The U.S. Department of Education is considering changes that would expand its discretion over federal grantmaking while also taking action through the federal recognition process for accrediting agencies.
The developments involve separate regulatory and administrative processes, but both affect systems that shape how colleges and universities receive federal funding and participate in the federal higher education system.
The grantmaking changes were the subject of a proposed rule published by the department in August. The EDU Ledger previously reported on the proposal, which would change how the department administers federal grants and give the secretary greater discretion over certain funding decisions.
The proposed rule would revise the Education Department General Administrative Regulations and related provisions governing federal financial assistance. Among the proposed changes, the department would have greater discretion over continuation funding for multiyear grants and could terminate discretionary grants “for convenience,” in addition to existing termination authorities. The proposal also would allow the department to consider whether an applicant voluntarily accepts a lower indirect-cost rate when awarding discretionary grants.
The proposed rule also would require states and subrecipients receiving certain Education Department grants to comply with presidential executive orders. The department said the changes would allow it to prioritize merit, improve outcomes, and protect taxpayer dollars.
Higher education organizations raised concerns about the proposal during the comment period. The American Council on Education submitted comments on behalf of 40 organizations, arguing that the proposal would codify actions that have created uncertainty for institutions, faculty, students, and communities.
The proposed regulations are not final. The department must review the public comments before determining whether to issue a final rule and whether to make changes to the proposal.
The EDU Ledger's August coverage also noted that the department's proposal is part of a broader effort to revise federal rules governing financial assistance, including changes proposed by the Office of Management and Budget.
NACIQI Takes Action on Accreditors
The accreditation developments came during a Sept. 23-24 meeting of the National Advisory Committee on Institutional Quality and Integrity, or NACIQI, which advises the department on the recognition of accrediting agencies. The department's federal recognition process for accreditors also produced several developments this week.
NACIQI voted 7-4 to recommend suspending federal recognition of the American Psychological Association Commission on Accreditation. The recommendation followed testimony and written comments raising concerns about antisemitism and other issues involving programs accredited by the commission. The recommendation now goes to Under Secretary Nicholas Kent for a final determination.
The APA Commission on Accreditation is a programmatic accreditor. Its federal recognition does not determine whether an institution is eligible to participate in federal student aid programs.
NACIQI also declined to make a recommendation on whether to renew or deny recognition of the American Bar Association's Council of the Section of Legal Education and Admissions to the Bar after members failed to reach agreement. The Education Department had previously recommended against renewing the council's recognition. Under Secretary Kent will make the final decision without a NACIQI recommendation.
The committee recommended renewing recognition for the Commission on Colleges and Universities, formerly known as the Southern Association of Colleges and Schools, with a follow-up report required within one year.
NACIQI's recommendations are not final decisions. Under the federal recognition process, the designated senior Education Department official makes the final determination, based on the NACIQI recommendation, department staff analysis, the meeting transcript, third-party comments and other relevant information.
The department does not accredit colleges or universities itself. Rather, the secretary recognizes accrediting agencies that the department determines are reliable authorities on the quality of education or training provided by the institutions and programs they accredit. For institutional accreditors, federal recognition generally allows the institutions they accredit to establish eligibility for participation in federal Title IV programs.
The EDU Ledger has previously reported on proposed changes that would eliminate the current two-year operating requirement for new accrediting agencies and make peer review optional, among other changes. The public-comment period for that proposal closed Sept. 21.
What Happens Next
Grantmaking and accreditation proceedings remain ongoing.
For the grantmaking proposal, the Education Department will review the more than 5,500 comments received before deciding whether to finalize the rule and whether to modify its provisions.
For accreditation, the department will make final decisions on the APA and ABA recognition matters following the NACIQI meeting. The proposed changes to the federal recognition regulations also remain under consideration following the close of the Sept. 21 comment period.
The two processes address different aspects of federal higher education policy. The grantmaking proposal concerns the administration and continuation of federal financial assistance. The accreditation proceedings concern the federal recognition of independent accrediting agencies.
Both will continue to shape the regulatory environment in which colleges and universities operate as the Education Department moves through the next stages of each process.
