There is a lot to know about US legislation as we head into the fall semester. Thanks to ACE for sharing their policy outlook and issues to watch that can impact higher education. I have summarized some of the key priorities in their brief, focusing on a risk perspective for each legislative proposal along with my insights.
Congress will once again return to vote on the FY2027 appropriations process, with the priority of avoiding a shutdown before the Sept. 30 fiscal year-end.
Risks: A government shutdown that could disrupt federal financial aid disbursement, research funding, and agency operations during the fall semester.
The Senate's passed measure will extend funding through Dec. 11 and block OMB's proposed Uniform Guidance revisions; the House version runs through Dec. 4 without that provision.
Risks: The House and Senate bills on the Uniform Guidance provision create uncertainty as they are not aligned. If the House version prevails, OMB could increase political oversight of grantmaking and expand federal authority to terminate awards, exposing institutions to greater compliance and funding volatility.
Beyond the continuing resolution debate, the House Labor-HHS-Education bill would result in a roughly 10 percent cut to the Department of Education's funding while raising the maximum Pell Grant by $50.
Risks: Reduced federal aid capacity for work-study and campus-based grant programs will only partially offset a modest Pell increase. The Senate has not yet released its own bill, so the final funding level remains unresolved, increasing financial risk.
The Senate is expected to discuss the “Protect College Sports Act”, which would establish a federal framework for NIL compensation, transfers, and revenue sharing.
Risks: It does not appear that this bill addresses student-athlete employment classification, which has been the focus of risk and insurance discussions; leaving that legal question open will increase litigation risk. Institutions should be on the alert for preemption effects on existing state NIL laws, which could require compliance modifications.
The Department of Education's priorities include implementing the 7/1/26 student aid changes, rolling out Workforce Pell changes, establishing a new earnings-based accountability framework to take effect in 2027, and additional proposed accreditation regulations.
Risks: The earnings-based accountability framework and pending accreditation regulations pose compliance and accreditation risks. ACE has flagged concerns that the earnings metric could disproportionately affect programs serving low-income and underserved students, while accreditation changes could alter institutional oversight.
And lastly, DHS's fixed-period admission rule for international students, capped at four years, takes effect Sept. 15, 2026, replacing the "duration of status" system.
Risks: This four-year cap, effective Sept. 15, 2026, risks increased administrative burden and enrollment uncertainty for international students, particularly those in longer programs (e.g., PhDs) that may exceed the cap. This presents a substantial financial risk to institutions reliant on large international student populations. This may also increase reputational risk, as international students may view the US higher education environment negatively and choose to study elsewhere.
For the full ACE Report, view here: ACE Fall 2026 Federal Higher Education Policy Outlook