Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 160

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 160
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 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 will
continue to disburse federal student loans and Pell Grants and that the FAFSA will continue to be processed.

The federal government shutdown also has impacted
other agencies from which our students receive funding. See Annual Report at Form 10-K “Education Regulations – Other Financial
Assistance Programs.” The U.S. Department of Veterans Affairs (“VA”) has announced that the Veterans Benefits Administration
will continue to process education benefit claims and pay out veterans’ education benefits during the shutdown.

On
November 12, 2025, Congress passed a bill subsequently signed by the President ending the federal government shutdown. We cannot
predict the duration of any future federal government shutdown, nor can we predict the extent to which such shutdowns could disrupt funding
to us and our students from the Title IV programs and other federal financial assistance programs or disrupt services from ED or other
federal agencies upon which our institutions and our students depend.

Financial Value Transparency and Gainful Employment
Regulations

On May 19,