House Budget Plan Threatens Deep Cuts To Higher Education
House Republicans Propose 15% Cut to Education Department Budget
House Republicans unveiled a budget plan slashing the Education Department’s funding to $67 billion, closely aligned with President Trump’s vision of shrinking the agency. The proposal eliminates the Federal Supplemental Educational Opportunity Grant, cuts Work-Study, and reduces the Office for Civil Rights’ budget, while renaming Workforce Pell as “Trump Grants.” With the Senate pushing to maintain level funding, a government shutdown looms if no compromise is reached.
Key Takeaway: Institutions should prepare for scenarios in which campus-based aid and compliance oversight are sharply reduced, potentially shifting more financial and legal burdens onto colleges.
Judge Blocks Trump Administration’s $2.2B Funding Freeze at Harvard
A federal judge ruled that the Trump administration violated Harvard University’s First Amendment rights when it froze $2.2 billion in research grants earlier this year. The decision found that the freeze was politically motivated rather than tied to concerns over antisemitism, restoring Harvard’s access to federal research funding. The administration plans to appeal, signaling further legal battles that could affect all research universities.
Quick Insight: Research universities nationwide should watch this case closely, as it may set precedent for how much political influence the federal government can exert over academic funding.
DHS Proposes Four-Year Cap on International Student Visas
The Department of Homeland Security has proposed limiting international student visas to four years, ending the longstanding “duration of status” policy. Higher ed advocates warn this could disrupt doctoral and even bachelor’s programs, add new layers of bureaucracy, and deter global talent from enrolling in U.S. institutions. Leaders caution the move threatens America’s competitiveness in research, innovation, and talent recruitment.
Key Action: Colleges should immediately begin assessing the potential impact on graduate programs, enrollment pipelines, and institutional finances, while also preparing to submit comments to DHS during the rulemaking process.
Six Higher Education Trends to Watch in 2025–26
From sweeping budget cuts and new federal investigations to legal crackdowns on DEI and in-state tuition for undocumented students, the 2025–26 academic year promises to be challenging. The Trump administration’s domestic policy bill also brings new loan caps, program accountability measures, and regulatory shifts that colleges must navigate. Together, these developments create a turbulent landscape for institutional leaders across the country.
Quick Insight: Leaders should view these six issues as interconnected rather than isolated—budget, legal, and regulatory pressures are converging to reshape higher education governance.
Working Students Confront New Barriers Under Policy Shifts
Nearly three-quarters of undergraduates work while in college, and new federal policies may make balancing jobs and education even harder. The One Big Beautiful Bill Act expands Workforce Pell for short-term programs but also restricts aid when other funding is received, caps Parent PLUS loans, and adds stricter SNAP and Medicaid work requirements. For many working students, these changes could extend time to degree, increase debt, or push them out of higher education entirely.
Key Takeaway: Institutions should expand supports like emergency aid, flexible scheduling, and connections to public benefits to help working students remain enrolled and complete their degrees.
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Published: September 8, 2025
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