science and Technology, which is $216.3 million (29 percent) below FY26 enacted levels. 
• $135 million for the National Endowment for the Humanities (NEH), which is $72 million (35 percent) below FY26 enacted levels. 

Under NEH, the bill text includes $72 million for federal/state partnerships, which is $13 million below FY26 enacted levels. As a result, federal/state partnerships, while also cut, would represent an increased share of NEH funding.  Additional details will be made available ahead of full committee markup on June 3^rd. 

Energy and Water 
The House Energy and Water Development and Related Agencies bill includes:   

•  $8.5billion for the Department of Energy’s Office of Science, which is $125 million (1.5 percent) above FY26 enacted levels.  
• $300 million for the Advanced Research Projects Agency–Energy (ARPA–E), which is $50 million (14 percent) below FY26 enacted levels. 

The bill extends language blocking modification to indirect cost rates, holding negotiated rates at FY24 levels. The report language contains several prescriptive directives regarding agency communication to Congress on reprogramming, transfer, and termination of funds.  

Commerce, Justice, and Science 
The House Commerce, Justice, Science, and Related Agencies bill includes:  

• $7 billion for NSF, a $1.75 billion cut (20 percent) from FY26; 
• $6 billion for NASA Science Mission Directorate, a $1.25 billion cut (17.2 percent) from FY26; 
• $850 million for NASA Aeronautics, an $85 million cut (9.1 percent) from FY26; 
• $913 million for NASA Space Technology, a $7 million cut (0.8 percent) from FY26; 
• $580 million for NOAA’s Oceanic and Atmospheric Research, $9 million cut (1.5 percent) from FY26 and; 
• Flat funding from FY26 for NASA’s Space Grant Program, NOAA’s Sea Grant and Aquaculture programs, NIST’s Manufacturing Extension Partnership, and EDA’s Build to Scale. 

Go Deeper: The bill extends language blocking modification to indirect cost rates, holding negotiated rates at FY24 levels. In report language, the Committee supports the Administration’s efforts to increase American competitiveness by refocusing STEM investments into programs that serve all Americans. ”The report takes a stronger approach on the Committee’s oversight responsibilities, emphasizing requirements for agencies to report unobligated balances on a quarterly basis, submit detailed spend plans, and respond to congressional inquiries in a timely manner.  

House Releases FY27 National Defense Authorization Act Text 
The House Armed Services Committee released its version of the FY27 National Defense Authorization Act (NDAA). The bill authorizes $1.15 trillion in base budget defense spending, consistent with the president’s budget request. A full committee markup of the bill is scheduled for June 4. Text of the bill is largely void of research security measures, as those provisions will likely be introduced as amendments during markup. APLU is currently tracking several bills pertaining to research security, which may be submitted as amendments to the NDAA.  

APLU Comments on Department of Labor’s NPRM to Increase Prevailing Wages for Employment-based Visas 
APLU commented on the U.S. Department of Labor’s (DOL) notice of proposed rulemaking (NPRM), Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States. The proposed rule seeks to increase the prevailing wage floors for employment-based visas, including H-1B, E-3, H-1B1, and PERM. In addition, APLU also signed on to community comments submitted by the College and University Professional Association for Human Resources (CUPA-HR). 
 
APLU’s comments argue that the rule will uniquely and adversely impact public universities and their ability to fulfill core institutional missions in research, teaching, and healthcare. Among the arguments: 

• Public universities do not utilize foreign national hiring to undercut U.S. workers; 
• Public universities face unique compensation contraints; 
• Increasing wages for a subset of employees would likely trigger broader compensation adjustments; 
• The NPRM also fails to account for the role of H-1B employment in retaining U.S.- educated international graduates. 

The association requests that DOL withdraw the proposed rule, or at a minimum, exempt institutions of higher education, or delay its implementation. APLU thanks member institutions who helped strengthen the association’s submission by providing guidance on arguments, technical feedback on impacts, and an understanding of how compensation practices differ across the states. 

Federal Court Orders Reinstatement of 1,400 Cancelled NEH Grants 
In a 143-page ruling, the U.S. District Court for the Southern District of New York found the en masse termination of over 1,400 National Endowment of the Humanities grants without individualized consideration was unconstitutional. The ruling was in favor of the plaintiffs, the American Council of Learned Societies, the American Historical Association, the Modern Language Association of America and The Authors Guild. 
 
Per the court order, the defendants must rescind the termination notices and shall not “reallocate, obligate, or otherwise dispose of funds associated with those awards.” The total amount of cancelled grants exceeds $100 million. Grantees received a message electronic grants management system, eGMS Reach, on May 11 that acknowledges the court ruling and announces that “NEH will update you with further information as it becomes available”. 
 
DHS, ICE Scrutinize and Investigate Optional Practical Training Program 
The Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE) announced they are investigating alleged fraud within the Optional Practical Training (OPT) program. The agency identified more than 10,000 international students connected to what Acting ICE Director Todd Lyons described as “highly suspect employers.” 
 
During a May 12 press conference, Lyons said investigators found “empty offices, locked buildings, and companies that existed solely to maintain immigration status,” adding that the administration is focused on “restoring integrity” to the OPT program.  

USCIS Memo to Require Home Country Processing for Adjustment of Status 
On Friday, May 22, U.S. Citizenship and Immigration Services (USCIS) announced a reinterpretation of the Immigration and Nationality Act (INA). The reinterpretation would require most individuals seeking adjustment of status to apply for permanent residency from their home country, rather than from within the United States, unless they can demonstrate “extraordinary circumstances.” Adjustment of status is the process by which an individual lawfully present in the U.S. applies for a green card without leaving the country. 
 
“We’re returning to the original intent of the law to ensure aliens navigate our nation’s immigration system properly,” said a USCIS spokesperson in a press release. “This policy allows our immigration system to function as the law intended instead of incentivizing loopholes. When aliens apply from their home country, it reduces the need to find and remove those who decide to slip into the shadows and remain in the U.S. illegally after being denied residency.” 
 
The agency’s press release also specifically referenced students, stating: “Nonimmigrants, like students, temporary workers, or people on tourist visas, come to the U.S. for a short time and for a specific purpose. Our system is designed for them to leave when their visit is over. Their visit should not function as the first step in the Green Card process.” 
 
A USCIS spokesperson later clarified for SEMAFOR, “People who present applications that provide an economic benefit or otherwise are in the national interest will likely be able to continue on their current path,” whereas others “may be asked to apply abroad depending on individualized circumstances.” 

NASA Announces Major Reoganization 
On Friday, NASA Administrator Jared Isaacman announced plans to consolidate the six NASA Mission Directorates into four. The reorganization combines the mission directorates for exploration systems development and space operations into the Human Spaceflight Mission Directorate. It also combines the aeronautics research mission and space technology mission directorates into the Research and Technology Mission Directorate.  

Between the Lines: “There will be no reduction in force, no program cancellations, no closures, but we will achieve cost savings through more efficient execution and taking an active role in delivering the outcomes the world has been waiting for from NASA,” Isaacman stated in the announcement. The Science Mission Directorate will remain unchanged.  

Under the proposed changes, each NASA field center will now receive a basic level of funding for its operations. Additionally, NASA will open a competition through the Request for Proposals mechanism for other universities to operate the Jet Propulsion Laboratory in California.  

ED Launches FY26 Title III SIP Competition, Merging MSI Programs 
The U.S. Department of Education and U.S Department of Labor (DOL) released the FY26 Title III Strengthening Institutions Program (SIP) competition. ED estimates roughly 600 awards, and increase from 107 in FY23, totally more than $365 million.  The program supports institutions serving high percentages of Title IV recipients through activities such as student support services, infrastructure improvements, enrollment management, and institutional capacity-building. Updated competitive priorities include workforce readiness, artificial intelligence in education, Workforce Pell-aligned short-term programs, and rural institutions. Applications are due June 23. 

The competition also reflects ED’s decision to consolidate funding from several Title III and Title V programs into SIP for a second consecutive year, characterized as a “historic, one-time investment.” As a result, programs including Developing Hispanic-Serving Institutions (DHSI), Asian American and Native American Pacific Islander-Serving Institutions (AANAPISI), and Minority Science and Engineering Improvement Program (MSEIP) will not hold separate FY26 competitions as Minority Serving Institution (MSI) funding is reprogrammed into a broader SIP competition.  

A press release addresses the Department’s view on the reprogramming, describing the original programs as “…unlawful Minority-Serving Institutions Grant programs, which conferred government benefits exclusively to institutions based on racial or ethnic criteria. This announcement marks the second year that ED has reinvested dollars to support high-quality education that bolsters student outcomes as opposed to allocating federal resources to unconstitutional programs.” 

Student Aid Alliance Sends Letter to ED on FY27 President’s Budget Request 
The Student Aid Alliance, of which APLU is a Steering Committee member, sent a letter to the U.S. Department of Education responding to the administration’s FY27 budget request. The letter thanks the Department for proposing $10.5 billion to help address the projected $17 billion Pell Grant shortfall while raising concerns over proposed cuts and eliminations to other federal student aid programs. 
 
The coalition urged the administration and Congress to fully fund the Pell Grant program without reducing award levels or eligibility and warned that cuts to programs such as Federal Work-Study, Supplemental Educational Opportunity Grants (SEOG), TRIO, GEAR UP, and Graduate Assistance in Areas of National Need (GAANN) would harm college access and student success efforts. The letter emphasized that these programs play a critical role in supporting low-income, first-generation, and graduate students and called for sustained bipartisan investment in federal student aid. 
 
APLU Endorses Build to Scale Reauthorization 
On May 15, Representatives Stevens (D-MI) and Baird (R-IN) introduced H.R. 8866, the Build to Scale Reauthorization of 2026, which APLU endorsed. Originally authorized under the America COMPETES Act of 2010, Build to Scale is a competitive grant program that invests in universities, startups, nonprofits, and entrepreneurship-focused organizations to strengthen regional innovation capacity and connect high potential ideas with the capital, infrastructure, and support needed to scale. The reauthorization:  

• Extends the program (which expired in 2024) through 2030; 
• Strengthens coordination with NSF and the Regional Tech Hubs;  
• Requires the program to spend unobligated funds and; 
• Expands the scope of outreach. 

APLU Joins Letter Urging Obligation of Unspent FY25 Institute of Education Sciences Funds 
APLU joined 96 other organizations in sending a joint letter to Education Secretary Linda McMahon and White House Office of Management and Budget Director Russell Vought urging immediate action to ensure that remaining FY25 funding for the Institute of Education Sciences (IES) are fully apportioned and obligated before they expire on September 30, 2026. 
 
The groups warned that approximately $289 million, about 36 percent of FY25 IES funding, has not yet been apportioned and could lapse without swift action. The letter emphasized IES’s role in supporting education research, data collection, evaluations, and technical assistance used by states, school districts, and educators nationwide.