I 118th CONGRESS 2d Session H. R. 7495 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 programs.

1. Short title This Act may be cited as the Empowering Learners through Competency-Based Education Act . 2. Findings Congress finds the following: (1) Competency-based education, in which the measurement of learning in place of the measurement of time is a distinguishing feature, is an efficient, effective, and rigorous form of postsecondary education, the widespread adoption of which is necessary and desirable as a means of improving learning 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, offered, and demonstrated the academic rigor, effectiveness, and outcomes of competency-based education. (3) An increasing number of institutions of higher education now seek to develop and offer competency-based education. (4) The collection and dissemination of complete and reliable information respecting the impact of competency-based education on the quality of learning, employability and employer acceptance, retention, time to completion, graduation rates, and cost will significantly enhance the adoption of competency-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. 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 following: (25) Competency; competency-based education program (A) Competency The term competency 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 education program means a postsecondary program, including one defined under section 481(b)(4), that provides competency-based education for which the accrediting agency or association of the institution of higher education offering such program has approved the program in accordance with such standards— (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 academic 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 demonstrate mastery of such competencies in which instructors are responsible for providing academic assistance, when needed; and (iv) upon a student’s demonstration or mastery of a set of competencies identified and required by the institution, leads to or results in the awarding of a credential. . 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 following: (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 education programs conducted under this section as described at paragraph (3) of this subsection shall be collected by the Secretary for the purpose of evaluating best practices respecting the administration of such programs, including effects on student outcomes, time to credential, total price, and job placement, and shall annually report to the Congress respecting such findings. (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 students who complete a credential within 100 percent, 150 percent, and 200 percent of the published length of the program. (E) The number and percentage of students completing the program who are employed not later than 180 days and 1 year, respectively, after completing the eligible program, if available. . 5. Definitions of academic year and eligible program Section 481 of the Higher Education Act of 1965 ( 20 U.S.C. 1088 ) is amended— (1) in subsection (a)(2), by inserting the following: (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 requirements 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. 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: 486B. Competency-based education demonstration projects (a) Demonstration projects authorized The Secretary shall select, in accordance with subsection (d), eligible entities that voluntarily seek to carry out competency-based education demonstration projects for a duration of 5 years and receive waivers or other flexibility described in subsection (e) to carry out such projects. (b) Application (1) In general Each eligible entity desiring 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 education, in particular to institutions eligible for programs 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 Notwithstanding the assurance required with respect to maximum enrollment under paragraph (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 enrollment in the project to more than 3,000 students, but not more than 5,000 students, and which shall specify— (i) the proposed maximum enrollment and annual enrollment growth for the project; (ii) how the eligible entity will successfully carry out the project with such maximum enrollment and enrollment growth; (iii) any other amendments to the eligible entity’s application under paragraph (1) that are related to such maximum enrollment or enrollment growth; and (iv) the Secretary shall determine whether to approve or deny an amendment submitted under clause (i) for a demonstration project based on the project’s evaluations under subsection (g)(2). (4) Contents Each application under paragraph (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 institutional 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 program aligns with employer needs; (D) a description of the proposed academic design, academic and support services, delivery, business, and financial models for the demonstration project, including explanations and supporting documents of how each competency-based education program offered under the demonstration project will— (i) result in the achievement of competencies; (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 described in subparagraph (R)(i); (E) a description of how each competency-based education program offered under the demonstration project will award academic credit to advance the progress of a student toward completion of a certificate or degree that is used by in-demand employers for making employment decisions; (F) a description of how each competency-based education program offered under the demonstration project is aligned with a career 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 entity in the development, design, implementation, delivery, and evaluation of each such competency-based education program; (H) a description of how the eligible entity will facilitate transfer, postsecondary study, and employer understanding by articulating a competency-based transcript from a competency-based education program offered under the demonstration project to a credit or clock hour transcript at another program at the eligible entity and to other institutions of higher education; (I) a description of the statutory and regulatory 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 demonstration project; (J) a description of indicators of a program’s effectiveness to inform how a third party will reliably assess student learning for each competency-based education program offered under the demonstration project, if applicable; (K) a description of how the eligible entity will develop and evaluate the competencies and assessments of student knowledge administered as part of the demonstration project, including 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 assessments 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 determining a student’s Federal student aid eligibility under this title for participating in the demonstration project, the award and distribution 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 students 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 enrollment approved under such paragraph; (ii) will identify and disseminate best practices with respect to the demonstration project to the Secretary and to other eligible 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 standards described in subsection (c); and (iv) uses available funds solely for purposes of awarding academic credit to eligible 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 students to whom competency-based education under the demonstration project will be offered, including demographic information and prior educational experience, disaggregated by students who are Federal Pell Grant recipients, the race of the students, students with disabilities, students who are veterans or members of the Armed Forces, adult learners, and first generation college students, and how such eligible entity will, when appropriate, address the specific needs of each such population of students when carrying out the demonstration project; (O) a description of how the institution is ensuring that students participating in the demonstration project will not, on average, be eligible 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 competency-based education program offered under the demonstration project, disaggregated by each of the applicable costs or allowances described in paragraphs (1) through (13) of section 472, and the estimated amount of the cost of attendance of each such program to be covered 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 entity will use data to— (i) define and measure student outcomes; (ii) ensure that each competency-based education program under the demonstration project meets the benchmarks established in accordance with subsection (d)(2)(E); (iii) confirm relevancy of competencies in the labor market; and (iv) improve each such program. (c) Recognition by accrediting agency or association Unless a program has already been recognized 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 demonstration project under this section, an eligible entity shall include in its application under subsection (b), a letter from the accrediting agency or association of the eligible 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 education program is offered at each eligible entity. (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 subsection (b); (ii) commitment and ability to effectively 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 demonstration project under subsection (g)(2); (vi) commitment and ability to assess student learning through a third party, as applicable; (vii) commitment of the accrediting agency or association of the eligible entity to establish and enforce the standards described 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 participation 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 equivalent status from the accrediting agency or association of the eligible entity; and (ii) was under sanction from the authorization agency of the State in which the eligible entity is located. (e) Waivers and other flexibility (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 provisions of law (including any regulations promulgated under such provisions) listed in paragraph (2) for which the eligible entity has provided 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 flexibility under subsection (b)(4)(J). (2) Provisions eligible for waivers The Secretary may waive the following under paragraph (1)(A): (A) Subparagraphs (A) and (B) of section 102(a)(3). (B) Section 484(l)(1). (3) Provisions eligible for flexibility The Secretary may provide the flexibility described in paragraph (1)(B) with respect to the requirements 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 substantive 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 academic progress , educational activity , program of study , and payment period . (G) Methods of disbursing student financial aid by institutions of higher education selected, as of the date of enactment of the Empowering Learners through Competency-Based Education Act , as experimental sites under section 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 demonstration 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 education programs, and its associated accreditation standards, to be offered under the project. (g) Evaluation and report (1) Evaluation The Secretary shall evaluate 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 the progress of participating students toward recognized certificates or degrees and the extent to which participation in such programs increased; (C) issues related to student financial assistance for competency-based education; and (D) the extent to which statutory or regulatory requirements not waived under the demonstration program present difficulties for students or institutions. (2) Report No later than 1 year after the conclusion of the demonstration program, the Secretary shall provide a final report to the authorizing committees regarding— (A) the demonstration programs authorized under this section; (B) the number and types of students receiving assistance under this title for instruction leading to a recognized credential, certificate, or degree, including the progress of such students toward recognized credential, certificate, and the degree to which participation in such programs leading to such certificates increased; (C) identified policies that present impediments to the development and use of competency-based education; and (D) any new understanding of competency 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; . 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 Education Act , including an eligible program that met the requirements of a direct-assessment program under section 481(b)(4) (as in effect the day before the date of enactment of this Act), from continuing to be an eligible program during the period that such program meets the requirements under the Higher Education of Act 1965.