With Proposed "Compact" Higher Ed Faces a Test of Autonomy and Funding

"Compact for Academic Excellence" Threatens Higher Ed Funding 

The federal administration’s proposed “Compact for Academic Excellence” would tie federal funding to conditions on governance, admissions, faculty hiring, disclosure, and speech. Nine universities are evaluating whether accepting the compact means conceding institutional autonomy for uncertain benefits. The lack of clear terms or enforcement mechanisms has provoked widespread concern. Some institutions worry that rejecting the compact could risk exclusion from future funding programs. 
Key Takeaway: The compact proposal could reshape the balance of power between universities and the federal government over academic direction and oversight.

International Student Arrivals Drop 19%

In August 2025, U.S. higher ed institutions saw a 19 % decline in incoming international student arrivals year over year. Some experts note this may understate broader enrollment impacts, given overlapping visa, policy, and administrative constraints. The decline threatens revenue streams, campus diversity, and global reputation. Institutions heavily reliant on international tuition may feel deeper fiscal strain.
Quick Insight: The drop in international student arrivals foreshadows serious financial and demographic challenges for institutions.

ED Pushes Workforce Readiness as a Priority

The U.S. Department of Education has proposed new supplemental priorities for discretionary grant programs focused on “Meaningful Learning” and “Career Pathways and Workforce Readiness.” This signals a shift toward favoring higher ed proposals that explicitly tie curricula, credentialing, or partnerships to labor market outcomes. While the move is welcomed by workforce development advocates, critics question how flexibility, academic mission, and disciplinary diversity will be preserved. Institutions will likely face pressure to align proposals with workforce imperatives to be competitive for federal funding.
Key Insight: Grant funding priorities may increasingly favor institutions that tightly integrate academic programs with market-aligned credentials and employer partnerships.

Accreditors Encourage AI Use to Boost Credit Transfer Process

Recognizing that more than half of transfer-seeking students lose credits in the process, a group of accrediting agencies is encouraging institutions to use AI tools to streamline and standardize credit evaluations. The argument is that manual, inconsistent processing creates inequities, delays, and discouragement for many students. While not mandatory, the statement signals a shift toward innovation acceptance in accreditation practice.
Takeaway: AI may become a critical tool to reduce credit loss and improve transfer efficiency across institutions.

First-Year Survey Data Prompts Personalized Messages, Campus Partnerships

The University of Arizona uses a custom survey for incoming students—asking about interests, resource needs, and past experiences—to inform targeted outreach, messaging, and partnership design. The survey helps identify gaps in involvement and resource awareness early, before students disengage. This approach aligns with broader trends in using predictive analytics for student success.
Quick Insight: Proactive, data-informed engagement strategies for new students can strengthen retention and sense of belonging from day one.

Published: October 13, 2025