[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7892 Engrossed in House (EH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7892
_______________________________________________________________________
AN ACT
To amend the Higher Education Act of 1965 to require to the Secretary
of Education to use an identity fraud detection system to review each
FAFSA to determine whether the FAFSA presents a reasonable suspicion of
identity fraud.
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 ``No Aid for Ghost Students Act of
2026''.
SEC. 2. IDENTITY FRAUD DETECTION SYSTEM.
(a) Identity Fraud Detection System.--Section 483 of the Higher
Education Act of 1965 (20 U.S.C. 1090) is amended by adding at the end
the following:
``(e) Identity Fraud Detection System.--
``(1) In general.--In addition to, or in conjunction with,
other verification processes carried out under this title, the
Secretary shall--
``(A) use an identity fraud detection system to
screen and assess each application submitted under this
section on or after October 1, 2026, to determine
whether the application presents a reasonable suspicion
of identity fraud based on one or more indicators
associated with suspected fraud risk; and
``(B) carry out notifications in accordance with
paragraph (2).
``(2) Notification of reasonable suspicion of identity
fraud.--If the Secretary determines that an application
submitted under this section presents a reasonable suspicion of
identity fraud, the Secretary shall--
``(A) provide the applicant with notice--
``(i) of such determination;
``(ii) that the information described in
subparagraph (B) will be transmitted to each
institution of higher education designated by
the applicant in the application; and
``(iii) that the applicant is subject to
additional identity verification requirements
in accordance with section 487(a)(15)(B); and
``(B) transmit to each institution designated by
the applicant in the application, a notice--
``(i) that such application presents a
reasonable suspicion of identity fraud; and
``(ii) that the applicant is subject to
additional identity verification requirements
to be carried out by the institution in
accordance with section 487(a)(15)(B), before
the institution may disburse Federal financial
aid under this title to such applicant.
``(3) Congressional notices and report.--
``(A) Notices.--The Secretary shall submit to the
authorizing committees--
``(i) not later than November 1, 2026, a
written description of the identity fraud
detection system required under this
subsection; and
``(ii) not later than 30 days after
implementing any substantial change to such
system, a written description and rationale for
such change.
``(B) Annual evaluation and report.--Not later than
October 1, 2027, and annually thereafter, the Secretary
shall conduct an evaluation of the effectiveness of the
identity fraud detection system carried out under this
subsection, and submit to the authorizing committees a
report on the use and effectiveness of such system.
``(4) Rule of construction.--Nothing in this subsection
shall be construed to prohibit the Secretary from meeting the
requirements of paragraph (1), in whole or in part, through a
capability or system used by the Secretary on or before the
date of enactment of the No Aid for Ghost Students Act of
2026.''.
(b) Additional Verification Requirements.--
(1) Amendments.--Section 487(a)(15) of the Higher Education
Act of 1965 (20 U.S.C. 1094(a)(15)) is amended--
(A) by striking ``(15) The institution
acknowledges'' and inserting ``(15)(A) The institution
acknowledges''; and
(B) by adding at the end the following new
subparagraph:
``(B) Beginning on October 1, 2026, the institution will
not disburse Federal financial aid under this title to an
applicant with an application under section 483 that presents a
reasonable suspicion of identity fraud under section 483(e),
unless the institution, directly or through a contracted third-
party service provider and in accordance with procedures
established by the Secretary--
``(i) before the disbursement of such aid--
``(I) determines that a reasonable
suspicion of identity fraud is not
present by confirming the identity of
such applicant using--
``(aa) in-person identity
verification;
``(bb) live, synchronous
audiovisual identity
verification;
``(cc) identity
verification compliant with
National Institute of Standards
and Technology Identity
Assurance Level 2 (NIST IAL2),
or an equivalent successor;
``(dd) any additional
identity verification method
approved by the Secretary that
provides a level of identity
assurance that is equal to or
greater than the level of
assurance provided by an
identify verification method
described in items (aa) through
(cc); or
``(ee) a combination of two
or more of the verification
methods described in items (aa)
through (dd); and
``(II) notifies the Secretary that
the identity of the applicant has been
verified; and
``(ii) maintains a record of such identity
verification.''.
(2) Guidelines on institutional verification procedures.--
Not later than October 1, 2026, the Secretary of Education
shall establish guidelines with respect to identity
verification procedures to be carried out by institutions of
higher education under subparagraph (B) of section 487(a)(15)
of the Higher Education Act of 1965 (20 U.S.C. 1094(a)(15)), as
amended by paragraph (1).
SEC. 3. PROGRAM REVIEW PRIORITY CATEGORY.
Section 498A(a)(2) of the Higher Education Act of 1965 (20 U.S.C.
1099c-1(a)(2)) is amended--
(1) in subparagraph (E), by striking ``and'' at the end;
(2) by redesignating subparagraph (F) as subparagraph (G);
and
(3) by inserting after subparagraph (E) the following:
``(F) institutions that have demonstrated a pattern
of disbursing, on or after October 1, 2026, Federal
financial aid under this title for an award year to
students with an application under section 483 for such
award year that presented a reasonable suspicion of
identity fraud under section 483(e), except that the
Secretary shall exclude any institution that
demonstrates to the Secretary that the institution is
in compliance with the requirements of section
487(a)(15)(B); and''.
Passed the House of Representatives June 10, 2026.
Attest:
Clerk.
119th CONGRESS
2d Session
H. R. 7892
_______________________________________________________________________
AN ACT
To amend the Higher Education Act of 1965 to require to the Secretary
of Education to use an identity fraud detection system to review each
FAFSA to determine whether the FAFSA presents a reasonable suspicion of
identity fraud.