Key Legal and Policy Changes: What You Need to Know

As a public university within the UNC System, the University is required to comply with all applicable laws and policies. UNC Charlotte also remains committed to ensuring a welcoming and supportive environment for all members of our community.

Last updated: Feb. 06, 2026

At a Glance

The legal and policy landscape affecting higher education has shifted from rapid change to ongoing implementation. While some federal actions continue to be litigated or interpreted, others are in effect.

Settled and currently in effect

Institutional Neutrality Law (North Carolina)
UNC System Equality Policy
Suspension of DEI-related course requirements (UNC System)
U.S. Attorney General guidance regarding unlawful discrimination (federal)
Executive Order 14173 and Executive Order 14151 (federal)
Department of Homeland Security directives related to law enforcement activity and humanitarian parole (federal)

Not in effect due to court rulings

NIH indirect cost rate cap (federal)
NSF indirect cost rate cap (federal)
Department of Education “Dear Colleague Letter” and related FAQ regarding race, color, and national origin discrimination (federal)

Still evolving through litigation or agency action

Federal agency interpretations of civil rights law (federal)
Department of Education restructuring efforts (federal)
Immigration and humanitarian parole practices (federal)

The sections below provide additional context on each item and explain how the University is complying with these changes.

Policies Directly Affecting Campus Operations

Executive Order 14173: “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”

What it is: The order, signed in January 2025, directs the removal of all diversity, equity and inclusion (DEI) programs and requirements from federally funded organizations, including universities that receive federal aid. The Trump administration has stated that the order is meant to ensure compliance with existing federal civil rights laws.

Status: The order is currently enforceable while litigation continues. A federal judge temporarily blocked parts of the executive order in February 2025. On March 14, the U.S. Court of Appeals for the Fourth Circuit allowed the order to take effect while litigation continues.

Operational update: UNC Charlotte complies with all federal civil rights laws. However, federal agencies may interpret those laws in new ways and issue updated guidance that could impact grant funding and institutional policies. The University will comply with any such guidance as it is issued, while also monitoring anticipated legal challenges to these interpretations.

Executive Order 14151: “Ending Radical and Wasteful Government DEI Programs and Preferencing”

What it is: The order, signed in January 2025, is aimed specifically at eliminating DEI-focused positions and offices within federal agencies. This directive has led some agencies to pause or withdraw funding from DEI-focused research projects.

Status: The order is currently enforceable while litigation continues. A federal district court temporarily blocked parts of the order, but in March 2025, the U.S. Court of Appeals for the Fourth Circuit allowed the order to take effect while litigation continues.

Operational update: Funding for a number of research grants has been paused, modified, or stopped entirely depending on the agency and funding source. Additional guidance and agency-specific updates are expected as cases move forward in the courts and as agencies adjust enforcement practices. More information about these changes is available on the Division of Research website.

Institutional Neutrality Law (North Carolina)

What it is: Enacted in July 2023, this law requires all public universities in North Carolina to maintain institutional neutrality on “political controversies of the day.”

Status: This law is in effect.

Operational update: This law prohibits the University from issuing statements or otherwise taking official positions on political controversies. However, this law does not restrict the speech rights of individual faculty, staff, or students not acting on behalf of the University. More information is available on Inside UNC Charlotte.

Equality Policy (UNC System)

What it is: The May 2024 policy, “Equality Within the University of North Carolina,” replaces the UNC System’s former diversity and inclusion policy.

Status: This policy is in effect.

Operational update: The University must comply with institutional neutrality, refrain from compelling others’ speech and refrain from promoting political or social concepts through training or required beliefs. This policy also required the elimination of certain DEI-related offices or programs. More information is available on the Legal Affairs website.

Suspension of DEI-Related Course Requirements

What it is: In response to Executive Order 14173, in February 2025, the UNC System directed all institutions to suspend any general education or degree-specific mandatory DEI course requirements.

Status: This directive is in effect.

Operational update: The University assessed its general education and degree-specific course requirements to ensure they complied with the directive. A small number of courses received waivers to continue. More information is available on the Academic Affairs website.

Immigration, Enforcement and Individual Impact

Department of Homeland Security Directives Expanding Law Enforcement and Ending the Abuse of Humanitarian Parole

What it is: On Jan. 20, 2025, Acting Department of Homeland Security (DHS) Secretary Benjamine Huffman issued two significant directives:

Rescission of “Sensitive Locations” Enforcement Guidelines: This directive rescinds previous guidelines that limited Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) operations in or near “sensitive” areas such as schools, churches, and hospitals.
Revision of Humanitarian Parole Practices: This directive ends the broader use of humanitarian parole, which had allowed streamlined entry for certain groups, and reinstates a case-by-case assessment approach. Since late 2025, DHS has further narrowed the use of humanitarian parole by ending several categorical parole programs and reinforcing a strictly case-by-case review process.

Status: Currently in effect.

Operational update: The University has issued guidance about what members of the campus community should do if they are approached by someone identifying themselves as a law enforcement officer.

Research Funding Environment

NIH Policy Change: “Standardization of Indirect Cost Rates”

What it is: In February 2025, the National Institutes of Health (NIH) implemented a policy capping indirect cost reimbursements at 15% for all new and existing research grants.

Status: Not currently in effect. On January 6, 2026, the First Circuit Court of Appeals affirmed a lower court’s ruling that the 15% cap on indirect costs (commonly known as F&A) “violates the congressionally enacted appropriations rider and HHS’s duly adopted regulations.”

Operational update: The January 2026 ruling stands unless or until Congress takes further actions.

NSF Policy Change: “Standardization of Indirect Cost Rates”

What it is: On May 2, 2025, the National Science Foundation (NSF) announced it would implement a policy capping indirect cost reimbursements at 15% for all new research grants beginning May 5, 2025.

Status: Not currently in effect. As indicated directly by NSF: “On June 20, 2025, the U.S. District Court for the District of Massachusetts…vacated NSF’s 15% Indirect Cost Rate policy (NSF 25-034). In compliance with the court’s decision, NSF will not implement the policy at this time. New NSF awards issued will not implement NSF 25-034, but will include a term applying NSF 25-034 for the entirety of the award if a subsequent court decision permits application of the policy.”

Operational update: The policy would reduce the reimbursements received for federally funded research, which may impact research infrastructure and support services. The NSF is not implementing the policy at this time.

Federal Education System Changes

Executive Order 14242: Improving Education Outcomes by Empowering Parents, States and Communities

What it is: On March 20, 2025, President Donald Trump signed Executive Order: Improving Education Outcomes by Empowering Parents, States, and Communities, directing the secretary of education to begin the process of closing the Department of Education and returning authority to the states, while maintaining uninterrupted delivery of essential services, including federal student loans and Pell Grants.

Status: The executive order is effective and initiated the process of closing the Department of Education; however, since the department was established by an act of Congress in 1979, its permanent closure will require congressional approval.

Operational update: In March 2025, the Department of Education initiated a large-scale reduction in force of nearly 1,400 employees. On July 14, 2025, the U.S. Supreme Court temporarily permitted the reduction in force to remain in effect. The litigation is ongoing. Legally-required functions remain active (such as Federal student aid, civil-rights enforcement), but with impacted capacity. The University will continue to monitor developments and provide updates as more information becomes available.

Federal Guidance: Attorney General’s Guidance For Recipients of Federal Funding

What it is: On July 29, 2025, the U.S. Attorney General issued guidance to clarify the application of federal antidiscrimination laws to programs or initiatives that may involve discriminatory practices, including those labeled as Diversity, Equity, and Inclusion (“DEI”) programs. The guidance includes examples of unlawful discrimination, including but not limited to scholarships or programs exclusively for students of a particular race, hiring preferences based on race, neutral criteria as proxies for unlawful discrimination, separate or segregated facilities or programs based on race, and trainings that promote discrimination based on protected characteristics.

Status: Currently in effect.

Operational update: The University does not engage in unlawful discrimination. If any units have questions about their particular programs or practices, they should contact the Office of Legal Affairs.

REGARDING UNLAWFUL DISCRIMINATION

Federal Guidance: Department of Education’s Letter Regarding Title VI of the Civil Rights Act (often cited as “Dear Colleague Letter,” or “DCL”)

What it is: The Feb. 14, 2025 letter from the Department of Education’s Office of Civil Rights states that, based on the Supreme Court’s 2023 ruling in Students for Fair Admissions v. Harvard, colleges and universities may not treat individuals differently based on race, color, or national origin in admissions, hiring, financial aid, or other institutional decisions. It also states that educational institutions must not separate or segregate students based on race, color, or national origin for campus events and programs. The Department of Education warns that non-compliance could result in investigations and potential loss of federal funding. On February 28, 2025, the Department of Education issued a frequently asked questions (FAQ) document intended to anticipate and answer questions raised in response to the letter.

Status: Not currently in effect. On Aug. 14, 2025, a U.S. District Court ruled that the DCL and FAQ are unenforceable because they were not properly enacted. On January 21, 2026, the United States Department of Education agreed to dismiss its appeal in the U.S. District Court for the Fourth Circuit. This means that the District Court’s decision is final.

Operational update: No additional steps needed. The University does not factor race, color, or national origin into admission or hiring decisions, or base any educational decision on those or other protected statuses.