Federal Update - August 12

August 12, 2026

GOVERNMENT RELATIONS HIGHLIGHTS

***New Accountability Framework Guidance: AACS Summary Coming Later Today***

Senate Passes CR: Conflict with House Teed Up for September

Reconciliation 3.0 on Hold: Thune Lacks Votes to Advance Budget Resolution

Senate HELP Advances Higher Education Bills: College Transparency Act Leads Bipartisan Package

ED’s “National Call to Action”: Institutions Pressed on Accountability

SENATE ACTS TO AVOID SHUTDOWN

What You Need to Know 

Before departing for the August recess, the Senate overwhelmingly passed a continuing resolution (CR) that would extend government funding beyond the September 30 fiscal year deadline until after the midterm elections. The measure would fund the government through December 11, provide targeted adjustments for national security and nutrition assistance programs, and temporarily block implementation of a controversial Office of Management and Budget grants rule.

Why This Is Important 

The House also passed a continuing resolution before leaving for recess, though its version differs from the Senate bill. The House measure would fund the government only through December 4 and omits several Senate-backed provisions. While the Senate is not expected to return until September 14, the House will reconvene on August 31. At that time, lawmakers are expected to begin reconciling the two bills. Whether Speaker Mike Johnson (R-LA) can secure support within his conference for the Senate's approach is an open question and could shape the next phase of funding negotiations.

RECONCILIATION 3.0 STALLS

What You Need to Know

The Senate adjourned for the August recess with several major legislative items unfinished. Most notably, Senate Republicans were unable to advance a budget resolution that would tee up a third reconciliation package. The House-passed resolution would lay the groundwork for an approximately $95 billion package focused on defense, agriculture, and portions of the President’s election reform legislation. However, Senate Majority Leader John Thune (R-SD) repeatedly acknowledged that sufficient Republican support had not materialized. Other priorities also remain unresolved, including the House-passed National Defense Authorization Act. The Senate did, however, confirm Attorney General Todd Blanche before departing Washington.

Why This Is Important 

The Senate's decision to leave without taking up Reconciliation 3.0 represents a significant setback for Republican leadership and highlights ongoing divisions among Republicans over the size and scope of the package. Importantly, passing a budget resolution is only the first step in the reconciliation process. With a shrinking legislative calendar and the midterm elections fast approaching, Republicans face mounting pressure to advance their priorities but have limited time to do so.

CTA LEADS BIPARTISAN HIGHER ED MARKUP

What You Need to Know 

Before departing for recess, the Senate HELP Committee advanced several higher education bills, including Chair Bill Cassidy's (R-LA) College Transparency Act (CTA). The legislation would create a postsecondary student data system designed to provide students, families, institutions, and policymakers with better information on enrollment, completion, and workforce outcomes. The bill was approved on a near-unanimous 21-1 vote. The committee also approved legislation aimed at preventing the transfer of ED functions to other federal agencies. 

Why This Is Important 

The Committee's action on the interagency agreements highlights a growing divide between the House and Senate regarding ED’s future. While Senate HELP has moved to preserve key Department functions, the House EdWorkforce Committee recently approved its "Less Bureaucracy, Better Education" package, which would formalize the Administration's efforts to transfer certain education programs and responsibilities to other federal agencies. Accordingly, Republicans on Capitol Hill are not aligned on how the Trump Administration has outsourced ED operations.

MCMAHON'S "NATIONAL CALL TO ACTION"

What You Need to Know 

Education Secretary Linda McMahon issued a "National Call to Action" to university leaders, encouraging institutions to publish statements by the end of 2026 outlining their approaches to a range of issues, including admissions transparency, campus free speech, academic rigor, affordability, research security, and workforce development. The initiative asks institutions to provide greater detail regarding both existing policies and planned reforms, particularly in areas the Administration has identified as priorities.

Why This Is Important 

While the letter does not create new regulatory requirements, it signals continued focus on governance and accountability in higher education and may provide insight into policy priorities for future oversight or regulatory actions. Some institutions have continued to oppose the letter as restricting independence, while others have asserted that it is an improvement on the prior compact that the Administration issued more as an ultimatum than a conversation.

For More Information

If you have any questions about this Update, please email info@myaacs.org.