ICYMI: Negotiated-rulemaking table reached consensus on new accountability scheme, GE/FVT
The Education Department (ED) last week convened the second negotiated-rulemaking table for the Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) Committee. The AHEAD Committee is the second of two panels brought together to implement the higher education components of H.R. 1, the One Big Beautiful Bill (OBBB) reconciliation legislation.
The group met to consider the new accountability system to measure the earnings of program completers against a comparison group of high school graduates (the “Do No Harm” standard). It also considered changes to gainful employment (GE)/financial value transparency regulations.
ED proposed language to “harmonize” the new accountability system applied to all degree programs with GE regulations, currently applied to certificate programs and programs offered by proprietary institutions. In the issue papers, the department proposed eliminating the existing debt-to-earnings (D/E) standard currently applied to GE programs and subjecting all degree and certificate programs at all institutions only to OBBB’s “Do No Harm” earnings test. Negotiators debated the merits of eliminating D/E for both accountability and transparency measures throughout the week, but ultimately accepted nixing D/E.
To further merge the current and new accountability models, ED proposed that if a program fails the earnings test, the institution will not be able to offer loans for the affected program. Programs currently subject to GE lose all Title IV eligibility if they fail the current D/E or earnings premium measures. Limiting the consequence of failure to Direct Loan eligibility for certificate programs as well as degree programs was a sticking point throughout the week, possibly threatening the committee’s ability to reach consensus. Provisions were ultimately added that would strip Title IV eligibility from all failing programs at an institution under extreme circumstances that are not applicable to community colleges.
The committee reached consensus on Friday afternoon, with all but one member approving the regulations. The member, representing legal aid groups, abstained from voting. Because the committee reached consensus, ED must use the version of the draft regulations agreed to by the committee when it issues a Notice of Proposed Rulemaking to the public.
AACC hosted a members-only webinar on January 14. Contact AACC’s Office of Government Relations (ogr@aacc.nche.edu) if you have questions or would like to receive the slides.
ED announces new FIPSE grant recipients
ED last week announced that it has awarded $169 million in Fund for the Improvement of Postsecondary Education (FIPSE) grants that build on Trump administration priorities. Many community colleges will receive funds to switch accreditors, develop AI courses or embed AI into existing courses, and develop and scale programs expected to qualify for Workforce Pell.
Historically, FIPSE has been used to support and scale evidence-based programs that strengthen college access and success. Congress appropriated $171 million in fiscal year 2025 for FIPSE, with funding amounts specified for seven existing programs within the fund. These include the postsecondary student success, basic needs, veteran student success, and rural postsecondary education development programs. In a break from traditional practice, the Trump administration announced its own FIPSE grant programs, aligning with the president’s priorities, effectively reprogramming funding from existing FIPSE programs.
Under the new FIPSE grant priorities, ED has awarded $50.9 million to projects to embed AI in higher education programming, $51.8 million to projects to promote civil discourse on campuses, $52.1 million to help colleges prepare for Workforce Pell, and $14.5 million to projects focused on changing accreditors or promoting accreditation reform.
Community colleges are well represented among the grantees. Eight community colleges received grants to develop and/or prepare workforce programming to gain Workforce Pell eligibility, with an average award of $2.4 million. Seven community colleges received grants to embed AI literacy and competencies in courses, with an average grant of $2 million. Finally, three community colleges received grants to help change their accreditor, with an average grant of $860,000. No community college projects around civil discourse were selected.