I 
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 Representa-
tives 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— 
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(1) in the matter preceding paragraph (1), in 
the first sentence, by striking ‘‘or training’’ and in-
serting ‘‘or skills development’’; 
(2) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) the accrediting agency or association 
(other than an accrediting agency or association de-
scribed in paragraph (2)(D)) shall be a State or na-
tional agency or association and shall demonstrate 
the ability to operate as an institutional or pro-
grammatic 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 ‘‘prin-
cipal’’; and 
(ii) in clause (ii), by striking ‘‘its prin-
cipal’’ 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-spe-
cific quality assurance entity) that has been— 
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‘‘(i) determined by a State to be a re-
liable authority as to the quality of edu-
cation 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 ac-
crediting agency or association with re-
spect 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 orga-
nized; and 
‘‘(ii) both administratively and finan-
cially 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 exec-
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utive officer (or the representative of 
such board or officer) of any related, 
associated, or affiliated trade associa-
tion or membership organization; 
‘‘(II) among the membership of 
the board or governing body of the ac-
crediting agency or association— 
‘‘(aa) if such board or body 
is comprised of 5 or fewer mem-
bers, there is a minimum of one 
member who is not also a mem-
ber of any related, associated, or 
affiliated trade association or 
membership 
organization 
(re-
ferred to in this subclause as a 
‘public member’) and who rep-
resents business; and 
‘‘(bb) if such board or body 
is comprised of 6 or more mem-
bers, 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 
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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 institu-
tion; 
‘‘(IV) dues to the accrediting 
agency or association are paid sepa-
rately from any dues paid to any re-
lated, associated, or affiliated trade 
association or membership organiza-
tion; and 
‘‘(V) the budget of the accred-
iting agency or association is devel-
oped, determined, and maintained by 
the accrediting agency or association 
without any review by, consultation 
with, or approval by any related, asso-
ciated, or affiliated trade association 
or membership organization;’’; 
(B) by striking ‘‘or’’ at the end of subpara-
graph (B); and 
(C) by striking subparagraph (C); 
(5) in paragraph (4)— 
(A) in subparagraph (A)— 
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‘‘(1) STATE DESIGNATED ACCREDITING AGEN-
CY.— 
‘‘(A) APPROVAL
OF
STATE
PLANS.—The 
Secretary shall— 
‘‘(i) approve a State’s designation of 
an entity as an accrediting agency or asso-
ciation for the purposes described in sub-
section (a)(2)(D) for a 5-year period, be-
ginning not later than 30 days after re-
ceipt of the plan from such State with re-
spect to such designation, if such plan in-
cludes each of the elements listed in sub-
paragraph (B); 
‘‘(ii) submit to the State and the au-
thorizing 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 ele-
ments listed in subparagraph (B); and 
‘‘(iii) if a State’s designation of an en-
tity as an accrediting agency or association 
is approved pursuant to this subparagraph, 
publish in the Federal Register with a 30- 
day public comment period— 
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‘‘(I) the plan submitted by such 
State with respect to such designa-
tion; 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 agen-
cy or association are as follows: 
‘‘(i) A description of the process the 
State used to select the entity for such des-
ignation. 
‘‘(ii) A justification of the State’s de-
cision to select the entity for such designa-
tion. 
‘‘(iii) A description of any require-
ments (in addition to the requirements of 
this section), that the State required the 
entity to comply with as a condition of re-
ceiving and maintaining such designation, 
including a requirement for the entity to 
use, to the extent practicable during such 
designation, the common terminology de-
veloped pursuant to paragraph (3). 
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‘‘(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 enti-
ty will be effective in meeting the require-
ments 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 edu-
cation 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 de-
scribed in subsection (a)(2)(D) shall sub-
mit to the Secretary, and to the State au-
thorizing 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 
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of study or institution that has been ac-
credited 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 ob-
tained a postsecondary education cre-
dential, 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 creden-
tial, 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
STU-
DENTS.—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 pe-
riod for which the report under this sub-
paragraph is being submitted, if the stu-
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dent obtains such credential, certification, 
or degree after transferring to another in-
stitution during such period. 
‘‘(2) AUTHORITY
TO
PROVIDE
AN
ACCELER-
ATED 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 pro-
vide such recognition to such agency or association 
within 2 years after receipt of such application, if 
such application— 
‘‘(A) demonstrates that the agency or asso-
ciation— 
‘‘(i) has at least one year of experi-
ence 
in 
making 
accreditation 
or 
preaccreditation decisions; and 
‘‘(ii) has policies in place that meet all 
the criteria under subsection (a) for rec-
ognition covering the range of the specific 
degrees, certificates, institutions, and pro-
grams of study for which the agency or as-
sociation 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 
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Secretary monitoring reports regarding accredi-
tation or preaccreditation decisions, as appro-
priate. 
‘‘(3) 
DEVELOPMENT
OF
COMMON
TERMI-
NOLOGY.—Not later than 18 months after the date 
of enactment of the Accreditation Choice and Inno-
vation Act, the Secretary shall— 
‘‘(A) convene a panel of experts to develop 
common terminology for accrediting agencies or 
associations to use in making accrediting deci-
sions with respect to programs of study and in-
stitutions, such as a common understanding of 
monitoring, warning, show cause, and other rel-
evant 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 pro-
mulgated by the agency or association to deter-
mine such risk and interval frequency as au-
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thorized under subsection (p))’’ after ‘‘inter-
vals’’; and 
(B) by striking ‘‘, including those regard-
ing 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), re-
spectively; 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 stand-
ards for accreditation of the agency or association, 
with a focus on the standards assessing an institu-
tion’s or program of study’s student success out-
comes 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 
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‘‘(B) as appropriate, requiring the institu-
tion 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 success-
fully implemented;’’. 
(3) PROCEDURES
WITH
RESPECT
TO
SUB-
STANTIVE
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 poli-
cies to ensure that any substantive change of an in-
stitution described in subparagraph (B) after the 
agency or association has granted the institution ac-
creditation or preaccreditation status does not ad-
versely affect the capacity of the institution to con-
tinue 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 sub-
stantive change before the agency or association 
includes the change in the scope of the institu-
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tion’s accreditation or preaccreditation status; 
and 
‘‘(B) define substantive change to in-
clude— 
‘‘(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 insti-
tution, 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 of-
fered by a program of study that was pre-
viously accredited by the agency or associa-
tion when the program of study offered a 
different credential level; and 
‘‘(iv) the entering into a contract 
under which another institution or an or-
ganization 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 in-
stitution 
with 
such 
accreditation 
or 
preaccreditation status;’’. 
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(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 subpara-
graph (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 fol-
lowing: ‘‘, and a summary of why such ac-
tion 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 redesig-
nated), by striking the period at the end and in-
serting 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 
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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 grant-
ed; 
‘‘(B) the most recent date that accredita-
tion or reaccreditation was granted; and 
‘‘(C) the anticipated date of the institu-
tion’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 accredita-
tion 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 accredita-
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tion 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 (in-
cluding 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 pro-
gram).’’. 
(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 es-
tablish criteria for accrediting agencies or associa-
tions that are not required by this section. 
‘‘(2) INSTITUTIONAL ELIGIBILITY.—An institu-
tion 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 sub-
section (a)(5), regardless of any additional standards 
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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 ASSOCIA-
TION.— 
‘‘(1) IN GENERAL.—With respect to an institu-
tion or program of study that is not subject to a cov-
ered 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 ac-
creditation 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 notifica-
tion 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 
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after the accreditation decision by the new ac-
crediting 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 accredita-
tion by such agency or association of such insti-
tution or program. 
‘‘(2) COVERED
ACTION
DEFINED.—For pur-
poses 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 accred-
iting agency or association to deny accreditation 
or preaccreditation to the institution or pro-
gram 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 institu-
tion or program of study. 
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‘‘(D) Probation or an equivalent status im-
posed 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 Sec-
retary shall recognize the accreditation of any other-
wise eligible institution of higher education if the in-
stitution of higher education is accredited, as an in-
stitution, by more than one accrediting agency or as-
sociation. 
‘‘(2) DESIGNATION BY INSTITUTION.—If the in-
stitution is accredited, as an institution, by more 
than one accrediting agency or association, the insti-
tution— 
‘‘(A) shall designate which agency’s or as-
sociation’s accreditation shall be utilized in de-
termining the institution’s eligibility for partici-
pation in programs under this Act; and 
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‘‘(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 sub-
section (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 other-
wise terminated, or has voluntarily withdrawn from 
an accreditation agency, to remain certified as an in-
stitution 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 para-
graph (2), that such withdrawal, revocation, or ter-
mination— 
‘‘(A) is related to the religious mission or 
affiliation of the institution; and 
‘‘(B) is not related to the accreditation cri-
teria provided for in this section. 
‘‘(2) ADMINISTRATIVE
COMPLAINT
FOR
FAIL-
URE TO RESPECT RELIGIOUS MISSION.— 
‘‘(A) IN GENERAL.— 
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‘‘(i) INSTITUTION.—If an institution 
of higher education believes that an ad-
verse action of an accrediting agency or as-
sociation 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 com-
plaint, 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 asso-
ciation; or 
‘‘(bb) determining that dis-
cussions with or the processes of 
the agency or association to rem-
edy the failure to respect the reli-
gious mission of the institution 
will fail to result in the with-
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drawal of the adverse action by 
the agency or association. 
‘‘(ii) ACCREDITING AGENCY OR ASSO-
CIATION.—Upon notification of an intent 
to file a complaint and through the dura-
tion of the complaint process under this 
paragraph, the Secretary and the accred-
iting 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 com-
plaint 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 com-
plaint with the Secretary (and provide a copy to 
the accrediting agency or association), which 
shall include— 
‘‘(i) a description of the adverse ac-
tion; 
‘‘(ii) how the adverse action fails to 
respect the institution’s religious mission 
in violation of subsection (a)(4)(B); and 
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‘‘(iii) any other information the insti-
tution determines relevant to the com-
plaint. 
‘‘(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 accredita-
tion; and 
‘‘(II) how the adverse action does 
not fail to respect the religious mis-
sion of the institution and is in com-
pliance with subsection (a)(4)(B). 
‘‘(ii) BURDEN OF PROOF.— 
‘‘(I) IN GENERAL.—The accred-
iting agency or association shall bear 
the burden of proving that the agency 
or association has not taken the ad-
verse action as a result of the institu-
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tion’s religious mission, and that the 
action does not fail to respect the in-
stitution’s religious mission in viola-
tion of subsection (a)(4)(B), by show-
ing that the adverse action does not 
impact the aspect of the religious mis-
sion claimed to be affected in the 
complaint. 
‘‘(II) INSUFFICIENT
PROOF.— 
Any evidence that the adverse action 
results from the application of a neu-
tral and generally applicable rule shall 
be insufficient to prove that the action 
does not fail to respect an institu-
tion’s religious mission. 
‘‘(D) 
ADDITIONAL
INSTITUTION
RE-
SPONSE.— 
‘‘(i) IN
GENERAL.—The institution 
shall have a 30-day period beginning on 
the date on which the agency or associa-
tion’s response is filed with the Secretary 
to file with the Secretary (and provide a 
copy to the agency or association) a re-
sponse to any issues raised in the response 
of the agency or association. 
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‘‘(ii) WAIVER
OF
RIGHT
TO
RE-
SPOND.—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 re-
spond to the response of the agency or as-
sociation. 
‘‘(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 ac-
crediting agency or association has 
met its burden of proof under sub-
paragraph (C)(ii)(I); or 
‘‘(II) in a case in which the Sec-
retary 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 institu-
tion; and 
‘‘(bb) the accrediting agency 
or association shall be required to 
reverse the action immediately 
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and take no further action with 
respect to such adverse action. 
‘‘(ii) REVIEW OF COMPLAINT.—In re-
viewing the complaint under clause (i)(I)— 
‘‘(I) the Secretary shall consider 
the institution to be correct in the as-
sertion that the adverse action fails to 
respect the institution’s religious mis-
sion and shall apply the burden of 
proof 
described 
in 
subparagraph 
(C)(ii)(I) with respect to the accred-
iting agency or association; and 
‘‘(II) if the Secretary determines 
that the accrediting agency or associa-
tion fails to meet such burden of 
proof— 
‘‘(aa) the Secretary shall no-
tify the institution and the agen-
cy or association that the agency 
or association is not in compli-
ance with subsection (a)(4)(B), 
and that such agency or associa-
tion shall carry out the require-
ments of item (bb) to be in com-
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pliance with subsection (a)(4)(B); 
and 
‘‘(bb) the agency or associa-
tion shall reverse the adverse ac-
tion immediately and take no fur-
ther action with respect to such 
adverse action. 
‘‘(iii) 
FINAL
DEPARTMENTAL
AC-
TION.—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 associa-
tion from taking an adverse action against 
an institution of higher education for a 
failure to comply with the agency or asso-
ciation’s standards of accreditation as long 
as such standards are in compliance with 
subsection (a)(4)(B) and any other appli-
cable 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 
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process of an accrediting agency or asso-
ciation. 
‘‘(G) REGULATIONS AND GUIDANCE.— 
‘‘(i) IN
GENERAL.—The Secretary 
may only issue regulations and guidance 
under this paragraph that explain or clar-
ify 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 dis-
cussions to remedy the failure by an ac-
crediting agency or association to respect 
the religious mission of an institution of 
higher education referred to in subpara-
graph (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 
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described in paragraph (2) or (5) of subsection (c) or how 
the agency or association carries out such policies and pro-
cedures’’. 
(j) RISK-BASED REVIEW PROCESSES
OR PROCE-
DURES; WAIVER.—Section 496 (20 U.S.C. 1099b) is fur-
ther 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 compli-
ance 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 pro-
gram of study being reviewed by such agency or 
association in comparison with the performance 
of other similarly situated institutions or pro-
grams of study (which may include the past 
performance of the institution or program with 
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(such as an institution or program of study 
with a high-risk designation described in sub-
paragraph (B)), which has not improved as re-
quired by the annual plan submitted under sub-
section (c)(2)(B), to take actions to avoid or 
minimize the risks that may lead to revocation 
of accreditation (such as limiting certain pro-
gram 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 other-
wise preclude, institutions of higher education based 
on institutional sector or category, including an in-
stitution 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 cata-
log, marketing materials, or other official publica-
tions of an institution of higher education for a full- 
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time student to complete the requirements for a spe-
cific program of study. 
‘‘(2) PROGRAM OF STUDY.— 
‘‘(A) IN GENERAL.—The term ‘program of 
study’ means an eligible program at an institu-
tion 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 edu-
cation to a specific program of study at the in-
stitution, determined by the institution of high-
er education in accordance with the Classifica-
tion of Instructional Programs published by the 
National Center for Education Statistics. 
‘‘(C) CREDENTIAL LEVEL.— 
‘‘(i) IN GENERAL.—The term ‘creden-
tial level’ means the level of the degree or 
other credential awarded by an institution 
of higher education to students who com-
plete a program of study of the institution. 
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Each degree or other credential awarded 
by an institution shall be categorized by 
the institution as either undergraduate cre-
dential level or graduate credential level. 
‘‘(ii) 
UNDERGRADUATE
CREDEN-
TIAL.—When used with respect to a cre-
dential or credential level, the term ‘under-
graduate 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 creden-
tial’ 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 mis-
sion that is approved by the governing body of 
an institution of higher education and that in-
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cludes, refers to, or is predicated upon religious 
tenets, beliefs, or teachings; and 
‘‘(B) may be reflected in any of the institu-
tion’s policies, decisions, or practices related to 
such tenets, beliefs, or teachings (including any 
policies or decisions concerning housing, em-
ployment, curriculum, self-governance, or stu-
dent admission, continuing enrollment, or grad-
uation). 
‘‘(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 ap-
plied, 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 be-
tween— 
‘‘(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 schol-
arships described in section 480(i) awarded to 
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such student from non-Federal sources for such 
program of study. 
‘‘(5) VALUE-ADDED EARNINGS.— 
‘‘(A) IN GENERAL.—With respect to a stu-
dent 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 stu-
dent measured during the applicable earn-
ings 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 appli-
cable to a single individual as deter-
mined 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 
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under section 673(2) of the Commu-
nity Services Block Grant Act (42 
U.S.C. 9902(2)) for such year. 
‘‘(B) GEOGRAPHIC ADJUSTMENT.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided 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 subpara-
graph; 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 sub-
paragraph (A) shall not be adjusted based 
on geographic location in accordance with 
clause (i) if such student attended prin-
cipally through distance education. 
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‘‘(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 certifi-
cate, or graduate certificate, 1 year 
after the student completes such pro-
gram; 
‘‘(II) in the case of a program of 
study that awards an associate’s de-
gree 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 de-
gree, 4 years after the student com-
pletes such program. 
‘‘(ii) 
EXCEPTION.—The 
Secretary 
may, as the Secretary determines appro-
priate based on the characteristics of a 
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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 cer-
tification associated with the creden-
tial 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 pro-
gram length that exceeds the relevant 
earnings measurement period pre-
scribed 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.’’. 
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SEC. 3. NATIONAL ADVISORY COMMITTEE ON INSTITU-
TIONAL 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 Com-
mittee if such individual has a significant con-
flict of interest, such as being a current regu-
lator (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)— 
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(i) by striking ‘‘Except as provided in 
paragraph (5), the term’’ and inserting 
‘‘The term’’; and 
(ii) by adding at the end the fol-
lowing: ‘‘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 of-
fice and a new member shall be appointed 
to serve the remainder of such term in ac-
cordance 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.’’; 
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(4) in subsection (e)(2)(D), by striking ‘‘, in-
cluding any additional functions established by the 
Secretary through regulation’’; and 
(5) in subsection (f), by striking ‘‘September 
30, 2021’’ and inserting ‘‘September 30, 2028’’. 
Æ 
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