/>iAs the 2025-2026 academic year gets underway, significant changes in the higher education regulatory and budgetary environment demand close attention from college and university legal teams and their outside counsel.
At the federal level, regulatory overhauls, civil rights investigations, dips in international student enrollment, and restrictions on diversity initiatives mean that risk management and legal compliance are more critical than ever.
At the state level, shifting higher education demographics, financial constraints, and policy restrictions on in-state tuition for immigrant students are placing additional pressure on higher education finances.
Below, the Hunton Higher Education team summarizes the five of the most urgent priorities for legal counsel in higher education this academic year for proactive, preemption, preparation and planning.
1. Anticipate Continued Federal Scrutiny
Federal agency investigations are expected to continue, focusing on civil rights laws, the False Claims Act, and foreign influence. Because institutions of higher education receive federal funding, they should expect continued scrutiny of their legal and regulatory compliance from government agencies, independently and collectively.
College and university counsel should proactively review and update campus policies, conduct internal audits of diversity programs, review their employee and student immigration compliance obligations (if they have not already). Counsel should also develop plans for responding to potential federal inquiries, civil rights investigations, subpoenas, and ICE actions on campus.
2. Monitor and Adapt to Regulatory Changes
The U.S. Department of Education is implementing major regulatory changes, including new student loan rules, program eligibility standards based on graduate earnings, and changes to Pell Grant access. While some of these regulatory changes will take effect in the 2026-2027 academic year, counsel should work closely with their admissions, financial aid and institutional research teams to ensure timely compliance. Admissions, financial aid, and university finance and budget teams should also work with counsel to be aware of how these changes may impact class size and composition, and the university’s tuition revenues.
State-level regulatory guidance will likely continue, especially relating to DEI and state university funding, and may vary widely by state. Counsel should track these developments and involve campus government relations staff as needed.
3. Strengthen DEI and Civil Rights Risk Management
Federal and state civil rights enforcement is intensifying, with some institutions being publicly investigated for perceived violations. Counsel should work closely with campus staff to audit current DEI operations, reinforce non-discrimination policies and procedures, and provide compliance training for faculty and staff. In addition to closely monitoring federal agency guidance of civil rights laws, legal counsel should be prepared to respond to legal challenges and state/federal investigations.
4. Safeguard Campus Fiscal Health
Federal research funding is likely to decrease, with grant revocations and potential new funding caps and clawbacks. The student enrollment demographic cliff is upon us, and any decrease in student enrollment—including international student enrollment—may negatively impact the budgets of tuition-dependent colleges and universities. Counsel should advise on changes in grant agreements and student aid, and work closely with university finance and budget teams to identify and mitigate institutional fiscal exposures.
5. Enhance Campus Protest Policies and Guide Difficult Conversations
Institutions face increased political polarization, regulatory scrutiny, and public attention on issues such as international conflicts, diversity, and the role of higher education in society. Counsel should proactively review and update policies related to campus speech, protests, academic freedom, and student conduct. Institutions and counsel should also continue to establish frameworks for facilitating respectful, open, and legally compliant discussions on sensitive topics, while ensuring the safety and rights of all community members.
Next Steps:
Legal teams should remain proactive, vigilant, and collaborative. The rapidly evolving legal landscape in higher education requires continuous monitoring, regular policy reviews, and ongoing communication with institutional leadership. Counsel should continue to collaborate with peer institutions and seek outside legal expertise when navigating complex or high-profile campus issues.
