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October 16, 2026

The Markup—Oct. 16, 2026

By  Katherine Knott

Hello! I’m your host, Katherine Knott, Inside Higher Ed’s news editor, and this is The Markup, IHE’s weekly roundup of all things higher ed policy.

This week, we saw more jockeying over the midterms and reviewed new evidence about how states’ policies and politics are affecting students’ decisions about where to attend college. And then, on Thursday night, The Washington Sun dropped a bombshell report that the Education Department is working to spin off its Office for Federal Student Aid into an independent agency by next October. ED calls the report “fake news,” but the backlash from Hill Democrats was swift. 

“When did creating an entirely new federal agency to do the exact same work that’s already being done equate to efficiency?” said Sen. Patty Murray, a Washington State Democrat. “The law is clear: Federal Student Aid belongs at the Department of Education, and the Trump administration cannot move it without an act of Congress—nor have they even bothered consulting Congress.”

Here are two key developments from the week: 

1. Census changes cause concern. The federal government doesn’t want to gather certain demographic data about American citizens when it conducts the 2030 Census—a very important survey that determines representation in Congress and funding for communities, among many other implications. Specifically, the government has dropped questions about a person’s race, ethnicity or sexual orientation. Now, the government could collect racial data in other ways, but civil rights organizations have warned that losing that data would make the government less equipped to respond to big issues and threatens the integrity of the Census.

For Native American students, dropping the question and other proposed changes to the Census could hinder the services available to them, Olivia Sanchez reported this week. Funding for tribal colleges won’t be affected, but advocates say it’s important to get an accurate count of “Indian Country—not just reservation populations.”

“The Census is more than a population count,” the National Congress of American Indians said in a statement. “Census data help shape political representation, federal funding decisions, policy development, and planning for essential programs and services across Indian Country.”

A photo illustration of students covering the canvas with all of their face details distorted by a halftone texture. Several of them are bright orange and have a number over their heads while the others in gray remain uncounted.

2. A fight over front-loading funds. The Education Department gave more grantees all of their funding up front in fiscal year 2026—a practice that two Democratic senators say limits the reach of federal funds.

For instance, the Trump administration awarded $71.4 million to 40 grantees in the Child Care Access Means Parents in School program—which supports childcare for low-income student parents. Initially, the Education Department had projected it would split up the program’s $75 million among 148 grants. The senators argue ED has effectively withheld about $630 million in appropriations from new recipients across roughly 35 grant programs thanks to front-loading. 

And we’ve heard that the Education Department also front-loaded some grants at the Institute for Education Sciences as the agency rushed to spend the expiring funds, Jessica Blake reports. Thanks to court records, we know IES spent about $180 million in roughly two weeks, but we don’t know how, and IES hasn’t posted many new grant competitions in the last year. At least one grantee received more than two years’ worth of grant funding for an existing multiyear project at once and without any notice from ED.

Some experts say that front-loading the grants will harm education research more broadly. 

“If you only invest in one project, what if that one thing … didn’t work? Then what’s next?” one person told Jessica.

Upcoming Comment Deadlines

  • Comments are due Nov. 3 on the Trump administration's proposal to take away a college’s tax-exempt status if the institution adopts or maintains admissions policies, scholarships, loans or other programs for students of color.

  • You have until Nov. 9 to comment on the proposed fees for optional practical training. For international students who want to work in the U.S., their college would have to pay $70,000, while STEM OPT extensions would cost $30,000.

  • The Census changes mentioned above are open for public comment until Nov. 2.

That’s it for Week 91 of the second Trump administration. As always, if you have any questions or comments, send them along to me at katherine.knott@insidehighered.com. And if any news breaks today or over the weekend, you can find the latest at InsideHigherEd.com. In the meantime, I’ll be hoping for a Washington Spirit goal—just one, I’m not too demanding—at this weekend’s game and probably rewatching the trailer for The Magician’s Nephew.

“No court has found these programs that Congress has funded to be unconstitutional, and the administration’s mere belief that they are does not give it the necessary authority to spend those funds for any other purpose or program.” — Several Congressional Democrats on ED diverting money from MSIs to other grant programs

Just the Headlines

  • Despite Concerns, IES Spent 99% of Expiring Funds
  • AAUP Forges Ahead With Endorsements Despite Some Initial Backlash
  • How Proposed Changes to the Census Could Affect Native American Students
  • Students Increasingly Consider Politics in Choosing a College
  • Longtime Legal Advocate Decries ‘Coordinated Assault’ on Noncitizens’ Rights
  • Congressional Democrats Condemn MSI Funding Transfer
  • Democratic Senators Criticize ED for Front-Loading Grants
  • New Analysis Finds NIH Awarded 7,400 Fewer Grants

Did someone forward you this email and you want to receive it in your inbox? Sign up to be an Insider now and you’ll get The Markup every Friday as well as access to all our subscriber-only news. Find out more here. 

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