It is hard to believe that we have already entered March 2025, the third month of the year. While time has certainly gone fast, in these two short months, we have seen numerous executive orders (EO) issued by President Trump—one in particular pertinent to the higher education industry.
On January 27, 2025, the president issued an EO focusing on freezing certain federal funding. While this EO was quickly halted due to a temporary restraining order (TRO) filed by a coalition of organizations, uncertainty remains as to the ultimate outcome and related impacts.
As a result, on February 10, 2025, the court ordered that the administration accomplish the following immediately and throughout the TRO:
- Restore frozen funding
- End any federal funding pause
- Take every step necessary to effectuate the TRO, including clearing any administrative, operational or technical hurdles to implementation
- Comply with the TRO’s terms
- Restore withheld funds, including those appropriated in the Inflation Reduction Act and Infrastructure Improvement and Jobs Act
- Resume funding for institutes and agencies, including the National Institute for Health
The Dear Colleague Letter
As an additional layer of change facing higher education institutions, a Dear Colleague Letter (DCL) was issued by the United States Department of Education’s (Department) Office for Civil Rights.
On February 14, 2025, the Department issued a DCL reiterating existing legal requirements under Title VI of the Civil Rights Act of 1964. The focus of the letter explains that the Department will no longer tolerate what it deems to be overt and covert racial discrimination as all students are entitled to a school environment free from discrimination.
In the DCL’s closing remarks, it is clear that the Department is focusing on this issue, noting all education institutions are advised to:
- Ensure that their policies and actions comply with existing civil rights law
- Cease all efforts to circumvent prohibitions on the use of race by relying on proxies or other indirect means to accomplish such ends
- Cease all reliance on third-party contractors, clearinghouses or aggregators that are being used by institutions in an effort to circumvent prohibited uses of race
What Should Higher Education Institutions Do Now?
In regard to this specific DCL, the National Association of College and University Business Officers (NACUBO) released an update on the new federal guidance on race-based policies. Near the end of this update, NACUBO provided a list of ‘what institutions should do now,’ which is summarized below:
- Engage legal and compliance teams
- Conduct an institutional policy audit
- Communicate changes to leadership and stakeholders
- Monitor legislative and federal developments
In my opinion, the 4th point listed by NACUBO has to be one of the most notable in the current environment, monitoring change. If you aren’t actively monitoring all that is happening, it may be a challenge to adequately address the needs of the institution by choosing the best path to respond to what is coming.
From January 1, 2025, to today, we’ve been on a winding path made up of a few bumps and potholes brought on by change forced upon the industry. All signs point to the path ahead being just as dynamic. Continue to monitor legislative and federal developments (the change coming) and check our website for details on further changes.
About Schneider Downs Higher Education Services
The Schneider Downs Higher Education industry group is a dedicated team of experienced professionals specializing in serving institutions from high schools to universities. Our experience in audit and assurance, tax advisory, technology and data and more allow our professionals to stay ahead of the latest trends, developments and challenges within the education sector and provide timely and practical solutions to our clients.
To learn more, visit our Higher Education Industry Group page.
