I 

112TH CONGRESS 

2D SESSION H. R. 4055 

To count revenues from military and veteran education programs toward 

the limit on Federal revenues that certain proprietary institutions of 

higher education are allowed to receive for purposes of section 487 

of the Higher Education Act of 1965, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 16, 2012 

Ms. SPEIER (for herself, Mr. JONES, Mr. CUMMINGS, Ms. DELAURO, Mr. 

QUIGLEY, Mr. COOPER, Mr. GRIJALVA, Mr. HONDA, Mr. POLIS, and Mr. 

ELLISON) introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committees on Armed Services and Veterans’ Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To count revenues from military and veteran education programs toward the limit on Federal revenues that certain 

proprietary institutions of higher education are allowed 

to receive for purposes of section 487 of the Higher 

Education Act of 1965, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Military and Veterans 

5 Education Protection Act’’. 


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1 SEC. 2. PROGRAM PARTICIPATION AGREEMENTS FOR PRO2 PRIETARY INSTITUTIONS OF HIGHER EDU3 CATION. 

4 Section 487 of the Higher Education Act of 1965 (20 

5 U.S.C. 1094) is amended— 

6 (1) in subsection (a)(24)— 

7 (A) by inserting ‘‘that receives funds pro8 vided under this title’’ before ‘‘, such institu9 tion’’; and 

10 (B) by striking ‘‘other than funds provided 

11 under this title, as calculated in accordance 

12 with subsection (d)(1)’’ and inserting ‘‘other 

13 than Federal educational assistance, as defined 

14 in subsection (d)(5) and calculated in accord15 ance with subsection (d)(1)’’; and 

16 (2) in subsection (d)— 

17 (A) in the subsection heading, by striking 

18 ‘‘NON-TITLE IV’’ and inserting ‘‘NON-FED19 ERAL EDUCATIONAL’’; 

20 (B) in paragraph (1)— 

21 (i) in the matter preceding subpara22 graph (A), by inserting ‘‘that receives 

23 funds provided under this title’’ before 

24 ‘‘shall’’; 

25 (ii) in subparagraph (B)— 


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1 (I) in clause (i), by striking ‘‘as2 sistance under this title’’ and insert3 ing ‘‘Federal educational assistance’’; 

4 and 

5 (II) in clause (ii)(I), by inserting 

6 ‘‘, or on a military base if the admin7 istering Secretary for a program of 

8 Federal educational assistance under 

9 clause (ii), (iii), or (iv) of paragraph 

10 (5)(B) has authorized such location’’ 

11 before the semicolon; 

12 (iii) in subparagraph (C), by striking 

13 ‘‘program under this title’’ and inserting 

14 ‘‘program of Federal educational assist15 ance’’; 

16 (iv) in subparagraph (E), by striking 

17 ‘‘funds received under this title’’ and in18 serting ‘‘Federal educational assistance’’; 

19 and 

20 (v) in subparagraph (F)— 

21 (I) in clause (iii), by striking 

22 ‘‘under this title’’ and inserting ‘‘of 

23 Federal educational assistance’’; and 


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1 (II) in clause (iv), by striking 

2 ‘‘under this title’’ and inserting ‘‘of 

3 Federal educational assistance’’; 

4 (C) in paragraph (2)— 

5 (i) by striking subparagraph (A) and 

6 inserting the following: 

7 ‘‘(A) INELIGIBILITY.— 

8 ‘‘(i) IN GENERAL.—Notwithstanding 

9 any other provision of law, a proprietary 

10 institution of higher education receiving 

11 funds provided under this title that fails to 

12 meet a requirement of subsection (a)(24) 

13 for two consecutive institutional fiscal 

14 years shall be ineligible to participate in or 

15 receive funds under any program of Fed16 eral educational assistance for a period of 

17 not less than two institutional fiscal years. 

18 ‘‘(ii) REGAINING ELIGIBILITY.—To re19 gain eligibility to participate in or receive 

20 funds under any program of Federal edu21 cational assistance after being ineligible 

22 pursuant to clause (i), a proprietary insti23 tution of higher education shall dem24 onstrate compliance with all eligibility and 

25 certification requirements for the program 


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1 for a minimum of two institutional fiscal 

2 years after the institutional fiscal year in 

3 which the institution became ineligible. In 

4 order to regain eligibility to participate in 

5 any program of Federal educational assist6 ance under this title, such compliance shall 

7 include meeting the requirements of sec8 tion 498 for such 2-year period. 

9 ‘‘(iii) NOTIFICATION OF INELIGI10 BILITY.—The Secretary of Education shall 

11 determine when a proprietary institution of 

12 higher education that receives funds under 

13 this title is ineligible under clause (i) and 

14 shall notify all other administering Secre15 taries of the determination. 

16 ‘‘(iv) ENFORCEMENT.—Each admin17 istering Secretary for a program of Fed18 eral educational assistance shall enforce 

19 the requirements of this subparagraph for 

20 the program concerned upon receiving no21 tification under clause (iii) of a proprietary 

22 institution of higher education’s ineligi23 bility.’’; and 

24 (ii) in subparagraph (B)— 


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1 (I) in the matter preceding clause 

2 (i)— 

3 (aa) by striking ‘‘In addi4 tion’’ and all that follows through 

5 ‘‘education fails’’ and inserting 

6 ‘‘Notwithstanding any other pro7 vision of law, in addition to such 

8 other means of enforcing the re9 quirements of a program of Fed10 eral educational assistance as 

11 may be available to the admin12 istering Secretary, if a propri13 etary institution of higher edu14 cation that receives funds pro15 vided under this title fails’’; and 

16 (bb) by striking ‘‘the pro17 grams authorized by this title’’ 

18 and inserting ‘‘all programs of 

19 Federal educational assistance’’; 

20 and 

21 (II) in clause (i), by inserting 

22 ‘‘with respect to a program of Federal 

23 educational assistance under this 

24 title,’’ before ‘‘on the expiration date’’; 


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1 (D) in paragraph (4)(A), by striking 

2 ‘‘sources under this title’’ and inserting ‘‘Fed3 eral educational assistance’’; and 

4 (E) by adding at the end the following: 

5 ‘‘(5) DEFINITIONS.—In this subsection: 

6 ‘‘(A) ADMINISTERING SECRETARY.—The 

7 term ‘administering Secretary’ means the Sec8 retary of Education, the Secretary of Defense, 

9 the Secretary of Veterans Affairs, the Secretary 

10 of Homeland Security, or the Secretary of a 

11 military department responsible for admin12 istering the Federal educational assistance con13 cerned. 

14 ‘‘(B) FEDERAL EDUCATIONAL ASSIST15 ANCE.—The term ‘Federal educational assist16 ance’ means funds provided under any of the 

17 following provisions of law: 

18 ‘‘(i) This title. 

19 ‘‘(ii) Chapter 30, 31, 32, 33, 34, or 

20 35 of title 38, United States Code. 

21 ‘‘(iii) Chapter 101, 105, 106A, 1606, 

22 1607, or 1608 of title 10, United States 

23 Code. 

24 ‘‘(iv) Section 1784a of title 10, United 

25 States Code.’’. 


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1 SEC. 3. DEPARTMENT OF DEFENSE AND DEPARTMENT OF 

2 VETERANS AFFAIRS ACTIONS ON INELIGI3 BILITY OF CERTAIN PROPRIETARY INSTITU4 TIONS OF HIGHER EDUCATION FOR PARTICI5 PATION IN PROGRAMS OF EDUCATIONAL AS6 SISTANCE. 

7 (a) DEPARTMENT OF DEFENSE.— 

8 (1) IN GENERAL.—Chapter 101 of title 10, 

9 United States Code, is amended by inserting after 

10 section 2008 the following new section: 

11 ‘‘§ 2008a. Ineligibility of certain proprietary institu12 tions of higher education for participa13 tion in Department of Defense programs 

14 of educational assistance 

15 ‘‘(a) IN GENERAL.—Upon receipt of a notice from 

16 the Secretary of Education under clause (iii) of section 

17 487(d)(2)(A) of the Higher Education Act of 1965 (20 

18 U.S.C. 1094(d)(2)(A)) that a proprietary institution of 

19 higher education is ineligible for participation in or receipt 

20 of funds under any program of Federal educational assist21 ance by reason of such section, the Secretary of Defense 

22 shall ensure that no educational assistance under the pro23 visions of law specified in subsection (b) is available or 

24 used for education at the institution for the period of insti25 tutional fiscal years covered by such notice. 


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1 ‘‘(b) COVERED ASSISTANCE.—The provisions of law 

2 specified in this subsection are the provisions of law on 

3 educational assistance through the Department of Defense 

4 as follows: 

5 ‘‘(1) This chapter. 

6 ‘‘(2) Chapters 105, 106A, 106A, 1606, 1607, 

7 and 1608 of this title. 

8 ‘‘(3) Section 1784a of this title. 

9 ‘‘(c) NOTICE ON INELIGIBILITY.—(1) The Secretary 

10 of Defense shall take appropriate actions to notify persons 

11 receiving or eligible for educational assistance under the 

12 provisions of law specified in subsection (b) of the applica13 tion of the limitations in section 487(d)(2) of the Higher 

14 Education Act of 1965 to particular proprietary institu15 tions of higher education. 

16 ‘‘(2) The actions taken under this subsection with re17 spect to a proprietary institution shall include publication, 

18 on the Internet website of the Department of Defense that 

19 provides information to persons described in paragraph 

20 (1), of the following: 

21 ‘‘(A) The name of the institution. 

22 ‘‘(B) The extent to which the institution failed 

23 to meet the requirements of section 487(a)(24) of 

24 the Higher Education Act of 1965. 


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1 ‘‘(C) The length of time the institution will be 

2 ineligible for participation in or receipt of funds 

3 under any program of Federal educational assistance 

4 by reason of section 487(d)(2)(A) of that Act. 

5 ‘‘(D) The nonavailability of educational assist6 ance through the Department for enrollment, at7 tendance, or pursuit of a program of education at 

8 the institution by reason of such ineligibility.’’. 

9 (2) CLERICAL AMENDMENT.—The table of sec10 tions at the beginning of chapter 101 of such title 

11 is amended by inserting after the item relating to 

12 section 2008 the following new item: 

‘‘2008a. Ineligibility of certain proprietary institutions of higher education for 

participation in Department of Defense programs of educational assistance.’’. 

13 (b) DEPARTMENT OF VETERANS AFFAIRS.— 

14 (1) IN GENERAL.—Subchapter II of chapter 36 

15 of title 38, United States Code, is amended by in16 serting after section 3681 the following new section: 

17 ‘‘§ 3681A. Ineligibility of certain proprietary institu18 tions of higher education for participa19 tion in Department of Veterans Affairs 

20 programs of educational assistance 

21 ‘‘(a) IN GENERAL.—Upon receipt of a notice from 

22 the Secretary of Education under clause (iii) of section 

23 487(d)(2)(A) of the Higher Education Act of 1965 (20 

24 U.S.C. 1094(d)(2)(A)) that a proprietary institution of 


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1 higher education is ineligible for participation in or receipt 

2 of funds under any program of Federal educational assist3 ance by reason of such section, the Secretary of Veterans 

4 Affairs shall ensure that no educational assistance under 

5 the provisions of law specified in subsection (b) is available 

6 or used for education at the institution for the period of 

7 institutional fiscal years covered by such notice. 

8 ‘‘(b) COVERED ASSISTANCE.—The provisions of law 

9 specified in this subsection are the provisions of law on 

10 educational assistance through the Department under 

11 chapters 30, 31, 32, 33, 34, and 35 of this title. 

12 ‘‘(c) NOTICE ON INELIGIBILITY.—(1) The Secretary 

13 of Veterans Affairs shall take appropriate actions to notify 

14 persons receiving or eligible for educational assistance 

15 under the provisions of law specified in subsection (b) of 

16 the application of the limitations in section 487(d)(2) of 

17 the Higher Education Act of 1965 to particular propri18 etary institutions of higher education. 

19 ‘‘(2) The actions taken under this subsection with re20 spect to a proprietary institution shall include publication, 

21 on the Internet website of the Department that provides 

22 information to persons described in paragraph (1), of the 

23 following: 

24 ‘‘(A) The name of the institution. 


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1 ‘‘(B) The extent to which the institution failed 

2 to meet the requirements of section 487(a)(24) of 

3 the Higher Education Act of 1965. 

4 ‘‘(C) The length of time the institution will be 

5 ineligible for participation in or receipt of funds 

6 under any program of Federal educational assistance 

7 by reason of section 487(d)(2)(A) of that Act. 

8 ‘‘(D) The nonavailability of educational assist9 ance through the Department for enrollment, at10 tendance, or pursuit of a program of education at 

11 the institution by reason of such ineligibility.’’. 

12 (2) CLERICAL AMENDMENT.—The table of sec13 tions at the beginning of chapter 36 of such title is 

14 amended by inserting after the item relating to sec15 tion 3681 the following new item: 

‘‘3681A. Ineligibility of certain proprietary institutions of higher education for 

participation in Department of Veterans Affairs programs of 

educational assistance.’’. 

Æ 


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