This week’s top story from the U.S. Department of Education is a major shake-up in higher education policy, as the Trump Administration has sent its new “Compact for Academic Excellence in Higher Education” to nine prominent universities including MIT, Brown, and University of Texas at Austin. Under this compact, these institutions face sweeping new requirements: banning consideration of race, sex, and political views in undergraduate admissions—with narrow exceptions for single-sex and religious schools—capping international undergraduate enrollment at 15 percent, and freezing published tuition and fees. Undergraduate applicants must now take standardized tests to ensure admissions decisions rest only on objective criteria.
These changes, according to the Department, are meant to “restore merit-based opportunity and uphold fairness” across American higher education. Secretary of Education Linda McMahon said, “We are committed to making American higher education a vibrant marketplace of ideas, where different views can be explored, debated, and challenged.” The compact does not address graduate admissions, but it signals a significant shift in how universities operate and represent American values on the world stage.
In Congress, there’s no new money for student aid next year as the Senate Appropriations Committee set the Pell Grant maximum at $7,395—the same as last year—while funding for campus work-study and supplemental grants stays flat. Lawmakers have until September 30th to pass a broader spending bill or risk a government shutdown, which could threaten education programs nationwide.
There’s also movement on the 90/10 rule, which affects for-profit colleges. The Department issued a new interpretation that allows revenue from ineligible distance education programs to count toward a school’s non-federal funding requirements, a clarification meant to address widespread confusion and compliance challenges.
On the program front, the Department announced its largest ever investment in the Charter Schools Grants Program, as well as new funding for American history initiatives and support for Historically Black and Tribally Controlled Colleges and Universities. Secretary McMahon said these funds come “from programs not in the best interest of students and families,” aiming instead to boost successful educational models.
For American families and students, these developments could mean fairer, more merit-focused admissions and a steady but not rising tide of federal aid. Universities and colleges face immediate operational, legal, and financial uncertainties, while businesses and the international recruiting landscape may see ripple effects as foreign enrollment caps reshape talent flows and partnerships.
The National Advisory Committee on Institutional Quality and Integrity will meet October 21 to review accreditation reports and discuss policy priorities. This is one to watch for anyone interested in accountability and quality in higher education.
If you want to weigh in, check federalregister.gov for open comment periods—your voice can help shape these policies. For further details and updates, visit the Department of Education’s newsroom.
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