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Education Department Plans New Federal Rules on DEI, Sex and Foreign University Funding

Cameron
Cameron
July 22, 2026
19 min read
Education Department Plans New Federal Rules on DEI, Sex and Foreign University Funding
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The U.S. Department of Education’s 2026 regulatory agenda outlines new rules affecting DEI programs, Title IX’s definition of sex, civil-rights enforcement and foreign funding disclosures at colleges and universities.

Editorial Note

This article is provided for general educational and informational purposes and does not constitute legal advice. It discusses planned and developing federal regulations that may change before publication or implementation.

A federal regulatory agenda is a statement of an agency’s expected priorities. It does not itself create binding legal obligations. Some listed actions may be delayed, revised, withdrawn or challenged in court.

The Department of Education describes its planned changes as efforts to enforce federal civil-rights law, improve transparency and align regulations with current executive policy. Universities, civil-rights organizations and student advocates may dispute the department’s legal interpretations or argue that some changes could restrict lawful programs and student protections.

The U.S. Department of Education is preparing a broad collection of regulations that could change how colleges handle diversity programs, transgender students, foreign financial relationships and federal civil-rights investigations.

The department’s 2026 Unified Regulatory Agenda includes 19 active items. Several directly affect colleges and universities, while others concern the Office for Civil Rights and federal education programs more broadly. The agenda lists planned actions involving Title VI, Title IX, accreditation, foreign gifts, student privacy, campus safety and federal financial-aid eligibility.

The agenda was released in early July rather than on July 21. However, its possible consequences remained an important federal education story during the July 21 news cycle as universities reviewed the proposals and prepared for potential compliance changes.

Three subjects are likely to attract the greatest controversy: how federal law applies to diversity, equity and inclusion programs; whether Title IX should define sex exclusively through biological classification; and how colleges must disclose financial relationships with foreign governments, companies and donors.

Each issue is legally distinct.

Together, they show that the department intends to use regulation not only investigations against individual institutions to reshape national higher-education policy.

What the Regulatory Agenda Actually Means

The Unified Regulatory Agenda provides advance notice of rules an agency expects to propose or complete.

It is not the same as a final regulation published in the Federal Register.

Some agenda items remain in a prerule stage, meaning the department is still preparing for formal rulemaking or negotiated discussions. Others are listed as proposed rules or final rules.

The dates attached to agenda items are estimates rather than firm legal deadlines. Federal agencies regularly postpone or revise planned actions, particularly when regulations involve complicated statutes, public comments or litigation.

Inside Higher Ed reported that the department’s agenda contains 19 planned items, including six directly related to higher education and four focused on civil-rights enforcement. The publication also noted that it is uncommon for an administration to complete every item on its agenda within the projected period.

Universities should therefore take the agenda seriously without assuming that every listed proposal is already law.

New Title VI Rules Could Reshape DEI Programs

One planned action would explain how Title VI of the Civil Rights Act applies to diversity, equity and inclusion programs.

Title VI prohibits discrimination based on race, color or national origin in institutions receiving federal financial assistance. Because most colleges accept federal grants or participate in federal student-aid programs, the law reaches much of American higher education.

The department is expected to clarify how Title VI applies to race-conscious, race-exclusive or race-based educational programs and criteria.

That could affect scholarships, student-support initiatives, affinity programs, internships, recruitment efforts and university partnerships that consider race when determining eligibility or participation.

The administration argues that programs offering benefits or opportunities according to race may violate federal law, even when institutions say those programs are intended to address historic underrepresentation.

Universities may respond that some initiatives are open to everyone while focusing their outreach or mission on communities that have experienced educational disadvantages.

The legal outcome may depend on the program’s actual eligibility criteria rather than its name or stated purpose.

A multicultural center that welcomes all students may present a different legal question from a scholarship restricted to applicants of a particular race.

The Rules Could Extend Beyond College Admissions

The Supreme Court’s 2023 decision in Students for Fair Admissions v. Harvard limited the use of race in college admissions.

The Department of Education has interpreted the broader principles of that decision as relevant to other university programs as well.

Planned regulations could formalize that approach by explaining how Title VI applies to scholarships, hiring-related initiatives, mentoring programs, student organizations and other race-conscious activities.

Inside Higher Ed reported that the department’s anticipated rule would likely state that Title VI restricts race-based, race-exclusive and race-conscious programs beyond the admissions process.

Supporters say this would ensure that students are not excluded or favored because of race.

Critics argue that extending the admissions ruling across every campus activity could eliminate programs designed to address documented barriers without requiring proof that those programs discriminated unlawfully.

Colleges may need to review not only formal DEI offices but also individual scholarships, outreach agreements and departmental initiatives.

The Department Plans to Eliminate Disparate-Impact Enforcement Under Title VI

A separate rule would eliminate the department’s use of disparate-impact theory under Title VI.

Disparate impact concerns policies that appear neutral but produce substantially unequal consequences for protected groups. It differs from intentional discrimination, which requires evidence that a person or institution acted because of race, color or national origin.

The Department of Education’s agenda lists the elimination of disparate-impact theory as a final-rule action.

The administration argues that civil-rights enforcement should focus on intentional unequal treatment rather than statistical disparities alone.

Supporters say schools and colleges should not face federal penalties merely because a neutral policy produces different outcomes among demographic groups.

Opponents argue that intentional discrimination can be difficult to prove and that disparate-impact analysis can reveal structural barriers hidden behind apparently neutral rules.

For universities, the change could affect investigations involving admissions criteria, discipline, financial aid, campus programs and other policies producing unequal results.

Title VI’s prohibition against intentional discrimination would remain. The dispute concerns which evidence federal investigators may use to establish a violation.

Title IX Would Define Sex as Biological and Immutable

The department also plans to revise Title IX regulations to define sex according to biological classification as male or female.

The official agenda says the regulation would implement Executive Order 14168 by clarifying that Title IX is based on an individual’s “immutable biological classification” as either male or female.

Title IX prohibits sex discrimination in education programs receiving federal funding.

The meaning of sex under that law affects athletics, restrooms, locker rooms, housing, pronoun policies, disciplinary procedures and the treatment of transgender students.

Under the planned rule, the department would not interpret sex as including gender identity in the same manner used by the previous administration.

Supporters argue that sex-based protections lose their meaning if biological distinctions are not maintained, particularly in women’s athletics and intimate facilities.

Opponents argue that excluding gender identity from federal protections could expose transgender students to discrimination and create conflicts with other court decisions, state laws or institutional policies.

The final rule could generate immediate litigation.

Colleges Could Face Conflicting Legal Requirements

Universities frequently operate under several overlapping legal systems.

A federal regulation may require one approach while a state civil-rights law requires broader protections for gender identity.

Private institutions may also maintain their own nondiscrimination commitments that go beyond the minimum federal standard.

This means a revised Title IX rule may not automatically require every college to eliminate protections for transgender students.

An institution may remain free or be required under state law to prohibit gender-identity discrimination even when the federal government adopts a narrower interpretation of Title IX.

The difficult cases will involve policies that the federal government believes conflict with sex-based rights.

Athletics, housing and sex-separated facilities are likely to remain the most contested areas.

Universities will need to evaluate the final rule alongside state law, court decisions, athletic-association policies and contractual promises made to students.

The Definition of Sex Could Affect More Than Athletics

Public debate often centers on transgender participation in women’s sports, but Title IX reaches much further.

A new federal definition could influence how colleges investigate harassment, manage campus housing, maintain student records and respond to requests involving names or gender classifications.

It could also affect K–12 schools receiving federal assistance.

The department’s agenda provides only a limited description of the planned rule. More precise effects will depend on the text eventually published in the Federal Register.

Universities should avoid assuming that every possible question has already been answered.

The agenda establishes the administration’s direction, not the full regulatory framework.

Foreign Funding Rules Could Become More Demanding

The department is also preparing rulemaking concerning foreign gifts and contracts under Section 117 of the Higher Education Act.

Section 117 generally requires certain institutions to report qualifying gifts and contracts from foreign sources when their combined value reaches at least $250,000 during a calendar year.

The department’s agenda lists documentation of foreign-source gifts and contracts in the prerule stage.

Federal officials argue that stronger reporting is necessary because foreign governments, companies or organizations may seek influence through research agreements, donations and institutional partnerships.

Universities agree that transparency matters but often argue that reporting requirements can become confusing when they involve affiliated foundations, foreign campuses, research contracts and multiple related transactions.

The next regulatory process may define what documentation institutions must maintain and how the department verifies compliance.

The Department Is Already Expanding Public Foreign-Funding Disclosures

The foreign-funding issue is not merely theoretical.

In July, the Department of Education reminded institutions that Section 117 reports were due by July 31, 2026. The department also announced plans to publish additional information connecting specified foreign sources to individual universities.

An update issued July 14 said publication of all foreign sources from earlier reporting cycles would be delayed until July 29. On July 15, the department instead planned to publish transactions involving 92 entities appearing on a government list of foreign organizations.

The announcement confirms that foreign-funding enforcement and public transparency are already active priorities.

A future regulation could make those expectations more formal and detailed.

Universities that fail to submit accurate disclosures may face enforcement action.

Why Foreign University Funding Is Controversial

Foreign gifts and contracts can support valuable work.

Universities use international funding for medical research, engineering, language study, student exchanges and global academic partnerships.

Not every foreign relationship represents improper influence.

The concern arises when funding conditions are hidden, when a foreign government attempts to shape research or when universities fail to report transactions required by federal law.

Disclosure can help policymakers and the public evaluate potential conflicts.

At the same time, public databases can create misleading impressions when a listed transaction lacks context.

A research contract with a foreign company may be treated by readers as equivalent to a political donation even though the arrangements are fundamentally different.

The strongest reporting system would disclose meaningful details without implying wrongdoing solely because funding originated outside the United States.

Universities May Face Reputational Consequences Before Formal Penalties

Public disclosure can affect an institution even when no violation has been proven.

Once a university’s name appears beside a foreign government or company, elected officials, donors and media organizations may question the relationship.

That reputational pressure may encourage institutions to conduct more careful reviews of foreign agreements.

It may also discourage lawful international collaboration if universities fear that ordinary partnerships will be portrayed as suspicious.

Federal officials should distinguish among gifts, research contracts, tuition payments, licensing arrangements and partnerships.

Transparency works best when the public can understand what a transaction actually represents.

Accreditation Could Become Another Tool for Changing Campus Policy

The regulatory agenda also includes changes to accreditation.

Accrediting agencies play a powerful role because colleges generally must be accredited by a federally recognized organization to participate in federal student-aid programs.

The administration has signaled that it wants accreditation to focus more heavily on student outcomes, workforce preparation, free speech and viewpoint diversity.

It has also criticized accreditor requirements connected to DEI.

A legal analysis published by Nixon Peabody said the planned accreditation changes may make it easier for institutions to change accreditors, encourage the recognition of new organizations and increase scrutiny of diversity-related accreditation standards.

This could reduce the ability of accreditors to require institutions to adopt particular DEI policies.

It could also allow colleges dissatisfied with one accreditor’s standards to seek another more closely aligned with their institutional mission.

Critics may worry that easier switching could weaken accountability if colleges avoid demanding oversight.

Civil-Rights Investigation Procedures Could Change

The agenda includes a separate rule concerning the procedures used by the Office for Civil Rights.

OCR investigates complaints under Title VI, Title IX, Section 504 and other federal protections.

Changes could affect how complaints are evaluated, dismissed, investigated or referred for enforcement.

The department has also shifted some education-related civil-rights responsibilities toward the Department of Justice.

Supporters say streamlined procedures could reduce long delays and focus resources on stronger cases.

Civil-rights advocates may worry that faster dismissals or narrower legal interpretations could make it harder for students to obtain relief.

The details will matter enormously.

A procedural regulation can shape civil-rights enforcement almost as much as the substantive law because rights have limited value when students cannot obtain a timely investigation.

FERPA and Campus-Safety Rules Are Also on the Agenda

The department plans additional rulemaking involving the Family Educational Rights and Privacy Act and the Clery Act.

FERPA governs access to and disclosure of education records. Potential changes may address third-party vendors, law-enforcement requests, complaint procedures and federal enforcement.

Clery Act regulations concern campus crime reporting, safety notices and institutional disclosure obligations.

These subjects are not part of the headline debate over DEI and Title IX, but they may produce significant compliance changes for colleges.

Institutions increasingly rely on outside technology companies that process student data. Clearer FERPA rules could affect learning platforms, artificial-intelligence tools, cloud storage and analytics systems.

Clery changes could affect how campuses classify incidents and communicate risks to students.

The Agenda Does Not Automatically Ban DEI

The regulatory agenda should not be described as an immediate nationwide ban on every DEI program.

The department is planning regulations explaining how it believes federal civil-rights law applies to such programs.

Some race-exclusive arrangements may face substantial legal risk. Other programs may remain lawful when they are open to all students and do not distribute benefits according to race.

Universities will need to examine what a program actually does.

Closing every cultural center or eliminating all discussion of inequality may go beyond what federal law requires.

At the same time, institutions that assume a DEI label protects a program from scrutiny may underestimate the administration’s enforcement approach.

The safest analysis is program-specific and legally grounded rather than driven by slogans from either side.

The Agenda Does Not Yet Rewrite Title IX

The planned biological-sex definition is listed as a final-rule action, but the agenda alone is not the operative regulation.

Institutions must review the final Federal Register publication, its effective date and any court orders affecting implementation.

Litigation could delay or block parts of the rule.

A change in administration could also produce another regulatory reversal.

Title IX has experienced repeated shifts across presidential administrations, creating compliance uncertainty for schools and colleges.

That instability is one reason universities may maintain protections broader than federal minimums while preparing for changing legal requirements.

Colleges Should Prepare for Several Rules at Once

The combined effect may be more challenging than any single regulation.

A university could simultaneously face new rules concerning DEI, Title IX, foreign funding, accreditation, FERPA and campus safety.

Each subject may be managed by a different campus office.

General counsel, financial aid, research administration, student affairs, athletics, human resources, information technology and institutional compliance will need to coordinate their responses.

Smaller institutions may struggle because they lack large legal and administrative teams.

Federal agencies should provide realistic implementation periods and detailed guidance.

A regulation intended to improve compliance may fail when institutions cannot determine what the government expects.

Why the Rules Will Likely Produce Lawsuits

Several planned actions involve unresolved legal questions.

Courts may be asked whether the department has interpreted Title VI too broadly, whether its Title IX definition is consistent with federal statutes and Supreme Court precedent, and whether foreign-funding requirements exceed congressional authority.

Universities or advocacy groups may also raise constitutional claims involving speech, association, equal protection and due process.

The government will argue that institutions voluntarily accept federal funding and must comply with lawful conditions attached to that money.

Opponents may respond that funding conditions cannot be vague, coercive or unrelated to the purposes established by Congress.

The final language will determine the strength of those challenges.

Broad political statements are easier to announce than legally durable regulations.

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Federal regulations often appear technical, but their effects are felt in scholarships, student organizations, athletics, research partnerships and the way institutions respond to discrimination complaints.

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Key Takeaways

The Department of Education’s 2026 Unified Regulatory Agenda includes 19 active items involving higher education, civil rights, student privacy, accreditation and other federal education programs.

The agenda indicates that the department plans to explain how Title VI applies to DEI and race-conscious programs.

A separate action would eliminate disparate-impact theory from the department’s Title VI regulations while preserving the prohibition against intentional discrimination.

The department plans to define sex under Title IX as an immutable biological classification of male or female.

Foreign-funding rulemaking is expected to strengthen documentation and enforcement under Section 117 of the Higher Education Act.

The agenda does not itself create new legal obligations. Universities must wait for formal rules, effective dates and possible court decisions.

Frequently Asked Questions

Did the Education Department ban DEI programs?

No. The regulatory agenda announces planned rules addressing how Title VI applies to DEI and race-conscious programs. The legality of a particular program will depend on its structure and the final regulations.

When was the regulatory agenda released?

The department released its 2026 regulatory agenda in early July. It remained an active federal education issue during the July 21 news cycle.

How would the Title IX rule define sex?

The agenda says sex would refer exclusively to an individual’s immutable biological classification as male or female.

Is the Title IX change already in effect?

The agenda itself does not put the change into effect. Institutions must review the final rule, its implementation date and any court orders.

What is disparate-impact discrimination?

It refers to a policy that appears neutral but produces disproportionate harm for a protected group. The department plans to remove disparate-impact theory from its Title VI regulations.

What foreign funding must colleges report?

Section 117 generally requires institutions to report qualifying gifts and contracts from foreign sources when the combined value reaches at least $250,000 within a calendar year.

Does receiving foreign funding mean a university did something wrong?

No. Many foreign gifts, research contracts and partnerships are lawful. The issue is whether required transactions are accurately disclosed and whether any conditions create conflicts or security concerns.

Could colleges lose federal funding?

Federal funding consequences may apply when institutions violate applicable laws or reporting requirements. The precise procedures and penalties will depend on the final regulations and enforcement process.

Will the rules affect K–12 schools?

Some civil-rights and student-privacy regulations could affect K–12 institutions receiving federal funds. Other agenda items are directed more specifically toward colleges and universities.

Final Thoughts

The Education Department’s agenda represents more than a collection of technical regulatory updates.

It is an attempt to convert the administration’s education priorities into rules that could remain influential beyond individual investigations or political announcements.

Supporters see overdue enforcement.

They argue that students should not receive different opportunities because of race, that Title IX should preserve biological distinctions and that universities must fully disclose relationships with foreign sources.

Opponents see a risk that federal authority will be used to weaken civil-rights protections, restrict support for underrepresented students and place transgender students in more vulnerable positions.

Both sides recognize the importance of the regulatory process.

Investigations against individual colleges can be reversed or settled. Formal regulations can affect thousands of institutions at once.

The department must now translate broad political positions into legally precise standards.

Universities should comply with civil-rights law and disclose foreign financial relationships. They should also have enough clarity to know which programs are unlawful and which remain protected.

A student-support initiative should not escape review simply because it is labeled as inclusive. It also should not be eliminated merely because it uses the language of diversity.

Foreign funding should be transparent. International collaboration should not automatically be treated as disloyalty.

Sex-based protections should be meaningful. The dignity and safety of transgender students should not disappear from institutional concern.

The strongest regulations will be those that can survive changes in political leadership because they are clear, lawful and workable.

The weakest will be those that replace one form of ideological pressure with another.

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Sources

Reginfo.gov — Department of Education 2026 Agency Rule List
https://www.reginfo.gov/public/do/eAgendaMain?agencyCd=1800¤tPub=true&operation=OPERATION_GET_AGENCY_RULE_LIST&showStage=active

Reginfo.gov — Implementation of Title IX Based on Definition of Sex Identified in Executive Order 14168
https://www.reginfo.gov/public/do/eAgendaViewRule?RIN=1870-AA23&pubId=202510

Federal Student Aid — Section 117 Foreign Gift and Contract Reporting Reminder
https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2026-07-06/reminder-reporting-deadline-section-117-higher-education-act-1965-updated-july-14-2026

Inside Higher Ed — What’s on the Education Department’s Higher-Ed Regulatory To-Do List
https://www.insidehighered.com/news/government/student-aid-policy/2026/07/08/whats-trumps-higher-ed-regulatory-do-list

Nixon Peabody — Department of Education Sets 2026 Higher-Education Rule Agenda
https://www.nixonpeabody.com/insights/alerts/2026/07/14/department-of-education-sets-2026-higher-ed-rule-agenda

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