Key Points
- President Trump signed seven executive orders reshaping federal education policy.
- The orders focus on cracking down on foreign funding at colleges, restructuring college accreditation, and boosting skilled trade education.
- New rules could limit federal recognition of accrediting bodies that require diversity-focused policies and increase scrutiny of college ROI.
President Donald J. Trump signed seven executive orders on April 23, launching a sweeping overhaul of education policy across K–12 and higher education.
The orders target:
- Foreign Influence At American Universities
- Reforming the College Accreditation Process
- Excellence At Historically Black Colleges and Universities
- Increasing High-Paying Skilled Trade Jobs
- Reforming K-12 Discipline Policies
- Restoring Opportunity and Meritocracy
- Advancing AI Education
Together, they mark a significant redirection of federal priorities.
Targeting Foreign Influence At Colleges
One of the executive orders directs the Department of Education to aggressively enforce Section 117 of the Higher Education Act, which requires U.S. colleges and universities to disclose foreign gifts and contracts. While this law has been in place since 1965, federal officials under the Trump administration claim past enforcement has been weak.
This move comes on the heels of proposed legislation called the Deterrent Act which is focused on this very topic. Data from recent years shows that some institutions derive 15% or more of their tuition revenue from foreign enrollees.
The order instructs the Department to audit colleges and coordinate with the Department of Justice to uncover undisclosed foreign funds. Universities that fail to report the true source or purpose of foreign gifts could face legal action.
This order revives an effort first launched during Trump’s previous term, when investigations revealed billions in previously undisclosed funds.
The move is framed as a national security issue, with administration officials expressing concern about the potential influence of foreign governments on American research and education.
Accreditation Reforms To Focus On ROI
Another executive order overhauls the system of college accreditation. Accreditation determines whether colleges are eligible to receive federal student aid. The order calls for accreditors to be held accountable if they recognize programs with low graduation rates or negative return on investment (ROI) for students.
About 25 percent of bachelor’s degrees and over 40 percent of master’s degrees have a negative ROI, leaving students worse off financially than if they had not enrolled.
The order also criticizes diversity, equity, and inclusion (DEI) standards used by accreditors, calling them unlawful. Institutions that require DEI policies to maintain accreditation may no longer qualify for federal recognition. The administration plans to resume recognition of new accrediting agencies that focus on outcomes like graduation rates, cost, and employment data.
The Department of Education will also allow institutions to more easily switch accreditors and will launch an experimental “quality assurance pathway” that prioritizes flexibility and student outcomes over institutional policies.
However, there is concerns that allowing new accreditation companies could actually lower standards. For example, the most recent accreditation company to lose the ability to accredit schools, ACICS, was found to be approving colleges that didn't even have teachers or students. Allowing the oversight of colleges to become less regulated could cause more problems.
What Is Accreditation And Why It Matters
College accreditation is the process by which third-party agencies evaluate whether institutions meet certain standards of educational quality. Without accreditation, schools cannot receive federal student aid, including Pell Grants and student loans.
The new executive orders redefine what the federal government considers acceptable standards. In effect, they shift the focus from institutional policies (like DEI initiatives) to measurable student outcomes such as job placement rates and earnings after graduation.
By tying accreditation recognition to these metrics, the administration aims to steer federal aid toward institutions that demonstrate economic value for students.
Emphasis On Trade Jobs And Workforce Skills
Several of the orders focused on skills. One order focuses on expanding career and technical education, including Registered Apprenticeships. Another focuses on Artificial Intelligence education, with the goal of ensuring that students understand future technologies.
The administration wants to align federal workforce development programs with its economic agenda by identifying ineffective programs and directing resources toward high-demand fields such as skilled trades and manufacturing, along with cutting edge technology.
The order also calls for reviewing alternative credentials, such as certificates, that offer viable pathways to employment without requiring a four-year degree.
Federal agencies must report back within 90 days with strategies to consolidate programs, improve worker training, and reach a goal of one million new apprentices.
Final Thoughts
Together, these executive orders mark a shift in federal education oversight, prioritizing financial outcomes and national security concerns over social policy.
While there are aspects to applaud: transparency, cost, and career readiness, there are also concerns that the changes could weaken civil rights protections and chill academic freedom.
As the Department of Education and other agencies begin implementing these directives, the coming months will test how far federal authority can reach into the day-to-day governance of America’s schools and universities.
Don't Miss These Other Stories:
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.