How New Federal Grant Shifts Could Reshape Campus Student Success Work

ED’s ‘Special Projects’ Grants Spark Concern

The Education Department is redirecting almost all of the $171 million that Congress appropriated to seven specific FIPSE student success programs, including Basic Needs, Rural Postsecondary, and Veteran Student Success, into a new “special projects” competition aligned with the USDOE's priorities in AI, civil discourse, accreditation, and short term workforce programs. Critics argue this move sidesteps congressional intent and could leave at least 100 colleges and systems without expected funds for basic needs and completion work, even if existing grantees continue to be funded. Policy experts note that while the reprogramming is technically legal because Congress specified program amounts in guidance rather than statute, it is highly unusual under a continuing resolution and may set a precedent for using FIPSE as a flexible slush fund. The tight December timeline and ongoing staffing shortages at the Office of Postsecondary Education raise additional questions about the department’s capacity to award the money effectively.

Key Takeaway: Federal money that campuses expected for core student success and equity work is being redirected to new political priorities, so presidents, grant offices, and basic needs leaders need to reassess their funding strategies for 2025.

Will Education Department Staff Return?

Congress has passed a package to end the longest federal government shutdown in history. Because some ED staff were deemed essential, financial aid disbursement and loan servicing continued, so institutions are not expecting major operational changes in the short term. The bill is supposed to reverse a recent reduction in force and reinstate more than 460 laid off Education Department employees, many of whom oversee higher ed grant programs, within five days. Union leaders and policy experts, however, are skeptical that the administration will fully restore staff or comply with the spirit of the law, raising concerns about long term capacity for oversight, grants, and student benefit processing.

Quick Insight: The shutdown may be ending, but uncertainty about whether the Education Department will actually bring back laid off staff leaves colleges facing ongoing risk around grants, compliance, and student benefits, especially heading into another short term funding window.

New Accreditor Gains Momentum In The South

The Commission for Public Higher Education, a new accreditor launched just four months ago, has already received letters of intent from 10 public institutions in Florida, Georgia, North Carolina, and Texas, all currently accredited by SACSCOC. The colleges range from regional publics like Columbus State University and Georgia Southern University to research institutions like Florida Atlantic and UNC Charlotte. CPHE is seeking federal recognition amid criticism that it is a politically motivated alternative designed to align more closely with conservative state governments and give lawmakers leverage over institutions. If recognized, the new accreditor could accelerate the trend of states pushing institutions to switch accreditors and may reshape accountability expectations for public colleges in the South.

Insight: The emergence of CPHE as a serious contender in the accreditation space signals that political fights over governance and academic freedom are increasingly going to run through accrediting agencies, not just legislatures and boards.

Survey: A Third of College Students Aren’t Getting Involved

The 2025 Student Voice survey of more than 5,000 students found that 36 percent overall, and a striking 64 percent of community-college students, report participating in no extracurricular or co-curricular activity. Students who work 30 or more hours per week, adult learners, first-generation students, and stop-out returners show even higher non-participation rates, indicating engagement gaps tied to time, work, and life demands. The survey also found that students who haven’t participated are more likely to cite paying for college and balancing other obligations as top stressors (59 percent vs. 46 percent). The preferred communication method for important information among non-participating students is email (84 percent), even though many administrators assume text is best.

Key Takeaway: If one-third or more of students aren’t engaging outside the classroom, colleges need to rethink how they promote and structure campus involvement, and ensure those efforts reach students juggling work, finances, and family.

Published: November 14, 2025