Latest News: Federal Policy & Advocacy

ED Abruptly Ends Student Support, Basic Needs Grants; New Competition Includes AI-Enabled Advising

Friday, November 14, 2025  

By Louisa Woodhouse, Senior Associate, Policy and Advocacy

Reading time: Two minutes

On Monday, November 10, the US Department of Education (ED) announced that it will redirect $167 million from the fiscal year 2025 Fund for the Improvement for Postsecondary Education (FIPSE) to support a new set of priorities: artificial intelligence in postsecondary education, civil discourse initiatives, accreditation reform, and short-term workforce program development.

The reallocation of FIPSE funding discontinues several important programs—including the Basic Needs Grant, Postsecondary Student Success Grant, Centers of Excellence for Veteran Student Success, and Rural Postsecondary and Economic Development Grant—which have provided critical student success and basic needs supports for students across the country.

While the National College Attainment Network (NCAN) has advocated to reform and improve the Postsecondary Student Success Grant (PSSG), as the grant’s eligibility structure excluded many of our members, we know that the program’s elimination will impact postsecondary attainment. At a time when many students and families are struggling to cover the cost of food and housing, the loss of these funds will be felt most acutely by low-income and first-generation college students, who already face challenges to persistence and completion.

One priority in the new grant competition may be relevant for NCAN members who incorporate AI, or artificial intelligence, technology into postsecondary access and success advising. The notice inviting applications states that ED will fund projects that “improve academic instruction and student learning, including efforts designed to assess the learning gains made by postsecondary students”. Among other items, the Department is seeking proposals from organizations that partner with State Education Agencies (SEAs) or Local Educational Agencies (LEAs) “to use AI technology to provide high-quality instructional resources, high-impact tutoring, and college and career pathway exploration, advising, and navigation to improve educational outcomes.” ED expects to award 25 grants to address AI priorities, totaling $50 million, by December 31, 2025. The application deadline is December 3, 2025. This is a particularly quick turnaround for applicants.

How to Apply

Applications must be submitted through Grants.gov, following ED’s Common Instructions for Applicants to Department of Education Discretionary Grant Programs. Eligible applicants include “institutions of higher education, consortia of such institutions, and other public and private nonprofit institutions and agencies including State higher education agencies.” In the project abstract, applicants should note which priority area their proposal addresses. The application narrative should explain how the project meets the relevant priority, identify partners, and outline the target population, core activities, and expected results over the four-year grant period. ED encourages applicants to stay within a 35-page limit and to review all eligibility, formatting, and submission requirements closely to avoid technical issues, especially given the short turnaround time. For more information, please see the notice on the Federal Register.

NCAN will continue monitoring the implementation of this competition and its implications for students and the organizations that serve them. We remain focused on ensuring that federal investments effectively support postsecondary access and completion.

Questions? Please reach out to Louisa Woodhouse, Senior Associate, Policy and Advocacy (woodhouse@ncan.org). 


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