Day 9 of the Government Shutdown, Challenge to Gainful Employment Rule Dismissed in Court, The Trump Administration Talks with Finance Executives on Selling Federal Student Loan Debt
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October 9, 2025
Leading the News this Week
Today marks the ninth day of the federal government shutdown. While the House of Representatives was originally scheduled to be in session this week, Speaker Johnson has cancelled votes and designated the week as a district work period, just like he did last week for the last two days of September. Speaker Johnson has indicated that the House will not return until the Senate has passed the Republican-led CR that the House passed before leaving town. As has been the case in the past, the longer a shutdown lasts, the more programs and federal agencies that may be impacted by the closures, and the more likely it could impact our colleges and students. Please continue to the next section for the latest updates.
News in Higher Education
Day 9 of the Government Shutdown
The Senate has failed to pass either the Democrat-led or the Republican-led Continuing Resolutions (CR) to reopen the government seven times since the start of the government shutdown. While Senators from both parties have not yet struck a deal on how they will reopen the government, some have initiated bipartisan talks.
Meanwhile, the House is in recess until October 13th, signaling that the House has no intention of altering its Republican-led CR passed weeks ago.
Overall, it is uncertain when the government will reopen as bipartisan negotiations are still distant. Democrats are aiming for an extension of the Affordable Care Act tax credits set to expire in December and the guarantee that the Trump administration will not attempt to cancel Congressionally agreed-upon funding. The Republicans have stated that they are willing to address these concerns after the government is reopened. The Trump administration has increased the stakes by issuing a memo that indicates that furloughed employees are not entitled to backpay, despite having signed the bipartisan "Government Employee Fair Treatment Act" into law in his first term, which works to retroactively pay government employees upon the end of a government shutdown.
Challenge to Gainful Employment Rule Dismissed in Court
Last week, a U.S. District judge ruled against cosmetology school groups who argued that the Department of Education unlawfully issued Gainful Employment regulations, as the Higher Education Act does not define Gainful Employment. The ruling asserts that the Gainful Employment Rule is aligned with the Higher Education Act, even if it is in the form of an equation.
The Biden-era Gainful Employment rule states that for career education programs, "the median program graduate must pay no more than 8% of their annual earnings or 20% of their discretionary income toward their debt, or "least half of a program’s graduates must outearn workers in their state with only a high school diploma." Programs that fail one of these metrics in two out of three consecutive years may lose access to federal financial aid.
Meanwhile, the Trump administration is considering making changes to this rule.
The Trump Administration Talks with Finance Executives on Selling Federal Student Loan Debt
Officials in both the Treasury and Education Departments met with executives from the finance industry as the administration is considering selling its $1.6 trillion student loan portfolio, which is legal though unprecedented. This comes in the wake of President Trump's executive order to close the Department of Education and move the student loan portfolio to the Small Business Administration, both of which require Congressional approval.
Should the Trump administration move forward with this plan, policy experts mentioned that it is unclear if borrowers would be able to retain their current payment plans, borrower protections, and forgiveness options. This would be in addition to potentially losing features in automation and data matching that allow agencies such as the Veterans Affairs Administration and Social Security Administration to determine which borrowers are eligible for loan discharge.
Join Us in Advocacy
As a reminder, in this appropriations cycle, ACCT is advocating for members of Congress to fund programs such as Child Care Access Means Parents in School (CCAMPIS) and the Strengthening Institutions Program (SIP). These programs provide much-needed support for students and institutions.
To move forward with our advocacy and communicate with lawmakers the importance of CCAMPIS and SIP, we need your help! We urge you to please share with us how your campuses have benefited from CCAMPIS and SIP at publicpolicy@acct.org.
Also, we call upon you to participate in our Action Campaign and let your member of Congress know the devastating effects should CCAMPIS and SIP no longer exist.
- October 15, 2:00 PM ET: California's Bridge to Opportunity: Investments in Dual Credit Pathways
- October 22 - 25: ACCT Leadership Congress
- November 7, 01:00 PM ET: LAW Live Webinar
- December 5, 01:00 PM ET: LAW Live Webinar
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.
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