The U.S. Education Department (ED) this week kicked off one of two upcoming negotiated rulemaking sessions to implement the higher education components of H.R. 1, the One Big Beautiful Bill (OBBB) reconciliation legislation.
The table – the Reimagining and Improving Student Education (RISE) Committee – will address changes to student loan origination and repayment policies, including new institutional discretion to lower loan maximums on a programmatic basis. Despite comments from the American Association of Community Colleges, community colleges were not given their own seat at the negotiating table. Instead, public non-profit institutions are represented by two negotiators from public four-year colleges.
The first week largely focused on establishing committee procedures, clarifying items in the department’s initial issue papers, and discussing how to define a professional student for the purpose of new loan limits.
ED sticks to July 1, 2026 implemenation date
Of note, ED officials clarified that they are working toward an effective date of July 1, 2026, for the implementation of OBBB. While the statute has an effective date of July 1, 2026, there was a question on whether the department would ask for an extension to comply with “Master Calendar” rules. These rules state that final rules must be published by November 1 to go into effect July 1 of the following year.
ED officials shared that they have interpreted the statute’s effective date to signal Congress’ intent to waive the Master Calendar requirements. Instead, ED will have a final rule out no later than June 1, 2026, to go into effect by July 1.
The panel will continue negotiations this week and will meet again in November. At the conclusion of the sessions, they will vote on regulatory text proposed in the edited issue papers.
Workforce Pell talks start in December
A second panel – the Accountability in Higher Education and Access through Demand-driven Workforce Pell (AHEAD) Committee – will be tasked with implementing Workforce Pell, the new accountability system that measures the earnings of program completers against a comparison group of high school graduates, and gainful employment/financial value transparency regulations. This panel will meet in December and January.
