The bill, which passed both chambers of Congress along party lines, combines major tax changes with deep spending cuts that critics say will undermine higher education funding and student support programs.
"Over great public outcry, President Trump signed his signature legislation - a grave mistake that will have devastating repercussions for years to come," said Kristin McGuire, President and CEO of Young Invincibles. "By slashing access to health care, forcing millions out of coverage, and restricting access to essential programs like SNAP, this legislation will be deadly."
McGuire warned that the bill "deepens existing inequalities by limiting access to financial aid, making it even harder for young people to pursue a college education at a time when public trust in higher education is already eroding."
The reconciliation package includes several provisions that will directly impact higher education, including new limits on Grad PLUS and Parent PLUS loans that advocacy groups say will restrict access to graduate and professional education. The bill also raises taxes on large institutional endowments, though at lower rates than initially proposed.
However, higher education advocates succeeded in preventing some of the most damaging provisions from the original House bill, including proposals to eliminate subsidized loans and restrict Pell Grant eligibility.
Dr. Charles L. Welch, President and CEO of the American Association of State Colleges and Universities (AASCU), acknowledged the advocacy community's partial success while expressing concern about the bill's broader impact on state budgets.
