[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4054 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4054
To amend the Higher Education Act of 1965 to reform accreditation.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 20, 2025
Mr. Fine introduced the following bill; which was referred to the
Committee on Education and Workforce
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to reform accreditation.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Accreditation Choice and Innovation
Act''.
SEC. 2. ACCREDITING AGENCY RECOGNITION.
(a) Criteria Required.--Section 496(a) of the Higher Education Act
of 1965 (20 U.S.C. 1099b(a)) is amended--
(1) in the matter preceding paragraph (1), in the first
sentence, by striking ``or training'' and inserting ``or skills
development'';
(2) by amending paragraph (1) to read as follows:
``(1) the accrediting agency or association (other than an
accrediting agency or association described in paragraph
(2)(D)) shall be a State or national agency or association and
shall demonstrate the ability to operate as an institutional or
programmatic accrediting agency or association within the State
or nationally, as appropriate;'';
(3) in paragraph (2)--
(A) in subparagraph (A)--
(i) in clause (i), by striking
``principal''; and
(ii) in clause (ii), by striking ``its
principal'' and inserting ``a''; and
(B) in subparagraph (B), by striking ``or'' at the
end;
(C) in subparagraph (C), by inserting ``or'' at the
end; and
(D) by adding at the end the following:
``(D) is an entity (such as an industry-specific
quality assurance entity) that has been--
``(i) determined by a State to be a
reliable authority as to the quality of
education or skills development offered in such
State for the purposes of this Act; and
``(ii) designated (in accordance with
subsection (b)(1)) by such State as an
accrediting agency or association with respect
to such State for such purposes;'';
(4) in paragraph (3)--
(A) by amending subparagraph (A) to read as
follows:
``(A) subparagraph (A), (C), or (D) of paragraph
(2), then such agency or association is--
``(i) distinctly incorporated or organized;
and
``(ii) both administratively and
financially separate from, and independent of,
any related, associated, or affiliated trade
association or membership organization, by
ensuring that--
``(I) the members of the board or
governing body of the accrediting
agency or association are not elected
or selected by the board or chief
executive officer (or the
representative of such board or
officer) of any related, associated, or
affiliated trade association or
membership organization;
``(II) among the membership of the
board or governing body of the
accrediting agency or association--
``(aa) if such board or
body is comprised of 5 or fewer
members, there is a minimum of
one member who is not also a
member of any related,
associated, or affiliated trade
association or membership
organization (referred to in
this subclause as a `public
member') and who represents
business; and
``(bb) if such board or
body is comprised of 6 or more
members, there is a minimum of
2 public members (at least one
of whom represents business)
for every 6 members;
``(III) guidelines are established
for such members to avoid conflicts of
interest, including specific guidelines
to ensure that no such member is an
employee of any institution accredited
by the agency or association or has a
financial interest in any such
institution;
``(IV) dues to the accrediting
agency or association are paid
separately from any dues paid to any
related, associated, or affiliated
trade association or membership
organization; and
``(V) the budget of the accrediting
agency or association is developed,
determined, and maintained by the
accrediting agency or association
without any review by, consultation
with, or approval by any related,
associated, or affiliated trade
association or membership
organization;'';
(B) by striking ``or'' at the end of subparagraph
(B); and
(C) by striking subparagraph (C);
(5) in paragraph (4)--
(A) in subparagraph (A)--
(i) by inserting ``(in the manner described
in subparagraph (B))'' after ``religious
missions''; and
(ii) by striking ``and'' at the end; and
(B) by striking subparagraph (B) and inserting the
following:
``(B) such accrediting agency or association
consistently applies and enforces standards that
respect the stated religious mission of an institution
of higher education by--
``(i) basing decisions regarding
accreditation and preaccreditation on the
standards of accreditation of such agency or
association; and
``(ii) not using as a negative factor the
institution's religious mission based policies,
decisions, and practices in the areas covered
by subparagraphs (B), (C), (D), (E), and (F) of
paragraph (5), except that the agency or
association may require that the institution's
or a program of study's curricula include all
core components required by the agency or
association that are not inconsistent with the
institution's religious mission; and
``(C) such agency or association demonstrates the
ability to review, evaluate, and assess the quality of
any instruction delivery model or method such agency or
association has or seeks to include within its scope of
recognition, without giving preference to or
differentially treating (such as through separate
standards, procedures, or policies) a particular
instruction delivery model or method offered by an
institution or program, except that in a case in which
an instruction delivery model allows for the separation
of the student from the instructor, the agency or
association requires the institution to have processes
through which the institution establishes that the
student who registers in a course or program with such
an instruction delivery model is the same student who
participates in the course or program of study
(including, to the extent practicable, the testing or
other assessments required under the course or program
of study), completes the course or program of study,
and receives the academic credit for such course or
program of study;''; and
(6) in paragraph (5)--
(A) by amending subparagraph (A) to read as
follows:
``(A) success with respect to student achievement
outcomes in relation to the institution's mission and
to the programs the institution offers, or the mission
of a specific degree, certificate, or credential
program, which may include different standards for
different institutions or programs of study, and which
shall include--
``(i) standards for consideration of
student success outcomes measures, including--
``(I) a comparison of the total
price charged to students for a program
of study to the value-added earnings of
students who completed such program
(such as a comparison, with respect to
students who completed the program in
the same award year, of the median
total price charged to such students to
the median value-added earnings of such
students);
``(II) completion rates;
``(III) retention rates; and
``(IV) loan repayment rates);
``(ii) standards for consideration of
learning outcomes measures (such as competency
attainment and licensing examination passage
rates); and
``(iii) standards for consideration of
labor market outcomes measures (such as
employability measures, earnings gains, or
other similar approaches); and''; and
(B) by amending subparagraph (I) to read as
follows:
``(I) record of student complaints received by, or
available to, the agency or association, and a process
for resolving complaints received by the institution;
and''; and
(C) in the matter following subparagraph (J), by
striking ``subparagraphs (A), (H), and (J)'' and
inserting ``subparagraph ((J)''.
(b) Secretarial Requirements and Authority.--Subsection (b) of
section 496 of the Higher Education Act of 1965 (20 U.S.C. 1099b) is
amended to read as follows:
``(b) Secretarial Requirements and Authority.--
``(1) State designated accrediting agency.--
``(A) Approval of state plans.--The Secretary
shall--
``(i) approve a State's designation of an
entity as an accrediting agency or association
for the purposes described in subsection
(a)(2)(D) for a 5-year period, beginning not
later than 30 days after receipt of the plan
from such State with respect to such
designation, if such plan includes each of the
elements listed in subparagraph (B);
``(ii) submit to the State and the
authorizing committees, and make publicly
available the Secretary's response to the State
with respect to such plan, including whether
the plan includes each of the elements listed
in subparagraph (B); and
``(iii) if a State's designation of an
entity as an accrediting agency or association
is approved pursuant to this subparagraph,
publish in the Federal Register with a 30-day
public comment period--
``(I) the plan submitted by such
State with respect to such designation;
and
``(II) the Secretary's response to
such plan.
``(B) Required plan elements.--The required
elements of a State plan submitted under subparagraph
(A) with respect to the designation of an entity as an
accrediting agency or association are as follows:
``(i) A description of the process the
State used to select the entity for such
designation.
``(ii) A justification of the State's
decision to select the entity for such
designation.
``(iii) A description of any requirements
(in addition to the requirements of this
section), that the State required the entity to
comply with as a condition of receiving and
maintaining such designation, including a
requirement for the entity to use, to the
extent practicable during such designation, the
common terminology developed pursuant to
paragraph (3).
``(iv) A copy of the standards, policies,
and procedures of the entity that the State
considered in selecting the entity for such
designation.
``(v) The State's assessment of how the
standards for accreditation of the entity will
be effective in meeting the requirements of
subsection (a)(5).
``(vi) Evidence that at least one other
State has determined that such entity is a
reliable authority as to the quality of
education offered for the purposes of this Act.
``(vii) An assurance that the State will
comply with the monitoring requirements
described in subparagraph (C).
``(C) State monitoring.--
``(i) In general.--A State that has
designated an entity as an accrediting agency
or association for the purposes described in
subsection (a)(2)(D) shall submit to the
Secretary, and to the State authorizing entity,
as appropriate, a report at the end of the 5-
year period for which the entity has received
such designation, which shall include, with
respect to each program of study or institution
that has been accredited by such entity during
such period, and disaggregated by type of
credential, certification, or degree--
``(I) the number and percentage of
students who have successfully obtained
a postsecondary education credential,
certification, or degree offered by
such program or institution;
``(II) the number and percentage of
students who were enrolled and did not
successfully obtain such a credential,
certification, or degree within 150
percent of the program length; and
``(III) the results of the State's
assessment described in subparagraph
(B)(v).
``(ii) Counting transfer students.--For
purposes of clause (i)(I), a student shall be
counted as obtaining a credential,
certification, or degree offered by a program
of study or institution that was accredited by
the entity during the period for which the
report under this subparagraph is being
submitted, if the student obtains such
credential, certification, or degree after
transferring to another institution during such
period.
``(2) Authority to provide an accelerated path to
recognition.--With respect to a prospective accrediting agency
or association that submits to the Secretary an application for
initial recognition under this Act, the Secretary may provide
such recognition to such agency or association within 2 years
after receipt of such application, if such application--
``(A) demonstrates that the agency or association--
``(i) has at least one year of experience
in making accreditation or preaccreditation
decisions; and
``(ii) has policies in place that meet all
the criteria under subsection (a) for
recognition covering the range of the specific
degrees, certificates, institutions, and
programs of study for which the agency or
association seeks such recognition; and
``(B) provides an assurance that if the agency or
association receives such recognition, the agency or
association will submit to the Secretary monitoring
reports regarding accreditation or preaccreditation
decisions, as appropriate.
``(3) Development of common terminology.--Not later than 18
months after the date of enactment of the Accreditation Choice
and Innovation Act, the Secretary shall--
``(A) convene a panel of experts to develop common
terminology for accrediting agencies or associations to
use in making accrediting decisions with respect to
programs of study and institutions, such as a common
understanding of monitoring, warning, show cause, and
other relevant statuses, as appropriate; and
``(B) publish the recommendations for such common
terminology in the Federal Register with a 60-day
public comment period.''.
(c) Operating Procedures Required.--
(1) On-site inspections and reviews.--Paragraph (1) of
section 496(c) (20 U.S.C. 1099b(c)) is amended--
(A) by inserting ``(which may vary based on
institutional risk consistent with policies promulgated
by the agency or association to determine such risk and
interval frequency as authorized under subsection
(p))'' after ``intervals''; and
(B) by striking ``, including those regarding
distance education''.
(2) Mechanism to identify institutions and programs
experiencing difficulties.--Section 496(c) (20 U.S.C. 1099b(c))
is further amended--
(A) by redesignating paragraphs (2) through (9) as
paragraphs (3) through (10), respectively; and
(B) by inserting after paragraph (1) the following:
``(2) develops a policy process to identify any institution
or program of study accredited by the agency or association
that is not meeting the standards for accreditation of the
agency or association, with a focus on the standards assessing
an institution's or program of study's student success outcomes
described in subsection (a)(5)(A)(i), which shall include--
``(A) not less than annually, evaluating the extent
to which such an identified institution or program of
study continues to be in compliance with such standards
or other indicators; and
``(B) as appropriate, requiring the institution or
program of study to submit a plan, on an annual basis,
to the accrediting agency or association to--
``(i) address and remedy performance issues
with respect to such compliance; and
``(ii) ensure that such plan is
successfully implemented;''.
(3) Procedures with respect to substantive changes.--
Paragraph (5) of section 496(c) (20 U.S.C. 1099b(c)) (as
redesignated by paragraph (2)(A)) is amended to read as
follows:
``(5) establishes and applies or maintains policies to
ensure that any substantive change of an institution described
in subparagraph (B) after the agency or association has granted
the institution accreditation or preaccreditation status does
not adversely affect the capacity of the institution to
continue to meet the agency's or association's standards for
such accreditation or preaccreditation status, which shall
include policies that--
``(A) require the institution to obtain the
agency's or association's approval of the substantive
change before the agency or association includes the
change in the scope of the institution's accreditation
or preaccreditation status; and
``(B) define substantive change to include--
``(i) any change in the established mission
or objectives of the institution;
``(ii) any change in the legal status, form
of control, or ownership of the institution,
including the acquisition or addition of any
other institution or new location where more
than 50 percent of a program of study is
offered;
``(iii) changing the credential level
offered by a program of study that was
previously accredited by the agency or
association when the program of study offered a
different credential level; and
``(iv) the entering into a contract under
which another institution or an organization
not eligible to participate in programs under
this title offers more than 25 percent but less
than 50 percent of the instruction of a program
of study of the institution with such
accreditation or preaccreditation status;''.
(4) Public availability.--Section 496(c) (20 U.S.C.
1099b(c)) is further amended--
(A) in paragraph (8) (as redesignated by paragraph
(2)(A))--
(i) in the matter preceding subparagraph
(A), by inserting ``, on the agency's or
association's website,'' after ``public''; and
(ii) in subparagraph (C), by inserting
before the semicolon at the end the following:
``, and a summary of why such action was taken
or such placement was made'';
(B) in paragraph (9) (as so redesignated), by
striking ``and'' at the end;
(C) in paragraph (10)(B) (as so redesignated), by
striking the period at the end and inserting the
following: ``, including an assurance that the
institution does not deny a transfer of credit based
solely on the accreditation of the institution at which
the credit was earned;''; and
(D) by adding at the end the following:
``(11) such agency or association shall make publicly
available, on the agency or association's website, a list of
the institutions of higher education or program of study
accredited by such agency or association, which includes, with
respect to each such institution or program of study--
``(A) the year accreditation was first granted;
``(B) the most recent date that accreditation or
reaccreditation was granted; and
``(C) the anticipated date of the institution's
next evaluation for reaccreditation;''.
(5) Prohibition on assessment of elected or appointed
officials.--Section 496(c) (20 U.S.C. 1099b(c)) is further
amended by adding at the end the following:
``(12) confirms that the standards for accreditation of the
agency or association do not assess the roles (including
actions or statements) of elected and appointed State and
Federal officials and legislative bodies; and''.
(6) Prohibition of practices that result in credential
inflation.--Section 496(c) (20 U.S.C. 1099b(c)) is further
amended by adding at the end the following:
``(13) confirms that an institution's or program of study's
compliance with a standard for accreditation of the agency or
association does not require the institution or program to take
any action (such as developing a new program of study) that
would result in a violation of any other such standard
(including the standards for consideration of student success
outcomes described in subsection (a)(5)(A)(i) that relate to
comparing the total price charged to students for a program of
study to the value-added earnings of students who completed
such program).''.
(d) Limitation on Scope of Criteria.--Section 496 (20 U.S.C. 1099b)
is further amended by amending subsection (g) to read as follows:
``(g) Limitation on Scope of Criteria.--
``(1) In general.--The Secretary shall not establish
criteria for accrediting agencies or associations that are not
required by this section.
``(2) Institutional eligibility.--An institution of higher
education shall meet the accreditation requirements for
certification as an institution of higher education under
section 102 and subpart 3 of this part, if the institution is
in compliance with the standards of its accrediting agency or
association that assess the institution in accordance with
subsection (a)(5), regardless of any additional standards
adopted by the agency or association for purposes unrelated to
participation in programs under this title.''.
(e) Change of Accrediting Agency.--Section 496 (20 U.S.C. 1099b) is
further amended by amending subsection (h) to read as follows:
``(h) Change of Accrediting Agency or Association.--
``(1) In general.--With respect to an institution or
program of study that is not subject to a covered action and
that seeks to change its accrediting agency or association for
a reason not related to any such covered action (such as
compliance with State law)--
``(A) the Secretary shall recognize the
accreditation of such institution or program of study
while the institution or program is in the process of
changing its accrediting agency or association as long
as, not later than 10 days before the start of such
process, the institution or program of study provides
written notification to the Secretary of such process;
and
``(B) such institution or program may make such a
change without the approval of the Secretary as long
as, not later than 10 days after the accreditation
decision by the new accrediting agency or association,
the institution or program and such new accrediting
agency or association, provide written notification to
the Secretary of the effective date of the
accreditation by such agency or association of such
institution or program.
``(2) Covered action defined.--For purposes of this
subsection, the term `covered action' means one or more of the
following, when used with respect to an institution or program
of study:
``(A) A pending or final action brought by a State
agency to suspend, revoke, withdraw, or terminate the
institution's legal authority to provide postsecondary
education in the State.
``(B) A decision by a recognized accrediting agency
or association to deny accreditation or
preaccreditation to the institution or program of
study.
``(C) A pending or final action brought by a
recognized accrediting agency or association to
suspend, revoke, withdraw, or terminate the
accreditation or preaccreditation of the institution or
program of study.
``(D) Probation or an equivalent status imposed on
the institution or program of study by a recognized
accrediting agency or association.
``(E) The institution is in the process of a
substantive change (as described in subsection
(c)(5)).''.
(f) Dual Accreditation Rule.--Section 496 (20 U.S.C. 1099b) is
further amended by amending subsection (i) to read as follows:
``(i) Dual Accreditation Rule.--
``(1) Recognition by secretary.--The Secretary shall
recognize the accreditation of any otherwise eligible
institution of higher education if the institution of higher
education is accredited, as an institution, by more than one
accrediting agency or association.
``(2) Designation by institution.--If the institution is
accredited, as an institution, by more than one accrediting
agency or association, the institution--
``(A) shall designate which agency's or
association's accreditation shall be utilized in
determining the institution's eligibility for
participation in programs under this Act; and
``(B) may change this designation at the end of the
institution's period of recognition.''.
(g) Religious Institutions Rule.--Section 496 (20 U.S.C. 1099b) is
further amended by amending subsection (k) to read as follows:
``(k) Religious Institution Rule.--
``(1) In general.--Notwithstanding subsection (j), the
Secretary shall allow an institution that has had its
accreditation withdrawn, revoked, or otherwise terminated, or
has voluntarily withdrawn from an accreditation agency, to
remain certified as an institution of higher education under
section 102 and subpart 3 of this part for a period sufficient
to allow such institution to obtain alternative accreditation,
if the Secretary determines, in accordance with paragraph (2),
that such withdrawal, revocation, or termination--
``(A) is related to the religious mission or
affiliation of the institution; and
``(B) is not related to the accreditation criteria
provided for in this section.
``(2) Administrative complaint for failure to respect
religious mission.--
``(A) In general.--
``(i) Institution.--If an institution of
higher education believes that an adverse
action of an accrediting agency or association
fails to respect the institution's religious
mission in violation of subsection (a)(4)(B),
the institution--
``(I) may file a complaint with the
Secretary to review the adverse action
of the agency or association; and
``(II) prior to filing such
complaint, shall notify the Secretary
and the agency or association of an
intent to file such complaint not later
than 30 days after--
``(aa) receiving the
adverse action from the agency
or association; or
``(bb) determining that
discussions with or the
processes of the agency or
association to remedy the
failure to respect the
religious mission of the
institution will fail to result
in the withdrawal of the
adverse action by the agency or
association.
``(ii) Accrediting agency or association.--
Upon notification of an intent to file a
complaint and through the duration of the
complaint process under this paragraph, the
Secretary and the accrediting agency or
association shall treat the accreditation
status of the institution of higher education
as if the adverse action for which the
institution is filing the complaint had not
been taken.
``(B) Complaint.--Not later than 45 days after
providing notice of the intent to file a complaint, the
institution shall file the complaint with the Secretary
(and provide a copy to the accrediting agency or
association), which shall include--
``(i) a description of the adverse action;
``(ii) how the adverse action fails to
respect the institution's religious mission in
violation of subsection (a)(4)(B); and
``(iii) any other information the
institution determines relevant to the
complaint.
``(C) Response.--
``(i) In general.--The accrediting agency
or association shall have 30 days from the date
the complaint is filed with the Secretary to
file with the Secretary (and provide a copy to
the institution) a response to the complaint,
which response shall include--
``(I) how the adverse action is
based on a violation of the agency or
association's standards for
accreditation; and
``(II) how the adverse action does
not fail to respect the religious
mission of the institution and is in
compliance with subsection (a)(4)(B).
``(ii) Burden of proof.--
``(I) In general.--The accrediting
agency or association shall bear the
burden of proving that the agency or
association has not taken the adverse
action as a result of the institution's
religious mission, and that the action
does not fail to respect the
institution's religious mission in
violation of subsection (a)(4)(B), by
showing that the adverse action does
not impact the aspect of the religious
mission claimed to be affected in the
complaint.
``(II) Insufficient proof.--Any
evidence that the adverse action
results from the application of a
neutral and generally applicable rule
shall be insufficient to prove that the
action does not fail to respect an
institution's religious mission.
``(D) Additional institution response.--
``(i) In general.--The institution shall
have a 30-day period beginning on the date on
which the agency or association's response is
filed with the Secretary to file with the
Secretary (and provide a copy to the agency or
association) a response to any issues raised in
the response of the agency or association.
``(ii) Waiver of right to respond.--An
institution that does not file such a response
during the 30-day period described in clause
(i) shall be deemed to have waived the
institution's right to respond to the response
of the agency or association.
``(E) Secretarial action.--
``(i) In general.--During the 30-day period
described in subparagraph (D)(i)--
``(I) the Secretary shall review
the materials to determine if the
accrediting agency or association has
met its burden of proof under
subparagraph (C)(ii)(I); or
``(II) in a case in which the
Secretary fails to conduct such
review--
``(aa) the Secretary shall
be deemed as determining that
the adverse action fails to
respect the religious mission
of the institution; and
``(bb) the accrediting
agency or association shall be
required to reverse the action
immediately and take no further
action with respect to such
adverse action.
``(ii) Review of complaint.--In reviewing
the complaint under clause (i)(I)--
``(I) the Secretary shall consider
the institution to be correct in the
assertion that the adverse action fails
to respect the institution's religious
mission and shall apply the burden of
proof described in subparagraph
(C)(ii)(I) with respect to the
accrediting agency or association; and
``(II) if the Secretary determines
that the accrediting agency or
association fails to meet such burden
of proof--
``(aa) the Secretary shall
notify the institution and the
agency or association that the
agency or association is not in
compliance with subsection
(a)(4)(B), and that such agency
or association shall carry out
the requirements of item (bb)
to be in compliance with
subsection (a)(4)(B); and
``(bb) the agency or
association shall reverse the
adverse action immediately and
take no further action with
respect to such adverse action.
``(iii) Final departmental action.--The
Secretary's determination under this
subparagraph shall be the final action of the
Department on the complaint.
``(F) Rule of construction.--Nothing in this
paragraph shall prohibit--
``(i) an accrediting agency or association
from taking an adverse action against an
institution of higher education for a failure
to comply with the agency or association's
standards of accreditation as long as such
standards are in compliance with subsection
(a)(4)(B) and any other applicable requirements
of this section; or
``(ii) an institution of higher education
from exercising any other rights to address
concerns with respect to an accrediting agency
or association or the accreditation process of
an accrediting agency or association.
``(G) Regulations and guidance.--
``(i) In general.--The Secretary may only
issue regulations and guidance under this
paragraph that explain or clarify the process
for providing notice of an intent to file a
complaint or for filing a complaint under this
paragraph.
``(ii) Clarification.--The Secretary may
not issue regulations, guidance, or otherwise
determine or suggest, when discussions to
remedy the failure by an accrediting agency or
association to respect the religious mission of
an institution of higher education referred to
in subparagraph (A)(i)(II)(bb) have failed or
will fail.''.
(h) Independent Evaluation.--Section 496(n)(3) (20 U.S.C.
1099b(n)(3)) is amended by striking the last sentence.
(i) Regulations.--Section 496(o) (20 U.S.C. 1099b(o)) is amended by
inserting before the period at the end the following: ``, or with
respect to the policies and procedures of an accreditation agency or
association described in paragraph (2) or (5) of subsection (c) or how
the agency or association carries out such policies and procedures''.
(j) Risk-Based Review Processes or Procedures; Waiver.--Section 496
(20 U.S.C. 1099b) is further amended--
(1) by striking subsections (p) and (q); and
(2) by adding at the end the following:
``(p) Risk-Based or Differentiated Review Processes or
Procedures.--
``(1) In general.--Notwithstanding any other provision of
law (including subsection (a)(4)(A)), an accrediting agency or
association shall establish risk-based processes or procedures
for assessing compliance with the accrediting agency or
association's standards (including policies related to
substantive change and award of accreditation statuses) under
which the agency or association--
``(A) creates a system for understanding the
performance of each institution and program of study
being reviewed by such agency or association in
comparison with the performance of other similarly
situated institutions or programs of study (which may
include the past performance of the institution or
program with respect to meeting the accrediting agency
or association's standards, including the standards
relating to the student success outcomes described in
subsection (a)(5)(A)(i));
``(B) with respect to each institution and program
of study designated as high-risk, as determined using
the accrediting agency or association's system
described in subparagraph (A), requires the institution
and program of study to submit the annual plans
described in subsection (c)(2)(B) to the agency or
association that address the performance issues of such
institution or program of study that resulted in such
designation;
``(C) with respect to each institution and program
of study whose performance meets or exceeds the
standards of the accrediting agency or association, as
determined using the system described in subparagraph
(A), reduces any compliance requirements with respect
to such standards that are not assessing the
institution or program of study in accordance with
subsection (a)(5) (such as on-site inspections); and
``(D) may require an institution or program of
study that has declining performance (such as an
institution or program of study with a high-risk
designation described in subparagraph (B)), which has
not improved as required by the annual plan submitted
under subsection (c)(2)(B), to take actions to avoid or
minimize the risks that may lead to revocation of
accreditation (such as limiting certain program of
study enrollment or recommending to the Secretary to
limit funds under this title for such an institution or
program).
``(2) Prohibition.--Any risk-based review process or
procedure established pursuant to this subsection shall not
discriminate against, or otherwise preclude, institutions of
higher education based on institutional sector or category,
including an institution of higher education's tax status.''.
(k) Definitions.--Section 496 (20 U.S.C. 1099b) is further amended
by adding at the end the following:
``(q) Definitions.--For purposes of this Act:
``(1) Program length.--The term `program length' means the
minimum amount of time in weeks, months, or years that is
specified in the catalog, marketing materials, or other
official publications of an institution of higher education for
a full-time student to complete the requirements for a specific
program of study.
``(2) Program of study.--
``(A) In general.--The term `program of study'
means an eligible program at an institution of higher
education that is classified by a combination of--
``(i) one or more CIP codes; and
``(ii) one credential level, determined by
the credential awarded upon completion of the
program.
``(B) CIP code.--The term `CIP code' means the six-
digit taxonomic identification code assigned by an
institution of higher education to a specific program
of study at the institution, determined by the
institution of higher education in accordance with the
Classification of Instructional Programs published by
the National Center for Education Statistics.
``(C) Credential level.--
``(i) In general.--The term `credential
level' means the level of the degree or other
credential awarded by an institution of higher
education to students who complete a program of
study of the institution. Each degree or other
credential awarded by an institution shall be
categorized by the institution as either
undergraduate credential level or graduate
credential level.
``(ii) Undergraduate credential.--When used
with respect to a credential or credential
level, the term `undergraduate credential'
includes credentials such as an undergraduate
certificate, an associate degree, a bachelor's
degree, and a post-baccalaureate certificate
(including the coursework specified in
paragraphs (3)(B) and (4)(B) of section
484(b)).
``(iii) Graduate credential.--When used
with respect to a credential or credential
level, the term `graduate credential' includes
credentials such as a master's degree, a
doctoral degree, a professional degree, and a
postgraduate certificate.
``(3) Religious mission.--The term `religious mission'--
``(A) means a published institutional mission that
is approved by the governing body of an institution of
higher education and that includes, refers to, or is
predicated upon religious tenets, beliefs, or
teachings; and
``(B) may be reflected in any of the institution's
policies, decisions, or practices related to such
tenets, beliefs, or teachings (including any policies
or decisions concerning housing, employment,
curriculum, self-governance, or student admission,
continuing enrollment, or graduation).
``(4) Total price.--With respect to a student who received
Federal financial assistance under this title and who completes
a program of study, the term `total price' means the total
amount, before Federal financial assistance under this title
was applied, a student was required to pay to complete the
program of study. A student's total price shall be calculated
by the Secretary as the difference between--
``(A) the total amount of tuition and fees that
were charged to such student before the application of
any Federal financial assistance provided under this
title; minus
``(B) the total amount of grants and scholarships
described in section 480(i) awarded to such student
from non-Federal sources for such program of study.
``(5) Value-added earnings.--
``(A) In general.--With respect to a student who
received Federal financial aid under this title and who
completed a program of study offered by an institution
of higher education, the term `value-added earnings'
means--
``(i) the annual earnings of such student
measured during the applicable earnings
measurement period for such program (as
determined under subparagraph (C)); minus
``(ii) in the case of a student who
completed a program of study that awards--
``(I) an undergraduate credential,
150 percent of the poverty line
applicable to a single individual as
determined under section 673(2) of the
Community Services Block Grant Act (42
U.S.C. 9902(2)) for such year; or
``(II) a graduate credential, 300
percent of the poverty line applicable
to a single individual as determined
under section 673(2) of the Community
Services Block Grant Act (42 U.S.C.
9902(2)) for such year.
``(B) Geographic adjustment.--
``(i) In general.--Except as provided in
clause (ii), the Secretary shall use the
geographic location of the institution at which
a student completed a program of study to
adjust the value-added earnings of the student
calculated under subparagraph (A) by dividing--
``(I) the difference between
clauses (i) and (ii) of such
subparagraph; by
``(II) the most recent regional
price parity index of the Bureau of
Economics Analysis for the State or, as
applicable, metropolitan area in which
such institution is located.
``(ii) Exception.--The value-added earnings
of a student calculated under subparagraph (A)
shall not be adjusted based on geographic
location in accordance with clause (i) if such
student attended principally through distance
education.
``(C) Earnings measurement period.--
``(i) In general.--For the purpose of
calculating the value-added earnings of a
student, except as provided in clause (ii), the
annual earnings of a student shall be
measured--
``(I) in the case of a program of
study that awards an undergraduate
certificate, post baccalaureate
certificate, or graduate certificate, 1
year after the student completes such
program;
``(II) in the case of a program of
study that awards an associate's degree
or master's degree, 2 years after the
student completes such program; and
``(III) in the case of a program of
study that awards a bachelor's degree,
doctoral degree, or professional
degree, 4 years after the student
completes such program.
``(ii) Exception.--The Secretary may, as
the Secretary determines appropriate based on
the characteristics of a program of study,
extend an earnings measurement period described
in clause (i) for a program of study that--
``(I) requires completion of an
additional educational program (such as
a residency or fellowship) after
completion of the program of study in
order to obtain licensure or board
certification associated with the
credential awarded for such program of
study; and
``(II) when combined with the
program length of such additional
educational program for licensure or
board certification, has a total
program length that exceeds the
relevant earnings measurement period
prescribed for such program of study
under clause (i),
except that in no case shall the annual
earnings of a student be measured more than 1
year after the student completes such
additional educational program.''.
SEC. 3. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND
INTEGRITY (NACIQI).
Section 114 (20 U.S.C. 1011c) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by redesignating
subparagraphs (A) through (C) as clauses (i) through
(iii), respectively, and adjusting the margins
accordingly;
(B) by striking ``Individuals'' and inserting the
following:
``(A) In general.--Individuals'';
(C) in clause (ii), as so redesignated, by striking
``and training'' and inserting ``and skills
development'';
(D) by adding at the end of paragraph (2) the
following:
``(B) Disqualification.--No individual may be
appointed as a member of the Committee if such
individual has a significant conflict of interest, such
as being a current regulator (such as a State
authorizer), that would require the individual to
frequently be recused from serving as a member of the
Committee.''; and
(E) in paragraph (3)--
(i) by striking ``Except as provided in
paragraph (5), the term'' and inserting ``The
term''; and
(ii) by adding at the end the following:
``If, during a term of office of a member of
the Committee, the member has a changed
circumstance that results in such member having
a significant conflict of interest (as
described in paragraph (2)(B)), such member
shall vacate such office and a new member shall
be appointed to serve the remainder of such
term in accordance with this paragraph.''
(2) in subsection (c)--
(A) in paragraph (4), by adding ``and'' at the end;
(B) in paragraph (5), by striking ``; and'' at the
end and inserting a period; and
(C) by striking paragraph (6);
(3) in subsection (d)(2), by inserting at the end the
following: ``The name of any member of the Committee who has
been recused with respect to an agenda item of the meeting
shall be included in such agenda.'';
(4) in subsection (e)(2)(D), by striking ``, including any
additional functions established by the Secretary through
regulation''; and
(5) in subsection (f), by striking ``September 30, 2021''
and inserting ``September 30, 2028''.
<all>