As things move quickly in Washington, DC, NACUBO is your constant advocate in action. NACUBO On Your Side covers important legislative and agency activity NACUBO staff are tracking, what we’re currently advocating for, and how you can take action with us.
Here are the issues we are tracking and advocating for this week.
Biden Administration Takes Action on Outbound Investments
Of note to investment offices, the White House has issued an executive order addressing their concerns with investments that may support advancements technologies and products that are critical to military capabilities in “countries of concern,” and the U.S. Department of Treasury Investment Security Office issued an Advance Notice of Proposed Rulemaking to solicit input.
New Prevailing Wage Rules Apply to Federally Funded and Clean Energy Projects
The Department of Labor published final regulations aimed at streamlining the process for setting and enforcing wage rates on federally funded construction projects. The new rules aim to ensure prevailing wage rates keep pace with actual wages paid to workers in their communities. Under separate IRS requirements stemming from the Inflation Reduction Act, institutions claiming clean energy credits or the 179D deduction will be required to pay employees or contractors working on construction at their facilities in accordance with these new prevailing wage rules.
Federal Appeals Court Blocks Borrower Defense Rules
The 5th U.S. Circuit Court of Appeals has issued a nationwide injunction against borrower defense to repayment rules the Biden administration published last November. The rules, effective July 1, simplify certain processes through which the Department of Education can discharge borrowers’ loans due to institutional misconduct. In their order, the panel of judges did not provide reasoning for ruling in agreement with the plaintiff, Career Colleges and Schools of Texas, but said they would hear the case this fall.
NACUBO Applauds IRS for Clarifying Direct Pay Eligibility
In comments to the IRS, NACUBO and eight other higher education associations thanked leaders at the IRS for issuing proposed rules clarifying that all public universities, including those designated as instrumentalities of their states, are eligible for the direct pay option for various tax credits available in the Inflation Reduction Act.
NACUBO On Your Side: July 25–August 7, 2023