TABLE OF CONTENTS
II. Executive Orders Targeting DEI, Research Funding, the Compact, and the Big Beautiful Bill
A. Executive Orders TargetingDEI
1. Executive Order: Ending Illegal Discrimination and Restoring Merit-Based Opportunity
2. Executive Order: Reforming Accreditation to Strengthen Higher Education
C. The Compact for Higher Education
A. House Settlement and the CSC
C. NIL and Financial Bills in Congress
V. Criminal and Civil Enforcement Development
B. Heightened Federal Scrutiny of Campus Safety Under theClery Act
C. DOJ Launches "Civil Rights Fraud Initiative" to Apply False Claims Act to Higher Education
E. Criminal Indictments Highlight Federal Scrutiny of Educational Research and Medical Facilities
C. Alleged Misconduct and Harassment
VII. Congressional Investigations
A. Continued Investigations into Institutional Responses to Antisemitism
B. Collaboration with China and the Chinese Communist Party
C. DEI Initiatives on College Campuses
D. University Programs as a Vehicle for Political Advocacy
I. Introduction
The higher education sector experienced an unprecedented convergence of regulatory, enforcement, and litigation pressures in 2025, which reshaped the legal and operational environment for colleges and universities. Institutions of higher education (IHEs) came under increased scrutiny from the White House, federal enforcement and regulatory agencies, and Congress, as well as private plaintiffs—on athletics; admissions; diversity, equity, and inclusion (DEI) initiatives; and many other areas. This scrutiny was often accompanied by significant financial consequences. This 2025 Year in Review provides perspective on key events impacting the current landscape of higher education and helps anticipate the trends and developments that will shape 2026 and the years ahead. This review examines the most significant legal developments affecting higher education in 2025, including transformative changes in collegiate athletics and name, image, and likeness (NIL) governance; sweeping executive and congressional actions targeting diversity, accreditation, research funding, and foreign influence; evolving antitrust and civil rights enforcement; and an intensifying landscape of criminal, civil, and administrative investigations that together have radically reshaped institutional risks and compliance obligations.
Nowhere was the pace of change more visible than in collegiate athletics. The final approval of the House v. NCAA settlement marked a historic shift toward direct athlete compensation, formalized revenue sharing, and centralized NIL oversight through the newly created College Sports Commission (CSC). Additionally, aggressive enforcement against gambling-related misconduct, recruiting violations, and oversight failures demonstrated that regulatory discipline has not eased in the post‑NCAA-amateurism era. Meanwhile, the emergence of private equity financing in athletics—and congressional efforts to restrict it—introduced new capital structures alongside novel governance and compliance risks.
Beyond athletics, institutions of higher education were subject to a transformative federal policy agenda driven by executive action. A series of executive orders targeting DEI programs, accreditation standards, and foreign influence fundamentally altered compliance expectations, particularly for IHEs reliant on federal funding. Widespread funding freezes, civil rights investigations, and the use of settlement agreements to mandate structural policy reforms reinforced these directives and placed senior administrators and governing boards under increasing legal and financial pressure.
Moreover, civil and criminal enforcement activity expanded across multiple fronts, with the Department of Justice (DOJ) signaling a willingness to apply the False Claims Act (FCA) to alleged civil rights violations and to aggressively pursue whistleblower‑driven litigation. Additionally, heightened scrutiny of foreign gifts, research partnerships, and national security risks—particularly involving the People's Republic of China—forced institutions to reassess the long‑standing academic and financial relationships upon which they had become reliant.
Although somewhat overshadowed by the civil and criminal enforcement activity, institutions continued to conduct internal investigations into traditional issues like plagiarism, harassment, and leadership misconduct. In 2025, institutions of higher education also had to confront the problems caused by generative artificial intelligence and deal with questions regarding the scope of academic expression in today's political climate.
Antitrust law also remained a central theme in legacy financial-aid cases moving toward resolution, while new legal challenges targeted early-decision admissions practices and tuition pricing.
Congressional committees amplified their enforcement efforts through targeted investigations focused on antisemitism, DEI initiatives, foreign influence, and the perceived politicization of academic programs.
Taken together, 2025 marked a decisive shift toward centralized federal oversight, aggressive enforcement, and the use of financial leverage to reshape the behaviors of US colleges and universities. As these institutions enter 2026, they must navigate an environment where legal risk, reputational exposure, and operational decision‑making are increasingly intertwined—and where proactive compliance, governance discipline, and strategic legal planning are essential.
II. Executive Orders Targeting DEI, Research Funding, the Compact, and the Big Beautiful Bill
A. Executive Orders TargetingDEI
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