Washington Update: Dismantling the Department of Education and Redefining Oversight for Higher Ed

Tom Netting, president of TEN Government Strategies and a trusted Washington insider, returns to provide a critical update on sweeping federal changes affecting higher education. In conversation with Drumm McNaughton, he breaks down the Trump administration’s executive order to dismantle the Department of Education, a move that’s already led to major staff reductions and the redistribution of responsibilities across other federal agencies.

Key Discussion Points

Structural Overhaul of the Department of Education:

• Nearly 50% of ED staff have been laid off, including in core offices such as Federal Student Aid and the Office for Civil Rights.

• Regional participation offices have been shut down, leaving institutions without direct support contacts.

• The shift of student loan collections to the Small Business Administration signals an unprecedented reorganization of oversight.

Title IX and Civil Rights Rollbacks:

• The Supreme Court overturned Biden-era Title IX rules, reinstating Trump-era standards.

• Protections for transgender students and DEI-related compliance structures are being reversed or defunded.

• OCR layoffs jeopardize ongoing investigations and reduce institutional support.

Policy Enforcement Through Funding Threats:

• Columbia University’s $400M in federal funding was withheld and later restored after accepting federal conditions, including police authority to arrest student protesters and the appointment of an academic overseer.

• These enforcement tactics set a new precedent, raising concerns about academic freedom and governance.

Student Loan Crisis and Risk Exposure:

• Delinquency rates are reportedly spiking, with internal policy discussions suggesting 70–80% of borrowers may be behind.

• Institutions face growing exposure as default risks rise, with potential Title IV eligibility consequences.

• Risk-sharing legislation and budget reconciliation proposals could place financial liability on colleges for unpaid loans.

Governance, Autonomy, and Institutional Strategy:

• Boards must take a more active role in navigating federal restructuring and enforcement trends.

• The implications go beyond compliance—federal funding is increasingly tied to campus culture, policy, and speech.

• Strategic responses now require governance-level attention to protect institutional mission and integrity.

Three Key Takeaways for Higher Education Leaders and Boards

• Reassure students that aid is still available and prepare them for repayment obligations now managed under new federal structures.

• Support compliance and financial aid staff as they navigate the loss of regional ED contacts and fast-changing guidance.

• Re-evaluate governance-level policies on Title IX, DEI, and civil rights to ensure legal alignment and institutional resilience.

Download the March 2025 Higher Ed Board Briefing (PDF) →

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Read the transcript at:  https://changinghighered.com/washington-update-dismantling-the-department-of-education/

#HigherEducation #DepartmentofEducation #HigherEdPolicy

About Our Podcast Guest

Tom Netting

Having spent all of his professional career devoted to higher education policy oversight and implementation, Tom Netting has an extensive knowledge of the laws and regulations governing all aspects of higher education. His considerable background and experience have afforded him the opportunity to view the development and implementation of federal higher education and workforce development policy in their entirety – including issues related to higher education and workforce development, health care, veteran affairs policies, and the procurement of federal appropriations.

About the Host

Dr. Drumm McNaughton is the founder, CEO, and Principal Consultant at The Change Leader, Inc. A highly sought-after higher education consultant with 20+ years of experience, Dr. McNaughton works with leadership, management, and boards of both U.S. and international institutions. His expertise spans key areas, including accreditation, governance, strategic planning, presidential onboarding, mergers, acquisitions, and strategic alliances. Dr. McNaughton’s approach combines a holistic methodology with a deep understanding of the contemporary and evolving challenges facing higher education institutions worldwide to ensure his clients succeed in their mission.