PENN HILL GROUP’S WRAP UP – SEPTEMBER 8, 2026

ADMINISTRATION

The U.S. Department of the Treasury and the U.S. Internal Revenue Service issued proposed regulations to end Federal tax-exempt status for private nonprofit schools that demonstrate preferential treatment on the basis of race, ethnicity and national origin.

The U.S. Department of Education (ED) released a draft of goals and objectives for Federal student aid in fiscal years 2026-2030. Stakeholders are invited to submit comments on the draft through September 23.

CONGRESS

The U.S. House of Representatives returned from August recess and passed a previously approved U.S. Senate continuing resolution by a 370 to 48 vote. The measure was subsequently signed into law by President Trump, funding the government through December 11.

The House passed H.R. 4795, the Protect Economic and Academic Freedom Act, on a 237 to 169 vote. The bill would require institutions participating in Federal student aid programs to certify that they do not engage in certain nonexpressive commercial boycotts of Israel or Israeli entities.

House leadership canceled the final two weeks of September legislative activity. Members are currently set to depart Washington, DC on September 17 and will not return until mid-November.

COURTS

A Federal judge in the State of California ruled student deportations based on political speech to be unconstitutional.