Latest Federal Update

Below is updated information about the substance of several executive orders issued by the administration and actions that affect the work of career services and early talent recruiting professionals and their institutions and organizations, as well as those entering the workforce through higher ed.

We will continue to keep you updated on regulations and laws that could impact our professions and workplaces. This will include details about the changes once more interpretation is available and we have a better understanding of the scope and compliance measures that will be necessary. (Please note: A number of lawsuits have been filed in connection with many of the executive orders.)

For a full list of the executive orders, see Presidential Actions.

June 5, 2026

Federal Financial Assistance

A the end of May, the Office of Management and Budget issued a proposed rule to revise the Guidance for Federal Financial Assistance in regard to the management of grants, cooperative agreements, and other forms of assistance.  The administration has proposed adding several new certifications related to issues such as DEI, immigration, and national security that institutions would need to obtain as a condition of receiving federal funding. There are a significant number of proposed changes in these regulations, which have been summarized by the American Council on Education.

April 21, 2026

Department of Education

FY2027 Budget: President Trump released his FY2027 budget request, proposing a 2.95 cut to the Department of Education, bringing total funding to roughly $76.5 billion. This is a significant shift from last year’s proposal to reduce the agency’s budget by more than 15%, which Congress rejected on a bipartisan basis.

The administration continues to target programs related to diversity, equity, and inclusion. Most notably, the budget would eliminate funding for Minority Serving Institutions. However, these programs have historically enjoyed strong bipartisan support, suggesting that elimination is unlikely.

The budget also would eliminate the Fund for the Improvement of Postsecondary Education and the Teacher Quality Partnerships program, both of which have long been used to support innovation and educator preparation, and Equity Assistance Centers, which support school desegregation efforts.

The proposed budget includes substantial increase for the Pell Grant program, with a $33 billion infusion to address the projected shortfall. Congress rejected prior efforts to eliminate TRIO, GEAR UP, and other pipeline programs in FY2026, and given their bipartisan support, it is likely those programs will remain.

TRIO Education Opportunity Centers program: The Department of Labor, in coordination with the Department of Education, has announced a new grant competition for the TRIO Education Opportunity Centers program. Designed to support adults seeking to enter or return to postsecondary education, the program’s broader objective is to increase postsecondary enrollment among adult learners.

Applications submitted by state educational agencies, workforce boards, and state higher education agencies will receive a competitive preference, allowing them to earn additional points during the review process. The application deadline is May 14, 2026.

Department of Labor

Funding and Workforce Strategy: The proposed budget reduces the Department of Labor’s funding by nearly 26% to $9.9 billion.

The administration is prioritizing a skills-based workforce model. Key investments focus on Registered Apprenticeships,  the Make America Skilled Again initiative, and the Workforce Pell. In addition, career and technical education programs would be consolidated under the Department of Labor, positioning the agency as the central hub for workforce development. This consolidation would need authorization from Congress.

The budget once again proposes eliminating Job Corps, citing concerns about outcomes and program management. This change would reduce federal support for structured entry points into the workforce, particularly for individuals seeking initial training and work experience.

The proposal also eliminates the Office of Federal Contract Compliance Programs and reduces funding across worker protection agencies. This represents a shift away from federal enforcement of diversity and nondiscrimination requirements tied to federal contracting.

Overall, the Labor budget reflects a move toward a smaller federal role, greater reliance on state and employer-led workforce systems, and a policy emphasis on skills-based training and domestic labor participation.

Immigration and Workforce Policy

The administration’s FY27 proposed budget advances a more centralized and enforcement-focused approach to immigration policy, with direct implications for the labor market. A key structural change is the proposal to elevate the Office of Foreign Labor Certification to report directly to the Secretary of Labor. This move is intended to accelerate decision-making on employment-based visa issues and further align labor certification policy with broader administration priorities. The office plays a central role in overseeing temporary worker programs and enforcing wage standards for foreign labor, including high-skilled visa pathways. The budget proposal reflects a continued effort to tighten oversight of employment-based immigration while maintaining selective flexibility for certain sectors.

Beyond workforce policy, the budget underscores a sustained emphasis on enforcement. The administration is seeking significant resources to maintain and expand immigration detention capacity, alongside additional funding for immigration courts to accelerate removal proceedings.

DEI

Addressing DEI Discrimination by Federal Contractors Executive Order: On March 26, the White House issued a new executive order titled “Addressing DEI Discrimination by Federal Contractors.” The order outlines the administration’s definition of what it considers discriminatory DEI activities and directs federal agencies to update contracts and contract-like instruments within 30 days to include provisions prohibiting those practices. This requirement extends to subcontractors and lower-tier subcontracting arrangements. The order also requires contractors, upon request, to provide information to the federal government to demonstrate compliance. While the directive does not specifically address federal grants, agencies are expected to begin incorporating these requirements into contract terms moving forward.

State DEI efforts: State legislatures are increasingly moving to align with the administration’s workplace policy agenda by limiting the authority of local governments. In Florida, lawmakers have advanced legislation that would curb the ability of cities and counties to adopt or enforce diversity, equity, and inclusion initiatives. Iowa has taken a similar approach through a newly enacted law that restricts local civil rights protections, particularly those extending to transgender and nonbinary individuals, by preventing local jurisdictions from going beyond state-defined protected classes. Tennessee has gone even further, adopting a broad prohibition on local regulation of private-sector employment altogether.

These actions are part of a broader and continuing trend in which state governments are asserting greater control over policy areas traditionally influenced by local jurisdictions.

March 18, 2026

Department of Education

Negotiated Rulemaking

• Reimagining and Improving Student Education (RISE) Committee

  March 2, 2026, was the deadline for stakeholders to weigh in and submit comments to the Department of Education on the lower loan limits established in the One Big Beautiful Bill Act and what programs are defined as professional for purposes of eligibility for the higher loan threshold. Joining with more than 40 associations, NACE signed the broader community comment letter, led by the American Council on Education. The department received more than 60,000 comments on the proposed rule. The final rule is expected in early May.

  In Congress, more than 140 members wrote a bipartisan letter to the department in December urging it to raise the loan limit for nurses. Five separate pieces of legislation have also been introduced in Congress that either add professional programs to the eligibility list, eliminate the loan limits, or raise the loan limit amount. The higher education community is broadly advocating for a bill by Congressman Lawler called the Professional Student Degree Act. The bill would expand the definition of a professional degree for purposes of the loan limits and include a broader set of programs, such as nursing, physical therapy, occupational therapy, social work, physician assistant, business administration and management, accounting, architecture, secondary education, and special education.

• Accreditation and the Accreditation, Innovation, and Modernization (AIM) Committee

  At the end of February, Education issued an interpretive rule aimed at lowering barriers for new and emerging accrediting agencies. Because it is interpretive guidance and not a change to the regulations, it took effect immediately. The guidance focuses on how the department determines whether an accreditor has been operating long enough to qualify for federal recognition. Historically, that two-year activity requirement has been viewed as a significant hurdle. The department now plans to take a broader view of what counts as meaningful accrediting activity, potentially shortening the runway for new entities seeking recognition. The department also states that it intends to move applications through the review process more quickly, including committing to an initial eligibility determination within 60 days of submission. The rule does not eliminate existing accreditors, and it does not dismantle the accreditation system. Rather, it signals a policy priority to increase competition among accreditors and reduce what the department views as barriers to entry.

  The AIM Committee is scheduled to meet April 13–17 and May 18–22 to consider broader changes to the accreditation framework. These sessions are expected to address issues such as institutional accountability, innovation, oversight standards, and the role of accreditors in workforce preparation. The committee’s work could lead to proposed regulatory changes later this year, which would then go through the formal notice-and-comment process.

  We will continue to track these changes and keep you updated. We expect to see new accreditors entering the market, which would provide more choices for institutions and increase competitive pressure within the accreditation system.

Pell Grant Shortfall

The federal Pell Grant program is facing a significant projected funding shortfall driven largely by expanded eligibility and flat funding through the annual appropriations process. According to the Congressional Budget Office, the program is expected to have a $5 billion deficit by the end of this fiscal year. If no action is taken, the shortfall could reach between $104 billion and $132 billion over the next decade. These projections include the $10.5 billion infusion that was included in last year’s One Big Beautiful Bill Act.

Congress has historically addressed Pell shortfalls through one-time rescissions, supplemental appropriations, or technical adjustments to award calculations, but this gap is significantly bigger than previous shortfalls. Given this, lawmakers may have to look beyond short-term fixes and consider changes to how much funding students receive, who qualifies, and how the program is structured overall.

One area to watch is the newly authorized short-term Workforce Pell program (see below). While Workforce Pell is currently projected to cost roughly $2 billion over 10 years, actual costs will depend on the program rollout and how many students participate. If enrollment in short-term credential programs expands quickly, additional pressure could be placed on the broader Pell program.

The Pell program continues to maintain strong bipartisan support in Congress. We don’t expect to see changes to the program this year, but proposals such as reducing the maximum award, tightening eligibility criteria, redefining full-time enrollment, or limiting lifetime eligibility will likely be under discussion in the future. Last year, the president proposed a $1,700 cut in the maximum Pell award—approximately a 23% cut—which Congress did not support.

Proposed Workforce Pell Grant Rule

On March 6, Education released its proposed regulation for the new Workforce Pell Grant program. The grants are being expanded to workforce training programs as short as eight weeks. A broader Pell program change is also included, prohibiting students who receive grants or scholarships that cover or exceed their cost of attendance from being eligible to receive Pell at the same time. There is a 30-day comment period that started on March 9. The regulation goes into effect on July 1. 

New Student Loan Default Rate Guidance

On February 18, the Department of Education issued new guidance urging colleges and universities to take additional steps to reduce student loan default rates ahead of significant repayment changes that will take effect this summer. The Department reminded institutions that failure to maintain acceptable cohort default rates could jeopardize their access to federal student aid programs, including the Direct Loan program.

Under existing rules, institutions may lose eligibility if their cohort default rate exceeds 30 percent for three consecutive fiscal years or surpasses 40 percent in a single year. The Department also highlighted rising “nonpayment rates,” defined as borrowers who are at least 90 days delinquent, noting that approximately 1,800 institutions have nonpayment rates of 25 percent or higher. Officials characterized these trends as early warning indicators of future default risk and emphasized that institutions share responsibility for preparing students to successfully enter repayment.

Beginning this summer, the Repayment Assistance Plan, enacted through the One Big Beautiful Bill Act, will become the only income-driven repayment option available to new borrowers, alongside the standard repayment plan. Higher education groups have raised concerns about placing disproportionate responsibility on institutions for repayment outcomes, noting that borrowers maintain direct relationships with loan servicers. The Department, however, signaled that institutions must play a more active role in counseling students and supporting repayment success or risk heightened accountability measures.

DEI Update

Last month, the Trump administration dropped its legal appeal of the Department of Education’s February 2025 Dear Colleague Letter addressing diversity, equity, and inclusion policies. On February 18, 2026, a federal court formally closed the case after the department agreed it would not rely on or enforce the letter. The court did not issue a ruling affirming DEI programs. The immediate takeaway is that the specific federal funding threat tied to that Dear Colleague Letter is no longer in effect. Institutions are no longer facing enforcement pressure to modify policies or practices in response to that directive, and the risk of investigations or funding penalties based solely on that letter has been removed.

Earlier this month, the U.S. Court of Appeals for the Fourth Circuit upheld two of President Trump’s executive orders that had previously been under a preliminary injunction, allowing them to move forward while litigation continues. Those orders direct federal agencies to eliminate what the administration characterizes as discriminatory preferences and require that federal contracts and grants include certifications that recipients comply with federal antidiscrimination laws. In addition, the General Services Administration has issued a notice and request for comment (see detailed information below) on proposed revisions to federal funding certifications that most recipients of federal contracts and grants must submit. This indicates that the administration is now advancing its DEI priorities through procurement and grant mechanisms.

General Services Administration

On January 28, the General Services Administration (GSA) issued a notice and request for comment proposing revisions to the certifications that nearly all recipients of federal funding must submit through the System for Award Management (SAM.gov). The proposed changes are intended to align funding certifications with recent executive branch directives, including the president’s executive order on “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” and related Department of Justice (DOJ) guidance concerning the application of federal antidiscrimination law to diversity, equity, inclusion, and accessibility (DEIA) initiatives.

Under the proposal, entities registering in SAM would be required to certify that they will comply with the Constitution, federal antidiscrimination laws, and relevant executive orders prohibiting unlawful discrimination based on race or color in federally funded programs, including programs labeled as DEIA initiatives. The certification references an extensive list of practices drawn from DOJ guidance that “may” violate federal civil rights laws.

The proposed revisions would also require recipients to certify compliance with executive branch guidance concerning freedom of speech and religious liberty in federally funded programs; affirm that they will not engage in conduct related to unlawful immigration activities; and certify that they will not fund or facilitate violence, terrorism, or other illegal activities that threaten public safety or national security. The certification includes an accuracy attestation and expressly notes potential exposure to civil liability under the False Claims Act and criminal penalties for providing false or fraudulent information.

Comments are due March 30, 2026. Before the revisions take effect, GSA must issue a final rule, which is expected to face legal challenges.

Department of Justice

The Department of Justice recently filed civil rights lawsuits against both Harvard University and the University of California, Los Angeles. The complaint against Harvard alleges failure to cooperate with a federal investigation into potential racial discrimination in admissions practices. The lawsuit against UCLA alleges that the university tolerated antisemitic harassment of staff during campus protests related to the Israel–Gaza conflict.

Rather than relying primarily on funding freezes or executive directives, DOJ is now pursuing claims through the courts under existing civil rights statutes. Both institutions have previously challenged federal funding suspensions in court and regained research funds, and the administration appears to be recalibrating its strategy in response.

While the cases are in early stages, they underscore continued federal scrutiny of admissions practices, campus climate issues, and civil rights compliance.

Department of Labor

On February 26, the Department of Labor’s Wage and Hour Division issued a proposed rule that would revise the standard for determining whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The proposal would rescind the 2024 independent contractor rule and replace it with an approach like the 2021 framework.

Under the proposed rule, the department would apply an “economic reality” test focused on whether a worker is economically dependent on an employer or is operating an independent business. The analysis centers on two primary factors: 1) the nature and degree of control over the work and 2) the worker’s opportunity for profit or loss based on initiative or investment. Additional considerations include the level of skill required, the permanence of the relationship, and whether the work is part of an integrated production unit. The rule makes clear that actual practice, not contractual language, will drive the determination. The department also proposes applying this framework to the Family and Medical Leave Act.

The proposal is open for public comments through April 28, 2026. After reviewing those comments, the department may revise the proposal before issuing a final rule.

Office of Personnel Management

On February 19, the Office of Personnel Management finalized regulations updating a 2021 interim rule intended to strengthen federal recruitment of college students and early career talent. The rule carries out provisions from the FY2019 and FY2020 National Defense Authorization Acts that were designed to address declining participation in federal internship and early career hiring programs.

Under the final rule, agencies can continue using expedited hiring authority to appoint undergraduate and graduate students to one-year temporary or up to four-year term positions in the competitive service. Students must be enrolled at least part time and may be paid at the GS-11 level or below. Agencies retain discretion to approve breaks in the program, which could allow students to work full time during academic breaks, pause employment to focus on coursework, or temporarily step away from both work and school.

Currently, the law limits how many students an agency can hire under this new authority to no more than 15% of the number of students they hired the previous year. Under the new rule, agencies can count not only students hired under this authority, but also students hired under other student programs, such as Pathways internships, which may give them more flexibility in using the new hiring authority.

Immigration

H-1B

Last week, the Department of Homeland Security’s (DHS) final rule modifying the H-1B selection process went into effect. The FY2027 H-1B cap will no longer rely solely on a random lottery but instead adopts a wage-weighted selection process that generally favors higher-wage positions. The H-1B registration window for the FY2027 cap is expected to open in early March and remain open for approximately three weeks. Employers should be prepared for a more competitive selection process, particularly for recent graduates.

Litigation continues regarding the $100,000 fee imposed by President Trump on certain H-1B petitions. A federal district court upheld the fee in late December 2025, and the D.C. Circuit agreed to fast-track the appeal. Until the appellate court rules, uncertainty remains around the ultimate enforceability of the fee.

OPT

DHS continues to list Optional Practical Training (OPT) on its regulatory agenda, which is the government’s forward-looking list of potential rulemakings. While a proposal has not yet been issued, the summary suggests changes would focus on tightening the connection between OPT employment and degree programs, increasing oversight to prevent fraud, and addressing national security and labor compliance concerns.

DACA and Student Deportations

On February 11, DHS confirmed in a letter to Senate Democrats that immigration authorities detained 261 DACA recipients and deported 86 of them. DHS reported that most of the detainees had previous criminal records, though they did not specify what the charges were. This has drawn significant concern from lawmakers, particularly given that DACA recipients undergo recurring background checks as a condition of maintaining their status. DHS emphasized that DACA provides temporary protection and does not confer a permanent right to remain in the United States.

No new DACA expansion or termination action has been finalized, leaving existing protections in place for current recipients. However, ongoing litigation at the federal level leaves the program’s long-term status unresolved and continues to cause uncertainty for DACA recipients who are students, interns, and early-career professionals.

Congress

State of the Union

President Trump delivered the State of the Union address on February 24. No new higher education proposals or changes to federal student aid programs were announced. On the employment side, the president emphasized broader economic and workforce themes, including domestic job growth, support for skilled trades, expansion of apprenticeship opportunities, and strengthening American manufacturing. Immigration enforcement was also a major theme, framed as protecting American workers and stabilizing wages. The president’s remarks reinforced the administration’s ongoing focus on workforce alignment, domestic labor protections, and scrutiny of employment-based immigration programs.

Budget Reconciliation 2.0

Senate Majority Leader John Thune indicated that Senate Republican leadership is considering the possibility of advancing a second budget reconciliation package, though no formal proposal has been introduced. Thune confirmed that relevant committees have been encouraged to develop ideas that could be included in a potential “recon 2.0” bill.

Republicans previously used the reconciliation process to enact the One Big Beautiful Bill Act. A second bill could include additional tax cuts. The Trump administration has confirmed that discussions are ongoing. Republicans, however, will face significant procedural and political hurdles in passing a second budget bill. In the Senate, Republicans can only afford to lose a small number of votes to pass legislation through reconciliation, which allows passage with a simple majority. That margin is even narrower in the House.

Hearings/Markups

• House Education and Workforce Committee

  On February 24, the House Education and Workforce Subcommittee on Workforce Protections held a hearing to examine approaches to expanding access to paid family and medical leave. Members discussed gaps in the current federal framework, noting that the Family and Medical Leave Act provides unpaid leave but does not guarantee paid benefits.

  Republicans emphasized voluntary, employer-driven solutions and incentives rather than federal mandates, while some witnesses and Democrats highlighted the need for broader federal standards to ensure consistent coverage. Testimony addressed workforce retention, caregiving demands, and administrative challenges for employers operating across multiple states with varying leave laws. The hearing underscored a continued congressional interest in paid leave policy.

• Senate HELP Committee

  On February 26, the Senate Health, Education, Labor, and Pensions Committee marked up and advanced the Understanding the True Cost of College Act of 2025. The legislation directs the Department of Education to establish clear, consistent terminology and a standard format for financial aid offers, while preserving some flexibility for institutions in how the information is delivered. The bill now moves forward for potential consideration by the full Senate. If enacted, institutions participating in federal student aid programs would need to align their financial aid communications with the new federal requirements.

• Department of Education Dismantling

  During the Senate HELP Committee markup, Democrats offered an amendment that would have blocked the Department of Education from transferring responsibilities to other federal agencies without explicit congressional approval. The amendment was not adopted. In response to the discussion, Chairman Cassidy stated that he is working to schedule a hearing with Education Secretary McMahon to examine the administration’s recent interagency agreements and the scope of the department’s authority.

February 24, 2026

Department of Education

On February 18, 2026, a federal court formally closed the case challenging the Department of Education’s February 2025 Dear Colleague Letter on DEI. The case was dismissed after the department agreed not to rely on or enforce the letter. The court did not, however, issue a ruling affirming DEI programs.

The immediate takeaway is that the specific federal funding threat tied to that letter is no longer in effect. Institutions are no longer obligated to modify policies or practices in response to the letter, and the risk of investigations or funding penalties based solely on that directive has been removed. It is important to note, however, that President Trump’s executive orders concerning DEI remain in place along with existing federal civil rights laws. Agencies can still investigate alleged discrimination under Title VI, Title VII, and related laws, and institutions that qualify as federal contractors remain subject to those applicable executive orders as well.

The bottom line is that the recent court action removes enforcement tied to the 2025 Dear Colleague Letter, but it does not eliminate broader compliance obligations. The administration’s priorities concerning diversity, equity, and inclusion have not changed, and the broader federal policy conversation around DEI will continue.

Department of Labor

On February 13, 2026, the U.S. Department of Labor issued an AI framework, which outlined five foundational content areas and seven delivery principles for AI literacy.

February 17, 2026

Department of Education

On Friday, February 13, the Department of Education issued a proposed interpretive rule to clarify that the use of “regional” by accrediting agencies is inappropriate and that the department only recognizes national and institutional accreditors.

Comments on the proposed rule can be submitted on or before March 19 to the Federal eRulemaking Portal at www.regulations.gov.

February 2, 2026

FY2026 Appropriations Update: Partial Government Shutdown

President Trump and Senate Democrats reached a tentative agreement on January 29 to avert a partial government shutdown, but the House was not scheduled to return until Monday, February 2. Under the current agreement, the Department of Homeland Security would receive a two-week funding extension while negotiations continue over immigration enforcement and oversight provisions, while the remaining five appropriations bills, including Labor-HHS-Education, would receive full funding for fiscal 2026. ( Note: The partial government shutdown ended Tuesday, February 3, with the signing of the appropriations bills.)

Reimagining and Improving Student Education (RISE) Department of Education Proposed Rule

The Department of Education released its proposed rule following up on the RISE Committee's work and consensus agreement on January 30. The rule outlines how the department would define and set loan caps for professional and graduate programs and implement two new repayment plans. This is the opportunity to provide feedback on how a professional program is defined for purposes of the new loan thresholds. Comments are due on or before March 2, 2026. 

State H-1B Changes

At the end of January, Texas Governor Greg Abbott ordered state agencies and public universities to immediately freeze new H-1B visa petitions. Under the directive, state agencies led by gubernatorial appointees and public higher education institutions are barred from sponsoring new H-1B workers without approval from the Texas Workforce Commission through the end of state’s 2027 legislative session (May 31). By late March, agencies also must submit detailed reports identifying how many H-1B workers they employ, the job categories, countries of origin, visa expiration dates, and any evidence showing efforts to recruit Texas candidates. 

Florida Governor Ron DeSantis initiated a similar pause that would go through January 5, 2027, which was moved forward  move forward and is subject to a 14-day public comment period. The proposal will come back to the full board for a vote after the public comment period ends.

January 12, 2026

Department of Education

Negotiated Rulemaking on Accountability Measures

On January 9, negotiators reached an agreement for accountability measures related to Title IV (Pell Grant) funding.

Under the newly negotiated rule, an institution must demonstrate to the Department of Education that at least half of the institution’s Title IV funding recipients and half of the institution’s total Title IV funds are not from low-earning programs. This would be handled in stages:

• In the first year, if the program fails an earnings metric, the institution will be required to warn students that their program’s Title IV funding is at risk.
• If the program isn’t compliant in the second year, the program could lose direct student loan eligibility. In addition, Education will test to determine if half of the institution’s students are enrolled in low-earning programs and if half of its Title IV funds stem from those programs.
• The test is repeated in the third year. If the institution is still not in compliance, the institution’s low-earning programs will lose their Title IV eligibility.

Get additional details on the negotiated rulemaking here.

November 18, 2025

Department of Education

On November 18, the Trump administration announced plans to transfer many of the Department of Education’s programs to other agencies, including the Department of Labor, Department of State, Department of Health & Human Services, and Department of the Interior.

October 21, 2025

Department of Education

Compact for Academic Excellence

On October 1, the Department of Education sent letters to nine universities proposing a Compact for Academic Excellence. Recipients of the letter included Vanderbilt, Dartmouth, University of Pennsylvania, University of Southern California, MIT, University of Texas at Austin, University of Arizona, Brown University, and University of Virginia. On October 12, President Trump expanded the invite to all colleges and universities.

The compact would offer preferential federal funding to those that adopt a set of administrative, admissions, and governance commitments aligned with stated federal priorities. The introduction to the document says schools are free to develop models and values other than those in the compact, “if the institution elects to forego federal benefits.”

The compact sets forth the following 10 commitments institutions would adopt:

1. Equality in admissions: Institutions would commit to banning consideration of race, gender, ethnicity, religion, sexual orientation, and related characteristics in admissions decisions, replacing those factors with objective, published criteria. They must require undergraduate applicants to take a standardized test (SAT, ACT, or equivalent), and publicly report anonymized admissions data by race, national origin, and sex.

2. Marketplace of ideas and civil discourse: Signatories must foster intellectual openness, ensuring no single ideology dominates campus debate, adopt academic freedom protections, and enforce policies preventing disruption, heckler’s vetoes, or institutional suppression of speech. Universities must also publicly assess the ideological diversity of faculty, students, and staff.

3. Nondiscrimination in faculty and administrative hiring: Hiring, promotion, and reappointment decisions for faculty, administrative, and support staff must be based on objective, measurable criteria. Factors such as race, ethnicity, national origin, sex, disability, or religion must not be considered, consistent with Title VII and other federal laws.

4. Institutional neutrality: Universities must require that institutional leadership abstain from speaking or acting on societal or political issues (except where the institution has direct expertise) and ensure departments and units do not issue politically or ideologically driven statements unless directly tied to their academic mission.

5. Student learning: Institutions must uphold grade integrity, ensuring grades reflect rigorous mastery rather than nonacademic factors. They must adopt transparency measures, such as publishing multiyear grade distributions, contextualizing unusual trends, and comparing outcomes with peer institutions.

6. Student equality: Students must be treated individually, not based on immutable traits. Institutions may maintain sex-based privacy or fairness measures, but decisions about access to resources, programming, or discipline must not favor or disfavor based on race, national origin, religion, sex, or identity. Clear, consistent disciplinary standards and due process are also required.

7. Financial responsibility: Institutions must commit to controlling costs, reducing administrative bloat, and increasing transparency in financial operations. They agree to freeze effective tuition levels for U.S. students for five years, publish program-level earnings data, refund tuition for students who drop out within the first term, and deploy endowments for public benefit. Institutions with large endowments (more than $2 million per undergraduate student) should not charge tuition for students in “hard science” programs. They must also accept and apply military transcripts fully.

8. Foreign entanglements: Universities must comply with anti-money laundering, KYC, and foreign gift disclosure rules. They must limit foreign student enrollment (no more than 15% of undergraduates, and no more than 5% from a single country). Foreign students must be selected based on talent, vetted for alignment with U.S. values, and required to take U.S. civics instruction. Institutions must fully disclose foreign funding and ensure that funding does not influence admissions, hiring, or curricula.

9. Exceptions: Religious institutions may maintain preferences based on religious affiliation or belief; single-sex institutions may maintain sex-based preferences; and institutions may prefer U.S. citizens in admissions. The compact does not override relevant exemptions under Title VII or ministerial exemptions recognized by law.

10. Enforcement: University leadership (president, provost, head of admissions) must annually certify compliance. The institution must conduct or commission independent, anonymous surveys of faculty, staff, and students assessing performance against the compact and publish results. The Department of Justice may review compliance. Violations can result in suspension of compact benefits for at least one year (two years for repeat violations), repayment of federal funds issued during violation years, and returning private contributions if requested.

White House officials have characterized the compact as voluntary and framed around incentives rather than penalties. Institutions that sign may receive “multiple positive benefits,” including increased overhead payments and expanded federal partnerships.

As of October 20, MIT, Brown University, the University of Pennsylvania, the University of Southern California, the University of Virginia, and Dartmouth College have all rejected the offer. The University of Arizona also declined but offered to keep negotiating with the federal government on higher education reforms. Vanderbilt University provided feedback without officially saying yes or no. The University of Texas at Austin has not yet responded publicly.

Negotiated Rulemaking

The Department of Education has launched two negotiated rulemaking committees to implement provisions of the One Big Beautiful Bill Act.

The Reimagining and Improving Student Education (RISE) Committee: The RISE Committee held its first session at the end of September. Discussion focused on how to define “professional degree” programs, with the Department of Education proposing a narrow list of law, medicine, and pharmacy while stakeholders urged broader inclusion of other graduate and joint degree programs. Disagreements emerged over whether 50% or 75% of credits should count toward a professional credential in dual-degree programs. The committee also reviewed new loan limits, and the department previewed a new Repayment Assistance Plan to replace Grad PLUS, though ongoing litigation affecting current income-driven repayment plans such as SAVE and REPAYE adds significant legal uncertainty.

The Accountability in Higher Education and Access Through Demand-Driven Workforce Pell (AHEAD) Committee:  The AHEAD Committee will focus on revisiting gainful employment  and financial value transparency rules, which became effective July 1, 2024, and determining whether gainful employment-style accountability should be applied across all higher education programs. The committee will also design the new Workforce Pell Grant program, including eligibility for short-term training, state approval processes, and restrictions for students with higher Student Aid Index scores or full grant coverage.

Both committees face a tight timeline, with final regulations required by November 1, 2026, to take effect July 1, 2027.

TRIO Program Update

The Department of Education froze about $660 million in TRIO grants earlier this fall, leaving many programs without their expected continuation awards and forcing some to cut staff or suspend services.

In response to pressure, the Department promised to release the funds by September 30, and while many institutions did receive awards by that deadline, more than 100 TRIO grants were ultimately canceled, affecting roughly 40,000 students.

Looking ahead, the administration’s FY 2026 budget proposal proposed eliminating the program entirely. The House and Senate both level-funded the program in their bills.

Cuts to Grant Programs at Minority Serving Institutions

Minority-serving institutions (MSIs) have been directly impacted by recent federal actions that threaten funding and long-term program stability. In September, the Department of Education announced the cancellation of $350 million in discretionary grants to MSIs, arguing that programs based on racially defined eligibility criteria are unconstitutional. Although $132 million in mandatory MSI funding appropriated by Congress remains in place, the department has signaled that it is reviewing the legality of that stream.

Hispanic-serving institutions (HSIs) were hit hardest, losing more than $250 million in support. The HSI program itself is under direct legal challenge: Tennessee and Students for Fair Admissions have sued the Department of Education, claiming that the requirement for colleges to have at least 25% Hispanic enrollment to qualify for HSI status is unconstitutional. The Department of Justice has declined to defend the program in court.

Discretionary funding has already stopped, mandatory funding is under review, and the long-term future of both HSI and other MSI programs rests on the outcome of litigation and potential congressional action.

Senate HELP Committee Request for Information

The Senate HELP Committee is seeking public input on how to improve transparency in college costs, value, and financial aid outcomes. The document highlights four core policy goals:

• Price transparency, by making net cost estimates clearer and more comparable across institutions;
• Value transparency, by strengthening data on post-college earnings and return on investment;
• Transparent financial aid offers, by ensuring aid letters clearly delineate net cost, grant vs. loan, and non-tuition expenses; and
• Informed borrowers, by improving communication about total borrowing, repayment options, and expected income thresholds.
  

The deadline for submitting feedback is October 24, 2025.

By issuing the request, HELP is signaling that price, value, and accountability reforms are likely to emerge in forthcoming legislation or regulatory action and may intersect with upcoming rulemaking under the AHEAD Committee on financial value and gainful employment frameworks.

Gainful Employment

On October 2, a federal judge in the Northern District of Texas upheld the Biden-era gainful employment rule, which requires for-profit and nondegree programs to demonstrate that graduates can afford their loan payments and earn more than a typical high school graduate. Programs that fail in two consecutive years risk losing access to federal aid. It also includes new reporting obligations for all colleges under the financial value transparency framework.

Congress recently passed legislation requiring most college programs to meet similar earnings tests, and the Department of Education is preparing for a rulemaking process to implement those requirements.

Immigration/H-1B Update

On October 20, U.S. Citizenship and Immigration Services published H-1B guidance and H-1B visa portal to pay the new $100k fee. The guidance clarifies that the fee would not apply to any petition “that is requesting an amendment, change of status, or extension of stay for an alien inside the United States where the alien is granted such amendment, change, or extension so international student graduates would not be subject to the $100k fee.”

Congressional Oversight on H-1B Hiring Practices

Senate Judiciary Committee Chair Chuck Grassley (R-IA) and Ranking Member Dick Durbin (D-IL) are scrutinizing major technology, finance, and retail companies for allegedly favoring H-1B visa holders over American workers following significant layoffs. In letters to Amazon, Apple, Google, Meta, Microsoft, JPMorgan Chase, Deloitte, Cognizant, Tata Consultancy Services, and Walmart, the senators noted that firms filed thousands of H-1B petitions in fiscal year 2025 while laying off large numbers of U.S. employees.

The senators highlighted the disparity between layoffs and visa hiring, citing Federal Reserve data that unemployment among recent STEM graduates is now “well above” the national average. They also requested information on recruitment practices and salary or benefit differences between U.S. employees and foreign workers.

Grassley and Durbin have been trying to reform the H-1B program for many years and are co-authors of the H-1B and L-1 Visa Reform Act. This inquiry signals renewed bipartisan interest in tightening oversight of employment-based visa programs at a time of heightened scrutiny over tech-sector layoffs and broader workforce displacement.

Employers should expect continued congressional and public attention to H-1B hiring, particularly when accompanied by U.S. workforce reductions. 

October 7, 2025

Government Shutdown

The federal government officially shut down on October 1, and federal agencies have now begun implementing their contingency plans. While certain core functions will continue, agencies, including the Department of Labor and Department of Education, will be operating with significantly reduced staff and resources.

Department of Labor: The Department of Labor will furlough more than 75% of its workforce, retaining only those whose functions are considered legally required or funded outside of annual appropriations. A number of the department’s functions will be affected, including:

• The Bureau of Labor Statistics  will not release its monthly jobs report and other scheduled economic indicators. If the shutdown continues, survey collection and data processing may also be delayed, affecting the timeliness and accuracy of labor market information relied upon by policymakers, employers, and financial markets.
• Workplace protections will be narrowed considerably, as the Occupational Safety and Health Administration will suspend routine inspections, training, and outreach.
• Job Corps centers will maintain only limited oversight to safeguard students and federal property. Broader workforce training, enforcement efforts, and new grantmaking initiatives will pause.
• Other labor-related agencies will also be affected. For example, the National Labor Relations Board will furlough nearly all of its employees; similarly, the Equal Employment Opportunity Commission will suspend investigations into discrimination complaints, though it will continue to accept new charges.

Department of Education: The Department of Education will furlough approximately 95% of its employees. Only those working on federal student aid and those required to maintain essential operations will continue. If the shutdown lasts beyond a week, the agency anticipates recalling some staff, though more than 87% would remain furloughed.

• Core federal student aid functions will continue during the shutdown. Pell Grants and Direct Student Loans, which are supported by mandatory funding, will continue to be disbursed, and borrowers must still make loan payments. The Free Application for Federal Student Aid (FAFSA) will remain available, and loan servicing operations will continue through contracted providers.
• The Office of Federal Student Aid will furlough most of its employees, leaving only a limited group to oversee statutory deadlines and advance rulemaking related to new repayment plans and borrowing limits required under recent legislation. These activities are proceeding to ensure that deadlines are met ahead of the July 2026 implementation date.
• The Office for Civil Rights will suspend its investigations into discrimination complaints at schools and universities.
• Effects on federal funding for institutions and higher education: The Department of Education will suspend new grantmaking activities. For higher education institutions, the immediate impact is less about the flow of federal dollars and more about operational uncertainty. Communications with department staff will be delayed, and compliance, civil rights, and grant-related guidance may be slowed, creating potential challenges for institutional planning and program administration. A prolonged shutdown could hinder institutional operations, compliance, and revenue stability.

Research implications: Beyond the Department of Education, the shutdown will also disrupt research activities supported by other federal agencies.

• The National Institutes of Health will furlough roughly 75% of its staff, halting grant reviews, travel, and basic research.
• The National Science Foundation will suspend new grant awards, but will continue to accept applications.

September 29, 2025

Immigration

The Trump administration recently released significant immigration policy changes that will impact institutions of higher education and employers relying on high-skilled foreign talent.

H-1B Fee Increase: On September 19, President Trump issued Proclamation 10973 establishing a $100,000 entry fee for new H-1B applicants located abroad.

The proclamation took effect on September 21. The fee applies only to new entrants in the upcoming H-1B lottery cycle and does not affect renewals or current visa holders. Employers must provide proof of payment to DHS and the Department of State before approval will be granted.

Please note: The $100,000 fee does not guarantee an H-1B—only entrance to the lottery. It is not clear what happens to the fees of those whose petitions don’t secure an H-1B.

The proclamation also directs the Department of Labor to revise prevailing wage levels and DHS to initiate rulemaking that further prioritizes higher-wage applications. Supporters argue that this policy will discourage misuse of the program and ensure visas are reserved for the most critical and valuable workers, while critics maintain that the fee is prohibitively high for smaller employers and lacks clear statutory authorization.

Legal challenges are expected in the weeks ahead.

H-1B Lottery Changes: On September 24, the Department of Homeland Security (DHS) published a proposed rule to modify the H-1B visa lottery system by moving away from a random selection process toward one weighted by Department of Labor wage levels. Under the proposal, applicants at the highest wage tier would receive four entries into the lottery, while those at the lowest tier would receive one.

DHS has explained that the change is intended to ensure visas are allocated to “higher skilled and higher paid” workers.

The agency is now accepting public comments. The deadline for submission is October 24 to weigh in on policy changes and November 24 to provide feedback on the new reporting requirements. Implementation is unlikely before late 2025 or 2026.

While some stakeholders see this as a way to better align the program with congressional intent and protect U.S. workers, universities and employers have already raised concerns that it will disadvantage their ability to recruit researchers, medical residents, postdoctoral scholars, and employees whose salaries are often below those in the technology and financial sectors.

Gold Card Program: Additionally, the administration issued Executive Order 14351 creating the “Gold Card” program, a new immigration pathway overseen by the Department of Commerce. The program permits individuals who make a $1 million contribution to Commerce, or corporations that contribute $2 million on behalf of an employee, to secure expedited eligibility for permanent residence. These contributions will be treated as evidence of “extraordinary ability” or “national interest” under employment-based immigration categories. Corporations will also be able to transfer Gold Card sponsorship among employees, subject to review by DHS. Administrative and maintenance fees for the program will be established in the coming months. Proponents have praised the initiative as a way to attract investment and entrepreneurship to the United States, while opponents have voiced concerns about creating a system that prioritizes wealth over other measures of merit.

Implications for Higher Education Institutions and Employers: Taken together, these actions reflect a significant shift in U.S. immigration policy.

The administration is introducing new requirements in the H-1B program that may limit access for smaller employers, universities, and nonprofit institutions, while expanding pathways for high-net-worth individuals and corporations through financial contributions. Supporters view these steps as an effort to strengthen the integrity of the system, align visas with labor market needs, and protect American workers. Critics caution that they may disrupt the international student and scholar pipeline, reduce opportunities for graduates to remain in the U.S. workforce, and create inequities between employers with differing resources. For NACE members, there will be heightened uncertainty in workforce planning and talent recruitment as litigation, regulatory processes, and congressional oversight play out.

NACE will continue to monitor and provide updates on public policy issues affecting higher education and employment.

OMB FY2027 research & development priority areas

On September 23, the Trump administration released the FY2027 memorandum on research and development budget priorities.

The following five central priorities will guide future agency investments:

• Sustaining American leadership in critical and emerging technologies, including artificial intelligence, quantum science, semiconductors, advanced communications, and advanced manufacturing;
• Achieving energy dominance through investment in nuclear, fossil, hydropower, and critical mineral development, while expanding research in the Arctic and deep ocean;
• Advancing national security with investments in hypersonic weapon capabilities, autonomous systems, resilient space systems, missile defense, and post-quantum cybersecurity;
• Strengthening health and biotechnology with a focus on chronic disease, biosafety and biosecurity, agricultural resilience, and domestic biomanufacturing; and
• Ensuring U.S. space dominance, including preparations for human missions to the moon and Mars in partnership with the commercial sector.

To support these priorities, the memorandum identifies several crosscutting actions, including the implementation of Gold Standard Science to ensure rigor and reproducibility, investments in world-class research infrastructure to provide broad access to specialized facilities, and the revitalization of the public-private science and technology ecosystem to accelerate innovation and improve technology transfer.

Emphasis is also placed on building the science and technology workforce of the future by expanding access to high-quality STEM education and lifelong training programs that prepare Americans for careers in fast-evolving fields such as AI, quantum, and advanced manufacturing.

July 28, 2025

Department of Education

Office of Federal Student Aid - Hearing and Negotiated Rulemaking: The Department of Education’s Office of Federal Student Aid (FSA) provided preliminary guidance to higher education institutions and FSA’s partners on immediate changes effective upon the enactment of the One Big Beautiful Bill Act (OBBBA). This includes changes to income-based repayment plans, repayment options for parents, loan limits for part-time students, and Biden-era borrower defense to repayment and closed school discharge regulations.

The full guidance can be read here. FSA will provide further guidance on select issues included in OBBBA throughout the year. 

On July 25, 2025, the Department of Education published a notice in the Federal Register announcing a virtual hearing and the establishment of two new negotiated rulemaking committees to implement provisions from the OBBBA.

A virtual public hearing will be held on August 7. Stakeholders will have the opportunity to provide advice and recommendations to Education on the implementation of the changes to Title IV and other administration priorities. These priorities include how best to actualize regulatory changes to the federal student loan and Pell Grants programs. To present oral comments, register by July 28. In addition, Education will accept written comments through August 25, 2025. These comments must be submitted through the federal rulemaking portal at www.regulations.gov/.

The Department of Education will create two new committees: Reimagining and Improving Student Education (RISE) Committee and Accountability in Higher Education and Access Through Demand-driven Workforce Pell (AHEAD) Committee. The RISE Committee will hold five-day sessions in September and November. The AHEAD Committee will hold five-day sessions in December and January. 

Nominations for committee members to serve on the RISE Committee should be sent to [email protected] by August 25. Please be sure to include the constituency group and the RISE Committee in your nomination. Constituency groups include public, private, and for-profit universities.

Nominations for committee members to serve on the AHEAD Committee should be submitted to [email protected] by August 25. Be sure to include the constituency group and the AHEAD Committee in your nomination. Constituency groups include students currently enrolled and receiving Title IV assistance, students who are veterans, U.S. military service members, employers, and groups representing the business community (including small, medium, and large businesses), public universities, private universities, and for-profit universities.

Department of Education Employee Terminations/Workforce Training Realignment: On July 14, 2025, the U.S. Supreme Court lifted a lower court’s preliminary injunction, allowing the Department of Education to resume employee terminations and proceed with the transfer of core departmental functions to other agencies. The ruling, while not a final resolution of the underlying legal dispute, clears the way for continued implementation of the Trump administration’s restructuring agenda. In the wake of the decision, Secretary of Education Linda McMahon confirmed that the Department would move forward with workforce reductions as part of a broader effort to streamline operations and improve internal accountability.

This action directly supports a major structural realignment involving the Department of Labor, which recently announced it will assume oversight of the Department of Education’s workforce training programs. The shift is a central component of President Trump’s Make America Skilled Again (MASA) initiative, an effort to consolidate federal training grants under a single authority to reduce fragmentation and align workforce development more directly with labor market needs. Under this new structure, the Department of Labor will manage grants, cooperative agreements, and contracts previously administered by the Department of Education, while also ensuring compliance with the Workforce Innovation and Opportunity Act and the Strengthening Career and Technical Education for the 21st Century Act.

Both agencies have indicated that guidance will be forthcoming to help states and stakeholders navigate the transition.

Artificial Intelligence

On July 26, 2025, the White House released America’s AI Action Plan, a comprehensive federal strategy designed to position the United States as the global leader in artificial intelligence. The plan identifies more than 90 federal policy actions across three pillars: accelerating innovation, building U.S. infrastructure, and leading in international diplomacy and security. The federal government will seek input from businesses and the public on rules that slow AI adoption and may limit funding to states with regulations that make it harder to use AI effectively.

Several provisions directly affect higher education, workforce development, early talent pipelines, and employer-education partnerships.

The plan reinforces the importance of the American worker in the AI economy and proposes the integration of AI skills training into federally supported education and workforce funding streams. It calls on the Departments of Labor and Education, the National Science Foundation, and the Department of Commerce to prioritize AI literacy through:

• Career and technical education (CTE) programs, apprenticeships, and workforce retraining;
• Tax-advantaged employer reimbursement for AI-related training, using existing Section 132 guidance under the Internal Revenue Code; and
• Rapid retraining initiatives for dislocated workers in sectors undergoing AI-related transformation.

A newly proposed AI workforce research hub will monitor AI’s labor market impact and inform federal policy on job displacement, wage effects, and skills evolution. These insights could be critical in shaping institutional program design and career services strategies.

To support the infrastructure demands of AI, the plan calls for a national initiative to define priority occupations and build associated training pipelines. Specific actions include:

• Creation of national skills frameworks for roles tied to AI infrastructure,
• Expansion of registered apprenticeships and pre-apprenticeships for middle and high school students, and
• Guidance for modernizing CTE programs to align with emerging employer demand.

Several cross-cutting provisions offer strategic engagement opportunities for colleges, universities, and employer partners:

• AI centers of excellence and regulatory sandboxes: Federally supported environments for cross-sector experimentation with AI tools could be used for student projects, public-private research, and experiential learning.
• Open-Source AI access: Expanding open-weight AI models and datasets through the National Artificial Intelligence Research Resource (NAIRR) will make advanced technologies more accessible to colleges, universities, and researchers.
• Federal talent mobility and AI hiring pathways: A proposed AI talent exchange, procurement reforms, and interagency coordination could streamline federal career pathways for students in STEM, public policy, and data science.

The AI Action Plan is a call to action for higher education and employers to align their talent strategies with a fast-emerging AI economy. NACE members are uniquely positioned to lead in this national workforce transition. We will continue to monitor this to ensure implementation and policy alignment supports students, institutions, and employers alike.

Immigration

On July 24, 2025, Congressman Tom Tiffany (R-WI) introduced the Colleges for the American People Act of 2025, which would eliminate the long-standing exemption that allows higher education institutions to hire H-1B visa holders outside the program’s annual cap.

Currently, the H-1B visa is capped at 65,000 annually, with an additional 20,000 set aside for applicants holding advanced degrees. Colleges and universities are exempt from this limit under the Immigration and Nationality Act.

The bill would repeal the carveout, requiring foreign nationals seeking employment in higher education to compete through the standard H-1B lottery process. The bill would not apply retroactively, allowing current visa holders at universities to apply for their extension without counting against the limit.

July 9, 2025

Higher Ed Policy

President Trump signed the One Big Beautiful Bill Act (OBBBA) on July 4. A number of the provisions in the bill directly impact the higher ed community, including:

• Caps to some student loans—such as limiting ParentPLUS loans to $65,000 per student—and elimination of the GradPlus Program. The legislation also cuts off colleges from most federal student loan programs if their graduates do not earn more than an adult with only a high school diploma. Student loan changes are set to go into effect in July 2026. 
• Expansion of the Pell Grant to short-term job-training programs with accredited providers.
• Increases in tax rates for private colleges with endowments. The current rate is a flat 1.4%. Under the OBBBA, rates reflect the size of the endowment and can rise to as much as 8%.

June 5, 2025

Immigration/International Students

On June 4, 2025, President Trump signed two executive orders impacting immigration and international students.

• Citing national security and public safety threats, President Trump’s executive order fully bans people from Afghanistan, Burma, Chad, Republic of the Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Somalia, Sudan and Yemen from entering the United States. The executive order also partially restricts and limits U.S. entry for nationals of Burundi, Cuba, Laos, Sierra Leone, Togo, Turkmenistan, and Venezuela. The order includes exceptions for lawful permanent residents, existing visa holders, certain visa categories, and individuals whose entry serves U.S. national interests.

• A separate executive order suspends the entry into the United States of any new Harvard University student as a nonimmigrant under F, M, or J visas. The executive order also  directs the Secretary of State to consider revoking existing F, M, or J visas for current Harvard students who meet the Proclamation’s criteria. The executive order does not apply to students attending other U.S. universities through the Student Exchange Visa Program (SEVP) and exempts students whose entry is deemed in the national interest.

May 29, 2025

Office of Personnel Management

On May 29, 2025, the Office of Personnel Management (OPM) issued a new merit hiring plan to guide the federal government’s approach to civil service hiring. The plan, detailed in a memo to heads and acting heads of federal departments and agencies, addresses the goals set out in Executive Order 14170, Reforming the Federal Hiring Process and Restoring Merit to Government Service.

Selected Highlights of the Plan

The plan cites a number of directives, strategies, and tactics, including the following:

Americans must be hired, recruited, and promoted in federal jobs without regard to race, sex, color, religion, or national origin. To accomplish this the memo instructs federal agencies to:

• Not use statistics on race, sex, ethnicity or national origin, or the broader concept of “underrepresentation” of certain groups, in any hiring, recruiting, retention or promotion decisions, or in the design or implementation of any technical or alternative assessments;
• Cease disseminating information regarding the composition of the agency’s workforce based on race, sex, color, religion, or national origin;
• End all special emphasis programs and other agency initiatives in the areas of hiring, recruiting, interviewing, training, professional development, internships, fellowships, promotion, or retention that discriminate based on race, sex, color, religion, or national origin; and
• Take prompt and appropriate disciplinary action against any hiring manager or other agency employee who engages in the unlawful race preferential discrimination described in the plan.

OPM will develop a talent team whose core mission is to drive the planning, execution, and ongoing monitoring of the plan across all agencies. The talent team will used skills-based hiring practices. The skills-based hiring reforms include:

• Expanding use of skills-based hiring over traditional credentialism;
• Creating shared certification pools across agencies;
• Revamping position descriptions so that they delineate eligibility and qualification criteria and eliminate any requirements that are not relevant, such as degree requirements; and
• Implementing the proposed OPM Final Rule Reinvigorating Merit-Based Hiring Through Candidate Ranking in the Competitive and Excepted Service (Rule of Many) using validated, skills-based assessments and rigorous candidate ranking.

The talent team will remove self-assessments of qualifications.

• Instead, the hiring processes must include at least one technical or alternative assessment. Agencies are strongly encouraged to use at least two assessments throughout the hiring process. Agencies are strongly encouraged to use a USA Hire assessment.
• The assessments agencies will be using for each position must be included in the job posting.

The talent team will launch a government-wide recruitment effort to attract talent to federal service. The memo highlights three areas—early career talent, STEM, and veterans—as examples.

• OPM’s talent team will partner with agency talent teams to build and maintain a pipeline of students, recent graduates, and other early career talent. Strategies for achieving this include:
• Targeting recruitment to state and land-grant universities, religious colleges and universities; community colleges; high schools; trade and technical schools; homeschooling groups; faith-based groups; American Legion; 4-H youth programs; and the military, veterans, and law enforcement communities.
• Setting early career hiring targets and tracking annual early career hires.
• Using the Pathways Intern Talent Program and the Recent Graduates Program, to identify interns and recent graduates who meet program requirements for conversion to permanent or term employment in the civil service but who are not able to be converted at their employing agency, with other federal agencies.
• Identifying occupations that are strong prospects for federal apprenticeship programs and partnering with OPM to implement.
• Some of the strategies OPM’s talent team will use to improve recruitment of candidates for STEM roles will include:
• Facilitating regular meetings with agency talent teams; the federal Chief Information Officer; the White House Office of Science & Technology Policy; cross-agency councils, such as the Chief Information Officer Council and Chief Data Officer Council; and functional communities to drive STEM hiring across the federal government.
• Using pooled hiring and shared certificates when filling STEM positions.
• Updating, modernizing, and centralizing STEM position descriptions and job titles across the federal government, including the use of functional job titles.
• Some of the strategies OPM’s talent team will use to improve recruitment of qualified veterans will include:
• Owning a strategic government-wide veteran recruiting roadmap, defining target occupations with agency leadership, and partnering with agency veterans’ program leaders to find opportunities to match the talents of individuals exiting the military with skills in demand at agencies.
• Using non-competitive special hiring authorities, including the Veterans Recruitment Appointment Authority, the hiring authority for 30% or more disabled veterans, the Veterans Employment Opportunities Act, the Schedule A authority for individuals with certain disabilities, and others.

Expand the use of standardized position descriptions, candidate inventories, talent pools, and shared certificates.

Reform the job application process.

• All job announcements will include the skills sought.
• Applicants for all federal job vacancy announcements graded at GS-05 or above will need to respond to four essay questions and certify that they did not use AI to respond. The essay questions include:
• How has your commitment to the Constitution and the founding principles of the United States inspired you to pursue this role within the Federal government? Provide a concrete example from professional, academic, or personal experience.
• In this role, how would you use your skills and experience to improve government efficiency and effectiveness? Provide specific examples where you improved processes, reduced costs, or improved outcomes.
• How would you help advance the President’s Executive Orders and policy priorities in this role? Identify one or two relevant Executive Orders or policy initiatives that are significant to you, and explain how you would help implement them if hired.
• How has a strong work ethic contributed to your professional, academic, or personal achievements? Provide one or two specific examples, and explain how those qualities would enable you to serve effectively in this position.
• Resumes will be limited to two pages; the present long-form federal resume will be prohibited.

Shorten government-wide time-to-hire recruitment cycle to less than 80 days.

May 5, 2025

Department of Education

The Trump administration is proposing a 15% reduction in the Department of Education’s budget.  Among other areas, the proposed cuts would impact TRIO and GEAR UP programs, the Office for Civil Rights and funds identified as supporting DEI, and dollars targeted to improving postsecondary education and graduate assistance. Although the skinny budget also proposes cuts to the federal work study program, it also proposes providing wage subsidies and a greater focus on career-oriented opportunities. Apprenticeships and the short-term Pell may benefit from the proposed budget.

Department of Labor

The Trump administration is proposing to cut the Department of Labor’s (DOL) budget by more than one-third (from $13.3 billion to $8.6 billion). Overall, $1.6 billion of the cuts would be to DOL grants. The remaining funds would be rolled into what the administration is calling “Make America Skilled Again” grants.

April 25, 2025

Court Rulings

On April 24, 2025, in separate rulings, federal judges in New Hampshire and Maryland issued a preliminary injunction blocking the Department of Education's enforcement of its February “Dear Colleague” letter. The letter notified schools that the department would withhold funds from those participating in diversity, equity, and inclusion practices; the judges ruled that this would likely to be found to violate the First Amendment and procedural standards. Judge Dabney Friedrich noted that the letter failed to “delineate between a lawful DEI practice and an unlawful one.” 

April 23, 2025

Executive Orders

On April 23, 2025, President Trump signed a number of executive orders directed at education and workforce.

• Reforming Accreditation to Strengthen Higher Education calls for the attorney general and the secretary of education to suspend or terminate an accreditor’s federal recognition in order to hold it accountable if it violates federal civil rights law.  The order also directs cabinet secretaries to investigate the American Bar Association, which accredits law schools, and the Liaison Committee on Medical Education.
• The White House Initiative to Promote Excellence and Innovation at Historically Black Colleges and Universities calls for elevating “the value and impact of HBCUs as beacons of educational excellence and economic opportunity.”  The order also establishes the White House Initiative on Historically Black Colleges and Universities, housed in the Executive Office of the President.
• Preparing Americans for High-Paying, Skilled Trade Jobs of the Future  calls for the secretary of labor, the secretary of commerce, and the secretary of education to work toward strengthening registered apprenticeships, modernizing workforce development programs, and investing in opportunities to upskill workers.
• Restoring Equality of Opportunity and Meritocracy calls for the elimination of the use of disparate-impact liability in federal governance. The order calls for the attorney general and the chair of the Equal Employment Opportunity Commission to assess all pending investigations, civil suits, or positions taken in ongoing matters under every federal civil rights law that rely on a theory of disparate-impact liability, and to assess and revise them based on the order.

Department of Education

On April 21, 2025, the Department of Education announced that the Office of Federal Student Aid will resume collections of defaulted student loans, beginning May 5.

Other Actions

On April 22, 2025, the American Association of Colleges & Universities released A Call for Constructive Engagement, a public statement seeking constructive engagement between the higher education community and the federal government.

On April 21, 2025, Harvard University brought suit against the Trump administration, which has frozen billions of dollars in federal funds.

March 20, 2025

Department of Education

On March 20, 2025, President Trump signed an executive order directing Secretary McMahon to dismantle the Department of Education. The department cannot be closed without the approval of Congress.

See NACE's reaction to the executive order here.

March 18, 2025

Department of Education

In a letter dated March 14, 2025, U.S. Education Acting Under Secretary James Bergeron provided additional guidance about the department’s reduction in force (RIF). Among other items, the letter noted that:

• There would be “continuity of operations for Federal Student Aid (FSA) is both a statutory and critical function of the Department. Accordingly, no employees working on core functions of the Free Application for Federal Student Aid (FAFSA®) or student loan servicing were impacted by the RIF.”
• “Employees within the Office of Postsecondary Education (OPE) and the Office of Higher Education Programs (HEP), whose divisions oversee funding for Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), Minority-Serving Institutions (MSIs), community colleges, TRIO programs, and Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP), were not impacted by the RIF. Funds for these programs will continue to flow normally, and program functions will not be disrupted for current grantees.”
• The “critical functions for the Office of Career, Technical, and Adult Education (OCTAE) are not impacted by these reductions. Employees in the Division of Academic and Technical Education (DATE), which administers career and technical education under the Carl D. Perkins Career and Technical Education Act, were not affected by the staffing changes.”

Also on March 14, 2025, the U.S. Department of Education’s Office for Civil Rights (OCR) opened investigations into 45 universities under Title VI, following OCR’s February 14 Dear Colleague Letter (DCL). OCR is also investigating six universities for allegedly awarding impermissible race-based scholarships and one university for allegedly administering a program that segregates students on the basis of race.

March 11, 2025

Department of Labor

Linda DeRemer was confirmed by the Senate as secretary of the Department of Labor on Monday, March 10, 2025.

Department of Education

On Tuesday, March 11, 2025, the Department of Education announced it is laying off nearly half its workforce.

On Monday, March 10, 2025, the Department of Education’s Office of Civil Rights (OCR) notified 60 universities that they are being investigated for antisemitic discrimination and harassment. (See the OCR press release here.)

March 4, 2025

Department of Education

On Monday, March 3, 2025, the Senate confirmed Linda McMahon to serve as secretary of the Department of Education.

On Saturday March 1, 2025, the U.S. Department of Education released Frequently Asked Questions (FAQ) in connection with its February 14 Dear Colleague Letter (DCL). The FAQ addresses questions related to racial preferences.

Department of Labor

Lori Chavez-DeRemer, the Labor Secretary nominee, passed out of the Senate HELP Committee on February 27, 2025. The next step is confirmation by the full Senate.

Immigration

The Trump administration is proposing replacing the existing EB-5 immigrant investor visa program with a “Gold Card” immigration visa program. The program would allow individuals to purchase cards for $5 million dollars and would include a path to citizenship. President Trump said the card could help companies hire graduates from Ivy League and other top universities. Speaking on February 26, Commerce Secretary Howard Lutnick said the Gold Card program would replace the EB-5 program in two weeks. However, as Congress has authority over immigration law, Congressional approval will be needed to replace the EB-5 program.

February 25, 2025

Court Rulings

On February 25, Judge Loren AliKhan of the U.S. District Court for the District of Columbia issued an injunction that extended the temporary halt on  the January 29 memo from the Trump administration that was  issued by the Office of Management and Budget.  That memo had called for a funding freeze on thousands of federal programs and a freeze on all governmental grants and loans.

On February 24, U.S. District Judge Deborah Boardman in Maryland blocked the Department of Education and the Office of Personnel Management from sharing sensitive information with the Department of Government Efficiency (DOGE), citing that DOGE access appears to breach federal privacy laws.

On Friday February 21, Judge Adam Abelson in Maryland ruled that several provisions of executive orders that withdrew federal funding for programs that support diversity, equity, and inclusion were unconstitutionally vague, and some violated free speech. He granted an “injunction blocking the funding withdrawal while the lawsuit plays out.” However, Judge Abelson did not block the “attorney general from preparing reports or pursuing investigations related to the anti-DEI directives.“

Department of Education

Linda McMahon, the nominee for secretary of education, testified before the Senate Health, Education, Labor, and Pensions Committee (HELP) on February 13, 2025.

At the hearing, she affirmed her support for career education and workforce training, noting that “we should also emphasize career-focused education, especially in cutting-edge STEM fields where American companies need high-skill employees. Our workers deserve more postsecondary pathways, career-aligned programs, apprenticeships, and on-the-job learning, and jobs in tech, skill trades, and healthcare for non-college degree holders.”

In her testimony, McMahon also:

• Cited the importance of skills-based programs and internships.
• Spoke about the importance of dual enrollment programs, noting that she would like to see “more dual credits in our high schools, our junior and senior years that would count towards community colleges or other institutes that would get students through college faster.”
• Expressed her desire to “see an expansion of Pell Grants” and “see short-term certificates for Pell Grants for students who aren't going on to four-year universities, who could have the opportunity to use Pell Grants for skill-based learning.”

Asked about the Trump administration’s plan to eliminate the Department of Education, she noted that the department cannot be eliminated without Congress. In response to a direct question from Senator Sanders, she said that the department “is set up by the United States Congress, and we work with Congress. It clearly cannot be shut down without it.”

She also testified that she did not want to make any specific recommendations about the programs in the department until she was confirmed and could review them in detail. She stated that she wanted to examine where certain programs and offices might fit better, noting that she looked forward to “understanding where all of these particular aspects need to fit to best serve our students. That's the goal.”

She gave some examples of how programs could be moved to other departments, indicating that students with disabilities might be better served by moving services related to the Individuals with Disabilities Education Act to Health and Human Services and that Office of Civil Rights might fit better at the Department of Justice, but stressed that she has not yet reviewed the programs.

On February 20, 2025, McMahon passed the Senate HELP Committee; her confirmation will be sent to the full Senate for a vote.

Department of Labor

On February 19, 2025, Congresswoman Lori M. Chavez-DeRemer testified before the Senate HELP Committee.

During her testimony, she cited community colleges, technical colleges, and apprenticeships as great ways to upskill and bring people into the workforce and referenced certificate programs and the need for more flexibility in grant programs to support those efforts.

She expressed an interest in ensuring that education pathways go beyond a four-year degree, saying “we must invest in educational pathways beyond the traditional four-year degree, ensuring that every American worker has access to the skills and training for long-term success.”

In regard to H-1B visas, Chavez-DeRemer committed to work with Congress to look at the caps but only after all other programs have been exhausted. She noted that “we want to make sure that we’re investing in the American worker, and they have the skills needed for the high-tech industry.” She also said that the Department of Labor’s remit is to test the market to see “where we need the guest worker program.”

A Senate HELP Committee vote on her confirmation is scheduled for Thursday, February 27.

February 18, 2025

Department of Education

On February 13, 2025, the Senate Committee on Health, Education, Labor and Pensions held nomination hearings for Linda McMahon to serve as Secretary of Education. Her approval by the full Senate is pending as of this writing; Senate is expected to vote on February 20.

On February 14, 2025, Craig Trainor, acting assistant secretary for civil rights at the Department of Education, sent a “Dear Colleague” letter to higher education institutions. The letter outlines the Trump administration’s interpretation of the Supreme Court’s 2023 decision in Students for Fair Admissions v. Harvard (SFFA), which ruled that racial preferences in admissions are illegal. The letter notes that, “Although SFFA addressed admissions decisions, the Supreme Court’s holding applies more broadly. At its core, the test is simple: If an educational institution treats a person of one race differently than it treats another person because of that person’s race, the educational institution violates the law. Federal law thus prohibits covered entities from using race in decisions pertaining to admissions, hiring, promotion, compensation, financial aid, scholarships, prizes, administrative support, discipline, housing, graduation ceremonies, and all other aspects of student, academic, and campus life.”

The letter advises all education institutions to 1) ensure that their policies and actions comply with existing civil rights law; 2) cease all efforts to circumvent prohibitions on the use of race by relying on proxies or other indirect means to accomplish such ends; and 3) cease all reliance on third-party contractors, clearinghouses, or aggregators that are being used by institutions in an effort to circumvent prohibited uses of race.

The Department of Education will begin to assess compliance of higher education institutions, and “institutions that fail to comply with federal civil rights law may, consistent with applicable law, face potential loss of federal funding.”

February 11, 2025

Department of Education

Linda McMahon, Trump’s nominee for secretary of education, is scheduled for U.S. Senate confirmation hearing for February 13, 2025. If confirmed, she will be the 13th secretary of education.

During his campaign, President Trump promised to abolish the Department of Education. Although the department cannot be abolished without congressional approval, the administration is drafting an executive order to dismantle department, according to news outlets citing confidential sources.

The executive order under discussion would remove all functions of the Department of Education that are not specifically written into law and move essential functions to other departments.

Department of Labor

Lori Chavez-DeRemer has been nominated by the Trump administration to serve as the 30th secretary of labor. Her Senate confirmation hearing is scheduled for February 19, 2025.

Federal Funding Freeze

On Monday, January 27, President Trump issued an executive order that paused federal financial assistance of agency grant, loan, and other financial assistance programs. The Office of Management and Budget (OMB) memorandum requires federal agencies to identify and review all federal financial assistance programs and supporting activities consistent with the president’s policies and requirements.

On Tuesday, January 28, a federal court blocked the funding pause from going into effect on Tuesday. This led OMB to issue a memo on Wednesday, January 29, rescinding the earlier funding-freeze memo. However, on January 29, White House Press Secretary Karoline Leavitt posted on X that the funding freeze was still in effect and that only the memo had been rescinded.

In a separate action, on Friday, January 31, U.S. District Court Chief Judge John McConnell issued a temporary restraining order barring the Trump administration from pausing funds. On February 10, 2025, Judge McConnell directed the Trump administration to immediately restore the funding after being presented with evidence that funds were still frozen.

Antisemitism

On January 29, the Trump administration issued an executive order titled “Additional Measures to Combat Antisemitism,” which builds on a 2019 executive order. In particular, the order contains a section on combatting campus antisemitism, which includes a number of directives related to post-October 7, 2023, activities.

Department of Government Efficiency (DOGE)

DOGE is reviewing the financial systems at the departments of Treasury, Education, Labor, Health and Human Services, and USAID. It is expected that DOGE will expand to other agencies.

DOGE reports that it is reviewing the programs to identify waste, fraud, and abuse. In addition, DOGE reports that, in all of its financial reviews, it is focused on weeding out diversity, equity, and inclusion programs and spending.

On January 28, DOGE offered a federal “deferred resignation” program to all federal employees. Thus far, about 3% of workers have accepted the offer. Because of a court order, workers were given until midnight February 10, 2025, to accept. There is currently a lawsuit brought by federal workers’ unions that claims that the offer is illegal because Congress has not approved the funding.

January 27, 2025

Below is information about the substance of several executive orders issued in the first few days of the administration that affect the work of career services and early talent recruiting professionals and their institutions and organizations, as well as those entering the workforce through higher ed. 

We will continue to keep you updated on regulations and laws that could impact our professions and workplaces. This will include details about the changes once more interpretation is available and we have a better understanding of the scope and compliance measures that will be necessary. 

For a full list of the executive orders, see Presidential Actions.

DEI Initiatives

President Trump rescinded several executive orders issued by President Biden.

The new administration eliminated government-wide DEI policies. Federal agencies and departments have been directed to terminate all DEI and environmental justice roles and offices. Federal funds are prohibited from being used to promote gender ideology through grants or government programming. In addition, the administration has mandated the exclusive use of the term “sex”—defined as male and female—in official documents, including passports and visas. This reverses the Biden administration’s broader definition of sex, which included gender identity, and allowed the designation of “X” as a gender on U.S. passports. 

Federal civil rights agencies, such as the Department of Labor and the Equal Employment Opportunity Commission, have been instructed to recognize only two sexes when enforcing anti-discrimination laws. Additionally, the attorney general has been directed to issue guidance clarifying that the 2020 Supreme Court decision (U.S. v. Skrmetti), which strengthened civil rights protections for transgender workers, does not apply to schools and students. This directive aligns with a recent ruling by a federal judge. 

The Office of Management and Budget (OMB) and the Office of Performance and Personnel Management have been tasked with coordinating changes to hiring practices. These changes include ending equity-focused programs and grants and terminating chief diversity officer positions that were designated during the Biden administration. President Trump also rescinded an executive order that had sought to overturn Trump’s prior ban on federal government and contractor racial bias training. 

Institutions receiving Title IV federal student aid funding will now be classified as federal subcontractors, thereby requiring them to comply with new guidance around DEI and hiring, training, and programming. Additionally, the Justice and Education departments have been given four months to prepare guidance that identifies the measures and practices required to comply with the Students for Fair Admissions vs. Harvard University decision. The guidance is expected to identify practices outside of admissions where consideration of race or ethnicity is illegal.

The administration plans to identify up to nine institutions to investigate that have endowments over $1 billion with DEI policies that they believe violate federal civil rights laws. 

The attorney general has been directed to issue guidance stating that Title IX does not require gender identity-based access to single-sex spaces; in addition, the Department of Education has been instructed to rescind its 2021 guidance that extended Title IX protections to include sexual orientation and gender identity. This policy had already been struck down by a district court in Texas; earlier this month, the Title IX regulations were struck down nationwide.

Federal agencies have been directed to compile lists of public companies, universities, and large foundations for potential investigations and civil actions related to their DEI programs. This directive includes elements specific to educational institutions by rolling back some of the protections under the Civil Rights Act of 1964.

The OMB has issued a memorandum directing all federal DEI staff to be placed on paid leave immediately and requiring the removal of all DEI-focused web pages. Federal agencies have also been instructed to develop plans to terminate DEI staff and cancel any related contracts or training programs. Federal workers have been encouraged to report any suspected renaming of DEI-related programs to the Office of Personnel Management.

Agencies were directed to compile a comprehensive list of federal DEI offices and workers as of Election Day to facilitate reduction-in-force actions against those workers. Although the order does not specify all targeted programs, it mandates a government-wide review to ensure compliance with the administration’s anti-DEI stance on all contracts and grants.

Education

President Trump announced a series of changes around educational policy, focusing on funding, governance, and regulatory oversight. The administration ended White House programs aimed at advancing educational equity and opportunities for Hispanic, Native American, and Black students. Efforts supporting tribal colleges and Hispanic-serving institutions have also been rolled back.

In a move to safeguard free speech, a new executive order prohibits federal agencies from using resources to unconstitutionally restrict free expression. Agencies have been directed to audit past actions, identify instances where free speech may have been curtailed, and correct such actions. This may involve revising contracts, partnerships, and public communication protocols. 

President Trump nominated Linda McMahon to lead the Department of Education. McMahon, who previously led the Small Business Administration and chaired the America First Policy Institute, has expressed an interest in focusing on workforce development and creating pathways for students to compete in the global economy. Her confirmation hearing is pending as of this writing; in the interim, Denise Carter, the acting leader of the department’s Federal Student Aid office, has been directed to oversee the agency. 

Immigration

President Trump also initiated a series of significant changes to immigration policy through executive orders. These actions include declaring a national emergency at the southern border and deploying armed forces, including the National Guard, to bolster border security efforts. Immigration Czar Thomas Homan announced that targeted enforcement initiatives are underway in major cities across the United States.

The administration has granted new authority to Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) officers to carry out deportations. This expansion is accompanied by a directive for the Department of Justice to take legal action against state and local officials who obstruct immigration enforcement efforts. In addition, ICE has been authorized to conduct arrests in schools, hospitals, and churches, rescinding previous guidelines that designated such locations as sensitive areas.  

President Trump issued an executive order seeking to end automatic birthright citizenship for children born in the United States to individuals who are not legally present in the country. This order has sparked legal challenges from more 20 states and cities, citing the protections of the 14th Amendment. As of this writing, the order has been stayed by a federal judge.

All visa applicants will face enhanced vetting, including F-1 and J-1 students, and the departments of State and Homeland Security have been issued a directive to ensure that applicants do not bear hostile attitudes toward U.S. institutions and do not advocate for, aid, or support designated foreign terrorists or other threats to our national security.

The attorney general and secretary of Homeland Security are required to review contracts, grants, and agreements between the federal government and nongovernmental organizations supporting or providing services, either directly or indirectly, to illegal aliens.

The administration has expressed support for legal pathways and acknowledged the need for immigrants as the U.S. economy grows, but has introduced measures that may complicate these processes. For example, the executive order on birthright citizenship encompasses children of immigrants legally residing in the United States on temporary work visas, including those in the H-1B program.

Labor Policy

The Trump administration has revived the “Schedule F” policy, making it easier to fire select career employees, and implemented a hiring freeze across federal agencies. Additionally, federal workers have been ordered to come back into the office. 

Congresswoman Lori Chavez-DeRemer (R-OR) has been announced as Trump’s pick for Labor secretary. She is known for her support of wide-ranging labor laws enhancing workers’ organizing rights and regulating the gig economy. Her confirmation hearing has not been scheduled as of this writing. 

Federal Funding

On January 27, President Trump issued an executive order that pauses federal financial assistance of agency grant, loan, and other financial assistance programs.  This memorandum requires federal agencies to identify and review all federal financial assistance  programs and supporting activities consistent with the president’s policies and requirements. This temporary pause provides the administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the president’s priorities. 

Artificial Intelligence Policy

The Trump administration reversed President Biden’s comprehensive measure to regulate artificial intelligence.

Updates will be provided through the NACE Insights newsletter and other NACE communications.