A Primer: What Is Budget Reconciliation? It is a fast-tracked legislative process that allows Congress to make changes to spending, revenue, and the federal debt limit with a simple majority vote. While designed to streamline fiscal legislation, reconciliation limits debate, restricts amendments, and eliminates the filibuster process and the need for bipartisan support. In this case, the House aims to use its reconciliation bill to permanently implement several expiring tax cuts, while offsetting the cost through deep spending reductions, many of which will be detrimental to institutions of higher education, students, and communities.
Why This Matters: Attempting to enact these significant and complex policy changes through the reconciliation process, rather than through regular order, limits thoughtful debate and bipartisan input. These reforms will not address the root causes of rising tuition or student debt, but they will make college less accessible, affordable, and responsive to the realities of today's students.
AASCU calls on all RPU leaders to oppose these harmful provisions. Let us continue to protect access, preserve affordability, and support the institutions, students, and workforces that anchor communities and drive economic mobility. We encourage you to personalize your letter to include your name, relevant information about your state and region, and institutional data about Pell Grant recipients, non-traditional students, and Medicaid use.
Why Higher Education Leaders Must Engage Now: The House’s proposed budget reconciliation bill, now in the Senate for consideration, would significantly undermine student success, college access and affordability, and institutional capacity, particularly at regional public universities (RPUs), which serve a disproportionate share of Pell-eligible, first-generation, working, and part-time students. As drafted, the legislation currently includes sweeping policy changes that, among many other things, would:
1) Shrink federal investment in student financial aid and support services by limiting access to Pell Grants for part-time students;
- Pell Grants are the most vital federal aid program for low- and moderate-income students. Yet, the program is expected to face a $2.7B shortfall by the end of FY25. If Congress does not act, the budget shortfall will reach nearly $10B by FY26.
- This proposal would eliminate access to Pell Grants for future less-than-part-time students (those taking under 7.5 credit hours per semester under a new policy) by changing the definition of a full-time student to at least 15 credit hours per semester (from 12). These changes would disproportionately impact RPUs, where as many as 38% of students rely on Pell Grants, and over 25% attend part-time, often due to family or work responsibilities.
- This provision is intended to cut Pell at a time when the program needs more support than ever. Because of Pell Grants, obtaining a college education is possible for 50% of first-generation college students and 56% of parents with children.
2) Penalize colleges and universities through an imbalanced and disproportionally unfair new risk-sharing model, ultimately disincentivizing institutions to serve nontraditional, part-time, and lower-income students;
- When the College Cost Reduction Act was introduced in 2024, it was framed to increase institutional accountability for rising tuition and poor loan outcomes by ensuring colleges had “skin in the game," but at its core remains a deeply flawed proposal. The risk-sharing provision would require institutions in the Direct Student Loan program to make annual payments to the federal government if a portion of their borrowers default on their loans or if their loans are forgiven.
- Risk-sharing provisions ignore the stark reality that RPUs do not shrink from accountability. RPUs are closely attuned to the needs of their communities and have long operated with a deep sense of responsibility for student outcomes and success. Applying a one-size-fits-all policy across all of higher education fails to recognize these institutions’ unique roles and risks penalizing the campuses, which work to expand opportunity and drive economic and social mobility.
- This proposal creates a dangerous incentive for institutions to become more selective, undermining access and weakening the very institutions that are most committed to advancing student success and regional workforce development.
3) And jeopardize healthcare access for 3.4 million college students who rely on Medicaid, creating additional strain on state budgets and increasing the risk of further cuts to state funding for public higher education.
- Medicaid cuts would jeopardize healthcare access for millions of college students, including physical and mental health services essential for academic success.
- Cuts could also trigger further reductions in higher education funding at the state level, compounding the challenges faced by public colleges and universities.
- Many states would face tough decisions between maintaining healthcare programs and funding public higher education. Cuts could then lead to higher tuition, reduced services, and decreased state financial aid.
The policies discussed above do not exhaustively cover everything in the reconciliation bill that concerns AASCU, its member institutions, and the RPU sector. Yet, we believe these will have the most immediate, direct impact on our campuses. These provisions are not just technical adjustments—they would fundamentally alter how RPUs operate, who they serve, and whether the doors to higher education remain open for millions of students. The stakes are too high for inaction. Lend your voice today to ensure Congress understands the lasting damage these policies could cause.
Help amplify this message—share this campaign link widely so that your U.S. senators hear from as many voices as possible. If you have any questions or feedback on navigating the platform, please email our team at govrel@aascu.org!