Federal Update - November 19

November 19, 2025

GOVERNMENT RELATIONS HIGHLIGHTS

Government Reopens: Longest Shutdown in History 

Next Funding Fight: Senate Eyes Minibus for Education Appropriations 

More ED Reshuffling: New Interagency Agreements Announced 

RISE Rulemaking Ends: Consensus Reached 

AHEAD is Ahead: Major Regulatory Changes Likely to Impact Sector 

LONGEST SHUTDOWN IN US HISTORY

What You Need to Know 

Congress passed legislation last week that ended the longest government shutdown in US history. The deal funds most of the government through January 30 and includes full-year appropriations for three of the twelve spending bills. It also reverses reductions-in-force that occurred during the shutdown and prohibits additional staffing cuts until late January. 

Why This Is Important 

The shutdown’s impact was felt nationwide, and the pain grew more acute in early November. The compromise includes full-year funding for the US Department of Agriculture, ensuring that SNAP benefits remain funded even if another shutdown were to occur. Congress now faces the challenge of passing the remaining nine appropriations bills before the January 30 deadline. 

LABOR-HHS-EDUCATION APPROPRIATIONS ON DECK

What You Need to Know  

The Senate is expected to consider a “minibus” spending package that could include the Defense and Labor-HHS-Education appropriations bills – and possibly the Transportation-HUD, Commerce-Justice-Science, and Interior bills as well. So far, Senate negotiations have been largely bipartisan, ignoring President Trump’s proposed deep spending cuts. If the Senate passes the package, it’s unclear whether the House will accept it as-is or push for changes. The House Appropriations Committee has advanced bills more closely aligned with the President’s agenda. 

Why This Is Important  

House Republicans included language in their FY2026 Labor-HHS-Education bill that would block ED from implementing FVT/GE. The Senate version does not include this provision. AACS would like to see Congress pause FVT/GE while the Department develops new institutional accountability regulations under the new Do No Harm framework. AACS encourages you to reach out to your elected officials to encourage them include the House language that blocks FVT/GE as they finalize the Labor-HHS-Education bill. 

NEXT STEPS ON ED REORGANIZATION

What You Need to Know 

On Tuesday, the US Department of Education announced plans to transfer several of its offices to other federal agencies, advancing President Trump’s April executive order to dismantle ED. Certain components of ED’s operations will be jointly managed with the US Departments of Labor, State, Health and Human Services, and Interior. This move mirrors the July interagency agreement between ED and the Labor on workforce development programs.  

Why This Is Important 

While closing the Department outright would require congressional approval, the Trump Administration is pursuing an alternative approach: interagency agreements to jointly manage ED offices and programs. Whether this structure will work in practice remains to be seen, but it may be a bumpy road for institutions and students alike. 

CONSENSUS IN RISE NEG REG

What You Need to Know 

On November 6, negotiators concluded the second and final session of the Reimagining and Improving Education (RISE) negotiated rulemaking committee. The committee focused on student loan limits, repayment, and rehabilitation provisions outlined in OB3. The most closely watched discussion related to the definition of “professional degree,” which will impact federal loan caps across postgraduate programs. For example, the Department estimates that the draft language definition of “professional degree” includes 44 programs, covering 47% of doctoral professional students.  

Why This is Important 

Negotiators reached consensus on all 17 topics the committee addressed. This means the proposed rule will reflect the draft language upon which consensus was reached. Due to the government shutdown, ED has not yet posted the final draft language to its negotiated rulemaking resource website. We hope that ED will post the drafts in the coming weeks. During negotiations, the Department stated that the proposed rule would be forthcoming in early 2026 for public notice-and-comment.  

AHEAD NEG REG COMING UP

What You Need to Know 

The Department will convene the Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) negotiated rulemaking after Thanksgiving. The committee will meet on December 8–12 and January 5–9. Jeff Arthur, Chief Regulatory Officer at ECPI University, has been appointed to serve as the primary negotiator representing proprietary institutions. Ryan Claybaugh, Chief Operating Officer of Paul Mitchell Advanced Education, has been appointed to serve as the alternate negotiator for proprietary institutions. Aaron Lacey, co-chair of Thompson Coburn’s higher education practice group, will represent private nonprofit institutions.  

Why This is Important 

The AHEAD committee is expected to address, among other topics, the future of FVT/GE, the new Do No Harm accountability framework, and Workforce Pell. AACS will be actively engaged at every step of the AHEAD process. 

DEEPER DIVE: WHAT IS CONSENSUS?

The RISE Committee reached consensus on all draft language discussed during negotiations. When negotiators reach consensus, ED is bound to use the draft language in the proposed rule. The only exceptions to this requirement are if the Department reopens the negotiated rulemaking process or provides a written explanation to negotiators explaining why the Department has decided to depart from the agreed-upon language. In the absence of consensus, the Department would be free to propose its preferred language in the proposed rule. For this reason, even when negotiators are not entirely on board with draft language, negotiators may feel compelled to agree to reach consensus because of the predictability consensus provides. 

After neg reg concludes, ED then shifts to the notice-and-comment phase of rulemaking. This is when the Department publishes draft rules in the Federal Register for a public comment period, at which time AACS and our member institutions can provide substantive comments to ED. Accordingly, notice-and-comment will be the next step for the rules negotiated during RISE.