Collection of Student Loans Begins, President's Skinny Budget Asks for Major Cuts, End of Overtime Rule
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May 8, 2025
Leading the News this Week
ACCT is urging you to take action! The House Education and Workforce Committee passed its reconciliation bill. The next step is for this bill to go to the House Budget Committee before making it to the House floor for a full member vote. This means that we are closer to the enactment of dangerous policies for our community colleges. ACCT has authored a section-by-section breakdown of the House's reconciliation proposal as well as a brief summary of the impacts of this reconciliation plan. Reach out to your members of Congress and let them know that harmful changes to the Pell Grant Program and risk-sharing found in this bill will be detrimental to community colleges and their students. Take action here!
News in Higher Education
Collection of Student Loan Repayment Begins
Starting this week, the Department of Education began collecting payments on defaulted student loans. As such, the Department sent a Dear Colleague Letter to institutions of higher education outlining that they play a role in the Department's efforts to collect student loan payments. Therefore, the Secretary asks institutions to contact their former students and remind them of "their obligation to repay any federal student loan that is not in deferment or forbearance, and that they do so before June 30, 2025."
President's Skinny Budget Asks for Major Cuts
Last week, President Trump revealed his "skinny budget," an abbreviated President's budget that does not include funding requests for every government program but does feature the main areas he would like to see spending cuts and increases. In addition to cutting Federal Work Study by 80%, this budget requests the elimination of funding for many of the programs that community colleges and their students rely on. This week's graphic, inserted below, lists a sample of these programs.
For a deeper look at both President Trump's "skinny budget" and the potential impacts of the House Reconciliation Bill on higher education, read the latest ACCT NOW article.
Potential End of Overtime Rule
During the Biden Administration, colleges were previously exempt from tracking work hours and providing overtime pay to employees with salaries at or above $35,568. Under the Biden era, the salary threshold increased to $43,888, which was later blocked by Texas federal judges along with other components of the rule. Currently, the Justice Department has asked the 5th U.S. Circuit Court of Appeals to temporarily suspend appeals from the Department of Labor on cases that challenge this Biden-era 2024 rule, signaling an impending end to this policy.
Grant Opportunities
Public Diplomacy English Language Program: U.S. Department of State announced an open competition to implement a program to increase English proficiency across the Kyrgyz Republic to expand engagement with American partners, and build opportunities for stronger economic ties between the United States and the Kyrgyz Republic. A lack of adequately skilled English teachers with sufficiently high levels of English across the Kyrgyz Republic significantly impedes students' learning English at a functional level. The U.S. Embassy in the Kyrgyz Republic seeks to fund program(s) for no more than two years to enhance high school and university teachers’ fluency and functionality in English. Click here for additional information. The closing date for the application is May 31, 2025.
Inside Higher Ed, gives a glimpse of President Trump's budgetary request found in his "skinny budget." As this table indicates, the Trump administration is requesting the elimination of funding for programs such as Child Care Access Means Parents in School (CCAMPIS), TRIO, Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP), and Supplemental Education Opportunity Grants (SEOG).
- May 14, 2:00PM ET – Student Loan Cohort Default Rates: How they can negatively impact community colleges
May 23 - Deadline for ACCT's Leadership Congress Presentation Proposals
- May 28, 2:00PM ET– New Carnegie Classifications: Community College Impacts and Opportunities
- May 31 - Public Diplomacy English Language Program: Grant Application Due
- June 6, 1:00PM ET - LAW Live Webinar
- June 17 - Preservation and Access Education and Training Grant closing date
- June 20 - Fire Science Innovations through Research and Education (FIRE) Grant Application Due
- Jul 11, 2025, 01:00 PM ET - LAW Live Webinar
- Aug 1, 2025, 01:00 PM ET - LAW Live Webinar
- Sep 5, 202,5 01:00 PM ET - LAW Live Webinar
- October 22 - 25 - ACCT Leadership Congress
Outreach Efforts
Is your institution meeting or hosting an event with federal elected officials?
We created a Congressional Contact Form that will help us track outreach efforts of community college leaders across our membership. By filling out the form, you are better informing ACCT's advocacy efforts and our advocacy team is able to continue those conversations with congressional staff in DC.
ACCT NOW is the go-to resource for issues affecting community colleges. Our new website features original reporting and research, as well as of-the-moment legislative updates. ACCT NOW also includes articles, reports, and research from outside sources that benefit the ACCT community. Read the Latest Articles on ACCT NOW:
Would you Like a Federal Update Session for Your Team?
Both this new presidential administration and new Congress have brought with them a flurry of developments in the federal landscape that can make keeping up a monumental task. ACCT's Government Relations team is here to help by offering a 45-minute to an-hour federal update session to community college leadership teams who are ACCT members. To request a session, fill out this form and please email publicpolicy@acct.org with any questions.
Have a Question?
Contact us with any questions or concerns about public policy and ACCT's advocacy on behalf of two-year colleges and two-year college trustees. ACCT's Latest Action in Washington alerts are sent to interested ACCT members to keep you up to date on important legislative activities that impact community colleges.
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Spread the Word.
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