PENN HILL GROUP’S WRAP UP – OCTOBER 5, 2026
ADMINISTRATION
The U.S. Department of Education (ED) formally rescinded the Biden Administration’s 2024 Title IX regulations and reinstated the Title IX regulations issued under the first Trump Administration in 2020.
The White House announced a plan to rescind $95 million from education programs, including $70 million from domestic grants within ED’s International and Foreign Language Education program and roughly $25 million for programs serving migrant students. This action is part of an $810 million package of proposed recissions.
ED issued a memo stating grant recipients will be required to provide written justification with payment requests for all grants administered by the agency starting November 1.
ED released Fiscal Year (FY) 2023 official student loan cohort default rates (CDRs). The national CDR was 0.4 percent, up from 0 percent last year.
ED extended the enrollment period for a temporary 1 percent interest rate reduction for Federal student loan borrowers who enroll in autopay through December 31.
The U.S. Department of the Treasury (Treasury) and the Internal Revenue Service issued temporary interim final and proposed regulations to implement the Federal Scholarship Tax Credit. The proposed regulations are open for public comment through December 1.
ED and Treasury launched a website with support options for borrowers with defaulted student loans.
CONGRESS
The U.S. Senate passed S.4668, the Protect College Sports Act, by a 77 to 22 vote.
The Senate confirmed Keith Sonderling as the U.S. Secretary of Labor by a 47 to 41 vote.
The U.S. Government Accountability Office released a letter to congressional leaders concluding that the Administration’s proposed recission package violates the Impoundment Control Act by withholding funds beyond their expiration date.
The Senate concluded legislative business and is scheduled to return, along with the U.S. House of Representatives, on November 9 after the midterm elections.
COURTS
While several related court challenges are pending, a Federal judge temporarily blocked the expiration of $56 million in funding for U.S. Department of Housing and Urban Development programs that were included in the Administration’s proposed recission.
A status report was filed in NCLD v. OMB stating that the Institute of Education Sciences has obligated approximately 99.5 percent of its FY 2025 funding, including approximately $180 million that had remained unobligated as of August.
A Federal judge temporarily blocked ED from publicly revealing the names of foreign donors to U.S. universities.
A Federal district court judge in Texas v. Kennedy ordered certain provisions in nondiscrimination regulations related to the integration of individuals with disabilities to be vacated.