United States: Education

The Senate has advanced the Protect College Sports Act, a comprehensive legislative proposal that would fundamentally reshape college athletics by capping NIL payments, restricting conference realignment, and establishing new compliance obligations for institutions. With bipartisan support and Trump administration backing, the bill faces significant opposition over revenue-sharing limits and unresolved questions about student-athlete employment status.

Stanford University challenges the NLRB's application of the Columbia standard to undergraduate residential assistants, potentially setting up a landmark case that could overturn precedent allowing student workers to unionize. The university argues that undergraduate peer leaders differ fundamentally from graduate teaching assistants and that the Board should decline jurisdiction over student employment relationships.

On September 28, 2026, the Senate passed the Protect College Sports Act (PCSA), with roughly two dozen Democrats joining 50 Republicans in the 77-22 vote. Introduced by Senators Ted Cruz (R-TX) and Maria Cantwell (D-WA), the PCSA seeks to establish a uniform set of standards governing name, image and likeness (NIL) and eligibility issues in college athletics, while offering limited antitrust protections and bolstering the NCAA’s enforcement authority.

On Sept. 3, 2026, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released proposed regulations that would deny or revoke tax-exempt status under Internal Revenue Code (Code) Section 501(c)(3) for private educational institutions that offer targeted support to students based on race, color or national or ethnic origin.

The IRS has proposed a sweeping rule that would strip tax-exempt status from private schools maintaining race-conscious policies, including diversity, equity, and inclusion initiatives. The proposed regulation, set to impact over 18,000 educational institutions and 750,000 students, extends beyond traditional discrimination to encompass policies intended to serve remedial or diversity-related objectives. Schools face critical compliance decisions regarding scholarships, admissions criteria, and athletic pro

The Student and Exchange Visitor Program has issued new guidance that fundamentally reinterprets curricular practical training requirements for F-1 students, potentially eliminating Course Credit CPT and requiring practical training to be mandatory for all students in a degree program. This shift from decades of established practice creates immediate compliance challenges for institutions of higher education and raises questions about the validity of current and pending CPT authorizations.

Phoenix Partners Matthew Martinez and Gregg Clifton examine how a new Department of Homeland Security rule will fundamentally change immigration planning for international student-athletes by replacing the longstanding 'Duration of Status' system with fixed admission periods. The article provides critical guidance for athletes and institutions navigating this significant shift in U.S. immigration policy affecting collegiate athletics.

This is the second in our 2026 Year in Preview series examining important trends in white collar law and investigations in the coming year. Up next: anti-corruption/FCPA enforcement

Secretary of Education Linda McMahon has issued an open letter asking all U.S. universities to publicly describe their commitments to rigorous teaching, research, and national service by year-end 2026. Unlike the administration's failed 2025 compact proposal, this voluntary initiative includes no legal mandates, funding conditions, or penalties for noncompliance. The letter poses seven questions covering admissions transparency, free speech, intellectual pluralism, affordability, academic rigor, research se