Title: Student Loan Reform Act of 2022
Policy area: Education

Summary:
Student Loan Reform Act of 2022
This bill makes various changes to the federal student loan system, including by imposing a penalty on institutions of higher education for borrowers who default on student loans and prohibiting new Federal Direct PLUS Loans from being made to student loan borrowers (with an exception for parent borrowers and covered health care students) on or after July 1, 2023. The bill also addresses expressive activities (e.g., peacefully assembling, distributing literature, or carrying signs) on campuses.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4897 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  2d Session
                                S. 4897

          To make reforms at institutions of higher education.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 20, 2022

  Mr. Cotton introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
          To make reforms at institutions of higher education.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Loan Reform Act of 2022''.

SEC. 2. PLUS LOAN REFORMS.

    (a) In General.--Section 455(a) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(a)) is amended by adding at the end the following:
            ``(4) Termination and restriction of authority to make 
        federal direct plus loans.--
                    ``(A) Termination of authority to make federal 
                direct plus loans to graduate or professional students 
                who are not covered healthcare students.--
                Notwithstanding any provision of this part or part B, 
                for any period of instruction beginning on or after 
                July 1, 2023, a graduate or professional student 
                (except for a covered healthcare student) shall not be 
                eligible to receive a Federal Direct PLUS Loan under 
                this part for the student's graduate or professional 
                studies.
                    ``(B) Exception for parent borrowers and covered 
                healthcare students.--Notwithstanding any provision of 
                this part or part B, for any period of instruction 
                beginning on or after July 1, 2023 and for any parent 
                borrower of a Federal Direct PLUS loan or any covered 
                healthcare student--
                            ``(i) the maximum annual amount of any 
                        Federal Direct PLUS Loan shall not exceed 
                        $10,000; and
                            ``(ii) the maximum aggregate lifetime 
                        amount of any Federal Direct PLUS Loans shall 
                        not exceed $40,000.
                    ``(C) Covered healthcare student.--In this 
                paragraph, the term `covered healthcare student' 
                means--
                            ``(i) a student who is in a course of study 
                        to--
                                    ``(I) become a Doctor of Allopathic 
                                Medicine, Doctor of Osteopathic 
                                Medicine, Doctor of Dentistry, Doctor 
                                of Optometry, Doctor of Podiatric 
                                Medicine, Doctor of Naturopathic 
                                Medicine, Doctor of Naturopathy, Doctor 
                                of Veterinary Medicine, Doctor of 
                                Pharmacy, or Doctor of Chiropractic; or
                                    ``(II) earn a doctoral degree in 
                                clinical psychology or a masters or 
                                doctoral degree in health 
                                administration; and
                            ``(ii) a student who is in a course of 
                        study to become a nurse who will have the same 
                        scope of practice as a doctor or degree program 
                        described in clause (i).''.
    (b) Report.--
            (1) In general.--By not later than 3 years after the date 
        of enactment of this Act, the Secretary of Education shall 
        submit a report to Congress offering recommendations on other 
        critical STEM-based professions with a high return on 
        investment for which graduate and professional students should 
        be allowed to access Federal Direct PLUS Loans under part D of 
        title IV of the Higher Education Act of 1965 (20 U.S.C.1087a et 
        seq.) for their graduate and professional studies.
            (2) Considerations.--In carrying out paragraph (1), the 
        Secretary shall consider--
                    (A) how expanding Federal Direct PLUS Loans to 
                graduate and professional students as described in 
                paragraph (1) would benefit low-income students; and
                    (B) how Congress could index the maximum amount of 
                Federal Direct PLUS Loans for each graduate or 
                professional student borrower to the median earnings 
                for graduates of the borrower's program of study at the 
                borrower's institution of higher education, or the 
                borrower's program of study at a peer institution of 
                higher education.
            (3) Definition of stem-based.--In this subsection, the term 
        ``STEM-based'' means based in science, technology, engineering, 
        or mathematics.

SEC. 3. LOAN DEFAULT PENALTY.

    Section 454 of the Higher Education Act of 1965 (20 U.S.C. 
1087d(a)) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (5), by striking ``and'' after the 
                semicolon;
                    (B) by redesignating paragraph (6) as paragraph 
                (8); and
                    (C) by inserting after paragraph (5) the following:
            ``(6) provide that the institution accepts the loan default 
        penalty requirements under subsection (d);''; and
            (2) by adding at the end the following:
    ``(d) Loan Default Penalty Requirements.--
            ``(1) In general.--Beginning with the second fiscal year 
        that begins after the date of enactment of the Student Loan 
        Reform Act of 2022, and each succeeding fiscal year, each 
        institution of higher education participating in the direct 
        student loan program under this part shall remit to the 
        Secretary, at such times as the Secretary may specify, a 
        student loan default penalty, as determined under paragraph 
        (2).
            ``(2) Student loan default penalty.--For each fiscal year, 
        the student loan default penalty shall be an amount equal to 25 
        percent of the total amount of loans under this part received 
        for attendance at the institution--
                    ``(A) that entered into default loan status in the 
                previous fiscal year;
                    ``(B) for which a borrower entered default loan 
                status for the first time; and
                    ``(C) for which the borrower did not exit default 
                loan status within the first 60 days after entering 
                such status.''.

SEC. 4. INSTITUTIONAL RESPONSIBILITY FOR LOAN REPAYMENT.

    Section 454 of the Higher Education Act of 1965 (20 U.S.C. 
1087d(a)), as amended by section 3, is further amended--
            (1) in subsection (a), by inserting after paragraph (6) the 
        following:--
            ``(7) provide that the institution accepts the 
        institutional responsibility guarantee requirements under 
        subsection (e); and'';
            (2) by adding at the end the following:
    ``(e) Institutional Responsibility Guarantee.--
            ``(1) In general.--Beginning with respect to loans under 
        this part that are disbursed during the first award year that 
        begins after the date of enactment of the Student Loan Reform 
        Act of 2022, and each succeeding fiscal year, each institution 
        of higher education participating in the Direct student loan 
        program under this part shall provide a written agreement to 
        the Secretary asserting that the institution will remit to the 
        Secretary, at such times as the Secretary may specify, an 
        institutional responsibility payment, as determined under 
        paragraph (2).
            ``(2) Institutional responsibility payment.--The 
        institutional responsibility payment shall be, for each 
        borrower who was enrolled in the institution, an amount equal 
        to the lesser of--
                    ``(A) a percentage of the total outstanding balance 
                of that borrower that was received for attendance at 
                the institution by that borrower that is equal to 1 
                percent for each $1000 of the total amount under this 
                part received for attendance at the institution by that 
                borrower; or
                    ``(B) 50 percent of the total outstanding balance 
                of that borrower that was received under this part for 
                attendance at the institution by that borrower.
            ``(3) Use of institutional responsibility payment.--The 
        Secretary shall apply all of an institutional responsibility 
        payment received under this subsection for a borrower to the 
        outstanding Direct student loan obligation of such student, and 
        shall notify the student of the reduction in the balance of the 
        student's Direct student loan obligations.
            ``(4) Total outstanding balance.--In this subsection, the 
        term `total outstanding balance' means the total amount of 
        loans under this part--
                    ``(A) that have gone into default status and remain 
                unpaid after a period of 10 years or more; and
                    ``(B) that remain unpaid after the period described 
                in subparagraph (A) and after the Secretary has 
                exhausted attempts to recover repayment from the 
                borrower, including through wage garnishment under 
                section 488A, an administrative offset under section 
                3716 of title 31, United States Code, a Federal salary 
                offset, or any other legal means through which the 
                Secretary may recover repayment of Federal student 
                loans.''.

SEC. 5. LIMIT ON ADMINISTRATIVE STAFF.

    (a) Program Participation Agreement.--Section 487(a) of the Higher 
Education Act of 1965 (20 U.S.C. 1094(a)) is amended by adding at the 
end the following:
            ``(30) The institution will agree to the limit on 
        administrative staff requirements described in section 487C.''.
    (b) Limit on Administrative Staff.--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 487B the following:

``SEC. 487C. LIMIT ON ADMINISTRATIVE STAFF.

    ``(a) Definitions.--In this section:
            ``(1) Administrative staff.--The term `administrative 
        staff'--
                    ``(A) means staff whose duties are primarily non-
                academic, non-instructional, and non-research;
                    ``(B) includes any institutional support staff, 
                such as human resources, marketing, public relations, 
                government relations, executive, administrative, or 
                managerial staff;
                    ``(C) includes student services staff, such as 
                diversity, equity, and inclusion staff;
                    ``(D) includes members of the academic 
                administration, such as deans or provosts; and
                    ``(E) excludes grounds and maintenance staff, 
                cafeteria staff, healthcare practitioners, campus 
                security, religious clergy supported by the 
                institution, and information technology support staff.
            ``(2) Covered institution.--
                    ``(A) In general.--The term `covered institution'--
                            ``(i) means an institution that--
                                    ``(I) charged an amount for 
                                undergraduate tuition and fees equal to 
                                or greater than $20,000 for an academic 
                                year after the date of enactment of the 
                                Student Loan Reform Act of 2022, as 
                                determined by the Secretary on an 
                                annual basis; and
                                    ``(II) for the first covered year, 
                                had 200 or more individuals serving as 
                                administrative staff; and
                            ``(ii) excludes--
                                    ``(I) an institution that is 
                                controlled by or that is closely 
                                identified with the tenets of a 
                                particular religious organization, as 
                                described in section 106.12(c) of title 
                                34, Code of Federal Regulations (as in 
                                effect on the date of enactment of the 
                                Student Loan Reform Act of 2022); and
                                    ``(II) an institution that is a 
                                medical school, as determined by the 
                                Secretary.
                    ``(B) Special rule.--If an institution charges 
                separate amounts of undergraduate tuition and fees and 
                for in-State and out-of-State students, the amount of 
                tuition and fees for the purposes of this paragraph 
                shall be determined based on the amount that is an 
                average of in-State and out-of-State undergraduate 
                tuition and fees.
            ``(3) First covered year.--The term `first covered year', 
        when used with respect to a covered institution, means the 
        first academic year after the date of enactment of the Student 
        Loan Reform Act of 2022 for which the institution's 
        undergraduate tuition and fees exceeded $20,000, as determined 
        in accordance with paragraph (2).
    ``(b) In General.--Beginning for the second academic year after the 
date of enactment of the Student Loan Reform Act of 2022, a covered 
institution that participates in a program under this title shall be 
required--
            ``(1) each year of a school's participation in a program 
        under this title, to reduce 10 percent of administrative staff 
        at the institution, as compared to the total amount of such 
        administrative staff at the institution in the first covered 
        year, until the completion of the 5th year of such reductions, 
        at which time the institution shall be required to demonstrate 
        to the Secretary that the institution has reduced 50 percent of 
        the administrative staff at the institution, as compared to the 
        administrative staff at the institution in the first covered 
        year;
            ``(2) to ensure that after the completion of the 5-year 
        period described in paragraph (1), the institution shall not 
        increase the number of administrative staff at the institution 
        by more than 1 percent annually for the remainder of the 
        institution's participation in a program under this title;
            ``(3) to eliminate administrative staff in the order 
        specified under subsection (c); and
            ``(4) to submit an annual certification to the Secretary 
        asserting that the institution meets the requirements of 
        paragraphs (1), (2), and (3).
    ``(c) Priority for Administrative Staff Reductions.--An institution 
shall reduce administrative staff in the following order:
            ``(1) First, reducing diversity, equity, and inclusion 
        staff by not less than 95 percent.
            ``(2) Second, reducing executive or management staff.
            ``(3) Third, reducing human resources staff.''.

SEC. 6. AFFIRMATIVE ACTION.

    (a) Institution of Higher Education.--The term ``institution of 
higher education'' has the meaning given that term in section 102 of 
the Higher Education Act of 1965 (20 U.S.C. 1002).
    (b) Prohibition on Preferential Treatment or Discrimination.--An 
institution of higher education receiving Federal funds shall not grant 
preferential treatment to, or discriminate against, any individual or 
group on the basis of race, color, ethnicity, or national origin, 
including treatment or discrimination related to employment and student 
admissions.

SEC. 7. CRITICAL RACE THEORY.

    (a) Definitions.--
            (1) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002).
            (2) Race-based theory.--The term ``race-based theory'' 
        means a theory that--
                    (A) any race is inherently superior or inferior to 
                any other race;
                    (B) the United States is a fundamentally racist 
                country;
                    (C) the Declaration of Independence or the 
                Constitution of the United States is a fundamentally 
                racist document;
                    (D) an individual's moral worth is determined by 
                the race of the individual;
                    (E) an individual, by virtue of the race of the 
                individual, is inherently racist or oppressive, whether 
                consciously or unconsciously; or
                    (F) an individual, because of the race of the 
                individual, bears responsibility for the actions 
                committed by members of the race of the individual.
    (b) Prohibition on Award of Funds to Certain Institutions of Higher 
Education.--No Federal funds may be awarded to an institution of higher 
education if such institution compels teachers or students to affirm, 
adhere to, adopt, or profess race-based theories or beliefs contrary to 
title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.).
    (c) Rules of Construction.--
            (1) Protected speech not restricted.--Nothing in this 
        section shall be construed to restrict the speech of a student, 
        a teacher, or any other individual outside of an instructional 
        setting of an institution of higher education.
            (2) Access to materials for the purpose of research or 
        independent study.--Nothing in this section shall be construed 
        to prevent an individual from accessing materials that advocate 
        race-based theories for the purpose of research or independent 
        study.

SEC. 8. EXCISE TAXES ON CERTAIN COLLEGES AND UNIVERSITIES.

    (a) Excise Tax on Certain Large Private College and University 
Endowments.--
            (1) In general.--Subchapter H of chapter 42 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following new section:

``SEC. 4969. EXCISE TAX ON CERTAIN LARGE PRIVATE COLLEGE AND UNIVERSITY 
              ENDOWMENTS.

    ``(a) Tax Imposed.--There is hereby imposed on each specified 
applicable educational institution for the taxable year a tax equal to 
1 percent of the aggregate fair market value of the assets of the 
institution at the end of the preceding taxable year.
    ``(b) Specified Applicable Educational Institution.--For purposes 
of this subchapter, the term `specified applicable educational 
institution' means any applicable educational institution, other than 
an institution which is religious in nature, the aggregate fair market 
value of the assets of which at the end of the preceding taxable year 
(other than those assets which are used directly in carrying out the 
institution's exempt purpose) is at least $2,500,000,000.
    ``(c) Other Terms.--For purposes of this section--
            ``(1) Assets.--The rules of section 4968(d) shall apply.
            ``(2) Student.--The rules of section 4968(b)(2) shall 
        apply.''.
            (2) Clerical amendment.--The table of sections for 
        subchapter H of chapter 42 of the Internal Revenue Code of 1986 
        is amended by adding at the end the following new item:

``Sec. 4969. Excise tax on certain large private college and university 
                            endowments.''.
    (b) Failure To Distribute Endowment Assets.--
            (1) In general.--Subchapter H of chapter 42 of the Internal 
        Revenue Code of 1986, as amended by subsection (a), is amended 
        by adding at the end the following new section:

``SEC. 4970. FAILURE TO DISTRIBUTE ENDOWMENT ASSETS.

    ``(a) Tax Imposed.--There is hereby imposed on the undistributed 
excess endowment amount of each specified applicable educational 
institution for the taxable year, which has not been distributed before 
the first day of the second (or any succeeding) taxable year following 
such taxable year (if such first day falls within the taxable period), 
a tax equal to 30 percent of such undistributed excess endowment amount 
remaining undistributed at the beginning of such second (or succeeding) 
taxable year. The tax imposed by this section shall not apply to the 
undistributed excess endowment amount of a specified applicable 
educational institution to the extent that the foundation failed to 
distribute any amount solely because of an incorrect valuation of 
assets, if--
            ``(1) the failure to value the assets properly was not 
        willful and was due to reasonable cause,
            ``(2) such amount is distributed as qualifying 
        distributions by the institution during the allowable 
        distribution period,
            ``(3) the institution notifies the Secretary that such 
        amount has been distributed as qualifying distributions to 
        correct such failure, and
            ``(4) such distribution is treated, by reason of subsection 
        (e)(2), as made out of the undistributed income for the taxable 
        year for which a tax would (except for this paragraph) have 
        been imposed under this subsection.
    ``(b) Additional Tax.--In any case in which an initial tax is 
imposed under subsection (a) on the undistributed excess endowment 
amount of any specified applicable educational institution for any 
taxable year, if any portion of such amount remains undistributed at 
the close of the taxable period, there is hereby imposed a tax equal to 
100 percent of the amount remaining undistributed at such time.
    ``(c) Undistributed Excess Endowment Amount.--For purposes of this 
section, the term `undistributed excess endowment amount' means, with 
respect to any specified applicable educational institution for any 
taxable year as of any time, the amount by which--
            ``(1) the distributable amount for such taxable year, 
        exceeds
            ``(2) the qualifying distributions made before such time 
        out of such distributable amount.
    ``(d) Distributable Amount.--For purposes of this section, the term 
`distributable amount' means, with respect to any specified applicable 
educational institution for any taxable year, an amount equal to 5 
percent of the aggregate fair market value of the assets of the 
institution at the end of the preceding taxable year. The rules of 
section 4968(d) shall apply for purposes of this section.
    ``(e) Qualifying Distributions.--For purposes of this section--
            ``(1) In general.--The term `qualifying distribution' has 
        the meaning given such term in section 4942(g).
            ``(2) Other rules.--The rules of subsections (h) and (i) of 
        section 4942 shall apply.
    ``(f) Taxable Period; Allowable Distribution Period.--The rules of 
paragraphs (1) and (2) of section 4942(j) shall apply for purposes of 
this section.''.
            (2) Clerical amendment.--The table of sections for 
        subchapter H of chapter 42 of the Internal Revenue Code of 
        1986, as amended by subsection (a), is further amended by 
        adding at the end the following new item:

``Sec. 4970. Failure to distribute endowment assets.''.
    (c) Establishment of Excise Tax on Excessive Tuition.--
            (1) In general.--Subchapter H of chapter 42 of the Internal 
        Revenue Code of 1986, as amended by subsections (a) and (b), is 
        amended by adding at the end the following new section:

``SEC. 4970A. EXCISE TAX ON EXCESSIVE TUITION.

    ``(a) Tax Imposed.--There is hereby imposed on each applicable 
institution of higher education for the taxable year a tax equal to 20 
percent of the total amount of excessive tuition received by such 
applicable institution of higher education during such taxable year.
    ``(b) Excessive Tuition.--
            ``(1) In general.--In this section, the term `excessive 
        tuition' means, with respect to any individual enrolled at the 
        undergraduate level in the applicable institution of higher 
        education during any taxable year, the amount (if any) equal to 
        the excess of--
                    ``(A) the amount of undergraduate tuition and fees 
                paid by such individual to such applicable institution 
                of higher education during such taxable year, over
                    ``(B) $40,000.
            ``(2) Tuition and fees.--For purposes of paragraph (1)(A), 
        the term `tuition and fees' has the same meaning given the term 
        `qualified tuition and related expenses' under section 
        25A(f)(1).
    ``(c) Applicable Institution of Higher Education.--In this section, 
the term `applicable institution of higher education' means an 
institution of higher education as defined in section 102 of the Higher 
Education Act of 1965 (20 U.S.C. 1002) that is not--
            ``(1) an institution which is controlled by or which is 
        closely identified with the tenets of a particular religious 
        organization; or
            ``(2) a medical school, as described in section 
        487C(a)(2)(A)(ii)(II) of the Higher Education Act of 1965.''.
            (2) Clerical amendment.--The table of sections for 
        subchapter H of chapter 42 of such Code, as amended by 
        subsections (a) and (b), is amended by adding at the end the 
        following new item:

``Sec. 4970A. Excise tax on excessive tuition.''.
    (d) Transfer of Funds.--The Secretary of the Treasury (or such 
Secretary's delegate) shall from time to time transfer from the general 
fund of the Treasury to the Secretary of Commerce amounts equal to the 
increase in revenues by reason of the enactment of subsections (a), 
(b), and (c), for the purpose of expanding opportunities relating to 
employer-led apprenticeship programs and on-the-job workforce training. 
Such funds shall be available until expended to carry out such 
activities through grants, cooperative agreements, contracts and other 
arrangements, with States and other appropriate entities.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of enactment of this 
Act.

SEC. 9. BAN ON REQUIRING FAFSA FOR FAMILIES WHO ARE NOT USING FEDERAL 
              STUDENT AID.

    Section 487(a) of the Higher Education Act of 1965 (20 U.S.C. 
1094(a)), as amended by section 5, is further amended by adding at the 
end the following:
            ``(31) The institution will not require or pressure any 
        prospective, accepted, or enrolled student at the institution 
        to submit a Free Application for Federal Student Aid under 
        section 483 if such student does not wish to apply for or 
        accept Federal student aid.''.

SEC. 10. CAMPUS FREE SPEECH RESTORATION.

    (a) Protection of Student Speech and Association Rights.--Section 
112(a) of the Higher Education Act of 1965 (20 U.S.C. 1011a(a)) is 
amended--
            (1) by redesignating paragraph (2) as paragraph (4); and
            (2) by inserting after paragraph (1) the following:
    ``(2) It is the sense of Congress that--
            ``(A) every individual should be free to profess, and to 
        maintain, the opinion of such individual in matters of religion 
        or philosophy, and that professing or maintaining such opinion 
        should in no way diminish, enlarge, or affect the civil 
        liberties or rights of such individual on the campus of an 
        institution of higher education; and
            ``(B) no public institution of higher education directly or 
        indirectly receiving financial assistance under this Act should 
        limit religious expression, free expression, or any other 
        rights provided under the First Amendment to the Constitution 
        of the United States.
    ``(3) It is the sense of Congress that--
            ``(A) free speech zones and restrictive speech codes are 
        inherently at odds with the freedom of speech guaranteed by the 
        First Amendment to the Constitution of the United States;
            ``(B) bias reporting systems are susceptible to abuses that 
        may put them at odds with the freedom of speech guaranteed by 
        the First Amendment to the Constitution of the United States; 
        and
            ``(C) no public institution of higher education directly or 
        indirectly receiving financial assistance under this Act should 
        restrict the speech of such institution's students through 
        improperly restrictive zones, codes, or bias reporting 
        systems.''.
    (b) Campus Speech Policies at Institutions of Higher Education.--
Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et. seq.) 
is amended--
            (1) in section 487(a), as amended by sections 5 and 9, by 
        adding at the end the following:
            ``(32) In the case of an institution that is--
                    ``(A) a public institution, the institution will 
                comply with the expressive activity protections 
                described in section 493E; and
                    ``(B) not a public institution, the institution 
                will comply with the policies in section 493F.''; and
            (2) in part G, by inserting after section 493D the 
        following:

``SEC. 493E. CAMPUS SPEECH POLICIES AT PUBLIC UNIVERSITIES.

    ``(a) Definition of Expressive Activities.--
            ``(1) In general.--In this section, the term `expressive 
        activity' includes--
                    ``(A) peacefully assembling, protesting, speaking, 
                or listening;
                    ``(B) distributing literature;
                    ``(C) carrying a sign;
                    ``(D) circulating a petition; or
                    ``(E) other expressive rights guaranteed under the 
                First Amendment to the Constitution of the United 
                States.
            ``(2) Exclusions.--In this section, the term `expressive 
        activity' does not include unprotected speech (as defined by 
        the precedents of the Supreme Court of the United States).
    ``(b) Expressive Activities at an Institution.--
            ``(1) In general.--Each public institution of higher 
        education participating in a program under this title may not 
        prohibit, subject to paragraph (2), a person from freely 
        engaging in noncommercial expressive activity in a generally 
        accessible outdoor area on the institution's campus if the 
        person's conduct is lawful.
            ``(2) Restrictions.--An institution of higher education 
        described in paragraph (1) may not maintain or enforce time, 
        place, or manner restrictions on an expressive activity in a 
        generally accessible outdoor area of the institution's campus 
        unless the restriction--
                    ``(A) is necessary to achieve a compelling 
                governmental interest;
                    ``(B) is the least restrictive means of furthering 
                that compelling governmental interest;
                    ``(C) is based on published, content-neutral, and 
                viewpoint-neutral criteria;
                    ``(D) leaves open ample alternative channels for 
                communication; and
                    ``(E) provides for spontaneous assembly and 
                distribution of literature.
            ``(3) Application.--The protections provided under 
        paragraph (1) do not apply to expressive activity in an area on 
        an institution's campus that is not a generally accessible 
        outdoor area.
            ``(4) Nonapplication to service academies.--This section 
        shall not apply to an institution of higher education whose 
        primary purpose is the training of individuals for the military 
        services of the United States, or the merchant marine.
    ``(c) Causes of Action.--
            ``(1) Authorization.--The following persons may bring an 
        action in a Federal court of competent jurisdiction to enjoin a 
        violation of subsection (b) or to recover compensatory damages, 
        reasonable court costs, or reasonable attorney fees:
                    ``(A) The Attorney General.
                    ``(B) A person claiming that the person's 
                expressive activity rights, as described in subsection 
                (b)(1), were violated.
            ``(2) Actions.--Notwithstanding any other provision of law, 
        in an action brought under this section, the Federal court 
        shall decide de novo all relevant questions of fact and law, 
        including the interpretation of constitutional, statutory, and 
        regulatory provisions, unless the parties stipulate otherwise. 
        In an action brought under this subsection, if the court finds 
        a violation of subsection (b), the court--
                    ``(A) shall--
                            ``(i) enjoin the violation; and
                            ``(ii) if a person whose expressive 
                        activity rights were violated brought the 
                        action, award the person--
                                    ``(I) not less than $500 for an 
                                initial violation; and
                                    ``(II) if the person notifies the 
                                institution of the violation, $50 for 
                                each day the violation continues after 
                                the notification if the institution did 
                                not act to discontinue the cause of the 
                                violation; and
                    ``(B) may award a prevailing plaintiff--
                            ``(i) compensatory damages;
                            ``(ii) reasonable court costs; or
                            ``(iii) reasonable attorney fees.
    ``(d) Statute of Limitations.--
            ``(1) In general.--Except as provided in paragraph (3), an 
        action under subsection (c) may not be brought later than 1 
        year after the date of the violation.
            ``(2) Continuing violation.--Each day that a violation of 
        subsection (b) continues after an initial violation of 
        subsection (b), and each day that an institution's policy in 
        violation of subsection (b) remains in effect, shall constitute 
        a continuing violation of subsection (b).
            ``(3) Extension.--For a continuing violation described in 
        paragraph (2), the limitation described in paragraph (1) shall 
        extend to 1 year after the date on which the most recent 
        violation occurs.
    ``(e) Federal Review of Speech Policies.--
            ``(1) No eligibility for funds.--
                    ``(A) In general.--No public institution of higher 
                education shall be eligible to receive funds under this 
                Act, including participation in any program under this 
                title, if the Secretary determines that the 
                institution--
                            ``(i) maintains a policy that infringes 
                        upon the expressive rights of students under 
                        the First Amendment to the Constitution of the 
                        United States; or
                            ``(ii) maintains or enforces time, place, 
                        or manner restrictions on an expressive 
                        activity in a generally accessible outdoor area 
                        of the institution's campus that do not comply 
                        with subparagraphs (A) through (E) of 
                        subsection (b)(2).
                    ``(B) Court review.--Notwithstanding any other 
                provision of law, the Secretary's determinations under 
                this subsection shall be reviewed de novo with respect 
                to all relevant questions of fact and law, including 
                the interpretation of constitutional, statutory, and 
                regulatory provisions, unless the parties stipulate 
                otherwise.
            ``(2) Designation of an employee to receive complaints.--
        The Secretary shall designate an employee in the Office of 
        Postsecondary Education of the Department to receive complaints 
        from students or student organizations at a given public 
        institution of higher education, or from any other person or 
        organization, regarding policies at the institution--
                    ``(A) that infringe upon the expressive rights of 
                students under the First Amendment to the Constitution 
                of the United States; or
                    ``(B) that maintain or enforce time, place, or 
                manner restrictions on an expressive activity in a 
                generally accessible outdoor area of the institution's 
                campus that do not comply with subparagraphs (A) 
                through (E) of subsection (b)(2).
            ``(3) Complaint.--A complaint submitted under subparagraph 
        (2)--
                    ``(A) shall include the provision of the 
                institution's policy the complainant believes either 
                infringes upon the expressive rights of students under 
                the First Amendment to the Constitution of the United 
                States or maintains or enforces time, place, or manner 
                restrictions on an expressive activity in a generally 
                accessible outdoor area of the institution's campus 
                that does not comply with subparagraphs (A) through (E) 
                of subsection (b)(2), along with any evidence regarding 
                the operation and enforcement of such policy the 
                complainant deems relevant; and
                    ``(B) may include an argument as to why the policy 
                in question either infringes upon the expressive rights 
                of students under the First Amendment to the 
                Constitution of the United States or maintains or 
                enforces time, place, or manner restrictions on an 
                expressive activity in a generally accessible outdoor 
                area of the institution's campus that does not comply 
                with subparagraphs (A) through (E) of subsection 
                (b)(2).
            ``(4) System of review.--
                    ``(A) First stage review.--
                            ``(i) Request for response.--Not later than 
                        7 days after the date of receipt of a complaint 
                        under paragraph (2), the Secretary shall review 
                        the complaint and request a response to the 
                        complaint from the institution.
                            ``(ii) Institution response.--Not later 
                        than 30 days after the date the Secretary 
                        requests a response under clause (i), the 
                        institution shall--
                                    ``(I) certify to the Secretary that 
                                the institution has entirely withdrawn 
                                the policy that occasioned the 
                                complaint;
                                    ``(II) submit a revised policy for 
                                review by the Secretary; or
                                    ``(III) submit a defense of the 
                                policy that occasioned the complaint.
                            ``(iii) Availability to complainant.--
                                    ``(I) In general.--Not later than 7 
                                days after the date of receipt of a 
                                revised policy or defense of the 
                                original policy as submitted by the 
                                institution pursuant to clause (ii), 
                                the Secretary shall make available to 
                                the complainant a copy of such revised 
                                policy or defense.
                                    ``(II) Response by complainant.--
                                Not later than 60 days after the date 
                                of receipt of a revised policy or 
                                defense of the original policy under 
                                subclause (I), the complainant may 
                                submit to the Secretary a response to 
                                the revised policy or defense of the 
                                original policy.
                                    ``(III) Submission to the 
                                institution of response.--Not later 
                                than 7 days after the date of receipt 
                                of a response under subclause (II), the 
                                Secretary shall submit to the 
                                institution a copy of such response.
                            ``(iv) Determinations.--If the institution 
                        declines to entirely withdraw the policy that 
                        occasioned the complaint and either submits a 
                        revised policy for review or submits a defense 
                        of the policy that occasioned the complaint, 
                        the Secretary shall, not later than 60 days 
                        after the date of the deadline for a response 
                        by the complaint as described in clause 
                        (iii)(II), make one of the following 
                        determinations:
                                    ``(I) Determine that the complaint 
                                in question has insufficient merit to 
                                proceed to Second Stage Review 
                                described in subparagraph (B).
                                    ``(II) Determine that the complaint 
                                in question has sufficient merit to 
                                proceed to Second Stage Review 
                                described in subparagraph (B).
                            ``(v) Notification.--Not later than 7 days 
                        after the date the Secretary makes a 
                        determination under clause (iv), the Secretary 
                        shall notify the institution and the 
                        complainant of such determination.
                            ``(vi) End.--The determination under clause 
                        (iv) shall constitute the end of First Stage 
                        Review.
                    ``(B) Second stage review.--
                            ``(i) In general.--In a Second Stage 
                        Review, the Secretary shall notify the 
                        institution and the complainant of the 
                        commencement of the Second Stage Review, and 
                        shall give the institution the option of 
                        entirely withdrawing the policy that occasioned 
                        the complaint or submitting a revised policy 
                        for review within 30 days of the commencement 
                        of the Second Stage Review. In such 
                        notification submitted to the institution and 
                        complainant, the Secretary shall indicate the 
                        relevant sections of the institution's policy 
                        in question and explain why these sections may 
                        be out of compliance.
                            ``(ii) Determination.--Not later than 90 
                        days from the commencement of the Second Stage 
                        Review, the Secretary shall determine whether 
                        the policy that occasioned the complaint, or 
                        the revised policy submitted during the First 
                        Stage Review, or the revised policy submitted 
                        within the first 30 days of the Second Stage 
                        Review, is in violation of student rights under 
                        the First Amendment to the Constitution of the 
                        United States or of the restrictions on the 
                        regulation of speech by time, place, and manner 
                        set forth in this section, thereby ending 
                        Second Stage Review.
                            ``(iii) Investigation.--During Second Stage 
                        Review, the Secretary may conduct an 
                        investigation in which further information may 
                        be sought or requested from the complainant, 
                        the institution, or any other source the 
                        Secretary determines pertinent.
                            ``(iv) Certification of withdrawal.--At any 
                        point during the Second Stage Review, the 
                        institution in question may certify to the 
                        Secretary that it has entirely withdrawn the 
                        policy that occasioned the complaint, thereby 
                        ending the Second Stage Review.
                            ``(v) Notification and justification.--If 
                        the Secretary determines by the conclusion of 
                        Second Stage Review that the policy that 
                        occasioned the complaint or the revised policy 
                        submitted for review during First Stage Review 
                        or Second Stage Review is consistent with the 
                        expressive rights of students under the First 
                        Amendment to the Constitution of the United 
                        States and the restrictions on the regulation 
                        of speech by time, place, and manner set forth 
                        in this Act--
                                    ``(I) the Secretary shall notify 
                                the complainant and the institution of 
                                such determination not more than 7 days 
                                after the date of the determination; 
                                and
                                    ``(II) the Secretary shall explain 
                                and justify such determination in a 
                                written decision citing relevant legal 
                                precedent, copies of which shall be 
                                sent to the complainant, the 
                                institution, and made available for 
                                public inspection, including for online 
                                reading by the public.
                    ``(C) Determination that institution is out of 
                compliance.--
                            ``(i) In general.--If, upon completion of 
                        the Second Stage Review, the Secretary 
                        determines that the policy that occasioned the 
                        complaint, or the revised policy submitted for 
                        review during the First Stage Review or Second 
                        Stage Review, violates the First Amendment to 
                        the Constitution of the United States or the 
                        restrictions on the regulation of speech set 
                        forth in this section, the Secretary shall 
                        notify the complainant and the institution not 
                        more than 7 days after the date of completion 
                        of Second Stage Review that the institution is 
                        out of compliance with the requirements for 
                        receiving funds under this Act, including 
                        participation in any program under this title, 
                        but will be granted a grace period of 120 days 
                        to return to compliance before being formally 
                        stripped of eligibility.
                            ``(ii) Posting; explanation; final 
                        review.--As part of the notification under 
                        clause (i), the Secretary shall--
                                    ``(I) require the institution to 
                                post the determination of the Secretary 
                                on the website of the institution 
                                within 2 clicks of the homepage, 
                                without a paywall, email login, or 
                                other restriction to access;
                                    ``(II) explain and justify the 
                                determination of the Secretary in a 
                                written decision citing relevant legal 
                                precedent, copies of which shall be 
                                sent to the complainant, the 
                                institution, and made available for 
                                public inspection, including for online 
                                reading by the public; and
                                    ``(III) inform the institution that 
                                Final Review has begun and that the 
                                institution must either certify to the 
                                Secretary that it has entirely 
                                withdrawn the policy that occasioned 
                                the complaint, or submit a revised 
                                policy for review to the Secretary not 
                                later than 60 days after the date of 
                                receipt of notice of the conclusion of 
                                Second Stage Review.
                    ``(D) Final review.--
                            ``(i) In general.--If an institution 
                        submits a revised policy for review as 
                        described in subparagraph (C)(ii)(III), the 
                        Secretary shall review such revised policy and 
                        determine not later than 120 days after the 
                        date of commencement of Final Review whether 
                        the revised policy is consistent with the 
                        expressive rights of students under the First 
                        Amendment to the Constitution of the United 
                        States and with the restrictions on the 
                        regulation of speech by time, place, and manner 
                        set forth in this Act.
                            ``(ii) Determination of compliance.--If the 
                        Secretary determines, as described in clause 
                        (i), that the revised policy is consistent with 
                        the expressive rights of students under the 
                        First Amendment to the Constitution of the 
                        United States and with the restrictions on the 
                        regulation of speech by time, place, and manner 
                        set forth in this Act, the Secretary shall 
                        notify the complainant and the institution of 
                        such determination not more than 7 days after 
                        the date the determination is made, thereby 
                        ending the final Stage Review.
                            ``(iii) Determination of violation.--If the 
                        Secretary determines, as described in clause 
                        (i), that the revised policy violates the 
                        expressive rights of students under the First 
                        Amendment to the Constitution of the United 
                        States or the restrictions on the regulation of 
                        speech by time, place, and manner set forth in 
                        this Act, the Secretary shall--
                                    ``(I) notify the complainant and 
                                the institution of such determination 
                                not more than 7 days after the date the 
                                determination is made, thereby ending 
                                the final Stage Review; and
                                    ``(II) explain and justify the 
                                determination in a written decision 
                                citing relevant legal precedent, copies 
                                of which shall be sent to the 
                                complainant, the institution, and made 
                                available for public inspection, 
                                including for online reading by the 
                                public.
                    ``(E) Loss of eligibility.--
                            ``(i) In general.--If the Secretary 
                        determines, during the Final Stage Review, that 
                        the institution's policy in question violates 
                        the expressive rights of students under the 
                        First Amendment to the Constitution of the 
                        United States or the restrictions on the 
                        regulation of speech by time, place, and manner 
                        set forth in this Act, the Secretary shall--
                                    ``(I) notify the complainant and 
                                the institution not more than 7 days 
                                after the date of the determination 
                                that the institution will lose 
                                eligibility to receive funds under this 
                                Act, including participation in any 
                                program under this title, in accordance 
                                with this subparagraph;
                                    ``(II) notify the institution that 
                                the loss of eligibility shall go into 
                                effect beginning with any student 
                                notified of acceptance for admission to 
                                the institution during the academic 
                                year subsequent to the academic year 
                                during which the determination is made, 
                                and that no restoration of eligibility 
                                for ineligible students in subsequent 
                                academic years will occur prior to the 
                                beginning of the third academic year 
                                subsequent to the academic year during 
                                which the determination is made;
                                    ``(III) explain and justify the 
                                determination in a written decision 
                                citing relevant legal precedent, copies 
                                of which shall be sent to the 
                                complainant, the institution, and made 
                                available for public inspection, 
                                including for online reading by the 
                                public; and
                                    ``(IV) require the institution to 
                                post the determination of the Secretary 
                                on the website of the institution, 
                                within two clicks of the homepage, 
                                without a paywall, email login, or 
                                other restriction to access.
                            ``(ii) Continued eligibility.--Each student 
                        enrolled at the institution during the academic 
                        year in which eligibility is lost as described 
                        in this subparagraph, and each student notified 
                        of acceptance for admission to the institution 
                        during the academic year in which eligibility 
                        is lost as described in this subparagraph, 
                        shall continue to be eligible to participate, 
                        through the institution, in programs funded 
                        under this Act during the 5-year period after 
                        the date of the loss of eligibility.
                    ``(F) Restoration of eligibility.--
                            ``(i) In general.--Not later than 7 days 
                        after the loss of eligibility under 
                        subparagraph (E), the Secretary shall inform 
                        the institution that it may restore 
                        eligibility, either by certifying to the 
                        Secretary that it has entirely withdrawn the 
                        policy that precipitated loss of eligibility, 
                        or by submitting a revised policy for review at 
                        any time following the failure of the Final 
                        Review.
                            ``(ii) Review of revised policy.--The 
                        Secretary shall review a revised policy 
                        submitted for review after the loss of 
                        eligibility and determine not later than 120 
                        days after the date the revised policy is 
                        submitted whether it is consistent with the 
                        expressive rights of students under the First 
                        Amendment to the Constitution of the United 
                        States and with the restrictions on the 
                        regulation of speech by time, place, and manner 
                        set forth in this Act.
                            ``(iii) Investigation.--While conducting a 
                        review to restore eligibility under this 
                        subparagraph, the Secretary may conduct an 
                        investigation in which further information may 
                        be sought or requested from the institution, or 
                        any other source the Secretary determines 
                        pertinent.
                            ``(iv) Written decision.--In making a 
                        determination of whether a revised policy 
                        submitted for review after the loss of 
                        eligibility is either consistent or 
                        inconsistent with the expressive rights of 
                        students under the First Amendment to the 
                        Constitution of the United States and with the 
                        restrictions on the regulation of speech by 
                        time, place, and manner set forth in this Act, 
                        the Secretary shall explain and justify the 
                        determination in a written decision citing 
                        relevant legal precedent, copies of which shall 
                        be sent to the complainant, the institution, 
                        and made available for public inspection, 
                        including for online reading by the public.
                            ``(v) Limit on review.--The Secretary may 
                        conduct not more than 1 review to restore 
                        eligibility for a single institution in any 
                        given academic year.
                            ``(vi) Restoration.--If an institution 
                        certifies to the Secretary that the policy that 
                        precipitated the loss of eligibility has been 
                        entirely withdrawn, or if Secretary determines 
                        that the revised policy submitted for review is 
                        consistent with the expressive rights of 
                        students under the First Amendment to the 
                        Constitution of the United States and with the 
                        restrictions on the regulation of speech by 
                        time, place, and manner set forth in this Act, 
                        the institution's eligibility to receive funds 
                        under this Act, including participation in any 
                        program under this title, shall be restored not 
                        earlier than the beginning of the third 
                        academic year following the year in which 
                        notification of loss of eligibility was 
                        received.
                    ``(G) Good faith representation.--
                            ``(i) In general.--The Secretary shall 
                        inform any institution undergoing review of its 
                        campus speech policies that it expects the 
                        institution to represent its policies, along 
                        with any proposed revisions in such policies, 
                        in good faith.
                            ``(ii) Misrepresentation.--
                                    ``(I) Complaints.--A student, 
                                student organization, or any other 
                                person or organization may file, with 
                                the employee in the Office of 
                                Postsecondary Education of the 
                                Department designated by the Secretary 
                                under paragraph (2) to receive 
                                complaints, a complaint that an 
                                institution has substantially 
                                misrepresented its speech policies, or 
                                withheld information requested by the 
                                Secretary during an investigation, or 
                                attempted to circumvent the review 
                                process by reinstituting a policy under 
                                review in a substantially similar form 
                                without informing the Secretary.
                                    ``(II) Loss of eligibility.--If the 
                                Secretary determines upon 
                                investigation, or after receiving a 
                                complaint under subclause (I), that an 
                                institution has substantially 
                                misrepresented its speech policies, or 
                                withheld information requested by the 
                                Secretary during an investigation, or 
                                attempted to circumvent the review 
                                process by reinstituting a policy under 
                                review in a substantially similar form 
                                without informing the Secretary, the 
                                institution shall lose eligibility to 
                                receive funds under this Act, including 
                                participation in any program under this 
                                title.
                            ``(iii) Loss of eligibility.--If an 
                        institution loses eligibility under clause 
                        (ii), the Secretary shall notify the 
                        institution, not later than 7 days after the 
                        determination, that the loss of eligibility 
                        shall go into effect beginning with any student 
                        notified of acceptance for admission to the 
                        institution during the academic year subsequent 
                        to the academic year during which the 
                        determination is made, and that no restoration 
                        of eligibility for students admitted in 
                        subsequent academic years will occur prior to 
                        the beginning of the third academic year 
                        subsequent to the academic year during which 
                        the determination is made.
    ``(f) Retaliation Prohibited.--
            ``(1) In general.--No person may intimidate, threaten, 
        coerce, or discriminate against any individual because the 
        individual has made a report or complaint, testified, assisted, 
        or participated or refused to participate in any manner in an 
        investigation, proceeding, or hearing under this section.
            ``(2) Specific circumstances.--
                    ``(A) Exercise of first amendment rights.--The 
                exercise of rights protected under the First Amendment 
                to the Constitution of the United States does not 
                constitute retaliation prohibited under paragraph (1).
                    ``(B) Code of conduct violation for materially 
                false statement.--Charging an individual with a code of 
                conduct violation for making a materially false 
                statement in bad faith in the course of a grievance 
                proceeding under this section does not constitute 
                retaliation prohibited under paragraph (1). A 
                determination regarding responsibility, alone, is not 
                sufficient to conclude that any party made a materially 
                false statement in bad faith.

``SEC. 493F. CAMPUS SPEECH POLICIES AT PRIVATE UNIVERSITIES.

    ``(a) In General.--Each private institution of higher education 
eligible to receive funds under this Act, including any program under 
this title, shall--
            ``(1) post in one place on the website of the institution 
        all policies that pertain to the protection and regulation of 
        the expressive rights of students, including the right to 
        submit a complaint under this section, within 2 clicks of the 
        homepage, without a paywall, email login, or other restriction 
        to access;
            ``(2) include a copy of such policies in a handbook 
        distributed to new students; and
            ``(3) send a copy of--
                    ``(A) such policies to the employee of the 
                Department designated by the Secretary to receive such 
                policies; and
                    ``(B) any updates to such policies to such employee 
                not later than 60 days after the date of a change to 
                such policies.
    ``(b) Responsibility for Full Policy Disclosure.--Each private 
institution of higher education described in subsection (a) shall 
include with the copy of the policies described in subsection (a)--
            ``(1) a statement affirming that all policies pertinent to 
        the protection and regulation of the expressive rights of 
        students have been disclosed in the manner required by this 
        section, along with an acceptance of contractual obligation to 
        publicly disclose all such policies; and
            ``(2) a statement affirming that publication of such 
        policies as required by this section establishes a contractual 
        obligation on the part of the institution to its students to 
        maintain and enforce the disclosed policies, and only those 
        policies, in matters pertaining to the protection and 
        regulation of the expressive rights of students.
    ``(c) Cause of Action.--
            ``(1) Authorization.--A student claiming that a private 
        institution of higher education in which the student is 
        enrolled has violated any requirement or contractual obligation 
        imposed by this section may bring an action in a Federal court 
        of competent jurisdiction to enjoin such violation or to 
        recover compensatory damages, reasonable court costs, or 
        reasonable attorney fees.
            ``(2) Actions.--Notwithstanding any other provision of law, 
        in an action brought under this subsection, the Federal court 
        shall decide de novo all relevant questions of fact and law, 
        including the interpretation of constitutional, statutory, and 
        regulatory provisions, unless the parties stipulate otherwise. 
        In an action brought under this subsection, if the court finds 
        a violation of subsection (b), the court--
                    ``(A) shall--
                            ``(i) enjoin the violation; and
                            ``(ii) award the student--
                                    ``(I) not less than $500 for an 
                                initial violation; and
                                    ``(II) if the student notifies the 
                                institution of the violation, $50 for 
                                each day the violation continues after 
                                the notification if the institution did 
                                not act to discontinue the cause of the 
                                violation; and
                    ``(B) may award a prevailing plaintiff--
                            ``(i) compensatory damages;
                            ``(ii) reasonable court costs; or
                            ``(iii) reasonable attorney fees.
    ``(d) Secretarial Requirements.--
            ``(1) Designation of an employee.--The Secretary shall 
        designate an employee in the Office of Postsecondary Education 
        in the Department who shall--
                    ``(A) receive and compile updated copies of all 
                policies pertaining to the protection and regulation of 
                the expressive rights of students at private 
                institutions of higher education that receive funds 
                under this section, including any programs under this 
                title;
                    ``(B) preserve all records of such policies for a 
                period of not less than 10 years and make such 
                policies, and the dates they were disclosed, modified, 
                or withdrawn, available for public inspection, 
                including for online reading by the public;
                    ``(C) receive complaints from students, student 
                organizations, or from any other person or 
                organization, that believes a private institution of 
                higher education has not disclosed a policy pertaining 
                to the protection and regulation of the expressive 
                rights of students as required by this section, is 
                enforcing a policy pertaining to the expressive rights 
                of students that has not been disclosed as required by 
                this section, or has failed to make and publish a 
                statement affirming contractual responsibility for full 
                policy disclosure, or affirming contractual 
                responsibility for the enforcement of speech policies, 
                as required by this section;
                    ``(D) not more than 7 days after the date of 
                receipt of a complaint under subparagraph (C), review 
                the complaint and request a response from the 
                institution;
                    ``(E) undertake an investigation, in response to a 
                complaint under subparagraph (C) or at the Secretary's 
                independent initiative, to determine whether a private 
                institution of higher education has failed to disclose 
                a policy pertaining to the protection and regulation of 
                the expressive rights of students as required by this 
                section, is enforcing a policy pertaining to the 
                expressive rights of students that has not been 
                disclosed as required by this section, or has failed to 
                make and publish a statement affirming contractual 
                responsibility for full policy disclosure, or affirming 
                contractual responsibility for the enforcement of 
                speech policies, as required by this section; and
                    ``(F) determine, not later than 120 days after the 
                date of receipt of a complaint or 120 days after the 
                date of the start of an investigation opened at the 
                Secretary's independent initiative, whether the private 
                institution of higher education in question has failed 
                to disclose a policy pertaining to the protection and 
                regulation of the expressive rights of students as 
                required by this section, is enforcing a policy 
                pertaining to the expressive rights of students that 
                has not been disclosed as required by this section, or 
                has failed to make and publish a statement affirming 
                contractual responsibility for full speech policy 
                disclosure, or affirming contractual responsibility for 
                the enforcement of speech policies, as required by this 
                section.
            ``(2) Loss of eligibility.--
                    ``(A) In general.--If the Secretary determines that 
                a private institution of higher education has failed to 
                disclose a policy pertaining to the protection and 
                regulation of the expressive rights of students as 
                required by this section, is enforcing a policy 
                pertaining to the expressive rights of students that 
                has not been disclosed as required by this section, or 
                has failed to make and publish a statement affirming 
                contractual responsibility for full speech policy 
                disclosure, or affirming contractual responsibility for 
                the enforcement of speech policies, as required by this 
                section, the Secretary shall notify the institution 
                and, if applicable, the complainant, not more than 7 
                days after the date of such determination, that the 
                institution is out of compliance with the requirements 
                for receiving funds under this Act, including 
                participation in any program under this title, but will 
                be granted a grace period of 60 days to return to 
                compliance before formally losing eligibility for 
                receiving funds under this Act, including participation 
                in any program under this title.
                    ``(B) Specifications in notification.--As part of 
                the notification under subparagraph (A), the Secretary 
                shall specify which policies need to be disclosed and 
                which statements affirming contractual responsibility 
                for speech policy disclosure and contractual 
                responsibility for speech policy enforcement need to be 
                made and published in order for eligibility to be 
                restored.
                    ``(C) Notification of loss of eligibility.--
                            ``(i) In general.--If the Secretary 
                        determines that, 60 days after being notified 
                        that it is out of compliance as described in 
                        subparagraph (A), the institution has failed to 
                        return to compliance by making the appropriate 
                        speech policy disclosures, or statement 
                        affirming contractual responsibility for full 
                        speech policy disclosure, or statement 
                        affirming contractual responsibility for speech 
                        policy enforcement, the Secretary shall notify 
                        the institution and, if applicable, the 
                        complainant, not more than 7 days after the 
                        date of such determination--
                                    ``(I) that the institution will 
                                lose eligibility to receive funds under 
                                this Act, including participation in 
                                any program under this title;
                                    ``(II) that the loss of eligibility 
                                shall go into effect beginning with any 
                                student notified of acceptance for 
                                admission to the institution during the 
                                academic year subsequent to the 
                                academic year during which the 
                                determination is made, and that no 
                                restoration of eligibility for 
                                ineligible students in subsequent years 
                                will occur prior to the beginning of 
                                the third academic year subsequent to 
                                the academic year during which the 
                                determination is made; and
                                    ``(III) that the institution shall 
                                post the determination of the Secretary 
                                on the website of the institution, 
                                within two clicks of the homepage, 
                                without a paywall, email login, or 
                                other restriction to access.
                            ``(ii) Continued eligibility.--Each student 
                        enrolled at the institution during the academic 
                        year in which eligibility is lost as described 
                        in this subparagraph, and each student notified 
                        of acceptance for admission to the institution 
                        during the academic year in which eligibility 
                        is lost as described in this subparagraph, 
                        shall continue to be eligible to participate, 
                        through the institution, in programs funded 
                        under this Act during the 5-year period after 
                        the date of the loss of eligibility.
            ``(3) Restoration of eligibility.--
                    ``(A) In general.--Not later than 7 days after the 
                loss of eligibility under paragraph (2), the Secretary 
                shall inform the institution that it may restore 
                eligibility by making the appropriate speech policy 
                disclosures, or statement affirming contractual 
                responsibility for full speech policy disclosure, or 
                statement affirming contractual responsibility for 
                speech policy enforcement, as directed by the Secretary 
                in conformity with this section.
                    ``(B) Review.--The Secretary shall review any 
                policy disclosures, or statement affirming contractual 
                responsibility for full speech policy disclosure, or 
                statement affirming contractual responsibility for 
                speech policy enforcement, and determine whether they 
                are sufficient to restore eligibility for receiving 
                funds under this Act, including participation in any 
                program under this title, not later than 120 days after 
                the date of receipt of such disclosures or statement.
                    ``(C) Investigation.--While conducting a review to 
                restore eligibility under this paragraph, the Secretary 
                may conduct an investigation in which further 
                information may be sought or requested from the 
                institution, or any other source the Secretary 
                determines pertinent.
                    ``(D) Restoration.--If the Secretary determines 
                that the institution under review to restore 
                eligibility under this paragraph has made the policy 
                disclosures, and issued the statement affirming 
                contractual responsibility for full speech policy 
                disclosure, and the statement affirming contractual 
                responsibility for speech policy enforcement, as 
                required by this section, the institution's eligibility 
                to receive funds under this Act, including 
                participation in any program under this title, shall be 
                restored not earlier than the beginning of the third 
                academic year following the year in which notification 
                of loss of eligibility was received.
                    ``(E) Limit on review.--The Secretary may conduct 
                not more than 1 review to restore eligibility for a 
                single institution in any given academic year.
    ``(e) Nonapplication to Certain Institutions.--This section shall 
not apply to an institution of higher education that is controlled by a 
religious organization.''.

SEC. 11. SEVERABILITY.

    If any provision of this Act, or the application of such provision 
to any person or circumstance, is held to be unconstitutional, the 
remainder of this Act, and the application of the remaining provisions 
of this Act to any person or circumstance shall not be affected.
                                 <all>