Department of Education Shakes Up Higher Ed with New Rulemakings and Reforms

The biggest headline from the Department of Education this week is the announcement of two major negotiated rulemaking efforts to implement President Trump’s One Big Beautiful Bill Act. This ambitious legislation is set to reshape higher education by overhauling student loan and Pell Grant programs, launching tougher accountability measures for colleges and universities, and prioritizing workforce readiness in postsecondary policy. Acting Under Secretary James Bergeron summed up the department’s sense of urgency: “The new law will force colleges and universities to focus more on post-graduation outcomes, facilitate more workforce pathways, make student loans simpler for borrowers, and ensure taxpayers are not forced to pick up the bill for mass student loan forgiveness.” Here’s what this means on the ground. The department is forming two new committees, RISE and AHEAD, to tackle federal student loan changes, workforce Pell expansion, and institutional accountability. Five-day sessions in September, November, December, and January will shape final recommendations, and the department is inviting public input during a virtual hearing on the best ways to turn the law’s broad mandates into specific regulations. According to the American Council on Education, there’s already pushback from college leaders who want more guidance on the new admissions data rules and changes to loan repayment plans. The Admissions and Consumer Transparency Supplement, focusing on new admissions data—including applicants’ race—opens for public comment through mid-October. On another front, the department has confirmed that this fall, the Free Application for Federal Student Aid, known as the FAFSA, for the 2026–27 cycle will launch on time. Secretary Linda McMahon has reassured Congress and families that timely access remains a priority, so current and future students can plan without disruption. In related developments, partnerships with other federal agencies are influencing education policy. For example, the Energy Department’s recent changes could affect Title IX protections and civil rights enforcement in schools receiving its funds—a move that education policy experts like Brown University’s Kenneth Wong suggest could become a template for using non-education agencies to set precedent in schools. This indirect approach makes immediate impacts on select institutions but could ripple out to affect many more schools nationwide if adopted broadly. For American citizens, these changes promise more transparency about college outcomes, potentially simpler access to aid, but also new rules that will affect who gets what money, and how quickly. Businesses and organizations, especially those in workforce development, should see increased federal emphasis on aligning education with labor market needs. State and local education agencies will have to navigate new regulations, altered reporting requirements, and possibly less autonomy over civil rights and diversity initiatives This content was created in partnership and with the help of Artificial Intelligence AI.