I 
114TH CONGRESS 
1ST SESSION H. R. 3988 
To count revenues from military and veteran education programs toward 
the limit on Federal revenues that certain proprietary institutions of 
higher education are allowed to receive for purposes of section 487 
of the Higher Education Act of 1965, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 5, 2015 
Ms. SPEIER (for herself, Mr. TAKANO, Mr. JONES, Mr. CARNEY, Ms. JUDY 
CHU of California, Mr. COURTNEY, Mr. CUMMINGS, Ms. DELAURO, Mr. 
ELLISON, Mr. FARR, Mr. GENE GREEN of Texas, Mr. GRIJALVA, Mr. 
HIGGINS, Mr. HONDA, Ms. LEE, Mr. LIPINSKI, Ms. MCCOLLUM, Mr. 
MOULTON, Mr. PERLMUTTER, Ms. PINGREE, Mr. QUIGLEY, and Mr. 
RUSH) introduced the following bill; which was referred to the Committee 
on Education and the Workforce, and in addition to the Committees on 
Armed Services and Veterans’ Affairs, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To count revenues from military and veteran education pro-
grams toward the limit on Federal revenues that certain 
proprietary institutions of higher education are allowed 
to receive for purposes of section 487 of the Higher 
Education Act of 1965, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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funds provided under this title’’ before 
‘‘shall’’; 
(ii) in subparagraph (B)— 
(I) in clause (i), by striking ‘‘as-
sistance under this title’’ and insert-
ing ‘‘Federal educational assistance’’; 
and 
(II) in clause (ii)(I), by inserting 
‘‘, or on a military base if the admin-
istering Secretary for a program of 
Federal educational assistance under 
clause (ii), (iii), or (iv) of paragraph 
(5)(B) has authorized such location’’ 
before the semicolon; 
(iii) in subparagraph (C), by striking 
‘‘program under this title’’ and inserting 
‘‘program of Federal educational assist-
ance’’; 
(iv) in subparagraph (E), by striking 
‘‘funds received under this title’’ and in-
serting ‘‘Federal educational assistance’’; 
and 
(v) in subparagraph (F)— 
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(I) in clause (iii), by striking 
‘‘under this title’’ and inserting ‘‘of 
Federal educational assistance’’; and 
(II) in clause (iv), by striking 
‘‘under this title’’ and inserting ‘‘of 
Federal educational assistance’’; 
(C) in paragraph (2)— 
(i) by striking subparagraph (A) and 
inserting the following: 
‘‘(A) INELIGIBILITY.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
any other provision of law, a proprietary 
institution of higher education receiving 
funds provided under this title that fails to 
meet a requirement of subsection (a)(24) 
for two consecutive institutional fiscal 
years shall be ineligible to participate in or 
receive funds under any program of Fed-
eral educational assistance for a period of 
not less than two institutional fiscal years. 
‘‘(ii) REGAINING ELIGIBILITY.—To re-
gain eligibility to participate in or receive 
funds under any program of Federal edu-
cational assistance after being ineligible 
pursuant to clause (i), a proprietary insti-
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tution of higher education shall dem-
onstrate compliance with all eligibility and 
certification requirements for the program 
for a minimum of two consecutive institu-
tional fiscal years after the institutional 
fiscal year in which the institution became 
ineligible. In order to regain eligibility to 
participate in any program of Federal edu-
cational assistance under this title, such 
compliance shall include meeting the re-
quirements of section 498 for such 2-year 
period. 
‘‘(iii) 
NOTIFICATION
OF
INELIGI-
BILITY.—The Secretary of Education shall 
determine when a proprietary institution of 
higher education that receives funds under 
this title is ineligible under clause (i) and 
shall notify all other administering Secre-
taries of the determination. 
‘‘(iv) ENFORCEMENT.—Each admin-
istering Secretary for a program of Fed-
eral educational assistance shall enforce 
the requirements of this subparagraph for 
the program concerned upon receiving no-
tification under clause (iii) of a proprietary 
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institution of higher education’s ineligi-
bility.’’; and 
(ii) in subparagraph (B)— 
(I) in the matter preceding clause 
(i)— 
(aa) by striking ‘‘In addi-
tion’’ and all that follows through 
‘‘education fails’’ and inserting 
‘‘Notwithstanding any other pro-
vision of law, in addition to such 
other means of enforcing the re-
quirements of a program of Fed-
eral educational assistance as 
may be available to the admin-
istering Secretary, if a propri-
etary institution of higher edu-
cation that receives funds pro-
vided under this title fails’’; and 
(bb) by striking ‘‘the pro-
grams authorized by this title’’ 
and inserting ‘‘all programs of 
Federal educational assistance’’; 
and 
(II) in clause (i), by inserting 
‘‘with respect to a program of Federal 
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educational 
assistance 
under 
this 
title,’’ before ‘‘on the expiration date’’; 
(D) in paragraph (4)(A), by striking 
‘‘sources under this title’’ and inserting ‘‘Fed-
eral educational assistance’’; and 
(E) by adding at the end the following: 
‘‘(5) DEFINITIONS.—In this subsection: 
‘‘(A) ADMINISTERING
SECRETARY.—The 
term ‘administering Secretary’ means the Sec-
retary of Education, the Secretary of Defense, 
the Secretary of Veterans Affairs, the Secretary 
of Homeland Security, or the Secretary of a 
military department responsible for admin-
istering the Federal educational assistance con-
cerned. 
‘‘(B) FEDERAL
EDUCATIONAL
ASSIST-
ANCE.—The term ‘Federal educational assist-
ance’ means funds provided under any of the 
following provisions of law: 
‘‘(i) This title. 
‘‘(ii) Chapter 30, 31, 32, 33, 34, or 
35 of title 38, United States Code. 
‘‘(iii) Chapter 101, 105, 106A, 1606, 
1607, or 1608 of title 10, United States 
Code. 
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‘‘(iv) Section 1784a of title 10, United 
States Code.’’. 
SEC. 3. DEPARTMENT OF DEFENSE AND DEPARTMENT OF 
VETERANS AFFAIRS ACTIONS ON INELIGI-
BILITY OF CERTAIN PROPRIETARY INSTITU-
TIONS OF HIGHER EDUCATION FOR PARTICI-
PATION IN PROGRAMS OF EDUCATIONAL AS-
SISTANCE. 
(a) DEPARTMENT OF DEFENSE.— 
(1) IN
GENERAL.—Chapter 101 of title 10, 
United States Code, is amended by inserting after 
section 2008 the following new section: 
‘‘§ 2008a. Ineligibility of certain proprietary institu-
tions of higher education for participa-
tion in Department of Defense programs 
of educational assistance 
‘‘(a) IN GENERAL.—Upon receipt of a notice from 
the Secretary of Education under clause (iii) of section 
487(d)(2)(A) of the Higher Education Act of 1965 (20 
U.S.C. 1094(d)(2)(A)) that a proprietary institution of 
higher education is ineligible for participation in or receipt 
of funds under any program of Federal educational assist-
ance by reason of such section, the Secretary of Defense 
shall ensure that no educational assistance under the pro-
visions of law specified in subsection (b) is available or 
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used for education at the institution for the period of insti-
tutional fiscal years covered by such notice. 
‘‘(b) COVERED ASSISTANCE.—The provisions of law 
specified in this subsection are the provisions of law on 
educational assistance through the Department of Defense 
as follows: 
‘‘(1) This chapter. 
‘‘(2) Chapters 105, 106A, 1606, 1607, and 
1608 of this title. 
‘‘(3) Section 1784a of this title. 
‘‘(c) NOTICE ON INELIGIBILITY.—(1) The Secretary 
of Defense shall take appropriate actions to notify persons 
receiving or eligible for educational assistance under the 
provisions of law specified in subsection (b) of the applica-
tion of the limitations in section 487(d)(2) of the Higher 
Education Act of 1965 to particular proprietary institu-
tions of higher education. 
‘‘(2) The actions taken under this subsection with re-
spect to a proprietary institution shall include publication, 
on the Internet website of the Department of Defense that 
provides information to persons described in paragraph 
(1), of the following: 
‘‘(A) The name of the institution. 
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‘‘(B) The extent to which the institution failed 
to meet the requirements of section 487(a)(24) of 
the Higher Education Act of 1965. 
‘‘(C) The length of time the institution will be 
ineligible for participation in or receipt of funds 
under any program of Federal educational assistance 
by reason of section 487(d)(2)(A) of that Act. 
‘‘(D) The nonavailability of educational assist-
ance through the Department for enrollment, at-
tendance, or pursuit of a program of education at 
the institution by reason of such ineligibility.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 101 of such title 
is amended by inserting after the item relating to 
section 2008 the following new item: 
‘‘2008a. Ineligibility of certain proprietary institutions of higher education for 
participation in Department of Defense programs of edu-
cational assistance.’’. 
(b) DEPARTMENT OF VETERANS AFFAIRS.— 
(1) IN GENERAL.—Subchapter II of chapter 36 
of title 38, United States Code, is amended by in-
serting after section 3681 the following new section: 
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‘‘§ 3681A. Ineligibility of certain proprietary institu-
tions of higher education for participa-
tion in Department of Veterans Affairs 
programs of educational assistance 
‘‘(a) IN GENERAL.—Upon receipt of a notice from 
the Secretary of Education under clause (iii) of section 
487(d)(2)(A) of the Higher Education Act of 1965 (20 
U.S.C. 1094(d)(2)(A)) that a proprietary institution of 
higher education is ineligible for participation in or receipt 
of funds under any program of Federal educational assist-
ance by reason of such section, the Secretary of Veterans 
Affairs shall ensure that no educational assistance under 
the provisions of law specified in subsection (b) is available 
or used for education at the institution for the period of 
institutional fiscal years covered by such notice. 
‘‘(b) COVERED ASSISTANCE.—The provisions of law 
specified in this subsection are the provisions of law on 
educational assistance through the Department under 
chapters 30, 31, 32, 33, 34, and 35 of this title. 
‘‘(c) NOTICE ON INELIGIBILITY.—(1) The Secretary 
of Veterans Affairs shall take appropriate actions to notify 
persons receiving or eligible for educational assistance 
under the provisions of law specified in subsection (b) of 
the application of the limitations in section 487(d)(2) of 
the Higher Education Act of 1965 to particular propri-
etary institutions of higher education. 
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‘‘(2) The actions taken under this subsection with re-
spect to a proprietary institution shall include publication, 
on the Internet website of the Department that provides 
information to persons described in paragraph (1), of the 
following: 
‘‘(A) The name of the institution. 
‘‘(B) The extent to which the institution failed 
to meet the requirements of section 487(a)(24) of 
the Higher Education Act of 1965. 
‘‘(C) The length of time the institution will be 
ineligible for participation in or receipt of funds 
under any program of Federal educational assistance 
by reason of section 487(d)(2)(A) of that Act. 
‘‘(D) The nonavailability of educational assist-
ance through the Department for enrollment, at-
tendance, or pursuit of a program of education at 
the institution by reason of such ineligibility.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 36 of such title is 
amended by inserting after the item relating to sec-
tion 3681 the following new item: 
‘‘3681A. Ineligibility of certain proprietary institutions of higher education for 
participation in Department of Veterans Affairs programs of 
educational assistance.’’. 
Æ 
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