Federal funding decisions are reshaping what colleges can research, teach, and sustain.

Federal Agencies Used Keyword Lists to Cancel Research Grants

Court documents reveal that several federal agencies used broad keyword searches to identify and terminate grants related to diversity, health equity, climate change, green energy, and other topics opposed by the Trump administration. The National Science Foundation relied on hundreds of terms, including words such as “minority,” “institutional,” “historically,” and “traumatic,” while other agencies flagged terms related to LGBTQ populations, neurodiversity, and environmental issues. Rather than reviewing each project individually, agencies used general criteria that swept in research on topics ranging from adolescent mental health to gestational diabetes. Preliminary court injunctions have blocked some cancellations, including the suspension of more than $500 million in funding to UCLA.

Key Takeaway: Institutions should prepare for continued uncertainty in federal research funding while closely reviewing grant language, documenting project impact, and monitoring ongoing litigation.

Bipartisan Senate Vote Challenges Efforts to Dismantle the Education Department

Two Republican senators joined Democrats on the Senate education committee to advance legislation that would keep four major offices within the U.S. Department of Education. The bill would protect the offices responsible for postsecondary education, special education, elementary and secondary education, and Indian education from being transferred to other agencies. Other functions, including civil rights and career and technical education, are not covered by the bill and have already been moved through interagency agreements. Although the legislation faces long odds in Congress, the 13 to 9 committee vote signals growing disagreement among Republicans over the administration’s plan to wind down the department.

Quick Insight: Colleges should not assume the Education Department’s restructuring is settled, as congressional resistance could affect which agencies ultimately oversee critical programs and protections.

Reengaging Stopped-Out Students Requires More Than an Open Door

More than 43 million Americans have earned some college credit but no credential, including 37.6 million working-age adults. Despite the size of this population, fewer than 3 percent of eligible stopped-out students reenrolled during the 2023–24 academic year. Forsyth Technical Community College’s experience with NC Reconnect illustrates a more proactive model that combines targeted marketing, rapid personal outreach, adult learner coaching, and wraparound support. The approach recognizes that institutions must actively find and support former students instead of waiting for them to return independently. Read the Community College Daily article.

Key Insight: Successful reenrollment strategies must connect targeted outreach with personalized navigation and ongoing support that addresses the barriers that caused students to leave.

Ending Grad PLUS Loans Creates New Access and Workforce Concerns

The elimination of Grad PLUS loans took effect July 1, creating potential funding gaps for students pursuing graduate and professional degrees. EdTrust’s state fact sheets show that the impact will vary significantly by location, institution, and program, with some students likely to become more dependent on private loans. The change could alter graduate enrollment patterns and place additional pressure on institutions and states to provide financial support. It may also weaken workforce pipelines in fields that require advanced credentials, particularly if lower-income students cannot secure affordable financing.

Takeaway: Graduate-serving institutions should assess which students and programs face the greatest financing gaps and strengthen advising before prospective students turn to riskier private loans or abandon enrollment.

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Published: August 1, 2026