Department of Education Negotiated Rulemaking Update

Below are updates on the U.S. Department of Education’s (ED) recent negotiated rulemaking efforts:

  • On April 20, ED released proposed rules on institutional accountability, largely reflecting language that reached consensus in January. The centerpiece is a new metric called the Student Tuition and Transparency System (STATS), which would require programs to pass an "earnings premium" test—demonstrating that graduates out-earn individuals with only a high school diploma (or a bachelor's degree, for master's programs). Programs failing this test in two of three consecutive award years would lose Title IV direct loan eligibility, with a pathway to regain it. ED is accepting public comments until May 20, 2026. A more detailed analysis of the proposed rules can be found here.
     
  • The Accreditation, Innovation, and Modernization (AIM) committee held its first of two rulemaking sessions April 13–17, 2026, to address ED's proposal to overhaul the federal accreditation framework. AIM stems from President Trump's Executive Order 14279, signed April 23, 2025, which directed ED to reform what the administration called a "dysfunctional accreditation system." Negotiators worked through the Department's 151-page initial draft, with Undersecretary Nicholas Kent signaling the goal is "bold reform" of the current system. The final AIM session is scheduled for May 18–22, 2026. A more detailed analysis of the AIM rulemaking session can be found here.

CSWE will continue to monitor both the AIM rulemaking sessions and ED's proposed accountability rules.

Department of Education Begins Negotiated Rulemaking on Accreditation

On Monday, April 13, the U.S. Department of Education (ED) began to convene the Accreditation, Innovation, and Modernization (AIM) negotiated rulemaking Committee. The negotiated rulemaking stems from the Executive Order titled “Reforming Accreditation to Strengthen Higher Education,” issued on April 23, 2025 by President Trump, directing the Secretary of Education to take several actions related to the recognition of accrediting agencies or associations by the Department. The Department’s initial draft regulations, released last week, include several notable provisions aimed broadly at reducing regulatory barriers, strengthening oversight and compliance expectations, and increasing transparency and accountability in institutional performance and student outcomes.

CSWE will continue to monitor the AIM negotiations as they happen. The first session is slated for the week of April 13-April 17, and the second from May 18-May 22. 

House Schedules Markup of FY 2027 Health and Education Funding Bills

In conjunction with the release of the fiscal year (FY) 2027 budget request on April 3, 2026, Congress has begun the process of determining the funding levels of agencies for FY 2027, slated to begin on October 1, 2026. While the deadline to submit appropriations requests to the House and Senate have passed, the House Appropriations Committee has scheduled various mark-ups of funding legislation, with the bill funding programs within HHS and ED to occur on Friday, June 5 and Tuesday, June 9, 2026. Over the next months, Administration officials will also provide testimony on Capitol Hill to key budget and appropriations committees. The House has not yet released their anticipated bill and report language outlining funding details, anticipated to be available closer to the June dates. The Senate Appropriations Committee has not yet scheduled their markups.

CSWE will monitor the progress of negotiations between both chambers as Congress decides funding levels heading into the next fiscal year. 

White House Releases 2027 Budget Request: View CSWE’s Statement

On Friday, April 3, the White House Office of Management and Budget released President Trump’s fiscal year (FY) 2027 budget request. The budget proposes large reductions and eliminations of various geriatric, health professions, and mental and behavioral health programs that are essential to preparing and sustaining the nation’s behavioral health and social services workforce.

For programs within the Department of Education (ED):

  • The budget request proposes level funding of the maximum Pell Grant award at $7,395 for the 2027-2028 award year. 
  • It would fund the Federal Work Study (FWS) program at $123 million, a decrease of approximately $1.1 billion, and notably proposes reforming FWS to require employers to pay 90% of student wages. 

For agencies within the Department of Health and Human Services (HHS):

  • The request would provide $17.6 billion for a new operating agency called the Administration for a Healthy America (AHA). AHA would consolidate key functions of the Health Resources and Services Administration (HRSA), Substance Abuse and Mental Health Services Administration (SAMHSA), among others into the new agency. 
    • SAMHSA would be funded at $6.8 billion but notably would eliminate the Minority Fellowship Program (MFP) and Scholarships for Disadvantaged Students. 
    • HRSA would be funded at a total of $1.9 billion in discretionary funding, including $129.3 million for Behavioral Health Workforce Development Programs, including the Behavioral Health Workforce Education and Training Program, and Substance Use Disorder Treatment and Recovery Loan Repayment Program. 

CSWE’s official statement regarding the FY2027 budget request is available here.