In its first four weeks, the Trump Administration has issued a flurry of executive actions that have wide-ranging implications for schools, colleges, and universities. At the same time, Congress is gearing up to consider major tax reform legislation that could include proposals that help and hinder institutional advancement offices.

Executive Orders

Since taking office, President Trump has signed a slew of executive orders, many of which directly impact schools, colleges, and universities. A Jan. 21 executive order focuses on diversity, equity, and inclusion programs, directing federal agencies to identify up to nine colleges and universities with endowments over $1 billion for civil compliance investigations related to DEI. It also directs the attorney general and U.S. Department of Education to issue guidance to colleges and universities, as well as state and local agencies, on practices required to comply with the U.S. Supreme Court’s Students for Fair Admissions decision. 

Additional executive orders signed by President Trump encourage the expansion of school choice in K-12 education and target antisemitism at colleges and universities, gender recognition in sports, and DEI practices at federally funded K-12 schools. The Trump Administration is also reportedly preparing an executive order that will attempt to dismantle the U.S. Department of Education. 

For additional information on each executive order, visit the CASE Federal Policy Tracker. 

NIH Funding Change

On Friday, Feb. 7, the National Institutes of Health announced that it was capping the Facilities and Administration rate (F&A, also known as indirect support) at 15% for all new and existing NIH grants beginning on Monday, Feb. 10. This NIH directive, if allowed to proceed, would translate into a significant cut in research funding for research colleges and universities, which would grind projects to a halt. On Feb. 8, a federal judge temporarily blocked this change in response to three separate lawsuits, including one filed by the American Council on Education, Association of American Universities, and the Association of Public and Land-grant Universities. A hearing on the lawsuits has been scheduled for Friday, Feb. 21. 

U.S. Department of Education Says Institutions Should End All Race-Conscious Programs

On Feb. 14, the U.S. Department of Education’s Office of Civil Rights released a Dear Colleague letter outlining the Department’s views on the scope of the U.S. Supreme Court’s 2023 decision in Students for Fair Admissions, which effectively ended race-based preferences in admissions. In the letter, the Department takes a broad view, stating it outlaws all forms of race-conscious preferences (including scholarships), and that the Department plans to enforce this view of the law. Institutions have 14 days to “to take appropriate measures to assess compliance with the applicable statutes and regulations based on the understanding embodied in this letter.”

McMahon Faces Senators as Future of U.S. Department of Education Uncertain

During her Feb. 13 confirmation hearing, U.S. Department of Education Secretary-designate Linda McMahon testified to the Senate Health, Education, Labor, and Pensions Committee that President Trump does not want to defund the Department of Education and instead wants to see programs run more efficiently. McMahon added that Congress will have a major say in deciding the agency’s future.

In different lines of questioning, McMahon said Pell Grants, Title I funds for low-income schools, and Individuals with Disabilities Education Act funding for disabled students would remain in place. The Senate HELP Committee is expected to vote on her nomination the week of Feb. 17, 2025.

Tax Reform Plans Take Shape

House and Senate Republicans are beginning to take the steps necessary to use special budget rules to extend several provisions of the 2017 Tax Cuts and Jobs Act set to expire on Dec. 31, 2025. Republicans on the House Budget Committee have been circulating a document outlining a wide range of potential provisions, including several that would affect educational institutions, aimed at offsetting the cost of extending the tax cuts. The list includes proposals that would:

• increase the current endowment tax on certain private colleges and universities from 1.4% to 14%, 
• eliminate the exclusion of scholarship and fellowship income from tax, and
• eliminate the charitable deduction for gifts to health organizations. 

While this is not a definitive list of what lawmakers will or could include in a final bill, it underscores the extent to which lawmakers are looking to raise revenue from tax-exempt-organizations, including educational institutions. 

Bipartisan Bill to Expand Charitable Deduction Introduced

A bipartisan group of lawmakers in the U.S. House and Senate have reintroduced the Charitable Act (S. 317, H.R. 801), a bill that would allow Americans who do not itemize their tax returns to deduct up to $5,000 in gifts to charity annually ($10,000 for joint filers). Through leadership of the Charitable Giving Coalition, CASE has been instrumental in building bipartisan support for a charitable deduction for non-itemizers and we plan to vigorously advocate for its inclusion in a final tax reform bill. CASE’s message to Congress is clear: rather than curbing charitable giving, lawmakers should be focused on expanding opportunities to support educational institutions and the broader nonprofit sector.

Stay Updated

With so much at stake and developments in Washington, D.C., moving quickly, it is critical that advancement teams stay informed and prepared to engage when necessary.

Here are a few things you can do: 

• Register for our free Washington Update webinar on Feb. 28. During this webinar we will share the latest updates on executive orders, tax reform, and other issues affecting schools, colleges, and universities. We will also share how CASE is advocating on behalf of our members and the latest on how you can help. 
• Schedule a CASE Advocacy Update Board Talk. Help volunteer leaders stay informed on the latest developments by having CASE staff join your board or committee meetings virtually. For more information and pricing, contact Holly Davis, Director, CASE@Campus. 
• Join the CASE Advocacy Network. By joining this online community, CASE members can get weekly updates on developments happening on Capitol Hill along with access to key tools and resources.  
• Follow the CASE Federal Policy Tracker. This frequently updated tool will help you stay on top of all executive actions, legislative, and regulatory proposals affecting schools, colleges, and universities. 
• Connect with your institution’s government relations staff. If you haven’t already, reach out to the staff member responsible for government relations at your school, college, or university. Ensure they are informed about issues affecting the advancement office, encourage them to join the CASE Advocacy Network, and coordinate with them before reaching out to lawmakers.