Reconciliation Continues in Senate, Lawsuit to Declare HSIs Unconstitutional, ED Requires Colleges to Verify Identities
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Publisher's Note: In observance of Juneteenth, ACCT's twice-weekly LAW Update will only go out once this week, unless there is an urgent federal update that needs to be disseminated.
June 16, 2025
Leading the News this Week
We at ACCT want to thank you for the pivotal role you played in reaching out to and meeting with your Members of Congress, sharing data and impactful narratives, and mobilizing others to do the same. This work has resulted in a Senate reconciliation bill that omits the provisions that would prove harmful to our institutions and students.
Even in this victory, we recognize that the process is still ongoing. The next step is for the rest of the Senate committees to reveal their reconciliation portions. From there, the Senate chamber is to vote on its reconciliation plan. Then, the House and Senate are to resolve the differences between their proposals before reaching a vote.
In the meantime, we will continue our advocacy efforts so that the final reconciliation bill takes on the shape of the Senate plan. We urge you to do the same when you communicate with your elected officials in both chambers.
Any questions or requests for support in contacting the Senate should be directed to publicpolicy@acct.org.
News in Higher Education
The Senate Continues to Work on Its Reconciliation Plan as the July 4th Deadline Approaches
In the latest development of the Senate budget reconciliation bill, the Senate Finance Committee is expected to unveil the tax pieces of its proposal later today, yet it is expected that there will be placeholders in the unfinished sections of the tax component. Overall, in addition to resolving the unfinished section, the Senate reconciliation bill has several procedural steps before reaching the floor for a full chamber vote.
Meanwhile, last week, the Senate Health, Education, Labor, and Pensions (HELP) Committee released its version of the budget reconciliation bill as related to higher education. Overall, there are significant differences between the House and Senate proposals. For a quick summary, please take a look at our table in the Graphic of the Week section below.
For a more detailed view of this reconciliation bill, please read our Fact Sheet.
For a deeper comparison between the House and Senate reconciliation higher education provisions, please visit ACCT NOW.
Lawsuit Asks Court to Declare Hispanic-Serving Institution Programs as Unconstitutional
On June 11th, the state of Tennessee and Students for Fair Admissions filed a lawsuit to declare the current requirements for receiving Hispanic-Serving Institution (HSI) funding as discriminatory and unconstitutional. There are currently over 600 HSIs in the United States, meaning that at least 25 percent of their enrolled student body identifies as Hispanic. The plaintiffs claim that meeting a threshold of 25 percent of Hispanic students to receive funding is unconstitutional, and they should be allowed to "apply regardless of their ability to hit arbitrary ethnic targets.”
Meanwhile, the Department of Education has opened applications for the Developing Hispanic-Serving Institutions Program. Additional details can be found in the Grants section
Department of Education Requires Colleges to Verify Identities in the Face of Student Aid Fraud
On June 6th, the Department of Education announced it will temporarily require institutions of higher education to verify the identities of an estimated 125,000 new federal financial aid applicants enrolling for the summer 2025 term until it develops a permanent screening process for Fall 2025. This temporary screening process involves students who are selected to verify their identities presenting their college with their government ID either in person or via a video call. The college then keeps the ID on file.
Because they are open-access institutions, fraudsters particularly enroll in online community college coursework and use artificial intelligence (AI) to complete assignments until they obtain aid disbursements. This problem has impacted various states; specifically, the California Community College system has reported that nearly a third of its applicants are "ghost students."
Webinar: From Data to Action - Student Wellbeing, Financial Stability, and Success Indicators Across the Community College Landscape
Join ACCT's Center for Policy and Practice and Trellis Strategies on June 18th at 2 PM ET as they unpack key findings from the latest Student Financial Wellness Survey (SFWS), highlighting the experiences of nearly 27,000 two-year students across 55 community colleges in 15 states. This webinar will explore critical insights into student wellbeing, academic success, and financial stability in the community college landscape. Click here to register.
Grant Opportunities
Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) Partnership Grants
This discretionary grant program encourages eligible entities to provide support and maintain a commitment to eligible students from low-income backgrounds, including students with disabilities, to assist the students in obtaining a secondary school diploma (or its recognized equivalent) and to prepare for and succeed in postsecondary education. Click here for additional information. The closing date for applications is June 25, 2025
Developing Hispanic-Serving Institutions Program
The Department of Education is issuing a notice inviting applications for fiscal year 2025 for the Developing Hispanic-Serving Institutions Program.
This program provides grants to eligible institutions of higher education to expand educational opportunities for, and improve the academic attainment of, Hispanic students; and expand and enhance the academic offerings, program quality, and institutional stability of colleges and universities that are educating the majority of Hispanic college students. The closing date for this opportunity is July 3, 2025. Click here for additional information.
The House and Senate higher education reconciliation provisions each detail a different layout in Pell eligibility and accountability, while both chambers feature shoring up the Pell shortfall and Workforce Pell in their proposals.
- June 17 - Preservation and Access Education and Training Grant closing date
- June 18, 2 to 3 PM ET - From Data to Action: Student Wellbeing, Financial Stability, and Success Indicators Across the Community College Landscape Webinar
- June 20 - Fire Science Innovations through Research and Education (FIRE) Grant Application Due
- June 25 - Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) Partnership Grants
- July 3- Developing Hispanic-Serving Institutions Program Application Due
- Jul 11, 01:00 PM ET - LAW Live Webinar
- Aug 1, 01:00 PM ET - LAW Live Webinar
- Sep 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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