Tag: bill

  • Wins and Losses of the Reconciliation Bill

    Wins and Losses of the Reconciliation Bill

    Kevin Dietsch/Getty Images

    It’s been six months since the second Trump administration took office, and in that time it has radically changed the policy around federal student loans, grants and college accountability. With the One Big Beautiful Bill Act now signed into law, Inside Higher Ed’s editor in chief, Sara Custer, spoke with news editor Katherine Knott about what’s in the bill and the outcome of the sector’s efforts to influence the massive piece of legislation. 

    In a recent episode of The Key, Inside Higher Ed’s news and analysis podcast, they also checked in on Harvard and Columbia’s negotiations with the administration and shared what they’ll be looking out for in the next six months. 

    Source link

  • One Big Beautiful Bill Is Big Betrayal of Students (opinion)

    One Big Beautiful Bill Is Big Betrayal of Students (opinion)

    In late June, House Republicans aired a promotional video about their budget reconciliation bill, the One Big Beautiful Bill Act, claiming it will “make the American dream accessible to all Americans again.” That dream—that anyone in this country can achieve prosperity and success through hard work and determination—is what leads people to come to America and stay. It’s no wonder that politicians invoke this promise as part of the reason for needed change.

    Higher education has long been seen as one of the surest paths to economic security in America—it is one foundation that dream rests on. It feels consequential, therefore, that President Trump and congressional Republicans are looking to undercut this vision of the American dream. The One Big Beautiful Bill Act will reshape federal student aid in ways that transform access to higher education and shut everyday Americans out.

    Forthcoming nationally representative survey data from New America, a nonpartisan think tank, shows Americans are clear-eyed about what it really takes to keep the dream alive: an affordable higher education. But they see college falling further out of reach. Nearly nine out of 10 believe college cost is the biggest factor that prevents families from attending college. And three-quarters of Americans agree that the federal government should spend more tax dollars on educational opportunities after high school to make them more affordable, including majorities of both Republicans and Democrats.

    Americans also believe in accountability for this investment. They want a system that rewards effort, responsibility and outcomes—basic values that align with the American dream. Majorities from both parties say colleges and universities should lose access to taxpayer support if their students don’t earn more than a typical high school graduate or if they struggle to pay down their student loan debt.

    Once enacted, the new law will trim the Pell Grant program, making some middle-income families ineligible who used to qualify for small amounts of the Pell Grant. Federal student loans will look vastly different, with big cuts to graduate, parent and lifetime borrowing limits and less generous repayment options for borrowers who fall on hard times. These changes will close one door for many low- and moderate-income Americans, the one that leads to an affordable associate or bachelor’s degree. At the same time, by expanding Pell Grants to short-term job training programs, the law opens another door to very short credentials as few as eight weeks long with little oversight and consumer protection. Our research has shown time and again that these very short credentials will not deliver economic stability nor improve employment prospects.

    And while the law will take meaningful steps toward accountability and will cut off from federal loans associate, bachelor’s and graduate programs that fail to give students an earning boost, those measures exclude all undergraduate short-term certificate programs, which tend to have the worst outcomes. It will also allow programs to continue to operate, even if most of their students struggle to repay their loans.

    Over all, these changes amount to a massive cut of close to $300 billion in critical funds that ensure students have access to a quality education after high school. It will increase dropout risk (which we know is a major predictor of student loan default), and will push families toward private financing products with fewer consumer protections.

    While the president and congressional Republicans say these cuts are necessary under the auspices of extending tax cuts, improving fiscal responsibility and reforming higher education, the truth is this law will achieve none of this. It will add at least $3 trillion to our deficit by expanding tax cuts to wealthy Americans, all while stripping funding from critical programs everyday Americans rely on like Medicaid, SNAP and student aid. It does nothing to fix the underlying problems that drive college costs. It ignores targeted solutions that would promote affordability and expand accountability. That type of thoughtful reform would require bipartisan reauthorization of the Higher Education Act, which is more than a decade overdue.

    Despite what Republicans in Washington say about making the American dream accessible again, this law will only put it further out of reach. The changes will fall hard on all students trying to obtain education after high school—from welders to electricians, nurses, teachers and medical doctors. These are not “elites,” but core constituents. They are working adults, veterans and parents looking to make a better life for their children, hoping that the American dream is still achievable. Instead, they will find that their own government has abandoned them.

    In his inaugural address in January, President Trump said, “The American dream will soon be back and thriving like never before.” But, in truth, it is being suffocated. It’s too late to change this new law, but moving forward Congress and the Trump administration must center everyday Americans and act cautiously before making such seismic cuts. This is not a partisan issue, but a matter of national interest and prosperity. Failing to think about future legislation that makes meaningful student-centered reform to higher education will have political and generational consequences for years to come. It sends a message to future students that only familial wealth will bring college opportunities, and it won’t matter how much hard work they put in or determination they have.

    Rachel Fishman is the director of the higher education program at New America.

    Source link

  • New Congressional Bill Targets College Sports Funding, Could Impact Campus Diversity Programs

    New Congressional Bill Targets College Sports Funding, Could Impact Campus Diversity Programs

    A bipartisan House bill introduced last Thursday aims to reshape college athletics by limiting how universities can fund sports programs while offering the NCAA limited antitrust protections—changes that could significantly affect institutional priorities and student access.

    The SCORE Act, backed by seven Republicans and two Democrats, faces uncertain prospects despite bipartisan support. While the House appears receptive, the bill would require at least seven Democratic votes in the Senate, where passage remains unlikely.

    The legislation addresses three key NCAA priorities: antitrust protections, federal preemption of state name-image-likeness (NIL) laws, and provisions preventing student-athletes from becoming university employees. These changes come as colleges navigate the fallout from a $2.78 billion settlement requiring institutions to compensate athletes directly.

    The bill’s prohibition on using student fees to support athletics could force difficult budget decisions at universities nationwide. This restriction strikes at proposed funding mechanisms as schools scramble to find up to $20.5 million annually for athlete compensation.

    Several institutions have already announced fee increases that would be affected. Clemson University implemented a $150 per-semester “athletic fee” this fall, while Fresno State approved $495 in additional yearly fees, with half designated for athletics. Such fees disproportionately impact students from lower-income backgrounds who already face rising educational costs.

    The financial pressures extend beyond student fees. Tennessee has introduced “talent fees” for season-ticket holders, Arkansas has raised concession prices, and numerous schools are seeking increased booster contributions—all reflecting the growing financial demands of competitive athletics.

    The legislation includes provisions aimed at protecting Olympic sports programs, which some fear could be eliminated as resources shift toward revenue-generating football and basketball. Schools with coaches earning over $250,000 would be required to offer at least 16 sports programs, mirroring existing NCAA Division I FBS requirements.

    This mandate could help preserve opportunities for student-athletes in traditionally underrepresented sports, many of which provide crucial scholarship pathways for diverse student populations. However, critics question whether this protection is sufficient given the magnitude of financial pressures facing athletic departments.

    The bill’s broader implications for Title IX compliance and gender equity in athletics remain unclear, as institutions balance new athlete compensation requirements with existing obligations to provide equal opportunities for male and female student-athletes.

     

    Source link

  • 3 things to know about school choice in the ‘One, Big, Beautiful Bill’

    3 things to know about school choice in the ‘One, Big, Beautiful Bill’

    This audio is auto-generated. Please let us know if you have feedback.

    The “One, Big, Beautiful Bill,” a major tax and spending package narrowly passed by Congress and signed by President Donald Trump on July 4, includes a Republican-led national school choice provision that public school advocates and some researchers say will disrupt the traditional public school K-12 model by driving more competition with public schools. 

    This controversial issue has been debated at the local, state and national levels for decades, but this is the first federally funded, nationwide private school choice program. While unknowns remain about how many students, schools and states will participate, reaction has been swift, with opponents calling the law harmful to public schools and supporters labeling it as a historic move for educational freedom. 

    “Parents should decide where their kids go to school. This bill helps them do that,” said Sen. Bill Cassidy, R-La., author of the Educational Choice for Children Act included in the “One, Big, Beautiful Bill” and chair of the Senate Health, Education, Labor and Pensions Committee, in a Thursday statement.

    Here’s what you need to know about the newly enacted measure:

    What the new school choice provision says

    The law provides a federal tax incentive to generate funds for families’ educational expenses, including private school tuition at secular and religious schools, as well as costs incurred for children at public and private schools such as fees, tutoring, educational therapies, transportation, technology and other expenses. It would also apply to homeschooling costs.

    To be eligible, families’ household incomes must not exceed 300% of the median gross income for their locality. The means, for example, students in Memphis living in households with incomes of up to $364,400 could be eligible, based on a median family income of $91,100. 

    States, however, can opt out of participating, meaning none of the students in that state would be eligible for the program. It was not immediately clear which state agency or leader decides this.

    Under the new school choice law, any taxpayer who donates up to $1,700 annually to a scholarship granting organization — a 501(c)(3) charity organization — would be eligible for a 100% federal income tax credit for their contribution, or the equal amount in a reduction of taxes owed. According to the Institute on Taxation and Economic Policy, there is no other charitable giving structure that allows this type of dollar-for-dollar tax incentive. 

    ITEP’s analysis of Internal Revenue Service data shows that more than 138 million people could use this tax credit in 2027 if they choose to. But some might not participate because of the paperwork involved or because they disagree with private school vouchers, ITEP said.

    If 43% of taxpayers — which would be about 59 million people — participate, the cost to the federal government would be $101 billion per year, according to ITEP.

    The law does not cap the program’s cost, despite earlier versions of the bill limiting it to $4 billion or $5 billion per year. In addition, the program is permanent with no expiration date. 

    The scholarship-granting organizations that will distribute tuition vouchers for education expenses must be independent entities and cannot be affiliated with a school, according to ACE Scholarships, a nonprofit scholarship-granting organization that has analyzed the law. The organization, in an FAQ, also said parents cannot direct their tax credit directly to their child’s education expenses. 

    Rather, the scholarship-granting organizations will be charged with independently determining students’ eligibility.

    Several people are seated at desks outside of the U.S. Department of Education. Some people are standing and there are signs on the ground and being held. One sign says "Protect Students. Protect Public Schools."

    Protestors participate in a “study-in” in front of the U.S. Department of Education on March 21, 2025, in Washington, D.C.

    Kayla Bartkowski via Getty Images

     

    What people are saying

    Reaction to the law was swift, with critics voicing concern about the impacts on public school budgets and supporters applauding what they call a significant step toward parental empowerment in K-12 education.

    Robert Kim, executive director of the Education Law Center, blasted the new program. Studies have shown private school vouchers “sweep aside civil rights protections, support segregation, decimate public school budgets, and do not improve student outcomes,” Kim said in a statement.

    He added, “Vouchers undermine public education, the cornerstone of our democracy, and have no place in federal policy.” 

    EdTrust, a nonprofit organization that works to improve outcomes for students of color, lambasted the law as an “extremely costly federal voucher program that will spend billions in public money to subsidize wealthy families accessing private schools.” and will operate with “little oversight.”

    EdTrust has nicknamed the law the “Great American Heist” for its private school choice provision and changes to Medicaid, food stamps and college loan repayment programs. The law “would dismantle the very programs that make education and economic advancement possible for students of color, first-generation college students, and low- and middle-income families,” EdTrust’s statement said.

    Rachel Laser, president and CEO of Americans United for Separation of Church and State, said in a statement that the school choice program “will divert billions of taxpayer dollars to private religious schools that indoctrinate and can discriminate against students and their families based on the schools’ beliefs.”

    Supporters of private school choice, however, struck a different note. They said parents have become frustrated at disappointing student academic performances in public schools and want more options for their children.

    “This is a huge victory for American families that have been praying and hoping for a financial lifeline to provide their children with the education they need to thrive,” said Anthony J. de Nicola, chairman of the board of Invest in Education Coalition, an organization that has promoted a federal school choice program, in a statement.

    Tommy Schultz, CEO of the American Federation for Children, a school choice advocacy organization, said the law’s passage will “supercharge” school choice across the country. 

    For a generation, our movement has fought to give all families, especially lower-income families, the freedom to choose the best K-12 education for their sons and daughters, and now President Trump has signed into law the single biggest advancement of that goal,” Schultz said in a statement.

    Even with the praise, however, some supporters urged caution. 

    In an interview with Catholic News Agency published July 3, John DeJak, executive director of the Secretariat of Catholic Education for the U.S. Conference of Catholic Bishops, applauded the law’s passage but also pointed to “unknowns” like how the program would address religious liberty protections.

     

    What happens next

    The tax incentive starts with the taxable years ending after Dec. 31, 2026, — and there’s a lot to work out before then. 

    For starters, the new law says that the U.S. secretary of education must draft regulations for how the program will operate, including recordkeeping and reporting, as well as enforcement of a state’s certification of scholarship-granting organizations. 

    The U.S. Department of Education did not provide a time frame for this by press time on Monday.

    Details such as state participation and how the national private school choice program would operate in conjunction with state-level choice programs also need to be worked out. According to EdChoice, an organization that advocates for school choice, 35 states, the District of Columbia and Puerto Rico have private school choice programs that together serve nearly 1.3 million students.

    It’s also unclear how this new school choice program will meld into Republican-led plans to close the Education Department.

    In the meantime, school choice advocates and supporters of public schools vow to continue advocating for and against the controversial law.



    Source link

  • ‘Big, Beautiful Bill’ Means Big Changes for Higher Ed

    ‘Big, Beautiful Bill’ Means Big Changes for Higher Ed

    Following a flyover by a B-2 bomber, President Donald Trump signed a sweeping policy bill into law Friday, celebrating the Fourth of July and commending congressional Republicans for meeting his self-imposed deadline.

    The legislation, which narrowly passed the House on Thursday, promises to significantly change how colleges operate. Higher education groups and advocates warned that the bill will hurt low-income families while proponents praised the changes as necessary reforms.

    Much of the debate over the bill dubbed the One Big Beautiful Bill Act centered on the nearly $1 trillion in cuts to Medicaid, as well as changes to the tax code that will benefit the very rich. But the 870-page piece of legislation also overhauls higher education policy to cap some student loans, eliminate the Grad PLUS program and use students’ earnings to hold colleges accountable. Taken together, higher education experts say, the legislation would transform the sector, hurt universities’ finances and hinder college access.

    But the legislation doesn’t include some of the proposals that most worried college leaders, such as cuts to the Pell Grant program and a 21 percent endowment tax rate. Wealthy private colleges will still face a higher tax rate on their endowments, up to 8 percent. (The current rate is 1.4 percent.)

    Some higher ed lobbyists commended Republicans for backing off some of the deeper cuts, but they are worried about a number of changes in the bill.

    Eliminating Grad PLUS loans could mean fewer students attend graduate school, which would be a hit to universities’ bottom lines, especially at institutions that rely heavily on graduate programs for tuition revenue. Similarly, capping Parent PLUS loans at $65,000 per student could hurt Black and Latino families, who disproportionately use the loans. The legislation also consolidates repayment plans, giving future borrowers two options. Consumer protection advocates worry the bill will exacerbate the student debt crisis and drive students to private loans.

    The student loan changes take effect July 2026.

    Catch Up on Our Coverage of the Bill

    Lawmakers also agreed to expand the Pell Grant to short-term job-training programs, achieving a long-sought goal for community colleges and other groups. In a last-minute change, the expansion excludes unaccredited providers.

    “While somewhat improved over its original version, [the bill] contains a mix of new taxes and spending cuts that will force even more difficult decisions on chief business officers and further strain revenue that helps make college affordable for students and families,” said Kara Freeman, president of the National Association of College and University Business Officers. “The long-term implications of this legislation for higher education and American innovation are likely to be profound.”

    Over all, the One Big Beautiful Bill Act will add about $3.3 trillion to the national debt over the next 10 years, according to the Congressional Budget Office. Republicans said they had hoped to curb spending and address the growing deficit with the legislation, and some conservatives balked at the price tag. Still, pressure from the president to deliver a legislative victory won out, even as some lawmakers waffled for hours over whether to support the bill. Politico reported that Trump called lawmakers and met with them in person to make his case.

    Republicans lawmakers and Trump administration officials praised the legislation, saying it would lower the cost of college and boost accountability. One of the major changes ties colleges’ access to federal student loans to students’ earnings. Programs that fail to show their graduates earn more than an adult with only a high school diploma could be cut off from loans. One rough analysis found that fewer than half of two-year degree programs would pass the earnings test, but community colleges are less reliant on loans.

    “Overall, the Senate’s ‘do no harm’ proposal would strengthen the higher education system,” wrote Preston Cooper, a senior fellow at the conservative American Enterprise Institute, who conducted the analysis. “But the current political environment presents a once-in-a-generation chance to fix the broken federal role in higher education. Lawmakers shouldn’t miss the opportunity to go further.”

    Another analysis from the Postsecondary Education and Economics Research Center at American University found that programs that would fail the earnings test enroll about 1 percent of students. But the test wouldn’t apply to certificate programs, where one in five students are pursuing a credential that doesn’t provide the necessary earnings boost, according to the PEER Center. Other experts have argued that the accountability plan should’ve taken into account the cost of programs and students’ debt loads.

    Colleges generally preferred the earnings-based accountability plan, which is similar to the Biden administration’s gainful-employment rule, though lobbyists had wanted lawmakers to make some changes. House Republicans had planned to make institutions pay an annual penalty based on students’ unpaid loans, which could’ve cost colleges billions.

    Jason Altmire, president of Career Education Colleges and Universities, the national trade association representing for-profit institutions, congratulated Congress in a statement Thursday for passing the “monumental legislation.”

    He praised the short-term Pell expansion as well as the “no tax on tips” policy, among other provisions. But he’s concerned about parts of the new accountability framework, though “we strongly support the fact that the measure applies equally to all schools in all sectors of higher education, a longtime CECU priority.”

    Altmire and CECU oppose the loan caps and eliminating Grad PLUS loans. “These cuts will negatively impact students and limit access for those who are most in need,” he said in the statement. “These provisions are ill-advised and we hope Congress will revisit them in the future. Overall, we are grateful that our voice was heard and so many of our longtime priorities were included in the final bill. We look forward to working with Congress to make improvements through future legislation.”

    Charles Welch, president of the American Association of State Colleges and Universities, said in a statement that the cuts to Medicaid and other programs will hurt regional public universities, which are typically “the first victim of tightened budgets.”

    “Never has the federal government divested itself of financial responsibility to such an extent, imperiling previously stretched state and local budgets as they seek to cover newly obligated burdens,” Welch said.

    Welch added that colleges in the association must put their “profound disappointment in the reconciliation bill aside” to focus on the appropriations process, which will kick into high gear this month. The appropriations bills in Congress set the spending limits and direct agencies how to dole out federal dollars. The Trump administration has proposed deep cuts to the Education Department’s budget, including zeroing out college-access programs like TRIO.

    “The American Association of State Colleges and Universities urges Congress to reassert its constitutionally endowed authority over government expenditures, eliminating executive overreach and fully funding the programs, grants, and institutions that serve our nation’s postsecondary students,” Welch said.

    Source link

  • House Minority Leader Jeffries giving marathon speech criticizing GOP tax cut bill (PBS News Hour)

    House Minority Leader Jeffries giving marathon speech criticizing GOP tax cut bill (PBS News Hour)

    US House Minority Leader Hakeem Jeffries (D-NY) gives a marathon speech, calling out the destructive path that House Republicans are going down. This is a Bill that undermines the United States of America and its national security.  It is also a threat to democracy.  Folks should listen to every minute of this historical speech. 

    Source link

  • Trump’s giant budget-busting, Medicaid-shattering, shafting-the-poor-and-working-class, making-the-rich-even richer bill is a travesty. (Robert Reich)

    Trump’s giant budget-busting, Medicaid-shattering, shafting-the-poor-and-working-class, making-the-rich-even richer bill is a travesty. (Robert Reich)

    Friends,

    One of my objectives in this daily letter is to equip you with the facts you need. As the Senate approaches a vote on Trump’s giant “big beautiful” tax and budget bill, I want to be as clear as possible about it.

    First, it will cost a budget-busting $3.3 trillion. According to new estimates by the nonpartisan Congressional Budget Office, the Senate bill would add at least $3.3 trillion to the already out-of-control national debt over a decade. That’s nearly $1 trillion more than the House-passed version.

    Second, it will cause 11.8 million Americans to lose their health coverage. The Senate version would result in even deeper cuts in federal support for health insurance, and more Americans losing coverage, than the House version. Federal spending on Medicaid, Medicare, and Obamacare would be reduced by more than $1.1 trillion over that period — with more than $1 trillion of those cuts coming from Medicaid alone.

    All told, this will leave 11.8 million more Americans uninsured by 2034.

    Third, it will cut food stamps and other nutrition assistance for lower-income Americans. According to the CBO, the legislation will not only cut Medicaid by about 18 percent, it will cut Supplemental Nutrition Assistance Program (food stamps) by roughly 20 percent. These cuts will constitute the most dramatic reductions in safety net spending in modern U.S. history.

    Fourth, it will overwhelmingly benefit the rich and big corporations. The CBO projects that those in the bottom tenth of the income distribution will end up poorer, while the top tenth will be substantially richer.

    The bill also makes permanent the business tax cuts from the 2017 legislation, further benefiting the largest corporations.

    Finally, it will not help the economy. Trickle-down economics has proven to be a cruel hoax. Over the last 50 years, Congress has passed four major bills that cut taxes: the 1981 Reagan tax cuts; the 2001 and 2003 George W. Bush tax cuts; and the 2017 Trump tax cuts. Each time, the same three arguments were made in favor of the tax cuts: (1) They’d pay for themselves. (2) They’d supercharge economic growth. (3) They’d benefit everyone.

    All have been proven wrong. Here’s what in fact happened:

    (1) Did the tax cuts pay for themselves?

    No. Rather than paying for themselves, the Reagan, Bush, and Trump tax cuts each significantly increased the federal deficit. In total, those tax cuts have added over $10.4 trillion to the federal deficit since 1981 compared to the Congressional Budget Office’s baseline projections.

    (2) Did the tax cuts supercharge economic growth, create millions of jobs, and raise wages?

    Absolutely not. Rather than growing, the economy shrank after passage of the Reagan tax cuts. And unemployment surged to over 10 percent. Following the enactment of the Bush and Trump tax cuts, the economy did grow a bit, but at rates much lower than their supporters predicted.

    (3) Did the tax cuts benefit everyone?

    Heavens, no. Rather than benefiting everyone, the savings from the Reagan, Bush, and Trump tax cuts flowed mainly to the richest Americans. The average tax cut for households in the top 1 percent under the Reagan tax cut ($47,147) was 68 times larger than the average tax cut for middle-class households ($695). The Bush tax cut for households in the top 1 percent was 16 times larger than the average tax cut for the middle class. The 2017 Trump tax cut for households in the top 1 percent was 36 times larger than for middle-class households.

    Summary: If the bill now being considered by the Senate is enacted, 11.8 million Americans will lose their health insurance, millions will fall into poverty, and the national debt will increase by $3.3 trillion, all to provide a major tax cut mainly to the rich and big corporations. There is no justification for this.

    Never before in the history of this nation has such a large redistribution of income been directed upward, for no reason at all. It comes at a time of near-record inequalities of income and wealth.

    What you can do: Call your senators and tell them to vote “no” on this calamitous tax and budget bill. Congressional switchboard: (202) 224-3121.

    Beyond this, help ensure that senators who vote in favor of this monstrosity are booted out of the Senate as soon as they’re up for reelection.

    Share

    Source link

  • Higher Education Inquirer : Remembering Bill Moyers (1934-2025)

    Higher Education Inquirer : Remembering Bill Moyers (1934-2025)

    In a media landscape often dominated by soundbites, spin, and sensationalism, Bill Moyers was a rare voice of clarity, compassion, and conscience. With his passing, America has lost not only a gifted journalist and public intellectual but also one of its most courageous truth-tellers.

    For more than half a century, Moyers stood at the intersection of journalism, politics, and public education—unyielding in his pursuit of justice and understanding. From his early days as White House Press Secretary under President Lyndon Johnson to his groundbreaking work with PBS, Moyers embodied the spirit of democratic inquiry: probing deeply, listening intently, and speaking boldly. He held the powerful to account, but always with the dignity and decency that defined his Texan roots and Baptist upbringing.

    Bill Moyers never saw journalism as a career; he saw it as a calling. His programs—Now with Bill Moyers, Bill Moyers Journal, and Moyers & Company—were sanctuaries for critical thought and inconvenient truths. He gave voice to the voiceless: whistleblowers, teachers, laborers, poets, and prophets. In a time when the corporate capture of media narrowed the spectrum of acceptable opinion, Moyers stretched it wide—amplifying progressive theologians, investigative reporters, civil rights leaders, and scholars ignored by commercial networks.

    His love of learning, and his belief in public education as a democratic cornerstone, made him a champion of educators and lifelong learners. He understood that education is not merely about credentials or career preparation, but about cultivating the moral imagination. That insight animated his long relationship with public broadcasting, where he insisted that television could—and should—educate, illuminate, and elevate.

    Bill Moyers also saw through the fog of power. He knew how elite institutions—government, media, universities, and corporations—could align to manufacture consent and mystify the public. And yet he maintained hope. Not a naive optimism, but a deep belief in people’s capacity to awaken, organize, and transform society. As he once said, “Democracy is not a lie, it is a leap of faith. But you need to keep leaping.”

    In a moment when American higher education faces crises of affordability, access, and meaning—when trust in journalism is frayed, and when truth itself feels embattled—Bill Moyers’ legacy reminds us that integrity matters. So does context, complexity, and compassion.

    His loss is personal for those of us at the Higher Education Inquirer. Many of us were shaped by his work, inspired by his commitment to investigative rigor and human dignity. His interviews with thinkers like Howard Zinn, Cornel West, Barbara Ehrenreich, and Joseph Campbell helped expand the public’s moral and intellectual horizons—precisely what higher education should strive to do.

    In remembering Bill Moyers, we are called to do more than mourn. We are called to follow his example: to ask harder questions, to listen more deeply, to speak more clearly, and to stand, always, with the people who are too often ignored or maligned.

    Rest in power, Bill Moyers. Your words lit candles in the darkness. May we carry that light forward.

    Source link

  • Risk-Sharing: Trump’s “Big Beautiful Bill” — Implications for UK Higher Education

    Risk-Sharing: Trump’s “Big Beautiful Bill” — Implications for UK Higher Education

    • By Peter Ainsworth, a consultant and writer on higher education finance, known for advocating structural reform that aligns university incentives with real-world graduate outcomes.

    Trump’s “One Big Beautiful Bill” may sound absurd to British ears, but beneath the “very stable genius’s” promotional gloss lies a legislative change designed to reset the relationship between the US Higher Education sector and the state. The bill, which passed the U.S. House of Representatives on 22 May 2025, includes the Student Success and Taxpayer Savings Act (SSTSA) – which, if passed by the Senate, would be the world’s first statutory implementation of institutional risk-sharing in student loans.

    Historically, in both the US and UK, universities have been financially rewarded for their enrollment of students rather than for the practical benefits delivered to their customers. Success arises out of customer acquisition rather than service value-add. Students take out government-backed loans to pay tuition; institutions receive the money upfront regardless of whether or not their degrees lead to economic success. The result is a moral hazard: an incentive (payment) structure for universities that is not aligned with the employability gain that students want and taxpayers need. Systematically falling graduate premiums on both sides of the Atlantic reflect the impact of insulating universities from the employment risk their students face in a rapidly changing economy.

    The American reform seeks to realign incentives to better align risks and objectives. It introduces an Earnings-to-Price Ratio (EPR):

    EPR = (Median Value-Added Earnings) / (Median Total Price)

    Institutions with low EPRs – indicating poor graduate earnings relative to costs – will face a financial penalty in the form of an invoice from the US Treasury to cover the estimated student loan losses for the relevant cohort. If the Senate passes the reform, US universities will have a powerful incentive to transform their offer to ensure meaningful real-world earnings gains for their students.

    The SSTSA is an advance on the existing Cohort Default Rate (CDR) system, which merely threatened to deny access to federal loans to students of institutions with very high default rates. But there was no direct financial risk. Congress deemed it ineffective and so now proposes something more market-oriented.

    Meanwhile, the UK is two steps behind, only now looking to implement a version of the CDR model which the US is already moving away from. A recent Institute for Fiscal Studies (IFS) paper proposes regulating universities based on early-career graduate earnings proxies – like the CDR it is recognising the importance of career earnings outcomes but measuring them indirectly and using regulatory sanction rather than financial cost as the stick. The IFS proposes to use earnings in a three- to five-year window post-graduation to drive regulatory response. Like the CDR’s reliance on a technical definition of default, this short, near-term window will create heavily biased statistics, diminishing the value of professions with delayed earnings trajectories such as medicine and academia.

    Further, the IFS proposes to exclude from consideration graduates with very low earnings. This favours institutions whose graduates earn just below an arbitrary threshold level. They also rely on UK tax data which omits emigrants, undervaluing universities that succeed in preparing graduates for global careers.

    As Friedrich Hayek argued, complex systems cannot be centrally managed through proxies and aggregated metrics. Graduate career trajectories are dynamic, diverse, and unpredictable — precisely the kind of outcomes that defy simple measurement. Accepting that lifetime earnings are the relevant metric leads inevitably to the conclusion that no bureaucratic proxy will suffice.

    There is a cleaner alternative. Universities could be required to issue the loans themselves, something that Buckingham, for example, already does on a small scale. Where needed, to support cash flow, the government could lend to institutions rather than students. This would internalise the financial risk: institutions would have a direct, long-term stake in the earnings success of their graduates. Universities could be freed to set fees and loan terms based on the economic value they expect to deliver and would be incentivised to provide ongoing support — career services, retraining, alumni engagement — to minimise loan defaults over the full life of the loan.

    Such a model also addresses bigger challenges facing the higher education sector. Edward Peck, the new Chair of the Office for Students, recently argued that AI is making traditional assessment ineffective and universities must move from testing what students know to what they can do. Meanwhile, Diana Beech and André Spicer, writing for HEPI, have highlighted that universities now employ an average of 17.6 staff solely to handle regulatory compliance and warned that regulation is “multiplying and becoming less predictable.” In this context, risk-sharing offers a route back to institutional autonomy: tying funding to real-world success rather than the IFS’s proposal for even more bureaucratic box-ticking.

    Finally, political and fiscal realities support this innovation. A shift to institutionally issued loans would remove the student loan portfolio from the government’s balance sheet, reducing annual write-downs by around £15bn per annum – a present value of around £300bn. That would go a long way to address the various fiscal challenges faced by the Labour government. With less bureaucratic interference, more strategic freedom, and appropriate incentives, the sector should be able to make student loans pay, ensuring a sustainable and prosperous future, and letting British universities blow past their American rivals like nobody’s seen before.

    Source link

  • House Passes Reconciliation Bill With “No Tax on Overtime” Proposal – CUPA-HR

    House Passes Reconciliation Bill With “No Tax on Overtime” Proposal – CUPA-HR

    by CUPA-HR | June 17, 2025

    On May 22, the U.S. House of Representatives passed H.R. 1, titled the “One Big Beautiful Bill Act.” Notably, the reconciliation “megabill” includes a provision to implement President Trump’s campaign pledge on “no tax on overtime,” among various legislative priorities for Republicans.

    The “No Tax on Overtime” Proposal

    The overtime proposal creates a temporary above-the-line deduction from gross income for overtime pay required under the Fair labor Standards Act (FLSA). The bill does not set a cap on the amount of overtime pay that can be deducted, but it limits the application of the provision to employees who earn less than $160,000 per year, and it does not extend the deduction to independent contractors. If signed into law, the deduction will be available for tax years 2025 through 2028, and employers would be required to report overtime compensation on workers’ W-2 forms during this time.

    The proposed deduction only applies to workers’ federal income taxes and overtime pay as required by the FLSA, raising some compliance concerns for employers in states with different overtime pay requirements than those required under the FLSA and for employers whose overtime pay requirements are set by a collective bargaining agreement (CBA) with overtime pay that differs from the FLSA requirements. These employers will likely need to track both the FLSA-mandated overtime hours and pay to ensure workers’ W-2s are accurate and in compliance with the law while also ensuring they are tracking the overtime hours and pay in a manner that also complies with the more stringent state or CBA obligations.

    While CBA requirements vary case-by-case, there are five states with overtime pay requirements under their state wage and hour laws that differ from the requirements under the FLSA:

    • Alaska requires 1.5 times workers’ regular rate of pay for hours worked beyond 8 in a day or 40 in a workweek;
    • California requires 1.5 times an employee’s regular rate of pay for hours worked more than 8 in a day, 40 in a workweek, or the first 8 hours on a seventh consecutive day of work in a workweek. The state also requires double an employee’s regular rate of pay for any hours worked over 12 in a day or for all hours worked over 8 on a seventh consecutive day of work in a workweek;
    • Colorado requires overtime pay after 12 hours worked in a day or 40 hours in a workweek;
    • Nevada requires overtime pay for any hours worked beyond 8 in a day if the employee earns less than 1.5 times the state minimum wage; and
    • Oregon has industry-specific daily overtime rules that apply to hospitals, canneries and manufacturers.

    Looking Ahead

    The reconciliation bill is still early in the legislative process. For now, the “no tax on overtime” provision is only included in the House version of the bill. The Senate is currently drafting its version of the reconciliation bill, and they may choose to alter the no tax on overtime proposal — possibly including language of the Overtime Wages Tax Relief Act that was introduced earlier this year by Senator Roger Marshall (R-KS). CUPA-HR will continue to monitor for further developments on this issue.



    Source link