In recent days, the Department of Education has announced two sets of investigations stemming from the administration’s application of the U.S. Supreme Court’s 2023 decision in Students for Fair Admissions v. Harvard. The announced investigations are focused on institutional compliance within the context of the Supreme Court opinion and subsequent guidance from the Department of Education in the February 14, 2025, “Dear Colleague Letter.” Read the full Alert on the Duane Morris website.
Webinar Replay: Anatomy of the False Claims Act for Educational Institutions
A replay of the Anatomy of the False Claims Act for Educational Institutions webinar is now available for viewing.
TROs Remain for Universities and Academic Associations in NIH Rate Change Suits
By Dan Walworth, Rolando Sanchez, Frederick Ball, Geoffrey Goodale and Sara Smith
Since taking office, the Trump Administration has taken steps to reshape the United States’ federal funding infrastructure. One such action relates to the National Institutes of Health’s (“NIH”) rate change, imposing a 15% cap for indirect costs, for new grants and for existing grants awarded to institutions of higher education (“IHEs”). This rate change, which represents a drastic reduction from historical rates normally negotiated by grant recipients, will impact ongoing research programs and clinical trials, and will have a long-term impact on the United States’ research infrastructure and abilities.
On February 10, 2025, the day the rate change was intended to go into effect, three lawsuits were filed in the U.S. District Court for the District of Massachusetts challenging the rate change. The lawsuits were filed by a group of stakeholders, including twenty-two states, thirteen universities, three university associations and five associations. Also on February 10, 2025, a district court judge granted two temporary restraining orders (“TROs”), enjoining enforcement of the rate change within the 22 Plaintiff states, and enjoining enforcement nationwide with respect to institutions. On February 21, 2025, following a hearing on the Plaintiffs’ motions for injunctive relief, the district court ordered that the TROs entered on February 10, 2025 are extended and will remain in effect until further order of the Court.
New CA Law May Require Schools to Register with the Department of Financial Protection and Innovation
In 2020, the California State Legislature passed the California Consumer Financial Protection Law (“CCFPL’) as AB 1864. This law provided the Department of Financial Protection and Innovation (“DFPI”) with authority to oversee several areas of the financial marketplace, including private postsecondary education financing.
DFPI recently finalized new regulations requiring providers of postsecondary education financing to register and submit data to DFPI. Providers subject to registration requirements must file an application by February 15, 2025.
The DFPI is requesting all postsecondary institutions to do one of the following:
• If you are a postsecondary institution that offers or provides education financing to California residents and required to register, please file an application for CCFPL registration by February 15, 2025, to continue operating legally in the state.
• If you are a postsecondary institution that offers or provides education financing to California residents through a partnership with a third-party, please alert any third party partners of this registration requirement and send an email to CCFPL. CCFPL.Inquiries@dfpi.ca.gov explaining why you do not intend to register.
• If you are a postsecondary institution that is not subject to this registration requirement, please send an email to CCFPL.Inquiries@dfpi.ca.gov explaining why you do not intend to register.
Under the CCFPL, no person shall engage in the business of offering or providing postsecondary education financing to California residents without first registering with the DFPI. Postsecondary institutions should contact counsel to determine if its educational financing (including providing institutional loans) triggers registration.
Federal Court Overturns 2024 Title IX Rule
On January 9, 2025, a federal court vacated the Biden administration’s 2024 Title IX rule, effectively reinstating the 2020 regulations nationwide.
The 2024 Title IX rule was subject to litigation after it went into effect on August 1, 2024, and was enjoined in more than half of the country. This January 9 final decision from the Eastern District of Kentucky resolves the uncertainty that resulted from the various temporary injunctions in place since the 2024 Title IX rule went into effect.
The court’s decision to invalidate the 2024 Title IX rule was based on a number of reasons, including that the U.S. Department of Education exceeded its statutory authority in expanding the definition of “on the basis of sex” to include gender identity and sexual orientation. Because the 2024 Title IX rule was vacated and cannot be applied to “all who would otherwise be subject to its operation[,]” the rule is vacated on a nationwide basis. The ruling could be appealed, but given the imminent transition to a new administration, it is unlikely that the decision will be appealed.
Our current understanding is that the 2020 Title IX rule (which went into effect during President-elect Trump’s first administration) is now controlling. The 2020 Title IX regulations include:
- A definition for “sexual harassment” and the requirement that complaints be formal complaints;
- Grievance procedures that contain a live hearing with cross-examination;
- Publication of training materials and certain contact information; and
- A narrowing of reporting obligations for individuals with knowledge of sexual misconduct.
About Duane Morris
Duane Morris attorneys are available to help institutions review the 2020 Title IX rule regulations and discuss the impact on polices, publications and training. We will continue to monitor this matter and will provide further updates.
For More Information
If you have any questions about this Alert, please contact any of the attorneys in our Higher Education Group or the attorney in the firm with whom you are regularly in contact.
Webinar Replay: Post-Election Analysis: Federal Regulatory and Legislative Impacts on College and University Operations
A replay of Post-Election Analysis – Federal Regulatory and Legislative Impacts on College and University Operations is now available for viewing.
Webinar: Post-Election Analysis: Federal Regulatory and Legislative Impacts on College and University Operations
Duane Morris will present the next entry in its webinar series, Boot Camp for Education Legal Leadership: Higher Education at the Political and Legal Crossroads: Protecting Your Institution’s Mission During a Time of Uncertainty, Post-Election Analysis – Federal Regulatory and Legislative Impacts on College and University Operations, to be held on Tuesday, November 12, 2024, at 2:00 p.m. Eastern | 11:00 a.m. Pacific.
Continue reading “Webinar: Post-Election Analysis: Federal Regulatory and Legislative Impacts on College and University Operations”Webinar Replay – Investigations and College Operations – Best Practices for Internal Investigations and Responding to Government Investigations and Inquiries
A replay of Investigations and College Operations – Best Practices for Internal Investigations and Responding to Government Investigations and Inquiries is now available for viewing.
The CROWN Act in the Classroom:
What Schools Should Know About Hairstyle Anti-Discrimination Laws
With school back in session, one of the many topics for schools and school districts to keep top of mind is the expanding reach of the Creating a Respectful and Open World for Natural Hair (“CROWN”) Act.
The CROWN Act recognizes that hair texture and hairstyle have racial, ethnic and cultural significance. While efforts to pass the CROWN Act on a federal level have stalled, more and more states are passing laws to ban hairstyle discrimination in school, work and public settings. As a result of these state legislative efforts, a growing number of schools must abide legal restrictions designed to ensure that a student’s hairstyle choice does not impede their educational experience.
Continue reading “The CROWN Act in the Classroom:”Webinar: Investigations and College Operations – Best Practices for Internal Investigations and Responding to Government Investigations and Inquiries
Duane Morris will present the next entry in its webinar series, Boot Camp for Education Legal Leadership: Higher Education at the Political and Legal Crossroads: Protecting Your Institution’s Mission During a Time of Uncertainty, Investigations and College Operations – Best Practices for Internal Investigations and Responding to Government Investigations and Inquiries, to be held on Tuesday, October 15, 2024, at 2:00 p.m. Eastern | 11:00 a.m. Pacific.
Continue reading “Webinar: Investigations and College Operations – Best Practices for Internal Investigations and Responding to Government Investigations and Inquiries”