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.
