AGB Policy Alert: Act Now—Budget Reconciliation Bill Impacting Higher Education Could Be Finalized by July 4

With fewer than three weeks remaining before the July 4 legislative recess, Congress is accelerating its work on the budget reconciliation bill, which recently passed the House and is now being debated in the Senate. This comprehensive legislation carries significant consequences for higher education. It could impact institutions across the country. Provisions under consideration include substantial reforms to the Pell Grant program, an increase in the endowment excise tax, and the introduction of new risk-sharing requirements tied to student loan repayment rates.

Board members and institutional leaders must collaborate closely and advocate for their institutions’ interests as negotiations intensify in the Senate.

What’s at Stake

1. Pell Grant

• Raising the threshold for full-time enrollment to 30 credit hours per year and eliminating eligibility for students attending less than half-time would significantly restrict access to Pell Grants.
• These changes would disproportionately impact millions of low-income students, undermining college access and completion.
• Coupled with increased federal scrutiny and proposed restrictions on international student admissions and visa processing, these changes threaten to drain billions of dollars in tuition revenue and local economic contributions, debilitating institutions and their ability to serve students and communities effectively.

2. Excise Taxes on Endowments

• An increase in excise taxes on college endowments will diminish institutional capacity to fund scholarships, sustain programs, and invest in research and innovation.

3. Risk-Sharing for Student Loan Defaults

• Proposed penalties based on the nonrepayment of student loans would expose institutions to severe financial risk and create disincentives to serve underrepresented or high-need students.

Call to Action: Reach Out—Together

1. Coordinate Advocacy Efforts Across the Institution

• Board members and presidents/chancellors should align strategy and messaging before engaging federal representatives.
• Unified outreach amplifies credibility and demonstrates a shared commitment to student success and financial stewardship.

2. Meet with Your Members of Congress

• Immediately request meetings with your House and Senate delegations.
• Prioritize outreach through individual contacts to your local members of Congress whose support will be pivotal in shaping the final version of the bill.

Use Your Data to Demonstrate Impact

Bring clear, compelling data and facts that speak to your institution’s reality and your community’s stake in the federal budget. Note specifically:

• The number of Pell Grant recipients and projected impact of funding changes.
• The estimated costs from proposed excise taxes.
• The potential loss of jobs, programs, or services, and the return on investment (ROI).
• The regional economic impact of your institution.

A Need for Urgency—Speak Up Now

The House already passed its version of the bill, and the Senate is poised to act quickly, with only weeks remaining before the July 4 deadline targeted by GOP congressional leaders to deliver a final budget reconciliation bill to the president’s desk. This means the window to shape the bill’s outcome is rapidly closing. If higher education leaders do not raise their voices now, we face the real prospect of lasting harm to college access, student affordability, and institutional stability. The next three weeks are critical. Silence is not an option.

Immediate Action Steps

• Align advocacy strategy between board and campus leadership.
• Schedule meetings with your congressional delegation next week.
• Use institutional and local data and facts to make your case for the impact on your institution.

This is a defining moment for higher education. We are at a crossroads that demands bold, unified leadership. By standing together—board members and institutional leaders—we can safeguard student opportunity, preserve institutional strength, and defend the future of higher education itself. The decisions made in the coming weeks will affect changes for years.