Earlier this week, the Department of Education announced that it was opening up a FIPSE grant competition, with a quick deadline of December 3, 2025. The Trump administration reformatted this program from the over 10 competitions normally scheduled throughout the year to meet four areas of national need that align with the administration’s postsecondary education agenda.
The Nature of the Current Grant
This year’s Fund for the Improvement of Postsecondary Education FIPSE competition entirely lies in the “special programs” designation to focus on the administration’s priorities. The $171 million Congressionally appropriated FIPSE grants have been repurposed to address four general areas of national need:
- Advancing AI to Improve Educational Outcomes of Postsecondary Students and Ensuring Future Educators and Students Have Foundational Exposure to AI and Computer Science ($50 million)
- Promoting Civil Discourse on College and University Campuses ($60 million)
- Supporting Institutions in Changing Accrediting Agencies and Supporting the Creation of New Accrediting Agencies ($7 million)
- Creation of New High-Quality Short-Term Programs and Expansion of Existing High-Quality Short-Term Programs ($50 million)
Typically, Congress would express its intent for how much goes into programs such as Postsecondary Student Success or Basic Neds grants via report language with previous administrations treating this intent as having the power of law. However, the current Trump administration has expanded its latitude by following the letter of the law that the funds be spent without funding the programs in FIPSE, as the FY2025 full year continuing resolution did not include any report language. The administration similarly reprogrammed funds meant for Minority Serving Institutions in the later summer in the same manner.
Education grants expert, Amanda Fuchs Miller, has noted that “colleges should apply for funding that can be helpful but must go in eyes wide open.” She highlights that applicants need to be aware of the following:
- The Secretary is given the authority to discontinue an award if it is determined that the grant is not in the best interest of the federal government.
- There are limits on the indirect cost rate.
- Grantees can experience grant termination mid-budget period if they fail to certify that they are meeting the “Administration’s priorities and their interpretation of federal anti-discrimination laws.”
Funding Structure
Many grant programs follow the fiscal year, meaning that grant funds are to be awarded by September 30th. FIPSE, on the other hand, has a different funding structure where funds instead expire on December 31st, which means that the Department of Education has to obligate the funds by the end of the calendar year.
Background
FIPSE is housed within the Office of Postsecondary Education in the Department of Education and operates on a calendar year, which is why FY25 funds are still available for this competition. The goal of FIPSE is to fund projects that would “improve postsecondary educational opportunities across a broad range of concerns.” Some FIPSE programs of interest to community colleges include Basic Needs for Postsecondary Students, Open Textbook Pilot, Postsecondary Student Success Program, and Rural Postsecondary and Economic Development Program.
FIPSE grant funding is appropriated in one appropriations cycle for the 3-year FIPSE project. This means that the programmatic changes the administration is performing only affect this new grant competition, not those who currently hold a FIPSE grant awarded in a previous cycle.
The Future of FIPSE
Even though the government was able to reopen under a CR, which funds the government using Fiscal Year 2025’s funding levels (which is from a CR that funded FY 2025 using FY 2024 funding levels) until January 30, 2026, there is still appropriations work to be done. Currently, the Trump administration, the Senate, and the House each have different visions for the future of FIPSE.
In May’s Presidential budget request, President Donald Trump asked for the total elimination of funding for FIPSE. Meanwhile, the Senate version of the Labor, Health and Human Services, Education, and Related Agencies (LHHS) fiscal year (FY) 2026 appropriations bill aims to appropriate $146 million to the FIPSE program, with $40 million set for Postsecondary Student Success Grants, $10 million for the Basic Needs Grant, and $40 million to the Rural Postsecondary and Economic Development Grant program. Furthermore, the House Appropriations LHHS bill works to appropriate $47.5 million to FIPSE, with $45 million of those dollars for the Rural Postsecondary and Economic Development Grant program. Again, the President, the Senate, and the House are all very far apart on the future of FIPSE funding.
While the future of FIPSE remains unclear, the current grant competition does provide an opportunity for community colleges to gain federal support in areas of importance to our work.
Application Materials
Genesis Santiago is the Senior Government Relations Associate at ACCT
