Cato Institute Analyzes Federal Higher Education Budget Reforms for 2026

The Cato Institute has published a report detailing federal budget reforms set to impact higher education starting in July 2026. The analysis examines changes to student loans, Pell Grants, and university endowment taxes, stemming from the One Big Beautiful Bill Act of 2025. These provisions are projected to generate over $265 billion in savings over the next decade through measures like eliminating subsidized loans and reforming Public Service Loan Forgiveness.