Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 41

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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, 2025. ED has not yet provided a complete list of topics for
which it may propose regulations or the full schedule for negotiating and publishing final regulations. Consequently, we cannot predict
the ultimate timing, content, and impact of any regulations and guidance ED might propose and ultimately adopt. In addition, the President
directed federal agencies on April 9, 2025 to identify existing regulations that are unlawful or otherwise objectionable and to take
steps to repeal or modify these regulations. We cannot predict what rules ED might attempt to repeal or modify, the timing and outcome
of these efforts, or the impact of any regulatory repeals of modifications on our business and schools.

Congressional
and Executive Action

As
previously reported, there are indications based on recent elections that the new administration, and potentially the U.S. Congress,
will attempt to dissolve ED, diminish its operational role, and/or transfer some or all of its functions to one or more agencies. See
Form 10-Q, February 13, 2025, at “Regulatory Updates.”

In
March 2025, ED implemented a reduction in force (“RIF”) that, coupled with resignations by ED staff, reportedly reduced ED’s
workforce by approximately half. The RIF also eliminated several school participation divisions, including the school participation division
that previously oversaw the operations of our institutions, and eliminated or significantly reduced several other offices or divisions
within ED. We currently are working with other offices and personnel at ED on some of our pending matters, but it is possible that we
could encounter delays and difficulties obtaining timely ED approval of recent and future acquisitions of other schools. See Annual Report
at Form 10-K at “Education Regulations – School Acquisitions” and “Education Regulations – Change of Control.”
We also could encounter delays and difficulties obtaining timely ED approval of new campuses or other educational programs for which
we wish to offer Title IV funds to students and which required ED approval. See Annual Report at Form 10-K at “Education Regulations
– Opening Additional Campuses and Adding Educational Programs.”

In
March 2025, the President issued an Executive Order calling for all necessary steps to close ED although the executive order did not
indicate the process or timing for accomplishing this task nor identify where some of the functions of ED might be transferred. We continue
to monitor developments in this area, but cannot yet predict whether the administration or Congress will be successful in closing or
further reducing ED and/or transferring some or