Federal Policy Update: What Boards Need to Know in 2026

As 2025 drew to a close, the December meeting of the Council of Board Professionals focused on the high-pressure environment higher education faces at the federal level. The sheer volume of sweeping changes that higher education experienced during the past year will continue in 2026, so public, private, and foundation governing boards must remain vigilant and be prepared. Board professionals are essential partners for board chairs, presidents, and other higher education leaders in ensuring that governing boards are aware of and understand the proposed changes.

Well-positioned and coordinated board advocacy initiatives can launch constructive dialogues with policymakers, local community leaders, and other important institutional stakeholders. AGB’s recent digital tools, Engaging Governing Board Members as Strategic Advocates and Engaging Foundation Board Members as Strategic Advocates, provide helpful guidance to empower board members to become “trustee influencers,” as one council member put it, through social media and other avenues. Additionally, AGB will convene an advocacy webinar, Align. Advocate. Act: Collective Strategies for Higher Education Leadership on January 29, 2026, to further equip board members and other leaders to address ongoing challenges.

The Administration’s Compact Initiative

The executive branch has been aggressive in trying to shape higher education policy, most notably through its “Compact” proposal. This pledge asked institutions to commit to measures such as tuition freezes, limits on international enrollments, and restrictions on inclusive excellence. Although most institutions declined to sign, elements of the Compact have already appeared in some settlements which administration officials negotiated with institutions, signaling some ideas might remain alive. Further, federal officials might release a revised “Compact 2.0.”

For governing boards, the takeaway is clear: Even if your institution is not directly targeted, evaluate how such initiatives could affect governance. Public institutions’ tuition decisions, for example, often rest with state legislatures rather than with boards, complicating compliance with federal directives.

Borrowing Limits and Earnings Tests for Graduate and Professional Students

Another major change stems from the budget reconciliation bill, often referred to as the “One Big Beautiful Bill Act.” This legislation introduced new student borrowing limits for graduate and professional programs. Nursing programs and other disciplines excluded from the “professional” designation have voiced strong objections, but experts predict little immediate change. See AGB’s recent policy alert and this Trusteeship magazine article for additional insights.

Forthcoming programmatic earnings tests are even more consequential. These regulations will measure graduates’ earnings against debt levels to determine whether programs remain eligible for federal loans. Institutions serving students in lower paying professions—such as social work or early childhood education—could face significant impacts. Boards should assess their reliance on graduate student borrowing and prepare for potential shifts in student demographics and program viability.

Accreditation and Regulatory Expansion

Accreditation rules also might change. Although details remain unclear, revisions could have implications for all institutions. Leaders should keep accreditation on their watch lists and prepare for adjustments in compliance requirements.

Transfers of Education Department Programs and Administrative Challenges

Several U.S. Department of Education programs—including TRIO and GEAR UP—are being transferred to the U.S. Department of Labor. This shift introduces new systems, grant interfaces, and personnel, raising the likelihood of delays in funding. Institutions relying on these programs should prepare for administrative challenges and potential hiccups in resource distribution. For more, see this AGB policy alert.

Congressional Gridlock and Funding Risks

Finally, Congress remains stalled on fiscal year 2026 appropriations. With a continuing resolution expiring at the end of January, the risk of another federal government shutdown looms. Although the likelihood of a shutdown is low, delays could threaten the flow of federal funds, including Pell Grants, TRIO support, and campus-based aid. Boards must monitor these developments closely, as funding disruptions could affect institutional budgets and student support services.

AGB’s Strategic Priorities

AGB is committed to strengthening governance at the institutional level and through public policy. More information about AGB’s advocacy and public policy efforts is available here.

Future efforts will include:

1. Reaffirming board roles and responsibilities to ensure clarity in governance structures.
2. Supporting higher education leaders by equipping presidents, trustees, and board professionals with tools for success.
3. Improving student success and access while keeping inclusive excellence and outcomes at the forefront.
4. Ensuring institutional vitality through strengthening financial and operational sustainability.
5. Managing uncertainty by preparing boards to navigate volatility in policy and funding.
6. Clarifying higher education’s purpose through reinforcing the societal value of colleges and universities.

These themes also will shape upcoming AGB conferences, including the Board Professionals Conference on March 26–28, 2026, and the National Conference on Trusteeship on March 28–30, 2026, in Denver. Board professionals are central to these efforts, providing insights which inform board education, advocacy strategies, and member support.

Conclusion: Resilience and Foresight

Resilience will be critical for board professionals in 2026. They must help their boards navigate overlapping issues—policy changes, funding uncertainties, potential accreditation shifts—while focusing on student success and institutional vitality. Fortunately, AGB provides resources to help governing boards understand the current public environment and effectively advocate for their institutions. Staying informed, proactive, and adaptable will be essential as higher education faces another year of significant challenges.

Lynnette M. Heard is an AGB consultant, senior fellow, and a council ambassador.