866 
‘‘(III) workforce participation; 
‘‘(ii) may be assessed using different 
measures selected or established under clause 
(i) for different institutions; 
‘‘(iii) for each measure selected or es-
tablished under clause (i), shall be assessed 
using a single performance benchmark es-
tablished by the agency or association, ex-
cept that an accrediting agency or associa-
tion may establish a different performance 
benchmark for such a measure for each cat-
egory of educational programs (as defined 
in section 435(a)(9)(E)); and 
‘‘(iv) in the case of an institution de-
fined in section 101(a), may include consid-
eration of— 
‘‘(I) the historical significance of 
the institution; and 
‘‘(II) whether the institution is 
one of the only physical locations at 
which postsecondary education is pro-
vided in the geographic area; 
‘‘(B) 
student 
achievement 
outcomes, 
disaggregated by the elements required in the 
postsecondary student data system under sub-
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clauses (I) through (X) of section 132(l)(2)(C)(ii) 
to facilitate institutional improvement and yield 
statistically reliable information that does not 
reveal personally identifiable information about 
an individual student; 
‘‘(C) credentials, including consideration of 
the non-monetary value accruing to students 
pursuing such credentials; 
‘‘(D) curricula, including— 
‘‘(i) other than for the agencies and as-
sociations 
described 
in 
paragraph 
(2)(A)(ii), program length; 
‘‘(ii) course sequencing; and 
‘‘(iii) 
objectives 
related 
to 
credentialing; 
‘‘(E) faculty; 
‘‘(F) student support services; 
‘‘(G) recruiting and admissions practices, 
academic calendars, catalogues, publications, 
and grading; and 
‘‘(H) fiscal and administrative capacity 
(which shall include the institution’s governance) 
as appropriate to the specified scale of oper-
ations;’’; 
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(C) 
by 
redesignating 
paragraphs 
(6) 
through (8) as paragraphs (7) through (9), re-
spectively; and 
(D) by inserting after paragraph (5) the fol-
lowing: 
‘‘(6) such agency or association shall make avail-
able on a publicly accessible website, up-to-date infor-
mation on— 
‘‘(A) the institutions that are subject to the 
jurisdiction of such agency or association; 
‘‘(B) the measures used to assess each of the 
outcomes described in subclauses (I) through 
(III) of paragraph (5)(A)(i); 
‘‘(C) the performance benchmark established 
for each measure selected by the agency or asso-
ciation under paragraph (5)(A), the rationale for 
the establishment of such performance bench-
mark, and how such benchmarks are factored 
into the accreditation process; 
‘‘(D) the process such agency or association 
follows when an institution subject to the juris-
diction of such agency or association does not 
meet an accreditation standard under section 
496(a)(5); and 
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‘‘(E) any sanction or adverse action taken 
with respect to an institution and the reason for 
such sanction or adverse action;’’; 
(E) in paragraph (8), as so redesignated, by 
striking ‘‘30 days’’ and inserting ‘‘10 days’’; 
(F) by amending paragraph (9), as so re-
designated, to read as follows: 
‘‘(9) such agency or association shall— 
‘‘(A) make available on its public website, 
and to the Secretary, and the State licensing or 
authorizing agency, a summary (including the 
decision and rationale for such decision) of any 
review resulting in a final accrediting decision 
involving denial, termination, or suspension of 
accreditation, together with the comments of the 
affected institution; and 
‘‘(B) ensure that each institution that is the 
subject of a final accrediting decision described 
in subparagraph (A) makes available on its pub-
lic website the summary described in subpara-
graph (A) (including the decision and rationale 
for such decision) with respect to such institution 
and the institution’s comments; and’’. 
(G) by adding at the end the following: 
‘‘(10) such agency or association shall— 
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870 
‘‘(A) ensure that any substantive change to 
the educational mission or a program of an in-
stitution after the agency or association has ac-
credited or preaccredited the institution does not 
adversely affect the capacity of the institution to 
continue to meet the standards of such agency or 
association; 
‘‘(B) require such an institution to obtain 
the approval of such agency or association with 
respect to such substantive change before the 
agency or association includes the change in the 
scope of accreditation or preaccreditation pre-
viously granted to the institution by such agency 
or association; and 
‘‘(C) make public and report to the Sec-
retary any decision made under subparagraph 
(B) and the rationale of such decision.’’; 
(2) by striking subsection (b) and inserting the 
following: 
‘‘(b) SEPARATE AND INDEPENDENT DEFINED.—For 
the purpose of subsection (a)(3), the term ‘separate and 
independent’ means that— 
‘‘(1) the members of the postsecondary education 
governing body and any other decision-making body 
of the accrediting agency or association are not— 
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871 
‘‘(A) elected or selected by the board or chief 
executive officer of any related, associated, or af-
filiated trade association or membership organi-
zation; or 
‘‘(B) individuals (such as executives and 
owners of an institution) who exercise substan-
tial control over an institution— 
‘‘(i) that is required to provide the Sec-
retary with satisfactory evidence of its fi-
nancial responsibility in accordance with 
paragraph (3)(A) of section 498(c) because 
the institution fails to meet criteria under 
paragraphs (1) and (2) of such section, ex-
cept that this clause shall not be applicable 
to an institution until the Secretary has 
completed the rulemaking required under 
section 4721(b) of the College Affordability 
Act; 
‘‘(ii) that is on a reimbursement pay-
ment 
method 
pursuant 
to 
section 
487(c)(1)(B); 
‘‘(iii) against which the Secretary is 
initiating or carrying out an emergency ac-
tion 
in 
accordance 
with 
section 
487(c)(1)(G); 
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872 
‘‘(iv) against which the Secretary is 
limiting, suspending, or terminating the in-
stitution’s participation in any program 
under this title in accordance with section 
487(c)(1)(F); or 
‘‘(v) that is on probation or show 
cause, or that is not accredited by an ac-
crediting agency or association; 
‘‘(2) among the membership of the board of the 
accrediting agency or association there shall be 1 pub-
lic member for each 4 members of the board, with a 
minimum of 1 such public member, and guidelines 
are established for such members to avoid conflicts of 
interest, including guidelines ensuring that each such 
public member— 
‘‘(A) is selected to serve on such board in 
the same manner that other board members are 
selected for such service; 
‘‘(B) has not served on such board as a non- 
public member in the preceding 10 years; 
‘‘(C) is not (or has not been in the pre-
ceding 5-year period) a full-time employee of, or 
a member of the governing board, an owner, or 
shareholder of, or consultant to, an institution or 
program that— 
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873 
‘‘(i) is accredited or preaccredited by 
the agency or association; or 
‘‘(ii) has applied for accreditation or 
preaccreditation from such agency or asso-
ciation; 
‘‘(D) is not a member of any trade associa-
tion or membership organization related to, af-
filiated with, or associated with the agency or 
association or an institution that is accredited 
by such agency or association; and 
‘‘(E) is not a spouse, parent, child, or sib-
ling of an individual identified in subparagraph 
(C) or (D); 
‘‘(3) dues to the accrediting agency or associa-
tion are paid separately from any dues paid to any 
related, associated, or affiliated trade association or 
membership organization; and 
‘‘(4) the budget of the accrediting agency or asso-
ciation is developed and determined by the accred-
iting agency or association without review or resort 
to consultation with any other entity or organiza-
tion.’’; 
(3) in subsection (c)— 
(A) in paragraph (1), strike ‘‘those regard-
ing distance education’’ and inserting ‘‘regard-
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874 
ing distance education and the history and mis-
sion of the institutions reviewed’’; 
(B) in paragraph (2)— 
(i) by inserting ‘‘and decline’’ after 
‘‘the growth’’; and 
(ii) by inserting before the semicolon at 
the end the following: ‘‘or decline’’; and 
(C) by amending paragraph (3) to read as 
follows: 
‘‘(3) requires an institution to submit for ap-
proval to the accrediting agency or association a 
teach-out plan (as defined in section 487(f)(2)) and 
which shall meet the requirements of such agency or 
association) upon the occurrence of any of the fol-
lowing events: 
‘‘(A) the Secretary notifies the agency or as-
sociation that the Secretary has determined 
under section 498(c) that the institution does not 
have the financial responsibility required by this 
title, except that this subparagraph shall not be 
applicable to an institution until the Secretary 
has completed the rulemaking required under 
section 4721(b) of the College Affordability Act; 
‘‘(B) the Secretary notifies the agency of a 
determination by the institution’s independent 
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875 
auditor expressing doubt with the institution’s 
ability to operate as a going concern or indi-
cating an adverse opinion or finding of material 
weakness related to financial stability, except 
that this subparagraph shall not apply with re-
spect to a public institution; 
‘‘(C) the agency or association acts to place 
an institution on probation, show cause, or 
equivalent status; or 
‘‘(D) the Secretary notifies the agency that 
the institution is participating in title IV under 
a provisional program participation agree-
ment;’’; 
(D) by amending paragraph (6) to read as 
follows: 
‘‘(6) requires that teach-out agreements among 
institutions are subject to approval by the accrediting 
agency or association consistent with standards pro-
mulgated by such agency or association, and that 
such an agreement shall be required and subject to 
such approval upon the occurrence of any of the fol-
lowing events: 
‘‘(A) the Secretary notifies the agency or as-
sociation that— 
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876 
‘‘(i) the Secretary has placed the insti-
tution on the reimbursement payment meth-
od pursuant to section 487(c)(1)(B); and 
‘‘(ii) the institution fails to meet cri-
teria prescribed by the Secretary regarding 
ratios that demonstrate financial responsi-
bility as described in section 498(c)(2); 
‘‘(B) the Secretary notifies the accrediting 
agency or association that the Secretary has ini-
tiated— 
‘‘(i) an emergency action against the 
institution 
pursuant 
to 
section 
487(c)(1)(G); or 
‘‘(ii) 
an 
action 
under 
section 
487(c)(1)(F) to limit, suspend, or terminate 
the participation of the institution in any 
program under this title; 
‘‘(C) the accrediting agency or association 
acts to withdraw, terminate, or suspend the ac-
creditation of the institution; 
‘‘(D) the institution notifies the accrediting 
agency or association that the institution intends 
to cease operations; 
‘‘(E) the institution notifies the accrediting 
agency or association that the institution intends 
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877 
to close a location that provides one hundred 
percent of at least one program; or 
‘‘(F) pursuant to section 495, the State no-
tifies the accrediting agency or association that 
an institution’s license or legal authorization to 
operate within the State has been or will be re-
voked;’’; 
(E) in paragraph (7), by inserting ‘‘not 
later than 10 days after taking an action de-
scribed in this paragraph,’’ before ‘‘makes avail-
able’’; 
(F) in paragraph (9), by striking the period 
at the end and inserting ‘‘; and’’; and 
(G) by adding at the end the following: 
‘‘(10) responds to complaints received with re-
spect to an institution during the period which the 
accrediting agency or association accredits such insti-
tution not later than 30 days after receiving the com-
plaint (including complaints shared with the agency 
or association by the Secretary or a State agency 
under section 495), monitors and assesses an institu-
tion’s record of student complaints during such pe-
riod, and submits the complaints relevant to the Sec-
retary and to the State agency involved.’’; 
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878 
(4) in subsection (m), by adding at the end the 
following: ‘‘Nothing in this section shall prohibit the 
Secretary from implementing a process of recognition 
under this section which differs for the accrediting 
agencies or associations described in subsection 
(a)(2)(A)(ii) for the purposes of participation in pro-
grams (other than the programs under this Act) ad-
ministered by the Department or other Federal agen-
cies if such differentiation would be beneficial to tax-
payers and the performance of such agencies or asso-
ciations.’’; and 
(5) in subsection (n)— 
(A) in paragraph (1)— 
(i) in the second sentence of the matter 
preceding subparagraph (A), by inserting 
before the period the following: ‘‘, which 
shall include information on at least one in-
stitution of higher education representing 
each of the sectors subject to the jurisdiction 
of the accrediting agency or association (in-
cluding public, nonprofit, and proprietary, 
as applicable) of the representative member 
institutions’’; and 
(ii) in subparagraph (A), by inserting 
before the semicolon the following: ‘‘, and for 
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879 
purposes of facilitating such third-party in-
formation, the Secretary shall make pub-
licly available the application of the accred-
iting agency or association seeking recogni-
tion by the Secretary upon publishing in 
the Federal Register the solicitation for such 
third-party information’’; and 
(B) by adding at the end the following: 
‘‘(5) In the case in which an official of the Department 
(other than the Secretary) makes a decision on the recogni-
tion of an accrediting agency or association that differs 
from the recommendation made by the National Advisory 
Committee on Institutional Quality and Integrity on such 
recognition, without regard to whether any appeals process 
with respect to such decision has been concluded, the official 
shall submit to the authorizing committees the rationale 
and evidence for such decision. 
‘‘(6) During the first 90-day period of each fiscal year, 
the Secretary shall submit to the authorizing committees the 
following information with respect to the preceding fiscal 
year— 
‘‘(A) information about each accrediting agency 
that the Secretary reviews and evaluates under this 
subsection; 
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880 
‘‘(B) the recommendation of the National Advi-
sory Committee on Institutional Quality and Integ-
rity about whether to recognize such accrediting agen-
cy or association and the rationale for such rec-
ommendation; 
‘‘(C) in the case in which an official of the De-
partment (other than the Secretary) makes a decision 
on the recognition of such accrediting agency or asso-
ciation (without regard to whether any appeals proc-
ess with respect to such decision has been concluded), 
such decision and the rationale for such decision; and 
‘‘(D) the final decision of the Secretary on the 
recognition of such accrediting agency or association 
and the rationale for such final decision.’’; and 
(6) by adding at the end the following: 
‘‘(r) EVALUATION
OF QUALITY
AND ACHIEVEMENT 
MEASURES.— 
‘‘(1) IN GENERAL.—The Secretary shall direct 
the National Advisory Committee on Institutional 
Quality and Integrity to— 
‘‘(A) regularly evaluate the effectiveness of 
the measures selected and the performance bench-
marks established by accrediting agencies and 
associations under subsection (a)(5)(A); and 
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881 
‘‘(B) compare similarly situated accrediting 
agencies or associations, whose similarity may 
not be determined solely by the educational sector 
to which the institutions being evaluated belong, 
based on the measures and performance bench-
marks used in subsection (a)(5)(A) by such agen-
cies and associations. 
‘‘(2) REVISING
PERFORMANCE
BENCHMARKS.— 
The Secretary may require an accrediting agency or 
association to review and revise a performance bench-
mark established by such agency or association if the 
Secretary determines that such performance bench-
mark is too low for the measure for which such bench-
mark is established. 
‘‘(3) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to give the Secretary 
that authority to require the use of a specific perform-
ance benchmark by an accrediting agency or associa-
tion for purposes of subsection (a)(5)(A). 
‘‘(s) 
REPORT
ON
RECOGNIZED
INSTITUTIONAL 
ACCREDITORS REQUIRED.—Not later than 180 days after 
the date of the enactment of the College Affordability Act, 
and annually thereafter, the Secretary shall publish a re-
port that includes with respect to each accrediting agency 
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882 
or association recognized under this section by the Sec-
retary, the following: 
‘‘(1) The number of institutions of higher edu-
cation evaluated by such accrediting agency or asso-
ciation in each educational sector. 
‘‘(2) The number of locations of such institutions 
of higher education. 
‘‘(3) The number of students enrolled at such in-
stitutions of higher education. 
‘‘(4) The number of students receiving a Federal 
Pell Grant at such institutions of higher education in 
the preceding year. 
‘‘(5) The total amount of Federal student aid re-
ceived by students enrolled at such institutions of 
higher education in the preceding year. 
‘‘(6) The graduation rates of such institutions of 
higher education. 
‘‘(7) The median earnings of students 10 years 
after enrollment. 
‘‘(8) The number of institutions placed on a re-
imbursement payment method pursuant to section 
487(c)(1)(B). 
‘‘(t) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to prohibit an institution of higher 
education from seeking accreditation, in a manner con-
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883 
sistent with the requirements of subsections (h), (i), and 
(l)(2), from an accrediting agency or association that is ac-
crediting a branch campus of such institution in the State 
in which the institution is located.’’. 
Subpart 3—Program Review and Data 
SEC. 4721. ELIGIBILITY AND CERTIFICATION PROCEDURES. 
(a) FINANCIAL RESPONSIBILITY STANDARDS.—Section 
498 of the Higher Education Act of 1965 (20 U.S.C. 1099c) 
is amended— 
(1) in subsection (b)— 
(A) in paragraph (4), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (5), by striking the period 
at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(6) includes an addendum under which an in-
stitution of higher education shall report a change in 
circumstances described in subparagraph (A)(ii) or 
clauses (ii) or (iii) of subparagraph (B) of subsection 
(c)(8), not later than 30 days after the date on which 
such change in circumstance occurs.’’; 
(2) in subsection (c)— 
(A) in paragraph (1)— 
(i) in subparagraph (B), by striking 
‘‘and’’ at the end; 
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884 
(ii) in subparagraph (C), by striking 
the period at the end and inserting ‘‘; and’’ 
; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(D) the institution is not an institution de-
scribed in paragraph (7)(B).’’; 
(B) in paragraph (3)— 
(i) by redesignating subparagraphs (C) 
and (D) as subparagraphs (D) and (E), re-
spectively; and 
(ii) by inserting after subparagraph 
(B) the following: 
‘‘(C) such institution has a rating of investment 
grade or above from a recognized credit rating agen-
cy;’’; and 
(C) by adding at the end the following: 
‘‘(7) PROHIBITED
FINANCIAL
RESPONSIBILITY 
DETERMINATIONS.— 
‘‘(A) IN GENERAL.—The Secretary may not 
determine that an institution has the financial 
responsibility required by this title if such insti-
tution is an institution described in subpara-
graph (B). 
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885 
‘‘(B) SPECIFIED INSTITUTION.—An institu-
tion described in this subparagraph is— 
‘‘(i) a private non-profit institution of 
higher education or a proprietary institu-
tion of higher education (as defined in sec-
tion 102(b)) that— 
‘‘(I) is required by the accrediting 
agency of such institution to submit a 
teach-out plan under section 487(f); 
‘‘(II) with respect to the preceding 
2 fiscal years, has an adjusted cohort 
default rate (as determined under sec-
tion 435(m)) of 20 percent or greater, 
unless the institution files a challenge, 
request for adjustment, or appeal 
under section 435(a) with respect to 
such rates for one or both of such fiscal 
years; or 
‘‘(III) is subject to a number of 
pending or approved borrower relief 
claims under section 493H from bor-
rowers that equals or exceeds, with re-
spect to the prior academic year, half 
of the enrollment of full-time equiva-
lent students at such institution; 
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886 
‘‘(ii) a proprietary institution of high-
er education (as defined in section 102(b)) 
that— 
‘‘(I) is publicly traded; and 
‘‘(II)(aa) is sanctioned by the Se-
curities and Exchange Commission; 
‘‘(bb) fails to file a required 
annual or quarterly report with 
the Securities and Exchange Com-
mission; or 
‘‘(cc) the stock of which is 
delisted; or 
‘‘(iii) a proprietary institution of high-
er 
education 
(as 
defined 
in 
section 
102(b))— 
‘‘(I) that derived, for any award 
year beginning on or after July 1, 
2022, more than 85 percent of the rev-
enue of the institution from Federal 
education assistance funds; or 
‘‘(II) fails to meet criteria pre-
scribed by the Secretary regarding ra-
tios that demonstrate financial respon-
sibility, and has any withdrawal of 
owner’s equity from the institution by 
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887 
any means, including by declaring a 
dividend. 
‘‘(8) CHANGE IN CIRCUMSTANCES.— 
‘‘(A) REQUIRED REDETERMINATION.— 
‘‘(i) IN GENERAL.—In the case of a 
private non-profit institution of higher edu-
cation or a proprietary institution of higher 
education (as defined in section 102(b)) that 
submits an addendum described in clause 
(ii) or (iii) to the Secretary, the Secretary 
shall, not later than 30 days after such ad-
dendum is submitted, redetermine whether 
such institution meets the requirements of 
this subsection. 
‘‘(ii) SPECIFIED CIRCUMSTANCES.—An 
institution of higher education shall submit 
an addendum under subsection (b)(6) if, 
with respect to such institution of higher 
education, one of the following occurs: 
‘‘(I) The institution is required to 
pay any material debt, as determined 
by the Secretary, or incur any mate-
rial liability, as determined by the 
Secretary, arising from a final judg-
ment in a judicial proceeding, an ad-
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888 
ministrative proceeding or determina-
tion, or settlement. 
‘‘(II) The institution is involved 
in a lawsuit that is brought on or after 
the date of the enactment of College Af-
fordability Act by a Federal or State 
authority for financial relief on claims 
related to the making of loans under 
part D of title IV. 
‘‘(III) Such other circumstance 
the Secretary determines necessary. 
‘‘(iii) GAINFUL EMPLOYMENT DETER-
MINATION BY SECRETARY.—An institution 
of higher education shall submit an adden-
dum under subsection (b)(6) if the Secretary 
makes a determination that such institution 
has programs that could become ineligible 
under gainful employment (as defined in 
section 104) in the next award year. 
‘‘(B) PERMISSIBLE REDETERMINATION.— 
‘‘(i) REDETERMINATION.—In the case 
of an institution that submits an addendum 
under clause (ii), the Secretary may, not 
later than 30 days after such addendum is 
submitted, redetermine whether such insti-
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tution meets the requirements of this sub-
section. 
‘‘(ii) SPECIFIED
CIRCUMSTANCES.— 
The Secretary shall require an institution 
to submit an addendum under subsection 
(b)(6) if the Secretary makes a determina-
tion— 
‘‘(I) that the Secretary will likely 
receive a significant number of bor-
rower relief claims under section 493H 
as the result of a lawsuit, settlement, or 
judgement against the institution; or 
‘‘(II) that the institution experi-
enced one of the following: 
‘‘(aa) A significant fluctua-
tion in enrollments between con-
secutive award years or a period 
of award years. 
‘‘(bb) A citation by a State 
licensing or authorizing agency 
for failing State or agency re-
quirements. 
‘‘(cc) High annual drop out 
rates. 
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‘‘(dd) Pending borrower relief 
claims under section 493H. 
‘‘(C) FINANCIAL
CIRCUMSTANCES
MATE-
RIALS.—If 
the 
institution’s 
financial 
cir-
cumstances materially change after the institu-
tion submits an addendum under subsection 
(b)(6), such institution shall submit to the Sec-
retary such certified financial statements and 
other information as the Secretary may require. 
‘‘(9) TRANSPARENCY.—Beginning not later than 
90 days after the date of the enactment of this para-
graph, and not less than once every 120 days there-
after, the Secretary shall make publicly available on 
the website of the Department the following: 
‘‘(A) The ratios used to demonstrate finan-
cial responsibility under this section. 
‘‘(B) Each reports made to the Secretary 
under this section. 
‘‘(C) Each audited financial statement sub-
mitted to the Secretary by an institution of high-
er education under this section. 
‘‘(D) Each certified financial statement sub-
mitted to the Secretary under paragraph 
(8)(C).’’; and 
(3) in subsection (i)(2)— 
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891 
(A) in subparagraph (E), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (F), by striking the 
period at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(G) the transfer of ownership as a result of a 
court-ordered receivership.’’. 
(b) RULEMAKING.—Not 1 year after the date of enact-
ment of this Act, the Secretary of Education shall carry 
out a negotiated rulemaking to update the criteria used 
under section 498(c)(2) of the Higher Education Act of 1965 
(20 U.S.C. 1099c) to make a determination of the ability 
of an institution of higher education to meet the standards 
under such section in accordance with the amendments 
made by this section. 
(c) AUDITS.—Not later than 2 years after the criteria 
used under section 498(c)(2) of the Higher Education Act 
of 1965 (20 U.S.C. 1099c) is updated under subsection (b), 
and every 2 years thereafter, the Inspector General of De-
partment of Education shall conduct audits of such criteria 
to ensure that the criteria meets generally accepted account-
ing principles. 
SEC. 4722. PROGRAM REVIEW AND DATA. 
Section 498A of the Higher Education Act of 1965 (20 
U.S.C. 1099c-1) is amended— 
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911 
transfer pathways between institutions of 
higher education in the State, including by 
ensuring that associate degrees awarded by 
public institutions in the State are fully 
transferable to, and credited as, the first 2 
years of related baccalaureate programs at 
public institutions of higher education in 
such State; and 
‘‘(ii) not later than 3 years after the 
date on which the State first receives a 
grant under this subpart, certify to the Sec-
retary that an associate degree in an aca-
demic major in the arts or sciences that is 
awarded by a public institution of higher 
education in the State on or after the date 
that is not later than 3 years after the date 
on which the State first receives a grant 
under 
this 
subpart 
shall 
be 
fully 
transferrable to, and credited as, the first 2 
years of a related baccalaureate program at 
a public institution of higher education in 
such State. 
‘‘(B) FAILURE TO CERTIFY.— If a State 
does not provide the certification required under 
subparagraph (A) by the date specified in such 
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