House Appropriations Committee approves Labor-HHS-ED funding bill
The House Appropriations Committee on Tuesday approved the fiscal year 2027 (FY 27) funding bill for the Labor, Health and Human Services, Education, and Related Agencies Subcommittee (Labor-HHS-ED) following a lengthy markup.
As covered in the Community College Daily, the bill seeks to cut discretionary funding by 27% for the Labor Department and by 10% for the Education Department. The measure would provide a $10 million increase to the Strengthening Community Colleges Training Grant Program (SCCTG) and a $10 million increase for the Strengthening Institutions Program (SIP) – top appropriations priorities for AACC. It also would deliver small increases to TRIO and increase the Pell Grant maximum by $50. The bill also proposes eliminating funding for Adult Basic Education, mirroring a request from the Trump administration’s fiscal year 2027 (FY 27) federal budget request.
The bill delivers a one-year fix to stave off the looming $17 billion shortfall in the Pell Grant reserve fund by permanently eliminating the direct subsidized loan program for undergraduate students. While Democrats on the Appropriations Committee offered an amendment to restore the loan subsidies, it was ultimately not successful. The proposal is likely to face challenges in the Senate, where appropriations bills require bipartisan support, leaving an unclear path forward on funding the Pell Grant program in a final spending law.
The bill has not yet been scheduled for consideration on the House floor. In the Senate, the markup for the Labor-HHS-ED bill has been delayed several times as Senate appropriators work towards an agreement on top-line funding levels.
House passes bill on ‘ghost students’
On Wednesday, the House passed an amended version of the No Aid for Ghost Students Act on a 249-172 bipartisan vote. The bill was originally introduced in March as two distinct pieces of legislation – the No Aid for Ghost Students Act and the Student Aid Fraud Oversight and Accountability Act.
As covered in the Community College Daily, the initial No Aid for Ghost Students Act requires the Education Department (ED) to proactively identify financial aid applicants who exhibit patterns associated with fraud when a student submits a FAFSA, codifying the new agency identity verification policy that went into effect this spring. The bill also requires institutions to adhere to ED requirements relating to preventing Title IV fraud, which, again under existing policy, will consist of running V4/V5 identity verification before distributing any aid to a student whose FAFSA is initially rejected by ED for having a high likelihood of fraud. The second bill, the Student Aid Fraud Oversight and Accountability Act, would require ED to prioritize program reviews of institutions that have not complied with identity verification policies. The bill passed by the House combines these two pieces of legislation and makes some text changes throughout.
While nearly 40 Democrats voted in favor of the bill, it received opposition from many Congressional Democrats who would have preferred for the statutory text to limit the agency’s authority in different areas.
ED publishes institutional aid eligibility matrix
The Education Department this week published the FY 26 eligibility designation matrix, which allows community colleges to view if they are eligible to apply for the institutional aid programs, including the Title III-A Strengthening Institutions Program (SIP).
To be eligible to compete for institutional aid, colleges and universities must meet certain eligibility criteria around student need and institutional expenditures. This eligibility is conferred either through an analysis of Integrated Postsecondary Education Data System (IPEDS) data or through a waiver request approved by the Secretary of Education. Until this year, determinations were also made on whether institutions were eligible for different Minority-Serving Institutions (MSI) programs based on an institution’s demographics.
As a reminder, ED has reallocated FY 26 funding from Title III and V MSI programs (which the Trump administration has deemed unconstitutional) into a “Super SIP” competition. As a result, the FY 26 eligibility matrix only displays which institutions are eligible for funding under SIP, Historically Black Colleges and Universities (HCBUs), and Tribally Controlled Colleges and Universities (TCCU).
The “Super SIP” program will disburse $366 million in new awards. Community colleges who are designated as SIP-eligible are encouraged to apply before the competition closes on June 23. The Trump administration’s priorities for this year are attainment of workforce credentials, work-based learning opportunities, development of workforce Pell-eligible programs, and expanding the understanding of AI.
DOL/ED grant reminders
- The FY 26 Strengthening Institutions Program competition is open until June 23.
- FY 26 grant competitions for the Basic Needs Grant Program, the Open Textbook Pilot Program, the Centers of Excellence for Veteran Student Success Program, and the Rural Postsecondary and Economic Development Grant Program are open until June 23.
Upcoming AACC events
If you haven’t already, please register for AACC’s annual Advocates in Action event in Washington, D.C., September 15-16. Space is limited.