Federal Update - July 29

July 29, 2026

GOVERNMENT RELATIONS HIGHLIGHTS

AACS Member School Visit Toolkit: New Resource for Building Relationships with Your Elected Officials

DEEPER DIVE: NACIQI Action on NACCAS

House Passes Budget Resolution: Reconciliation Prospects Uncertain 

Higher Ed Battle Lines: Senate and House Chart Different Paths on ED Operations 

Funding Deadline Looms: CR Buys Time Through December 

FAFSA Fraud Prevention: ED Issues New Guidance on Identity Confirmation 

NEW IN-DISTRICT SCHOOL VISIT TOOLKIT

AACS has developed a new resource to assist you in scheduling and effectively hosting your elected officials in your schools. Visit the members-only Info Hub and find the School Visit Toolkit documents under the Resources section. These resources were designed to help you successfully host your local officials–leading to positive community involvement, exposure, and press coverage for your school.

DEEPER DIVE: NACIQI RECOMMENDS REVOCATION OF NACCAS RECOGNITION

What You Need to Know

ED’s National Advisory Committee on Institutional Quality and Integrity (NACIQI) reviews applications from accrediting agencies for new and continued recognition by ED. NACIQI also makes recommendations to ED’s Senior Department Official (SDO) regarding the disposition of those applications. 

At its most recent meeting last week, NACIQI considered applications for continued recognition from several agencies, most notably the National Accrediting Commission of Career Arts and Sciences (NACCAS), as well as the Accrediting Commission of Career Schools and Colleges (ACCSC), the Council on Occupational Education (COE), and the Commission on Massage Therapy Accreditation (COMTA). Each agency appeared before NACIQI to present its application and to address questions and concerns raised by NACIQI members before NACIQI voted on its recommendations.

NACIQI recommended that the SDO deny the NACCAS application for continued recognition. NACIQI also recommended that the SDO continue recognition of ACCSC and COE for approximately one year and require both agencies to submit compliance reports documenting their efforts to address issues where they were found not to be fully in compliance with the recognition regulations. Finally, NACIQI recommended that the SDO continue COMTA’s recognition for five years and require a monitoring report regarding open issues.

Why This Is Important 

The SDO, presumably Education Under Secretary Nicholas Kent, has discretion to adopt, modify, or reject NACIQI’s recommendation and is required to make a determination regarding each agency’s continued recognition within 90 days. If the SDO denies continued recognition to NACCAS or any other agency under review, the agency will have an opportunity to appeal the decision to the Secretary, who will make ED’s final determination regarding recognition. If the Secretary affirms the denial decision, the agency loses recognition barring judicial intervention.

Pursuant to 34 CFR 602.37, if the SDO denies recognition, the agency’s appeal is due to the Secretary within 30 days following receipt of the decision. Once the appeal record is complete, there is no established timeline for the Secretary’s decision, which may take several months. Institutions accredited by the agency under review remain accredited throughout the appeal proceedings. If the agency ultimately loses recognition, ED will give institutions accredited by that agency up to 18 months to secure new accreditation by a recognized agency, during which time their eligibility to participate in Title IV and other federal student aid programs continues uninterrupted. AACS will continue to monitor and report developments on NACCAS’s recognition by ED.

HOUSE BUDGET RESOLUTION MOVES TO SKEPTICAL SENATE

What You Need to Know 

The House departed Washington last week for the August recess after a whirlwind week that included passage of the annual National Defense Authorization Act, a budget resolution launching a third round of reconciliation, a congressional stock-trading ethics bill, and a continuing resolution extending government funding beyond September 30. Speaker Johnson (R-LA) was able to overcome internal opposition and secure passage of the budget resolution, which is expected to yield a reconciliation bill focused on defense spending and agricultural support. However, Senate Majority Leader Thune (R-SD) has downplayed prospects for immediate action, arguing that Congress should first complete work on bipartisan government funding to avoid a government shutdown in October. 

Why This Is Important 

With only a limited number of legislative days remaining before the midterm elections, the likelihood of completing a reconciliation package before the lame duck session of Congress appears increasingly remote. Even if they muster passage of the budget resolution, Senate Republicans remain skeptical of the House's timeline and priorities. Because budget reconciliation was the process Congress utilized to pass OB3, AACS will continue to monitor budget reconciliation closely for impact on our community.

CHAMBERS CHART DIFFERENT PATHS ON US DEPARTMENT OF EDUCATION

What You Need to Know 

Early this month, the House EdWorkforce Committee approved the "Less Bureaucracy, Better Education" legislative package, which would codify ED's previously announced interagency agreements transferring certain functions and programs to other federal agencies. The Senate appears poised to take a markedly different approach. The Senate HELP Committee is expected to consider bipartisan legislation today that would prohibit certain current and future transfers of Department activities.

Why This Is Important 

While the Senate proposal could attract bipartisan support, it would face significant obstacles in the Republican-controlled House and would likely be vetoed by President Trump. The divergent approaches underscore a deepening rift between the chambers on the future of ED despite the Administration’s efforts to shutter the agency.

HOUSE CR EXTENDS FUNDING THROUGH DECEMBER

What You Need to Know 

Acknowledging the diminishing likelihood of completing all 12 appropriations bills before the start of FY2027 on October 1, the House passed a "clean" continuing resolution extending FY2026 funding through December 4. Whether the Senate will adopt the same approach before it leaves town for August recess remains to be seen. Senate Appropriations Committee Chair Collins (R-ME) and Vice Chair Murray (D-WA) are reportedly exploring the inclusion of White House-requested spending anomalies as well as additional funding priorities sought by appropriators.

Why This Is Important 

Senate Republicans will still require the backing of at least six Democrats to advance any funding package, giving Democrats meaningful leverage in shaping the final product. With the Senate in session for two additional weeks, negotiations over potential add-ons to the CR could determine whether a stopgap measure clears Congress before the October 1 deadline or whether lawmakers face renewed shutdown risks upon their return in September. However, Congress does seem focused, at least for now, on trying to avoid a government shutdown immediately before the midterms.

NEW GUIDANCE TO COMBAT FAFSA FRAUD

What You Need to Know 

On July 17, 2026, ED released an Electronic Announcement providing Frequently Asked Questions on “Real-Time FAFSA Fraud Detection and Identity Confirmation.” This is ED’s latest effort to address identify fraud and verification issues plaguing Title IV programs.

Why This Is Important 

Institutions participating in Title IV programs have important roles to play in combatting student aid fraud. ED expects that the guidance it provides in the new Electronic Announcement will help in “minimizing administrative burden while protecting taxpayers, states, and institutions from bad actors seeking to misuse federal funds.”