Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 21

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 21
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 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. 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 the Company’s 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 rules applicable to us and our schools to continue
receiving Title IV funds. We also cannot predict the success of any litigation challenging any efforts to close or restructure ED. Any
executive or legislative action impacting ED, the availability of Title IV funds, or the rules applicable to us could have a material
adverse effect on us and our institutions.

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