‘‘(C) TERMINATION.—The panel convened 
under this paragraph shall terminate on the date 
that is 60 days after the 60-day public comment 
period referred to in subparagraph (A)(ii).’’. 
(c) OPERATING PROCEDURES REQUIRED.— 
(1) ON-SITE INSPECTIONS AND REVIEWS.—Para-
graph (1) of section 496(c) of the Higher Education 
Act of 1965 (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 author-
ized under subsection (p))’’ after ‘‘intervals’’; 
and 
(B) by striking ‘‘, including those regarding 
distance education’’. 
(2) MECHANISM TO IDENTIFY INSTITUTIONS AND 
PROGRAMS
EXPERIENCING
DIFFICULTIES.—Section 
496(c) of the Higher Education Act of 1965 (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 fol-
lowing: 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(2) develops a policy process to identify any in-
stitution or program of study accredited by the agen-
cy or association that is not meeting the standards for 
accreditation of the agency or association, with a 
focus on the standards assessing an institution’s or 
program of study’s student success outcomes 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 
‘‘(B) as appropriate, requiring the institu-
tion or program of study to submit a plan, on 
an annual basis, to the accrediting agency or as-
sociation 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) 
of the Higher Education Act of 1965 (20 U.S.C. 
1099b(c)) (as redesignated by paragraph (2)(A)) is 
amended to read as follows: 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(5) establishes and applies or maintains poli-
cies to ensure that any substantive change of an insti-
tution described in subparagraph (B) after the agency 
or association has granted the institution accredita-
tion or preaccreditation status does not adversely af-
fect the capacity of the institution to continue to meet 
the agency’s or association’s standards for such ac-
creditation or preaccreditation status, which shall in-
clude 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-
tion’s accreditation or preaccreditation status; 
and 
‘‘(B) define substantive change to include— 
‘‘(i) any change in the established mis-
sion or objectives of the institution; 
‘‘(ii) any change in the legal status, 
form of control, or ownership of the institu-
tion, including the acquisition or addition 
of any other institution or new location 
where more than 50 percent of a program 
of study is offered; 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(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 orga-
nization not eligible to participate in pro-
grams under this title offers more than 25 
percent but less than 50 percent of the in-
struction of a program of study of the insti-
tution 
with 
such 
accreditation 
or 
preaccreditation status;’’. 
(4) PUBLIC AVAILABILITY.—Section 496(c) of the 
Higher Education Act of 1965 (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-
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
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 in-
stitution at which the credit was earned;’’; and 
(D) by adding at the end the following: 
‘‘(11) such agency or association shall make pub-
licly available, on the agency or association’s website, 
a list of the institutions of higher education or pro-
gram of study accredited by such agency or associa-
tion, which includes, with respect to each such insti-
tution or program of study— 
‘‘(A) the year accreditation was first grant-
ed; 
‘‘(B) the most recent date that accreditation 
or reaccreditation was granted; and 
‘‘(C) the anticipated date of the institution’s 
next evaluation for reaccreditation;’’. 
(5) PROHIBITION ON ASSESSMENT OF ELECTED 
OR
APPOINTED
OFFICIALS.—Section 496(c) of the 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
Higher Education Act of 1965 (20 U.S.C. 1099b(c)) 
is further amended by adding at the end the fol-
lowing: 
‘‘(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) of the 
Higher Education Act of 1965 (20 U.S.C. 1099b(c)) 
is further amended by adding at the end the fol-
lowing: 
‘‘(13) confirms that an institution’s or program 
of study’s compliance with a standard for accredita-
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 (including 
the standards for consideration of student success out-
comes described in subsection (a)(5)(A)(i) that relate 
to comparing the median total price charged to stu-
dents in a program of study student cohort to the 
value-added earnings of such cohort).’’. 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
(d) LIMITATION ON SCOPE OF CRITERIA.—Section 496 
of the Higher Education Act of 1965 (20 U.S.C. 1099b) is 
further amended by amending subsection (g) to read as fol-
lows: 
‘‘(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 that is in compliance with the standards of its 
accrediting agency or association that assess the insti-
tution in accordance with subsection (a)(5) shall meet 
the accreditation requirements for certification as an 
institution of higher education under section 102 and 
subpart 3 of this part, regardless of any additional 
standards adopted by the agency or association for 
purposes unrelated to participation in programs 
under this Act.’’. 
(e) CHANGE OF ACCREDITING AGENCY.—Section 496 
of the Higher Education Act of 1965 (20 U.S.C. 1099b) is 
further amended by amending subsection (h) to read as fol-
lows: 
‘‘(h) CHANGE OF ACCREDITING AGENCY OR ASSOCIA-
TION.— 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(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 as-
sociation as long as, not later than 10 days be-
fore the start of such process, the institution or 
program of study provides written notification to 
the Secretary of such process; and 
‘‘(B) such institution or program may make 
such a change without the approval of the Sec-
retary as long as, not later than 10 days after 
the accreditation decision by the new accrediting 
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 accreditation by such 
agency or association of such institution or pro-
gram. 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(2) COVERED ACTION DEFINED.—For purposes 
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 pro-
vide postsecondary education in the State. 
‘‘(B) A decision by a recognized accrediting 
agency or association to deny accreditation or 
preaccreditation to the institution or program of 
study. 
‘‘(C) A pending or final action brought by 
a recognized accrediting agency or association to 
suspend, revoke, withdraw, or terminate the ac-
creditation or preaccreditation of the institution 
or program of study. 
‘‘(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)).’’. 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
(f) DUAL ACCREDITATION RULE.—Section 496 of the 
Higher Education Act of 1965 (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— 
‘‘(i) designate which agency’s or asso-
ciation’s accreditation shall be utilized in 
determining the institution’s eligibility for 
participation in programs under this Act; 
and 
‘‘(ii) the period such agency’s or asso-
ciation’s accreditation shall be so utilized; 
and 
‘‘(B) after the period described in subpara-
graph (A)(ii), the institution may designate a 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
different agency’s or association’s accreditation 
to be utilized in accordance with subparagraph 
(A)(i).’’. 
(g) RELIGIOUS INSTITUTIONS RULE.—Section 496 of 
the Higher Education Act of 1965 (20 U.S.C. 1099b) is fur-
ther amended by amending subsection (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 termi-
nation— 
‘‘(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 FAILURE 
TO RESPECT RELIGIOUS MISSION.— 
‘‘(A) IN GENERAL.— 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(i) INSTITUTION.—If an institution of 
higher education believes that an adverse 
action of an accrediting agency or associa-
tion fails to respect the institution’s reli-
gious mission in violation of subsection 
(a)(4)(B), the institution— 
‘‘(I) may file a complaint with 
the Secretary to review the adverse ac-
tion 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 associa-
tion; 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-
drawal of the adverse action by 
the agency or association. 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(ii) ACCREDITING AGENCY OR ASSO-
CIATION.—Upon notification of an intent to 
file a complaint and through the duration 
of the complaint process under this para-
graph, the Secretary and the accrediting 
agency or association shall treat the accred-
itation status of the institution of higher 
education as if the adverse action for which 
the institution is filing the complaint had 
not been taken. 
‘‘(B) COMPLAINT.—Not later than 45 days 
after providing notice of the intent to file a com-
plaint, the institution shall file the complaint 
with the Secretary (and provide a copy to the 
accrediting agency or association), which shall 
include— 
‘‘(i) a description of the adverse action; 
‘‘(ii) how the adverse action fails to re-
spect the institution’s religious mission in 
violation of subsection (a)(4)(B); and 
‘‘(iii) any other information the insti-
tution determines relevant to the complaint. 
‘‘(C) RESPONSE.— 
‘‘(i) IN
GENERAL.—The accrediting 
agency or association shall have 30 days 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
the aspect of the religious mission 
claimed to be affected in the complaint. 
‘‘(II) INSUFFICIENT PROOF.—Any 
evidence that the adverse action results 
from the application of a neutral and 
generally applicable rule shall be insuf-
ficient to prove that the action does not 
fail to respect an institution’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 association’s 
response is filed with the Secretary to file 
with the Secretary (and provide a copy to 
the agency or association) a response to any 
issues raised in the response of the agency 
or association. 
‘‘(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-
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
spond to the response of the agency or asso-
ciation. 
‘‘(E) SECRETARIAL ACTION.— 
‘‘(i) IN GENERAL.—Not later than 30 
days after the institution submits a re-
sponse pursuant to subparagraph (D)(i), or, 
in the case of an institution that waives the 
institution’s right to respond in accordance 
to subparagraph (D)(ii), 30 days after the 
date on which the agency or association’s 
response is filed with the Secretary— 
‘‘(I) the Secretary shall review the 
materials to determine if the accred-
iting agency or association has met its 
burden of proof under subparagraph 
(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 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
reverse the action immediately 
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 agency 
or association that the agency or 
association is not in compliance 
with subsection (a)(4)(B), and 
that such agency or association 
shall carry out the requirements of 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
item (bb) to be in compliance 
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 fail-
ure to comply with the agency or associa-
tion’s standards of accreditation as long as 
such standards are in compliance with sub-
section (a)(4)(B) and any other applicable 
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 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
process of an accrediting agency or associa-
tion. 
‘‘(G) REGULATIONS AND GUIDANCE.— 
‘‘(i) IN GENERAL.—The Secretary may 
only issue regulations and guidance under 
this paragraph that explain or clarify the 
process for providing a notice of an intent 
to file a complaint under this paragraph, 
and for preparing and filing such a com-
plaint, a response to such complaint by an 
accrediting agency or association, and a re-
sponse by an institution to a response filed 
by an accrediting agency or association. 
‘‘(ii) CLARIFICATION.—The Secretary 
may not issue regulations, guidance, or oth-
erwise determine or suggest, when discus-
sions to remedy the failure by an accred-
iting agency or association to respect the re-
ligious mission of an institution of higher 
education referred to in subparagraph 
(A)(i)(II)(bb) have failed or will fail.’’. 
(h) INDEPENDENT EVALUATION.—Section 496(n)(3) of 
the Higher Education Act of 1965 (20 U.S.C. 1099b(n)(3)) 
is amended by striking the last sentence. 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
(i) REGULATIONS.—Section 496(o) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1099b(o)) is amended by in-
serting before the period at the end the following: ‘‘, or with 
respect to the policies and procedures of an accreditation 
agency or association described in paragraph (2) or (5) of 
subsection (c) or how the agency or association carries out 
such policies and procedures’’. 
(j) RISK-BASED REVIEW PROCESSES OR PROCEDURES; 
WAIVER.—Section 496 of the Higher Education Act of 1965 
(20 U.S.C. 1099b) is further amended— 
(1) by striking subsections (p) and (q); and 
(2) by adding at the end the following: 
‘‘(p) RISK-BASED OR DIFFERENTIATED REVIEW PROC-
ESSES 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 compliance 
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 program of 
study being reviewed by such agency or associa-
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
tion in comparison with the performance of other 
similarly situated institutions or programs of 
study (which may include the past performance 
of the institution or program with respect to 
meeting the accrediting agency or association’s 
standards, including the standards relating to 
the student success outcomes described in sub-
section (a)(5)(A)(i)); 
‘‘(B) with respect to each institution and 
program of study designated as high-risk, as de-
termined using the accrediting agency or asso-
ciation’s system described in subparagraph (A), 
requires the institution and program of study to 
submit the annual plans described in subsection 
(c)(2)(B) to the agency or association that ad-
dress the performance issues of such institution 
or program of study that resulted in such des-
ignation; 
‘‘(C) with respect to each institution and 
program of study whose performance meets or ex-
ceeds the standards of the accrediting agency or 
association, as determined using the system de-
scribed in subparagraph (A), reduces any com-
pliance requirements with respect to such stand-
ards that are not assessing the institution or 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
program of study in accordance with subsection 
(a)(5) (such as on-site inspections); and 
‘‘(D) may require an institution or pro-
gram of study that is required to submit an an-
nual plan under subsection (c)(2)(B) (such as an 
institution or program that has a high-risk des-
ignation described in subparagraph (B)) and 
that has not improved as required by such an-
nual plan, to take actions to avoid or minimize 
the risks that may lead to revocation of accredi-
tation (such as limiting certain program of 
study enrollment or recommending to the Sec-
retary to limit funds under this title for such an 
institution or program). 
‘‘(2) PROHIBITION.—Any risk-based review proc-
ess or procedure established pursuant to this sub-
section shall not discriminate against, or otherwise 
preclude, institutions of higher education based on in-
stitutional sector or category, including an institution 
of higher education’s tax status.’’. 
(k) DEFINITIONS.—Section 496 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1099b) is further amended 
by adding at the end the following: 
‘‘(q) DEFINITIONS.—For purposes of this section: 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(1) PROGRAM
LENGTH.—The term ‘program 
length’ means the minimum amount of time in weeks, 
months, or years that is specified in the catalog, mar-
keting materials, or other official publications of an 
institution of higher education for a full-time student 
to complete the requirements for a specific 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 education to 
a specific program of study at the institution, 
determined by the institution of higher education 
in accordance with the Classification of Instruc-
tional Programs published by the National Cen-
ter for Education Statistics. 
‘‘(C) CREDENTIAL LEVEL.— 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(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. 
Each degree or other credential awarded by 
an institution shall be categorized by the in-
stitution as either undergraduate credential 
level or graduate credential level. 
‘‘(ii) UNDERGRADUATE CREDENTIAL.— 
When used with respect to a credential or 
credential level, the term ‘undergraduate 
credential’ includes credentials such as an 
undergraduate certificate, an associate de-
gree, a bachelor’s degree, and a post-bacca-
laureate 
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 creden-
tial level, the term ‘graduate credential’ in-
cludes credentials such as a master’s degree, 
a doctoral degree, a professional degree, and 
a postgraduate certificate. 
‘‘(3) PROGRAM OF STUDY STUDENT COHORT.— 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(A) IN GENERAL.—The term ‘program of 
study student cohort’ means the cohort of indi-
viduals who completed a specific program of 
study at an institution of higher education dur-
ing the same award year, except that such cohort 
shall only include an individual who received 
Federal financial aid under this title during the 
period the individual was enrolled in such pro-
gram of study. 
‘‘(B) SMALL
COHORTS.—With respect to 
such a program of study student cohort that has 
fewer than 30 individuals, the Secretary shall 
aggregate additional years of data for the pro-
gram of study in order to achieve a cohort of at 
least 30 individuals. 
‘‘(4) 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-
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 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
policies or decisions concerning housing, employ-
ment, curriculum, self-governance, or student ad-
mission, continuing enrollment, or graduation). 
‘‘(5) 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 fi-
nancial assistance under this title was applied, a stu-
dent was required to pay to complete the program of 
study. A student’s total price shall be calculated by 
the Secretary as the difference between— 
‘‘(A) the total amount of tuition and fees 
that were charged to such student before the ap-
plication 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 
such student from non-Federal sources for such 
program of study. 
‘‘(6) VALUE-ADDED EARNINGS.— 
‘‘(A) VALUE-ADDED EARNINGS.— 
‘‘(i) IN
GENERAL.—The term ‘value- 
added earnings’ mean— 
‘‘(I) the median annual earnings 
of a program of study student cohort, 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
as adjusted pursuant to clause (iii) (as 
appropriate), minus 
‘‘(II) the product of— 
‘‘(aa) the poverty line appli-
cable to a single individual, (as 
determined under section 673(2) 
of the Community Services Block 
Grant Act (42 U.S.C. 9902(2))) 
for the year in which such earn-
ings were measured; and 
‘‘(bb) the applicable percent-
age described in clause (ii). 
‘‘(ii) APPLICABLE PERCENTAGE.—The 
applicable percentage described in this 
clause is— 
‘‘(I) in the case of a program of 
study student cohort for program of 
study that awards an undergraduate 
credential, 150 percent; and 
‘‘(II) in the case of a program of 
study student cohort for a program of 
study that awards a graduate creden-
tial, 300 percent. 
‘‘(iii) GEOGRAPHIC
ADJUSTMENT.— 
Except in the case of a program of study 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
student cohort in which 50 percent or more 
of the individuals in such cohort partici-
pated exclusively online, the Secretary shall 
adjust the median annual earnings of a 
program of study student cohort by the re-
gional price parity index of the Bureau of 
Economic Analysis for the metropolitan sta-
tistical area in which the institution offer-
ing such program is located. 
‘‘(B) ANNUAL EARNINGS.— 
‘‘(i) ANNUAL
EARNINGS.—The term 
‘annual earnings’ means the earnings of an 
individual who is in a program of study 
student cohort, who is working, and who is 
not enrolled at an institution, measured— 
‘‘(I) in the case of an under-
graduate certificate, post-baccalaureate 
certificate, or graduate certificate, 1 
year after completion of such program; 
‘‘(II) in the case of an associates 
or masters degree, 2 years after com-
pletion of such program; and 
‘‘(III) in the case of bachelor’s de-
gree, doctoral degree, or professional 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
degree, 4 years after completion of such 
program. 
‘‘(ii) EXCEPTION.—The Secretary may, 
as the Secretary determines appropriate 
based on the characteristics of a program of 
study, extend the applicable measurement 
period under clause (i) for a program of 
study that— 
‘‘(I) requires completion of an ad-
ditional educational program (such as 
a residency or fellowship) after comple-
tion of the program of study in order 
to obtain licensure or board certifi-
cation associated with the credential 
awarded for such program of study; 
and 
‘‘(II) when combined with the 
program length of such additional edu-
cational program for licensure or 
board certification, has a total pro-
gram length that exceeds the applicable 
measurement period under clause (i) 
for such program of study, 
except that in no case shall the annual 
earnings of an individual be measured more 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
than 1 year after the individual completes 
such additional educational program.’’. 
SEC. 3. NATIONAL ADVISORY COMMITTEE ON INSTITU-
TIONAL QUALITY AND INTEGRITY (NACIQI). 
Section 114 of the Higher Education Act of 1965 (20 
U.S.C. 1011c) is amended— 
(1) in subsection (b)— 
(A) in paragraph (2), by redesignating sub-
paragraphs (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 Committee 
if such individual has a significant conflict of 
interest, such as being a current regulator (such 
as a State authorizer), that would require the in-
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
dividual to frequently be recused from serving as 
a member of the Committee.’’; and 
(E) in paragraph (3)— 
(i) by striking ‘‘Except as provided in 
paragraph (5), the term’’ and inserting 
‘‘The term’’; and 
(ii) by adding at the end the following: 
‘‘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 mem-
ber shall vacate such office and a new mem-
ber shall be appointed to serve the remain-
der of such term in accordance 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 Com-
mittee who has been recused with respect to an agen-
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
da item of the meeting shall be included in such agen-
da.’’; 
(4) in subsection (e)(2)(D), by striking ‘‘, includ-
ing any additional functions established by the Sec-
retary through regulation’’; and 
(5) in subsection (f), by striking ‘‘September 30, 
2021’’ and inserting ‘‘September 30, 2028’’. 
SEC. 4. RULE OF CONSTRUCTION. 
Nothing in this Act, or the amendments made by this 
Act, shall be construed to prevent religious accreditors from 
holding and enforcing religious standards on institutions 
they choose to accredit. 
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS
VerDate Sep 11 2014 
01:30 Dec 19, 2025
Jkt 069200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6203
E:\BILLS\H4054.RH
H4054
ssavage on LAPJG3WLY3PROD with BILLS