NATIONAL HARBOR, Md.—Nestled just across the Potomac River from Washington, D.C., the annual gathering of the National Association of College and University Business Officers unfolded under the looming presence of Capitol Hill. Attendees expressed palpable concerns regarding federal funding and potential policy shifts that could significantly impact their institutions.
During the three-day event at the expansive Gaylord National Resort and Convention Center, participants engaged in discussions, exchanged strategies, and delved into critical issues affecting the higher education landscape. Representatives from a wide array of institutions shared their experiences, revealing common challenges. Many voiced apprehensions about impending federal policy changes that could exacerbate existing financial difficulties stemming from declining enrollment, rising tuition discount rates, and other pressing matters.
Here’s a summary of key themes and insights that emerged from the conference.
‘Fear, Anxiety, and Contempt’
In a well-attended panel discussing recent federal activities, NACUBO’s vice president for policy and research, Liz Clark, highlighted the mounting pressures faced by business officers during what she described as a “tumultuous year.” This year has been marked by a series of federal actions, including the controversial One Big Beautiful Bill Act, which introduced various provisions affecting higher education.
This legislation, recently enacted, imposes caps on certain student loans, eliminates the Grad PLUS program, restricts repayment options, and mandates that programs meet specific earnings criteria for students to qualify for federal loans. Additionally, it includes modifications to the endowment tax. Clark emphasized that while this legislation represents a significant shift, it is just one of many actions that have reshaped the higher education landscape this year.
Clark remarked that 2025 has brought a wave of “fear, anxiety, and contempt” as institutions grapple with restrictions on diversity, equity, and inclusion initiatives, the cancellation of federal grants, and various state laws that have created a challenging environment for higher education.
“This year feels like we are facing everything, everywhere, all at once,” Clark stated.
Despite the concerns she raised, Clark noted that the One Big Beautiful Bill Act, affectionately dubbed “Bubba,” and other proposed policies could have had a more severe impact on higher education. For instance, the endowment tax ultimately fell short of the more stringent proposals initially suggested by House Republicans.
However, during a subsequent panel on tax reform, Clark cautioned that the endowment tax could still be revised in ways reminiscent of earlier proposals, potentially affecting a broader range of universities at higher rates.
“Remember, ideas in Washington never truly disappear,” Clark warned.
Legal Insights
A panel of legal experts in higher education also addressed the current challenges facing the sector.
Kate Hudson, deputy vice president and counsel for government relations and public policy at a prominent association, opened the session with a stark warning: “I’m afraid there won’t be much good news today.” Given the rapid changes from the federal government, she cautioned that her insights could become outdated within days.
Hudson pointed out that campus attorneys are navigating a myriad of federal actions, including funding freezes and sweeping executive orders, as the current administration seeks to redefine the relationship between government and academia.
“It’s not an exaggeration to say that we are witnessing a complete renegotiation of the government-academia partnership,” Hudson asserted. “That’s not an overstatement.”
Jen Gartner, deputy general counsel at a major university, echoed these sentiments, noting that the relationship between the federal government and research institutions has shifted from one of collaboration to an adversarial stance, leaving universities perplexed. This strain has been particularly evident in the realm of grants, which have often been terminated without clear explanations. She highlighted the lack of clarity from the federal government regarding these cancellations, with contradictory information sometimes appearing in the same termination notice.
As higher education attorneys seek clarity, Gartner noted that they have received little guidance.
“It’s not just that universities are uncertain about their next steps—agencies are equally confused, and staff are often unresponsive,” Gartner remarked.
Hudson also raised concerns about the administration’s scrutiny of international students, which now includes vetting their social media for any signs of hostility toward the U.S. This scrutiny poses a potential threat to the academic research community at a time when global competition in research and development is intensifying.
“The threats to legal immigration present an existential risk to the academic research enterprise, especially as our competitors, like China, continue to excel in STEM education and research,” she stated. “International students may choose to study elsewhere.”
Hudson added that the association has not traditionally focused on immigration law, but this focus has shifted dramatically in light of the current threats to international students and faculty.
A Challenging Year Ahead?
A panel hosted by a leading education publication at this year’s conference discussed findings from the 15th annual survey of college and university chief business officers, released recently. Conducted in collaboration with a research firm, the survey revealed that while college business officers remain optimistic about the long-term outlook, they are increasingly concerned about their institutions’ immediate financial health.
Most respondents anticipate that their institutions will face worse financial conditions in the coming year, with only 43 percent expressing confidence that their situation will improve. Rick Mills, president and CEO of a prominent organization, expressed skepticism about the belief that financial conditions would improve, given the myriad challenges discussed at the conference.
“On one hand, I appreciate the optimism; it’s what drives us and motivates us to tackle these challenges. However, it also seems somewhat unrealistic given the current landscape,” Mills commented.