Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 92

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 92
---
 is scheduled to meet in December 2025 and January 2026 and to consider new regulations on issues such as institutional
and programmatic accountability measures (including the financial value transparency and gainful employment regulations and the accountability
measures in the OBBBA) and changes to the Pell Grant Program.

We expect the new regulations that are expected to
emerge from the RISE and AHEAD Committees will impact our institutions and operations, but we cannot predict the ultimate scope, content,
and impact of the future ED regulations and guidance including any regulations further implementing the new OBBBA requirements. We are
currently assessing, and will continue to assess, the potential impact of the new and proposed requirements on us and our institutions
and to monitor the ongoing negotiated rulemaking process. We also cannot predict with certainty the ultimate combined impact of the regulatory
changes which have occurred in recent years, nor can we predict the effect of future legislative or regulatory action by federal, state
or other agencies regulating our educational programs or other aspects of our operations, how any resulting regulations will be interpreted
or whether we and our institutions will be able to comply with these requirements in the future. Any such actions by legislative or regulatory
bodies that affect our programs and operations could have a material adverse effect on our student population and our institutions, including
the need to cease offering a number of programs.

3

Congressional Action

The U.S. Congress must periodically reauthorize the
HEA and other laws governing the Title IV Programs and annually determine the funding level for each Title IV Program, and may pass new
laws or revise existing laws at any time. Political and budgetary concerns significantly affect the Title IV Programs. If we cannot comply
with the provisions of the HEA, as they may be enforced or amended (including but not limited to the provisions of the OBBBA), or if the
cost of such compliance is excessive, or if funding is materially reduced, our revenues or profit margin could be materially adversely
affected. See Annual Report at Form 10-K “Education Regulations – Congressional Action.” On October 1, 2025, the federal
government entered a shutdown due to the failure of the U.S. Congress to pass regular appropriations bills or a continuing resolution.
As a result of the lapse in appropriations and the government shutdown, certain functions of ED, the VA, and other federal agencies have
been adversely impacted. Approximately 90% of ED employees have been furloughed during the shutdown. However, ED has stated that it