Heritage Foundation Proposes Model Legislation for Trump's Higher Ed Agenda
State-level blueprint ties university funding to academic accountability and risk-sharing.
1Ready-to-Adopt Legislative Text
The Heritage Foundation released model legislation to codify the Trump administration's higher education compact at the state level. Titled 'An Act to Refocus Colleges on Their Fundamental Academic Mission,' the draft conditions public university funding on compliance with strict accountability measures. Coming from the think tank behind Project 2025's education overhaul, the proposal urges states to act rather than wait for voluntary institutional adoption.
2Financial Liability for Risky Admissions
The most controversial provision makes universities financially responsible for student failures. If a state school admits a student whose test scores predict low graduation likelihood and that student doesn't graduate within eight years, the institution must repay a portion of remaining federal loans. This flips current accountability models that restrict loans to low-earning programs, instead charging schools directly for risky enrollment decisions.
3Earnings-Based Program Review
The model bill empowers state regulators to evaluate academic programs every five years based on graduate earnings, completion rates, and job placement. Underperforming programs face consolidation or termination, with faculty dismissals permitted regardless of tenure status. The legislation explicitly states that no existing laws, contracts, or collective bargaining agreements—including tenure protections—can block these actions.
4Transparency Mandates and DEI Restrictions
Institutions would be required to publish program-level earnings data from the College Scorecard on their websites. Mirroring laws in Texas and Florida, diversity, equity, and inclusion (DEI) offices would be banned. The bill also imposes governor-level approval for foreign gifts exceeding $50,000 from China, Russia, Iran, and other specified countries, and makes campus police cooperation with ICE a funding condition.
5$1.8 Trillion Debt Crisis
The legislation cites the $1.8 trillion national student debt burden and FREOPP research showing nearly half of master's programs leave graduates financially worse off. While federal accountability rules enacted in 2025 already restrict loans to low-earning programs, Heritage argues states must take more aggressive action. Shifting liability for risky admissions directly to institutions represents a fundamental change in higher education financing.
6Extension of Project 2025 Agenda
This model bill advances the education reforms proposed under Project 2025. When the White House's Compact for Academic Excellence was sent to nine elite universities in 2025, most including MIT declined over free speech concerns. Heritage's legislation reflects a strategy to implement federally rejected policies through state action. Similar bills have historically moved fastest in Florida and Texas, where pieces of this agenda are already adopted.
7Seismic Impact on Universities
If enacted, these rules would force state schools to radically alter enrollment policies. Rejecting at-risk students, closing low-performance programs, and undermining tenure would dramatically affect academic autonomy. The ability to override tenure protections particularly threatens faculty governance and research freedom, while DEI office bans would curtail campus diversity initiatives.
8New Decision Metrics for Students
These reforms will reshape how students evaluate colleges. Graduate earnings data and program viability risks may outweigh traditional prestige factors. As state legislatures take up the issue in 2027 sessions, families will need deeper ROI analysis. The loan repayment provisions could particularly limit access for low-income students, potentially altering enrollment demographics at public institutions.