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By Sharon H. Bob, Ph.D., Higher Education Specialist, Powers Pyles Sutter and Verville, PC

Trump orders federal agencies to identify regulations for elimination

On Feb. 24, 2017, President Donald Trump ordered federal agencies to begin identifying regulations for elimination. Within 60 days of the date of the order, federal agency heads, except those with waivers, are required to select an agency official as its Regulatory Reform Officer (RRO) to oversee the implementation of regulatory reform initiatives and policies to ensure that agencies effectively carry out regulatory reforms. Each agency is required to establish a Regulatory Reform Task Force to identify regulations that eliminate jobs or inhibit job creation; are outdated, unnecessary, impose costs that exceed benefits; or create inconsistencies or conflicts with regulatory reform initiatives and to make recommendations to the agency head regarding repeal, replacement, or modification of rules.

A copy of the Executive Order is found at: https://www.whitehouse.gov/the-press-office/2017/02/24/presidential-executive-order-enforcing-regulatory-reform-agenda

Senate confirms DeVos as Secretary of Education

On Feb. 7, 2017, the Senate approved Betsy DeVos as the next Secretary of Education. Vice President Pence cast the tie-breaking vote in her favor. Mrs. DeVos’ confirmation hearing was said to be “underwhelming” because of her apparent lack of preparation and knowledge about the Department’s programs, specifically her lack of familiarity with public education. Her nomination was strongly opposed by Democrats and two Republican Senators, Lisa Murkowski (R-AL) and Susan Collins (R-ME).

Mrs. DeVos was not only opposed by teachers’ unions, but grass-roots local parents’ and teachers’ organizations because she has fought for the expansion of the charter school sector but also for school vouchers, which allow students to use taxpayer dollars to private schools, for-profit schools, religious schools and online schools.

Ranking Member of the Health, Education, Labor and Pensions (HELP) Committee Patty Murray (D-WA) said:

“For people across the country…the nomination of Betsey DeVos truly hit close to home. It was a slap in the face. Because she doesn’t approach this the way most of us do. She doesn’t cherish public education – she doesn’t value it. She is someone who has dedicated her career and her inherited fortune to privatizing public schools. To tearing down public education. To defunding it – in order to push more taxpayer dollars into private schools and for-profit charters.”

Chairman of the HELP Committee Lamar Alexander (R-TN) spoke on the Senate floor before the vote:

“I’m supporting her … because she’s led the most effective public school reform over the last 30 years and of her commitment to help low-income children. You may disagree with the new president, but the people elected him. And I urge you to give the new Republican president the opportunity to choose his own education secretary, just like we did the Democratic president eight years ago and one year ago, even though we disagreed just as much with their view of federal policy on local schools as you do with her policy and President Trump’s policy on school choice.”

Trump asks Falwell to head task force on higher education regulations

On Jan. 31, 2017, President Donald Trump appointed President of Liberty University, Jerry Falwell, Jr., to lead a presidential task force on reducing college regulations. Mr. Falwell said he sees this as a response to “overreaching” regulations and micro-management in areas of accreditation and policies that affect student recruiting.

On Feb. 23, 2017, a number of Senate Democrats sent a letter to Secretary of Education Betsy DeVos asking her for details on the education task force. The Senate Democrats that include Ranking Member of the Senate Health, Education, Labor and Pensions Committee Patty Murray (D-WA), Senator Elizabeth Warren (D-MA), Senator Dick Durbin (D-IL), Senator Sheldon Whitehouse (D-RI), Senator Tammy Baldwin (D-WI), and Senator Maggie Hassan (D-NH) asked for responses to their questions by March 9, 2017. The letter says: “As your agency will be the primary convener of the ‘task force,’ we ask that you provide clarity about how it will operate and how the Department intends to ensure fairness and transparency at every state of the task force’s work.”

A copy of the letter is found at: https://www.scribd.com/document/340105153/Falwell-Task-Force-Letter-2-23-17

Ranking member of HELP Committee Patty Murray asks DeVos to clarify comments made regarding ED employees

On Feb. 23, 2017, Senator Patty Murray (D-WA), Ranking Member of the Health, Education, Labor and Pensions Committee (HELP), wrote to Secretary of Education Betsy DeVos expressing concern over recent comments that she had made suggesting that she planned to take action against Department of Education employees who could be trying to “subvert” the agency’s mission. Senator Murray wrote: “Any threats or intimidations that there could be retaliation against civil servants hired by a previous Administration simply because they do not share the current Administration’s ideology would be deeply concerning, and if acted upon, potentially illegal.” Senator Murray asked the Secretary to respond to her questions by March 3, 2017.

Committee leaders promise robust oversight of new Administration in letters to ED and HHS Secretaries

On Feb. 16, 2017, Chairman of the House Education and the Workforce Committee Virginia Foxx (R-NC), Brett Guthrie (R-KY), Chairman of the Subcommittee on Higher Education and Workforce Development, Todd Rokita (R-IN), Chairman of the Subcommittee on Early Childhood, Elementary, and Secondary Education, wrote to Secretary of Education Betsy DeVos and Secretary of Health and Human Services Tom Price expressing their commitment to holding the Trump administration accountable to the American people through robust congressional oversight efforts in the 115th Congress. The letter also said that they hoped to “establish an effective and collaborative working relationship with you and your staff during the 115th Congress. A significant part of that relationship will entail the committee’s continuing oversight efforts to ensure good governance and the protection of taxpayer dollars. Working together, we can identify and abate fraud, waste, and abuse, as well as better ensure federal policies are efficient, effective, and accountable to the American people.”

Similar letters were sent to the Secretaries of Labor and Agriculture.

A copy of the letter is to Secretary DeVos is found at: http://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=401344

Massie introduces bill to abolish the Department of Education

On Feb. 7, 2017, Congressman Thomas Massie (R-KY) introduced a bill to terminate the Department of Education on Dec. 31, 2018. “Unelected bureaucrats in Washington, D.C. should not be in charge of our children’s intellectual and moral development. State and local communities are best positioned to shape curricula that meet the needs of their students.” Seven other Republicans signed on to Congressman Massie’s bill: Jason Chaffetz (UT), Justin Amash (MI), Andy Biggs (AZ), Matt Gaetz (FL), Jody Hice (GA), Walter Jones (NC), and Raúl Labrador (ID).

A copy of the press release is found at: https://massie.house.gov/newsroom/press-releases/rep-massie-introduces-bill-to-abolish-federal-department-of-education

House votes to rein in federal role in education

On Feb. 7, 2017, the House voted to block two Obama administration regulations that, “if implemented, would expand the federal role in education and diminish the ability for state and local leaders to make decisions affecting their students, teachers, and schools,” according to a press release released by the House Education and the Workforce Committee.

Introduced by Higher Education and Workforce Development Subcommittee Chairman Brett Guthrie (R-KY), H. J. Res. 58 blocks a rule that would have expanded the federal government’s involvement in the teacher preparation programs. Introduced by Early Childhood, Elementary, and Secondary Education Subcommittee Chairman Todd Rokita (R-IN), H. J. Res. 57 blocks a regulation that would implement accountability provisions in the Every Student Succeeds Act through annual evaluations.

Chairwoman of the House Education and the Workforce Committee Virginia Foxx (R-NC) expressed her support for both resolutions and applauded the chairmen for the leadership in protecting state and local control of education.

A copy of the press release is found at: http://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=401280

House Education and the Workforce Committee holds first hearing on higher education in the 115th Congress

On Feb. 7, 2017, the House Education and the Workforce Committee held its first hearing on higher education in the 115th Congress, titled “Challenges and Opportunities in Higher Education,” which examined federal, state, and institutional issues facing America’s higher education system and discussed possible improvements to the Higher Education Act.

Chairwoman Virginia Foxx (R-NC) opened the hearing by stating: “We need to repeal unnecessary reporting requirements and address many of the harmful and misguided regulations imposed by the former Administration. However, we should do so while also delivering strong, commonsense accountability in federal programs.” Chairwoman Foxx went on to state: “These are exciting times in higher education. Today there are more opportunities for more individuals to pursue higher education than ever before. However, America’s higher education system is also facing a number of significant challenges.”

Chairwoman Foxx identified four principles she plans to focus on for a reauthorization bill:

  • Empowering students and families to make informed decisions;
  • Simplifying and improving student aid;
  • Promoting access, innovation, and completion; and
  • Providing strong accountability and a limited federal role.

Chairwoman Foxx and Ranking Member Booby Scott (D-VA) expressed their commitment to reauthorizing the Higher Education Act.

Witnesses and members discussed strategies for simplifying and expanding federal student aid, reforming the federal student loan system, and reducing the cost of education. They also discussed innovative models of higher education and how to better align postsecondary education with workforce needs.

Chairwoman Foxx concluded the hearing by stating: “It’s clear that we have our work cut out for us, but inaction is not an option. Today marks the beginning of the next phase in our effort to strengthen America’s higher education system for students, parents, institutions, and taxpayers. I look forward to the important work that lies ahead. Let’s get to work.”

House Committee on Education and the Workplace approves its rules and oversight packages

On Jan. 24, 2017, Chairwoman Virginia Foxx (R-NC) met with the new and continuing members of the House Committee on Education and the Workplace to approve its rules and oversight packages for the 115th Congress. In her opening remarks, Chairwoman Foxx welcomed her members and outlined her legislative agenda for the 115th Congress:

“We will take steps to strengthen career and technical education …We came close last year to enacting reforms that would provide states more flexibility, reduce administrative burdens, improve accountability, and better ensure students are prepared for in-demand jobs. It is my hope we will finish this important work in the coming months. Furthermore, we will continue our efforts to make higher education more accessible and affordable, deliver a patient-centered health care system that provides better access to affordable coverage, and help more Americans retire with financial security and peace of mind.”

Ranking Member Bobby Scott (D-VA) also welcomed the members and outlined his priorities for the 115th Congress:

“I also look forward to working with you to achieve a comprehensive reauthorization of the Higher Education Act. A reauthorization that expands access to college, makes it more affordable, allows students to complete their program with a quality degree or credential that makes them competitive in the 21st century economy.”

The committee then examined its rules package and made minor changes to those policies and procedures followed in the 114th Congress. Two of the provisions in the rules plan include:

  • Student Loans: The Department manages $1.3 trillion in outstanding federal student loans and disburses billions in grants and work-study funds each year. The committee will continue to monitor the costs and performance of these programs.
  • Higher Education Regulations: Institutions of higher education are subject to myriad federal regulations and reporting requirements that are often burdensome and costly. The regulatory burden is only worsened with rules that interfere with academic freedom, infringe on the authorities of the states, limit student choice, and unfairly target particular sectors of higher education. The committee will continue its oversight of regulatory policies and challenge those that enlarge the federal footprint in higher education.

Sixteen veterans organizations send letter to Senate and House Education Committees urging them not to roll back Obama administration’s policies

Sixteen veterans organizations sent a letter to leaders of the Senate Health, Education, Labor and Pensions Committee and the House Education and the Workforce Committee urging them not to roll back several of the Obama administration’s policies aimed at making colleges and universities more accountable. The organizations urged Congress not to weaken or eliminate the gainful employment rule aimed at poor-performing for-profit schools, the borrower defense to repayment rule aimed at providing debt relief for defrauded students, the ban on incentive compensation, and the Student Aid Enforcement Unit.

A copy of the letter is found at: http://www.protectstudentsandtaxpayers.org/wp-content/uploads/2017/02/Letter-on-Education-Protections.pdf

Secretary of Education signals plan to expand vocational and technical education

On Feb. 16, 2017, Secretary of Education Betsy DeVos delivered a speech at the 2017 Community College National Legislative Summit hosted by the Association of Community College Trustees and the American Association of Community Colleges. In her speech, Secretary DeVos stated that “community colleges are a uniquely American national asset. You are nimble, inclusive and entrepreneurial. You provide important and valued pathways for students to prepare for success in this competitive economy. You equip students for high-demand fields and skilled jobs that help grow local economies and maintain communities.”

She signaled that both she and President Trump plan to emphasize the importance of expanding vocational and technical education, a goal included in the President’s 100-day action plan. In addition, she said that she shared President Trump’s vision that it was “an absolute priority” to provide multiple pathways for postsecondary education. She stated: “Today is the beginning of what I’m confident will be years of productive collaboration and a healthy exchange of ideas between our country’s colleges and universities and the Department of Education.”

A copy of Secretary DeVos’ prepared remarks is found at: https://www.ed.gov/news/press-releases/us-secretary-education-betsy-devos-prepared-remarks-community-college-national-legislative-summit

Treasury and Education Departments announce progress toward multi-year income certification system for borrowers in income-driven repayment plans

On Jan. 17, 2017, the Departments of Treasury and Education announced that they have signed a Memorandum of Understanding establishing a framework for electronically sharing tax data over multiple years for federal student loan borrowers who participate in income-driven repayment plans. The agreement is intended to simplify the income-driven plans for borrowers by allowing borrowers to provide consent for the Internal Revenue Service to share certain information with FSA and its loan servicers for a period of at least five years. The creation of the multi-year consent system will eliminate the need for borrowers to send in their income information to FSA each year, which is the current requirement.

A copy of the announcement is found at: https://www.ed.gov/news/press-releases/treasury-and-education-announce-progress-toward-multi-year-income-certification-system-student-loan-borrowers-income-driven-repayment-plans

U.S. District Court Judge denies motion filed by ACICS for a preliminary injunction

On Feb. 21, 2017, U.S. District Judge Reggie Walton denied a motion filed by ACICS for a preliminary injunction that would have blocked the Department of Education from proceeding with the de-recognition of ACICS. Judge Walton said that ACICS had not demonstrated “a substantial likelihood” of prevailing on the merits of its case. Judge Walton found that then-Secretary of Education John B. King, Jr. had the discretion to give ACICS more time to comply but that he had decided to terminate ACICS instead. Judge Walton also ruled that ACICS had failed to show that it had suffered “irreparable harm” as a result of Secretary King’s decision. Finally, Judge Walton weighed the public interest factors involved and agreed with the Department of Justice that there was an “obvious significant public interest” in protecting millions of taxpayer dollars by upholding the Department’s decision to terminate the recognition of ACICS.

AACS sues Department of Education over GE Rule

On Feb. 10, 2017, the American Association of Cosmetology Schools (AACS) filed a lawsuit against the U.S. Department of Education over its Gainful Employment Regulation in U.S. District Court for the District of Columbia. In American Association of Cosmetology v. Elizabeth DeVos, Secretary of Education, AACS seeks to block the implementation of the gainful employment rule against its member schools. According to the lawsuit, the rule that measures educational programs by graduate debt relative to earnings is flawed in its construction because it undercounts cosmetology graduates’ income, resulting in erroneous failing results. The lawsuit points out that like many self-employed workers who rely significantly on gratuities and are paid in cash, it is likely that cosmetologists underreport their incomes. The complaint asserts that “although the Department acknowledges that some graduates of cosmetology underreport their incomes, the Department has made no provision for such underreporting in its regulations.” As a result, the complaint states that the rules may force many “cosmetology programs to close that are doing an excellent job of preparing students for gainful employment in the cosmetology field.”

A copy of the lawsuit is found at: https://www.republicreport.org/wp-content/uploads/2017/02/AACS-v-Devos-complaint.pdf


Sharon Bob

SHARON H. BOB PH.D., Higher Education Specialist on Policy and Regulation, is a member of the Education Group at the Washington, DC law firm of Powers Pyles Sutter & Verville, PC. Dr. Bob advises all sectors of higher education regarding strategic issues pertaining to their participation in the federal student financial assistance programs, accreditation, licensure, education tax benefits, and related regulatory matters.



Contact Information: Sharon H. Bob, Ph.D. // Higher Education Specialist // Powers Pyles Sutter and Verville, PC // 1501 M Street, NW, Suite 700, Washington, DC 20005 // 202-872-6772 // Sharon.bob@ppsv.com // http://www.powerslaw.com

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