[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>