White House issues a proposed rule prohibiting federal funding for DEI programs
On Friday, the White House Office of Management and Budget (OMB) released a proposed rule revising guidance on requirements for federal grantees. The new guidance expands on prior executive orders and other efforts to prohibit institutions that receive federal funding from engaging in diversity, equity, and inclusion (DEI) activities. The listed activities include promoting disparate impact theory, promoting gender ideology, engaging in discrimination based on viewpoint diversity, or any activity that would “disadvantage disfavored groups.”
Outside of DEI, the OMB proposed rule changes requirements and procedures around reimbursements, conditions for grant terminations, and scrutiny of existing grants. It also expands penalties for grantees who are found to have violated grant requirements.
On a more positive note, the proposed rule will require all federal grant competitions to be open for at least 30 days and will require the disclosure of more information if a grant is cancelled. The guidance also affirms current indirect cost rates, providing more stability for colleges who are financially planning around larger grants.
The rule is open for public comment for 45 days. Comments can be submitted via the Federal Register.
ED releases a new training series for OBBBA implementation
The Education Department (ED) this week released a schedule of upcoming webinars to help institutions and stakeholders navigate the July 1 implementation of the higher education provisions of the Working Families Tax Cuts Act, better known as the One Big Beautiful Bill Act (OBBBA).
The changes in OBBBA are sweeping and will have an immediate impact on financial aid packaging and loan counseling, institutional data reporting, and program eligibility. These types of Title IV changes would typically be subject to the Master Calendar, which requires that final rules are published by November 1 to go into effect July 1 of the following year. However, ED interprets OBBBA’s statutory language to supersede the Master Calendar. This means that colleges will have to implement new loan limits and prorations, navigate new Workforce Pell eligibility, and come into compliance with a new accountability framework in the next month.
Complicating things further, ED has still not yet released the final rules around the new accountability measure – the Student Tuition and Transparency System (STATS) and Earnings Accountability framework (AACC submitted comments on the Notice of Proposed Rulemaking last week). The final regulations for Workforce Pell were only published last Monday, with perhaps the most complicated set of final rules for colleges to implement – the student loan changes – being published earlier this month.
ED acknowledges that this accelerated timeline will pose implementation challenges for institutions and has promised additional supports throughout the implementation period. In keeping with this promise, the department will host four webinars focused on implementation throughout June and July. While preregistration is not required, each webinar will be capped at 10,000 attendees and participation is first-come, first-serve. The webinar schedule is as follows:
- Loan Repayment and Other Changes: Wednesday, June 3, 11:00 am – 12:30 pm ET
- Schedule of Reductions/Loan Limits: Wednesday, June 10, 11:00 am – 12:30 pm ET
- Workforce Pell: Program Eligibility, Awarding, and Accountability: Wednesday, June 24, 11:00 am – 12:30 pm ET
- STATS and Earnings Accountability: Reporting, Metric Calculation, and Appeals: Wednesday, July 8, 11:00 am – 12:30 pm ET
ED also announced 14 hour-long virtual “office hours.” Registration is required for these sessions, and attendance is again capped at 10,000.
Recordings of all webinars and office hours will be available through the FSA training center.
DOL/ED launches new FIPSE competitions
The Department of Labor (DOL), on behalf of ED, has announced the fiscal year 2026 (FY 26) grant competitions for Fund for the Improvement of Postsecondary Education programs, including the Basic Needs Grant Program, the Open Textbook Pilot Program and the Centers of Excellence for Veteran Student Success Program. The competition for the Rural Postsecondary and Economic Development Grant Program is expected to be published on Friday.
Each competition will be open until June 23.
The departments also opened a competition for FIPSE Postsecondary Student Success Grants. The application for that program closes on June 29.
ICYMI: DOL launches new SIP competition
DOL, on behalf of ED, also released the FY 26 grant application for the Higher Education Act Title III-A Strengthening Institutions Program (SIP). As a reminder, SIP awards institutional aid to colleges and universities that meet certain eligibility criteria around student need and institutional expenditures. Community colleges are encouraged to compete, with applications due on June 23.
As covered in the Community College Daily, this year’s competition differs from years prior. For FY 26, ED/DOL will reallocate funding from Title III and V Minority-Serving Institutions programs (which the Trump administration has deemed unconstitutional) into a “Super SIP” competition. As a result, the program will disburse $366 million in new awards, far more than the $102 million appropriated just for SIP.
For the competition itself, ED/DOL will prioritize workforce-focused grant applications, including those that promote the attainment of workforce credentials, provide work-based learnings opportunities, support the development of workforce Pell-eligible programs or expand the understanding of AI.
Leadership changes at OCTAE, DOL
Last week, the Trump administration announced a significant staffing change in ED’s Office of Career, Technical, and Adult Education (OCTAE) and its corresponding offices at DOL. As covered in the Community College Daily, Nick Moore, assistant secretary of career, technical and adult education and deputy assistant secretary at DOL, has departed. Moore will be returning to his home state of Alabama to serve as the state adult education director for the Alabama Community College System.
Casey Sacks, former president of BridgeValley Community and Technical College in West Virginia, will assume the role of acting assistant secretary for career, technical and adult education. Sacks is currently the chief financial officer at ED, after serving as a senior policy advisor on workforce and AI. During the first Trump administration, she served as deputy assistant secretary for community colleges at OCTAE.
AACC looks forward to continuing to work with both Moore and Sacks in their new roles.