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Dear Members of The Association of Theological Schools,
As we begin this new semester, I want to provide an update on several recent US federal actions that may affect our member schools, particularly those based in the States or with US federal funding connections. Together with ATS staff, I am consulting with higher-education policy experts to better understand these developments, and we will continue to share updates as more information becomes available.
Update: Professional Programs and Borrowing Limits
In our previous communication summarizing federal student aid rules, we stated that professional degree programs must lead to licensure in addition to requiring two years beyond the bachelor’s degree and falling within designated Classification of Instructional Programs (CIP) codes. We want to correct that language. The US Department of Education’s (USDE) new definition, used to determine eligibility for higher borrowing limits, applies to programs that generally lead to licensure, rather than a strict requirement of licensure in every instance.
USDE Accountability Rulemaking Update
In January 2026, the USDE reached consensus through the AHEAD negotiated rulemaking committee on a proposed accountability framework that would evaluate all Title IV-eligible programs (including certificate, bachelor’s degree, and graduate programs) based on whether graduates’ median earnings exceed federally defined benchmarks four years after completion. Under the framework, programs that fail the earnings test in two of three consecutive years could lose eligibility for Direct Loans, with the earliest potential loss of eligibility beginning July 1, 2028. The USDE will publish the first earnings calculations in the summer of 2027.
Preliminary estimates shared by USDE show that several fields, including religion and religious studies, are least likely to pass the earnings test. These findings suggest that graduate theological programs may disproportionately fall below the benchmark despite strong academic quality and mission alignment. Given these projections, institutions may wish to begin:
- Reviewing how the proposed changes could impact specific programs
- Preparing for potential compliance steps, including Title IV recertification timing
- Exploring alternative funding models or tuition adjustments should federal funding be at risk
- Considering contingency planning, including teach‑out strategies, for programs that might not be financially sustainable without Title IV support
As of this date, these proposed regulations have not yet been published. Once published, they will be subject to a 30-day public comment period, during which institutions and stakeholders may provide feedback before the rule is finalized.
Expanded US Travel and Immigration Restrictions
US Presidential Proclamation
A presidential “travel ban” proclamation issued on December 16, 2025, and taking effect January 1, 2026, significantly expanded existing travel restrictions that were established in June 2025. Now, the limits affect citizens from 39 countries as well as individuals traveling on Palestinian Authority–issued documents. The policy includes:
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Full Suspension: Entry is fully restricted for immigrants and nonimmigrants from 19 countries (including Afghanistan, Burma, Iran, Libya, Somalia, Sudan, Syria, Yemen, and others).
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Partial Suspension: Restricted issuance of immigrant visas and certain nonimmigrant visa types (B, F, M, J) for people from 19 countries (including Angola, Nigeria, Cuba, Senegal, Tanzania, Tonga, Venezuela, Zambia, and others).
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Applicability: Generally applies to those who were outside the US on January 1, 2026 and did not hold a valid visa on that date. Existing visas remain valid.
US Department of State Pause on Immigrant Visas
Separately, the US Department of State has paused all immigrant‑visa issuances for citizens of a much larger set of countries identified as being at high risk of public‑benefits reliance. This pause affects immigrant‑visa applicants from 75 countries and is distinct from the travel ban, solely targeting immigrant (not nonimmigrant) visa categories.
Impact on Campuses
Together, these expanded travel and immigrant‑visa restrictions may affect international students, faculty, researchers, employees, visiting scholars, and cross‑border academic collaborations. Institutions may wish to advise impacted individuals to consult with qualified immigration counsel before making travel or immigration‑related decisions.
USDE Announces New Accreditation Rulemaking Committee
On January 26, 2026, the USDE announced the formation of the Accreditation, Innovation, and Modernization (AIM) negotiated rulemaking committee that will convene in April and May. The proposed regulatory areas include:
- Processes for recognizing both new and existing accrediting agencies
- Accreditation practices that relate to institutional costs and credentialing expectations
- The role of affiliated professional or trade organizations in accreditation processes
- Standards or policies that reference personal attributes such as race, ethnicity, and sex
- Data-informed indicators of student outcomes
This initiative aligns with federal priorities articulated in Executive Order 14279 and seeks to reform quality assurance frameworks across higher education.
The USDE has outlined a detailed process for selecting negotiators. These individuals are chosen to represent constituencies that would be significantly affected by the proposed regulations and are expected to participate actively and collaboratively in the rulemaking process. In federal negotiated rulemaking, negotiators are nominated by the public and selected by the USDE to ensure balanced representation across groups such as students, institutions, legal aid organizations, state agencies, lenders, servicers, and accrediting bodies. Nominations must include the nominee’s background, constituency, and demonstrated expertise, with a submission deadline of February 26, 2026.
New Foreign Funding Reporting Portal
The USDE launched a redesigned portal for reporting foreign source gifts and contracts under Section 117 of the Higher Education Act. As before, schools must complete the form if they receive federal financial assistance as well as gifts or contracts from a foreign source totaling more than $250,000 annually.
Canadian Context
Canadian institutions continue to experience the effects of recent US policy developments, particularly broader economic and geopolitical frictions. These include increased trade measures, renewed attention to sovereignty and Arctic security, and a period of added uncertainty surrounding the 2026 review of the Canada–United States–Mexico Agreement (CUSMA).
In addition, some of our member schools, like many Canadian colleges and universities, are experiencing financial strain as their federal cap on international study permits has reduced international enrollments. This has led to significant revenue losses, triggering layoffs, hiring freezes, program cuts, and delayed infrastructure projects across the sector.
Together, these dynamics have contributed to a more complex cross-border environment, impacting travel, institutional partnerships, and collaborative work among US and Canadian organizations and individuals.
Additional Federal Updates and Ongoing Issues
Based on previously communicated topics, member schools may also want to remain attentive to:
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Legal Developments: On January 21, 2026, the USDE dropped its legal appeal of a federal court ruling that blocked their ability to withdraw federal funding from colleges, universities, and K-12 schools with diversity initiatives. While the ruling prevents the USDE from withholding support to schools, federal agencies continue to engage in oversight regarding compliance with civil rights interpretations, especially for institutions receiving federal funds. More specifically, the July 29, 2025 memorandum issued by the Department of Justice remains in force and directs its focus on “unlawful discrimination” by recipients of federal funding.
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International Student Visa Processing: Proposed reforms to F-1/J-1 visa duration rules remain under agency review, with possible impacts on long duration programs.
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H-1B Costs and Requirements: The $100,000 H‑1B petition fee remains in effect, with potential future changes to lottery prioritization still under consideration.
I hope this overview is helpful as you assess implications for your school. I remain available for conversation, and we welcome your questions as these issues continue to develop.
Amid these changing external conditions, ATS affirms the shared mission that unites our members in both countries and remains committed to supporting collaboration, mutual understanding, and theological education rooted in our common commitments.
I am deeply grateful for each of you as you continue to serve communities of faith and the broader public with conviction and care. Together, we navigate evolving policy environments, support one another in faithful discernment, and strengthen theological education as a public good for the flourishing of communities and leaders now and in the generations to come.
Grace and peace,
Frank M. Yamada
Executive Director
The Association of Theological Schools
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