Federal Update - September 23

September 23, 2026

GOVERNMENT RELATIONS HIGHLIGHTS

STATS Reporting Decision: Institutions Face October 1 Deadline 

Last Push Before Midterms: Congress Leaves Unfinished Business to Year-End 

EdWorkforce Leadership in Play: Democrats Eye Generational Change 

Accreditor Scrutiny Continues: NACIQI Meeting This Week 

BDR Updates Ahead: ED Hosts Training on New Response System 

ACCOUNTABILITY FINAL RULE DEADLINE IS NEXT WEEK

What You Need to Know 

All Title IV-eligible AACS member institutions must decide by next Thursday, October 1 whether to early implement the Department’s Accountability in Higher Education and Access Through Demand-Driven Workforce Pell: STATS and Earnings Accountability Final Rule. Schools notify the Department of their choice through their annual reporting submission. Specifically, schools will report under either (1) the Accountability Final Rule requirements to early implement or (2) the FVT/GE Rule requirements to decline early implementation. Please see Electronic Announcement GENERAL-26-49 for reporting details.  

Why This Is Important  

For many schools, early implementation may be the most attractive option to avoid the more burdensome FVT/GE Rule reporting requirements. Be sure to check with legal counsel and financial aid professionals before making a final determination.  

LAWMAKERS HEAD HOME WITH UNFINISHED BUSINESS

What You Need to Know 

The House concluded business last week and is not expected to return until after the November elections. The Senate returned to Washington last week and may depart later this week. Neither body made progress on major legislative priorities, including annual appropriations, a potential third reconciliation bill, the Farm Bill, or the annual defense bill. They also did not manage to enact any significant legislation that would resonate with voters ahead of the elections. 

Why This Is Important 

The continuing resolution signed earlier this month extends government funding through December 11, guaranteeing that Congress will face another funding deadline after returning to Washington. As a result, the lame duck session is shaping up to be one of the busiest in recent years.  

EDWORKFORCE DEMOCRATIC LEADERSHIP RACE

What You Need to Know 

House Education and Workforce Committee Ranking Member Bobby Scott (D-VA) could face a leadership challenge ahead of the 120th Congress. Representatives Suzanne Bonamici (D-OR) and Jahana Hayes (D-CT) are reportedly exploring bids to lead the Democrats on the committee. The potential challenge comes as some Democrats push for generational change within the caucus. Leadership elections are expected later this year. 

Why This Is Important 

A change in Democratic leadership could influence the party's approach to higher education policy in the next Congress. Both Bonamici and Hayes are generally viewed as more progressive than Scott on education issues, though the practical impact would depend on whether Democrats retake the House majority in November. On the Republican side, Chairman Tim Walberg (R-MI) is expected to remain in the top Republican role. 

NACIQI TO MEET THIS WEEK

What You Need to Know  

The National Advisory Committee on Institutional Quality and Integrity (NACIQI) is meeting today and tomorrow. The public may attend virtually by registering here. NACIQI is the body that applies ED’s regulatory standards for accrediting agencies and makes recommendations regarding which accrediting agencies have ED “recognition.” A school must be accredited by an ED-recognized accreditor to participate in the federal financial aid programs. NACIQI will consider the recognition renewal applications for the following accreditors at the meeting:  

• American Bar Association  
• Accrediting Bureau of Health Education Schools  
• Accreditation Commission for Acupuncture and Herbal Medicine  
• American Psychological Association  
• Southern Association of Colleges and Schools, Commission on Colleges  
• Transnational Association of Christian Colleges and Schools, Accreditation Commission  

NACIQI will also consider the compliance report of the Commission on Accreditation in Physical Therapy Education.  

Why This Is Important  

ED staff have prepared a report that urges NACIQI to withdraw recognition from the American Bar Association (ABA), which NACIQI will consider at the meeting, potentially placing the ABA in the same position as NACCAS. Though NACCAS is not on the agenda for the meeting this week NACIQI voted 9-3 in July to recommend that ED withdraw recognition from NACCAS. This recommendation is an important step and does indicate risk, but it is not a final decision. The matter is now with ED’s Senior Department Official, who has until October 20 to decide whether to accept, reject, or modify NACIQI’s recommendation. There may also be additional steps after that decision, including an appeal and a possible legal challenge. This means the final outcome for NACCAS may not be known for some time. If NACCAS ultimately loses federal recognition, NACCAS-accredited schools would have up to 18 months to obtain accreditation from another recognized accreditor.  

Relatedly, the Accreditation, Innovation, and Modernization proposed rule comment period closed on Monday. The final rule is anticipated before November 1. If implemented as proposed, the rule would make it easier to change or add an institutional accreditor with ED. 

ED TO HOST BDR OFFICE HOURS TODAY

What You Need to Know 

In a September 10 Dear Colleague Letter, ED announced that, beginning in October, schools will use FSA Partner Connect to respond to borrower defense to repayment (BDR) applications. ED states that the new BDR Partner Connect feature will streamline schools’ ability to upload evidence in support of school responses to claims, provide improved search tools, and offer explanations regarding the version of the BDR rule applicable to claims.  

Why This is Important 

Today from 1:00-2:30 ET, the ED will host a webinar for school administrators on how to navigate the new BDR Partner Connect feature. School administrators can join the webinar at this link. A recording of the webinar, along with other self-paced training materials, will be made available through the Partner Connect “Systems Training” tab.