The Senate convened Monday to begin final debate and voting on the GOP’s sweeping reconciliation bill, a massive tax and immigration package that carries significant and largely harmful implications for higher education. In recent days, several education provisions have been added, removed, or revised, reshaping the bill’s potential impact on colleges and students.
Last week, the Senate parliamentarian released a decision that certain provisions in the proposed text would not be able to move forward. The eliminated provisions included student aid eligibility restrictions for immigrant students, application of the new student loan programs to current borrowers, and a widely supported plan to expand Pell Grants to short-term workforce programs.
However, a new accountability measure targeting program-level outcomes survived the review and remains in the bill.
Among the other higher education-related provisions that remain:
- A federal accountability framework that would cut off loan access for academic programs that consistently leave students earning less than high school graduates.
- An increase in the endowment tax for certain institutions, with new exemptions for colleges enrolling fewer than 3,000 students and for certain religious schools.
- Broad cuts to safety net programs, including Medicaid, although some proposed reductions were pared back during parliamentarian review.
The Senate began a marathon voting session Monday morning, with dozens of amendments expected. Democrats are united in opposition to the bill, and the GOP has little room to spare: two Republicans have announced their opposition, leaving just one more defection before Vice President J.D. Vance would be needed to break a tie.
Even if passed by the Senate, the bill must be reconciled with the House version, which includes a different approach to accountability—risk-sharing measures that would require colleges to repay a portion of students’ unpaid loans. That would trigger a second review under reconciliation rules, and further changes are likely.
On June 27, ACE and nearly 50 other higher education associations sent a letter to Senate leaders warning that the bill’s student aid cuts, expanded taxes on colleges, and other policy changes would reduce access and affordability for students while undercutting institutional support for research and financial aid. The letter expressed concern over new limits on graduate and Parent PLUS loans, the expanded endowment tax, and changes that would increase repayment burdens for borrowers, calling for revisions before the Senate moved forward with a final vote.
ACE and other higher education advocates continue to work with congressional staff to address concerns as negotiations continue. For more information and to send a letter to your lawmakers, see our Advocacy Toolkit.