The Key with Inside Higher Ed Ep.: 185: Three Stories that Defined Higher Ed Policy in 2025
Dec 18, 2025
Jessica Blake, a federal policy reporter with a focus on U.S. higher education, and Katherine Knott, a news editor covering higher ed trends, dive into the pivotal policy stories of 2025. They discuss the groundbreaking 'Big Beautiful Bill' (OB3) and its sweeping changes, including loan caps and Workforce Pell guardrails. The duo highlights the shifting federal-state relationship, the growing impact of anti-DEI laws, and potential reforms in accreditation. Listeners gain insight into the challenges and implications for higher education's future.
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OB3 Act As De Facto HEA Update
- Congress passed a sweeping higher-education package nicknamed OB3 that functions like a de facto HEA update.
- The bill bundles loan caps, endowment taxes, Workforce Pell, and new accountability rules into fast-tracked reconciliation.
Compressed Rulemaking To Implement OB3
- Negotiated rulemaking is the Education Department's main tool to convert OB3's broad mandates into enforceable rules.
- The department compressed multiple complex topics into short, high-pressure rulemaking windows to meet July 2026 timelines.
Act Now On Workforce Pell Data Requirements
- Pay close attention to the Workforce Pell "70-70" guardrail for completion and job-placement in-field tests.
- States and programs must build data systems now to document outcomes if they want Pell access.