Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 356

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 356
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 also that could eliminate or modify certain rules that are less favorable to schools like ours. However, the process
of Congressional passage of new legislation is ongoing, is subject to further negotiation and amendment, and is further subject to Congressional
approval. Therefore, the timing and outcome of this process and the scope of any additional legislation that might be enacted cannot
be predicted with any certainty at this time. We are continuing to monitor the process.

Executive
action could affect access to Title IV funding which could reduce our enrollment and revenue and increase costs of operations.

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
our Quarterly Report on Form 10-Q, filed with the SEC on February 13, 2025, for the section titled “Regulatory Updates” for
additional information. 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 “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 require ED approval. See “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 all of its functions to one or more agencies, or whether such a proposal would disrupt
or change the availability of Title IV funds to us and our students or change the