Tom Harnish warns of Pell shortfall, accreditation and loan-cap changes that could squeeze HBCUs
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Summary
At the HBCU Advisory Council meeting, Tom Harnish (SHIELD/CHEO) told Louisiana higher-education leaders that flat federal appropriations, a projected Pell shortfall and new graduate-loan caps could materially affect HBCU students while administration-led accreditation changes add regulatory uncertainty.
Tom Harnish, identified by the council as SHIELD/CHEO government relations lead, told the HBCU Advisory Council on Feb. 26 that federal funding for higher education is essentially flat and that several near-term policy changes could have outsized effects on historically Black colleges and universities.
"Pell grants have been flat funded for the last four years," Harnish said, and he warned council members that Congress faces a Pell shortfall driven by higher enrollment after FAFSA simplification. He told the group Congress will have to decide whether to cut eligibility, reduce the maximum award, or provide supplemental funding to avert reductions that would hit many HBCU students; he said roughly two in three HBCU students receive Pell grants.
Why it matters: HBCUs enroll disproportionate shares of Pell recipients, so any changes to Pell eligibility or maximums could affect both student access and institutional revenue. Harnish encouraged attendees to use their federal contacts to press for full funding.
Harnish also described changes to graduate borrowing under recent legislation, saying Grad PLUS is being replaced by a two-tiered approach that caps nonprofessional graduate loans at $20,500 a year (and about $100,000 lifetime) while placing higher but limited caps on professional programs. "This is a sea change for students pursuing graduate education," he said, adding that the new rules take effect for students entering programs after July 1.
On accreditation, Harnish said the administration is pursuing negotiated rulemaking to expand accreditors, reduce administrative burden and emphasize measurable outcomes. "They want to lower barriers of entry to new accreditors and focus on institutional quality rather than box-checking," he said, and noted the department has signaled it will remove some DEI-related standards from accreditor considerations.
Council response and next steps: Members pressed Harnish on details — whether other agencies administering Department of Education programs would be bound by existing statutory program requirements and how cohort default rates are calculated when students attend multiple institutions. Harnish said the underlying statutory requirements remain in force even when administration shifts program management to other agencies, and he offered to share the department's institution-level spreadsheets on default rates.
The meeting did not produce votes or formal direction beyond requests to share materials and continue outreach to federal officials. Harnish said he would provide slide decks and policy updates to council staff following the session.