I 
118TH CONGRESS 
2D SESSION 
H. R. 7495 
To amend the Higher Education Act of 1965 to create a demonstration 
project for competency-based education and clarify eligible competency- 
based education programs. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 29, 2024 
Mr. GROTHMAN (for himself, Ms. PETTERSEN, and Mr. OWENS) introduced 
the following bill; which was referred to the Committee on Education and 
the Workforce 
A BILL 
To amend the Higher Education Act of 1965 to create 
a demonstration project for competency-based education 
and clarify eligible competency-based education pro-
grams. 
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 ‘‘Empowering Learners 
through Competency-Based Education Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(1) Competency-based education, in which the 
measurement of learning in place of the measure-
ment of time is a distinguishing feature, is an effi-
cient, effective, and rigorous form of postsecondary 
education, the widespread adoption of which is nec-
essary and desirable as a means of improving learn-
ing outcomes, student success, and reducing the cost 
of higher education in the United States, and it is 
therefore necessary to clarify the definition of and 
requirements for competency-based education so as 
to facilitate its application and availability. 
(2) Reputable and responsible institutions of 
higher education have for many years developed, of-
fered, and demonstrated the academic rigor, effec-
tiveness, and outcomes of competency-based edu-
cation. 
(3) An increasing number of institutions of 
higher education now seek to develop and offer com-
petency-based education. 
(4) The collection and dissemination of com-
plete and reliable information respecting the impact 
of competency-based education on the quality of 
learning, employability and employer acceptance, re-
tention, time to completion, graduation rates, and 
cost will significantly enhance the adoption of com-
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petency-based education as an essential component 
of postsecondary education in the United States. 
(5) It is in the public interest to improve the 
efficiency and value of postsecondary education and 
therefore support the offering of competency-based 
education. 
SEC. 3. GENERAL DEFINITIONS. 
Section 103 of the Higher Education Act of 1965 (20 
U.S.C. 1003) is amended by adding at the end the fol-
lowing: 
‘‘(25) COMPETENCY; COMPETENCY-BASED EDU-
CATION PROGRAM.— 
‘‘(A) 
COMPETENCY.—The 
term 
‘com-
petency’ means the knowledge, skill, abilities 
and behaviors needed for a particular field of 
study or work-based context. 
‘‘(B) 
COMPETENCY-BASED
EDUCATION 
PROGRAM.—The term ‘competency-based edu-
cation program’ means a postsecondary pro-
gram, including one defined under section 
481(b)(4), that provides competency-based edu-
cation for which the accrediting agency or asso-
ciation of the institution of higher education of-
fering such program has approved the program 
in accordance with such standards— 
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‘‘(i) measures academic progress and 
credential attainment by the assessment of 
student learning in lieu of, or in addition 
to, credit or clock hours; 
‘‘(ii) measures and assesses such aca-
demic progress and attainment in terms of 
a student’s mastery of competencies by 
identifying what students know through 
criterion referenced or performance-based 
assessment; 
‘‘(iii) provides the educational content, 
activities, support, and resources necessary 
to enable students to develop and attain 
the competencies that are required to dem-
onstrate mastery of such competencies in 
which instructors are responsible for pro-
viding academic assistance, when needed; 
and 
‘‘(iv) upon a student’s demonstration 
or mastery of a set of competencies identi-
fied and required by the institution, leads 
to or results in the awarding of a creden-
tial.’’. 
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SEC. 4. REPORTING ON COMPETENCY-BASED EDUCATION 
PROGRAMS. 
Section 131 of the Higher Education Act of 1965 (20 
U.S.C. 1015) is amended by adding at the end the fol-
lowing: 
‘‘(i) REPORTING
ON
COMPETENCY- 
BASED EDUCATION PROGRAMS.— 
‘‘(1) Not later than 6 months after the date of 
enactment of the Empowering Learners through 
Competency-Based Education Act, the Secretary 
shall, for each institution that has more than 200 
students enrolled in competency-based education 
programs in an academic year (as defined in section 
481(a)), collect, verify, and make publicly available 
on the same data that is in College Scorecard, or 
any similar successor website. 
‘‘(2) Information on competency-based edu-
cation programs conducted under this section as de-
scribed at paragraph (3) of this subsection shall be 
collected by the Secretary for the purpose of evalu-
ating best practices respecting the administration of 
such programs, including effects on student out-
comes, time to credential, total price, and job place-
ment, and shall annually report to the Congress re-
specting such findings. 
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‘‘(3) For the purposes described in subsections 
(1) and (2) of this section, the Secretary shall collect 
the following information for each eligible institution 
offering competency-based education: 
‘‘(A) The tuition and fees of the program 
and any other components of student’s cost of 
attendance (as defined in section 472) that are 
required for enrollment. 
‘‘(B) The median earnings of students who 
complete and do not complete the program. 
‘‘(C) The median time to credential. 
‘‘(D) The number and percentage of stu-
dents who complete a credential within 100 per-
cent, 150 percent, and 200 percent of the pub-
lished length of the program. 
‘‘(E) The number and percentage of stu-
dents completing the program who are em-
ployed not later than 180 days and 1 year, re-
spectively, after completing the eligible pro-
gram, if available.’’. 
SEC. 5. DEFINITIONS OF ACADEMIC YEAR AND ELIGIBLE 
PROGRAM. 
Section 481 of the Higher Education Act of 1965 (20 
U.S.C. 1088) is amended— 
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(1) in subsection (a)(2), by inserting the fol-
lowing: 
‘‘(C) For any program of competency- 
based education (as defined in section 103 of 
this Act), the term ‘academic year’ shall require 
an equivalent to the credit and clock hour re-
quirements in subparagraphs (A) and (B) of 
this subsection.’’; and 
(2) for purposes of this Act, the term ‘‘eligible 
program’’ includes a competency-based education 
program. 
SEC. 6. COMPETENCY-BASED EDUCATION DEMONSTRATION 
PROJECTS. 
Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1088 et seq.) is amended by inserting 
after section 486A the following: 
‘‘SEC. 486B. COMPETENCY-BASED EDUCATION DEMONSTRA-
TION PROJECTS. 
‘‘(a) DEMONSTRATION PROJECTS AUTHORIZED.— 
The Secretary shall select, in accordance with subsection 
(d), eligible entities that voluntarily seek to carry out com-
petency-based education demonstration projects for a du-
ration of 5 years and receive waivers or other flexibility 
described in subsection (e) to carry out such projects. 
‘‘(b) APPLICATION.— 
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‘‘(1) IN GENERAL.—Each eligible entity desir-
ing to carry out a demonstration project under this 
section shall submit an application to the Secretary, 
at such time and in such manner as the Secretary 
may require. 
‘‘(2) OUTREACH.—The Secretary shall, prior to 
any deadline to submit applications under paragraph 
(1), conduct outreach to institutions of higher edu-
cation, in particular to institutions eligible for pro-
grams under titles III and V of this Act, as well as 
institutions that predominantly enroll adult learners 
or students with disabilities, or are located in rural 
areas. 
‘‘(3) AMENDMENTS.— 
‘‘(A) IN GENERAL.—An eligible entity that 
has been selected to carry out a demonstration 
project under this section may submit to the 
Secretary amendments to the eligible entity’s 
approved application under paragraph (1), at 
such time and in such manner as the Secretary 
may require, which the Secretary shall approve 
or deny within 30 days of receipt. 
‘‘(B) 
EXPANDING
ENROLLMENT.—Not-
withstanding the assurance required with re-
spect to maximum enrollment under paragraph 
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(4)(N), an eligible entity whose demonstration 
project has been evaluated under subsection 
(g)(2) not less than twice, may submit to the 
Secretary an amendment to the eligible entity’s 
application under paragraph (1) to increase en-
rollment in the project to more than 3,000 stu-
dents, but not more than 5,000 students, and 
which shall specify— 
‘‘(i) the proposed maximum enroll-
ment and annual enrollment growth for the 
project; 
‘‘(ii) how the eligible entity will suc-
cessfully carry out the project with such 
maximum 
enrollment 
and 
enrollment 
growth; 
‘‘(iii) any other amendments to the el-
igible entity’s application under paragraph 
(1) that are related to such maximum en-
rollment or enrollment growth; and 
‘‘(iv) the Secretary shall determine 
whether to approve or deny an amendment 
submitted under clause (i) for a dem-
onstration project based on the project’s 
evaluations under subsection (g)(2). 
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‘‘(4) CONTENTS.—Each application under para-
graph (1) shall include— 
‘‘(A) a description of each competency- 
based education program to be offered by the 
eligible entity under the demonstration project; 
‘‘(B) a description of the alignment of the 
proposed competency-based education program 
to the institution’s mission, and evidence of in-
stitutional commitment to such program; 
‘‘(C) a description of how each program 
will work with employers and local industry to 
assess and incorporate competencies that are 
relevant in the labor market and how the pro-
gram aligns with employer needs; 
‘‘(D) a description of the proposed aca-
demic design, academic and support services, 
delivery, business, and financial models for the 
demonstration project, including explanations 
and supporting documents of how each com-
petency-based education program offered under 
the demonstration project will— 
‘‘(i) result in the achievement of com-
petencies; 
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‘‘(ii) differ from standard credit or 
clock hour approaches, in whole or in part; 
and 
‘‘(iii) may result in an improvement in 
one or more student outcomes metrics de-
scribed in subparagraph (R)(i); 
‘‘(E) a description of how each com-
petency-based education program offered under 
the demonstration project will award academic 
credit to advance the progress of a student to-
ward completion of a certificate or degree that 
is used by in-demand employers for making em-
ployment decisions; 
‘‘(F) a description of how each com-
petency-based education program offered under 
the demonstration project is aligned with a ca-
reer pathway (as defined in section 3 of the 
Workforce Innovation and Opportunity Act (29 
U.S.C. 3102)), if applicable; 
‘‘(G) a description of the meaningful role 
of the appropriate instructors of the eligible en-
tity in the development, design, implementation, 
delivery, and evaluation of each such com-
petency-based education program; 
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‘‘(H) a description of how the eligible enti-
ty will facilitate transfer, postsecondary study, 
and employer understanding by articulating a 
competency-based 
transcript 
from 
a 
com-
petency-based education program offered under 
the demonstration project to a credit or clock 
hour transcript at another program at the eligi-
ble entity and to other institutions of higher 
education; 
‘‘(I) a description of the statutory and reg-
ulatory requirements described in subsection (e) 
for which the eligible entity is seeking a waiver 
or other flexibility, and why such waiver or 
flexibility is necessary to carry out the dem-
onstration project; 
‘‘(J) a description of indicators of a pro-
gram’s effectiveness to inform how a third 
party will reliably assess student learning for 
each competency-based education program of-
fered under the demonstration project, if appli-
cable; 
‘‘(K) a description of how the eligible enti-
ty will develop and evaluate the competencies 
and assessments of student knowledge adminis-
tered as part of the demonstration project, in-
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cluding whether there is a relationship between 
the competency unit and a traditional credit or 
clock hour, the average time it takes to earn a 
competency, how such competencies and assess-
ments are aligned with workforce needs and any 
other considerations the institution made when 
it developed its unit of competency; 
‘‘(L) a description of the proposal for de-
termining a student’s Federal student aid eligi-
bility under this title for participating in the 
demonstration project, the award and distribu-
tion of such aid, and the safeguards to ensure 
that students are making satisfactory progress 
that warrants the disbursement of such aid; 
‘‘(M) an assurance that the demonstration 
project at each eligible entity— 
‘‘(i) will enroll a minimum of 30 stu-
dents and a maximum of 3,000 students 
or, in the case of an eligible entity with an 
application amendment approved under 
paragraph (3)(B), the maximum enroll-
ment approved under such paragraph; 
‘‘(ii) will identify and disseminate best 
practices with respect to the demonstration 
project to the Secretary and to other eligi-
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ble entities carrying out a demonstration 
project under this section; 
‘‘(iii) operates under an agreement 
with the accrediting agency or association 
of the eligible entity to establish the stand-
ards described in subsection (c); and 
‘‘(iv) uses available funds solely for 
purposes of awarding academic credit to el-
igible students based on the achievement of 
competencies and for the related costs or 
fees of demonstrating the achievement of 
competencies; 
‘‘(N) a description of the population of stu-
dents to whom competency-based education 
under the demonstration project will be offered, 
including demographic information and prior 
educational experience, disaggregated by stu-
dents who are Federal Pell Grant recipients, 
the race of the students, students with disabil-
ities, students who are veterans or members of 
the Armed Forces, adult learners, and first gen-
eration college students, and how such eligible 
entity will, when appropriate, address the spe-
cific needs of each such population of students 
when carrying out the demonstration project; 
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‘‘(O) a description of how the institution is 
ensuring that students participating in the dem-
onstration project will not, on average, be eligi-
ble for more or less Federal assistance under 
this title than such students would have been 
eligible for under a program measured in credit 
or clock hours; 
‘‘(P) the cost of attendance for each com-
petency-based education program offered under 
the demonstration project, disaggregated by 
each of the applicable costs or allowances de-
scribed in paragraphs (1) through (13) of sec-
tion 472, and the estimated amount of the cost 
of attendance of each such program to be cov-
ered by need-based grant aid and merit-based 
grant aid from Federal, State, institutional, and 
private sources; and 
‘‘(Q) a description of how the eligible enti-
ty will use data to— 
‘‘(i) define and measure student out-
comes; 
‘‘(ii) ensure that each competency- 
based education program under the dem-
onstration project meets the benchmarks 
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established in accordance with subsection 
(d)(2)(E); 
‘‘(iii) 
confirm 
relevancy 
of 
com-
petencies in the labor market; and 
‘‘(iv) improve each such program. 
‘‘(c) RECOGNITION BY ACCREDITING AGENCY OR AS-
SOCIATION.—Unless a program has already been recog-
nized as a competency-based education program (including 
as a direct assessment program) by the accrediting agency 
or association of the eligible entity, in order to carry out 
a competency-based education program under a dem-
onstration project under this section, an eligible entity 
shall include in its application under subsection (b), a let-
ter from the accrediting agency or association of the eligi-
ble entity that describes how it will establish and enforce 
certain standards with respect to such competency-based 
education program. 
‘‘(d) SELECTION.— 
‘‘(1) IN GENERAL.—Not later than 12 months 
after the date of enactment of the Empowering 
Learners through Competency-Based Education Act, 
the Secretary shall select eligible entities to carry 
out an demonstration project under this section 
under which at least one competency-based edu-
cation program is offered at each eligible entity. 
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‘‘(2) CONSIDERATIONS.—In selecting eligible 
entities under paragraph (1), the Secretary shall— 
‘‘(A) consider the number and quality of 
applications received; 
‘‘(B) consider an eligible entity’s— 
‘‘(i) ability to successfully execute the 
demonstration project as described in the 
eligible entity’s application under sub-
section (b); 
‘‘(ii) commitment and ability to effec-
tively finance the demonstration project; 
‘‘(iii) ability to provide administrative 
capability and the expertise to evaluate 
student progress based on measures other 
than credit hours or clock hours; 
‘‘(iv) history of compliance with the 
requirements of this Act; 
‘‘(v) commitment to work with the 
Secretary to evaluate the demonstration 
project and the impact of the demonstra-
tion project under subsection (g)(2); 
‘‘(vi) commitment and ability to as-
sess student learning through a third 
party, as applicable; 
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‘‘(vii) commitment of the accrediting 
agency or association of the eligible entity 
to establish and enforce the standards de-
scribed in subsection (c); and 
‘‘(viii) commitment to collaboration 
with an employer to determine how the 
demonstration project will meet employer 
needs; 
‘‘(C) ensure the selection of a diverse 
group of eligible entities with respect to size, 
mission, student population, and geographic 
distribution; 
‘‘(D) not limit the types of programs of 
study or courses of study approved for partici-
pation in a demonstration project; and 
‘‘(E) not select an eligible entity that, for 
1 or both of the preceding 2 fiscal years— 
‘‘(i) was under probation or an equiv-
alent status from the accrediting agency or 
association of the eligible entity; and 
‘‘(ii) was under sanction from the au-
thorization agency of the State in which 
the eligible entity is located. 
‘‘(e) WAIVERS AND OTHER FLEXIBILITY.— 
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‘‘(1) IN GENERAL.—With respect to any eligible 
entity selected to carry out a demonstration project 
under this section, the Secretary may— 
‘‘(A) waive any requirements of the provi-
sions of law (including any regulations promul-
gated under such provisions) listed in para-
graph (2) for which the eligible entity has pro-
vided a reason for waiving under subsection 
(b)(4)(J); or 
‘‘(B) provide other flexibility, but not 
waive, any requirements of the provisions of law 
(including any regulations promulgated under 
such provisions) listed in paragraph (3) for 
which the eligible entity has provided a reason 
with which the Secretary agrees for such flexi-
bility under subsection (b)(4)(J). 
‘‘(2) PROVISIONS
ELIGIBLE
FOR
WAIVERS.— 
The Secretary may waive the following under para-
graph (1)(A): 
‘‘(A) Subparagraphs (A) and (B) of section 
102(a)(3). 
‘‘(B) Section 484(l)(1). 
‘‘(3) 
PROVISIONS
ELIGIBLE
FOR
FLEXI-
BILITY.—The Secretary may provide the flexibility 
described in paragraph (1)(B) with respect to the re-
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quirements under provisions in title I, part F of this 
title, or this part, that inhibit the operation of a 
competency-based education program, relating to the 
following: 
‘‘(A) Documenting attendance. 
‘‘(B) Weekly academic activity. 
‘‘(C) Minimum weeks of instructional time. 
‘‘(D) Requirements for credit hour or clock 
hour equivalencies if an institution proposes a 
measure clearly defined in its application that 
accounts for the academic intensity of study. 
‘‘(E) Requirements for regular and sub-
stantive interaction with the instructor. 
‘‘(F) Definitions of the terms ‘academic 
year’, ‘full-time student’, ‘part-time student’, 
‘term’ (including ‘standard term’, ‘non-term’, 
and ‘non-standard term’), ‘satisfactory aca-
demic progress’, ‘educational activity’, ‘program 
of study’, and ‘payment period’. 
‘‘(G) Methods of disbursing student finan-
cial aid by institutions of higher education se-
lected, as of the date of enactment of the Em-
powering Learners through Competency-Based 
Education Act, as experimental sites under sec-
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tion 487A(b)(3) to carry out competency-based 
education programs. 
‘‘(f) NOTIFICATION.—Not later than 9 months after 
the date of enactment of the Empowering Learners 
through Competency-Based Education Act, the Secretary 
shall make available to the authorizing committees and the 
public a list of eligible entities selected to carry out a dem-
onstration project under this section, which shall include 
for each such eligible entity— 
‘‘(1) the specific waiver or other flexibility from 
statutory or regulatory requirements offered under 
subsection (e); and 
‘‘(2) a description of the competency-based edu-
cation programs, and its associated accreditation 
standards, to be offered under the project. 
‘‘(g) EVALUATION AND REPORT.— 
‘‘(1) EVALUATION.—The Secretary shall evalu-
ate the demonstration programs authorized under 
this section on an annual basis. Such evaluations 
specifically shall review— 
‘‘(A) the extent to which the institution, 
has met the goals set forth in its application to 
the Secretary; 
‘‘(B) the number and types of students 
participating in the programs offered, including 
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the progress of participating students toward 
recognized certificates or degrees and the extent 
to which participation in such programs in-
creased; 
‘‘(C) issues related to student financial as-
sistance for competency-based education; and 
‘‘(D) the extent to which statutory or regu-
latory requirements not waived under the dem-
onstration program present difficulties for stu-
dents or institutions. 
‘‘(2) REPORT.—No later than 1 year after the 
conclusion of the demonstration program, the Sec-
retary shall provide a final report to the authorizing 
committees regarding— 
‘‘(A) the demonstration programs author-
ized under this section; 
‘‘(B) the number and types of students re-
ceiving assistance under this title for instruc-
tion leading to a recognized credential, certifi-
cate, or degree, including the progress of such 
students toward recognized credential, certifi-
cate, and the degree to which participation in 
such programs leading to such certificates in-
creased; 
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‘‘(C) identified policies that present im-
pediments to the development and use of com-
petency-based education; and 
‘‘(D) any new understanding of com-
petency and competency-based education and 
recommendations on how the definitions of such 
terms should be modified. 
‘‘(h) OVERSIGHT.—In conducting the demonstration 
program authorized under this section, the Secretary 
shall, on a continuing basis— 
‘‘(1) assure compliance of institutions with the 
requirements of this title (other than the sections 
and regulations that are waived under subsections 
(b)(2) and (b)(3)(D)); and 
‘‘(2) provide technical assistance;’’. 
SEC. 7. RULES OF CONSTRUCTION. 
Nothing in this Act shall prevent a program that is 
an eligible program as of the date of enactment of the 
Empowering Learners through Competency-Based Edu-
cation Act, including an eligible program that met the re-
quirements of a direct-assessment program under section 
481(b)(4) (as in effect the day before the date of enact-
ment of this Act), from continuing to be an eligible pro-
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gram during the period that such program meets the re-
quirements under the Higher Education of Act 1965. 
Æ 
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