Tag: follow

  • Trump Administration Freezes Education Funds to 23 States, Legal Challenges Follow

    Trump Administration Freezes Education Funds to 23 States, Legal Challenges Follow

    In a move that has sparked legal action from nearly half the country, the Trump administration has frozen more than $6 billion in education funds to 23 states and the District of Columbia. The decision, issued by the U.S. Department of Education in late June 2025, follows a broader pattern of halted federal support for state and local programs, many of which were previously protected by court rulings.

    The funding pause is linked to the Trump administration’s January 2025 memorandum from the Office of Management and Budget (OMB Memo M-25-13), which directed federal agencies to withhold disbursements from thousands of grant and aid programs. The stated purpose was to align spending with the administration’s priorities, though the policy has been challenged as lacking legal authority. The memo was later rescinded, but its effects have continued through new administrative directives.

    In this latest instance, the Department of Education cited a need to review Title II and Title IV programs under the Elementary and Secondary Education Act (ESEA), including programs for teacher development, after-school enrichment, and English language learners. 

    The decision disproportionately affected Democratic-led states, with California alone facing the loss of $939 million. 

    States impacted include Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia.

    On June 30, attorneys general from those jurisdictions filed suit in Rhode Island, arguing that the Education Department lacks the authority to unilaterally withhold funds that Congress has already appropriated. They assert that the freeze violates both statutory obligations and constitutional principles, including the separation of powers. The lawsuit follows earlier court rulings from January and February in which judges issued temporary restraining orders and preliminary injunctions to stop the administration from freezing other categories of grants. Those cases were largely brought by Democracy Forward, a legal advocacy organization that has played a leading role in contesting the OMB memo.

    Although the administration has defended the funding freeze as a necessary review of federal spending, courts have questioned the legality of such actions. In March, a federal court criticized the lack of statutory basis for the freezes, and Democracy Forward issued a detailed brief outlining the harm to nonprofit programs, environmental projects, and public services. That brief emphasized the breadth of affected programs and the legal overreach involved.

    The broader legal battle continues. While some funding has been restored through court action, the Education Department’s freeze represents a new front in ongoing disputes between the Trump administration and state governments. Plaintiffs argue that withholding these funds sets a precedent that undermines established appropriations and legislative intent. More lawsuits are expected.

    The Trump administration’s freeze on education funding to 23 states opens several legal and political paths, each with different implications depending on how courts and federal agencies proceed. Below are the most likely possibilities based on current legal precedent, federal authority, and political conditions:

    Courts Overturn the Freeze, Funding Restored

    The most immediate and probable outcome is that courts will order the Education Department to restore the frozen funds, as they did earlier this year with other parts of the federal grant freeze. Courts have already found that the administration lacked statutory authority to suspend programs that Congress explicitly funded. If this logic holds, the education freeze will likely be ruled unlawful and states will receive the funds—possibly with retroactive reimbursement for missed payments.

    Partial Restoration, Continued Legal Conflict

    The administration may attempt to restore only some of the funding—especially those programs that have garnered the most public or bipartisan support—while continuing to block others. In this scenario, the courts could issue narrow rulings or temporary injunctions that apply to specific funding streams. This would prolong litigation and administrative uncertainty, potentially pushing the issue into 2026 or the next presidential term.

    Supreme Court Intervention

    If the lower courts issue conflicting rulings or the Trump administration loses significant cases, the Justice Department may seek Supreme Court review. The Court could use this as an opportunity to clarify executive authority over grant disbursement. Depending on the composition of the Court and its interpretation of separation of powers, this could either curtail future executive control over federal spending—or affirm broader authority to “review” or condition funding.

    Legislative Response

    Congress, particularly if Democrats control at least one chamber in 2025-2026, could pass legislation to prohibit similar funding freezes in the future or require automatic disbursement of appropriated funds. However, any such legislation would likely face veto threats or require a veto-proof majority, making this a longer-term fix rather than a short-term remedy.

    Further Administrative Retaliation or Expansion

    If courts delay action or issue narrow rulings, the Trump administration could expand the use of funding freezes to other agencies or sectors, testing the limits of executive control. The precedent set by OMB Memo M-25-13 could be repurposed in other contexts—such as public health, housing, or infrastructure—creating broader instability in federal-state relations.

    Political Mobilization and Fallout

    States may respond by increasing pressure on Congress and federal courts while using the issue as a rallying point in the 2026 midterm elections. Public schools, educators, and parents may amplify the issue if it leads to job losses, school closures, or reduced services. The freeze could become a political liability for the Trump administration, especially in battleground states that rely heavily on federal education support.

    In sum, the most likely near-term result is court-mandated restoration of the withheld funds. But depending on how aggressively the administration continues to test the boundaries of federal authority, the dispute could escalate into a broader constitutional and political conflict over the power to allocate and control federal funds.

    Sources

    Democracy Forward, “Initial Policy Memo on Federal Grant Freezes,” March 12, 2025.

    CBS News, “Democratic states sue Trump administration over halted education funds,” July 1, 2025.

    Reuters, “Trump asks US court to end judicial overreach, allow funding freezes,” February 11, 2025.

    Wikipedia, “2025 United States federal government grant pause.”

    The Daily Beast, “GOP Lawmakers Blast Trump Chief Russell Vought for Freezing Education Money,” July 2025.

    The Guardian, “Nothing like this in American history: the crisis of Trump’s assault on the rule of law,” March 9, 2025.

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  • Will Trump Follow the Law in Punishing Harvard?

    Will Trump Follow the Law in Punishing Harvard?

    In the days since Harvard University rejected the Trump administration’s demands, with billions in funding at risk, the U.S. president has weaponized multiple federal agencies to exert additional pressure on the university.

    On April 11, the Trump administration sent the university a letter demanding changes to Harvard’s governance, admissions, hiring processes and more, signed by officials at the General Services Administration and the Departments of Health and Human Services and Education. Government officials argued in the letter that such changes were necessary because of alleged antisemitism and harassment on campus stemming from pro-Palestinian protests last spring.

    After Harvard rejected those demands last week, the government retaliated within hours by freezing $2.2 billion in grants and another $60 million in contracts. The Trump administration is now reportedly planning to pull another $1 billion in funding. (On Monday, Harvard sued to put a stop to the funding freeze, which President Alan Garber argued was “unlawful and beyond the government’s authority.”)

    Other federal agencies have also piled on.

    On Thursday, Department of Homeland Security Secretary Kristi Noem announced DHS had canceled $2.7 million in grants to Harvard, declaring the university “unfit to be entrusted with taxpayer dollars.” Noem also threatened to terminate Harvard’s Student and Exchange Visitor Program certification, which would render it unable to host international students, unless the university provided by April 30 “detailed records on Harvard’s foreign student visa holders’ illegal and violent activities,” according to a Thursday news release from the department.

    DHS did not respond to a request for comment from Inside Higher Ed.

    Reports also emerged last week that the Internal Revenue Service was preparing to cancel Harvard’s tax-exempt status, a move President Donald Trump has endorsed on social media.

    “Perhaps Harvard should lose its Tax Exempt Status and be Taxed as a Political Entity if it keeps pushing political, ideological, and terrorist inspired/supporting ‘Sickness?’ Remember, Tax Exempt Status is totally contingent on acting in the PUBLIC INTEREST!” Trump wrote on Truth Social last week.

    With Harvard standing firm, the president appears willing to wield the full power of the federal government to bring the university to heel. But what would that actually look like in practice?

    Stripping Tax-Exempt Status

    If the Trump administration follows required legal processes, removing Harvard’s tax-exempt status would be a lengthy endeavor that experts say would likely take at least several months.

    The process would begin with an audit, which itself could take a few months, explained Samuel Brunson, a professor at the Loyola University Chicago School of Law specializing in tax law.

    “The IRS would have to do an audit of Harvard and determine that there were one or more reasons why Harvard did not meet the requirements for tax-exempt status,” Brunson said.

    Once the IRS notified Harvard of its intent to revoke its exemption, the university would be able to appeal the decision directly to agency officials. If the IRS insisted on stripping Harvard of its tax-exempt status, the university could go to the courts seeking a reprieve. And if the courts sided with the federal government, Harvard could continue to fight by appealing the decision.

    While stripping universities of tax-exempt status is rare, it has happened before.

    In 1970, the IRS informed Bob Jones University, a private religious institution in South Carolina, that the agency planned to strip its tax-exempt status over racially discriminatory policies. At the time, the university, founded by its namesake evangelist, did not accept Black applicants—a policy it maintained until 1975, when it opened its doors only to married Black applicants, to avoid the possibility of challenging the institution’s strict opposition to interracial relationships. (Policies barring interracial relationships remained in place until 2000.)

    The university filed suit in 1971, prompting a legal fight that lasted until 1983, when the U.S. Supreme Court ruled 8 to 1 in favor of stripping BJU’s tax-exempt status. Justices found that the government’s interest in eradicating racism superseded the tax burden placed on Bob Jones. The university eventually regained its tax-exempt status in 2017, during Trump’s first term.

    Brunson expects the government to make a similar argument about Harvard.

    “My assumption is that the Trump administration is going to argue that Harvard violated a fundamental public policy, either by not reining in pro-Palestinian, anti-Israel protesters enough, or something related to [diversity, equity and inclusion],” Brunson explained.

    Still, he said “the chances of Harvard actually losing its exemption are at best minuscule.” Brunson believes that Harvard has a strong case, while the Trump administration’s argument is weak, “unless they have something up their sleeve that literally everyone is not aware of.”

    The IRS did not respond to requests for comment from Inside Higher Ed.

    Targeting SEVP Certification

    The government is also seeking to inflict pain on Harvard by cutting off its international student population, which would be a significant financial blow to the university. Harvard enrolled 6,793 international students in the 2024–25 academic year, according to the university website, which comprised more than 27 percent of its head count.

    If the Trump administration follows legal avenues to strip Harvard’s SEVP certification—which would prevent it from hosting international students— the process would take some time. First the federal government would be required to provide notice of its intent to eliminate that certification, and Harvard would have 30 days to respond and take any necessary remedial action. If Harvard’s SEVP certification was stripped following its response, the university could challenge the decision in court, likely triggering a protracted legal battle before the issue was finally settled.

    William A. Stock, managing partner at Klasko Immigration Law Partners, wrote by email that while colleges are subject to an SEVP recertification process every two years, U.S. Immigration and Customs Enforcement has the authority to conduct off-cycle reviews at any time. Such enforcement action is typically taken only when the federal government “comes into possession of information that may indicate possible noncompliance, or when major changes in a school’s operations require the school to update their registration with SEVP,” Stock explained.

    In other words, the Trump administration would need a reason to strip Harvard’s SEVP certification.

    “Essentially, if the government determines that there is an abuse of the SEVP and F-1 and J-1 [visa] designation by Harvard, they can move to take away their ability to issue those visas, which would ostensibly hamper their ability to run an international student program,” said Jonathan Grode, managing partner for Green and Spiegel, a firm that practices immigration law.

    Experts noted that losing SEVP certification would cause a substantial loss of international students and hit research projects hard—even as such endeavors are already in flux from the Trump administration’s freezes on federal funding—given the high share of Ph.D. students who come from other countries. And even if Harvard doesn’t lose its SEVP certification, the mere threat of it could harm international recruitment.

    In any case, the federal government has rarely revoked SEVP certification.

    “The few cases of withdrawal of SEVP certification have involved schools who took serious shortcuts in compliance due to financial troubles, and a handful of cases where school administrators were charged criminally for abusing the student visa system,” Stock wrote.

    For example, Herguan University, a private institution in California, lost its SEVP certification in 2016 after officials there were accused of a scheme to commit visa fraud. That case culminated in a prison sentence for the university’s chief executive officer. Herguan later lost accreditation and closed.

    By threatening to limit Harvard’s ability to host international students, Grode believes the government is merely making a power play to get the university to yield to its demands.

    “In a normal universe, there’s no way Harvard’s status as a provider of student visas would ever be challenged,” he said. “But as the federal government is trying to push and cajole Harvard to acquiesce on a number of different points, you’re seeing them leverage these ancillary types of activities.”

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  • Higher Education Inquirer continues to follow IPO/sale of University of Phoenix

    Higher Education Inquirer continues to follow IPO/sale of University of Phoenix

    On March 6, 2025, Apollo and Vistria publicly announced a possible IPO or sale of the University of Phoenix.  These companies have been trying to sell the University of Phoenix since 2021, but there have been no takers. The owners claim the school is worth $1.5M to $1.7M, but we (and experts we know) are skeptical, given the financials we have seen so far. The University of Phoenix was previously on sale for about $500M-$700M but the University of Arkansas System, the State of Idaho, and apparently other colleges declined the offers. 

    The University of Phoenix offers subprime education to folks,
    historically targeting servicemembers, veterans, and people of color. While some students may profit from these robocollege credentials, one wonders what
    these workers actually learn. The current student-teacher ratio at the
    University of Phoenix, according to the US Department of Education, is
    132 to 1.   

    In 2023 we made a Freedom of Action (FOIA) request to the US Department of Education (ED) to get Phoenix’s most recent audited financials. In March 2025, more than 20 months later, we were provided with a 35-page report, audited by Deloitte, with numbers from 2021 and 2022. 

    This month the Higher Education Inquirer followed up with a Freedom of Information request with the ED to obtain more up-to-date financial numbers for the University of Phoenix. We hope they will be responsive and timely enough to get the word out to the public.   

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