New Era in Higher Education: Key OBBBA Changes and the Trump Administration’s Policy Shift

Brownstein Client Alert, July 29, 2025

On July 4, President Trump signed the landmark One Big Beautiful Bill Act (H.R.1, OBBBA) into law, ushering in a sweeping set of higher education reforms. The final bill introduces a new student loan repayment plan, updates borrowing limits for students, establishes Workforce Pell Grants and implements robust accountability measures as part of a broader Republican effort to reform higher education through legislative action. At the same time, federal agencies are intensifying oversight by mandating the restructuring or elimination of diversity, equity and inclusion (DEI) initiatives, imposing new compliance mandates, focusing increased attention on campus antisemitism and pursuing spending reductions. A comprehensive section-by-section summary of OBBBA’s higher education provisions can be found linked below, along with an analysis of both the bill’s impact and the broader effects of current federal oversight on the higher education landscape.

For our section-by-section summary, please click here.

For our analysis of the OBBBA’s effects on higher education, please click here.


THIS DOCUMENT IS INTENDED TO PROVIDE YOU WITH GENERAL INFORMATION REGARDING EFFECTS OF OBBBA ON EDUCATION. THE CONTENTS OF THIS DOCUMENT ARE NOT INTENDED TO PROVIDE SPECIFIC LEGAL ADVICE. IF YOU HAVE ANY QUESTIONS ABOUT THE CONTENTS OF THIS DOCUMENT OR IF YOU NEED LEGAL ADVICE AS TO AN ISSUE, PLEASE CONTACT THE ATTORNEYS LISTED OR YOUR REGULAR BROWNSTEIN HYATT FARBER SCHRECK, LLP ATTORNEY. THIS COMMUNICATION MAY BE CONSIDERED ADVERTISING IN SOME JURISDICTIONS.