What a 2025 Trump Victory Could Mean for Higher Education Regulations: Predictions and Insights (Part 1)

Now that Donald Trump has won the 2024 election, the U.S. education system is set for transformative change. With plans to dismantle the Department of Education (DOE), expand school choice, and promote patriotic education, Trump’s policies are creating an environment where private universities and colleges can thrive. For investors interested in how to open a university in the current climate, the stage is being set for increased flexibility, less federal interference, and new opportunities to attract students through unique, targeted educational models.

In this post, we’ll examine how these anticipated changes could offer significant advantages to those looking to launch new private institutions in 2025 and beyond. With a focus on flexibility, funding avenues, and cultural alignment, these policy shifts could empower founders to open institutions with lower regulatory barriers and higher potential for impact.

Abolishing the Department of Education: More Flexibility for New Institutions

Trump’s plan to eliminate the DOE transfers much of the control over education standards and regulations to individual states. This move is expected to have significant benefits for those pursuing how to open a university, particularly around compliance and operational freedom.

Reduced Compliance and Administrative Costs

Without the DOE’s oversight, new universities may face fewer federal regulations, which are often costly and require extensive administrative work. For institutions just getting started, this reduction in federal requirements can free up funds previously earmarked for compliance. Instead, these resources could go toward developing high-quality academic programs, hiring experienced faculty, and enhancing the student experience.

Impact on Investors: For those looking at how much it costs to open a university, the removal of DOE oversight means potentially lower operating costs in the early years, when funds are often tight. Fewer compliance hurdles can accelerate the opening process, allowing founders to begin operating sooner and, ideally, reach financial stability faster. Lower administrative costs mean more budget flexibility, allowing funds to be directed toward growth-driving initiatives rather than regulatory expenses.

State-Driven Innovation and Customization

With the DOE out of the picture, states will have more freedom to shape their education policies to fit local needs and workforce demands. This flexibility means that institutions can develop programs specifically tailored to state industries. In states with thriving industries—like tech in California or agriculture in Texas—new institutions can design curriculum aligned with local career paths, creating a strong value proposition for prospective students.

Impact on Investors: For those looking to make an impact with niche programs, state autonomy offers a golden opportunity. By tailoring programs to meet local market needs, founders can establish their institutions as key educational players within the state. This state-focused strategy can also attract funding from local industries that are eager for a workforce trained with specific, relevant skills.

Expanding School Choice and Vouchers: Boosting Enrollment Opportunities

Trump’s emphasis on school choice and voucher programs allows public funding to follow students to private institutions. Traditionally a K-12 initiative, this policy is expected to make private colleges and universities a more attractive option for students and families who value educational choice.

Pipeline from Private K-12 Schools

The increase in school choice for K-12 students can create a natural progression to private colleges as these students consider their higher education options. With more students experiencing private education at the K-12 level, a new generation will enter college with a preference for private institutions. This creates a steady pipeline for new universities to capture a segment of students who already appreciate the benefits of private education.

Impact on Investors: For investors considering how to open a university with a steady student flow, this K-12 pipeline is an encouraging prospect. With a cohort of students familiar with private education, founders can attract applicants who are open to private post-secondary education, providing a reliable base of students and reducing the risks of fluctuating enrollment numbers.

Potential Voucher Funding for Higher Education

Although voucher programs are primarily focused on K-12, expanding them to higher education would enable more students from diverse economic backgrounds to consider private universities. This could open doors for students who might otherwise be unable to afford private tuition, broadening the applicant pool and creating a more accessible education model.

Impact on Investors: For those interested in the potential for funding diversity, voucher expansion offers a promising route. By making private universities more affordable, these institutions can diversify their student population, reaching segments that may have traditionally relied on public universities. An expanded applicant pool translates to higher enrollment potential, helping institutions reach financial stability faster and more sustainably.

Launch of the American Academy: Enhancing Acceptance of Online Education

One of Trump’s initiatives is the launch of the American Academy, a tuition-free, national online university. This online-only model is intended to make education more accessible to all Americans. While the Academy might seem like competition, it could also serve to legitimize online education in the public eye, thereby benefiting private institutions that offer online or hybrid programs.

Increased Public Acceptance of Online Learning

By promoting a high-quality, government-backed online option, the American Academy can help make online learning more mainstream. As more students see online education as a viable path, private universities with strong online or hybrid programs will likely see increased interest. The Academy’s endorsement of online learning could pave the way for institutions to reach more students who value flexibility and virtual education.

Impact on Investors: For founders looking into how to open a university with an online component, Trump’s policies help remove a common barrier: skepticism about online learning. With greater public acceptance, new universities can confidently launch online programs and capture a share of the market that values convenience and accessibility. Online programs reduce the need for large campus investments, making the initial costs to open a university lower and potentially more attractive to investors.

Partnerships for Advanced and Specialized Programs

The American Academy is expected to focus on general education, leaving room for private universities to offer specialized, career-focused programs that provide additional credentials and skills. By building partnerships with the Academy or offering transfer options, private institutions could attract students looking to continue their studies with a specific focus, from healthcare to business or technology.

Impact on Investors: For investors, this means an opportunity to attract transfer students seeking advanced credentials. As the Academy creates a base of students with foundational skills, private universities can step in to offer specialized education. This transfer dynamic ensures a steady flow of students looking for advanced training, minimizing recruitment costs and filling niche program spaces effectively.

Patriotic Education Initiative: Catering to Values-Driven Demographics

Trump’s patriotic education initiative is focused on reinforcing American values, history, and civics, aiming to influence not only K-12 but also the broader cultural landscape of education. For private universities, this trend creates the chance to establish a values-driven identity that appeals to students and families seeking an educational experience aligned with American principles.

Appeal to Conservative Families and Donors

The emphasis on patriotic education is likely to resonate with conservative-leaning families who prioritize a curriculum that reflects traditional American values. Private universities that incorporate these themes into their offerings can attract students interested in American history, civics, and governance. This positioning could also appeal to conservative donors who may provide financial support for scholarships, programs, or campus expansion, aligning with the institution’s mission.

Impact on Investors: For investors, Trump’s patriotic education initiative presents an opportunity to attract a dedicated, values-driven demographic. Aligning with this curriculum focus can bring in not only students but also conservative donors and foundations looking to support institutions that emphasize American ideals. This funding can reduce the institution's dependence on other financing sources, contributing to greater financial independence.

Development of Specialized American Studies and Civic Programs

Patriotic education could drive demand for specialized programs that focus on American studies, political science, and civics. These subjects will appeal to students pursuing careers in law, government, and public administration. For a new university, creating programs that align with these themes can differentiate it from traditional universities, attracting students who want a curriculum focused on civic engagement and U.S. history.

Impact on Investors: Investors who want to launch an institution with a unique niche will find patriotic education programs advantageous. With less competition in this area, new institutions can develop a reputation for excellence in American studies and civics, filling a gap in the current educational landscape and attracting students with clear career paths in government and public service.

Strategic Recommendations for New Founders

With these changes reshaping the U.S. education system, founders interested in how to open a university should take proactive steps to align with Trump’s policy shifts, taking advantage of this evolving educational landscape.

Build State-Level Partnerships

In a decentralized system where states have increased autonomy, building strong relationships with state education boards and industries is essential. By aligning with state needs and policies, new universities can tailor their programs to state-specific requirements, creating a strong foundation for success. Additionally, founders can work with local industries to develop targeted programs that serve both students and the community, fostering a sense of local loyalty and support.

Impact on Investors: For investors, state partnerships mean security and regional support. By establishing relationships with local education authorities, new institutions can ensure smoother operations and foster goodwill that may lead to more enrollment, funding, and programmatic collaboration.

Differentiate Through Career-Focused Programs

As competition among private institutions intensifies, universities should focus on creating unique, career-driven programs. This can be achieved through partnerships with local industries, providing internships, certifications, and real-world skills that help graduates secure jobs. With a clear focus on employability, new institutions can attract students eager to launch their careers right after graduation.

Impact on Investors: Career-focused programs are a compelling draw for students concerned about job readiness, making these offerings a strategic advantage. For investors, this approach can enhance the institution’s brand and support higher enrollment numbers, with graduates who become advocates for the institution’s practical value.

Emphasize Experiential and In-Person Learning

In contrast to the American Academy’s fully online model, private universities can distinguish themselves by offering hands-on, experiential programs that prioritize face-to-face interactions and immersive learning. This approach is particularly valuable in fields like healthcare, engineering, and the arts, where practical experience is essential.

Impact on Investors: By offering experiences that can’t be replicated online, private institutions can attract students looking for a comprehensive, hands-on education. This appeal can enhance enrollment, allowing the institution to position itself as a premier choice for students in fields requiring direct, real-world application.

Closing Thoughts

As Trump’s victory sets the stage for a transformative era in U.S. higher education, investors in private postsecondary institutions have an unprecedented opportunity to create impactful, competitive, and adaptable institutions. By dismantling the Department of Education, expanding school choice, introducing patriotic curricula, and launching initiatives like the American Academy, Trump’s policies shift the landscape in ways that could make it easier and more cost-effective for investors to open new institutions.

For those exploring how to open a university or assessing how much it costs to open a university, these policy changes make the proposition more favorable by reducing regulatory barriers, creating a larger pool of prospective students, and diversifying funding opportunities. With less federal interference, founders can focus on innovating to meet specific state and community needs, potentially reaching financial sustainability faster. For new institutions, there’s also the chance to differentiate through career-focused programs, specialized in-person learning experiences, and patriotic education themes that resonate with students and families interested in traditional American values.

Ultimately, this is a time for proactive planning and strategic alignment with emerging trends. Investors should consider building strong state partnerships, exploring new funding mechanisms, and tapping into the growing acceptance of online learning options. As we look forward, these foundational steps can set the groundwork for a resilient and impactful private institution in a postsecondary environment that values choice, accessibility, and community alignment. By embracing this new era, investors can position themselves to build institutions that not only succeed financially but also make a lasting educational impact.

For personalized guidance on opening your university in the United States, reach out to Expert Education Consultants (EEC) at +19252089037 or email sandra@experteduconsult.com