Washington Update

Stopgap Funding Measure with Short-Term Block of Uniform Guidance Heads to President Trump for Signature 
Ahead of the end of the federal fiscal year on September 30, the House yesterday overwhelmingly passed the Senate version of a continuing resolution that extends discretionary appropriations through December 11. The stopgap measure punts decisions on Fiscal Year 2027 appropriations until after the midterm elections.  

As a direct result of the collective advocacy by the university community and many other stakeholders, the continuing resolution contains a provision that blocks the implementation of the proposed rule on Uniform Guidance through December 11. Senate Appropriations Committee Chair Susan Collins (R-ME), who helped craft the measure, noted that the Uniform Guidance provision “would politicize the grant process.”  

 The stopgap measure already passed the Senate and is expected to be signed into law by President Trump. APLU thanks the membership for advocating for Uniform Guidance blocking language and is working with the Council on Governmental Affairs to express appreciation to Congress following passage.  

APLU Comments on NSF Guidance on Financial Assistance  
In June, the National Science Foundation (NSF) released a request for information on “National Science Foundation Proposal/Award Information-NSF Guidance on Financial Assistance.” This new Guidance on Financial Assistance would replace the current NSF Proposal & Award Policies & Procedures Guide (PAPPG).  

The PAPPG has traditionally been a critical guide for researchers and higher education institutions to structure grants management, compliance, and research operations. NSF’s stated goals for restructuring the PAPPG guide to the Guidance on Financial Assistance are “to incorporate plain language, clarify language, separate policies from procedures, remove policies no longer relevant, incorporate mandated statutory, regulatory, Executive Order, and policy-related changes.” In its request, NSF specifically states it is aligning NSF policy with OMB’s proposed revisions to Uniform Guidance, 2 CFR Part 200, published in the Federal Register on May 29, 2026.   

Go Deeper: APLU submitted its comment letter on August 23 to reiterate concerns about the White House Office of Management and Budget’s Uniform Guidance proposal. Additionally, the letter urges NSF not to finalize the Guidance on Financial Assistance until the Uniform Guidance has been finalized. APLU’s response also suggests several other areas where NSF should consider providing greater details or use statutory definitions, including research security, indirect costs, intellectual property, data sharing, and publications.    

NSF plans to review the comments received and reissue the Guidance on Financial Assistance for a second 30-day comment period, with the goal of finalizing the Guidance by mid-FY27. 

U.S. Department of Education Issues Notice of Proposed Rulemaking on Grant Administration 
The U.S. Department of Education (ED) issued a Notice of Proposed Rulemaking (NPRM) on August 24 amending the Education Department General Administrative Regulations (EDGAR) which governs how discretionary and formula grants are issued.  

Among the proposed changes of substantial impact and interest is a provision to give a competitive advantage to grant applicants that agree to lower their indirect cost rates. The Department estimates that this would shift roughly $450 million from indirect to direct costs over 10 years. The Department would also stop publishing grant invitations in the Federal Register and instead only publish them on grants.gov.  

The Bottom Line: The Education Department’s proposed changes will allow the agency to terminate a grant if the awards are found to be inconsistent with program goals or agency priorities. The proposed changes also aim to ensure grantees’ practices in relation to hiring, promotion, admissions, and compensation are based on “merit and high standards,” without consideration of race, color, religion, sex, or national origin. The changes will affect how a grant can be terminated, the conditions that need to be met during the grant, and the hiring process and people who can work on a grant.  

Similar to the NSF proposal, the Department of Education is advancing elements of the OMB Uniform Guidance before it is finalized. APLU will submit comments, which are due by September 23.  

NIH Request for Information on Measuring and Rewarding Scientific Impact 
The National Institutes of Health (NIH) released a request for information in June on how to measure, recognize, and incentivize biomedical science, seeking to moving beyond traditional metrics such as publications and citations. NIH welcomed comments on rigor and reproducibility, data sharing, training, collaboration, translation, foundational research, and public impact.  

APLU submitted its response earlier this month, urging NIH to work collaboratively across research disciplines, institutions, and other federal agencies as it looks to make changes to long-term incentive structures. NIH may engage in the rulemaking process around these issues in the future. 

Multistate Coalition Files Amicus Brief in Duration of Status Case 
A multistate coalition of attorneys general, co-led by California Attorney General Rob Bonta and New York Attorney General Letitia James, filed an amicus brief in the Presidents’ Alliance, et al., v. DHS case challenging the final rule on Duration of Status. The regulation replaces “duration of status” admission for J-1 and F-1 visa holders with a fixed period of admission, up to the length of the program of study, not to exceed four years. The rule also imposes certain restrictions on F-1 visa holders’ ability to change programs, among other provisions. A detailed explanation of the final rule is available on the U.S. Department of Homeland Security’s webpage. 

The attorneys general argue that the rule will: 

• Discourage prospective F and J visa holders from participating in U.S. academic programs 
• Limit the range of academic programs and resources that the amici states can offer 
• Cause economic harm to the amici states 
• Harm amici states beyond direct harms to institutions of higher education due to the loss of international students and academic visitors 

They were joined by the attorneys general of Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Mexico, Nevada, North Carolina, Oregon, Vermont, Virginia, and Wisconsin, and the District of Columbia. 

White House office of Information and Regulatory Affairs Clears DHS Regulation to Eliminate the Discretionary 60-day Grace Period   
On August 27, the White House Office of Information and Regulatory Affairs (OIRA) completed its review of a Department of Homeland Security (DHS) regulation to eliminate the discretionary 60-day grace period for E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 visa holders to depart the country before their period of stay expires.  

The grace period was established by regulation in 2016 and allows certain visa holders and their dependents to maintain status after the cessation of their employment for 60-days, which provides an opportunity for visa holders to obtain other employment. APLU is waiting for the pre-publication copy of the proposed rule to be released in the Federal Register with more details. 

U.S. Department of Homeland Security Issues Notice of Proposed Rulemaking on 103K 1-H1B Fee for Cap-Subject Petitions 
The U.S. Department of Homeland Security (DHS) issued a Notice of Proposed Rulemaking (NPRM), “Fee for Certain H-1B Petitions,” on August 25 with a 30-day comment period. The NPRM proposes to establish a $103,265 fee, payable at the time of filing for any cap-subject petitions. Cap-subject refers to visas that are subject to the annual H-1B lottery. Institutions of higher education are cap-exempt, as are related affiliated nonprofit entities, nonprofit research organizations, and government research organizations. 

The fee is intended to serve as a revenue mechanism for DHS, the U.S. Department of Justice, the U.S. Department of State, and the U.S. Department of Labor. As the fee is limited to entities subject to the H-1B cap, APLU member institutions would not be directly impacted as employers, though presumably there would be a cascading impact to international students and U.S. competitiveness.  

The NPRM follows a Presidential Proclamation issued in September 2025, which imposed a $100,000 fee for all H-1B petitions, regardless of whether they were subject to the cap-exemption. The 2025 Presidential Proclamation was vacated by the U.S. District Court for the District of Massachusetts, as the court sided with the plaintiffs who argued the fee amounted to an unconstitutional tax that exceeded DHS’ authority. The court also ruled the fee was arbitrary and capricious and violated the Administrative Procedure Act. In late July, the First Circuit upheld the District Court order upon appeal, though the administration is “considering next steps.” 

DHS provided its rationale on its decision to assess the fee on cap-subject employers. “After considering the resources of the different communities and populations that submit immigration benefit requests to U.S. Citizenship and Immigration Services (USCIS), DHS has decided to propose that the costs be recovered by adding a fee to H-1B cap-subject petitions. DHS considered other options but determined that shifting these costs to petitioners for H-1B cap-subject petitions was appropriate considering that they are requests that are generally submitted by petitioners who have more ability to pay, as opposed to shifting those costs to all other fee payers.” 

U.S. Department of Homeland Security Submits Regs on OPT Fees and H-1B Cap Exemption Eligibility to OIRA 
In addition to the Notice of Proposed Rulemaking on H-1B visas, the U.S. Department of Homeland Security submitted two new regulations to the White House Office of Information and Regulatory Affairs for review ahead of publication in the Federal Register.  

The first proposed rule on Optional Practical Training (OPT) Fees was submitted by DHS/U.S. Immigration and Customs Enforcement (ICE) and received by the Office of Information and Regulatory Affairs (OIRA) on August 20, 2026. The proposed rule was not listed in the Unified Agenda, but is expected to align with The Wall Street Journal’s recent reporting on a rumored $100,000 fee for those participating in OPT. APLU previously shared that a separate regulation was included in the administration’s Unified Regulatory Agenda with a February 2027 publication timeline and the following abstract:  
 
The proposed rule will better align practical training to the goals and objectives of the program while providing more clarity to the public. The proposed rule will amend existing regulations to address fraud and national security concerns, protect U.S. workers from being displaced by foreign nationals, and enhance the Student and Exchange Visitor Program’s capacity to oversee the program. 

The second regulation, Reforming the H-1B Nonimmigrant Visa Classification Program, was submitted by DHS and received by OIRA on August 24, 2026, with the following abstract: 
 
DHS proposes to reform the H-1B program by revising eligibility for cap exemptions, providing greater scrutiny for employers that have violated program requirements, and increasing oversight over third party placements, among other provisions. These changes are intended to improve the integrity of the H-1B nonimmigrant program and better protect U.S. workers’ wages and working conditions. 

Additional Resource: APLU developed a list of the elements of the administration’s Unified Regulatory Agenda that are likely to be of greatest interest to its members.