In 2026, the federal government will curb access to billions of dollars in student loans, reconfigure how borrowers repay their debt and provide new grant money for short-term career training programs.

All of these changes are slated to take effect in July and are the result of the One Big Beautiful Bill signed into law in summer. The financial aid provisions in the law, which extend tax cuts from President Donald Trump’s first term, will affect how families pay for higher education. Since November, the Education Department has been negotiating the terms of the policies with a panel of experts, as required by Congress. Terms for the new rules will be finalized in early 2026, with few anticipated changes.

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The lawsuit was filed in the U.S. District Court for the Eastern District of Virginia by the American Civil Liberties Union on behalf of 12 students from six families who attend schools as children of active duty service members, the ACLU said.

The lawsuit argues that students’ First Amendment rights were harmed by what the ACLU called the “censorship of materials about race and gender in military-run schools.” The U.S. Constitution’s First Amendment protects free speech.

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