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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7495 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 7495

  To amend the Higher Education Act of 1965 to create a demonstration 
project for competency-based education and clarify eligible competency-
                       based education programs.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           February 29, 2024

Mr. Grothman (for himself, Ms. Pettersen, and Mr. Owens) introduced the 
 following bill; which was referred to the Committee on Education and 
                             the Workforce

_______________________________________________________________________

                                 A BILL

 
  To amend the Higher Education Act of 1965 to create a demonstration 
project for competency-based education and clarify eligible competency-
                       based education programs.

    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 ``Empowering Learners through 
Competency-Based Education Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Competency-based education, in which the measurement of 
        learning in place of the measurement of time is a 
        distinguishing feature, is an efficient, effective, and 
        rigorous form of postsecondary education, the widespread 
        adoption of which is necessary and desirable as a means of 
        improving learning outcomes, student success, and reducing the 
        cost of higher education in the United States, and it is 
        therefore necessary to clarify the definition of and 
        requirements for competency-based education so as to facilitate 
        its application and availability.
            (2) Reputable and responsible institutions of higher 
        education have for many years developed, offered, and 
        demonstrated the academic rigor, effectiveness, and outcomes of 
        competency-based education.
            (3) An increasing number of institutions of higher 
        education now seek to develop and offer competency-based 
        education.
            (4) The collection and dissemination of complete and 
        reliable information respecting the impact of competency-based 
        education on the quality of learning, employability and 
        employer acceptance, retention, time to completion, graduation 
        rates, and cost will significantly enhance the adoption of 
        competency-based education as an essential component of 
        postsecondary education in the United States.
            (5) It is in the public interest to improve the efficiency 
        and value of postsecondary education and therefore support the 
        offering of competency-based education.

SEC. 3. GENERAL DEFINITIONS.

    Section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003) is 
amended by adding at the end the following:
            ``(25) Competency; competency-based education program.--
                    ``(A) Competency.--The term `competency' means the 
                knowledge, skill, abilities and behaviors needed for a 
                particular field of study or work-based context.
                    ``(B) Competency-based education program.--The term 
                `competency-based education program' means a 
                postsecondary program, including one defined under 
                section 481(b)(4), that provides competency-based 
                education for which the accrediting agency or 
                association of the institution of higher education 
                offering such program has approved the program in 
                accordance with such standards--
                            ``(i) measures academic progress and 
                        credential attainment by the assessment of 
                        student learning in lieu of, or in addition to, 
                        credit or clock hours;
                            ``(ii) measures and assesses such academic 
                        progress and attainment in terms of a student's 
                        mastery of competencies by identifying what 
                        students know through criterion referenced or 
                        performance-based assessment;
                            ``(iii) provides the educational content, 
                        activities, support, and resources necessary to 
                        enable students to develop and attain the 
                        competencies that are required to demonstrate 
                        mastery of such competencies in which 
                        instructors are responsible for providing 
                        academic assistance, when needed; and
                            ``(iv) upon a student's demonstration or 
                        mastery of a set of competencies identified and 
                        required by the institution, leads to or 
                        results in the awarding of a credential.''.

SEC. 4. REPORTING ON COMPETENCY-BASED EDUCATION PROGRAMS.

    Section 131 of the Higher Education Act of 1965 (20 U.S.C. 1015) is 
amended by adding at the end the following:
                            ``(i) Reporting on competency-based 
                        education programs.--
            ``(1) Not later than 6 months after the date of enactment 
        of the Empowering Learners through Competency-Based Education 
        Act, the Secretary shall, for each institution that has more 
        than 200 students enrolled in competency-based education 
        programs in an academic year (as defined in section 481(a)), 
        collect, verify, and make publicly available on the same data 
        that is in College Scorecard, or any similar successor website.
            ``(2) Information on competency-based education programs 
        conducted under this section as described at paragraph (3) of 
        this subsection shall be collected by the Secretary for the 
        purpose of evaluating best practices respecting the 
        administration of such programs, including effects on student 
        outcomes, time to credential, total price, and job placement, 
        and shall annually report to the Congress respecting such 
        findings.
            ``(3) For the purposes described in subsections (1) and (2) 
        of this section, the Secretary shall collect the following 
        information for each eligible institution offering competency-
        based education:
                    ``(A) The tuition and fees of the program and any 
                other components of student's cost of attendance (as 
                defined in section 472) that are required for 
                enrollment.
                    ``(B) The median earnings of students who complete 
                and do not complete the program.
                    ``(C) The median time to credential.
                    ``(D) The number and percentage of students who 
                complete a credential within 100 percent, 150 percent, 
                and 200 percent of the published length of the program.
                    ``(E) The number and percentage of students 
                completing the program who are employed not later than 
                180 days and 1 year, respectively, after completing the 
                eligible program, if available.''.

SEC. 5. DEFINITIONS OF ACADEMIC YEAR AND ELIGIBLE PROGRAM.

    Section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088) is 
amended--
            (1) in subsection (a)(2), by inserting the following:
                    ``(C) For any program of competency-based education 
                (as defined in section 103 of this Act), the term 
                `academic year' shall require an equivalent to the 
                credit and clock hour requirements in subparagraphs (A) 
                and (B) of this subsection.''; and
            (2) for purposes of this Act, the term ``eligible program'' 
        includes a competency-based education program.

SEC. 6. COMPETENCY-BASED EDUCATION DEMONSTRATION PROJECTS.

    Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1088 et seq.) is amended by inserting after section 486A the following:

``SEC. 486B. COMPETENCY-BASED EDUCATION DEMONSTRATION PROJECTS.

    ``(a) Demonstration Projects Authorized.--The Secretary shall 
select, in accordance with subsection (d), eligible entities that 
voluntarily seek to carry out competency-based education demonstration 
projects for a duration of 5 years and receive waivers or other 
flexibility described in subsection (e) to carry out such projects.
    ``(b) Application.--
            ``(1) In general.--Each eligible entity desiring to carry 
        out a demonstration project under this section shall submit an 
        application to the Secretary, at such time and in such manner 
        as the Secretary may require.
            ``(2) Outreach.--The Secretary shall, prior to any deadline 
        to submit applications under paragraph (1), conduct outreach to 
        institutions of higher education, in particular to institutions 
        eligible for programs under titles III and V of this Act, as 
        well as institutions that predominantly enroll adult learners 
        or students with disabilities, or are located in rural areas.
            ``(3) Amendments.--
                    ``(A) In general.--An eligible entity that has been 
                selected to carry out a demonstration project under 
                this section may submit to the Secretary amendments to 
                the eligible entity's approved application under 
                paragraph (1), at such time and in such manner as the 
                Secretary may require, which the Secretary shall 
                approve or deny within 30 days of receipt.
                    ``(B) Expanding enrollment.--Notwithstanding the 
                assurance required with respect to maximum enrollment 
                under paragraph (4)(N), an eligible entity whose 
                demonstration project has been evaluated under 
                subsection (g)(2) not less than twice, may submit to 
                the Secretary an amendment to the eligible entity's 
                application under paragraph (1) to increase enrollment 
                in the project to more than 3,000 students, but not 
                more than 5,000 students, and which shall specify--
                            ``(i) the proposed maximum enrollment and 
                        annual enrollment growth for the project;
                            ``(ii) how the eligible entity will 
                        successfully carry out the project with such 
                        maximum enrollment and enrollment growth;
                            ``(iii) any other amendments to the 
                        eligible entity's application under paragraph 
                        (1) that are related to such maximum enrollment 
                        or enrollment growth; and
                            ``(iv) the Secretary shall determine 
                        whether to approve or deny an amendment 
                        submitted under clause (i) for a demonstration 
                        project based on the project's evaluations 
                        under subsection (g)(2).
            ``(4) Contents.--Each application under paragraph (1) shall 
        include--
                    ``(A) a description of each competency-based 
                education program to be offered by the eligible entity 
                under the demonstration project;
                    ``(B) a description of the alignment of the 
                proposed competency-based education program to the 
                institution's mission, and evidence of institutional 
                commitment to such program;
                    ``(C) a description of how each program will work 
                with employers and local industry to assess and 
                incorporate competencies that are relevant in the labor 
                market and how the program aligns with employer needs;
                    ``(D) a description of the proposed academic 
                design, academic and support services, delivery, 
                business, and financial models for the demonstration 
                project, including explanations and supporting 
                documents of how each competency-based education 
                program offered under the demonstration project will--
                            ``(i) result in the achievement of 
                        competencies;
                            ``(ii) differ from standard credit or clock 
                        hour approaches, in whole or in part; and
                            ``(iii) may result in an improvement in one 
                        or more student outcomes metrics described in 
                        subparagraph (R)(i);
                    ``(E) a description of how each competency-based 
                education program offered under the demonstration 
                project will award academic credit to advance the 
                progress of a student toward completion of a 
                certificate or degree that is used by in-demand 
                employers for making employment decisions;
                    ``(F) a description of how each competency-based 
                education program offered under the demonstration 
                project is aligned with a career pathway (as defined in 
                section 3 of the Workforce Innovation and Opportunity 
                Act (29 U.S.C. 3102)), if applicable;
                    ``(G) a description of the meaningful role of the 
                appropriate instructors of the eligible entity in the 
                development, design, implementation, delivery, and 
                evaluation of each such competency-based education 
                program;
                    ``(H) a description of how the eligible entity will 
                facilitate transfer, postsecondary study, and employer 
                understanding by articulating a competency-based 
                transcript from a competency-based education program 
                offered under the demonstration project to a credit or 
                clock hour transcript at another program at the 
                eligible entity and to other institutions of higher 
                education;
                    ``(I) a description of the statutory and regulatory 
                requirements described in subsection (e) for which the 
                eligible entity is seeking a waiver or other 
                flexibility, and why such waiver or flexibility is 
                necessary to carry out the demonstration project;
                    ``(J) a description of indicators of a program's 
                effectiveness to inform how a third party will reliably 
                assess student learning for each competency-based 
                education program offered under the demonstration 
                project, if applicable;
                    ``(K) a description of how the eligible entity will 
                develop and evaluate the competencies and assessments 
                of student knowledge administered as part of the 
                demonstration project, including whether there is a 
                relationship between the competency unit and a 
                traditional credit or clock hour, the average time it 
                takes to earn a competency, how such competencies and 
                assessments are aligned with workforce needs and any 
                other considerations the institution made when it 
                developed its unit of competency;
                    ``(L) a description of the proposal for determining 
                a student's Federal student aid eligibility under this 
                title for participating in the demonstration project, 
                the award and distribution of such aid, and the 
                safeguards to ensure that students are making 
                satisfactory progress that warrants the disbursement of 
                such aid;
                    ``(M) an assurance that the demonstration project 
                at each eligible entity--
                            ``(i) will enroll a minimum of 30 students 
                        and a maximum of 3,000 students or, in the case 
                        of an eligible entity with an application 
                        amendment approved under paragraph (3)(B), the 
                        maximum enrollment approved under such 
                        paragraph;
                            ``(ii) will identify and disseminate best 
                        practices with respect to the demonstration 
                        project to the Secretary and to other eligible 
                        entities carrying out a demonstration project 
                        under this section;
                            ``(iii) operates under an agreement with 
                        the accrediting agency or association of the 
                        eligible entity to establish the standards 
                        described in subsection (c); and
                            ``(iv) uses available funds solely for 
                        purposes of awarding academic credit to 
                        eligible students based on the achievement of 
                        competencies and for the related costs or fees 
                        of demonstrating the achievement of 
                        competencies;
                    ``(N) a description of the population of students 
                to whom competency-based education under the 
                demonstration project will be offered, including 
                demographic information and prior educational 
                experience, disaggregated by students who are Federal 
                Pell Grant recipients, the race of the students, 
                students with disabilities, students who are veterans 
                or members of the Armed Forces, adult learners, and 
                first generation college students, and how such 
                eligible entity will, when appropriate, address the 
                specific needs of each such population of students when 
                carrying out the demonstration project;
                    ``(O) a description of how the institution is 
                ensuring that students participating in the 
                demonstration project will not, on average, be eligible 
                for more or less Federal assistance under this title 
                than such students would have been eligible for under a 
                program measured in credit or clock hours;
                    ``(P) the cost of attendance for each competency-
                based education program offered under the demonstration 
                project, disaggregated by each of the applicable costs 
                or allowances described in paragraphs (1) through (13) 
                of section 472, and the estimated amount of the cost of 
                attendance of each such program to be covered by need-
                based grant aid and merit-based grant aid from Federal, 
                State, institutional, and private sources; and
                    ``(Q) a description of how the eligible entity will 
                use data to--
                            ``(i) define and measure student outcomes;
                            ``(ii) ensure that each competency-based 
                        education program under the demonstration 
                        project meets the benchmarks established in 
                        accordance with subsection (d)(2)(E);
                            ``(iii) confirm relevancy of competencies 
                        in the labor market; and
                            ``(iv) improve each such program.
    ``(c) Recognition by Accrediting Agency or Association.--Unless a 
program has already been recognized as a competency-based education 
program (including as a direct assessment program) by the accrediting 
agency or association of the eligible entity, in order to carry out a 
competency-based education program under a demonstration project under 
this section, an eligible entity shall include in its application under 
subsection (b), a letter from the accrediting agency or association of 
the eligible entity that describes how it will establish and enforce 
certain standards with respect to such competency-based education 
program.
    ``(d) Selection.--
            ``(1) In general.--Not later than 12 months after the date 
        of enactment of the Empowering Learners through Competency-
        Based Education Act, the Secretary shall select eligible 
        entities to carry out an demonstration project under this 
        section under which at least one competency-based education 
        program is offered at each eligible entity.
            ``(2) Considerations.--In selecting eligible entities under 
        paragraph (1), the Secretary shall--
                    ``(A) consider the number and quality of 
                applications received;
                    ``(B) consider an eligible entity's--
                            ``(i) ability to successfully execute the 
                        demonstration project as described in the 
                        eligible entity's application under subsection 
                        (b);
                            ``(ii) commitment and ability to 
                        effectively finance the demonstration project;
                            ``(iii) ability to provide administrative 
                        capability and the expertise to evaluate 
                        student progress based on measures other than 
                        credit hours or clock hours;
                            ``(iv) history of compliance with the 
                        requirements of this Act;
                            ``(v) commitment to work with the Secretary 
                        to evaluate the demonstration project and the 
                        impact of the demonstration project under 
                        subsection (g)(2);
                            ``(vi) commitment and ability to assess 
                        student learning through a third party, as 
                        applicable;
                            ``(vii) commitment of the accrediting 
                        agency or association of the eligible entity to 
                        establish and enforce the standards described 
                        in subsection (c); and
                            ``(viii) commitment to collaboration with 
                        an employer to determine how the demonstration 
                        project will meet employer needs;
                    ``(C) ensure the selection of a diverse group of 
                eligible entities with respect to size, mission, 
                student population, and geographic distribution;
                    ``(D) not limit the types of programs of study or 
                courses of study approved for participation in a 
                demonstration project; and
                    ``(E) not select an eligible entity that, for 1 or 
                both of the preceding 2 fiscal years--
                            ``(i) was under probation or an equivalent 
                        status from the accrediting agency or 
                        association of the eligible entity; and
                            ``(ii) was under sanction from the 
                        authorization agency of the State in which the 
                        eligible entity is located.
    ``(e) Waivers and Other Flexibility.--
            ``(1) In general.--With respect to any eligible entity 
        selected to carry out a demonstration project under this 
        section, the Secretary may--
                    ``(A) waive any requirements of the provisions of 
                law (including any regulations promulgated under such 
                provisions) listed in paragraph (2) for which the 
                eligible entity has provided a reason for waiving under 
                subsection (b)(4)(J); or
                    ``(B) provide other flexibility, but not waive, any 
                requirements of the provisions of law (including any 
                regulations promulgated under such provisions) listed 
                in paragraph (3) for which the eligible entity has 
                provided a reason with which the Secretary agrees for 
                such flexibility under subsection (b)(4)(J).
            ``(2) Provisions eligible for waivers.--The Secretary may 
        waive the following under paragraph (1)(A):
                    ``(A) Subparagraphs (A) and (B) of section 
                102(a)(3).
                    ``(B) Section 484(l)(1).
            ``(3) Provisions eligible for flexibility.--The Secretary 
        may provide the flexibility described in paragraph (1)(B) with 
        respect to the requirements under provisions in title I, part F 
        of this title, or this part, that inhibit the operation of a 
        competency-based education program, relating to the following:
                    ``(A) Documenting attendance.
                    ``(B) Weekly academic activity.
                    ``(C) Minimum weeks of instructional time.
                    ``(D) Requirements for credit hour or clock hour 
                equivalencies if an institution proposes a measure 
                clearly defined in its application that accounts for 
                the academic intensity of study.
                    ``(E) Requirements for regular and substantive 
                interaction with the instructor.
                    ``(F) Definitions of the terms `academic year', 
                `full-time student', `part-time student', `term' 
                (including `standard term', `non-term', and `non-
                standard term'), `satisfactory academic progress', 
                `educational activity', `program of study', and 
                `payment period'.
                    ``(G) Methods of disbursing student financial aid 
                by institutions of higher education selected, as of the 
                date of enactment of the Empowering Learners through 
                Competency-Based Education Act, as experimental sites 
                under section 487A(b)(3) to carry out competency-based 
                education programs.
    ``(f) Notification.--Not later than 9 months after the date of 
enactment of the Empowering Learners through Competency-Based Education 
Act, the Secretary shall make available to the authorizing committees 
and the public a list of eligible entities selected to carry out a 
demonstration project under this section, which shall include for each 
such eligible entity--
            ``(1) the specific waiver or other flexibility from 
        statutory or regulatory requirements offered under subsection 
        (e); and
            ``(2) a description of the competency-based education 
        programs, and its associated accreditation standards, to be 
        offered under the project.
    ``(g) Evaluation and Report.--
            ``(1) Evaluation.--The Secretary shall evaluate the 
        demonstration programs authorized under this section on an 
        annual basis. Such evaluations specifically shall review--
                    ``(A) the extent to which the institution, has met 
                the goals set forth in its application to the 
                Secretary;
                    ``(B) the number and types of students 
                participating in the programs offered, including the 
                progress of participating students toward recognized 
                certificates or degrees and the extent to which 
                participation in such programs increased;
                    ``(C) issues related to student financial 
                assistance for competency-based education; and
                    ``(D) the extent to which statutory or regulatory 
                requirements not waived under the demonstration program 
                present difficulties for students or institutions.
            ``(2) Report.--No later than 1 year after the conclusion of 
        the demonstration program, the Secretary shall provide a final 
        report to the authorizing committees regarding--
                    ``(A) the demonstration programs authorized under 
                this section;
                    ``(B) the number and types of students receiving 
                assistance under this title for instruction leading to 
                a recognized credential, certificate, or degree, 
                including the progress of such students toward 
                recognized credential, certificate, and the degree to 
                which participation in such programs leading to such 
                certificates increased;
                    ``(C) identified policies that present impediments 
                to the development and use of competency-based 
                education; and
                    ``(D) any new understanding of competency and 
                competency-based education and recommendations on how 
                the definitions of such terms should be modified.
    ``(h) Oversight.--In conducting the demonstration program 
authorized under this section, the Secretary shall, on a continuing 
basis--
            ``(1) assure compliance of institutions with the 
        requirements of this title (other than the sections and 
        regulations that are waived under subsections (b)(2) and 
        (b)(3)(D)); and
            ``(2) provide technical assistance;''.

SEC. 7. RULES OF CONSTRUCTION.

    Nothing in this Act shall prevent a program that is an eligible 
program as of the date of enactment of the Empowering Learners through 
Competency-Based Education Act, including an eligible program that met 
the requirements of a direct-assessment program under section 481(b)(4) 
(as in effect the day before the date of enactment of this Act), from 
continuing to be an eligible program during the period that such 
program meets the requirements under the Higher Education of Act 1965.
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