119-hr4054

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4054 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 4054

 To amend the Higher Education Act of 1965 to reform accreditation.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 June 20, 2025

 Mr. Fine introduced the following bill; which was referred to the 
 Committee on Education and Workforce

_______________________________________________________________________

 A BILL

 To amend the Higher Education Act of 1965 to reform accreditation.

 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 Choice and Innovation 
Act''.

SEC. 2. ACCREDITING AGENCY RECOGNITION.

    (a) Criteria Required.--

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) , in the first 
 sentence, by striking ``or training'' and inserting ``or skills 
 development'';

    (2) by amending paragraph

    (1) to read as follows:
 ``

    (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;'';

    (3) in paragraph

    (2) --
        (A) in subparagraph
        (A) --
            (i) in clause
            (i) , by striking 
 ``principal''; and
            (ii) in clause
            (ii) , by striking ``its 
 principal'' and inserting ``a''; and
        (B) in subparagraph
        (B) , by striking ``or'' at the 
 end;
            (C) in subparagraph
            (C) , by inserting ``or'' at the 
 end; and
            (D) by adding at the end the following:
 ``
            (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;'';

    (4) in paragraph

    (3) --
        (A) by amending subparagraph
        (A) to read as 
 follows:
 ``
        (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; 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) 
 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;'';
        (B) by striking ``or'' at the end of subparagraph
        (B) ; and
            (C) by striking subparagraph
            (C) ;

    (5) in paragraph

    (4) --
        (A) in subparagraph
        (A) --
            (i) by inserting ``(in the manner described 
 in subparagraph
        (B) )'' after ``religious 
 missions''; and
            (ii) by striking ``and'' at the end; and
        (B) by striking subparagraph
        (B) and inserting the 
 following:
 ``
        (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 
 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:
 ``
        (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);
 ``
            (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); and''; and
        (B) by amending subparagraph
            (I) to read as 
 follows:
 ``
            (I) record of student complaints received by, or 
 available to, the agency or association, and a process 
 for resolving complaints received by the institution; 
 and''; and
            (C) in the matter following subparagraph
        (J) , by 
 striking ``subparagraphs
        (A) ,
        (H) , and
        (J) '' and 
 inserting ``subparagraph (
        (J) ''.

    (b) Secretarial Requirements and Authority.--Subsection

    (b) of 

section 496 of the Higher Education Act of 1965 (20 U.S.C. 1099b) is 
amended to read as follows:
 ``

    (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) ;
 ``
            (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
 ``
            (II) the Secretary's response to 
 such 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.--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; and
 ``
        (B) publish the recommendations for such common 
 terminology in the Federal Register with a 60-day 
 public comment period.''.
            (c) Operating Procedures Required.--

    (1) On-site inspections and reviews.--Paragraph

    (1) of 
 

section 496
            (c) (20 U.S.C. 1099b
            (c) ) is amended--
        (A) by inserting ``(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) )'' after ``intervals''; and
        (B) by striking ``, including those regarding 
 distance education''.

    (2) Mechanism to identify institutions and programs 
 experiencing difficulties.--

Section 496
            (c) (20 U.S.C. 1099b
            (c) ) 
 is further amended--
        (A) by redesignating paragraphs

    (2) through

    (9) as 
 paragraphs

    (3) through

    (10) , respectively; and
        (B) by inserting after paragraph

    (1) the following:
 ``

    (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;''.

    (3) Procedures with respect to substantive changes.--
 Paragraph

    (5) of 

section 496
            (c) (20 U.S.C. 1099b
            (c) ) (as 
 redesignated by paragraph

    (2)
        (A) ) is amended to read as 
 follows:
 ``

    (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;''.

    (4) Public availability.--

Section 496
            (c) (20 U.S.C. 
 1099b
            (c) ) is further amended--
        (A) in paragraph

    (8) (as redesignated by paragraph

    (2)
        (A) )--
            (i) in the matter preceding subparagraph
        (A) , by inserting ``, on the agency's or 
 association's website,'' after ``public''; and
            (ii) in subparagraph
            (C) , by inserting 
 before the semicolon at the end the following: 
 ``, and a summary of why such action was taken 
 or such placement was made'';
        (B) in paragraph

    (9) (as so redesignated), by 
 striking ``and'' at the end;
            (C) in paragraph

    (10)
        (B) (as so redesignated), by 
 striking the period at the end and inserting the 
 following: ``, 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;''; and
            (D) by adding at the end the following:
 ``

    (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;''.

    (5) Prohibition on assessment of elected or appointed 
 officials.--

Section 496
            (c) (20 U.S.C. 1099b
            (c) ) is further 
 amended by adding at the end the following:
 ``

    (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''.

    (6) Prohibition of practices that result in credential 
 inflation.--

Section 496
            (c) (20 U.S.C. 1099b
            (c) ) is further 
 amended by adding at the end the following:
 ``

    (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).''.
            (d) Limitation on Scope of Criteria.--

Section 496 (20 U.S.C. 1099b) 
is further amended by amending subsection

    (g) to read as follows:
 ``

    (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 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.''.

    (e) Change of Accrediting Agency.--

Section 496 (20 U.S.C. 1099b) is 
further amended by amending subsection

    (h) to read as follows:
 ``

    (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) ).''.

    (f) Dual Accreditation Rule.--

Section 496 (20 U.S.C. 1099b) is 
further amended by amending subsection
            (i) to read as follows:
 ``
            (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 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.''.

    (g) Religious Institutions Rule.--

Section 496 (20 U.S.C. 1099b) is 
further amended by amending subsection

    (k) to read as follows:
 ``

    (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.--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) ; 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 notice of an intent to file a 
 complaint or for filing a complaint under this 
 paragraph.
 ``
            (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.''.

    (h) Independent Evaluation.--

Section 496

    (n)

    (3) (20 U.S.C. 
1099b

    (n)

    (3) ) is amended by striking the last sentence.
            (i) Regulations.--

Section 496

    (o) (20 U.S.C. 1099b

    (o) ) is amended by 
inserting before the period at the end the following: ``, 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''.

    (j) Risk-Based Review Processes or Procedures; Waiver.--

Section 496 
(20 U.S.C. 1099b) is further amended--

    (1) by striking subsections

    (p) and

    (q) ; and

    (2) by adding at the end the following:
 ``

    (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 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).
 ``

    (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.''.

    (k) 

=== Definitions. ===
-

Section 496 (20 U.S.C. 1099b) is further amended 
by adding at the end the following:
 ``

    (q) 

=== Definitions. ===
-For purposes of this Act:
 ``

    (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) 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).
 ``

    (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. 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.
 ``

    (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) ); minus
 ``
            (ii) in the case of a student who 
 completed a program of study that awards--
 ``
            (I) an undergraduate credential, 
 150 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 such year; 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. 
 9902

    (2) ) for such year.
 ``
        (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; 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.
 ``
            (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.
 ``
            (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;
 ``
            (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; 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.
 ``
            (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.''.

SEC. 3. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND 
 INTEGRITY

    (NACIQI) .

 

Section 114 (20 U.S.C. 1011c) is amended--

    (1) in subsection

    (b) --
        (A) in paragraph

    (2) , by redesignating 
 subparagraphs
        (A) through
            (C) as clauses
            (i) through
            (iii) , respectively, and adjusting the margins 
 accordingly;
        (B) by striking ``Individuals'' and inserting the 
 following:
 ``
        (A) In general.--Individuals'';
            (C) in clause
            (ii) , as so redesignated, by striking 
 ``and training'' and inserting ``and skills 
 development'';
            (D) by adding at the end of paragraph

    (2) the 
 following:
 ``
        (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.''; and
        (E) in paragraph

    (3) --
            (i) by striking ``Except as provided in 
 paragraph

    (5) , the term'' and inserting ``The 
 term''; and
            (ii) by adding at the end the following: 
 ``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;
        (B) in paragraph

    (5) , by striking ``; and'' at the 
 end and inserting a period; and
            (C) by striking paragraph

    (6) ;

    (3) in subsection
            (d) (2) , by inserting at the end the 
 following: ``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.'';

    (4) in subsection

    (e)

    (2)
            (D) , by striking ``, including any 
 additional functions established by the Secretary through 
 regulation''; and

    (5) in subsection

    (f) , by striking ``September 30, 2021'' 
 and inserting ``September 30, 2028''.
 <all>