The Education Department is detailing higher-education grant staff to the Labor Department as part of an interagency move to outsource administration of several postsecondary programs. ED says Labor will run grant and payment systems while ED retains budget and policy authority; critics call the transfer unlawful and warn it risks grant mismanagement. Separately, proposed regulations under the One Big Beautiful Bill Act would require programs to pass a new earnings test—graduates must out-earn peers with lesser credentials—or lose Federal Direct Loan eligibility. Programs that fail in two of three years could be stripped of Title IV access, threatening institutions that serve large shares of low-earning fields. Combined, the staffing transfer and the earnings metric create a regulatory and operational inflection point: grant administration will change hands while program-level accountability could abruptly remove financial aid support. Institutional compliance teams, financial-aid officers and provosts must prepare contingency plans and expand data capabilities to track graduate earnings and grant transitions.
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