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AGB Policy Alert: Executive Order on Accreditation Implications for Governing Boards

By AGB April 24, 2025 AGB Alerts

This AGB Policy Alert is based on policy developments current as of the date posted. Given the evolving nature of legislative and judicial activity, content may become outdated. For the most recent updates and guidance, please refer to the latest AGB Policy Alerts available at AGB.org/Advocacy/Policy-News.

The new Executive Order issued by the president on April 23, 2025, introduces sweeping changes to the higher education accreditation system in the United States. The order seeks to redefine federal oversight by emphasizing accountability, institutional outcomes, and a rejection of what the administration views as unlawful discriminatory practices embedded in diversity, equity, and inclusion (DEI) standards and requirements.

This alert outlines the key components of the Executive Order and provides strategic guidance for governing boards navigating this transformative regulatory landscape.

Key Points of the Executive Order

While the secretary of education must now implement this order and lay out the specific steps for compliance, the order has several major themes:

  1. Reorienting Federal Oversight Toward Student Outcomes
    • Accreditors must now evaluate institutions primarily on measurable student outcomes and may not use race, ethnicity, and gender data to improve those outcomes.
    • Accreditation must promote academic programs that are high-quality, high-value, and financially sound for students.
  1. Restricting DEI-Based Accreditation Standards
    • Federal recognition will no longer be extended to accreditors that impose DEI standards deemed unlawful or discriminatory under federal law.
    • Specific examples include DEI mandates by the American Bar Association and medical education accreditors. The order directs federal agencies to investigate and potentially derecognize these mandates.
  1. Increasing Accountability for Accreditors
    • The Department of Education is tasked with suspending or terminating accreditors that:
      • Violate federal law through unlawful DEI requirements.
      • Intrude on state and local governance.
  1. Promoting Competition and Innovation
    • The Department of Education will recognize new accrediting bodies in order to diversify the accreditation landscape to foster competition and innovation.
    • Institutions will be able to streamline the process when switching accreditors, especially when current accrediting standards conflict with institutional values or state laws.
  1. Structural Changes in Oversight and Enforcement
    • An experimental site will be launched to test new quality assurance models to ensure higher education institutions provide high-quality, high-value academic programs.
    • The Accreditation Handbook and review process will be modernized to streamline recognition and increase transparency.

Key Implications for Governing Boards

  • Accreditor Derecognition and Funding Risk—Institutions face a heightened risk of losing access to Title IV federal aid if their accreditor is derecognized. While institutional accreditors are not going away anytime soon, governing boards should monitor accreditor status and assess risk exposure.
  • Governance, Autonomy, and DEI—While the Executive Order criticizes DEI-based accreditation standards, boards should reaffirm institutional mission and values, particularly around inclusion, academic freedom, and student success.
  • Uncertainty and Legal Exposure—Federal actions, including potential investigations and derecognition proceedings, could create institutional uncertainty. Boards must be prepared for legal and strategic impacts.
  • Innovation and Regulatory Opportunity—Provisions encouraging new models and accreditors could benefit institutions prepared to adopt flexible and data-driven quality assurance strategies.

Strategic Recommendations for Governing Boards

  1. Assess Accreditation Compliance and Preparedness—Review existing contingency plans or develop new strategies to navigate potential changes in accreditation status.
  2. Engage Legal and Compliance Counsel—Consult regularly with legal teams to understand exposure to federal enforcement actions and changes in accreditation-related law.
  3. Update Trustee Training—Once new requirements are in place, equip board members with an understanding of the new accreditation landscape, particularly around outcome measures and potential derecognition scenarios.
  4. Strengthen Institutional Data Capabilities—Prioritize investment in student outcomes tracking to meet the new data-driven accreditation mandates.
  5. Protect Institutional Integrity—Continue to uphold institutional commitments to equity, transparency, and mission—even as the regulatory environment evolves.

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Questions for Governing Boards to Consider

  • How is our accreditor responding to this Executive Order?
  • Are we prepared to defend our accreditation compliance in the face of shifting legal standards?
  • How will changes to DEI enforcement affect our institutional mission and strategy?
  • Are our internal governance and data systems robust enough to meet new outcome-driven standards?

Call to Action

The Executive Order directs the Department of Education to redefine accreditation standards to emphasize performance metrics and challenge long-standing DEI practices. Governing boards must respond with strategic foresight, reaffirm institutional integrity, safeguard access to federal aid, and actively partner with presidents, accreditors, and policy leaders to navigate this evolving landscape. Accreditation remains foundational to institutional legitimacy, student access, and public confidence. Board leadership is essential in preserving both academic excellence and institutional resilience.

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