Final PSLF Rule Sparks Nationwide Legal Challenges
Nov 17, 2025, 15:11
by
AACOM Government Relations
- On October 31, 2025, the Trump administration issued its final rule detailing changes to the Public Service Loan Forgiveness (PSLF) Program which granted ED expanded power to ban organizations from the program if their work is deemed to have a “substantial illegal purpose.”
- In response, the National Council of Nonprofits and Commonwealth of Massachusetts, along with several cities, labor unions and nonprofits across 22 states, filed two lawsuits against ED. Both lawsuits claim that the new rule violates both the First Amendment and the Administrative Procedure Act.
- The final rule is set to go into effect on July 1, 2026. For more information, read ED’s fact sheet and a National Association of Student Financial Aid Administrators analysis of the final rule.
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Senate HELP Committee Holds Hearing on Reforming Financial Transparency in Higher Ed
Nov 17, 2025, 15:20
by
AACOM Government Relations
- On November 6, 2025, the Senate Health, Education, Labor and Pensions Committee held a hearing on Reforming Financial Transparency in Higher Education. The Committee heard testimony from five higher education experts on how Congress can address the affordability concerns surrounding higher ed programs.
- The hearing included discussion of multiple bipartisan pieces of legislation designed to improve college cost transparency, such as the College Transparency Act, S. 2511, the Net Price Calculator Improvement Act, S. 1557 and the Understanding the True Cost of College Act, S. 1558. Committee members and experts agreed that efforts to make student financial aid more accessible and transparent are critical in reforming higher education.
- Much of the discussion also highlighted concerns with implementation of the higher education provisions in the OBBBA passed earlier this year, and the strain placed on the healthcare workforce pipeline by new borrowing limits.
- Read AACOM’s summary of the hearing for more information.
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All 50 States Apply for CMS Rural Health Transformation Program
Nov 17, 2025, 15:21
by
AACOM Government Relations
- On November 5, 2025, the Centers for Medicare and Medicaid Services (CMS) announced that all 50 states submitted applications for the new $50 billion Rural Health Transformation (RHT) Program, created by the OBBBA to strengthen rural healthcare nationwide. The application window ran from September 15 to November 5.
- The RHT Program aims to improve access and quality in rural communities by supporting innovative care models, stabilizing rural providers and strengthening the rural health workforce.
- CMS will now review applications in two stages: an eligibility review determining half of the funding, followed by a merit review for the remaining awards. Approved states will be announced by December 31, 2025, with funding beginning in FY26.
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ED Launches Applications for FIPSE-SP FY25 Awards
Nov 17, 2025, 15:23
by
AACOM Government Relations
- On November 12, 2025, ED published a notice inviting applications, including from institutions of higher education, for new awards for FY25 within the Fund for the Improvement of Postsecondary Education Special Projects (FIPSE-SP).
- The FIPSE Special Projects Program will award $167 million in discretionary grants to support innovative projects aligned with areas of national need: advancing AI in higher education ($50M); promoting civil discourse on campus ($60M); promoting accreditation reform ($7M); and capacity-building for short-term programs ($50M).
- No cost share is required but indirect costs are capped at eight percent.
- Applications are due December 3, 2025, and ED intends to make awards by December 31, 2025. View AACOM’s summary of the FIPSE-SP awards.
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Only Four-Year Institutions Required to Report Disaggregated Data to ED
Nov 17, 2025, 15:24
by
AACOM Government Relations
- In August 2025, the Trump administration issued a directive ordering colleges to submit six years’ worth of application and admissions data disaggregated by student race and sex as part of the 2025-26 Integrated Postsecondary Education Data System (IPEDS) reporting cycle.
- A notice issued on Wednesday, November 12, 2025, clarified that only four-year institutions would be subjected to the new reporting requirements. Additionally, open-enrollment institutions that only award aid based on financial need do not need to submit this data to the National Center for Education Statistics (NCES), which oversees the IPEDS system.
- Institutions and higher education associations have raised concerns about the directive since its announcement, worrying it may result in administrative burden.
- Read AACOM’s submitted comments to the NCES on the new reporting requirements from October 2025.
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