After revisions from the House and Senate, the “One Big Beautiful Bill Act” became law on July 4. Key outcomes for higher ed include:

Pell grants and work-study programs were spared from the devastating cuts proposed in earlier drafts of the bill. In fact, the final legislation expanded Pell funding to cover a budget shortfall and confirmed Pell eligibility for veterans, students in non-degree programs, and others.

Federal education loan borrowing limits have been reduced for parents, graduate students, and professional students. The law also establishes a lifetime lending cap and eliminates a popular loan program for graduate students.

A tiered endowment tax rate has been established for the nation’s wealthiest private colleges and universities. For now, Cornell remains exempt from the tax because the university’s endowment per student is less than the minimum threshold for being taxed.