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E-Updates

Nov. 25, 2024

E-Update for November 25, 2024

The information covered below is for the period of November 8, 2024, through November 21, 2024. Additionally, EducationCounsel recently published an analysis of how the 2024 elections could impact federal education policy, which can be found here.

Given the upcoming Thanksgiving holiday, this publication of EducationCounsel’s E-Update does not include information on upcoming events, a list of recently introduced legislation, or summaries of recent publications. This information will be included in our next publication.

Highlights:

  • On November 19, President-elect Donald Trump nominated Linda McMahon to serve as Secretary of Education. Currently, McMahon serves as the Co-Chair of the Trump-Vance Transition Team.
  • On November 15, the House passed H.R. 8932, the FAFSA Deadline Act, by a vote of 381 to 1, which requires the U.S. Department of Education (USED) to make the Free Application for Federal Student Aid (FAFSA) available by October 1 of each year. The Senate then passed the bill on November 21, with the bill now heading to the President’s desk for signature. Relatedly, the USED officially released the 2025–2026 FAFSA on November 21.
  • On November 15, USED issued an interim final rule (IFR) to amend the regulations governing income contingent repayment (ICR) plans available to federal student loan borrowers. Specifically, the proposed rule revises the end date for most borrowers to enroll in ICR, Pay as You Earn (PAYE), or Revised Pay as you Earn (REPAYE) plans from July 1, 2024, to July 1, 2027.

Administration

White House

President-elect Donald Trump announces nomination of Linda McMahon for Secretary of Education: On November 19, President-elect Donald Trump nominated Linda McMahon to serve as Secretary of Education. Currently, McMahon serves as the Co-Chair of the Trump-Vance Transition Team. McMahon served as Administrator of the Small Business Administration (SBA) during the first Trump Administration until 2019, when she stepped down to help lead America First Action, a Super PAC (Political Action Committee). She then helped found the America First Policy Institute, which provided support in the development of the education platform for President-elect Trump’s 2024 campaign and is playing a role in the drafting of the Trump’s Administration’s education agenda. The AFPI has advocated for broad expansion of school choice programs and parental rights, among other positions.

McMahon’s previous education experience includes serving on the Connecticut State Board of Education in 2009.  She has also served on the Board of Trustees at Sacred Heart University, a private, Catholic university in Connecticut. McMahon has expressed support for school choice initiatives, including support of charter schools and the use of public funds to attend private schools. McMahon has also been supportive of apprenticeship programs and expanding Pell Grant eligibility to short-term training programs.

McMahon is also married to Vince McMahon -- founder of World Wrestling Entertainment (WWE) -- and served as CEO of the organization.

White House hosts summit to celebrate successful efforts to expand high-quality career pathways and workforce development programs: On November 13, the White House hosted the “Classroom to Career” Summit, welcoming over 200 state and local elected officials, community college presidents, K-12 leaders, unions, and workforce development leaders from the nine White House Workforce Hubs and other communities. At the summit, President Biden announced that $80 billion from the American Rescue Plan (ARP) has been committed to strengthening and expanding the American workforce. Additionally, First Lady Jill Biden announced that 34 states and Washington, D.C., now have a free community college program. In conjunction with the summit, the USED published a new analysis on postsecondary programs that highlights how colleges and universities support local workforce investments by creating new programs, welcoming new students, and awarding valuable credentials, among other actions. The announcement from the USED notes that further data on these postsecondary programs is forthcoming, but provides preliminary findings connecting local investments in certain industries and related postsecondary enrollment in those industries.

White House requests disaster relief funding in response to Hurricanes Helene and Milton and other natural disasters, including support for early childhood and education programs: On November 18, the White House issued a request for disaster relief funding following Hurricanes Helene and Milton and other natural disasters. The President’s request includes supplemental funding to address early childhood and education needs of impacted communities. Specifically, $581 million in emergency funding is requested to support Head Start programs impacted by Hurricanes Helene and Milton, as well as the Maui fires. The funding would support ongoing early childhood education and support services to children and families, as well as building repairs or reconstruction. Additionally, the request includes $750 million for the Social Services Block Grant to support social services, including child care, family supports, and child welfare services, in response to Hurricanes Helene and Milton. The funding could also cover costs associated with the repair, renovation, and construction of local non-profit facilities that provide services to victims of the hurricanes.

Under the USED, $950 million is requested for the Immediate Aid to Restart School Operations program to hire additional substitute teachers; replace damaged school equipment; provide displaced teachers with temporary housing via vouchers; and provide mental health supports to K-12 students, teachers, and school staff. Funding would also be used for the Emergency Assistance to Institutions of Higher Education to provide technology and communication systems; develop school and community specific preparedness training; cover basic needs like food, shelter, medical, and transportation needs of student and staff post-disaster; and assist in mental health supports for students and staff. The Senate Appropriations Committee held a hearing to examine the request for disaster relief funding on November 20; however, the USED and HHS Secretaries did not provide testimony regarding the funding requested to be administered by their agencies.

U.S. Department of Education (USED):

USED issues notice of proposed rulemaking to reopen availability of Income Contingent Repayment plans to federal student borrowers: On November 15, the USED issued an interim final rule (IFR) to amend the regulations governing income contingent repayment (ICR) plans available to federal student loan borrowers. Specifically, the proposed rule revises the end date for most borrowers to enroll in ICR, Pay as You Earn (PAYE), or Revised Pay as you Earn (REPAYE) plans from July 1, 2024, to July 1, 2027. The Department previously ended ICR plans as it made available the Biden Administration’s Saving on a Valuable Education (SAVE) plan, but a federal injunction preventing implementation of the SAVE plan has prompted the USED to reopen those repayment plans. While the regulations will officially go into effect July 1, 2026, the USED has elected to early implement the provisions of the IFR effective December 16, 2024 (which is also the deadline for submitting comments on the IFR). This would theoretically enable borrowers who are currently unable to access an ICR plan to do so beginning on December 16. However, it remains to be seen whether the USED will make the repayment plan application available by that date and whether its servicers will be able to enroll borrowers in a new repayment plan in that accelerated timeframe.

USED officially releases the 2025–2026 Free Application for Federal Student Aid (FAFSA) form: On November 21, the USED officially released the 2025–2026 FAFSA, 10 days before the Department’s December 1 goal. The Department held four rounds of beta testing to allow for comprehensive testing and the incorporation of feedback from students, parents, schools, community-based organizations, and other partners before the official launch of the form. During this testing period, more than 167,000 students submitted the online 2025–2026 application and the Department has processed forms and sent records to more than 5,200 schools across all states. Regarding the official launch of the 2025-2026 FAFSA form, USED Secretary Miguel Cardona stated, “After months of hard work and lots of feedback from students, schools, and other stakeholders, we can say with confidence that FAFSA is working and will serve as the gateway to college access and affordability to millions of students.” Secretary Cardona further emphasized, “over 650,000 more applicants are eligible for Pell Grants, and more students are receiving Pell Grants, this school year compared to last year.  We stand ready to help millions more students complete the FAFSA and get the financial aid they need to pursue their dreams of a college education.”

USED announces new partnership with U.S. Department of Agriculture to expand awareness of Supplemental Nutrition Assistance Program (SNAP) to eligible college students: On November 7, the USED’s Office of Federal Student Aid (FSA) and the U.S. Department of Agriculture’s Food and Nutrition Service (FNS) announced a joint agreement to strengthen college student access to SNAP. The agreement aims to increase awareness of SNAP among college students, citing a July 2024 Government Accountability Office (GAO) report that showed 67% of the 3.3 million college students potentially eligible for SNAP reported not receiving benefits. The agreement states that the FNS and the FSA will use data to identify low-income students eligible for SNAP and inform them of their potential eligibility, as well as provide information about SNAP rules for students and how to apply. Additionally, the offices will work with institutions of higher education to help them provide clear guidance to students regarding SNAP eligibility and application processes. The agreement also notes the offices plan to pilot data-sharing projects in up to 10 states, creating the opportunities for state SNAP agencies and colleges to collaborate in outreach to students who may be eligible for benefits and providing technical support to institutions and agencies in those efforts.

U.S. Department of Health and Human Services (HHS):

U.S. Department of Health and Human Services (HHS) issues final rule to allow for new flexibilities for Indian Tribes and Tribal Organizations in their operation of the Child Care and Development Fund (CCDF): On November 18, the HHS’ Office of Child Care issued a final rule increasing flexibility for Tribes in determining Child Care and Development Fund (CCDF) eligibility. This final rule amends CCDF regulations to provide all Indian Tribes and Tribal Organizations operating CCDF programs the flexibility, at their discretion, to establish and use eligibility criteria regardless of family income or assets. The announcement notes that the final rule will benefit Tribal Nations by better aligning family income eligibility rules in the Tribal CCDF with Head Start programs. This final rule became effective November 16, 2024.

Congress:

House and Senate pass bipartisan legislation codifying October 1 deadline for annual release of FAFSA: On November 15, the House passed H.R. 8932, the FAFSA Deadline Act, by a vote of 381 to 1. The Senate then passed the bill on November 21, with the bill now heading to the President’s desk for signature. The bipartisan legislation requires the USED to make the FAFSA available by October 1 of each year. H.R. 8932 follows challenges the Department faced in releasing the FAFSA during recent award cycles, particularly as the USED was required to make changes required by the FAFSA Simplification Act. A fact sheet on the bill, released by House Education and the Workforce Committee, notes that by establishing in legislation a deadline of October 1 and ending rollout “flexibilities” in the current statute, the bill will end any confusion caused by delays in releasing the FAFSA form.

Joint Economic Committee holds hearing on tax policy in advance of the upcoming 119th Congress: On November 19, the Joint Economic Committee (JEC) held a hearing titled, “Building on the Success of TCJA: The 2025 Tax Policy Debate.” The Tax Cuts and Jobs Act, or TCJA, was passed in 2017 and signed into law by President-elect Trump during his first Administration. The JEC was created by the Employment Act of 1946, which established two advisory panels - the President's Council of Economic Advisers and the JEC - to review economic conditions and recommend improvements in economic policy. Chairmanship of the JEC alternates between the Senate and House every Congress, with Senator Martin Henrich (D-NM), the current Chairman of the Committee, and Representative David Schweikert (R-AZ) serving as Vice Chairman. Vice Chairman Schweikert convened and chaired this hearing, which heard from several witnesses, including former U.S. Representative Kevin Brady (R-TX), the Chairman of the House Committee on Ways and Means and Joint Economic Committee at the time the TCJA was passed; Douglas Holtz-Eakin, President of the American Action Forum and Former Director of the Congressional Budget Office (CBO); Samantha Jacoby, Deputy Director of Federal Tax Policy at the Center on Budget and Policy Priorities; and John Arensmeyer, Founder and CEO of the Small Business Majority.

In his testimony, former Representative Brady, who currently serves as a strategic advisor to the Alliance for Competitive Taxation, which helps “promote U.S. jobs and investment through the establishment of a globally competitive tax system,” supported a full extension of the 2017 law, despite an estimated cost of nearly $4 trillion over ten years. In his remarks, former CBO Director Holtz-Eakin advocated making permanent the expensing of investments and research and development expenditures which, he argued, would “remove a tax consideration from the choice among wages, investment in skills, investment in physical capital, and investment in innovation.” Ms. Jacoby, from the Center on Budget and Policy Priorities, argued in her testimony that the TCJA was highly skewed towards the highest earners and larger corporations and severely eroded the ability for investments in “people, communities, and the building blocks of the economy.” She advocated for policymakers to prioritize investments, such as the Child Tax Credit (CTC), paid leave, and an expanded Earned income Tax Credit (EITC). The final witness, Mr. Arensmeyer, from the Small Business Majority, in his remarks, also opposed extending the tax cuts in their current form and said, “2025 offers a chance to address the shortcomings of the tax code and lay the foundation for a tax policy agenda that better serves small businesses.”

Among remarks from Members of Congress, Republicans uniformly supported extending and/or expanding the tax provisions in the TCJA. Democratic Committee members strongly opposed extending the tax cuts and instead supported expansion of tax credits, such as the CTC, EITC, and the Low-Income Housing Tax Credit.

House

House Education and the Workforce Committee Chairwoman Foxx issues letter to the USED regarding Third-Party Servicers: On November 8, House Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) issued a letter to USED Secretary Cardona regarding reports that the Biden-Harris Administration is considering making changes to past guidance, which was in the form of a 2011 Dear Colleague Letter (DCL) that describes how colleges and universities may enter into contracts with third-party servicers (TPS) that offer bundled services, such as providing online courseware, marketing, and retention services for students. In anticipation of potential forthcoming guidance on TPS, Chair Foxx’s letter “implor[es]” the Department to “avoid any changes to this guidance without working with Congress to clarify the law lest institutions be left in the dark about their compliance and responsibilities with third-party servicers.” Chairwoman Foxx continues, “Eliminating or revising the guidance now would obliterate a decades old, foundational principle of public-private ed tech partnerships that has worked.” The letter concludes “urging [the Department] to reconsider…any action,” emphasizing potential “chaos for institutions, students and the ed tech industry.”

House Education and the Workforce Committee Chairwoman Foxx issues statement following AmeriCorps’ financial audit results: On November 18, House Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) issued a statement following the release of AmeriCorps’ annual independent audit. The audit, released on November 15, verified that though AmeriCorps took appropriate actions to address 20 of the 95 prior year recommendations, AmeriCorps issued a No Assurance statement, “acknowledging that its system of internal controls does not currently provide the necessary level of assurance towards the effectiveness of internal control over operations, reporting, and compliance.” In response, Chairwoman Foxx stated, “The results of the Inspector General’s audit have further cemented the fact that AmeriCorps is nothing more than a burn pit for the dollars of hardworking taxpayers.”

Senate:

Democratic Senate Agriculture Committee Chairwoman Stabenow releases draft Farm Bill: On November 18, Senate Agriculture, Nutrition, and Forestry Committee Chairwoman Debbie Stabenow (D-MI) introduced the Rural Prosperity and Food Security Act, known as the Farm Bill. The Farm Bill covers four primary issues related to education services: early childhood facilities; SNAP; land-grant institutions, including Historically Black Colleges and Universities (HBCUs); and broadband access. According to a fact sheet, the bill proposes investing $8.5 billion to improve the ability of military families, seniors, and college students to access SNAP and $4.3 billion in rural communities to support child care, among other provisions. Separately, Senate Agriculture Committee Ranking Member John Boozman (R-AR) released the Republican framework for the Farm Bill in June 2024. Given that the current one-year extension of the farm expires during the lame duck session and will likely need to be extended, the Senate is unlikely to pass the bill this Congress released by Chairwoman Stabenow.

U.S. Courts:

Eight states file amicus brief in support of Supreme Court hearing Oklahoma’s case for religious charter school: On November 11, Attorneys General of South Carolina, Alabama, Arkansas, Louisiana, Montana, Nebraska, Texas, and Utah filed a joint amicus brief in support of Oklahoma’s request for the U.S. Supreme Court to hear its case in Oklahoma Statewide Charter School Board v. Drummond. On June 25, the Oklahoma Supreme Court rejected a state contract to open St. Isidore of Seville Catholic Virtual School, which would be the first public religious charter school in the country. The Oklahoma Supreme Court wrote that, “The St. Isidore Contract violates state and federal law and is unconstitutional,” in the court’s 6-2 decision. The state Attorneys General write in their brief that, “It’s admittedly unusual for state attorneys general to challenge the constitutionality of another state’s laws. But the filing of this brief highlights the nature of Amici States’ concern. The Oklahoma’s Supreme Court’s ruling is an expansion of the ever-widening split of authority regarding foundational constitutional rights, and the record must be set straight.”