FSA to Move to SBA, Appeals Court Side with Trump on Anti-DEI Orders, Community College Enrollment Trends
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March 24, 2025
Leading the News this Week
Congress is back in session. Now the Republican majorities in both chambers have the task of taking their different budget resolutions and generating an identical one in order to continue the reconciliation process. Speaker Mike Johnson has made it a goal to finalize the reconciliation process by memorial day.
Meanwhile, on Thursday, President Trump signed an Executive Order (EO) directing Secretary of Education, Linda McMahon to, within the extent of the law, facilitate the closure of the Department of Education (ED). Please read on for the latest on President Trump's plans for the Department.
News in Higher Education
Office of Federal Student Aid to Move to the Small Business Administration
A day after signing the executive order to shut down the Department of Education (ED), President Trump announced that he intends to move the student loan portfolio of $1.7 trillion to the Small Business Administration (SBA). This plan contradicts current law as the Office of Federal Student Aid (FSA) and its functions are, by statute, to be administered by the Department of Education. Therefore, only an act of Congress can permit reassigning FSA's functions to a different government agency. Meanwhile, SBA has announced that it plans to cut over 40 percent of its staff, which comes nearly two weeks after ED enacted a reduction in force (RIF) which downsized ED's staff by nearly 50 percent. Critics of President Trump plans for FSA are unsure of how his administration can fulfill its legal requirements with a greatly reduced federal workforce.
Today, two separate lawsuits were filed one by a coalition consisting of the National Education Association (NEA) and the National Association for the Advancement of Colored People (NAACP) and others and the other by the American Federation of Teachers and the American Association of University Professors among others against the Trump administration claiming that shutting down ED is unlawful and in violation of the Administrative Procedure Act.
Shutting down ED takes an Act of Congress, as such Senator Bill Cassidy (LA) Chair of the Health, Education, Labor, and Pensions (HELP) Committee has stated that he will submit legislation to facilitate the shut down of the Department.
The developments in the federal government are unprecedented, still, ACCT is committed to advocating for the needs of community colleges and their students and will continue the work to promote institutional strength, focus on student success, and highlight community colleges as engines for workforce development, priorities which transcend the shape of the Department. For more on ACCT's perspective on these developments, please review ACCT's statement regarding President Trump's executive order on shutting down ED.
As always, ACCT encourages its members to urge their elected officials to commit to continuing the vitally important programs and oversight regardless of how the federal government is organized. Members and other community college advocates can click here to contact their members of Congress.
Appeals Court Sides with Trump Administration on Anti-DEI Orders
The 4th U.S. Circuit Court of Appeals ruled that the Trump administration can continue implementing its anti-diversity, equity, and inclusion executive orders that were blocked via a preliminary injunction in a lower court. Although the injunction was lifted, the panel of three judges did not determine if the anti-DEI executive orders themselves are illegal. This will be determined at a later time.
Community College Enrollment Trends
On January 23, 2025, the National Student Clearinghouse Research Center published the Current Term Enrollment Estimates: Fall 2024 revealing that even with notable enrollment increases, community colleges aren't back to pre-pandemic levels. Yet, they started post-pandemic recovery a year before public and private nonprofit four-years institutions. Visit ACCT Now for the full article.
ACCT is Asking you to Take Action
Now that Congress was able to avert a government shutdown by passing a continuing resolution that funds the government until September 30, 2025, ACCT is monitoring how reconciliation and appropriations for FY 26 will shape out. Please visit ACCT's Action Center and let your members of Congress know how your institutions leverage federal funds to improve outcomes for students. It is vital to emphasize the specific programs, funding levels, and number of students and staff impacted by possible changes.
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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, please email publicpolicy@acct.org with the subject line "Request for Federal Update Session."
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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