Federal Update - May 6

May 6, 2026

GOVERNMENT RELATIONS HIGHLIGHTS

Maps Are Power: Redistricting Wars Heat Up Again 

Border Funding Back on Track: DHS Deal Sets Up Reconciliation 

McMahon Heads to Hill: Education Secretary Testifies on Budget

Loan Rules Finalized: ED Publishes Rule to Reshape Graduate Borrowing 

Accountability Framework Update: 14 Days Left to Submit Comments

REDISTRICTING WARS CONTINUE

What You Need to Know 

Across the country, Republicans and Democrats continue battling over congressional maps, reshaping political boundaries with major implications for the upcoming midterm elections. What began with Texas redrawing districts to reduce Democratic representation was quickly answered by a California referendum that weakened Republican districts. For a moment, Democrats appeared to gain momentum with a narrow referendum win in Virginia. That momentum may be fading. Florida has now moved forward with a plan that would reduce Democratic seats to just four. At the same time, a recent Supreme Court decision narrowed how the Voting Rights Act can be applied, giving states more freedom to redraw districts previously protected minority representation. In response, states including Louisiana, Tennessee, and Alabama are preparing to revisit their maps. 

Why This Is Important 

With midterm elections less than six months away and President Trump facing declining approval ratings, every redistricting decision matters. Fewer competitive seats make it harder for Democrats to reclaim control of the House, though a strong national wave could still overcome disadvantages in the final maps. Looking ahead, Democratic‑led states like Illinois, New York, and Colorado are likely to retaliate before 2028, setting the stage for future rounds of political mapmaking battles. 

DHS RECONCILIATION 2.0 ON DECK

What You Need to Know 

After more than 75 days of partial shutdown, Congress passed legislation restoring funding for most of the US Department of Homeland Security. However, Congress left funding for ICE and Customs and Border Protection unfinished. To resolve that gap, Republicans are turning to the reconciliation process, the same tool used to pass OB3, which allows legislation to move through the Senate with a simple majority. While early speculation suggested the bill could balloon to include unrelated provisions, Republican leaders successfully kept the package narrowly focused on DHS enforcement funding. 

Why This Is Important 

Before leaving for recess, Congress completed the first step by approving a budget resolution that set the framework for the reconciliation bill. The Senate released draft legislative text Monday night, and leadership expects the bill to clear Congress by the end of the month. Republicans have also hinted at the possibility of a third reconciliation bill later this summer, potentially centered on affordability and healthcare ahead of the midterms. Whether that effort succeeds will depend on timing, internal party unity, and the President’s political standing. AACS continues to track the reconciliation process for any issues affecting our community. 

MCMAHON TESTIFIES ON TRUMP EDUCATION PRIORITIES

What You Need to Know 

Last Tuesday, Education Secretary Linda McMahon testified before the Senate Appropriations Subcommittee on Labor, Health and Human Services, and Education to defend the Administration’s FY2027 budget proposal. She emphasized a shift toward state control, praised interagency transfers of ED responsibilities, and highlighted efforts to simplify the FAFSA. McMahon also pointed to the new earnings indicator to give students clearer information about debt and outcomes. 

Why This Is Important 

The hearing exposed bipartisan concerns. Republicans questioned proposed cuts to TRIO, the unresolved Pell Grant funding shortfall, and the movement of grant programs out of ED. Democrats sharply criticized the Administration for what they described as unlawful actions and shortsighted policies, including new graduate loan caps and reductions to the Office for Civil Rights. McMahon was also scheduled to testify in a closed Senate HELP Committee session, which was canceled amid disputes over transparency. Additional hearings featuring the Secretary are expected before the other authorizing and appropriations committees, though none have been officially scheduled. 

ED PUBLISHES THE REIMAGINING AND IMPROVING STUDENT EDUCATION (RISE) FINAL RULE

What You Need to Know 

On May 1, ED published the RISE final rule in the Federal Register. The rule addresses issues related to student loan limits, repayment, and rehabilitation based on requirements set forth in OB3. Specifically, the regulation implements borrowing caps for graduate and professional programs, eliminates Grad PLUS loans, and rolls out the new income-driven Repayment Assistance Plan. The rule also allows institutions to set loan limits for their own programs. ED states that the agency intends for this option to assist institutions in “preventing their students from overborrowing in programs with lower earnings or higher default rates[.]”   

Why This Is Important 

While the graduate and professional program-specific provisions of this rule may not directly impact AACS members, the rule serves as an important example of how quickly the Trump Administration is moving to implement its ambitious regulatory agenda. AACS members should be aware of ED’s new repayment plan and may want to consider whether establishing programmatic loan caps would be beneficial for their institution. 

ACCOUNTABILITY FRAMEWORK COMMENT PERIOD CONCLUDES SOON

What You Need to Know 

On April 20, ED published the Accountability in Higher Education and Access Through Demand-Driven Workforce Pell: Student Tuition and Transparency System (STATS) and Earnings Accountability notice of proposed rulemaking (NPRM). AACS urges all members to submit thoughtful comments that challenge the NPRM and to offer constructive alternatives. All comments to the NPRM must be submitted to ED through the regulations.gov portal no later than May 20. AACS has prepared a Comment Writing Roadmap for Institutions (available here) and a Comment Writing Roadmap for Industry and Graduates (available here). These documents are intended to guide AACS members through the drafting process and to suggest ideas about topics it may be worthwhile to include. 

Additionally, we encourage you to refer to the new Submit Your Comment webpage for further information and resources as you prepare your comments. 

Why This Is Important 

In OB3, Congress directed ED to develop accountability regulations for undergraduate degree programs, graduate degree programs, and graduate certificate programs. But OB3 pointedly excluded undergraduate nondegree programs. ED nevertheless proposes extending the new accountability framework to include undergraduate certificates, like most cosmetology, barber, and wellness programs. ED’s data suggests that nearly all such programs are projected to fail the Accountability Framework’s requirements, with the significant majority of programs facing the potential loss of Title IV eligibility.