The U.S. Department of Education’s (ED) latest round of awards under the Fund for the Improvement of Postsecondary Education (FIPSE) underscores how the Trump administration is reshaping a long-standing federal grant program to align more tightly with its higher education agenda—drawing both cautious interest and pointed concern from college advocates.
On Monday, ED announced $169 million in new FIPSE grants to support projects centered on artificial intelligence, civil discourse, accreditation reform, and short-term workforce programs, along with one supplemental award under the Centers of Excellence for Veteran Student Success program. According to the Department, the competition attracted a “historic number of applications,” which officials framed as evidence of institutional demand for innovation and reform.
“The Trump Administration is reenvisioning the future of higher education – ensuring that programs are centered on student success, workforce readiness, and are adaptive to new technology and innovations,” said Assistant Secretary for Postsecondary Education Dr. David Barker in the announcement. “From helping grantees foster diverse viewpoints on campus to supporting colleges and universities build innovative new programs and cut red tape, we are confident that these funds will help institutions build on this Administration’s success and support students throughout their academic journeys.”
The awards follow a November 2025 ED notice that consolidated what had traditionally been more than 10 separate FIPSE competitions into four “areas of national need”: artificial intelligence ($50 million), civil discourse ($60 million), accreditation reform ($7 million), and high-quality short-term programs aligned with Workforce Pell Grants ($50 million). An earlier Department statement described the changes as part of a broader push to “reimagining an archaic accreditation system and prioritizing workforce-driven programs,” with Under Secretary of Education Nicholas Kent calling the shift “bold, seismic change.”
While some institutions see opportunity in the refocused priorities—particularly around AI and workforce training—the restructuring has raised alarms across the higher education policy community. In a November brief, the Association of Community College Trustees (ACCT) noted that the administration “reformatted this program from the over 10 competitions normally scheduled throughout the year to meet four areas of national need that align with the administration’s postsecondary education agenda,” effectively repurposing all FY 2025 FIPSE funding into “special programs.”
Education grants expert Amanda Fuchs Miller cautioned that “colleges should apply for funding that can be helpful but must go in eyes wide open,” pointing to provisions that allow the Secretary of Education to discontinue awards deemed no longer in the federal government’s interest, impose limits on indirect costs, or terminate grants if institutions fail to certify alignment with the administration’s priorities and interpretation of federal anti-discrimination laws.
Concerns are even sharper among student-success advocates. A policy brief from the National College Attainment Network (NCAN) argues that redirecting FIPSE dollars “discontinues several important programs—including the Basic Needs Grant, Postsecondary Student Success Grant, Centers of Excellence for Veteran Student Success, and Rural Postsecondary and Economic Development Grant.” NCAN warned that, at a time when students are struggling with food and housing insecurity, “the loss of these funds will be felt most acutely by low-income and first-generation college students.”
The accreditation component has also drawn scrutiny. While ED frames funding for new accreditors and institutional transfers as a way to reduce barriers and increase competition, critics worry it could destabilize oversight and invite political influence into a system traditionally designed to safeguard academic quality and institutional independence.
Looking ahead, the future of FIPSE remains unsettled. President Donald Trump has again proposed eliminating the program entirely in his FY 2026 budget request, even as House and Senate appropriators advance competing visions that would preserve some funding for student success, basic needs, or rural colleges. For now, institutions face a paradox: new money tied to fast-moving priorities, paired with lingering uncertainty about the long-term role of FIPSE in federal higher education policy.
