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A bill to amend the Higher Education Act of 1965 to provide for accreditation reform, and for other purposes.

Introduced Jul 21, 2026 · Last action Jul 21, 2026 Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

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Summary

This legislation is called the A bill to amend the Higher Education Act of 1965 to provide for accreditation reform, and for other purposes. It is being reviewed by a committee.

Full bill text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5053 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
  2d Session
                                S. 5053

To amend the Higher Education Act of 1965 to provide for accreditation
                    reform, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 21, 2026

Ms. Warren (for herself and Mr. Durbin) introduced the following bill;
     which was read twice and referred to the Committee on Health,
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

To amend the Higher Education Act of 1965 to provide for accreditation
                    reform, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Accreditation Reform and Enhanced
Accountability Act of 2026''.

SEC. 2. PURPOSE.

    The purpose of this Act is to improve the effectiveness of
recognized accreditation as an eligibility requirement for Federal
education funding and to increase the accountability of institutions of
higher education for student outcomes.

SEC. 3. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.

    Section 496 of the Higher Education Act of 1965 (20 U.S.C. 1099b)
is amended--
            (1) in subsection (g)--
                    (A) in the subsection heading, by striking
                ``Limitation on'';
                    (B) by striking ``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.''; and
                    (C) by adding at the end the following: ``Nothing
                in this section shall prohibit the Secretary from
                establishing regulations regarding the criteria for
                accrediting agencies or associations that are required
                under this section, including criteria or standards
                with respect to student achievement, or from
                establishing differentiated recognition processes for
                accrediting agencies or associations. Nothing in this
                section shall be construed to permit the Secretary to
                establish any regulation that limits the academic
                freedom of an institution of higher education, such as
                any criterion that specifies, defines, or prescribes
                standards on curriculum, faculty, or instructional
                resources.''; and
            (2) in subsection (o), by striking ``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).''.

SEC. 4. ACCREDITATION STANDARDS.

    Section 496(a) of the Higher Education Act of 1965 (20 U.S.C.
1099b(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking ``of
        student achievement'' and inserting ``for the effectiveness of
        accrediting agencies or associations'';
            (2) in paragraph (4)(A), by striking ``the stated objective
        for which the courses or the programs are offered'' and
        inserting ``the objectives for which courses or programs of
        this type are offered''; and
            (3) in paragraph (5)--
                    (A) in the matter preceding subparagraph (A), by
                striking ``the standards for accreditation of the
                agency or association assess the institution's'' and
                inserting ``the standards for accreditation of the
                agency or association establish benchmarks for the
                measures and data definitions established by the
                Secretary (as described in subsection (r)) with respect
                to such standards and assess and make accreditation
                determinations based on the institution's'';
                    (B) by striking subparagraph (A) and inserting the
                following:
                    ``(A) outcomes and success with respect to student
                achievement in relation to the institution's mission,
                according to the list of measures and data definitions
                established by the Secretary, and data provided by the
                Secretary to accrediting agencies or associations;'';
                    (C) in subparagraph (I), by inserting ``and any
                actions taken against the institution by any State or
                the Federal Government, including ongoing
                investigations, lawsuits that have survived motions to
                dismiss, settlements, or any judgments against the
                institution in a State or Federal court relating to
                fraud, fiscal misconduct, or deceptive practices,''
                after ``the agency or association'';
                    (D) by striking subparagraph (J) and inserting the
                following:
                    ``(J) record of compliance with its program
                responsibilities under this title based on information
                the Secretary may provide to the agency or association;
                and''; and
                    (E) in the flush matter at the end, by striking
                ``subparagraphs (A), (H), and (J)'' and inserting
                ``subparagraphs (H) and (J)''.

SEC. 5. MEASURES FOR STUDENT ACHIEVEMENT.

    Section 496 of the Higher Education Act of 1965 (20 U.S.C. 1099b)
is amended by adding at the end the following:
    ``(r) Measures for Student Achievement.--
            ``(1) In general.--In order to be recognized by the
        Secretary as a reliable authority as to the quality of
        education or training offered by an institution of higher
        education seeking to participate in the programs authorized
        under this title or for the purpose of participation in other
        programs administered by the Department of Education or other
        Federal agencies requiring approval, an accrediting agency or
        association shall set baseline thresholds on measures and data
        definitions established by the Secretary and require that each
        institution of higher education or program subject to its
        jurisdiction meet or exceed the baseline thresholds for the
        student achievement measures described in paragraph (2), in
        order to remain accredited by the agency or association.
            ``(2) Student achievement measures.--The Secretary shall
        establish student achievement measures for use by accrediting
        agencies and associations under paragraph (1), such as measures
        of academic progression, loan repayment outcomes, post-college
        earnings, and debt relative to earnings, or any other measure,
        as determined by the Secretary through regulation, developed in
        consultation with the Commissioner of the National Center for
        Education Statistics.
            ``(3) Data definitions.--The Secretary shall, through
        regulations, establish data definitions for each of the student
        achievement measures described in paragraph (2) in relation to
        the institution's mission.
            ``(4) Student achievement data.--The Secretary shall
        annually provide the necessary institutional or programmatic
        student achievement data to accrediting agencies and
        associations to carry out this subsection.
            ``(5) Review of student achievement standards.--To assess
        an accrediting agency or association's effectiveness in setting
        benchmarks under subsection (a)(5), the Secretary shall, during
        the recognition process, select not fewer than 10 of the
        institutions or programs approved by the accrediting agency or
        association and review the benchmarks established by the agency
        or association for such institutions or programs, their
        performance on standards, and any action taken by the
        accrediting agency with respect to the institution's or
        program's compliance on student achievement.
            ``(6) Rule of construction.--Nothing in this subsection
        shall be construed as prohibiting an accrediting agency or
        association from assessing institutions of higher education or
        programs beyond what is required by this subsection, or in
        subsection (a)(5)(A), for the purposes of continuous
        institutional or programmatic improvement.''.

SEC. 6. ACCREDITATION REVIEWS.

    Section 496 of the Higher Education Act of 1965 (20 U.S.C. 1099b),
as amended by section 5, is further amended by adding at the end the
following:
    ``(s) Accreditation Reviews.--
            ``(1) Standard reviews.--In order to be recognized by the
        Secretary as a reliable authority as to the quality of
        education or training offered by an institution of higher
        education seeking to participate in the programs authorized
        under this title or a program seeking to participate in another
        Federal program requiring approval, an accrediting agency or
        association shall--
                    ``(A) require that each institution of higher
                education or program subject to its jurisdiction
                undergo a standard accreditation review at regular
                intervals as determined by the agency or association,
                and before the agency or association first provides
                accreditation to such institution or program; and
                    ``(B) conduct the standard accreditation review and
                make accreditation determinations based on the
                standards described in subsection (a)(5).
            ``(2) Enhanced accreditation reviews.--
                    ``(A) In general.--In order to be recognized by the
                Secretary as a reliable authority as to the quality of
                education or training offered by an institution of
                higher education seeking to participate in the programs
                authorized under this title or for the purpose of
                participation in other programs administered by the
                Department of Education or other Federal agencies
                requiring approval, an accrediting agency or
                association shall carry out an enhanced accreditation
                review of an institution of higher education or program
                subject to its jurisdiction--
                            ``(i) immediately after the agency or
                        association learns--
                                    ``(I) that the institution is the
                                subject of an investigation,
                                settlement, or adverse judgment by a
                                Federal authority (other than the
                                Department) or a State for a violation
                                relating to fraud, fiscal misconduct,
                                or deceptive practices at the
                                institution; or
                                    ``(II) of any other situation or
                                factor required by the Secretary
                                through regulations promulgated under
                                this section that relate to the student
                                achievement measures described in
                                subsection (r);
                            ``(ii) if the agency or association has
                        reason to believe that the institution is
                        failing to meet its program responsibilities
                        under this title or is engaged in fraud, fiscal
                        misconduct, or deceptive practices at the
                        institution; or
                            ``(iii) at any other time the agency or
                        association determines necessary, as outlined
                        in the agency or association's standards.
                    ``(B) Content of an enhanced accreditation
                review.--For each enhanced accreditation review
                required under subparagraph (A)--
                            ``(i) the accrediting agency or association
                        may consider any of the factors that it
                        considers during a standard accreditation
                        review;
                            ``(ii) the accrediting agency or
                        association shall--
                                    ``(I) investigate the issue that
                                triggered the enhanced accreditation
                                review; and
                                    ``(II) determine if the
                                accreditation of the institution or
                                program should be withdrawn or
                                suspended, or if the institution or
                                program should be placed on a
                                continuous improvement plan, or if any
                                other action should be taken; and
                            ``(iii) the institution or program shall be
                        required to make additional disclosures,
                        related to the determination of the enhanced
                        accreditation review, to the students attending
                        the institution and to the public, such as
                        written notification when the institution or
                        program receives an accredited with risk
                        designation and transfer options available for
                        the student to continue their education
                        elsewhere from the institution's teach-out
                        plan.
                    ``(C) Review reporting requirements.--
                            ``(i) In general.--An accrediting agency or
                        association that conducts an enhanced
                        accreditation review under this paragraph
                        shall, not later than 30 days after the
                        conclusion of the review, make available to the
                        public on the agency or association's website
                        and submit to the Secretary, the appropriate
                        State licensing or authorizing agency, and the
                        appropriate State Attorney General--
                                    ``(I) when the agency or
                                association initiates the enhanced
                                accreditation review and the reason for
                                conducting the enhanced accreditation
                                review;
                                    ``(II) at the conclusion of the
                                enhanced accreditation review, the
                                information obtained by the agency or
                                association as part of the enhanced
                                accreditation review, including the
                                institution or program's performance on
                                the student achievement measures, to
                                the extent required by the Secretary
                                through regulations promulgated under
                                this section; and
                                    ``(III) at the conclusion of the
                                enhanced accreditation review, the
                                outcome of the enhanced accreditation
                                review and an explanation of the
                                reasons for any actions taken as a
                                result of the enhanced accreditation
                                review.
                            ``(ii) Report.--The Secretary shall submit
                        an annual report to the authorizing committees,
                        the Committee on Appropriations of the Senate,
                        and the Committee on Appropriations of the
                        House of Representatives that summarizes all
                        reports of enhanced accreditation reviews
                        received under this paragraph.''.

SEC. 7. ACCREDITATION AGENCY ACTION.

    Section 496 of the Higher Education Act of 1965 (20 U.S.C. 1099b),
as amended by sections 5 and 6, is further amended by adding at the end
the following:
    ``(t) Accreditation Agency Action.--
            ``(1) In general.--In order to be recognized by the
        Secretary as a reliable authority as to the quality of
        education or training offered by an institution of higher
        education seeking to participate in the programs authorized
        under this title, an accrediting agency or association shall
        agree to take action, as described in paragraph (2), with
        respect to an institution of higher education subject to its
        jurisdiction if any of the following occur:
                    ``(A) Change in ownership of the institution that
                includes a conversion from proprietary to nonprofit or
                public control.
                    ``(B) Rapid change in size of student population at
                the institution, as defined by the Secretary in
                regulations promulgated under this section.
                    ``(C) Any notification by the Secretary to the
                agency or association of poor financial health,
                including--
                            ``(i) a lowering in the credit rating
                        provided to the institution by a credit rating
                        agency (as defined in section 3(a) of the
                        Securities Exchange Act of 1934 (15 U.S.C.
                        78c(a))); and
                            ``(ii) any other indicator of financial
                        weakness as defined by the Secretary, which may
                        include heightened cash monitoring or the
                        requirement to post a letter of credit.
                    ``(D) Any other event determined by the Secretary.
                    ``(E) Any other event determined by the accrediting
                agency or association.
            ``(2) Actions.--The actions that may be taken by an
        accrediting agency or association under this paragraph are the
        following:
                    ``(A) An enhanced accreditation review.
                    ``(B) Formal accrediting action taken by the agency
                or association, such as a compliance assessment or the
                imposition of formal conditions on accreditation that
                may occur separate from the standard accreditation
                reviews.
                    ``(C) A formal request for additional information.
                    ``(D) A recommendation that the institution
                carefully monitor and report to the accrediting agency
                or association factors relating to the event described
                in paragraph (1), or put into place appropriate
                controls or improvement strategies relating to such
                event.
                    ``(E) Other actions determined appropriate by the
                accrediting agency or association.''.

SEC. 8. OPERATING PROCEDURES.

    (a) Notification.--Section 496(a)(7) of the Higher Education Act of
1965 (20 U.S.C. 1099b(a)(7)) is amended--
            (1) by striking ``the Secretary and the appropriate State
        licensing or authorizing agency within 30 days'' and inserting
        ``the Secretary, the appropriate State licensing or authorizing
        agency, and the appropriate State Attorney General, within 30
        days''; and
            (2) by striking ``adverse'' and inserting ``negative''.
    (b) Availability to the Public.--Section 496(c) of the Higher
Education Act of 1965 (20 U.S.C. 1099b(c)) is amended--
            (1) in paragraph (7)--
                    (A) in the matter preceding subparagraph (A), by
                striking ``makes available to the public and the State
                licensing or authorizing agency, and submits to the
                Secretary, a summary of agency or association actions''
                and inserting ``makes available to the public on the
                agency or association's website and submits to the
                Secretary (who shall submit to the Committee on Health,
                Education, Labor, and Pensions and the Committee on
                Appropriations of the Senate and the Committee on
                Education and Workforce and the Committee on
                Appropriations of the House of Representatives), the
                appropriate State licensing or authorizing agency, and
                the appropriate State Attorney General, and other
                relevant agencies, which may include the Bureau of
                Consumer Financial Protection, the Federal Trade
                Commission, the Department of Defense, and the
                Department of Veterans Affairs, as appropriate, a
                summary of and justification for the final decision
                issued to the institution regarding each accreditation
                action''; and
                    (B) in subparagraph (C), by striking ``adverse
                action taken with respect to an institution or
                placement on probation of an institution'' and
                inserting ``negative action taken, including an order
                to show cause, with respect to an institution or
                program, or placement on probation of an institution or
                program'';
            (2) in paragraph (8), by striking ``and'' after the
        semicolon; and
            (3) by adding at the end the following:
            ``(10) turns over to the Secretary all accreditation
        documents of an institution that closes; and''.

SEC. 9. CONFLICT OF INTEREST.

    Section 496(a) of the Higher Education Act of 1965 (20 U.S.C.
1099b(a)) is amended--
            (1) in paragraph (7), by striking ``and'' after the
        semicolon;
            (2) in paragraph (8), by striking the period at the end and
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(9) such agency or association prohibits an individual--
                    ``(A) from participating in any review or decision-
                making role in any part of the agency's or
                association's accreditation process, including service
                on the agency's or association's commission or
                governing board and reviewing or deciding on
                accreditation policies or the accreditation status of
                institutions or programs, if the individual, or a
                family member of the individual (as defined by the
                Secretary)--
                            ``(i) is an administrative officer of an
                        institution of higher education accredited by
                        or seeking accreditation from such agency or
                        association;
                            ``(ii) has a financial stake in any
                        institution of higher education (other than as
                        an employee), including as an investor,
                        bondholder, creditor, vendor, or contractor;
                            ``(iii) has a fiduciary responsibility to
                        an institution of higher education accredited
                        by or seeking accreditation from such agency or
                        association;
                            ``(iv) is a federally registered lobbyist;
                            ``(v) is ineligible to participate under
                        regulations prescribed by the Secretary based
                        on affiliation with an institution that has a
                        history of administrative or legal action
                        brought on behalf of students or taxpayers, or
                        that currently faces such action, or that
                        closed without providing equitable treatment of
                        students; or
                            ``(vi) is a former executive leader from an
                        accrediting agency or association that lost
                        recognition under this section; and
                    ``(B) from participating in any review or decision-
                making role in any part of the agency's or
                association's accreditation process with respect to a
                particular institution or program, if the individual,
                or a family member of the individual (as defined by the
                Secretary), is an employee or was an employee in the
                preceding 3 years of the institution or program.''.

SEC. 10. ACCREDITATION AGENCY ACCOUNTABILITY.

    (a) In General.--Section 496 of the Higher Education Act of 1965
(20 U.S.C. 1099b) is amended--
            (1) in subsection (l)(1)--
                    (A) in subparagraph (A), by striking ``or'' after
                the semicolon;
                    (B) in subparagraph (B)(ii), by striking the period
                at the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(C) impose a fine if the agency or association
                failed to notify the Secretary when the agency or
                association had reason to believe an institution of
                higher education was failing to meet its program
                responsibilities under this title or was engaged in
                fraud, fiscal misconduct, or deceptive practices at the
                institution, or failed to take action under subsection
                (t)(2) for such an institution.''; and
            (2) in subsection (n)--
                    (A) in paragraph (3)--
                            (i) in the first sentence, by inserting
                        ``or any institution that the agency or
                        association accredits'' before the period at
                        the end; and
                            (ii) by inserting after the first sentence
                        the following: ``The Secretary shall conduct a
                        performance-based review and make a holistic
                        judgment regarding whether the accrediting
                        agency or association is a reliable authority
                        on the quality of postsecondary education,
                        including the quality of the agency's or
                        association's processes to accurately assess
                        outcomes and success with respect to student
                        achievement of the institutions the agency or
                        association accredits to deliver a quality
                        education consistent with the missions of the
                        institutions, and the effectiveness,
                        timeliness, and consistency of the accrediting
                        agency or association in addressing the
                        standards in subsection (a).''; and
                    (B) by adding at the end the following:
            ``(5)(A) Not later than 30 days after a finding by a
        Federal or State agency or court of law that an institution of
        higher education has violated a Federal or State law related to
        fraud, fiscal misconduct, or deceptive practices at the
        institution of higher education, been the subject of a
        settlement or lawsuit that has survived a motion to dismiss by
        a State or Federal entity related to fraud, fiscal misconduct,
        or deceptive practices, or filed for bankruptcy, the Secretary
        shall carry out the following:
                    ``(i) Initiate a review of the accrediting agency
                or association that accredited the institution to
                determine if the accrediting agency or association
                failed to effectively apply the criteria in this
                section, or is otherwise not in compliance with the
                requirements of this section, and, if the accrediting
                agency or association is not in compliance, shall
                initiate action pursuant to subsection (l) to take any
                or all of the following actions:
                            ``(I) Limit, suspend, or terminate
                        recognition of the agency or association.
                            ``(II) Require the agency or association to
                        take appropriate action.
                            ``(III) Impose a fine for noncompliance.
                    ``(ii) Make publicly available the initiation of
                the review and outcome.
            ``(B) The Office of Inspector General of the Department
        shall review, once every 3 years, the Secretary's actions under
        this subsection, along with findings by the Secretary and
        provide recommendations on appropriate fines or actions
        (including withdrawing approval or recognition of the
        accrediting agency or association) against an accrediting
        agency or association sanctioned under this section to the
        Secretary and appropriate Department staff.
            ``(C) The Office of Inspector General of the Department
        shall provide a report that is made available to the public and
        provide a copy to the National Advisory Committee on
        Institutional Quality and Integrity, the Committee on Health,
        Education, Labor, and Pensions of the Senate, and the Committee
        on Education and Workforce of the House of Representatives on
        the review under subparagraph (B).
            ``(D) Any monetary penalty or payment assessed by an
        accrediting agency or association on institutions of higher
        education subject to the jurisdiction of the agency or
        association as a result of a fine imposed under this paragraph
        shall be assessed equally to each institution subject to the
        jurisdiction of the agency or association.''.

SEC. 11. CREDIT TRANSFER AGREEMENT.

    Section 496(c) of the Higher Education Act of 1965 (20 U.S.C.
1099b(c)), as amended by section 8(b), is further amended by adding at
the end the following:
            ``(11)(A) not later than 4 years after the date of
        enactment of the Accreditation Reform and Enhanced
        Accountability Act of 2026, requires that each institution
        subject to the jurisdiction of the agency or association have a
        credit transfer agreement with all other institutions
        accredited by the agency or association that provides for the
        transfer of credit earned for all general education courses and
        for courses required as part of substantially similar programs;
        and
            ``(B) confirms, as a part of the accreditation or
        reaccreditation review conducted by the agency or association,
        that the institution has transfer of credit policies that--
                    ``(i) meet the requirements of subparagraph (A);
                    ``(ii) are publicly disclosed; and
                    ``(iii) include a statement of the criteria
                established by the institution regarding the transfer
                of credit earned at another institution of higher
                education.''.

SEC. 12. ACCREDITATION DISCLOSURE.

    (a) Accreditation Disclosure System.--Part G of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1088 et seq.) is amended by
adding at the end the following:

``SEC. 494A. ACCREDITATION DISCLOSURE SYSTEM.

    ``(a) In General.--Not later than 18 months after the date of
enactment of the Accreditation Reform and Enhanced Accountability Act
of 2026, the Secretary shall design and establish standards for
standardized online accreditation disclosures by institutions of higher
education that participate in any program under this title. The
Secretary shall require each such institution of higher education to--
            ``(1) display, prominently on the institution's website, a
        standard form of disclosure of the institution's accreditation
        status, designed by the Secretary, including whether the status
        is under appeal;
            ``(2) regularly update such display as its accreditation
        status changes; and
            ``(3) include a link from such display, including on the
        homepage of the institution's website, to any applicable
        supporting public documentation relating to the institution's
        accreditation status, including correspondence to and from the
        accrediting agency or association.
    ``(b) Accreditation Terminology.--The Secretary shall establish by
regulation common definitions for the various accreditation statuses
and actions taken by accrediting agencies and associations, for use by
such agencies and associations in all public documents and reporting to
the Secretary, State licensing or authorizing agency, and State
Attorneys General.
    ``(c) Coordination.--In developing the system described in
subsection (a), the Secretary shall consult with the Committee on
Health, Education, Labor, and Pensions of the Senate and the Committee
on Education and Workforce of the House of Representatives, other
Federal agencies, student and consumer advocacy groups, institutions of
higher education, accrediting agencies and associations, and other
entities determined appropriate by the Secretary.
    ``(d) Accreditation Status.--In this section, the term
`accreditation status' means--
            ``(1) the issuance of any order to show cause;
            ``(2) the initiation of an enhanced accreditation review
        under this Act and any action taken as a result of such review;
            ``(3) any action taken pursuant to section 496(t)(2);
            ``(4) any other action taken by an accrediting agency or
        association, as described in subparagraph (A), (B), or (C) of
        section 496(c)(8); and
            ``(5) any other factor determined appropriate by the
        Secretary through regulation.
    ``(e) Transparency.--Not later than 1 year after the date of
enactment of the Accreditation Reform and Enhanced Accountability Act
of 2026, the Secretary shall collect from accrediting agencies and
associations and publish on a federally maintained website all final
documents produced in the agencies' and associations' reviews of
institutions of higher education, including site visit reports,
decision letters, a list of members of the review committees, and all
other final documents that the Secretary determines appropriate.''.
    (b) Program Participation Agreement.--Section 487(a) of the Higher
Education Act of 1965 (20 U.S.C. 1094(a)) is amended by adding at the
end the following:
            ``(30) Not later than 3 years after the date of enactment
        of the Accreditation Reform and Enhanced Accountability Act of
        2026, the institution will use, prominently on the
        institution's website, the standardized online accreditation
        disclosure system established by the Secretary under section
        494A to--
                    ``(A) disclose the accreditation status of the
                institution; and
                    ``(B) update the disclosure within 48 hours of
                receiving notification from an accrediting agency or
                association of a change in accreditation status.''.

SEC. 13. DIFFERENTIATED ACCREDITATION STATUS.

    Section 496 of the Higher Education Act of 1965 (20 U.S.C. 1099b),
as amended by sections 5, 6, and 7, is further amended by adding at the
end the following:
    ``(u) Differentiated Accreditation Status.--
            ``(1) In general.--Solely for purposes of consumer
        information, an accrediting agency or association may designate
        an institution of higher education or program that the agency
        or association accredits as `accredited with distinction' or
        `accredited with risk' according to definitions developed by
        the Secretary under paragraph (2).
            ``(2) Designation definitions.--The Secretary, through
        regulation, shall develop definitions of `accredited with
        distinction' and `accredited with risk' that an accrediting
        agency or association shall use in making designations under
        paragraph (1) based on student achievement standards developed
        in accordance with subsection (a)(5)(A) in relation to the
        institution of higher education's mission.''.

SEC. 14. TEACH-OUT AGREEMENTS AND PLANS.

    Section 496(c) of the Higher Education Act of 1965 (20 U.S.C.
1099b(c)), as amended by sections 8 and 11, is further amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3)(A) requires an institution to submit for approval to
        the accrediting agency or association a teach-out agreement
        if--
                    ``(i) the accrediting agency or association acts to
                withdraw, terminate, or suspend the accreditation of
                the institution;
                    ``(ii) the accrediting agency or association
                requires the institution to show cause for continued
                accreditation; or
                    ``(iii) the institution notifies the accrediting
                agency or association that the institution intends to
                cease operations;
            ``(B) requires an institution to--
                    ``(i) submit for approval to the accrediting agency
                or association a teach-out plan not later than 30 days
                after the date--
                            ``(I) the Department notifies the
                        accrediting agency or association of an action
                        against the institution pursuant to section
                        487(f);
                            ``(II) the accrediting agency or
                        association places the institution on probation
                        or show cause, or notifies the institution that
                        the agency or association deems it a high-risk
                        institution;
                            ``(III) the institution is required to post
                        a Letter of Credit to the Department of
                        Education;
                            ``(IV) the institution is placed on
                        Heightened Cash Monitoring 2;
                            ``(V) the institution receives a failing
                        Financial Responsibility Composite Score;
                            ``(VI) the institution is subject to an
                        enhanced accreditation review under subsection
                        (s)(2); or
                            ``(VII) the institution is at risk under
                        regulations prescribed by the Secretary for
                        this purpose; and
                    ``(ii) regularly update and maintain the teach-out
                plan until such time as the Secretary determines; and
            ``(C) does not approve a teach-out agreement or plan that
        includes a plan for the participation of any institution of
        higher education that is the subject of an investigation,
        settlement, or adverse judgment by a Federal authority
        (including the Department) or a State for a violation relating
        to fraud, fiscal misconduct, or deceptive practices at the
        institution;'';
            (2) by redesignating paragraphs (4) through (11) as
        paragraphs (5) through (12), respectively; and
            (3) by inserting after paragraph (3) the following:
            ``(4) with respect to private institutions, ensures that
        sufficient funds have been, or will be, allocated to carry out
        all teach-out plans and agreements required under paragraph
        (3);''.

SEC. 15. JURISDICTION.

    Section 496 of the Higher Education Act of 1965 (20 U.S.C. 1099b),
as amended by sections 5, 6, 7, and 13, is further amended by adding at
the end the following:
    ``(v) Jurisdiction.--Notwithstanding any other provision of law,
any civil action brought by any party regarding this section or
implementing regulations, or 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.''.

SEC. 16. CHANGE OF ACCREDITOR.

    Section 496(h) of the Higher Education Act of 1965 (20 U.S.C.
1099b(h)) is amended to read as follows:
    ``(h) Change of Accrediting Agency or Association.--
            ``(1) In general.--The Secretary shall not recognize the
        accreditation of any otherwise eligible institution of higher
        education that is in the process of changing its accrediting
        agency or association, including due to a change in ownership
        of the institution, unless--
                    ``(A) the institution submits for approval to the
                Secretary all materials relating to the prior
                accreditation, including materials that the Secretary
                determines demonstrate reasonable cause for changing
                the accrediting agency or association;
                    ``(B) the prior accrediting agency or association
                confirms to the Secretary that it has no active
                actions, investigations, or concerns it is monitoring
                for the institution;
                    ``(C) the institution has not been subject to an
                adverse action, probation, or show cause in the
                preceding 24-month period;
                    ``(D) the switch is voluntary and not compelled by
                a State law; and
                    ``(E) the institution was reaccredited under its
                prior accrediting agency or association's most recent
                accreditation standards.
            ``(2) List.--The Secretary shall publish an annual list of
        institutions of higher education that have changed their
        accrediting agency or association that includes, for each such
        institution, the prior accrediting agency or association and
        the new accrediting agency or association.''.

SEC. 17. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) nothing in this Act or the amendments made by this Act
        limits the generally accepted principles of academic freedom of
        an institution of higher education or should be construed as
        providing authority to the Secretary of Education to limit that
        academic freedom; and
            (2) independent, third-party accrediting agencies or
        associations that provide accreditation for institutions of
        higher education--
                    (A) should--
                            (i) remain free from political
                        interference;
                            (ii) use quality metrics to assess
                        institutions of higher education; and
                            (iii) make independent determinations about
                        accreditation; and
                    (B) should not be subject to the political
                preferences of changing Presidential administrations.

SEC. 18. RULES OF CONSTRUCTION; STUDENT ACHIEVEMENT DATA.

    Section 496 of the Higher Education Act of 1965 (20 U.S.C. 1099b),
as amended by sections 5, 6, 7, 13, and 15, is further amended by
adding at the end the following:
    ``(w) Differentiated Accreditation Processes.--Nothing in this
title shall be interpreted to prevent an accrediting agency or
association from establishing differentiated accreditation processes
for institutions or programs based on risk.
    ``(x) Applicability.--The provisions of this section shall apply to
both institutional and programmatic accreditation that is a condition
for an institution to be an eligible institution for the purposes of
any program authorized under this title.
    ``(y) Student Achievement Data.--
            ``(1) In general.--The Secretary shall provide the
        necessary student achievement data to accrediting agencies or
        associations needed to implement subsection (a)(5)(A).
            ``(2) Disaggregation.--To the extent practicable, the data
        described in paragraph (1) shall be provided to accrediting
        agencies or associations in a manner that can be disaggregated
        by Pell Grant recipient status, race or ethnicity, and
        gender.''.

SEC. 19. PROHIBITION ON TRANSFERRING ACCREDITATION RECOGNITION
              PROCESSES TO OTHER FEDERAL AGENCIES.

    (a) In General.--Notwithstanding any other provision of law and
subject to subsection (c), the Secretary of Education shall not procure
services from, contract or carry out an agreement with, obtain any
goods or services from, transfer activities to, or enter into a similar
arrangement with, another Federal agency relating to administering
sections 496 and 494A of the Higher Education Act of 1965 (20 U.S.C.
1099b and 1098i).
    (b) Applicability of Other Laws.--Subject to subsection (c),
section 430(a) of the General Education Provisions Act (20 U.S.C.
1231(a)), section 415 and 419 of the Department of Education
Organization Act (20 U.S.C. 3475, 3479), and section 1535 of title 31,
United States Code (commonly known as the ``Economy Act''), shall not
apply to this Act.
    (c) Exception.--This section shall not apply to--
            (1) any procurement, contract, agreement (including an
        agreement for obtaining goods or services), transfer, or
        similar arrangement, between the Department of Education and
        another Federal agency that was in effect on January 20, 2025;
        and
            (2) the renewal of such a procurement, contract, agreement,
        transfer, or similar arrangement described in this subsection.
                                 <all>

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Status

In Committee

  1. 1Introduced
  2. 2Committee
  3. 3Floor
  4. 4Passed
  5. 5Signed

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