Federal Update - April 23
April 23, 2025
GOVERNMENT RELATIONS HIGHLIGHTS
Reconciliation Slog Begins: Congress starts drafting policy language next week
ED Regulatory Reforms: Federal agencies have been directed to rescind unlawful regulations
Next Chapter on ED RIF: ED OIG addressed impacts of reduction-in-force
Trump Revokes Student Visas: Over 1,500 student visas have been impacted
Collections to Resume for Borrowers: ED will resume collections on defaulted student loans
CONGRESS STARTS WRITING RECONCILIATION BILL
What You Need to Know
When Congress returns from their spring recess next week, Republicans will begin the complex task of drafting policy language for their planned “big, beautiful” reconciliation bill, which includes key elements of President Trump’s policy agenda. House and Senate Committees will provide language that conforms to the instructions outlined in the compromise budget resolution passed earlier this month. It is not yet clear when the House EdWorkforce Committee will mark up their section of the bill, which is expected to contain substantial changes to higher education programs and funding.
Why This Is Important
Speaker Johnson (R-LA) wants to move fast. He has previously indicated that he wants Congress to have a bill on President Trump’s desk by Memorial Day. This timeline may be unrealistic given the amount of time that will be needed to iron out differences between the House and Senate, though Republicans are trying to move as quickly as they can. AACS’s Hill Day could not come at a more opportune time to meet with members and staff to discuss the issues facing our industry.
PRESIDENTIAL MEMORANDUM ON REGULATORY REFORMS
What You Need to Know
On April 9, President Trump issued a Presidential Memorandum directing federal agencies “to rescind regulations that are unlawful under 10 recent landmark Supreme Court decisions.” The memorandum follows the February 19 Executive Order directing federal agencies to identify regulations that are unconstitutional and that exceed statutory authorization. The Executive Order also instructed federal agencies to identify regulations that impose undue burdens on small businesses, harm national interests, or impose costs that outweigh public benefits. The White House directed federal agencies “to revoke these unlawful regulations expeditiously” and to take advantage of the “good cause” exception to bypass notice-and-comment requirements under the Administrative Procedures Act, where appropriate.
Why This Is Important
Several of the Supreme Court decisions highlighted in the Presidential Memorandum, including Loper Bright Enterprises v. Raimondo and West Virginia v. EPA, are cited in support of challenges to regulations of critical concern to AACS. We expect the Administration will weigh which regulations could be rescinded against the potential for favorable judicial resolution in pending litigation on rules like gainful employment that could bind future administrations.
INSPECTOR GENERAL TO REVIEW ED'S REDUCTION-IN-FORCE
What You Need to Know
The after-effects of ED’s March 11 reduction-in-force are still ongoing. On April 9, ED’s Office of Inspector General (OIG) responded to an inquiry from several Democratic senators with a letter in which the OIG reported that it will be conducting “reviews to provide information on the Department’s programs and operations following recent workforce changes.” Separately, two education policy groups filed litigation against ED challenging staff cuts at the Institute of Education Sciences.
Why This Is Important
We continue to learn more about ED’s post-reduction staffing environment and reassignment of responsibilities. The information we have received to date suggests that the Department is making a concerted effort to streamline its review and approval processes, including acting on matters that have been pending for an excessive amount of time. AACS will stay ahead of these changes for you and continue to provide updates.
TRUMP ADMINISTRATION REVOKES STUDENT VISAS AT INSTITUTIONS ACROSS THE COUNTRY
What You Need to Know
Over the past month, the Trump Administration began revoking international student visas on a large scale. Some reports suggest that more than 1,500 student visas have been revoked, across at least 280 institutions of higher education. The Administration cited student involvement in allegedly antisemitic protests as one basis for visa revocation.
Why This Is Important
For now, the vast majority of schools impacted by the revocations are public and private non-profit institutions. The widespread and ongoing nature of the revocations, however, could mean that the Administration may pursue similar actions for students at proprietary institutions.
COLLECTIONS TO RESUME FOR STUDENT LOAN DEFAULTERS
What You Need to Know
On April 21, ED announced that it will resume collections on defaulted student loans on May 5. ED will collect on defaulted loans through the US Department of the Treasury’s offset program, which withholds tax refunds, federal salaries, and certain federal benefits from people with past-due government debt. Following a 30-day notice period, ED stated it would begin wage garnishment for borrowers in default. Borrowers in default will be notified via email over the next two weeks. The notification will request that the borrower make a payment or enroll in a repayment plan.
Why This Is Important
This announcement marks an end to the five-year period, beginning with the COVID-19 pandemic, during which ED paused referral of student loans to collections. ED has not yet announced when it will end the loan forbearances under the SAVE Plan, which were placed in forbearance by the Biden Administration pending judicial review of the SAVE program regulations.
