Washington Update (December 2025)-Presentation

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The December 19, 2025 Council for Advancement and Support of Education (CASE) Washington Update highlights key legislative and policy developments impacting education advancement. Congress is on recess until January amid a fractured House and a challenging election year ahead. Fiscal Year 2026 budget discussions are ongoing, with a continuing resolution extended through January 30, only three of twelve appropriations bills enacted, and uncertainty persists over a full budget or another shutdown.<br /><br />Significant administrative restructuring is underway as the U.S. Department of Education is being downsized through six interagency agreements transferring key functions to other departments—elementary and secondary education to Labor, international education to State—while federal student financial aid remains within ED for now.<br /><br />A new Private School Scholarship Tax Credit bill proposes up to $1,700 in federal tax credits for donors contributing to scholarship granting organizations (SGOs) benefiting students from households earning up to 300% of area median income, with state opt-in required and implementation slated for 2027. Treasury and IRS are seeking public comment on rulemaking by December 26, with organizations like NAIS and CASE providing input on critical points.<br /><br />The update also covers college athletics reforms under the SCORE Act addressing antitrust immunity, Name, Image, and Likeness (NIL) standards, contract transparency, and proposals affecting tax-exempt status. Federal research funding faces cuts and grant freezes, coupled with executive orders on workforce reductions, international student visas (H1-B), foreign gifts, and investigations into universities.<br /><br />Top policy areas affecting advancement include the OBBBA education and charitable provisions, federal executive orders on diversity, equity, and inclusion, the shrinking ED, and issues around international students and visa policies. CASE encourages engagement through its campaign whycollegematters.org and offers resources for members.<br /><br />Overall, the environment is marked by budget uncertainty, federal agency restructuring, new tax credit initiatives, regulatory scrutiny, and legislative proposals with significant implications for education advancement in 2026.

Keywords

CASE Washington Update

Education Advancement

Fiscal Year 2026 Budget

U.S. Department of Education Restructuring

Private School Scholarship Tax Credit

Scholarship Granting Organizations

College Athletics Reforms

Federal Research Funding Cuts

International Student Visa Policies

Diversity Equity Inclusion Executive Orders