Washington Insights & Highlights October 2nd

Appropriations Update: Federal Government Shutdown

On October 1, the federal government officially shut down after Congress was unable to pass fiscal year appropriations legislation before the end of the fiscal year. The shutdown has resulted in furloughs and the suspension of many nonessential operations. As a result of the shutdown, federal agencies have issued contingency plans regarding funding and agency activities.

CGS issued a statement urging the 119th Congress to work in a bipartisan and bicameral manner to pass legislation that would reopen the federal government. Read the full statement here.

For additional information on agency guidance and memorandums relevant to the graduate education community during the shutdown, please visit the Federal Government Shutdown section of our Budget and Appropriations webpage.

Breaking News: Trump Administration Asks Universities to Sign Compact for Academic Excellence

Earlier today, the White House sent letters to nine colleges and universities inviting them to join a new Compact for Academic Excellence in Higher Education. As first reported by the Wall Street Journal, colleges and universities that sign-on to this agreement would receive preferential access to federal funds in exchange for agreeing to a set of operational principles.

Specifically, universities would have to ban the use of race or sex in hiring and admissions, freeze tuition for five years, cap international undergraduate enrollment at 15-percent, require standardized testing for applicants, post program-level graduate earnings, reduce administrative costs, refund tuition for first-semester dropouts, and address campus political climate by ensuring open debate and prohibiting employees from expressing political views on behalf of the institution.

NSF Changes Eligibility Requirements for the Graduate Research Fellowship Program

On September 25, the National Science Foundation (NSF) unexpectedly changed the eligibility requirements for the Graduate Research Fellowship Program (GRFP). According to the program solicitation, second-year Ph.D. students will no longer be eligible to apply for the program. This unexpected, but significant, change in policy will place pressure on first-year Ph.D. Students to submit their application in the next six weeks. While NSF has not issued a formal explanation for the change in eligibility requirements.

Department of Education Works to Detail Provisions under One Big Beautiful Bill into Law

This week, the U.S. Department of Education’s (Department) Reimagining and Improving Student Education (RISE) negotiated rulemaking committee began its discussions on provisions concerning the One Big Beautiful Bill Act (OBBBA). The RISE committee spent significant time discussing the definition of a “professional degree.” Starting July 1, 2026, full-time graduate students may borrow up to $20,500 annually with a $100,000 aggregate limit, while full-time professional students may borrow up to $50,000 annually with a $200,000 aggregate loan limit. All students will face a lifetime borrowing cap of $257,500 for federal student loans (excluding Parent PLUS Loans), regardless of any amounts previously repaid, forgiven, or discharged. CGS Action: Here is a readout of the September 29 – October 2, 2025 RISE Committee Meeting.

White House Releases Fact Sheet on New $100,000 H-1B Application Fee

On September 19, the White House issued a proclamation and factsheet that increases the H-1B visa fee to $100,000. The proclamation directs the Departments of Homeland Security, State, and Labor to enforce the payment requirement and to deny entry or visa issuance for petitions not accompanied by the fee, unless an exemption is granted in the “national interest.” It also authorizes rulemaking to revise prevailing wage levels and prioritize higher-paid applicants under the H-1B program.

The fact sheet clarifies that the new fee will not apply retroactively to existing H-1B visa holders, renewals, or petitions filed prior to the effective date. Higher education institutions employed over 16,700 H-1B workers in teaching, research, and faculty roles as of June 30, 2025.

Senate Committee Seeks Feedback on College Cost & Value Transparency

The Senate Health, Education, Labor, and Pensions (HELP) Committee is requesting feedback on improving transparency in college costs, value, and financial aid. Stakeholders are invited to provide feedback on the development of net price calculators, the quality of data on college earnings and program outcomes, best practices for financial aid offer letters, and effective ways to communicate student loan information.

Comments should include legislative solutions, suggested changes to existing policies, or other insights on how the federal government can work with universities to ensure students and families have access to clear, accurate, and comparable information.

Feedback should be submitted to ValueTransparency@help.senate.gov by Friday, October 24, 2025.

In Case You Missed It

CGS Action: Below are recent letters from the Higher Education Community, including CGS, to the Administration and 119th Congress

• Duration of Status Proposed Rule: Higher education community letter to the U.S. Department of Homeland Security (DHS) that expresses concern about the proposed rule to limit the Duration of Status for F-1 international students and J-1 international scholars to four years. The proposed rule would also create a new “Extension of Status” process, as well as new limitations on the ability of international students to transfer or change their educational objectives.

• FY 2026 Allocation of Federal Funds: Higher education community letter to Congressional leadership urging lawmakers to ensure all funds allocated for fiscal year (FY) 2026 are spent by the administration as directed, which may require detailed legislative language and other procedural safeguards.

• Title VI and Fulbright-Hays Funding: Coalition for International Education letter and accompanying information packet to Secretary Linda McMahon objecting to the Administration’s proposal to eliminate funding for HEA Title VI and Fulbright-Hays programs. The letter calls for restoring the FY 2025 congressional appropriation of $85.7 million.

• Facilities & Administrative Costs: Joint Associations Group on Indirect Costs (JAG) letter to Congressional leaders regarding the proposed 15-percent cap on indirect costs.

For additional information on CGS policy communications, please visit our webpage.