Short title

This Act may be cited as the

Accreditation Reform and Enhanced Accountability Act of 2026

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.

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)..

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).

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

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.

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.

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.

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

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.

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.

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.

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:

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.

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.

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);

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.

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.

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.

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.

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.