Adapting in Real Time: The Ongoing Response to Funding Uncertainty

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March 05, 2026
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  • The beginning of 2025 brought a number of federal decisions that impacted federal, state and local funding that, in turn, affected higher education. Gonzaga quickly put into place a Federal/State Response Team that helps the University navigate an increasingly unpredictable policy landscape. Team members are experts from student financial aid, government relations / external affairs, finance, sponsored research, and the Provost division, who engage regularly with colleagues in those areas from other universities and with state and national agencies* to ensure the best possible outcomes for Gonzaga’s enrollment, retention, research and more.

    The work continues! This team meets regularly to stay abreast of proposals that go before legislative groups and decision-making bodies, and continually advises GU’s administration – and the Board of Trustees – in matters that need advocacy at local, state and national levels. These efforts help ensure that GU can anticipate impacts, support affected students and researchers, and position Gonzaga to respond quickly as funding shifts or opportunities reopen. In a moment when higher education faces rapid and significant change, this sort of collaboration is essential to protecting our Mission and the best-possible outcomes for our students.

    Here are the specific impacts Gonzaga has navigated over the last year (as of Feb. 26, 2026).

    • The loss of $20 million in grants from the National Science Foundation, National Endowment for the Humanities, NOAA and Environmental Protection Agency resulted in the termination of 7 research projects led by GU faculty
    • Changes in federal funding terminated 7 AmeriCorps (later reinstated) and 2 CivicSpark positions in the 2024-25 cycle
    • $48 million in funding for the tech hub was rescinded, delaying advancement of a critical workforce development partnership
    • Washington State enacted new legislation requiring retail sales tax on certain services effective October 1, 2025 that will significantly impact some programs and departments, adding increased pressure on departmental budgets.
    • Washington State reduced Washington College Grant funding for students attending private, not‑for‑profit institutions (beginning Fall 2026), significantly lowering grant amounts for eligible students. Lawmakers are currently considering bills to partially restore these cuts, but no final decisions have been made.

    Significant changes to student loans pose major concerns:

    • Beginning July 1, 2026, the Federal Graduate PLUS Loan will be eliminated for new borrowers, unless they qualify for the Legacy Provision. Students who meet the Legacy Provision may continue borrowing Graduate PLUS for up to three additional years or until they finish their current program, whichever comes first.
    • New federal rules distinguish between “graduate” and “professional” students for loan‑limit purposes; at Gonzaga, Law is currently the only program expected to qualify as “professional,” with higher annual and lifetime unsubsidized loan limits (pending final federal confirmation).
    • New Parent PLUS borrowers after July 1, 2026 will have a $20,000 per‑year limit and a $65,000 lifetime limit per student, while existing borrowers may continue borrowing up to the full cost of attendance for up to three years or through the student’s current program.
    • New borrowers will have two repayment options, with existing plans being phased out by July 1, 2028.
    • Federal loans will also be prorated for students enrolled part‑time.
    The proposed rules were open for public comment and Gonzaga University independently – and in collaboration with our national organizations – submitted comments calling for an expansion of the current list of “professional” programs and the inclusion of more flexibility for students to utilize loans to meet critical work-force needs.

    Accountability to Gainful Employment

    H.R. 1 (known as the “One Big Beautiful Bill”) passed into law in 2026 and established a new higher education program-level accountability framework based on student earnings four years post-completion. The framework takes effect July 1, 2026, and the Department of Education has modeled the framework for programs with currently available earnings data, which make up about a quarter of all programs nationally. ALL Gonzaga programs evaluated passed the review. A summary report of Gonzaga is available from the National Association of Independent Colleges and Universities (NAICU) here.

    Taking Action Together

    Each of those examples has come with its own set of unique challenges and complications. Colleagues in the respective departments have dedicated countless hours to understanding the realities and evaluating the outcomes. In February, President Katia Passerini and and John Sklut, Liaison for External and Government Affairs, were in Washington D.C. during a very active time for the federal government and an important time for discussions on higher education. They met individually with Sen. Maria Cantwell, Sen. Patty Murray, and Rep. Michael Baumgartner to thank them for continued support and discuss Gonzaga’s future priorities.

    Wherever and whenever possible, this team asks for Gonzaga employees, students, families and friends to join in advocacy efforts, and – please know – these collective actions have already made a difference. When you receive emails or see social media requests to voice your opinion on a bill before the Senate or House, please continue to take action. In this way, we ALL help to ensure students continue enjoy the outcomes of a Gonzaga education.

    Stay informed and find resources: my.Gonzaga.edu/federalresponse. (Note this site requires being logged in to the Gonzaga network.)

    *State and national agencies Gonzaga is connected to include:
    • Independent College of Washington (ICW)
    • Association of Jesuit Colleges and Universities (AJCU)
    • Association of Catholic Colleges and Universities (ACCU)
    • National Association of Independent College and Universities (NAICU)
    • National Association of Financial Aid Administrators (NASFAA)
    • President Passerini and senior Jack Kashork traveled to Olympia to defend funding.
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