I 
119TH CONGRESS 
1ST SESSION H. R. 4026 
To amend the Higher Education Act of 1965 regarding proprietary 
institutions of higher education in order to protect students and taxpayers. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 17, 2025 
Mr. COHEN introduced the following bill; which was referred to the Committee 
on Education and Workforce 
A BILL 
To amend the Higher Education Act of 1965 regarding 
proprietary institutions of higher education in order to 
protect students and taxpayers. 
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 ‘‘Protecting Our Stu-
dents and Taxpayers Act of 2025’’ or ‘‘POST Act of 
2025’’. 
SEC. 2. 85/15 RULE. 
(a) IN GENERAL.—Section 102(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1002(b)) is amended— 
(1) in paragraph (1)— 
VerDate Sep 11 2014 
00:50 Jun 26, 2025
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4026.IH
H4026
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(A) in subparagraph (D), by striking 
‘‘and’’ after the semicolon; 
(B) in subparagraph (E), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(F) meets the requirements of paragraph 
(2).’’; 
(2) by redesignating paragraph (2) as para-
graph (3); and 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) REVENUE SOURCES.— 
‘‘(A) DEFINITIONS.—In this paragraph: 
‘‘(i) ALTERNATIVE
FINANCING
AR-
RANGEMENT.—The term ‘alternative fi-
nancing agreement’ means a financing 
agreement between— 
‘‘(I) a student of an institution; 
and 
‘‘(II)(aa) the institution; 
‘‘(bb) any entity or individual— 
‘‘(AA) in the institution’s 
ownership tree; or 
VerDate Sep 11 2014 
00:50 Jun 26, 2025
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4026.IH
H4026
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(BB) with any common 
ownership of the institution and 
the entity providing the funds; or 
‘‘(cc)(AA) an entity that has any 
other relationship or agreement with 
the institution; or 
‘‘(BB) an entity with common 
ownership with an entity described in 
subitem (AA). 
‘‘(ii) FEDERAL
EDUCATION
ASSIST-
ANCE
FUNDS.—The term ‘Federal edu-
cation assistance funds’ means Federal 
funds that are disbursed or delivered to or 
on behalf of a student to be used to attend 
such institution, as calculated under sub-
paragraph (C). 
‘‘(B) 85/15 RULE.—In order to qualify as 
a proprietary institution of higher education 
under this subsection, an institution shall derive 
not less than 15 percent of the institution’s rev-
enues from sources other than Federal edu-
cation assistance funds, as calculated in accord-
ance with subparagraphs (A) and (C). 
‘‘(C) IMPLEMENTATION OF NON-FEDERAL 
REVENUE REQUIREMENT.—In making calcula-
VerDate Sep 11 2014 
00:50 Jun 26, 2025
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4026.IH
H4026
kjohnson on DSK7ZCZBW3PROD with $$_JOB
tions under subparagraph (B), an institution of 
higher education shall— 
‘‘(i) use the cash basis of accounting; 
‘‘(ii) consider as revenue only those 
funds generated by the institution from— 
‘‘(I) tuition, fees, and other insti-
tutional charges for students enrolled 
in programs eligible for assistance 
under title IV; 
‘‘(II) activities conducted by the 
institution that are necessary for the 
education and training of the institu-
tion’s students, if such activities are— 
‘‘(aa) conducted on campus 
or at a facility under the control 
of the institution; 
‘‘(bb) performed under the 
supervision of a member of the 
institution’s faculty; 
‘‘(cc) required to be per-
formed by all students in a spe-
cific educational program at the 
institution; and 
‘‘(dd) related directly to 
services performed by students; 
VerDate Sep 11 2014 
00:50 Jun 26, 2025
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4026.IH
H4026
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(III) a contractual arrangement 
with a Federal agency for the purpose 
of providing job training to low-in-
come individuals who are in need of 
such training; and 
‘‘(IV) funds paid by a student, or 
on behalf of a student by a party un-
related to the institution, its owners, 
or affiliates, for an education or train-
ing program that is not eligible for as-
sistance under title IV, as long as— 
‘‘(aa) such noneligible pro-
gram 
does 
not 
include 
any 
courses offered in an eligible pro-
gram of the proprietary institu-
tion; 
‘‘(bb) such noneligible pro-
gram is provided by the institu-
tion, and taught by an instructor 
of the institution, at— 
‘‘(AA) its main campus 
or one of its additional loca-
tions, as approved by the ap-
propriate accrediting agency 
or association; 
VerDate Sep 11 2014 
00:50 Jun 26, 2025
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4026.IH
H4026
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(BB) another school 
facility approved by the ap-
propriate State agency or 
accrediting agency or asso-
ciation; or 
‘‘(CC) an employer fa-
cility; and 
‘‘(cc) such noneligible pro-
gram is not a program where the 
institution is merely providing fa-
cilities 
for 
test 
preparation 
courses, acting as a proctor, or 
overseeing a course of self-study; 
‘‘(iii) presume that any Federal edu-
cation assistance funds that are disbursed 
or delivered to an institution on behalf of 
a student or directly to a student will be 
used to pay the student’s tuition, fees, or 
other institutional charges, regardless of 
whether the institution credits such funds 
to the student’s account or pays such 
funds directly to the student, except to the 
extent that the student’s tuition, fees, or 
other institutional charges are satisfied 
by— 
VerDate Sep 11 2014 
00:50 Jun 26, 2025
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4026.IH
H4026
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(I) grant funds provided by an 
outside source that— 
‘‘(aa) has no affiliation with 
the institution; and 
‘‘(bb) shares no employees, 
executives, or board members 
with the institution; and 
‘‘(II) institutional scholarships 
described in clause (vi); 
‘‘(iv) include no loans made by an in-
stitution of higher education as revenue to 
the school, except for payments made by 
current or former students to the institu-
tion during the fiscal year for which the 
determination is being made on such loans 
that are— 
‘‘(I) used to satisfy tuition, fees, 
and other institutional charges; 
‘‘(II) bona fide, as evidenced by 
standalone repayment agreements be-
tween the students and the institution 
that are enforceable promissory notes; 
‘‘(III) issued at intervals related 
to the institution’s enrollment periods; 
VerDate Sep 11 2014 
00:50 Jun 26, 2025
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4026.IH
H4026
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(IV) subject to regular loan re-
payments and collections by the insti-
tution; and 
‘‘(V) separate from the enroll-
ment contracts signed by the stu-
dents; 
‘‘(v) include funds from an income 
share agreement, or any other alternative 
financing agreement, with a student only 
if— 
‘‘(I) the institution clearly identi-
fies 
the 
student’s 
institutional 
charges, and such charges are the 
same or less than the stated rate for 
institutional charges; 
‘‘(II) the agreement clearly iden-
tifies the maximum time and max-
imum amount a student would be re-
quired to pay, including the implied or 
imputed interest rate and any fees 
and revenue generated for a related 
third party, the institution, or an enti-
ty 
described 
in 
subparagraph 
(A)(i)(II), for that maximum time pe-
riod; and 
VerDate Sep 11 2014 
00:50 Jun 26, 2025
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4026.IH
H4026
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(III) all payments under the 
agreement are applied with a portion 
allocated to the return of capital and 
a portion allocated to profit, with rev-
enue, interest, and fees not included 
in the calculation; 
‘‘(vi) include a scholarship provided by 
the institution— 
‘‘(I) only if the scholarship is in 
the form of monetary aid based upon 
the academic achievements or finan-
cial need of students, disbursed to 
qualified student recipients during 
each fiscal year from an established 
restricted account; and 
‘‘(II) only to the extent that 
funds in that account represent des-
ignated funds, or income earned on 
such funds, from an outside source 
that— 
‘‘(aa) has no affiliation with 
the institution; and 
‘‘(bb) shares no employees, 
executives, or board members 
with the institution; and 
VerDate Sep 11 2014 
00:50 Jun 26, 2025
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H4026.IH
H4026
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(vii) exclude from revenues— 
‘‘(I) the amount of funds the in-
stitution received under part C of title 
IV, unless the institution used those 
funds to pay a student’s institutional 
charges; 
‘‘(II) the amount of funds the in-
stitution received under subpart 4 of 
part A of title IV; 
‘‘(III) the amount of funds pro-
vided by the institution as matching 
funds for any Federal program; 
‘‘(IV) the amount of Federal edu-
cation assistance funds provided to 
the institution to pay institutional 
charges for a student that were re-
funded or returned; and 
‘‘(V) the amount charged for 
books, supplies, and equipment, unless 
the institution includes that amount 
as tuition, fees, or other institutional 
charges. 
‘‘(D) REGAINING
ELIGIBILITY.—Notwith-
standing subparagraph (B), a proprietary insti-
tution of higher education that fails to meet the 
VerDate Sep 11 2014 
00:50 Jun 26, 2025
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H4026.IH
H4026
kjohnson on DSK7ZCZBW3PROD with $$_JOB
requirements of such subparagraph for a fiscal 
year shall be ineligible for purposes of this 
paragraph for a period of not less than 2 insti-
tutional fiscal years. To regain eligibility under 
this paragraph, the proprietary institution shall 
demonstrate compliance with all eligibility and 
certification requirements under section 498 for 
a minimum of 2 institutional fiscal years after 
the institutional fiscal year in which the institu-
tion became ineligible. 
‘‘(E) REPORT
TO
CONGRESS.—Not later 
than the third full award year (as defined in 
section 481(a)(1)) that begins after the date of 
enactment of the Protecting Our Students and 
Taxpayers Act of 2025, and by July 1 of each 
succeeding year, the Secretary shall submit to 
the authorizing committees a report that con-
tains, for each proprietary institution of higher 
education that receives assistance under title IV 
and as provided in the audited financial state-
ments submitted to the Secretary by each insti-
tution pursuant to the requirements of section 
487(c)— 
VerDate Sep 11 2014 
00:50 Jun 26, 2025
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H4026.IH
H4026
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(i) the amount and percentage of 
such institution’s revenues received from 
Federal education assistance funds; and 
‘‘(ii) the amount and percentage of 
such institution’s revenues received from 
other sources.’’. 
(b) REPEAL OF EXISTING REQUIREMENTS.—Section 
487 of the Higher Education Act of 1965 (20 U.S.C. 
1094) is amended— 
(1) in subsection (a)— 
(A) by striking paragraph (24); 
(B) by redesignating paragraphs (25) 
through (29) as paragraphs (24) through (28), 
respectively; 
(C) in paragraph (24)(A)(ii) (as redesig-
nated by subparagraph (B)), by striking ‘‘sub-
section (e)’’ and inserting ‘‘subsection (d)’’; and 
(D) in paragraph (26) (as redesignated by 
subparagraph (B)), by striking ‘‘subsection (h)’’ 
and inserting ‘‘subsection (g)’’; 
(2) by striking subsection (d); 
(3) by redesignating subsections (e) through (j) 
as subsections (d) through (i), respectively; 
VerDate Sep 11 2014 
00:50 Jun 26, 2025
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H4026.IH
H4026
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(3) 
in 
section 
496(c)(3)(A) 
(20 
U.S.C. 
1099b(c)(3)(A)), by striking ‘‘section 487(f)’’ and 
inserting ‘‘section 487(e)’’; and 
(4) 
in 
section 
498(k)(1) 
(20 
U.S.C. 
1099c(k)(1)), by striking ‘‘section 487(f)’’ and in-
serting ‘‘section 487(e)’’. 
SEC. 3. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this 
Act shall take effect on the second full award year that 
begins after the date of enactment of this Act. 
(b) AWARD YEAR.—In this section, the term ‘‘award 
year’’ has the meaning given the term in section 481(a)(1) 
of the Higher Education Act of 1965 (20 U.S.C. 
1088(a)(1)). 
Æ 
VerDate Sep 11 2014 
00:50 Jun 26, 2025
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6301
E:\BILLS\H4026.IH
H4026
kjohnson on DSK7ZCZBW3PROD with $$_JOB