Washington Watch: ED announces new FIPSE grants

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The U.S. Education Department (ED) on Monday announced a slate of new programs under the Fund for the Improvement of Postsecondary Education (FIPSE) to support initiatives related to artificial intelligence (AI), civic discourse, accreditation and short-term credential programs. The latter initiative may be of particular interest to community colleges that are gearing up for Workforce Pell grants, which are due to start next year.

The new funding opportunities fall under FIPSE’s “Special Projects” authority and technically take the form of “absolute priorities.” In all, the announcement details $167 million in available funds that ED will award across seven absolute priorities in four areas of “national need” (AI, discourse, accreditation and short-term programs) as follows:

  1. Advancing AI to improve educational outcomes of postsecondary students: $25 million
  2. Ensuring future educators and students have foundational exposure to AI and Computer Science: $25 million
  3. Promoting civil discourse on college and university campuses: $60 million
  4. Supporting institutions in changing accrediting agencies: $3.5 million
  5. Supporting the creation of new accrediting agencies: $3.5 million
  6. Creation of new high-quality short-term programs: $25 million
  7. Expansion of existing high-quality short-term programs: $25 million

An eligible entity may only be the lead grantee on one application in each area of national need but may apply to all four areas if desired. Grant applications are due December 3, a very tight turnaround, especially given the Thanksgiving Day holiday during that timeframe. ED must obligate these funds by the end of the year.

Overall picture

The areas of national need identified by ED dovetail with larger Trump administration priorities in each of these areas. The administration has been critical of accreditation and has used various means to ensure that campus discourse includes multiple viewpoints.

These new programs replace, at least temporarily, current FIPSE programs that had been specified by Congress in a report accompanying the annual Labor, HHS and Education appropriations act. These include Basic Needs Grants and Postsecondary Student Success Grants, which the American Association of Community Colleges supports.

Since fiscal year (FY) 2025 funding was accomplished through a year-long “continuing resolution” that did not have an accompanying report, the administration has asserted greater authority to reprogram funds within accounts, which is what happened here. Notably, all the current programs are funded in the Senate’s FY 26 LHHS-ED bill (but not the House), so those programs may return next fiscal year.

Community colleges should be encouraged by this latest show of support by the administration for Workforce Pell grants. As the priority titles indicate, the administration is seeking to support the creation of new programs and expansion of current short-term programs that would be eligible for Workforce Pell.

College could use the grant funds for a wide variety of purposes, including hiring faculty and staff, purchasing equipment, enhancing partnerships with employers, and improving data collection to show compliance with Workforce Pell eligibility requirements. These grants are for a four-year project period and will range from $1 million to $4 million, with an average grant of $2 million.

About the Author

Jim Hermes
Jim Hermes is associate vice president of government relations at the American Association of Community Colleges.
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