The federal budget reconciliation process is a legislative procedure allowing Congress to modify spending, revenue, and debt limit laws through expedited means. This streamlined process is crucial because it requires only a simple majority in the Senate, with limited time for debate and amendments. For the Presidents Forum, reconciliation presents a valuable opportunity to advocate for key federal investment priorities, including Pell Grant reform, military tuition assistance, and expanded dual enrollment support. Our upcoming Washington, D.C., meetings will enable our Presidents to share vital insights with congressional members regarding these important funding priorities.

On February 24th, the Department of Education released detailed guidance on combating Pell fraud. Guidance and updates included:

• Enhanced identity verification processes being implemented by Federal Student Aid
• Critical reminder of institutional requirements for detecting and reporting fraud
• The Department’s comprehensive fraud prevention strategy

As institutions continue to face sophisticated fraud schemes targeting Title IV aid, the Department emphasizes that schools must:

• Report suspected fraud to their School Participation Division
• File Suspicious Activity Reports (SARs) with FinCEN when appropriate
• Implement robust monitoring procedures for distance education programs

The Presidents Forum remains committed to eliminating Pell fraud and is always looking for opportunities to increase efficiency, transparency, and accountability in higher education.

You can read the entire announcement at https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2025-02-24/update-identity-verification-and-reminder-institutional-requirements-reporting-fraud.

Significant leadership changes are underway at the Department of Education. Linda McMahon’s confirmation hearings for Secretary of Education signal potential shifts in federal education policy and priorities. The White House has also nominated Nicholas Kent, who brings extensive career education experience, for the position of Under Secretary.

Linda McMahon Confirmation Hearings

The Senate confirmation hearing for Linda McMahon as the Secretary of the Department of Education was held today. Senators from both parties questioned McMahon about her vision for the department’s future direction. Topics of discussion included:

• The elimination of the Department of Education, including shifting specific programs to other executive agencies and providing federal funding directly to states
• Civil rights issues
• Student loan and student loan forgiveness programs
• Teacher recruitment, retention, and pay
• Solutions for undesirable student outcome data
• Alternative education methods including career and technical education, skill-based learning, credentialing, and apprenticeships
• Accreditation agencies

Nicholas Kent Nomination

The White House has officially announced Nicholas Kent as the nominee for Under Secretary of Education. Mr. Kent’s background includes:

• Deputy Secretary of Education of Virginia
• Chief Policy Officer at Career Education Colleges and Universities (CECU)
• Extensive experience in legislative affairs and accreditation

Based on his background and experience, we anticipate Mr. Kent may advocate for:

• Regulatory parity across institutions, regardless of their delivery mode, method, or tax status
• Strengthened credentialing and career licensing systems, with improved state reciprocity and transferability
• Data-driven program evaluation that accounts for the unique characteristics of different fields of study
• Innovation in educational delivery methods
• Reform of gainful employment metrics and implementation

The newest iteration of the Jumpstarting Our Businesses by Supporting Students (JOBS) Act was introduced on February 4th by Senators Kaine, Collins, Smith and Marshall. Currently, Pell Grants can only be used for traditional two and four-year college programs. This expansion would allow students to use these grants for quality training programs that are at least 8 weeks long and lead to industry-recognized credentials.

Key aspects of the proposed changes:

• Programs must be at least 150 clock hours over 8+ weeks
• Training must align with local workforce needs
• Programs must provide credentials recognized by employers
• Credits can transfer toward further education

This expansion could help address the current skilled labor shortage while making career training more accessible to students who need financial assistance. “This bill is good for workers, good for employers, and good for our economy as a whole” said Senator Tim Kaine.