United States 119th Congress Status: In Committee 2 R cosponsors

HR 4054 — Accreditation Choice and Innovation Act

Last action — Placed on the Union Calendar, Calendar No. 360.

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the House. Introduced June 20, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the House.

Odds of enactment

Low chance

Based on the sponsor, cosponsors, and committee posture, this bill has a low chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Stalled 18% · moderate confidence

  • In Committee

    Current position in the legislative process.

  • 2 sponsors

    1 primary, 1 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (2 R).

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

In plain language

HR 4054 focuses on educational and workforce development reforms.

This bill aims to improve education and workforce training programs. It was recently discussed in the House and is moving forward.

What this means for you
  • Workers: This bill could lead to more effective training programs, helping workers gain the skills they need for better job opportunities.
  • Families: Families may benefit from improved educational resources, ensuring their children are ready for the future workforce.
  • Small Business: Small businesses might find it easier to hire skilled workers as workforce training improves.

Summary

Accreditation Choice and Innovation ActThis bill revises the accreditation process for reviewing the quality of education offered by institutions of higher education (IHEs).Under current law, an IHE seeking to participate in many federal programs (e.g., federal student aid programs) must be accredited by an agency recognized by the Department of Education (ED) as a reliable authority on the quality of the education being offered at the IHE. An ED-recognized accrediting agency must meet various provisions under the Higher Education Act of 1965 and in regulations.Under this bill, states may designate an entity (e.g., an industry-specific quality assurance entity) as an accrediting agency for programs or IHEs in the state. The bill outlines the requirements for the state to submit a plan to ED and for ED to respond to the plan. Additionally, the bill provides an accelerated path to recognition by authorizing ED to recognize new accrediting agencies within two years of their application. ED must convene a panel of experts to develop common terminology for accrediting agencies to use in making accrediting decisions and publish those recommendations.Further, the bill (1) requires accrediting agencies to establish specified standards for measures assessing student success (e.g., labor market outcomes), and (2) requires accrediting agencies to establish procedures for assessing compliance with agency standards that reflect an IHE's risk of losing accreditation.The bill reauthorizes through September 30, 2028, and revises the National Advisory Committee on Institutional Quality and Integrity, which advises ED on matters related to accreditation.

Bill Text

What changed in the latest version

332 added · 227 removed

Plain-language change summary

The text of the bill has been amended to change the wording in subparagraph (C). It now replaces "its principal" with "a" and adds "or" at the end, clarifying the types of individuals that represent business interests by including a broader range of business executives or employers. This change matters because it potentially expands the categories of business representatives involved, which could affect how decisions are made in the context discussed in the bill.

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4054 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H.
4054 Reported in House (RH)] <DOC> Union Calendar No.
360 119th CONGRESS 1st Session H.
4054 To amend the Higher Education Act of 1965 to reform accreditation.
4054 [Report No.
119-414] To amend the Higher Education Act of 1965 to reform accreditation.
which was referred to the Committee on Education and Workforce _______________________________________________________________________ A BILL To amend the Higher Education Act of 1965 to reform accreditation.
which was referred to the Committee on Education and Workforce December 18, 2025 Additional sponsor:
Mr.
Messmer December 18, 2025 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on June 20, 2025] _______________________________________________________________________ A BILL To amend the Higher Education Act of 1965 to reform accreditation.
(C) in subparagraph (C), by inserting ``or'' at the end;
(C) in subparagraph (C)-- (i) by striking ``its principal'' and inserting ``a'';
and (ii) by inserting ``or'' at the end;
``(II) among the membership of the board or governing body of the accrediting agency or association-- ``(aa) if such board or body is comprised of 5 or fewer members, there is a minimum of one member who is not also a member of any related, associated, or affiliated trade association or membership organization (referred to in this subclause as a `public member') and who represents business;
``(II) among the membership of the board or governing body of the accrediting agency or association-- ``(aa) if such board or body is comprised of 5 or fewer members, there is a minimum of one member who is not also a member of any related, associated, or affiliated trade association or membership organization (referred to in this subclause as a `public member') and who represents business (such as an owner of a business (including a small business), a chief executive or operating officer of a business, or another other business executive or employer with optimum policymaking or hiring authority);
and ``(bb) if such board or body is comprised of 6 or more members, there is a minimum of public members (at least one of whom represents business) for every 6 members;
and ``(bb) if such board or body is comprised of 6 or more members, there is a minimum of public members (at least one of whom represents business (as described in item (aa))) for every 6 members;
and ``(V) the budget of the accrediting agency or association is developed, determined, and maintained by the accrediting agency or association without any review by, consultation with, or approval by any related, associated, or affiliated trade association or membership organization;'';
and ``(V) the budget of the accrediting agency or association is developed, determined, and maintained by the accrediting agency or association without any review by, consultation with, or approval by any related, associated, or affiliated trade association or membership organization;
or'';
and ``(C) such agency or association demonstrates the ability to review, evaluate, and assess the quality of any instruction delivery model or method such agency or association has or seeks to include within its scope of recognition, without giving preference to or differentially treating (such as through separate standards, procedures, or policies) a particular instruction delivery model or method offered by an institution or program, except that in a case in which an instruction delivery model allows for the separation of the student from the instructor, the agency or association requires the institution to have processes through which the institution establishes that the student who registers in a course or program with such an instruction delivery model is the same student who participates in the course or program of study (including, to the extent practicable, the testing or other assessments required under the course or program of study), completes the course or program of study, and receives the academic credit for such course or program of study;'';
and ``(C) such agency or association demonstrates the ability to review, evaluate, and assess the quality of any instruction delivery model or method such agency or association has or seeks to include within its scope of recognition, without giving preference to or differentially treating (such as through separate standards, procedures, or policies) a particular instruction delivery model or method offered by an institution or program, except that in a case in which an instruction delivery model allows for the separation of the student from the instructor, the agency or association requires the institution to have processes-- ``(i) through which the institution establishes that the student who registers in a course or program with such an instruction delivery model is the same student who participates in the course or program of study (including, to the extent practicable, the testing or other assessments required under the course or program of study), completes the course or program of study, and receives the academic credit for such course or program of study;
and (6) in paragraph (5)-- (A) by amending subparagraph (A) to read as follows:
and ``(ii) which are implemented in a manner that is minimally burdensome to the student;'';
``(A) success with respect to student achievement outcomes in relation to the institution's mission and to the programs the institution offers, or the mission of a specific degree, certificate, or credential program, which may include different standards for different institutions or programs of study, and which shall include-- ``(i) standards for consideration of student success outcomes measures, including-- ``(I) a comparison of the total price charged to students for a program of study to the value-added earnings of students who completed such program (such as a comparison, with respect to students who completed the program in the same award year, of the median total price charged to such students to the median value-added earnings of such students);
(6) in paragraph (5)-- (A) by amending subparagraph (A) to read as follows:
``(A) success with respect to student achievement outcomes in relation to the institution's mission and to the programs the institution offers, or the mission of a specific degree, certificate, or credential program, which may include different standards for different institutions or programs of study, and which shall include-- ``(i) standards for consideration of student success outcomes measures, including-- ``(I) a comparison of the median total price charged to students in a program of study student cohort to the value-added earnings of such cohort;
and ``(IV) loan repayment rates);
and ``(IV) loan repayment rates;
and ``(iii) standards for consideration of labor market outcomes measures (such as employability measures, earnings gains, or other similar approaches);
and ``(iii) standards for consideration of labor market outcomes measures (such as employability measures, earnings gains, or other similar approaches);'';
and'';
``(I) record of student complaints received by, or available to, the agency or association, and a process for resolving complaints received by the institution;
``(I) record of student complaints received by, or available to, the agency or association, and the institution's process for resolving complaints against the institution;
and (C) in the matter following subparagraph (J), by striking ``subparagraphs (A), (H), and (J)'' and inserting ``subparagraph ((J)''.
(C) in the matter following subparagraph (J), by striking ``subparagraphs (A), (H), and (J)'' and inserting ``subparagraph (J)'';
and (7) in paragraph (6)(A)(ii), by inserting before the semicolon at the end the following:
``(including any student complaints received by, or available to, the agency or association)''.
``(b) Secretarial Requirements and Authority.-- ``(1) State designated accrediting agency.-- ``(A) Approval of state plans.--The Secretary shall-- ``(i) approve a State's designation of an entity as an accrediting agency or association for the purposes described in subsection (a)(2)(D) for a 5-year period, beginning not later than 30 days after receipt of the plan from such State with respect to such designation, if such plan includes each of the elements listed in subparagraph (B);
``(b) Secretarial Requirements and Authority.-- ``(1) State designated accrediting agency.-- ``(A) Approval of state plans.--The Secretary shall-- ``(i) if a State's plan with respect to the State's designation of an entity as an accrediting agency or association for the purposes described in subsection (a)(2)(D) includes each of the elements listed in subparagraph (B)-- ``(I) subject to clause (ii)(I), approve the State's designation of such entity as such accrediting agency or association for the purposes described in subsection (a)(2)(D) for a 5-year period, beginning not later than 30 days after receipt of the plan from such State with respect to such designation;
``(ii) submit to the State and the authorizing committees, and make publicly available the Secretary's response to the State with respect to such plan, including whether the plan includes each of the elements listed in subparagraph (B);
``(II) submit to the State and the authorizing committees, and make publicly available, the Secretary's response to the State with respect to such plan, including whether the plan includes each of the elements listed in subparagraph (B);
and ``(iii) if a State's designation of an entity as an accrediting agency or association is approved pursuant to this subparagraph, publish in the Federal Register with a 30-day public comment period-- ``(I) the plan submitted by such State with respect to such designation;
and ``(III) publish in the Federal Register, with a 30-day public comment period, the plan submitted by such State with respect to such designation, and the Secretary's response to such plan;
and ``(II) the Secretary's response to such plan.
and ``(ii) if, not later than 30 days after the 30-day public comment period referred to in clause (i)(III), a State revises the State's plan approved under clause (i)(I) to incorporate one or more of the comments received during such 30-day comment period, and such revised plan includes each of the elements listed in subparagraph (B)-- ``(I) revise the 5-year period described in clause (i)(I) approving the State's designation of the entity as an accrediting agency or association for the purposes described in subsection (a)(2)(D) to begin not later than 30 days after receipt of such revised plan;
``(II) submit to the State and the authorizing committees, and make publicly available, the Secretary's response to the State with respect to such revised plan, including whether such revised plan includes each of the elements listed in subparagraph (B);
and ``(III) publish in the Federal Register, such revised State plan, and the Secretary's response to such revised State plan.
``(3) Development of common terminology.--Not later than 18 months after the date of enactment of the Accreditation Choice and Innovation Act, the Secretary shall-- ``(A) convene a panel of experts to develop common terminology for accrediting agencies or associations to use in making accrediting decisions with respect to programs of study and institutions, such as a common understanding of monitoring, warning, show cause, and other relevant statuses, as appropriate;
``(3) Development of common terminology.-- ``(A) In general.--Not later than 18 months after the date of enactment of the Accreditation Choice and Innovation Act, the Secretary shall-- ``(i) convene a panel of experts to develop common terminology for accrediting agencies or associations to use in making accrediting decisions with respect to programs of study and institutions, such as a common understanding of monitoring, warning, show cause, and other relevant statuses, as appropriate;
and ``(B) publish the recommendations for such common terminology in the Federal Register with a 60-day public comment period.''.
``(ii) publish in the Federal Register with a 60-day public comment period, the recommendations for such common terminology;
(c) Operating Procedures Required.-- (1) On-site inspections and reviews.--Paragraph (1) of section 496(c) (20 U.S.C.
and ``(iii) if the panel revises any recommendations published pursuant to clause (ii) based on the comments received during the 60-day public comment period, publish such revised recommendations in the Federal Register not later than 60 days after such 60-day comment period.
``(B) Federal advisory committee act.--Chapter 10 of title 5, United States Code, shall not apply to the panel convened under this paragraph.
``(C) Termination.--The panel convened under this paragraph shall terminate on the date that is 60 days after the 60-day public comment period referred to in subparagraph (A)(ii).''.
(c) Operating Procedures Required.-- (1) On-site inspections and reviews.--Paragraph (1) of section 496(c) of the Higher Education Act of 1965 (20 U.S.C.
(2) Mechanism to identify institutions and programs experiencing difficulties.--Section 496(c) (20 U.S.C.
(2) Mechanism to identify institutions and programs experiencing difficulties.--Section 496(c) of the Higher Education Act of 1965 (20 U.S.C.
(3) Procedures with respect to substantive changes.-- Paragraph (5) of section 496(c) (20 U.S.C.
(3) Procedures with respect to substantive changes.-- Paragraph (5) of section 496(c) of the Higher Education Act of (20 U.S.C.
(4) Public availability.--Section 496(c) (20 U.S.C.
(4) Public availability.--Section 496(c) of the Higher Education Act of 1965 (20 U.S.C.
(5) Prohibition on assessment of elected or appointed officials.--Section 496(c) (20 U.S.C.
(5) Prohibition on assessment of elected or appointed officials.--Section 496(c) of the Higher Education Act of 1965 (20 U.S.C.
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(6) Prohibition of practices that result in credential inflation.--Section 496(c) (20 U.S.C.
(6) Prohibition of practices that result in credential inflation.--Section 496(c) of the Higher Education Act of 1965 (20 U.S.C.
``(13) confirms that an institution's or program of study's compliance with a standard for accreditation of the agency or association does not require the institution or program to take any action (such as developing a new program of study) that would result in a violation of any other such standard (including the standards for consideration of student success outcomes described in subsection (a)(5)(A)(i) that relate to comparing the total price charged to students for a program of study to the value-added earnings of students who completed such program).''.
``(13) confirms that an institution's or program of study's compliance with a standard for accreditation of the agency or association does not require the institution or program to take any action (such as developing a new program of study) that would result in a violation of any other such standard (including the standards for consideration of student success outcomes described in subsection (a)(5)(A)(i) that relate to comparing the median total price charged to students in a program of study student cohort to the value-added earnings of such cohort).''.
(d) Limitation on Scope of Criteria.--Section 496 (20 U.S.C.
(d) Limitation on Scope of Criteria.--Section 496 of the Higher Education Act of 1965 (20 U.S.C.
``(2) Institutional eligibility.--An institution of higher education shall meet the accreditation requirements for certification as an institution of higher education under section 102 and subpart 3 of this part, if the institution is in compliance with the standards of its accrediting agency or association that assess the institution in accordance with subsection (a)(5), regardless of any additional standards adopted by the agency or association for purposes unrelated to participation in programs under this title.''.
``(2) Institutional eligibility.--An institution that is in compliance with the standards of its accrediting agency or association that assess the institution in accordance with subsection (a)(5) shall meet the accreditation requirements for certification as an institution of higher education under section 102 and subpart 3 of this part, regardless of any additional standards adopted by the agency or association for purposes unrelated to participation in programs under this Act.''.
(e) Change of Accrediting Agency.--Section 496 (20 U.S.C.
(e) Change of Accrediting Agency.--Section 496 of the Higher Education Act of 1965 (20 U.S.C.
(f) Dual Accreditation Rule.--Section 496 (20 U.S.C.
(f) Dual Accreditation Rule.--Section 496 of the Higher Education Act of 1965 (20 U.S.C.
``(2) Designation by institution.--If the institution is accredited, as an institution, by more than one accrediting agency or association, the institution-- ``(A) shall designate which agency's or association's accreditation shall be utilized in determining the institution's eligibility for participation in programs under this Act;
``(2) Designation by institution.--If the institution is accredited, as an institution, by more than one accrediting agency or association, the institution-- ``(A) shall-- ``(i) designate which agency's or association's accreditation shall be utilized in determining the institution's eligibility for participation in programs under this Act;
and ``(B) may change this designation at the end of the institution's period of recognition.''.
and ``(ii) the period such agency's or association's accreditation shall be so utilized;
(g) Religious Institutions Rule.--Section 496 (20 U.S.C.
and ``(B) after the period described in subparagraph (A)(ii), the institution may designate a different agency's or association's accreditation to be utilized in accordance with subparagraph (A)(i).''.
(g) Religious Institutions Rule.--Section 496 of the Higher Education Act of 1965 (20 U.S.C.
``(E) Secretarial action.-- ``(i) In general.--During the 30-day period described in subparagraph (D)(i)-- ``(I) the Secretary shall review the materials to determine if the accrediting agency or association has met its burden of proof under subparagraph (C)(ii)(I);
``(E) Secretarial action.-- ``(i) In general.--Not later than 30 days after the institution submits a response pursuant to subparagraph (D)(i), or, in the case of an institution that waives the institution's right to respond in accordance to subparagraph (D)(ii), 30 days after the date on which the agency or association's response is filed with the Secretary-- ``(I) the Secretary shall review the materials to determine if the accrediting agency or association has met its burden of proof under subparagraph (C)(ii)(I);
``(G) Regulations and guidance.-- ``(i) In general.--The Secretary may only issue regulations and guidance under this paragraph that explain or clarify the process for providing notice of an intent to file a complaint or for filing a complaint under this paragraph.
``(G) Regulations and guidance.-- ``(i) In general.--The Secretary may only issue regulations and guidance under this paragraph that explain or clarify the process for providing a notice of an intent to file a complaint under this paragraph, and for preparing and filing such a complaint, a response to such complaint by an accrediting agency or association, and a response by an institution to a response filed by an accrediting agency or association.
(h) Independent Evaluation.--Section 496(n)(3) (20 U.S.C.
(h) Independent Evaluation.--Section 496(n)(3) of the Higher Education Act of 1965 (20 U.S.C.
(i) Regulations.--Section 496(o) (20 U.S.C.
(i) Regulations.--Section 496(o) of the Higher Education Act of (20 U.S.C.
(j) Risk-Based Review Processes or Procedures;
(j) Risk-based Review Processes or Procedures;
Waiver.--Section 496 (20 U.S.C.
Waiver.--Section 496 of the Higher Education Act of 1965 (20 U.S.C.
``(p) Risk-Based or Differentiated Review Processes or Procedures.-- ``(1) In general.--Notwithstanding any other provision of law (including subsection (a)(4)(A)), an accrediting agency or association shall establish risk-based processes or procedures for assessing compliance with the accrediting agency or association's standards (including policies related to substantive change and award of accreditation statuses) under which the agency or association-- ``(A) creates a system for understanding the performance of each institution and program of study being reviewed by such agency or association in comparison with the performance of other similarly situated institutions or programs of study (which may include the past performance of the institution or program with respect to meeting the accrediting agency or association's standards, including the standards relating to the student success outcomes described in subsection (a)(5)(A)(i));
``(p) Risk-based or Differentiated Review Processes or Procedures.-- ``(1) In general.--Notwithstanding any other provision of law (including subsection (a)(4)(A)), an accrediting agency or association shall establish risk-based processes or procedures for assessing compliance with the accrediting agency or association's standards (including policies related to substantive change and award of accreditation statuses) under which the agency or association-- ``(A) creates a system for understanding the performance of each institution and program of study being reviewed by such agency or association in comparison with the performance of other similarly situated institutions or programs of study (which may include the past performance of the institution or program with respect to meeting the accrediting agency or association's standards, including the standards relating to the student success outcomes described in subsection (a)(5)(A)(i));
and ``(D) may require an institution or program of study that has declining performance (such as an institution or program of study with a high-risk designation described in subparagraph (B)), which has not improved as required by the annual plan submitted under subsection (c)(2)(B), to take actions to avoid or minimize the risks that may lead to revocation of accreditation (such as limiting certain program of study enrollment or recommending to the Secretary to limit funds under this title for such an institution or program).
and ``(D) may require an institution or program of study that is required to submit an annual plan under subsection (c)(2)(B) (such as an institution or program that has a high-risk designation described in subparagraph (B)) and that has not improved as required by such annual plan, to take actions to avoid or minimize the risks that may lead to revocation of accreditation (such as limiting certain program of study enrollment or recommending to the Secretary to limit funds under this title for such an institution or program).
(k) Definitions.--Section 496 (20 U.S.C.
(k) Definitions.--Section 496 of the Higher Education Act of 1965 (20 U.S.C.
``(q) Definitions.--For purposes of this Act:
``(q) Definitions.--For purposes of this section:
``(3) Religious mission.--The term `religious mission'-- ``(A) means a published institutional mission that is approved by the governing body of an institution of higher education and that includes, refers to, or is predicated upon religious tenets, beliefs, or teachings;
``(3) Program of study student cohort.-- ``(A) In general.--The term `program of study student cohort' means the cohort of individuals who completed a specific program of study at an institution of higher education during the same award year, except that such cohort shall only include an individual who received Federal financial aid under this title during the period the individual was enrolled in such program of study.
``(B) Small cohorts.--With respect to such a program of study student cohort that has fewer than 30 individuals, the Secretary shall aggregate additional years of data for the program of study in order to achieve a cohort of at least 30 individuals.
``(4) Religious mission.--The term `religious mission'-- ``(A) means a published institutional mission that is approved by the governing body of an institution of higher education and that includes, refers to, or is predicated upon religious tenets, beliefs, or teachings;
``(4) Total price.--With respect to a student who received Federal financial assistance under this title and who completes a program of study, the term `total price' means the total amount, before Federal financial assistance under this title was applied, a student was required to pay to complete the program of study.
``(5) Total price.--With respect to a student who received Federal financial assistance under this title and who completes a program of study, the term `total price' means the total amount, before Federal financial assistance under this title was applied, a student was required to pay to complete the program of study.
``(5) Value-added earnings.-- ``(A) In general.--With respect to a student who received Federal financial aid under this title and who completed a program of study offered by an institution of higher education, the term `value-added earnings' means-- ``(i) the annual earnings of such student measured during the applicable earnings measurement period for such program (as determined under subparagraph (C));
``(6) Value-added earnings.-- ``(A) Value-added earnings.-- ``(i) In general.--The term `value-added earnings' mean-- ``(I) the median annual earnings of a program of study student cohort, as adjusted pursuant to clause (iii) (as appropriate), minus ``(II) the product of-- ``(aa) the poverty line applicable to a single individual, (as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C.
minus ``(ii) in the case of a student who completed a program of study that awards-- ``(I) an undergraduate credential, percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C.
9902(2))) for the year in which such earnings were measured;
9902(2)) for such year;
and ``(bb) the applicable percentage described in clause (ii).
or ``(II) a graduate credential, 300 percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act (42 U.S.C.
``(ii) Applicable percentage.--The applicable percentage described in this clause is-- ``(I) in the case of a program of study student cohort for program of study that awards an undergraduate credential, 150 percent;
9902(2)) for such year.
and ``(II) in the case of a program of study student cohort for a program of study that awards a graduate credential, 300 percent.
``(B) Geographic adjustment.-- ``(i) In general.--Except as provided in clause (ii), the Secretary shall use the geographic location of the institution at which a student completed a program of study to adjust the value-added earnings of the student calculated under subparagraph (A) by dividing-- ``(I) the difference between clauses (i) and (ii) of such subparagraph;
``(iii) Geographic adjustment.--Except in the case of a program of study student cohort in which 50 percent or more of the individuals in such cohort participated exclusively online, the Secretary shall adjust the median annual earnings of a program of study student cohort by the regional price parity index of the Bureau of Economic Analysis for the metropolitan statistical area in which the institution offering such program is located.
by ``(II) the most recent regional price parity index of the Bureau of Economics Analysis for the State or, as applicable, metropolitan area in which such institution is located.
``(B) Annual earnings.-- ``(i) Annual earnings.--The term `annual earnings' means the earnings of an individual who is in a program of study student cohort, who is working, and who is not enrolled at an institution, measured-- ``(I) in the case of an undergraduate certificate, post- baccalaureate certificate, or graduate certificate, 1 year after completion of such program;
``(ii) Exception.--The value-added earnings of a student calculated under subparagraph (A) shall not be adjusted based on geographic location in accordance with clause (i) if such student attended principally through distance education.
``(II) in the case of an associates or masters degree, 2 years after completion of such program;
``(C) Earnings measurement period.-- ``(i) In general.--For the purpose of calculating the value-added earnings of a student, except as provided in clause (ii), the annual earnings of a student shall be measured-- ``(I) in the case of a program of study that awards an undergraduate certificate, post baccalaureate certificate, or graduate certificate, 1 year after the student completes such program;
and ``(III) in the case of bachelor's degree, doctoral degree, or professional degree, 4 years after completion of such program.
``(II) in the case of a program of study that awards an associate's degree or master's degree, 2 years after the student completes such program;
``(ii) Exception.--The Secretary may, as the Secretary determines appropriate based on the characteristics of a program of study, extend the applicable measurement period under clause (i) for a program of study that-- ``(I) requires completion of an additional educational program (such as a residency or fellowship) after completion of the program of study in order to obtain licensure or board certification associated with the credential awarded for such program of study;
and ``(III) in the case of a program of study that awards a bachelor's degree, doctoral degree, or professional degree, 4 years after the student completes such program.
and ``(II) when combined with the program length of such additional educational program for licensure or board certification, has a total program length that exceeds the applicable measurement period under clause (i) for such program of study, except that in no case shall the annual earnings of an individual be measured more than year after the individual completes such additional educational program.''.
``(ii) Exception.--The Secretary may, as the Secretary determines appropriate based on the characteristics of a program of study, extend an earnings measurement period described in clause (i) for a program of study that-- ``(I) requires completion of an additional educational program (such as a residency or fellowship) after completion of the program of study in order to obtain licensure or board certification associated with the credential awarded for such program of study;
and ``(II) when combined with the program length of such additional educational program for licensure or board certification, has a total program length that exceeds the relevant earnings measurement period prescribed for such program of study under clause (i), except that in no case shall the annual earnings of a student be measured more than 1 year after the student completes such additional educational program.''.
Section 114 (20 U.S.C.
Section 114 of the Higher Education Act of 1965 (20 U.S.C.
``If, during a term of office of a member of the Committee, the member has a changed circumstance that results in such member having a significant conflict of interest (as described in paragraph (2)(B)), such member shall vacate such office and a new member shall be appointed to serve the remainder of such term in accordance with this paragraph.'' (2) in subsection (c)-- (A) in paragraph (4), by adding ``and'' at the end;
``If, during a term of office of a member of the Committee, the member has a changed circumstance that results in such member having a significant conflict of interest (as described in paragraph (2)(B)), such member shall vacate such office and a new member shall be appointed to serve the remainder of such term in accordance with this paragraph.'';
(2) in subsection (c)-- (A) in paragraph (4), by adding ``and'' at the end;
<all>
SEC.
4.
RULE OF CONSTRUCTION.
Nothing in this Act, or the amendments made by this Act, shall be construed to prevent religious accreditors from holding and enforcing religious standards on institutions they choose to accredit.
Union Calendar No.
360 119th CONGRESS 1st Session H.
R.
4054 [Report No.
119-414] _______________________________________________________________________ A BILL To amend the Higher Education Act of 1965 to reform accreditation.
_______________________________________________________________________ December 18, 2025 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed
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What Congress says this changes

H. Rept. 119-414

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changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 HIGHER EDUCATION ACT OF 1965

 * * * * * * *
TITLE I--GENERAL PROVISIONS

 * * * * * * *

PART B--ADDITIONAL GENERAL PROVISIONS

 * * * * * * *

SEC. 114. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND 
 INTEGRITY.

 (a) Establishment.--There is established in the Department a 
National Advisory Committee on Institutional Quality and 
Integrity (in this section referred to as the ``Committee'') to 
assess the process of accreditation and the institutional 
eligibility and certification of institutions of higher 
education (as defined in section 102) under title IV.
 (b) Membership.--
 (1) In general.--The Committee shall have 18 members, 
 of which--
 (A) six members shall be appointed by the 
 Secretary;
 (B) six members shall be appointed by the 
 Speaker of the House of Representatives, three 
 of whom shall be appointed on the 
 recommendation of the majority leader of the 
 House of Representatives, and three of whom 
 shall be appointed on the recommendation of the 
 minority leader of the House of 
 Representatives; and
 (C) six members shall be appointed by the 
 President pro tempore of the Senate, three of 
 whom shall be appointed on the recommendation 
 of the majority leader of the Senate, and three 
 of whom shall be appointed on the 
 recommendation of the minority leader of the 
 Senate.
 (2) Qualifications.--[Individuals]
 (A) In general._Individuals shall be 
 appointed as members of the Committee--
 [(A)] (i) on the basis of the 
 individuals' experience, integrity, 
 impartiality, and good judgment;
 [(B)] (ii) from among individuals who 
 are representatives of, or 
 knowledgeable concerning, education 
 [and training] and skills development 
 beyond secondary education, 
 representing all sectors and types of 
 institutions of higher education (as 
 defined in section 102); and
 [(C)] (iii) on the basis of the 
 individuals' technical qualifications, 
 professional standing, and demonstrated 
 knowledge in the fields of 
 accreditation and administration in 
 higher education.
 (B) Disqualification.--No individual may be 
 appointed as a member of the Committee if such 
 individual has a significant conflict of 
 interest, such as being a current regulator 
 (such as a State authorizer), that would 
 require the individual to frequently be recused 
 from serving as a member of the Committee.
 (3) Terms of members.--[Except as provided in 
 paragraph (5), the term] The term of office of each 
 member of the Committee shall be for six years, except 
 that any member appointed to fill a vacancy occurring 
 prior to the expiration of the term for which the 
 member's predecessor was appointed shall be appointed 
 for the remainder of such term. If, during a term of 
 office of a member of the Committee, the member has a 
 changed circumstance that results in such member having 
 a significant conflict of interest (as described in 
 paragraph (2)(B)), such member shall vacate such office 
 and a new member shall be appointed to serve the 
 remainder of such term in accordance with this 
 paragraph.
 (4) Vacancy.--A vacancy on the Committee shall be 
 filled in the same manner as the original appointment 
 was made not later than 90 days after the vacancy 
 occurs. If a vacancy occurs in a position to be filled 
 by the Secretary, the Secretary shall publish a Federal 
 Register notice soliciting nominations for the position 
 not later than 30 days after being notified of the 
 vacancy.
 (5) Initial terms.--The terms of office for the 
 initial members of the Committee shall be--
 (A) three years for members appointed under 
 paragraph (1)(A);
 (B) four years for members appointed under 
 paragraph (1)(B); and
 (C) six years for members appointed under 
 paragraph (1)(C).
 (6) Chairperson.--The members of the Committee shall 
 select a chairperson from among the members.
 (c) Functions.--The Committee shall--
 (1) advise the Secretary with respect to 
 establishment and enforcement of the standards of 
 accrediting agencies or associations under subpart 2 of 
 part H of title IV;
 (2) advise the Secretary with respect to the 
 recognition of a specific accrediting agency or 
 association;
 (3) advise the Secretary with respect to the 
 preparation and publication of the list of nationally 
 recognized accrediting agencies and associations;
 (4) advise the Secretary with respect to the 
 eligibility and certification process for institutions 
 of higher education under title IV, together with 
 recommendations for improvements in such process; and
 (5) advise the Secretary with respect to the 
 relationship between--
 (A) accreditation of institutions of higher 
 education and the certification and eligibility 
 of such institutions; and
 (B) State licensing responsibilities with 
 respect to such institutions[; and].
 [(6) carry out such other advisory functions relating 
 to accreditation and institutional eligibility as the 
 Secretary may prescribe by regulation.]
 (d) Meeting Procedures.--
 (1) Schedule.--
 (A) Biannual meetings.--The Committee shall 
 meet not less often than twice each year, at 
 the call of the Chairperson.
 (B) Publication of date.--The Committee shall 
 submit the date and location of each meeting in 
 advance to the Secretary, and the Secretary 
 shall publish such information in the Federal 
 Register not later than 30 days before the 
 meeting.
 (2) Agenda.--
 (A) Establishment.--The agenda for a meeting 
 of the Committee shall be established by the 
 Chairperson and shall be submitted to the 
 members of the Committee upon notification of 
 the meeting.
 (B) Opportunity for public comment.--The 
 agenda shall include, at a minimum, opportunity 
 for public comment during the Committee's 
 deliberations. The name of any member of the 
 Committee who has been recused with respect to 
 an agenda item of the meeting shall be included 
 in such agenda.
 (3) Secretary's designee.--The Secretary shall 
 designate an employee of the Department to serve as the 
 Secretary's designee to the Committee, and the 
 Chairperson shall invite the Secretary's designee to 
 attend all meetings of the Committee.
 (4) Chapter 10 of title 5, united states code.--
 Chapter 10 of title 5, United States Code, shall apply 
 to the Committee, except that section 1013 of title 5, 
 United States Code, shall not apply.
 (e) Report and Notice.--
 (1) Notice.--The Secretary shall annually publish in 
 the Federal Register--
 (A) a list containing, for each member of the 
 Committee--
 (i) the member's name;
 (ii) the date of the expiration of 
 the member's term of office; and
 (iii) the name of the individual 
 described in subsection (b)(1) who 
 appointed the member; and
 (B) a solicitation of nominations for each 
 expiring term of office on the Committee of a 
 member appointed by the Secretary.
 (2) Report.--Not later than the last day of each 
 fiscal year, the Committee shall make available an 
 annual report to the Secretary, the authorizing 
 committees, and the public. The annual report shall 
 contain--
 (A) a detailed summary of the agenda and 
 activities of, and the findings and 
 recommendations made by, the Committee during 
 the fiscal year preceding the fiscal year in 
 which the report is made;
 (B) a list of the date and location of each 
 meeting during the fiscal year preceding the 
 fiscal year in which the report is made;
 (C) a list of the members of the Committee; 
 and
 (D) a list of the functions of the 
 Committee[, including any additional functions 
 established by the Secretary through 
 regulation].
 (f) Termination.--The Committee shall terminate on September 
30, [2021] 2028.

 * * * * * * *

TITLE IV--STUDENT ASSISTANCE

 * * * * * * *

PART H--PROGRAM INTEGRITY

 * * * * * * *

 Subpart 2--Accrediting Agency Recognition

SEC. 496. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.

 (a) Criteria Required.--No accrediting agency or association 
may be determined by the Secretary to be a reliable authority 
as to the quality of education [or training] or skills 
development offered for the purposes of this Act or for other 
Federal purposes, unless the agency or association meets 
criteria established by the Secretary pursuant to this section. 
The Secretary shall, after notice and opportunity for a 
hearing, establish criteria for such determinations. Such 
criteria shall include an appropriate measure or measures of 
student achievement. Such criteria shall require that--
 [(1) the accrediting agency or association shall be a 
 State, regional, or national agency or association and 
 shall demonstrate the ability and the experience to 
 operate as an accrediting agency or association within 
 the State, region, or nationally, as appropriate;]
 (1) the accrediting agency or association (other than 
 an accrediting agency or association described in 
 paragraph (2)(D)) shall be a State or national agency 
 or association and shall demonstrate the ability to 
 operate as an institutional or programmatic accrediting 
 agency or association within the State or nationally, 
 as appropriate;
 (2) such agency or association--
 (A)(i) for the purpose of participation in 
 programs under this Act, has a voluntary 
 membership of institutions of higher education 
 and has as a [principal] purpose the 
 accrediting of institutions of higher 
 education; or
 (ii) for the purpose of participation in 
 other programs administered by the Department 
 of Education or other Federal agencies, has a 
 voluntary membership and has as [its principal] 
 a purpose the accrediting of institutions of 
 higher education or programs;
 (B) is a State agency approved by the 
 Secretary for the purpose described in 
 subparagraph (A); [or]
 (C) is an agency or association that, for the 
 purpose of determining eligibility for student 
 assistance under this title, conducts 
 accreditation through (i) a voluntary 
 membership organization of individuals 
 participating in a profession, or (ii) an 
 agency or association which has as [its 
 principal] a purpose the accreditation of 
 programs within institutions, which 
 institutions are accredited by another agency 
 or association recognized by the Secretary; or
 (D) is an entity (such as an industry-
 specific quality assurance entity) that has 
 been--
 (i) determined by a State to be a 
 reliable authority as to the quality of 
 education or skills development offered 
 in such State for the purposes of this 
 Act; and
 (ii) designated (in accordance with 
 subsection (b)(1)) by such State as an 
 accrediting agency or association with 
 respect to such State for such 
 purposes;
 (3) if such agency or association is an agency or 
 association described in--
 [(A) subparagraph (A)(i) of paragraph (2), 
 then such agency or association is separate and 
 independent, both administratively and 
 financially of any related, associated, or 
 affiliated trade association or membership 
 organization;]
 (A) subparagraph (A), (C), or (D) of 
 paragraph (2), then such agency or association 
 is--
 (i) distinctly incorporated or 
 organized; and
 (ii) both administratively and 
 financially separate from, and 
 independent of, any related, 
 associated, or affiliated trade 
 association or membership organization, 
 by ensuring that--
 (I) the members of the board 
 or governing body of the 
 accrediting agency or 
 association are not elected or 
 selected by the board or chief 
 executive officer (or the 
 representative of such board or 
 officer) of any related, 
 associated, or affiliated trade 
 association or membership 
 organization;
 (II) among the membership of 
 the board or governing body of 
 the accrediting agency or 
 association--
 (aa) if such board or 
 body is comprised of 5 
 or fewer members, there 
 is a minimum of one 
 member who is not also 
 a member of any 
 related, associated, or 
 affiliated trade 
 association or 
 membership organization 
 (referred to in this 
 subclause as a ``public 
 member'') and who 
 represents business 
 (such as an owner of a 
 business (including a 
 small business), a 
 chief executive or 
 operating officer of a 
 business, or another 
 other business 
 executive or employer 
 with optimum 
 policymaking or hiring 
 authority); and
 (bb) if such board or 
 body is comprised of 6 
 or more members, there 
 is a minimum of 2 
 public members (at 
 least one of whom 
 represents business (as 
 described in item 
 (aa))) for every 6 
 members;
 (III) guidelines are 
 established for such members to 
 avoid conflicts of interest, 
 including specific guidelines 
 to ensure that no such member 
 is an employee of any 
 institution accredited by the 
 agency or association or has a 
 financial interest in any such 
 institution;
 (IV) dues to the accrediting 
 agency or association are paid 
 separately from any dues paid 
 to any related, associated, or 
 affiliated trade association or 
 membership organization; and
 (V) the budget of the 
 accrediting agency or 
 association is developed, 
 determined, and maintained by 
 the accrediting agency or 
 association without any review 
 by, consultation with, or 
 approval by any related, 
 associated, or affiliated trade 
 association or membership 
 organization; or
 (B) subparagraph (B) of paragraph (2), then 
 such agency or association has been recognized 
 by the Secretary on or before October 1, 1991; 
 [or]
 [(C) subparagraph (C) of paragraph (2) and 
 such agency or association has been recognized 
 by the Secretary on or before October 1, 1991, 
 then the Secretary may waive the requirement 
 that such agency or association is separate and 
 independent, both administratively and 
 financially of any related, associated, or 
 affiliated trade association or membership 
 organization upon a demonstration that the 
 existing relationship has not served to 
 compromise the independence of its 
 accreditation process;]
 (4)(A) such agency or association consistently 
 applies and enforces standards that respect the stated 
 mission of the institution of higher education, 
 including religious missions (in the manner described 
 in subparagraph (B)), and that ensure that the courses 
 or programs of instruction, training, or study offered 
 by the institution of higher education, including 
 distance education or correspondence courses or 
 programs, are of sufficient quality to achieve, for the 
 duration of the accreditation period, the stated 
 objective for which the courses or the programs are 
 offered; [and]
 [(B) if such agency or association has or seeks to 
 include within its scope of recognition the evaluation 
 of the quality of institutions or programs offering 
 distance education or correspondence education, such 
 agency or association shall, in addition to meeting the 
 other requirements of this subpart, demonstrate to the 
 Secretary that--
 [(i) the agency or association's standards 
 effectively address the quality of an 
 institution's distance education or 
 correspondence education in the areas 
 identified in paragraph (5), except that--
 [(I) the agency or association shall 
 not be required to have separate 
 standards, procedures, or policies for 
 the evaluation of distance education or 
 correspondence education institutions 
 or programs in order to meet the 
 requirements of this subparagraph; and
 [(II) in the case that the agency or 
 association is recognized by the 
 Secretary, the agency or association 
 shall not be required to obtain the 
 approval of the Secretary to expand its 
 scope of accreditation to include 
 distance education or correspondence 
 education, provided that the agency or 
 association notifies the Secretary in 
 writing of the change in scope; and
 [(ii) the agency or association requires an 
 institution that offers distance education or 
 correspondence education to have processes 
 through which the institution establishes that 
 the student who registers in a distance 
 education or correspondence education course or 
 program is the same student who participates in 
 and completes the program and receives the 
 academic credit;]
 (B) such accrediting agency or association 
 consistently applies and enforces standards that 
 respect the stated religious mission of an institution 
 of higher education by--
 (i) basing decisions regarding accreditation 
 and preaccreditation on the standards of 
 accreditation of such agency or association; 
 and
 (ii) not using as a negative factor the 
 institution's religious mission based policies, 
 decisions, and practices in the areas covered 
 by subparagraphs (B), (C), (D), (E), and (F) of 
 paragraph (5), except that the agency or 
 association may require that the institution's 
 or a program of study's curricula include all 
 core components required by the agency or 
 association that are not inconsistent with the 
 institution's religious mission; and
 (C) such agency or association demonstrates the 
 ability to review, evaluate, and assess the quality of 
 any instruction delivery model or method such agency or 
 association has or seeks to include within its scope of 
 recognition, without giving preference to or 
 differentially treating (such as through separate 
 standards, procedures, or policies) a particular 
 instruction delivery model or method offered by an 
 institution or program, except that in a case in which 
 an instruction delivery model allows for the separation 
 of the student from the instructor, the agency or 
 association requires the institution to have 
 processes--
 (i) through which the institution establishes 
 that the student who registers in a course or 
 program with such an instruction delivery model 
 is the same student who participates in the 
 course or program of study (including, to the 
 extent practicable, the testing or other 
 assessments required under the course or 
 program of study), completes the course or 
 program of study, and receives the academic 
 credit for such course or program of study; and
 (ii) which are implemented in a manner that 
 is minimally burdensome to the student;
 (5) the standards for accreditation of the agency or 
 association assess the institution's--
 [(A) success with respect to student 
 achievement in relation to the institution's 
 mission, which may include different standards 
 for different institutions or programs, as 
 established by the institution, including, as 
 appropriate, consideration of State licensing 
 examinations, consideration of course 
 completion, and job placement rates;]
 (A) success with respect to student 
 achievement outcomes in relation to the 
 institution's mission and to the programs the 
 institution offers, or the mission of a 
 specific degree, certificate, or credential 
 program, which may include different standards 
 for different institutions or programs of 
 study, and which shall include--
 (i) standards for consideration of 
 student success outcomes measures, 
 including--
 (I) a comparison of the 
 median total price charged to 
 students in a program of study 
 student cohort to the value-
 added earnings of such cohort;
 (II) completion rates;
 (III) retention rates; and
 (IV) loan repayment rates;
 (ii) standards for consideration of 
 learning outcomes measures (such as 
 competency attainment and licensing 
 examination passage rates); and
 (iii) standards for consideration of 
 labor market outcomes measures (such as 
 employability measures, earnings gains, 
 or other similar approaches);
 (B) curricula;
 (C) faculty;
 (D) facilities, equipment, and supplies;
 (E) fiscal and administrative capacity as 
 appropriate to the specified scale of 
 operations;
 (F) student support services;
 (G) recruiting and admissions practices, 
 academic calendars, catalogs, publications, 
 grading and advertising;
 (H) measures of program length and the 
 objectives of the degrees or credentials 
 offered;
 [(I) record of student complaints received 
 by, or available to, the agency or association; 
 and]
 (I) record of student complaints received by, 
 or available to, the agency or association, and 
 the institution's process for resolving 
 complaints against the institution; and
 (J) record of compliance with its program 
 responsibilities under title IV of this Act 
 based on the most recent student loan default 
 rate data provided by the Secretary, the 
 results of financial or compliance audits, 
 program reviews, and any such other information 
 as the Secretary may provide to the agency or 
 association;
 except that [subparagraphs (A), (H), and (J)] 
 subparagraph (J) shall not apply to agencies or 
 associations described in paragraph (2)(A)(ii) of this 
 subsection;
 (6) such an agency or association shall establish and 
 apply review procedures throughout the accrediting 
 process, including evaluation and withdrawal 
 proceedings, which comply with due process procedures 
 that provide--
 (A) for adequate written specification of--
 (i) requirements, including clear 
 standards for an institution of higher 
 education or program to be accredited; 
 and
 (ii) identified deficiencies at the 
 institution or program examined 
 (including any student complaints 
 received by, or available to, the 
 agency or association);
 (B) for sufficient opportunity for a written 
 response, by an institution or program, 
 regarding any deficiencies identified by the 
 agency or association to be considered by the 
 agency or association--
 (i) within a timeframe determined by 
 the agency or association; and
 (ii) prior to final action in the 
 evaluation and withdrawal proceedings;
 (C) upon the written request of an 
 institution or program, for an opportunity for 
 the institution or program to appeal any 
 adverse action under this section, including 
 denial, withdrawal, suspension, or termination 
 of accreditation, taken against the institution 
 or program, prior to such action becoming final 
 at a hearing before an appeals panel that--
 (i) shall not include current members 
 of the agency's or association's 
 underlying decisionmaking body that 
 made the adverse decision; and
 (ii) is subject to a conflict of 
 interest policy;
 (D) for the right to representation and 
 participation by counsel for an institution or 
 program during an appeal of the adverse action;
 (E) for a process, in accordance with written 
 procedures developed by the agency or 
 association, through which an institution or 
 program, before a final adverse action based 
 solely upon a failure to meet a standard or 
 criterion pertaining to finances, may on one 
 occasion seek review of significant financial 
 information that was unavailable to the 
 institution or program prior to the 
 determination of the adverse action, and that 
 bears materially on the financial deficiencies 
 identified by the agency or association;
 (F) in the case that the agency or 
 association determines that the new financial 
 information submitted by the institution or 
 program under subparagraph (E) meets the 
 criteria of significance and materiality 
 described in such subparagraph, for 
 consideration by the agency or association of 
 the new financial information prior to the 
 adverse action described in such subparagraph 
 becoming final; and
 (G) that any determination by the agency or 
 association made with respect to the new 
 financial information described in subparagraph 
 (E) shall not be separately appealable by the 
 institution or program;
 (7) such agency or association shall notify the 
 Secretary and the appropriate State licensing or 
 authorizing agency within 30 days of the accreditation 
 of an institution or any final denial, withdrawal, 
 suspension, or termination of accreditation or 
 placement on probation of an institution, together with 
 any other adverse action taken with respect to an 
 institution; and
 (8) such agency or association shall make available 
 to the public, upon request, and to the Secretary, and 
 the State licensing or authorizing agency a summary of 
 any review resulting in a final accrediting decision 
 involving denial, termination, or suspension of 
 accreditation, together with the comments of the 
 affected institution.
 [(b) Separate and Independent Defined.--For the purpose of 
subsection (a)(3), the term ``separate and independent'' means 
that--
 [(1) the members of the postsecondary education 
 governing body of the accrediting agency or association 
 are not elected or selected by the board or chief 
 executive officer of any related, associated, or 
 affiliated trade association or membership 
 organization;
 [(2) among the membership of the board of the 
 accrediting agency or association there shall be one 
 public member (who is not a member of any related trade 
 or membership organization) for each six members of the 
 board, with a minimum of one such public member, and 
 guidelines are established for such members to avoid 
 conflicts of interest;
 [(3) dues to the accrediting agency or association 
 are paid separately from any dues paid to any related, 
 associated, or affiliated trade association or 
 membership organization; and
 [(4) the budget of the accrediting agency or 
 association is developed and determined by the 
 accrediting agency or association without review or 
 resort to consultation with any other entity or 
 organization.]
 (b) Secretarial Requirements and Authority.--
 (1) State designated accrediting agency.--
 (A) Approval of state plans.--The Secretary 
 shall--
 (i) if a State's plan with respect to 
 the State's designation of an entity as 
 an accrediting agency or association 
 for the purposes described in 
 subsection (a)(2)(D) includes each of 
 the elements listed in subparagraph 
 (B)--
 (I) subject to clause 
 (ii)(I), approve the State's 
 designation of such entity as 
 such accrediting agency or 
 association for the purposes 
 described in subsection 
 (a)(2)(D) for a 5-year period, 
 beginning not later than 30 
 days after receipt of the plan 
 from such State with respect to 
 such designation;
 (II) submit to the State and 
 the authorizing committees, and 
 make publicly available, the 
 Secretary's response to the 
 State with respect to such 
 plan, including whether the 
 plan includes each of the 
 elements listed in subparagraph 
 (B); and
 (III) publish in the Federal 
 Register, with a 30-day public 
 comment period, the plan 
 submitted by such State with 
 respect to such designation, 
 and the Secretary's response to 
 such plan; and
 (ii) if, not later than 30 days after 
 the 30-day public comment period 
 referred to in clause (i)(III), a State 
 revises the State's plan approved under 
 clause (i)(I) to incorporate one or 
 more of the comments received during 
 such 30-day comment period, and such 
 revised plan includes each of the 
 elements listed in subparagraph (B)--
 (I) revise the 5-year period 
 described in clause (i)(I) 
 approving the State's 
 designation of the entity as an 
 accrediting agency or 
 association for the purposes 
 described in subsection 
 (a)(2)(D) to begin not later 
 than 30 days after receipt of 
 such revised plan;
 (II) submit to the State and 
 the authorizing committees, and 
 make publicly available, the 
 Secretary's response to the 
 State with respect to such 
 revised plan, including whether 
 such revised plan includes each 
 of the elements listed in 
 subparagraph (B); and
 (III) publish in the Federal 
 Register, such revised State 
 plan, and the Secretary's 
 response to such revised State 
 plan.
 (B) Required plan elements.--The required 
 elements of a State plan submitted under 
 subparagraph (A) with respect to the 
 designation of an entity as an accrediting 
 agency or association are as follows:
 (i) A description of the process the 
 State used to select the entity for 
 such designation.
 (ii) A justification of the State's 
 decision to select the entity for such 
 designation.
 (iii) A description of any 
 requirements (in addition to the 
 requirements of this section), that the 
 State required the entity to comply 
 with as a condition of receiving and 
 maintaining such designation, including 
 a requirement for the entity to use, to 
 the extent practicable during such 
 designation, the common terminology 
 developed pursuant to paragraph (3).
 (iv) A copy of the standards, 
 policies, and procedures of the entity 
 that the State considered in selecting 
 the entity for such designation.
 (v) The State's assessment of how the 
 standards for accreditation of the 
 entity will be effective in meeting the 
 requirements of subsection (a)(5).
 (vi) Evidence that at least one other 
 State has determined that such entity 
 is a reliable authority as to the 
 quality of education offered for the 
 purposes of this Act.
 (vii) An assurance that the State 
 will comply with the monitoring 
 requirements described in subparagraph 
 (C).
 (C) State monitoring.--
 (i) In general.--A State that has 
 designated an entity as an accrediting 
 agency or association for the purposes 
 described in subsection (a)(2)(D) shall 
 submit to the Secretary, and to the 
 State authorizing entity, as 
 appropriate, a report at the end of the 
 5-year period for which the entity has 
 received such designation, which shall 
 include, with respect to each program 
 of study or institution that has been 
 accredited by such entity during such 
 period, and disaggregated by type of 
 credential, certification, or degree--
 (I) the number and percentage 
 of students who have 
 successfully obtained a 
 postsecondary education 
 credential, certification, or 
 degree offered by such program 
 or institution;
 (II) the number and 
 percentage of students who were 
 enrolled and did not 
 successfully obtain such a 
 credential, certification, or 
 degree within 150 percent of 
 the program length; and
 (III) the results of the 
 State's assessment described in 
 subparagraph (B)(v).
 (ii) Counting transfer students.--For 
 purposes of clause (i)(I), a student 
 shall be counted as obtaining a 
 credential, certification, or degree 
 offered by a program of study or 
 institution that was accredited by the 
 entity during the period for which the 
 report under this subparagraph is being 
 submitted, if the student obtains such 
 credential, certification, or degree 
 after transferring to another 
 institution during such period.
 (2) Authority to provide an accelerated path to 
 recognition.--With respect to a prospective accrediting 
 agency or association that submits to the Secretary an 
 application for initial recognition under this Act, the 
 Secretary may provide such recognition to such agency 
 or association within 2 years after receipt of such 
 application, if such application--
 (A) demonstrates that the agency or 
 association--
 (i) has at least one year of 
 experience in making accreditation or 
 preaccreditation decisions; and
 (ii) has policies in place that meet 
 all the criteria under subsection (a) 
 for recognition covering the range of 
 the specific degrees, certificates, 
 institutions, and programs of study for 
 which the agency or association seeks 
 such recognition; and
 (B) provides an assurance that if the agency 
 or association receives such recognition, the 
 agency or association will submit to the 
 Secretary monitoring reports regarding 
 accreditation or preaccreditation decisions, as 
 appropriate.
 (3) Development of common terminology.--
 (A) In general.--Not later than 18 months 
 after the date of enactment of the 
 Accreditation Choice and Innovation Act, the 
 Secretary shall--
 (i) convene a panel of experts to 
 develop common terminology for 
 accrediting agencies or associations to 
 use in making accrediting decisions 
 with respect to programs of study and 
 institutions, such as a common 
 understanding of monitoring, warning, 
 show cause, and other relevant 
 statuses, as appropriate;
 (ii) publish in the Federal Register 
 with a 60-day public comment period, 
 the recommendations for such common 
 terminology; and
 (iii) if the panel revises any 
 recommendations published pursuant to 
 clause (ii) based on the comments 
 received during the 60-day public 
 comment period, publish such revised 
 recommendations in the Federal Register 
 not later than 60 days after such 60-
 day comment period.
 (B) Federal advisory committee act.--Chapter 
 10 of title 5, United States Code, shall not 
 apply to the panel convened under this 
 paragraph.
 (C) Termination.--The panel convened under 
 this paragraph shall terminate on the date that 
 is 60 days after the 60-day public comment 
 period referred to in subparagraph (A)(ii).
 (c) Operating Procedures Required.--No accrediting agency or 
association may be recognized by the Secretary as a reliable 
authority as to the quality of education or training offered by 
an institution seeking to participate in the programs 
authorized under this title, unless the agency or association--
 (1) performs, at regularly established intervals 
 (which may vary based on institutional risk consistent 
 with policies promulgated by the agency or association 
 to determine such risk and interval frequency as 
 authorized under subsection (p)), on-site inspections 
 and reviews of institutions of higher education (which 
 may include unannounced site visits) with particular 
 focus on educational quality and program effectiveness, 
 and ensures that accreditation team members are well-
 trained and knowledgeable with respect to their 
 responsibilities[, including those regarding distance 
 education];
 (2) develops a policy process to identify any 
 institution or program of study accredited by the 
 agency or association that is not meeting the standards 
 for accreditation of the agency or association, with a 
 focus on the standards assessing an institution's or 
 program of study's student success outcomes described 
 in subsection (a)(5)(A)(i), which shall include--
 (A) not less than annually, evaluating the 
 extent to which such an identified institution 
 or program of study continues to be in 
 compliance with such standards or other 
 indicators; and
 (B) as appropriate, requiring the institution 
 or program of study to submit a plan, on an 
 annual basis, to the accrediting agency or 
 association to--
 (i) address and remedy performance 
 issues with respect to such compliance; 
 and
 (ii) ensure that such plan is 
 successfully implemented;
 [(2)] (3) monitors the growth of programs at 
 institutions that are experiencing significant 
 enrollment growth;
 [(3)] (4) requires an institution to submit for 
 approval to the accrediting agency a teach-out plan 
 upon the occurrence of any of the following events:
 (A) the Department notifies the accrediting 
 agency of an action against the institution 
 pursuant to section 487(f);
 (B) the accrediting agency acts to withdraw, 
 terminate, or suspend the accreditation of the 
 institution; or
 (C) the institution notifies the accrediting 
 agency that the institution intends to cease 
 operations;
 [(4) requires that any institution of higher 
 education subject to its jurisdiction which plans to 
 establish a branch campus submit a business plan, 
 including projected revenues and expenditures, prior to 
 opening the branch campus;]
 (5) establishes and applies or maintains policies to 
 ensure that any substantive change of an institution 
 described in subparagraph (B) after the agency or 
 association has granted the institution accreditation 
 or preaccreditation status does not adversely affect 
 the capacity of the institution to continue to meet the 
 agency's or association's standards for such 
 accreditation or preaccreditation status, which shall 
 include policies that--
 (A) require the institution to obtain the 
 agency's or association's approval of the 
 substantive change before the agency or 
 association includes the change in the scope of 
 the institution's accreditation or 
 preaccreditation status; and
 (B) define substantive change to include--
 (i) any change in the established 
 mission or objectives of the 
 institution;
 (ii) any change in the legal status, 
 form of control, or ownership of the 
 institution, including the acquisition 
 or addition of any other institution or 
 new location where more than 50 percent 
 of a program of study is offered;
 (iii) changing the credential level 
 offered by a program of study that was 
 previously accredited by the agency or 
 association when the program of study 
 offered a different credential level; 
 and
 (iv) the entering into a contract 
 under which another institution or an 
 organization not eligible to 
 participate in programs under this 
 title offers more than 25 percent but 
 less than 50 percent of the instruction 
 of a program of study of the 
 institution with such accreditation or 
 preaccreditation status;
 [(5)] (6) agrees to conduct, as soon as practicable, 
 but within a period of not more than 6 months of the 
 establishment of a new branch campus or a change of 
 ownership of an institution of higher education, an on-
 site visit of that branch campus or of the institution 
 after a change of ownership;
 [(6)] (7) requires that teach-out agreements among 
 institutions are subject to approval by the accrediting 
 agency or association consistent with standards 
 promulgated by such agency or association;
 [(7)] (8) makes available to the public, on the 
 agency's or association's website, and the State 
 licensing or authorizing agency, and submits to the 
 Secretary, a summary of agency or association actions, 
 including--
 (A) the award of accreditation or 
 reaccreditation of an institution;
 (B) final denial, withdrawal, suspension, or 
 termination of accreditation of an institution, 
 and any findings made in connection with the 
 action taken, together with the official 
 comments of the affected institution; and
 (C) any other adverse action taken with 
 respect to an institution or placement on 
 probation of an institution, and a summary of 
 why such action was taken or such placement was 
 made;
 [(8)] (9) discloses publicly whenever an institution 
 of higher education subject to its jurisdiction is 
 being considered for accreditation or reaccreditation; 
 [and]
 [(9)] (10) confirms, as a part of the agency's or 
 association's review for accreditation or 
 reaccreditation, that the institution has transfer of 
 credit policies--
 (A) that are publicly disclosed; and
 (B) that include a statement of the criteria 
 established by the institution regarding the 
 transfer of credit earned at another 
 institution of higher education[.], including 
 an assurance that the institution does not deny 
 a transfer of credit based solely on the 
 accreditation of the institution at which the 
 credit was earned;
 (11) such agency or association shall make publicly 
 available, on the agency or association's website, a 
 list of the institutions of higher education or program 
 of study accredited by such agency or association, 
 which includes, with respect to each such institution 
 or program of study--
 (A) the year accreditation was first granted;
 (B) the most recent date that accreditation 
 or reaccreditation was granted; and
 (C) the anticipated date of the institution's 
 next evaluation for reaccreditation;
 (12) confirms that the standards for accreditation of 
 the agency or association do not assess the roles 
 (including actions or statements) of elected and 
 appointed State and Federal officials and legislative 
 bodies; and
 (13) confirms that an institution's or program of 
 study's compliance with a standard for accreditation of 
 the agency or association does not require the 
 institution or program to take any action (such as 
 developing a new program of study) that would result in 
 a violation of any other such standard (including the 
 standards for consideration of student success outcomes 
 described in subsection (a)(5)(A)(i) that relate to 
 comparing the median total price charged to students in 
 a program of study student cohort to the value-added 
 earnings of such cohort).
 (d) Length of Recognition.--No accrediting agency or 
association may be recognized by the Secretary for the purpose 
of this Act for a period of more than 5 years.
 (e) Initial Arbitration Rule.--The Secretary may not 
recognize the accreditation of any institution of higher 
education unless the institution of higher education agrees to 
submit any dispute involving the final denial, withdrawal, or 
termination of accreditation to initial arbitration prior to 
any other legal action.
 (f) Jurisdiction.--Notwithstanding any other provision of 
law, any civil action brought by an institution of higher 
education seeking accreditation from, or accredited by, an 
accrediting agency or association recognized by the Secretary 
for the purpose of this title and involving the denial, 
withdrawal, or termination of accreditation of the institution 
of higher education, shall be brought in the appropriate United 
States district court.
 [(g) Limitation on Scope of Criteria.--Nothing in this Act 
shall be construed to permit the Secretary to establish 
criteria for accrediting agencies or associations that are not 
required by this section. Nothing in this Act shall be 
construed to prohibit or limit any accrediting agency or 
association from adopting additional standards not provided for 
in this section. Nothing in this section shall be construed to 
permit the Secretary to establish any criteria that specifies, 
defines, or prescribes the standards that accrediting agencies 
or associations shall use to assess any institution's success 
with respect to student achievement.
 [(h) Change of Accrediting Agency.--The Secretary shall not 
recognize the accreditation of any otherwise eligible 
institution of higher education if the institution of higher 
education is in the process of changing its accrediting agency 
or association, unless the eligible institution submits to the 
Secretary all materials relating to the prior accreditation, 
including materials demonstrating reasonable cause for changing 
the accrediting agency or association.
 [(i) Dual Accreditation Rule.--The Secretary shall not 
recognize the accreditation of any otherwise eligible 
institution of higher education if the institution of higher 
education is accredited, as an institution, by more than one 
accrediting agency or association, unless the institution 
submits to each such agency and association and to the 
Secretary the reasons for accreditation by more than one such 
agency or association and demonstrates to the Secretary 
reasonable cause for its accreditation by more than one agency 
or association. If the institution is accredited, as an 
institution, by more than one accrediting agency or 
association, the institution shall designate which agency's 
accreditation shall be utilized in determining the 
institution's eligibility for programs under this Act.]
 (g) Limitation on Scope of Criteria.--
 (1) In general.--The Secretary shall not establish 
 criteria for accrediting agencies or associations that 
 are not required by this section.
 (2) Institutional eligibility.--An institution that 
 is in compliance with the standards of its accrediting 
 agency or association that assess the institution in 
 accordance with subsection (a)(5) shall meet the 
 accreditation requirements for certification as an 
 institution of higher education under section 102 and 
 subpart 3 of this part, regardless of any additional 
 standards adopted by the agency or association for 
 purposes unrelated to participation in programs under 
 this Act.
 (h) Change of Accrediting Agency or Association.--
 (1) In general.--With respect to an institution or 
 program of study that is not subject to a covered 
 action and that seeks to change its accrediting agency 
 or association for a reason not related to any such 
 covered action (such as compliance with State law)--
 (A) the Secretary shall recognize the 
 accreditation of such institution or program of 
 study while the institution or program is in 
 the process of changing its accrediting agency 
 or association as long as, not later than 10 
 days before the start of such process, the 
 institution or program of study provides 
 written notification to the Secretary of such 
 process; and
 (B) such institution or program may make such 
 a change without the approval of the Secretary 
 as long as, not later than 10 days after the 
 accreditation decision by the new accrediting 
 agency or association, the institution or 
 program and such new accrediting agency or 
 association, provide written notification to 
 the Secretary of the effective date of the 
 accreditation by such agency or association of 
 such institution or program.
 (2) Covered action defined.--For purposes of this 
 subsection, the term ``covered action'' means one or 
 more of the following, when used with respect to an 
 institution or program of study:
 (A) A pending or final action brought by a 
 State agency to suspend, revoke, withdraw, or 
 terminate the institution's legal authority to 
 provide postsecondary education in the State.
 (B) A decision by a recognized accrediting 
 agency or association to deny accreditation or 
 preaccreditation to the institution or program 
 of study.
 (C) A pending or final action brought by a 
 recognized accrediting agency or association to 
 suspend, revoke, withdraw, or terminate the 
 accreditation or preaccreditation of the 
 institution or program of study.
 (D) Probation or an equivalent status imposed 
 on the institution or program of study by a 
 recognized accrediting agency or association.
 (E) The institution is in the process of a 
 substantive change (as described in subsection 
 (c)(5)).
 (i) Dual Accreditation Rule.--
 (1) Recognition by secretary.--The Secretary shall 
 recognize the accreditation of any otherwise eligible 
 institution of higher education if the institution of 
 higher education is accredited, as an institution, by 
 more than one accrediting agency or association.
 (2) Designation by institution.--If the institution 
 is accredited, as an institution, by more than one 
 accrediting agency or association, the institution--
 (A) shall--
 (i) designate which agency's or 
 association's accreditation shall be 
 utilized in determining the 
 institution's eligibility for 
 participation in programs under this 
 Act; and
 (ii) the period such agency's or 
 association's accreditation shall be so 
 utilized; and
 (B) after the period described in 
 subparagraph (A)(ii), the institution may 
 designate a different agency's or association's 
 accreditation to be utilized in accordance with 
 subparagraph (A)(i).
 (j) Impact of Loss of Accreditation.--An institution may not 
be certified or recertified as an institution of higher 
education under section 102 and subpart 3 of this part or 
participate in any of the other programs authorized by this Act 
if such institution--
 (1) is not currently accredited by any agency or 
 association recognized by the Secretary;
 (2) has had its accreditation withdrawn, revoked, or 
 otherwise terminated for cause during the preceding 24 
 months, unless such withdrawal, revocation, or 
 termination has been rescinded by the same accrediting 
 agency; or
 (3) has withdrawn from accreditation voluntarily 
 under a show cause or suspension order during the 
 preceding 24 months, unless such order has been 
 rescinded by the same accrediting agency.
 [(k) Religious Institution Rule.--Notwithstanding subsection 
(j), the Secretary shall allow an institution that has had its 
accreditation withdrawn, revoked, or otherwise terminated, or 
has voluntarily withdrawn from an accreditation agency, to 
remain certified as an institution of higher education under 
section 102 and subpart 3 of this part for a period sufficient 
to allow such institution to obtain alternative accreditation, 
if the Secretary determines that the reason for the withdrawal, 
revocation, or termination--
 [(1) is related to the religious mission or 
 affiliation of the institution; and
 [(2) is not related to the accreditation criteria 
 provided for in this section.]
 (k) Religious Institution Rule.--
 (1) In general.--Notwithstanding subsection (j), the 
 Secretary shall allow an institution that has had its 
 accreditation withdrawn, revoked, or otherwise 
 terminated, or has voluntarily withdrawn from an 
 accreditation agency, to remain certified as an 
 institution of higher education under section 102 and 
 subpart 3 of this part for a period sufficient to allow 
 such institution to obtain alternative accreditation, 
 if the Secretary determines, in accordance with 
 paragraph (2), that such withdrawal, revocation, or 
 termination--
 (A) is related to the religious mission or 
 affiliation of the institution; and
 (B) is not related to the accreditation 
 criteria provided for in this section.
 (2) Administrative complaint for failure to respect 
 religious mission.--
 (A) In general.--
 (i) Institution.--If an institution 
 of higher education believes that an 
 adverse action of an accrediting agency 
 or association fails to respect the 
 institution's religious mission in 
 violation of subsection (a)(4)(B), the 
 institution--
 (I) may file a complaint with 
 the Secretary to review the 
 adverse action of the agency or 
 association; and
 (II) prior to filing such 
 complaint, shall notify the 
 Secretary and the agency or 
 association of an intent to 
 file such complaint not later 
 than 30 days after--
 (aa) receiving the 
 adverse action from the 
 agency or association; 
 or
 (bb) determining that 
 discussions with or the 
 processes of the agency 
 or association to 
 remedy the failure to 
 respect the religious 
 mission of the 
 institution will fail 
 to result in the 
 withdrawal of the 
 adverse action by the 
 agency or association.
 (ii) Accrediting agency or 
 association.--Upon notification of an 
 intent to file a complaint and through 
 the duration of the complaint process 
 under this paragraph, the Secretary and 
 the accrediting agency or association 
 shall treat the accreditation status of 
 the institution of higher education as 
 if the adverse action for which the 
 institution is filing the complaint had 
 not been taken.
 (B) Complaint.--Not later than 45 days after 
 providing notice of the intent to file a 
 complaint, the institution shall file the 
 complaint with the Secretary (and provide a 
 copy to the accrediting agency or association), 
 which shall include--
 (i) a description of the adverse 
 action;
 (ii) how the adverse action fails to 
 respect the institution's religious 
 mission in violation of subsection 
 (a)(4)(B); and
 (iii) any other information the 
 institution determines relevant to the 
 complaint.
 (C) Response.--
 (i) In general.--The accrediting 
 agency or association shall have 30 
 days from the date the complaint is 
 filed with the Secretary to file with 
 the Secretary (and provide a copy to 
 the institution) a response to the 
 complaint, which response shall 
 include--
 (I) how the adverse action is 
 based on a violation of the 
 agency or association's 
 standards for accreditation; 
 and
 (II) how the adverse action 
 does not fail to respect the 
 religious mission of the 
 institution and is in 
 compliance with subsection 
 (a)(4)(B).
 (ii) Burden of proof.--
 (I) In general.--The 
 accrediting agency or 
 association shall bear the 
 burden of proving that the 
 agency or association has not 
 taken the adverse action as a 
 result of the institution's 
 religious mission, and that the 
 action does not fail to respect 
 the institution's religious 
 mission in violation of 
 subsection (a)(4)(B), by 
 showing that the adverse action 
 does not impact the aspect of 
 the religious mission claimed 
 to be affected in the 
 complaint.
 (II) Insufficient proof.--Any 
 evidence that the adverse 
 action results from the 
 application of a neutral and 
 generally applicable rule shall 
 be insufficient to prove that 
 the action does not fail to 
 respect an institution's 
 religious mission.
 (D) Additional institution response.--
 (i) In general.--The institution 
 shall have a 30-day period beginning on 
 the date on which the agency or 
 association's response is filed with 
 the Secretary to file with the 
 Secretary (and provide a copy to the 
 agency or association) a response to 
 any issues raised in the response of 
 the agency or association.
 (ii) Waiver of right to respond.--An 
 institution that does not file such a 
 response during the 30-day period 
 described in clause (i) shall be deemed 
 to have waived the institution's right 
 to respond to the response of the 
 agency or association.
 (E) Secretarial action.--
 (i) In general.--Not later than 30 
 days after the institution submits a 
 response pursuant to subparagraph 
 (D)(i), or, in the case of an 
 institution that waives the 
 institution's right to respond in 
 accordance to subparagraph (D)(ii), 30 
 days after the date on which the agency 
 or association's response is filed with 
 the Secretary--
 (I) the Secretary shall 
 review the materials to 
 determine if the accrediting 
 agency or association has met 
 its burden of proof under 
 subparagraph (C)(ii)(I); or
 (II) in a case in which the 
 Secretary fails to conduct such 
 review--
 (aa) the Secretary 
 shall be deemed as 
 determining that the 
 adverse action fails to 
 respect the religious 
 mission of the 
 institution; and
 (bb) the accrediting 
 agency or association 
 shall be required to 
 reverse the action 
 immediately and take no 
 further action with 
 respect to such adverse 
 action.
 (ii) Review of complaint.--In 
 reviewing the complaint under clause 
 (i)(I)--
 (I) the Secretary shall 
 consider the institution to be 
 correct in the assertion that 
 the adverse action fails to 
 respect the institution's 
 religious mission and shall 
 apply the burden of proof 
 described in subparagraph 
 (C)(ii)(I) with respect to the 
 accrediting agency or 
 association; and
 (II) if the Secretary 
 determines that the accrediting 
 agency or association fails to 
 meet such burden of proof--
 (aa) the Secretary 
 shall notify the 
 institution and the 
 agency or association 
 that the agency or 
 association is not in 
 compliance with 
 subsection (a)(4)(B), 
 and that such agency or 
 association shall carry 
 out the requirements of 
 item (bb) to be in 
 compliance with 
 subsection (a)(4)(B); 
 and
 (bb) the agency or 
 association shall 
 reverse the adverse 
 action immediately and 
 take no further action 
 with respect to such 
 adverse action.
 (iii) Final departmental action.--The 
 Secretary's determination under this 
 subparagraph shall be the final action 
 of the Department on the complaint.
 (F) Rule of construction.--Nothing in this 
 paragraph shall prohibit--
 (i) an accrediting agency or 
 association from taking an adverse 
 action against an institution of higher 
 education for a failure to comply with 
 the agency or association's standards 
 of accreditation as long as such 
 standards are in compliance with 
 subsection (a)(4)(B) and any other 
 applicable requirements of this 
 section; or
 (ii) an institution of higher 
 education from exercising any other 
 rights to address concerns with respect 
 to an accrediting agency or association 
 or the accreditation process of an 
 accrediting agency or association.
 (G) Regulations and guidance.--
 (i) In general.--The Secretary may 
 only issue regulations and guidance 
 under this paragraph that explain or 
 clarify the process for providing a 
 notice of an intent to file a complaint 
 under this paragraph, and for preparing 
 and filing such a complaint, a response 
 to such complaint by an accrediting 
 agency or association, and a response 
 by an institution to a response filed 
 by an accrediting agency or 
 association.
 (ii) Clarification.--The Secretary 
 may not issue regulations, guidance, or 
 otherwise determine or suggest, when 
 discussions to remedy the failure by an 
 accrediting agency or association to 
 respect the religious mission of an 
 institution of higher education 
 referred to in subparagraph 
 (A)(i)(II)(bb) have failed or will 
 fail.
 (l) Limitation, Suspension, or Termination of Recognition.--
(1) If the Secretary determines that an accrediting agency or 
association has failed to apply effectively the criteria in 
this section, or is otherwise not in compliance with the 
requirements of this section, the Secretary shall--
 (A) after notice and opportunity for a hearing, 
 limit, suspend, or terminate the recognition of the 
 agency or association; or
 (B) require the agency or association to take 
 appropriate action to bring the agency or association 
 into compliance with such requirements within a 
 timeframe specified by the Secretary, except that--
 (i) such timeframe shall not exceed 12 months 
 unless the Secretary extends such period for 
 good cause; and
 (ii) if the agency or association fails to 
 bring the agency or association into compliance 
 within such timeframe, the Secretary shall, 
 after notice and opportunity for a hearing, 
 limit, suspend, or terminate the recognition of 
 the agency or association.
 (2) The Secretary may determine that an accrediting agency or 
association has failed to apply effectively the standards 
provided in this section if an institution of higher education 
seeks and receives accreditation from the accrediting agency or 
association during any period in which the institution is the 
subject of any interim action by another accrediting agency or 
association, described in paragraph (2)(A)(i), (2)(B), or 
(2)(C) of subsection (a) of this section, leading to the 
suspension, revocation, or termination of accreditation or the 
institution has been notified of the threatened loss of 
accreditation, and the due process procedures required by such 
suspension, revocation, termination, or threatened loss have 
not been completed.
 (m) Limitation on the Secretary's Authority.--The Secretary 
may only recognize accrediting agencies or associations which 
accredit institutions of higher education for the purpose of 
enabling such institutions to establish eligibility to 
participate in the programs under this Act or which accredit 
institutions of higher education or higher education programs 
for the purpose of enabling them to establish eligibility to 
participate in other programs administered by the Department of 
Education or other Federal agencies.
 (n) Independent Evaluation.--(1) The Secretary shall conduct 
a comprehensive review and evaluation of the performance of all 
accrediting agencies or associations which seek recognition by 
the Secretary in order to determine whether such accrediting 
agencies or associations meet the criteria established by this 
section. The Secretary shall conduct an independent evaluation 
of the information provided by such agency or association. Such 
evaluation shall include--
 (A) the solicitation of third-party information 
 concerning the performance of the accrediting agency or 
 association; and
 (B) site visits, including unannounced site visits as 
 appropriate, at accrediting agencies and associations, 
 and, at the Secretary's discretion, at representative 
 member institutions.
 (2) The Secretary shall place a priority for review of 
accrediting agencies or associations on those agencies or 
associations that accredit institutions of higher education 
that participate most extensively in the programs authorized by 
this title and on those agencies or associations which have 
been the subject of the most complaints or legal actions.
 (3) The Secretary shall consider all available relevant 
information concerning the compliance of the accrediting agency 
or association with the criteria provided for in this section, 
including any complaints or legal actions against such agency 
or association. In cases where deficiencies in the performance 
of an accreditation agency or association with respect to the 
requirements of this section are noted, the Secretary shall 
take these deficiencies into account in the recognition 
process. The Secretary shall not, under any circumstances, base 
decisions on the recognition or denial of recognition of 
accreditation agencies or associations on criteria other than 
those contained in this section. When the Secretary decides to 
recognize an accrediting agency or association, the Secretary 
shall determine the agency or association's scope of 
recognition. [If the agency or association reviews institutions 
offering distance education courses or programs and the 
Secretary determines that the agency or association meets the 
requirements of this section, then the agency shall be 
recognized and the scope of recognition shall include 
accreditation of institutions offering distance education 
courses or programs.]
 (4) The Secretary shall maintain sufficient documentation to 
support the conclusions reached in the recognition process, 
and, if the Secretary does not recognize any accreditation 
agency or association, shall make publicly available the reason 
for denying recognition, including reference to the specific 
criteria under this section which have not been fulfilled.
 (o) Regulations.--The Secretary shall by regulation provide 
procedures for the recognition of accrediting agencies or 
associations and for the appeal of the Secretary's decisions. 
Notwithstanding any other provision of law, the Secretary shall 
not promulgate any regulation with respect to the standards of 
an accreditation agency or association described in subsection 
(a)(5), or with respect to the policies and procedures of an 
accreditation agency or association described in paragraph (2) 
or (5) of subsection (c) or how the agency or association 
carries out such policies and procedures.
 [(p) Rule of Construction.--Nothing in subsection (a)(5) 
shall be construed to restrict the ability of--
 [(1) an accrediting agency or association to set, 
 with the involvement of its members, and to apply, 
 accreditation standards for or to institutions or 
 programs that seek review by the agency or association; 
 or
 [(2) an institution to develop and use institutional 
 standards to show its success with respect to student 
 achievement, which achievement may be considered as 
 part of any accreditation review.
 [(q) Review of Scope Changes.--The Secretary shall require a 
review, at the next available meeting of the National Advisory 
Committee on Institutional Quality and Integrity, of any change 
in scope undertaken by an agency or association under 
subsection (a)(4)(B)(i)(II) if the enrollment of an institution 
that offers distance education or correspondence education that 
is accredited by such agency or association increases by 50 
percent or more within any one institutional fiscal year.]
 (p) Risk-based or Differentiated Review Processes or 
Procedures.--
 (1) In general.--Notwithstanding any other provision 
 of law (including subsection (a)(4)(A)), an accrediting 
 agency or association shall establish risk-based 
 processes or procedures for assessing compliance with 
 the accrediting agency or association's standards 
 (including policies related to substantive change and 
 award of accreditation statuses) under which the agency 
 or association--
 (A) creates a system for understanding the 
 performance of each institution and program of 
 study being reviewed by such agency or 
 association in comparison with the performance 
 of other similarly situated institutions or 
 programs of study (which may include the past 
 performance of the institution or program with 
 respect to meeting the accrediting agency or 
 association's standards, including the 
 standards relating to the student success 
 outcomes described in subsection (a)(5)(A)(i));
 (B) with respect to each institution and 
 program of study designated as high-risk, as 
 determined using the accrediting agency or 
 association's system described in subparagraph 
 (A), requires the institution and program of 
 study to submit the annual plans described in 
 subsection (c)(2)(B) to the agency or 
 association that address the performance issues 
 of such institution or program of study that 
 resulted in such designation;
 (C) with respect to each institution and 
 program of study whose performance meets or 
 exceeds the standards of the accrediting agency 
 or association, as determined using the system 
 described in subparagraph (A), reduces any 
 compliance requirements with respect to such 
 standards that are not assessing the 
 institution or program of study in accordance 
 with subsection (a)(5) (such as on-site 
 inspections); and
 (D) may require an institution or program of 
 study that is required to submit an annual plan 
 under subsection (c)(2)(B) (such as an 
 institution or program that has a high-risk 
 designation described in subparagraph (B)) and 
 that has not improved as required by such 
 annual plan, to take actions to avoid or 
 minimize the risks that may lead to revocation 
 of accreditation (such as limiting certain 
 program of study enrollment or recommending to 
 the Secretary to limit funds under this title 
 for such an institution or program).
 (2) Prohibition.--Any risk-based review process or 
 procedure established pursuant to this subsection shall 
 not discriminate against, or otherwise preclude, 
 institutions of higher education based on institutional 
 sector or category, including an institution of higher 
 education's tax status.
 (q) Definitions.--For purposes of this section:
 (1) Program length.--The term `program length' means 
 the minimum amount of time in weeks, months, or years 
 that is specified in the catalog, marketing materials, 
 or other official publications of an institution of 
 higher education for a full-time student to complete 
 the requirements for a specific program of study.
 (2) Program of study.--
 (A) In general.--The term ``program of 
 study'' means an eligible program at an 
 institution of higher education that is 
 classified by a combination of--
 (i) one or more CIP codes; and
 (ii) one credential level, determined 
 by the credential awarded upon 
 completion of the program.
 (B) CIP code.--The term ``CIP code'' means 
 the six-digit taxonomic identification code 
 assigned by an institution of higher education 
 to a specific program of study at the 
 institution, determined by the institution of 
 higher education in accordance with the 
 Classification of Instructional Programs 
 published by the National Center for Education 
 Statistics.
 (C) Credential level.--
 (i) In general.--The term 
 ``credential level'' means the level of 
 the degree or other credential awarded 
 by an institution of higher education 
 to students who complete a program of 
 study of the institution. Each degree 
 or other credential awarded by an 
 institution shall be categorized by the 
 institution as either undergraduate 
 credential level or graduate credential 
 level.
 (ii) Undergraduate credential.--When 
 used with respect to a credential or 
 credential level, the term 
 `undergraduate credential' includes 
 credentials such as an undergraduate 
 certificate, an associate degree, a 
 bachelor's degree, and a post-
 baccalaureate certificate (including 
 the coursework specified in paragraphs 
 (3)(B) and (4)(B) of section 484(b)).
 (iii) Graduate credential.--When used 
 with respect to a credential or 
 credential level, the term ``graduate 
 credential'' includes credentials such 
 as a master's degree, a doctoral 
 degree, a professional degree, and a 
 postgraduate certificate.
 (3) Program of study student cohort.--
 (A) In general.--The term ``program of study 
 student cohort'' means the cohort of 
 individuals who completed a specific program of 
 study at an institution of higher education 
 during the same award year, except that such 
 cohort shall only include an individual who 
 received Federal financial aid under this title 
 during the period the individual was enrolled 
 in such program of study.
 (B) Small cohorts.--With respect to such a 
 program of study student cohort that has fewer 
 than 30 individuals, the Secretary shall 
 aggregate additional years of data for the 
 program of study in order to achieve a cohort 
 of at least 30 individuals.
 (4) Religious mission.--The term ``religious 
 mission''--
 (A) means a published institutional mission 
 that is approved by the governing body of an 
 institution of higher education and that 
 includes, refers to, or is predicated upon 
 religious tenets, beliefs, or teachings; and
 (B) may be reflected in any of the 
 institution's policies, decisions, or practices 
 related to such tenets, beliefs, or teachings 
 (including any policies or decisions concerning 
 housing, employment, curriculum, self-
 governance, or student admission, continuing 
 enrollment, or graduation).
 (5) Total price.--With respect to a student who 
 received Federal financial assistance under this title 
 and who completes a program of study, the term `total 
 price' means the total amount, before Federal financial 
 assistance under this title was applied, a student was 
 required to pay to complete the program of study. A 
 student's total price shall be calculated by the 
 Secretary as the difference between--
 (A) the total amount of tuition and fees that 
 were charged to such student before the 
 application of any Federal financial assistance 
 provided under this title; minus
 (B) the total amount of grants and 
 scholarships described in section 480(i) 
 awarded to such student from non-Federal 
 sources for such program of study.
 (6) Value-added earnings.--
 (A) Value-added earnings.--
 (i) In general.--The term ``value-
 added earnings'' mean--
 (I) the median annual 
 earnings of a program of study 
 student cohort, as adjusted 
 pursuant to clause (iii) (as 
 appropriate), minus
 (II) the product of--
 (aa) the poverty line 
 applicable to a single 
 individual, (as 
 determined under 
 section 673(2) of the 
 Community Services 
 Block Grant Act (42 
 U.S.C. 9902(2))) for 
 the year in which such 
 earnings were measured; 
 and
 (bb) the applicable 
 percentage described in 
 clause (ii).
 (ii) Applicable percentage.--The 
 applicable percentage described in this 
 clause is--
 (I) in the case of a program 
 of study student cohort for 
 program of study that awards an 
 undergraduate credential, 150 
 percent; and
 (II) in the case of a program 
 of study student cohort for a 
 program of study that awards a 
 graduate credential, 300 
 percent.
 (iii) Geographic adjustment.--Except 
 in the case of a program of study 
 student cohort in which 50 percent or 
 more of the individuals in such cohort 
 participated exclusively online, the 
 Secretary shall adjust the median 
 annual earnings of a program of study 
 student cohort by the regional price 
 parity index of the Bureau of Economic 
 Analysis for the metropolitan 
 statistical area in which the 
 institution offering such program is 
 located.
 (B) Annual earnings.--
 (i) Annual earnings.--The term 
 ``annual earnings'' means the earnings 
 of an individual who is in a program of 
 study student cohort, who is working, 
 and who is not enrolled at an 
 institution, measured--
 (I) in the case of an 
 undergraduate certificate, 
 post-baccalaureate certificate, 
 or graduate certificate, 1 year 
 after completion of such 
 program;
 (II) in the case of an 
 associates or masters degree, 2 
 years after completion of such 
 program; and
 (III) in the case of 
 bachelor's degree, doctoral 
 degree, or professional degree, 
 4 years after completion of 
 such program.
 (ii) Exception.--The Secretary may, 
 as the Secretary determines appropriate 
 based on the characteristics of a 
 program of study, extend the applicable 
 measurement period under clause (i) for 
 a program of study that--
 (I) requires completion of an 
 additional educational program 
 (such as a residency or 
 fellowship) after completion of 
 the program of study in order 
 to obtain licensure or board 
 certification associated with 
 the credential awarded for such 
 program of study; and
 (II) when combined with the 
 program length of such 
 additional educational program 
 for licensure or board 
 certification, has a total 
 program length that exceeds the 
 applicable measurement period 
 under clause (i) for such 
 program of study,
 except that in no case shall the annual 
 earnings of an individual be measured 
 more than 1 year after the individual 
 completes such additional educational 
 program.

 * * * * * * *

Source: H. Rept. 119-414 · govinfo

How this bill changes current law

11 changes Share ↗

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill modifies the criteria for accrediting agencies, refining definitions and processes related to accreditation and enhancing measures related to educational quality and outcomes.

  • 20 U.S.C. 1099b(a)

    or training → or skills development

    Changes the terminology from 'training' to 'skills development' to better reflect the purpose of accreditation.

  • 20 U.S.C. 1099b(a)(1)

    operating as an accrediting agency or association within the State, region, or nationally, as appropriate; → operating as an institutional or programmatic accrediting agency or association within the State or nationally, as appropriate;

    Clarifies that the agency must operate as either an institutional or a programmatic accrediting body.

  • 20 U.S.C. 1099b(a)(2)(A)(i)

    principal

    Removes the word 'principal', broadening the scope of agency purposes.

  • 20 U.S.C. 1099b(a)(2)(A)(ii)

    its principal → a

    Changes the wording to allow for broader participation in accreditation.

  • 20 U.S.C. 1099b(a)(2)

    is an entity (such as an industry-specific quality assurance entity) that has been determined by a State to be a reliable authority as to the quality of education or skills development offered in such State for the purposes of this Act; and designated (in accordance with subsection (b)(1)) by such State as an accrediting agency or association with respect to such State for such purposes;

    Creates a new category for accrediting entities recognized by states for their quality assurance.

  • 20 U.S.C. 1099b(a)(3)(A)

    separate and independent, both administratively and financially of → distinctly incorporated or organized; and both administratively and financially separate from, and independent of,

    Revises the criteria for independence and governance of accrediting agencies.

  • 20 U.S.C. 1099b(a)(4)(B)

    and

    Allows for different criteria in the enforcement of standards related to religious missions and their relation to accreditation.

  • 20 U.S.C. 1099b(a)(4)(B)

    not using as a negative factor the institution's religious mission based policies, decisions, and practices in the areas covered by subparagraphs (B), (C), (D), (E), and (F) of paragraph (5) → not using as a negative factor the institution's religious mission based policies, decisions, and practices

    Revises language to clarify what is considered in the evaluation of institutions with religious missions.

  • 20 U.S.C. 1099b(a)(6)(A)

    success with respect to student achievement outcomes in relation to the institution's mission and to the programs the institution offers, or the mission of a specific degree, certificate, or credential program, which may include different standards for different institutions or programs of study, and which shall include a comparison of the median total price charged to students in a program of study student cohort to the value-added earnings of such cohort; completion rates; retention rates; and loan repayment rates;

    Expands the criteria for assessing student achievement to include various specific metrics.

  • 20 U.S.C. 1099b(a)(6)(B)

    record of student complaints received by, or available to, the agency or association, and the institution's process for resolving complaints against the institution;

    Requires accrediting agencies to maintain records of student complaints and the resolution processes of institutions.

  • 20 U.S.C. 1099b(b)

    Subsection (b) is amended to enhance the State's plan approval process for designating accrediting agencies.

    Requires more structured guidelines and public processes for states when selecting accrediting agencies.

Action History

  1. Introduced in House

  2. Introduced in House

  3. Referred to the House Committee on Education and Workforce.

  4. Committee Consideration and Mark-up Session Held

  5. Ordered to be Reported (Amended) by the Yeas and Nays: 21 - 15.

  6. Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-414.

  7. Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-414.

  8. Placed on the Union Calendar, Calendar No. 360.

Sponsors

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 545 not signed on

Sponsors (1)

Co-sponsors (1)

Not signed on (545)

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Frequently asked questions

What does HR 4054 do?
Accreditation Choice and Innovation ActThis bill revises the accreditation process for reviewing the quality of education offered by institutions of higher education (IHEs).Under current law, an IHE seeking to participate in many federal programs (e.g., federal student aid programs) must be accredited by an agency recognized by the Department of Education (ED) as a reliable authority on the quality of the education being offered at the IHE. An ED-recognized accrediting agency must meet various provisions under the Higher Education Act of 1965 and in regulations.Under this bill, states may designate an entity (e.g., an industry-specific quality assurance entity) as an accrediting agency for programs or IHEs in the state. The bill outlines the requirements for the state to submit a plan to ED and for ED to respond to the plan. Additionally, the bill provides an accelerated path to recognition by authorizing ED to recognize new accrediting agencies within two years of their application. ED must convene a panel of experts to develop common terminology for accrediting agencies to use in making accrediting decisions and publish those recommendations.Further, the bill (1) requires accrediting agencies to establish specified standards for measures assessing student success (e.g., labor market outcomes), and (2) requires accrediting agencies to establish procedures for assessing compliance with agency standards that reflect an IHE's risk of losing accreditation.The bill reauthorizes through September 30, 2028, and revises the National Advisory Committee on Institutional Quality and Integrity, which advises ED on matters related to accreditation.
Who sponsors HR 4054?
HR 4054 is sponsored by Fine, Randy (Republican) and Messmer, Mark B. (Republican).
What is the current status of HR 4054?
This bill is in committee in the House. Introduced June 20, 2025. It must pass committee before a floor vote.
Where can I track HR 4054?
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