Federal Update - August 27

August 27, 2025

GOVERNMENT RELATIONS HIGHLIGHTS

Packed September for Congress: Funding deadlines, confirmations, and document disputes await 

OB3 Comments Due Thursday: ED seeks input ahead of fall neg reg sessions 

Deeper Dive: Rescissions and ED Programs: White House weighs new cuts as fiscal year deadline looms 

CONGRESS RETURNS NEXT WEEK TO CONFLICTING PRIORITIES

What You Need to Know  

Congress returns to Washington on Tuesday, September 2 from its August recess. The House adjourned early last month amid internal GOP disagreements over the release of the Epstein Files, and bipartisan pressure is mounting on the Trump Administration to release additional documents. Meanwhile, the Senate faces growing urgency to confirm a backlog of Trump Administration nominees. These issues will compete for attention alongside critical legislative deadlines. 

Why This Is Important 

Most urgently, Congress has made little progress in passing the twelve appropriations bills that fund the federal government. The current federal fiscal year ends on September 30. Due to the Senate filibuster, appropriations bills must have the support of Senate Democrats, who have been cautious because the Administration and their Republican allies in Congress continue to pursue policies, such as rescissions, that undermine existing funding agreements. Congress is expected to need to pass a continuing resolution to avoid a government shutdown, which would keep current funding levels steady for now.  

NEG REG PUBLIC COMMENTS DUE TOMORROW

What You Need to Know 

In advance of the two negotiated rulemaking committees planned for this fall and winter, ED is accepting public comments on proposed Title IV changes, including those required by the One Big Beautiful Bill Act (OB3). ED has extended the deadline to Thursday, August 28 at 11:59pm ET. As a reminder, the Reimagining and Improving Student Education (RISE) Committee will focus on student loan issues such as loan limits, repayment plans, institutional flexibility, and defaults. The Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) Committee will address accountability, Pell Grants, Do No Harm, and Workforce Pell eligibility. RISE will meet in September, October, and November. AHEAD will meet in December and January.  

Why This Is Important 

Over 1,700 comments have already been submitted. AACS will submit its public comments by the deadline and has already nominated negotiators to represent the sector during rulemaking. AACS will remain engaged throughout the regulatory cycle to ensure our member interests are well represented.  

DEEPER DIVE: WILL RESCISSIONS IMPACT ED PROGRAMS?

What You Need to Know  

In July, Congress narrowly passed a $9 billion rescissions package that targeted foreign aid and public media. This was the first successful rescission approved by Congress since 1999. For weeks, there has been speculation that the White House, led by Office of Management and Budget Director Russ Vought, is expected to submit additional recission packages to advance their mission of reducing government spending. Republicans expect another rescission request shortly after Labor Day, with rumors that it may include cuts to education programs. The scope of the package remains unclear, but in July, the Administration temporarily froze $7 billion in K–12 grants pending review. The funds were later released following bipartisan backlash and legal challenges. Any new rescissions could significantly impact federal education funding and program stability, though programs like Direct Loans and Pell Grants are not expected to be included. 

Why This Is Important 

Confronted by congressional Republicans weary of additional cuts to popular programs, the White House is considering whether to advance “pocket rescissions” in the coming weeks. This legally dubious tactic, which has faced skepticism from Senate Appropriations Chair Susan Collins (R-ME) and others, would allow the White House to claw back already-appropriated funding without Congressional approval. Vought argues that rescissions requests submitted within 45 days of the end of the fiscal year can be effectuated regardless of congressional action because the funding “evaporates at the end of the fiscal year” under his interpretation of the 1974 Impoundment Control Act.  

For More Information

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