GW Weekly Federal Update (September 12)

Recent Federal Actions

The National Capital Region and Other States

• September 6: The U.S. District Court for the Eastern District of Virginia dismissed Arlington and Fairfax County school district lawsuits that sought to prevent the U.S. Department of Education (ED) from freezing millions of dollars in federal funding. The Court concluded that it was the Court of Federal Claims, and not the U.S. District Court, that had jurisdiction to hear disputes on how the federal government distributes money. On September 10, Fairfax County filed an appeal with the U.S. Court of Appeals.
  (We previously reported on these lawsuits in the September 5 edition of the GW Weekly Federal Update.)
   
• September 10: President Trump’s 30-day federal takeover of the Metropolitan Police Department (MPD), declared on August 11 under a crime emergency, expired and was not extended, which returned operational control of the MPD to the District. Speaker Mike Johnson said he would not pursue an extension, citing steps taken by Mayor Muriel Bowser, who has emphasized cooperation with federal authorities. While MPD oversight will revert to local leadership, National Guard troops and federal law enforcement remain active under orders extended through November 30. However, Mayor Bowser announced that with the expiration of the 30-day federal takeover, MPD would no longer cooperate with ICE agents under an August 14 executive order. Mayor Bowser on September 2 issued another executive order directing her public safety team to coordinate with federal officials in other ways.
   
• September 10: The House Committee on Oversight and Government Reform met to consider 14 bills related to D.C. home rule and crime policy. Among them is a proposal to amend the D.C. Home Rule Act to establish a uniform 60-day congressional review period for District laws and clarify procedures for congressional disapproval. Other measures under consideration include legislation to eliminate cashless bail, increase mandatory minimum sentences, repeal certain youth sentencing reform laws, and codify a D.C. beautification initiative.

Visas and International Students

• September 10: The Association of American Universities (AAU), along with the American Council on Education (ACE) and 30 other higher education organizations, sent a letter to Secretary of State Marco Rubio requesting that F, J, and M student visas be exempted from the June 2025 travel ban and any future bans. The letter noted that international students undergo extensive vetting, including application reviews, interviews, and monitoring through the Student and Exchange Visitor Information System (SEVIS), and that nonimmigrant visas were exempted under previous travel restrictions. The letter also raised concerns about delays in student visa processing, given the recent implementation of social media screening requirements, and emphasized the academic and economic contributions of international students in the United States.

Federal Actions Related to Other Universities

• Northwestern University: On September 4, Michael Schill, president of Northwestern, announced that he was stepping down, citing “myriad challenges” facing Northwestern, including an ongoing federal research funding freeze imposed by the Trump Administration relating to antisemitism and the manner in which Northwestern handled pro-Palestinian protests last year.

Federal Grantmaking and Research

• September 10: The Department of Education (ED) announced that it would cease to fund new awards and non-competing continuations for several Minority-Serving Institutions (MSI) discretionary grant programs, totaling approximately $350 million dollars. The Congressionally-appropriated funds will be redirected to “programs that do not include discriminatory racial and ethnic quotas that advance Administration priorities.” Seven grant programs are impacted, including funds for Hispanic-serving institutions, Alaska Native and Native Hawaiian–serving institutions, predominantly Black institutions, Asian American, Native American and Pacific Islander–serving institutions and Native American–serving nontribal institutions.
   
• September 10: Commerce Secretary Howard Lutnick said that the federal government should receive 50% of moneys generated from patents that universities and their researchers develop with federal funding. Lutnick remarked: “The scientists get the patents, the universities get the patents and the funder of $50 billion, the U.S. government, you know what we get? Zero. In business, if I gave them 100% of their money, I would get half the profits, with the scientists. So I think if we fund it and they invent a patent, the United States of America taxpayer should get half the benefit."
   
• The House has ruled in order an amendment known as the “SAFE Research Act” (Amendment #26), sponsored by Rep. John Moolenaar (R-MI), Chair of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, as part of consideration of the National Defense Authorization Act (NDAA). The amendment would prohibit federal agencies from funding researchers who collaborate with “hostile foreign entities” or foreign adversary-controlled entities. While the timing of a floor vote on this amendment is not yet certain, votes on NDAA amendments have begun. Higher education associations, including AAU, have previously raised concerns about the scope of such a proposal, noting that it applies across all federal agencies, could affect programs beyond research, may duplicate existing disclosure requirements, and would require retroactive certification of activities over a five-year period.

Free Application for Federal Student Aid (FAFSA)

• The Department of Education (ED) has confirmed that the FAFSA will be released on schedule this year, with the 2026–27 form available to the public on October 1 and early access offered in September. The FAFSA collects student and parent financial information to determine eligibility for federal grants, loans, and work-study programs, and is also used by states and colleges to award their own aid. In the previous two years, students experienced delays due to technical issues during a required system overhaul, the department reports that early “beta” testing began in August, involving several school districts and education organizations, and no major issues were identified. More than 7,000 students had requested early access by late August, and forms completed during the testing period will count as official submissions. Updates to the form include immediate account verification for users with Social Security numbers and simpler options for parents or guardians to complete their portion of the application.

U.S. Department of Education Developments

• September 5: The Department of Education (ED) announced that its Office of the Ombudsman, which traditionally handled borrower complaints, has been renamed the Office of Consumer Education and Ombudsman and will now also focus on providing students and families with information about the benefits and risks of federal student loans. The department cited the size of the federal student loan portfolio, which totals nearly $1.7 trillion, and high default rates as reasons for the change. In addition to continuing to respond to borrower complaints, the office will develop a new manual governing direct loan-collection practices and policies to strengthen accountability and oversight of loan servicers. The department stated that the expanded role is intended to give families clearer guidance at the outset of the borrowing process to support more informed financial decisions.
   
• September 8: ED and the Department of Labor (DOL) announced new steps to implement their workforce development partnership, which aims to streamline federal workforce and education programs. As part of the agreement, ED will transfer staff and program funds to DOL to support administration of core Workforce Innovation and Opportunity Act (WIOA) programs, including adult education and family literacy. A new integrated state plan portal has been launched to simplify how states submit and manage WIOA plans, and adult education and career and technical education grantees will now use DOL’s Payment Management System for grants administration. Under the arrangement, DOL will serve as the centralized hub for federal workforce programs, while ED retains statutory policymaking and oversight responsibilities. The departments stated that these changes are intended to improve coordination and efficiency for states and grantees, with further guidance to be provided as implementation continues.
   
• ED has released its spring rule-making agenda, which outlines both new initiatives and proposals already underway. In the prerule stage, the department is considering revisions to accreditation regulations that would clarify how institutions may change accreditors and establish a process for new accrediting bodies to gain federal recognition, as well as changes to Title IV student aid eligibility that would expand access for certain for-profit and religious institutions. Items in the proposed rule stage include:
  • Revisions to enforcement of Title VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972 to streamline the process by which the Office for Civil Rights may terminate federal funding for institutions that do not comply with civil rights laws;
  • Removal of the “disparate impact” standard as a basis for determining discrimination;
  • Codification of requirements for colleges and universities to disclose foreign gifts and partnerships; and
  • Amendments to the Public Service Loan Forgiveness program that would limit eligibility for employees of certain nonprofit organizations.

The department is currently accepting public comments on the PSLF proposal, while the accreditation and Title IV items remain in the early stages of development.

Congressional Budget Process

• As reported in the September 5 edition of the GW Weekly Federal Update, Congress has returned to session with a September 30 deadline to avoid a government shutdown and is considering various options, including a short-term continuing resolution, while continuing work on individual appropriations bills. 
   
• September 4: The House voted to pass the FY26 Energy-Water bill, which provides a 2% increase for the Department of Energy Office of Science but makes significant cuts to ARPA-E and other research offices. 
   
• September 9: The House Appropriations Committee advanced the FY26 Labor-HHS-Education bill. It:
  • Provides $46.9 billion for the National Institutes of Health (NIH) (an increase of less than 1% over FY25);
  • Maintains funding for all 27 institutes and centers while rejecting the administration’s proposed restructuring;
  • Reduces Advanced Research Projects Agency for Health (ARPA-H) funding by 37%;
  • Restricts gain-of-function and fetal tissue research;
  • Includes $66.7 billion for the Department of Education, a 15% reduction from FY25;
  • Eliminates Federal Supplemental Educational Opportunity Grants (SEOG) and Title VI international education programs;
  • Cuts Federal Work Study by $451 million;
  • Reduces the Institute of Education Sciences by 7%; and
  • Maintains the maximum Pell Grant at $7,395.
     
• The House Appropriations Committee is set to mark up the FY26 Commerce-Justice-Science bill, which proposes $7 billion for NSF (a 23% reduction from FY25) and flat funding for NASA at $24.8 billion, with cuts of 18% to NASA Science and 17% each to NASA Aeronautics and NASA Space Technology.

Resources and Reminders

About this Newsletter

GW publishes this weekly Federal Update to inform students, faculty and staff about how developments in the federal government affect higher education generally and the University. This newsletter includes timely information, answers to questions from GW community members, and resources for support.