July 14, 2025
The recent legislation threatens to widen the gap in educational access, as highlighted by Rachel Fishman.
In late June, a promotional video released by House Republicans touted their budget reconciliation bill, claiming it would “restore the American dream for all citizens.” This dream—rooted in the belief that anyone can achieve success through hard work—has historically attracted individuals to the United States. It is no surprise that politicians often reference this ideal when discussing necessary reforms.
Higher education has long been viewed as a crucial pathway to financial stability in America, serving as a cornerstone of this dream. Therefore, it is concerning that the current administration and congressional Republicans are poised to undermine this vision. The new legislation will significantly alter federal student aid, potentially limiting access to higher education for many Americans.
Recent survey data from a nonpartisan think tank reveals that the public is acutely aware of the challenges facing the American dream: affordable higher education is essential. However, many perceive college costs as increasingly prohibitive. Nearly 90% of respondents identified the high cost of college as the primary barrier preventing families from pursuing higher education. Furthermore, a significant majority across party lines believe the federal government should allocate more resources to make post-secondary education more affordable.
Accountability is also a key concern for Americans when it comes to educational investments. Citizens desire a system that rewards effort and results—values that resonate with the American dream. A majority from both political parties agree that institutions should lose federal funding if their graduates do not earn more than a typical high school graduate or struggle to repay their student loans.
Once implemented, the new law will reduce the Pell Grant program, disqualifying some middle-income families who previously received assistance. Changes to federal student loans will be substantial, with significant cuts to borrowing limits and less favorable repayment options for those facing financial difficulties. These modifications will effectively close the door to affordable associate or bachelor’s degrees for many low- and moderate-income Americans. Conversely, the law will expand Pell Grants to short-term job training programs, which often lack oversight and consumer protection, offering credentials that may not lead to stable employment.
While the legislation aims to enhance accountability by cutting off federal loans to programs that fail to boost student earnings, it notably excludes many undergraduate short-term certificate programs, which often yield poor outcomes. This oversight allows institutions to continue operating even if their students struggle with loan repayment.
Overall, these legislative changes represent a staggering reduction of nearly $300 billion in essential funding that supports access to quality education after high school. This will likely increase dropout rates, a significant predictor of student loan default, and push families toward private financing options that offer fewer protections.
Despite claims from the administration and congressional Republicans that these cuts are necessary for fiscal responsibility and tax reform, the reality is that this law will not achieve those goals. It is projected to add at least $3 trillion to the national deficit by extending tax cuts to the wealthy while stripping funding from vital programs that everyday Americans depend on, such as Medicaid and student aid. It fails to address the root causes of rising college costs and overlooks targeted solutions that could enhance affordability and accountability. Meaningful reform would require bipartisan efforts to reauthorize the Higher Education Act, which has been overdue for over a decade.
Contrary to the assertions made by Republicans in Washington about making the American dream more accessible, this legislation will only push it further out of reach. The impact will be felt by all students seeking education beyond high school—from tradespeople to healthcare professionals. These individuals are not “elites,” but rather essential members of society striving for a better future for themselves and their families. Instead of support, they will find that their government has turned its back on them.
In his inaugural address, the president proclaimed that “the American dream will soon flourish like never before.” However, the truth is that it is being stifled. While it may be too late to amend this new law, it is crucial for Congress and the administration to prioritize the needs of everyday Americans and proceed with caution before implementing such drastic cuts. This issue transcends party lines; it is a matter of national interest and prosperity. Neglecting to consider future legislation that promotes meaningful student-centered reforms in higher education will have lasting political and generational repercussions. It sends a discouraging message to future students that only wealth can secure educational opportunities, regardless of their hard work and determination.