This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning colleges, universities, campuses, international students, student housing, research initiatives, and federal research funding opportunities. Once a week, we break down the most important updates in this space in under five minutes.

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Dates: 2026-04-19 to 2026-04-25

📋 In This Week's Newsletter

• 🇺🇸 Federal Government News
• 📜 Legislative Updates
• 🗺️ State Government News
• 📚 What We're Reading This Week

Federal Government News

Department of Education Proposes Overhaul of Title IV Institutional Accountability

The Department of Education published a comprehensive notice of proposed rulemaking (NPRM) to revise the accountability framework for higher education institutions receiving Title IV funds, implementing changes from the One Big Beautiful Bill Act (OBBB), signed into law in July 2025. The proposal eliminates the debt-to-earnings metric, replaces it with a revised 'earnings premium' test, and makes loss of Direct Loan eligibility the principal consequence for low-earning outcome programs. All institutions—public, nonprofit, and proprietary—will be subject to the earnings-based accountability standard. Program eligibility will be judged using median graduate earnings against state or national earnings thresholds determined by Census Bureau data. The proposal details updated reporting requirements for institutions, data privacy safeguards, and an appeals process restricted to calculation errors. The rule also modifies administrative capability standards and adjusts warning notification requirements for students in at-risk programs. Comments on the proposed regulation are due by May 20, 2026.

Sources: www.federalregister.gov

Federal Student Aid Updates Systems for Aggregate Loan Caps and 'Legacy' Borrowers

Federal Student Aid (FSA) announced modifications to several major systems of records—including the Common Origination and Disbursement (COD) System, National Student Loan Data System (NSLDS), Common Services for Borrowers (CSB), and Aid Awareness and Application Processing systems—to implement new loan limits, 'legacy' borrower status, and administrative provisions from recent legislative changes. System updates include tracking tiered unsubsidized loan caps for graduate and professional borrowers, new lifetime Parent PLUS loan aggregate caps per dependent, and non-PLUS lifetime limits. The notices detail retention policies for student, parent, and endorser records, clarify procedures for 'legacy' borrowers who retain pre-2026 loan terms during transition, and describe authentication enhancements for FAFSA and loan servicing portals. The re-established matching program with the Department of Veterans Affairs also aims to expedite total and permanent disability discharge for eligible borrowers.

Sources: www.federalregister.gov, www.federalregister.gov, www.federalregister.gov, www.federalregister.gov, www.federalregister.gov

White House Order Funds Psychedelic Mental Health Research for Veterans

President Trump signed an Executive Order prioritizing research and expanded access to FDA-approved psychedelic medications for mental health conditions, with a focus on veterans. The order provides $50 million in federal funding, establishes a streamlined regulatory pathway for clinical trials using treatments such as ibogaine and psilocybin, and introduces Right to Try provisions for qualifying medical conditions. Veterans' groups and bipartisan lawmakers praised the action, citing high suicide rates and limited alternatives. Federal agencies are directed to accelerate science-based studies and ensure safe access to innovative therapies while coordinating with the Department of Veterans Affairs to support clinical research networks.

Sources: www.whitehouse.gov

Survey of Postgraduate Employment for Foreign Language and Area Studies (FLAS) Fellowship Program

The Office of Postsecondary Education opened a public comment period for revisions to its biennial survey of postgraduate employment outcomes for Foreign Language and Area Studies (FLAS) Fellowship recipients. The survey, required by statute, collects employment, education, and training information from former fellows to monitor program outcomes and compliance. The agency estimates approximately 10,000 annual respondents, with an updated estimate of 1,300 annual burden hours. The comment period closes June 22, 2026.

Sources: www.federalregister.gov

NOAA Proposes Changes to Higher Education Scholarship, Fellowship, and Internship Programs Data Collection

The National Oceanic and Atmospheric Administration (NOAA) submitted a revised information collection request to the Office of Management and Budget covering its educational scholarships, fellowships, and internship programs. The proposal details updates to application and survey forms for the Hollings Scholarship, EPP/MSI, and related programs, including new forms for travel requests and onboarding, and the removal of redundant or outdated data fields. The agency projects 3,379 respondents and 13,043 annual burden hours. NOAA cites strengthened focus on minority-serving institutions and future workforce data collection.

Sources: www.federalregister.gov

Legislative Updates

Savings Opportunity and Affordable Repayment Plan Introduced

Bill 8475 was introduced in the House to amend the Higher Education Act of 1965 and establish a new income-contingent repayment plan called the Savings Opportunity and Affordable Repayment plan. The bill has been referred to the House Committee on Education and Workforce.

Sources: www.congress.gov

Technical Schools Federal Grant Access Bill

Bill 4371 was introduced in the Senate to ensure qualified technical schools offering career pathways and job training have the same access to federal grants as 2-year and 4-year colleges. The bill was referred to the Committee on Health, Education, Labor, and Pensions.

Sources: www.congress.gov

Verification of Social Security Numbers in Student Aid Process

Bill 4365 seeks to amend the Higher Education Act to improve the verification process of Social Security Numbers for recipients of federal student aid. The bill was read twice and referred to the Senate Committee on Health, Education, Labor, and Pensions.

Sources: www.congress.gov

Repeal of the 90/10 Rule for Proprietary Schools

Bill 4348 proposes the repeal of the 90/10 rule as it applies to proprietary institutions under Title IV of the Higher Education Act. The bill was read twice and referred to the Senate Committee on Health, Education, Labor, and Pensions.

Sources: www.congress.gov

Stop DEI Act

Bill 8445, termed the 'Stop DEI Act,' was introduced and referred to the House Committee on Education and Workforce. The bill addresses diversity, equity, and inclusion policy requirements for educational institutions.

Sources: www.congress.gov

State Government News

California Joins International Environmental Protection Organization

Governor Newsom announced California's membership in the International Union for Conservation of Nature (IUCN), making it one of the first U.S. subnational governments to join the world's largest environmental protection organization. The membership aims to expand the state's role in international environmental policy and conservation, building on recent global and inter-state climate partnerships.

Sources: www.gov.ca.gov

Texas Announces Advisory and Education Appointments

Governor Abbott named and reappointed several individuals to state boards, including the Advisory Council on Postsecondary Education for Persons with Intellectual and Developmental Disabilities and other committees spanning education, health care, and water authority governance.

Sources: gov.texas.gov

Texas Governor Abbott Addresses Concrete Industry Management Scholarship Gala

Governor Abbott spoke at Texas State University's Concrete Industry Management Foundation Scholarship Gala, highlighting the program's job placement results, academic-industry partnerships, and scholarship support for students entering high-demand construction sectors.

Sources: gov.texas.gov

Texas Workforce Commission Awards Career Training Grants

Governor Abbott announced $1.7 million in Jobs and Education for Texans (JET) grants to six South Texas schools to fund equipment and training programs for over 700 students preparing for high-demand fields, including medical and technical careers.

Sources: gov.texas.gov

Avant Technology Receives Texas Semiconductor Innovation Grant

Texas awarded a $4.83 million Semiconductor Innovation Fund grant to Avant Technology for a facility expansion in Pharr, supporting 250 jobs and a new partnership with South Texas College to offer workforce training in advanced manufacturing and electronics.

Sources: gov.texas.gov

Illinois Appoints State Attainment Working Group to Develop Postsecondary Goal

Governor JB Pritzker announced members of the Illinois State Attainment Working Group, tasked with evaluating workforce and training needs and recommending a new statewide postsecondary attainment target for 2040. Group members include education and workforce agency leaders.

Sources: gov-pritzker-newsroom.prezly.com

What We're Reading This Week

• Opinion | Higher education’s frozen yogurt moment: A column explores signs that colleges and universities face a period of significant upheaval, citing a recent Yale report.
• Universities lost public trust. They're finally taking notice. | Opinion: Opinion on how higher education institutions are responding to persistent declines in public confidence.
• This Is a Hard Time to Start a Career. These Two Words Can Help.: An article discusses how recent graduates are navigating challenging job markets and the strategies they employ.
• College Graduates Are Finally Catching a Break in This Job Market: The Wall Street Journal draws on recent job market data to analyze improving employment outcomes for college graduates.
• Washington Rewrites the Rules of Funding Technological Innovation: The article examines recent federal shifts in research funding priorities and their effects on technological innovation and higher education research.
• Opinion | Universities have a new mantra. Democrats, take note.: A political analysis describes how universities are shifting strategies amid political headwinds and changing student demographics.

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