Federal News on Higher Education
Over the last several months, ACCT has been tracking the reconciliation process and reviewing the proposed bill as it moves through the House and Senate. On May 18, Republicans on the House Budget Committee voted to pass the reconciliation package after a handful of Republican holdouts delayed passage. On May 21st, the House Republicans secured the 215th vote that guaranteed the passage of the One Big Beautiful Bill Act. The U.S. Senate is preparing to consider its version of the House’s “One Big Beautiful Bill Act,” which includes significant cuts to Pell Grant eligibility based on enrollment intensity. Specifically, the proposed changes would redefine full-time enrollment as 15 credit hours per semester (up from 12), reducing grant amounts for students taking fewer credits, and eliminate Pell eligibility for students enrolled in less than half-time (fewer than eight credits). These changes could reduce grant amounts for the majority of community college Pell Grant recipients and eliminate aid altogether for at least 20% of those students. CCforIowa has contacted our senators in opposition to these cuts. ACCT has been informing members and staffers of the Senate Health, Education, Labor, and Pensions (HELP) Committee of the possible impacts of the reconciliation proposal that they will soon be tasked with evaluating and possibly modifying. A few weeks ago, the Trump administration unveiled its skinny budget request, an abbreviated budget that outlined a general picture of how the administration envisions government agencies and programs ought to be funded. Please join ACCT's Government Relations Team on June 6th at noon as they unpack updates in the Federal government, including the latest on the reconciliation process and the Trump administration's budget request. Congressman Tom Cole, chair of the House Appropriations Committee, released the markup schedule for the 12 appropriation bills that together would determine how the government is funded for fiscal year 2026.
On May 14th, in an event hosted by the think tank, the Cato Institute, the Secretary of Education, Linda McMahon, mentioned that the Treasury Department is a natural area for student loans to reside. ACCT's Vice President of Public Policy, Carrie Warick-Smith, invited Judith Witherspoon, Senior Vice President of Edamerica, to discuss how the return to student loan collections could affect community colleges, what a cohort default rate is, how it's calculated, and what colleges can do to support their student borrowers. Also on May 14, the Senate unanimously passed the resolution to designate April as Community College Month. On May 22nd, a U.S. District Judge ruled that the Trump administration's reduction of force (RIF) of the Department of Education interrupted services for students, families, and states, creating less efficiency, thus striking down the administration's argument that the Department's termination of thousands of employees was for the sake of eliminating bureaucratic bloat.
Now that the House Education and Workforce Committee no longer has reconciliation on their to-do list, ACCT is reaching out to committee staff and staffers from members' offices to orient their focus on reauthorizing the Workforce Innovation and Opportunity Act (WIOA). One feature of this reauthorization would be the codification of the Strengthening Community Colleges Training Grants (SCCTG). The December 2024 draft of the Continuing Resolution, a government funding package, included reauthorization language, which was later removed in the final bill in favor of a slimmer funding package. In an appropriations subcommittee hearing, Secretary Robert F. Kennedy Jr. told members of Congress that the Department of Health and Human Services aims to maintain Head Start funding for fiscal year 2026 as part of President Trump's Make America Healthy Again agenda. The Office of Global Educational Programs of the Bureau of Educational and Cultural Affairs (ECA) within the U.S. State Department announces an open competition to administer the FY2025 Benjamin A. Gilman International Scholarship Program which supports U.S. undergraduate students of limited financial means to study outside the U.S. in order to "broaden the outlook and better prepare such students of demonstrated financial need to assume significant roles in the increasingly global economy" and pursue credit-bearing academic studies or internships. The Department of Education (ED) announced Secretary McMahon's Grant priorities, which will shape the Discretionary Grant Programs run by ED.
Several 2026 Campaign Announcements Have Been Made
We're at the stage in the two-year election cycle where candidates are beginning to announce which offices they intend to seek in the November 2026 election. Congressman Randy Feenstra is exploring a run for governor. State Auditor Rob Sand has announced he is officially running for governor. Secretary of Agriculture Mike Naig recently declared he is not running for the GOP nomination for governor but instead will seek re-election to the office he currently holds. Attorney Nate Willems has announced he is running for the Democratic nomination for attorney general.
Gov. Reynolds Awards $2.94 Million in New Healthcare Grants to Boost Local Workforce
On May 28, Governor Kim Reynolds announced new grant awards for healthcare employers that will help boost the industry's workforce across Iowa, particularly in high-demand jobs. The Iowa Healthcare Credentialing Grant, announced by Gov. Reynolds during her 2025 Condition of the State, will support this workforce by funding work-based learning (WBL) programs that include an earn-and learn component (a combination of education and on-the-job learning or training). View the list of awardees here. Awardees include employers who plan to implement programs for multiple high-demand pathways, including helping employees obtain Registered Nursing (RN) training and licensure while working and programs adding positions for health care technicians, which have become more critical in recent years. The occupations that grant funding will be supporting include Registered Nurse, Licensed Practical Nurse, Certified Medical Assistant, and more.
Request for Proposals - Iowa Community Colleges Lobbyist
The Iowa Association of Community College Trustees has issued a Request for Proposals (RFP) for a contract lobbyist to support advocacy efforts on behalf of Iowa’s 15 community colleges. The selected individual or firm will collaborate closely with our government relations team to advance legislative priorities and represent the colleges at the Iowa Capitol. Proposals are due July 11, and interested parties can access the full RFP by emailing Kat Holck at kholck@ccforiowa.org.
Community Colleges for Iowa Bachelor's Degrees Interim Study Report
Community Colleges for Iowa has released its interim report, highlighting the potential benefits of allowing Iowa's community colleges to offer select four-year degrees. The report emphasizes that such programs could address workforce shortages in high-demand fields like healthcare, education, and technology, particularly in rural areas. It also notes that community colleges are well-positioned to provide affordable and accessible bachelor's degree options, especially for nontraditional and place-bound students. However, the report recommends a cautious approach, suggesting that any expansion should be limited to specific programs that meet demonstrated workforce needs and avoid unnecessary duplication with existing university offerings. These findings will inform future legislative discussions on expanding educational opportunities through Iowa's community colleges. To read the report, click here.