[Congressional Record Volume 171, Number 47 (Wednesday, March 12, 2025)]
[Senate]
[Pages S1706-S1716]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. PADILLA (for himself and Mr. Tillis):
S. 984. A bill to amend the Food Security Act of 1985 to establish an
exception to certain payment limitations in the case of person or legal
entity that derives income from agriculture, and for other purposes; to
the Committee on Agriculture, Nutrition, and Forestry.
Mr. PADILLA. Mr. President, I rise to introduce the bipartisan Fair
Access to Agriculture Disaster Programs Act. This legislation would
ensure all farmers can access critical U.S. Department of Agriculture
disaster relief programs.
Increasingly frequent and catastrophic floods, fires, freezes, and
other disasters are threatening the long-term sustainability of
agriculture across the country.
The impact has been particularly acute for California's agricultural
communities, who face year-round threats from drought, heat, floods,
and fires--even in January.
The farm bill authorizes safety net programs to help producers
recover, but outdated adjusted gross income, AGI, limits exclude many
specialty crop growers, despite facing the same extreme weather
challenges as other farmers.
As a result, producers from California to North Carolina are blocked
from vital disaster assistance.
The Fair Access to Agriculture Disaster Programs Act adopts
flexibility used in the Coronavirus Food Assistance Program to waive
the AGI limitation for producers that derive 75 percent of their AGI
from farming, ranching, or related farming practices.
What are referred to as specialty crops are just that--special.
Specialty crops, which include fruits and vegetables, tree nuts, dried
fruits, horticulture, and nursery crops that are cultivated for food
and medicine, require overall higher input costs and specialized
processes for planting, growing, and harvesting.
Did you know that it costs more than $30,000 to produce an acre of
strawberries? The cost of production for specialty crops is typically
thousands of dollars per acre.
As a result, both large and small producers of specialty crops end up
exceeding the AGI limitations put in place to means-test critical
disaster assistance.
That is why we need to pass the Fair Access to Agriculture Disaster
Programs Act to ensure farmers and ranchers can access agricultural
safety net programs in the wake of increasingly more frequent and
catastrophic disasters.
I would like to thank Senator Tillis for joining me to introduce this
bill, and I forward to working with my colleagues to pass the Fair
Access to Agriculture Disaster Programs Act as quickly as possible.
______
By Mr. DURBIN (for himself, Ms. Warren, and Mr. Merkley):
S. 994. A bill to provide for accountability in higher education; to
the Committee on Health, Education, Labor, and Pensions.
Mr. DURBIN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 994
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 ``Preventing Risky Operations
from Threatening the Education and Career Trajectories of
Students Act of 2025'' or the ``PROTECT Students Act of
2025''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
TITLE I--STUDENT AND TAXPAYER PROTECTIONS
Sec. 101. Gainful employment and financial value transparency.
Sec. 102. Borrower defense and substantial misrepresentations.
Sec. 103. Closed school discharge.
Sec. 104. Prohibition on institutions limiting student legal action.
Sec. 105. Incentive compensation.
TITLE II--ENSURING INTEGRITY AT INSTITUTIONS OF HIGHER EDUCATION AND
INSTITUTIONAL CONTRACTORS
Sec. 201. Updating Federal oversight of third-party servicers.
Sec. 202. Job placement rates.
Sec. 203. Allocation of tuition and fee revenue by title IV
institutions.
Sec. 204. Past performance.
Sec. 205. Recoupment.
TITLE III--IMPROVING OVERSIGHT
Sec. 301. Enforcement in the Office of Federal Student Aid.
Sec. 302. For-Profit Education Oversight Coordination Committee.
Sec. 303. Establishment and maintenance of complaint resolution and
tracking system.
Sec. 304. Reforms to eligibility and certification procedures.
Sec. 305. State oversight.
Sec. 306. Accrediting agency oversight.
Sec. 307. Mandatory spending for administrative costs of operating the
student aid programs.
TITLE IV--IMPROVING ACCESS TO STUDENT AND TAXPAYER INFORMATION
Sec. 401. Reporting and disclosures from institutions of higher
education.
Sec. 402. Transparency of oversight activities.
SEC. 3. REFERENCES.
Except as otherwise expressly provided in this Act,
wherever in this Act an amendment or repeal is expressed in
terms of an amendment to, or a repeal of, a section or other
provision, the reference shall be considered to be made to
that section or other provision of the Higher Education Act
of 1965 (20 U.S.C. 1001 et seq.).
TITLE I--STUDENT AND TAXPAYER PROTECTIONS
SEC. 101. GAINFUL EMPLOYMENT AND FINANCIAL VALUE
TRANSPARENCY.
(a) Defining Gainful Employment Programs.--
(1) Additional institutions.--Section 101(b) (20 U.S.C.
1001(b)) is amended in paragraph (1), by inserting ``,
including that meets the standards for debt-to-earnings and
earnings premium in section 498C,'' after ``gainful
employment in a recognized occupation''.
(2) Proprietary institution of higher education.--Section
102(b)(1)(A)(i) (20 U.S.C. 1002(b)(1)(A)(i)) is amended, by
inserting ``, including that meets the standards for debt-to-
earnings and earnings premium in section 498C'' after
``gainful employment in a recognized occupation''.
(3) Postsecondary vocational institution.--Section
102(c)(1)(A) (20 U.S.C. 1002(c)(1)(A)) is amended, by
inserting ``, including that meets the standards for debt-to-
earnings and earnings premium in section 498C'' after
``gainful employment in a recognized occupation''.
(4) Eligible program.--Section 481(b)(1)(A)(i) (20 U.S.C.
1088(b)(1)(A)(i)) is amended, by inserting ``, including that
meets the standards for debt-to-earnings and earnings premium
in section 498C'' after ``gainful employment in a recognized
profession''.
(b) Debt-to-earnings and Earnings Premium.--Subpart 3 of
part H of title IV (20 U.S.C. 1099c et seq.) is amended by
adding at the end the following:
``SEC. 498C. DEBT-TO-EARNINGS AND EARNINGS PREMIUM.
``(a) Definitions.--In this section:
``(1) Annual debt-to-earnings rate.--The term `annual debt-
to-earnings rate' means the rate that is calculated for a
cohort of students by taking the annual loan payment for such
cohort, as calculated by the Secretary, divided by the median
annual earnings for such cohort.
``(2) Annual loan payment.--The term `annual loan payment'
means, for a cohort of students, as defined by the Secretary,
who
[[Page S1707]]
completed an eligible program, their total annual payment on
loans borrowed to enroll in the institution that offered the
eligible program, measured not less than 2 and not more than
4 years after their completion.
``(3) Discretionary debt-to-earnings rate.--The term
`discretionary debt-to-earnings rate' means the rate that is
calculated for a cohort of students by taking the annual loan
payment for such cohort, as calculated by the Secretary,
divided by the discretionary earnings for such cohort.
``(4) Discretionary earnings.--The term `discretionary
earnings' means, for a cohort of students, as defined by the
Secretary, who completed an eligible program, the median
annual earnings minus the amount that is 150 percent of the
poverty level for an individual, as determined by the
Department of Health and Human Services.
``(5) Earnings premium.--The term `earnings premium' means
the amount by which the median annual earnings exceed the
median earnings for working adults with not more than a high
school diploma, as determined using data from the Bureau of
the Census--
``(A) in the State where the institution that provides the
eligible program is located; or
``(B) if fewer than half of the students in the eligible
program are from the State where the institution that
provides the eligible program is located, or if the
institution is a foreign institution, nationally.
``(6) Median annual earnings.--The term `median annual
earnings' means, for a cohort of students, as defined by the
Secretary, who completed an eligible program, the midpoint of
their annual earnings measured not less than 2 and not more
than 4 years after their completion.
``(b) Standards.--
``(1) In general.--An eligible program does not meet the
standards for debt-to-earnings or earnings premium if it
fails the debt-to-earnings rates or fails the earnings
premium, as described in paragraph (2), in 2 out of any 3
consecutive years.
``(2) Failing.--An eligible program--
``(A) fails the debt-to-earnings rates if it has--
``(i) a discretionary debt-to-earnings rate equal to or
greater than 20 percent; and
``(ii) an annual debt-to-earnings rate equal to or greater
than 8 percent; and
``(B) fails the earnings premium if it has an earnings
premium of zero or a negative amount.
``(c) Process.--
``(1) Data match.--In order to ensure compliance with
paragraph (2), the Commissioner of the Internal Revenue
Service, the Commissioner of the Social Security
Administration, and the head of any other Federal agency that
administers the database of individual-level earnings data
shall, in coordination with the Secretary, timely ensure
secure, annual data matches of earnings data with Department
of Education data to produce the median annual earnings of
each eligible program.
``(2) Requirements of the secretary.--The Secretary shall--
``(A) on an annual calendar year basis--
``(i) for each eligible program--
``(I) calculate for each award year the discretionary debt-
to-earnings rate, the annual debt-to-earnings rate, and the
earnings premium for the program; and
``(II) publish the discretionary debt-to-earnings rate, the
annual debt-to-earnings rate, and the earnings premium for
the eligible program for each award year on a website
established and maintained by the Secretary;
``(ii) for each eligible program that is a program of
training to prepare students for gainful employment in a
recognized occupation or a graduate or professional degree
program offered by an institution of higher education
described in section 101(a), issue a notice of determination
not later than 45 days after completing the data match
described in paragraph (1), informing the institution that
provides the program--
``(I) of the final discretionary debt-to-earnings rate, the
annual debt-to-earnings rate, and the earnings premium for
the program, which may not be appealed by the institution
unless the institution believes that the Secretary erred in
the calculation of any such measure;
``(II) of the final determination regarding whether the
program fails the debt-to-earnings rates or fails the
earnings premium, as described in subsection (b)(2);
``(III) whether the program does not meet the standards for
debt-to-earnings or earnings premium as described in
subsection (b)(1) or could not meet such standards in the
next year if it fails the debt-to-earnings rates or fails the
earnings premium, as described in subsection (b)(2), in such
next year; and
``(IV) whether the institution is required to provide
warnings to enrolled students and prospective students of the
program's failure, or risk of failure, to meet the standards,
as determined under subclause (III); and
``(iii) for each eligible program that is a program of
training to prepare students for gainful employment in a
recognized occupation that does not meet the standards for
debt-to-earnings and earnings premium as described in
subsection (b)(1), enforce the consequences under subsection
(d); and
``(B) develop processes to verify, on an annual calendar
year basis--
``(i) that each eligible program that is a program of
training to prepare students for gainful employment in a
recognized occupation or a graduate or professional degree
program offered by an institution of higher education
described in section 101(a), provides the warning described
in subparagraph (A)(ii)(IV), if applicable; and
``(ii) that each eligible program that is a program of
training to prepare students for gainful employment in a
recognized occupation that does not meet the standards for
debt-to-earnings or earnings premium as described in
subsection (b)(1), does not receive funds as described in
subsection (d).
``(d) Consequences of Not Meeting Standards.--
``(1) No disbursement of funds for enrollment in ineligible
programs.--An institution may not disburse program funds
under this title to students enrolled in a program of
training to prepare students for gainful employment in a
recognized occupation that does not meet the standards for
debt-to-earnings and earnings premium as described in this
section.
``(2) Time period to reestablish eligibility.--An
institution may not seek to reestablish the eligibility of a
program of training to prepare students for gainful
employment in a recognized occupation that does not meet the
standards for debt-to-earnings and earnings premium as
described in this section or establish the eligibility of a
program of training to prepare students for gainful
employment in a recognized occupation that is substantially
similar to the program that did not meet such standards until
the date that is 3 years after the date of the notice of
determination issued under subsection (c)(2)(A)(ii) that the
program of training to prepare students for gainful
employment in a recognized occupation does not meet the
standards.
``(e) Regulations.--The Secretary shall issue regulations
to carry out this section not later than 1 year after the
date of enactment of the Preventing Risky Operations from
Threatening the Education and Career Trajectories of Students
Act of 2025, except that such regulations shall not be
subject to the requirements of sections 482 or 492.''.
SEC. 102. BORROWER DEFENSE AND SUBSTANTIAL
MISREPRESENTATIONS.
(a) Borrower Defense to Repayment.--Section 455(h) (20
U.S.C. 1087e(h)) is amended to read as follows:
``(h) Borrower Defenses.--
``(1) In general.--Notwithstanding any other provision of
State or Federal law, the Secretary shall discharge a covered
loan in repayment made to a borrower with a defense to
repayment of the loan, as described in this section.
``(2) Definitions.--In this subsection:
``(A) Repayment.--The term `repayment' means the period
after any in-school deferment or grace period and before a
loan is paid in full other than by a consolidation loan made
under this title, including, without limitation, a loan in
default.
``(B) Covered loan.--The term `covered loan' means a loan
made, insured, or guaranteed under this title that has an
outstanding balance comprised in whole or in part by
repayment obligations incurred to cover the cost of
attendance at an institution of higher education.
``(3) Basis for defense to repayment.--
``(A) In general.--For purposes of discharge under this
section, a borrower defense to repayment is established when
the Secretary concludes by a preponderance of the evidence
that a qualifying act, omission, or event occurred, and the
student whose cost of attendance was paid in whole or in part
by the proceeds of a covered loan suffered detriment in the
nature and degree warranting a borrower defense discharge.
``(B) Qualifying acts, omissions, or events.--A qualifying
act, omission, or event includes without limitation any of
the following:
``(i) The institution, one of its representatives, or a
third-party servicer of the institution made a substantial
misrepresentation (as described in section 481(g)), directly
or indirectly, to the borrower in connection with the
borrower's decision to attend, or to continue attending, the
institution or the borrower's decision to take out a covered
loan.
``(ii) The institution failed to perform its obligations
under the terms of a contract with the student and such
obligation was undertaken as consideration or in exchange for
the borrower's decision to attend, or to continue attending,
the institution, for the borrower's decision to take out a
covered loan, or for funds disbursed in connection with a
covered loan.
``(iii) The institution engaged in aggressive and deceptive
recruitment conduct or tactics in connection with the
borrower's decision to attend, or to continue attending, the
institution or the borrower's decision to take out a covered
loan. Aggressive and deceptive recruitment tactics or conduct
include actions by the institution, any of its
representatives, or any entity, organization, or person with
whom the institution has an agreement to provide educational
programs, marketing, recruitment, or lead generation services
that pressure a student to make enrollment or loan-related
decisions, take unreasonable advantage of a student's lack of
knowledge, discourage a student or prospective student from
consulting an advisor prior to making enrollment or loan-
related decisions, use threatening or abusive language, or
repeatedly engage in unsolicited contact.
``(iv) The borrower, whether as an individual or as a
member of a class, or a governmental agency has obtained
against the institution a favorable judgment based on
[[Page S1708]]
State or Federal law in a court or administrative tribunal of
competent jurisdiction based on the institution's act or
omission relating to the making of a covered loan, or the
provision of educational services for which the loan was
provided, notwithstanding any possible appeal.
``(v) The Secretary sanctioned or otherwise took adverse
action against the institution at which the borrower
enrolled, based on the institution's acts or omissions that
could give rise to a borrower defense under clause (i), (ii),
or (iii).
``(vi) The institution committed any act or omission that
relates to the making of the covered loan for enrollment at
the institution or the provision of educational services for
which the covered loan was provided that would give rise to a
cause of action against the institution under applicable
State law without regard to any statute of limitations.
``(C) Determination whether detriment warrants discharge.--
In determining whether the nature and degree of detriment
warrants a borrower defense discharge, the Secretary shall
consider the totality of the circumstances, including the
nature and degree of detriment shown by previous recipients
of borrower defense discharge, and drawing all inferences and
presumptions warranted by the evidence under the
circumstances.
``(4) Effect of discharge.--To effectuate a borrower
defense discharge of a covered loan in repayment, the
Secretary shall carry out the following:
``(A) Discharge all amounts owed to the Secretary,
including interest and fees, on the covered loan, subject to
the limitation in paragraph (5). In the case of a covered
loan that is a Federal Direct Consolidation Loan or a Federal
Consolidation Loan under section 428C comprised only in part
of repayment obligations incurred to cover the cost of
attendance at the institution whose acts or omissions are the
basis of the discharge, the Secretary may discharge less than
the total amount of the covered loan when loan account
records clearly establish the portion of the covered loan not
subject to the defense to repayment.
``(B) Reimburse all payments previously made to the
Secretary on the covered loan, subject to the limitation in
paragraph (5).
``(C) For borrowers in default, determine that the borrower
is not in default on the covered loan and therefore not
ineligible to receive assistance under this title on the
basis of default on the covered loan.
``(D) Update or delete adverse reports the Secretary
previously made to consumer reporting agencies regarding the
covered loan.
``(E) Remove the discharged covered loan and any grant made
under this title related to the student's attendance at the
institution whose acts are omissions are the basis of the
discharge from the borrower's loan history for purposes of
calculating eligibility for further grants and loans under
this title.
``(5) Limitation on discharge and reimbursement.--The
Secretary may reduce the amount of discharge and
reimbursement provided for in paragraph (4) if the borrower
received a money payment from the institution or related
entity in compensation for the acts or omissions forming the
basis of the borrower defense. In deciding whether a
reduction is warranted, and in what amount, the Secretary
shall consider the extent to which the payment received by
the borrower compensated for non-economic damages, out-of-
pocket expenses, or payments previously made directly to the
institution, and whether the borrower has non-Federal student
loans as a result of attending the institution. The Secretary
may not reduce the amount of discharge and reimbursement
provided for in a covered loan in paragraph (4) because the
borrower received funds from a State tuition recovery fund.
``(6) Finality.--A borrower defense discharge is final upon
the Secretary's notification to the borrower. The Secretary
may not thereafter revoke or reduce the amount of discharge
or reimbursement, absent a finding of fraud on the part of
the borrower.
``(7) Group process.--Where substantial misrepresentations
are widespread, the Secretary shall seek to assess the
eligibility of all potentially affected borrowers as a group
or in multiple groups to expedite the process. If such
discharges are approved, the Secretary shall discharge the
covered loans of all eligible borrowers in the group, in
accordance with the processes in this section and without
requiring application materials, to the extent practicable.
``(8) Regulations.--The Secretary may promulgate
regulations or otherwise prescribe procedures in relation to
borrower defense discharge, consistent with the provisions of
this section. Nothing in this section modifies or displaces
existing powers, authorities, and obligations of the
Secretary, including obligations imposed under chapter 5 of
title 5, United States Code (commonly known as the
`Administrative Procedures Act').''.
(b) Substantial Misrepresentation.--Section 481 (20 U.S.C.
1088) is amended by adding at the end the following:
``(g) Substantial Misrepresentation.--In this title, the
term `substantial misrepresentation', when used with respect
to an institution of higher education, includes--
``(1) any statement about the nature of the institution's
educational program, its financial charges, or the
employability or earnings of its graduates that is false,
erroneous, or has the likelihood or tendency to mislead under
the circumstances, on which the person to whom it was made
could reasonably be expected to rely, or has reasonably
relied, to that person's detriment; and
``(2) any omission of fact, such as the concealment,
suppression, or absence of material information about the
nature of the institution's educational program, its
financial charges, the employability or earnings of its
graduates, the availability of enrollment openings in the
student's desired program, the factors that would prevent an
applicant from meeting the legal or other requirements to be
employed, licensed, or certified in the field for which the
training is provided which a reasonable person would have
considered in making a decision to attend, or to continue
attending, the institution or to take out a covered loan.''.
SEC. 103. CLOSED SCHOOL DISCHARGE.
Section 437(c)(1) (20 U.S.C. 1087(c)(1)) is amended to read
as follows:
``(1) In general.--
``(A) In general.--If a borrower who received, on or after
January 1, 1986, a loan made, insured, or guaranteed under
this part and the student borrower, or the student on whose
behalf a parent borrowed, is unable to complete the program
in which such student is enrolled due to the closure of the
institution or if such student's eligibility to borrow under
this part was falsely certified by the eligible institution
or was falsely certified as a result of a crime of identity
theft, or if the institution failed to make a refund of loan
proceeds which the institution owed to such student's lender,
then the Secretary shall discharge the borrower's liability
on the loan (including interest and collection fees) by
repaying the amount owed on the loan.
``(B) Additional discharge.--
``(i) In general.--In addition to the authorization of
discharge under subparagraph (A), the Secretary shall
discharge a borrower's (including an endorser's) liability on
a Federal Direct Loan made under part D if--
``(I) the institution at which the borrower who took the
loan (or on whose behalf it was taken or endorsed) was
enrolled, ceased to provide educational instruction as a
whole, or ceased to provide instruction in the programs in
which more than 50 percent of the students were enrolled; or
``(II) the borrower who took the loan (or on whose behalf
it was taken or endorsed) was enrolled in an institution at
any time within the period not earlier than 180 days before
the date of the closure of the institution.
``(ii) Extension of 180 days.--The Secretary may extend the
180 day period described in clause (i)(II) in cases where
exceptional circumstances are demonstrated, including if--
``(I) the institution was placed on probation or order to
show cause or approval was withdrawn or terminated by an
accrediting agency or association or an institution's
institutional accreditor, or a State authorizing or licensing
authority;
``(II) the institution was placed on Heightened Cash
Monitoring status by the Department or was placed on
Provisional Program Participation Approval status, or the
institution's participation in a program under this title was
terminated by the Department;
``(III) the institution was found to have violated Federal
or State law related to enrolling or providing education
services to students by a Federal or State Government agency,
or is the subject of a Federal or State court judgment that
the institution violated laws related to enrolling or
providing education services to students;
``(IV) the teach-out plan (as required under section
487(f)) of the borrower's educational program exceeds the 180
day period described in clause (i)(II);
``(V) the institution responsible for the teach-out of the
borrower's educational program fails to perform the material
terms of the teach-out plan (as required under section
487(f)), such that the borrower does not have a reasonable
opportunity to complete the borrower's program of study; and
``(VI) the institution permanently closed all or most of
its in-person locations while maintaining online programs or
permanently closed many programs.
``(C) No application requirement.--A borrower who took a
loan (or on whose behalf it was taken or endorsed) that is
eligible for discharge under this paragraph due to
institutional closure is entitled to discharge without an
application or statement from the borrower 1 year after the
institution's closure date if the student did not complete
the program at the institution.
``(D) Pursing claims.--After discharging liability on a
loan under this paragraph, the Secretary shall pursue any
claim available to a borrower against the institution and its
affiliates and principals or settle the loan obligation
pursuant to the financial responsibility authority under
subpart 3 of part H.''.
SEC. 104. PROHIBITION ON INSTITUTIONS LIMITING STUDENT LEGAL
ACTION.
(a) Enforcement of Arbitration Agreements.--
(1) In general.--Chapter 1 of title 9, United States Code,
(relating to the enforcement of arbitration agreements) shall
not apply to an enrollment agreement made between a student
and an institution of higher education.
(2) Definition.--In this section, the term ``institution of
higher education'' has the meaning given such term in section
102 of the Higher Education Act of 1965 (20 U.S.C. 1002).
(b) Prohibition on Limitations on Ability of Students to
Pursue Claims Against
[[Page S1709]]
Certain Institutions of Higher Education.--Section 487(a) (20
U.S.C. 1094(a)) is amended by adding at the end the
following:
``(30) The institution--
``(A) will not require any student to agree to, and will
not enforce, any limitation or restriction (including a
limitation or restriction on any available choice of
applicable law, a jury trial, or venue) on the ability of a
student to pursue a claim, individually or with others,
against an institution in court; and
``(B) will provide written notification to students
enrolled at the institution that any limitation or
restriction on the ability of a student to pursue a claim,
individually or with others, against an institution in court
contained in any enrollment or other agreement with a student
will not be enforced.''.
(c) Private Right of Action.--
(1) In general.--
(A) Private right of action.--A violation described in
subparagraph (B) shall be subject to a private right of
action enforceable by a student or former student of an
institution of higher education, on behalf of such individual
or such individual and a class, in an appropriate district
court of the United States or any other court of competent
jurisdiction that also has jurisdiction over the defendant.
The student or former student may seek any relief provided
under section 455(h) for such violation, or any remedies
otherwise available to the individual under law and equity.
(B) Violations.--A violation described in this subparagraph
is any of the following:
(i) A substantial misrepresentation, including a
substantial omission of fact.
(ii) A violation of section 487(a)(20) of the Higher
Education Act of 1965 (20 U.S.C. 1094(a)(20)).
(iii) A violation of the default rate regulations
promulgated by the Secretary under section 435(m)(3) of the
Higher Education Act of 1965 (20 U.S.C. 1085(m)(3)).
(iv) A violation of the program integrity regulations
promulgated by the Secretary under the Higher Education Act
of 1965 (20 U.S.C. 1001 et seq.), including regulations
promulgated to carry out section 102, section 455, and part H
of such Act.
(2) Amount of damages.--
(A) In general.--Any institution of higher education, third
party servicer that contracts with such institution, or third
party contractor that commits a substantial misrepresentation
may be held liable to a student or former student of that
institution in an amount equal to the sum of--
(i) any actual damage sustained by such individual as a
result of each substantial misrepresentation;
(ii) any additional damages as the court may allow; and
(iii) in the case of any successful action to enforce the
foregoing liability, the costs of the action, together with a
reasonable attorney's fee as determined by the court.
(B) Ability to assess punitive damages.--
(i) In general.--On a finding by the court that an
institution of higher education, third party servicer that
contracts with such institution, or third party contractor
has committed a violation described in paragraph (1)(B) with
actual or constructive knowledge or reckless disregard for
such violation, the court may assess punitive damages not to
exceed threefold the sum of actual damages sustained by the
plaintiff or class, including court costs and a reasonable
attorney's fee.
(ii) Factors considered by the court.--In determining the
amount of liability in any action under clause (i), the court
shall consider, among other relevant factors--
(I) in any individual action under this subsection, the
frequency and persistence of noncompliance by the institution
of higher education, third party servicer that contracts with
such institution, or third party contractor and the nature of
such noncompliance; or
(II) in any class action under this subsection, in addition
to the factors listed in subclause (I), the financial
resources of the institution of higher education, third party
servicer that contracts with such institution, or third party
contractor and the number of persons adversely affected.
(3) Jurisdiction.--An action to enforce any liability
created by this subsection may be brought in any appropriate
United States district court without regard to the amount in
controversy, or in any other court of competent jurisdiction.
(d) Prohibition on Transcript Withholding.--Section 487(a)
(20 U.S.C. 1094(a)), as amended by subsection (b), is further
amended by adding at the end the following:
``(31) The institution--
``(A) will not withhold official transcripts related to a
balance owed by the student to the institution; and
``(B) will provide an official transcript to a student upon
request by the student.''.
SEC. 105. INCENTIVE COMPENSATION.
(a) Incentive Compensation.--
(1) Revocation.--Example 2-B of Question 2 of the
Department of Education Dear Colleague Letter GEN-11-05
(March 17, 2011) is revoked.
(2) Prohibition.--The Department of Education may not issue
a regulation or subregulatory guidance that would establish
an exception to the prohibition provided in section
487(a)(20) of the Higher Education Act of 1965 (20 U.S.C.
1094(a)(20)).
(b) Institutional Compliance With the Incentive
Compensation Ban.--Section 487(a)(20) (20 U.S.C. 1094(a)(20))
is amended--
(1) by striking ``The institution'' and inserting ``(A) The
institution''; and
(2) by adding at the end the following:
``(B) Not later than 1 year after the date of enactment of
the Preventing Risky Operations from Threatening the
Education and Career Trajectories of Students Act of 2025,
the institution shall attest to the Secretary that the
institution is in compliance with subparagraph (A)
notwithstanding the guidance provided in Department of
Education Example 2-B of Question 2 of Dear Colleague Letter
GEN-11-05 (March 17, 2011), in such form as required by the
Secretary. If the institution is not in compliance as of the
date of enactment of the Preventing Risky Operations from
Threatening the Education and Career Trajectories of Students
Act of 2025, the Secretary shall revoke the institution's
program participation agreement under this section.
``(C) Following the attestation required under subparagraph
(B), the institution shall annually provide verification from
an independent auditor that the institution is in compliance
with subparagraph (A).''.
TITLE II--ENSURING INTEGRITY AT INSTITUTIONS OF HIGHER EDUCATION AND
INSTITUTIONAL CONTRACTORS
SEC. 201. UPDATING FEDERAL OVERSIGHT OF THIRD-PARTY
SERVICERS.
Section 481(c)(1) (20 U.S.C. 1088(c)(1)) is amended by
inserting ``, including related to the delivery of funds
under this title, recruitment or retention of students,
compliance with cohort default rate (as defined in section
435(m)) requirements, the development and delivery of
instructional content, and other applicable activities as
described by the Secretary'' after ``title''.
SEC. 202. JOB PLACEMENT RATES.
(a) Definition.--Section 481 (20 U.S.C. 1088), as amended
by section 102(b), is further amended by adding at the end
the following:
``(h) Job Placement Rates.--The Secretary shall establish a
single definition of `job placement rate' for purposes of
this Act that ensures consistent determinations across
institutions and accrediting agencies regarding when students
are placed in a job, to improve accuracy and minimize the
opportunity for misleading or deceptive information.''.
(b) Program Participation Agreement.--Section 487(a)(8) (20
U.S.C. 1094(a)(8)) is amended to read as follows:
``(8) In the case of an institution that advertises or
discloses job placement rates to prospective students or that
is required to provide regular reporting of job placement
rates to an accrediting agency, State authorizer, or other
regulator, the institution will utilize the definition
provided under section 481(h), and shall make available to
prospective students, at or before the time of application--
``(A) the most recent available data concerning employment
statistics, graduation statistics, the methodology used by
the institution to calculate the job placement rate, and any
other information necessary to substantiate the truthfulness
of the advertisements or disclosures, and
``(B) relevant State licensing requirements of the State in
which such institution is located for any job for which the
course of instruction is designed to prepare such prospective
students.''.
(c) Accrediting Agency Recognition.--Section 496(a)(5)(A)
(20 U.S.C. 1099b(a)(5)(A)) is amended by inserting ``, as
defined pursuant to section 481(h)'' before the semicolon.
(d) Nonapplicability of Rulemaking Requirements.--The
amendments made under this section shall not be subject to
the requirements provided under section 492 (20 U.S.C.
1098a).
SEC. 203. ALLOCATION OF TUITION AND FEE REVENUE BY TITLE IV
INSTITUTIONS.
Section 498(c) (20 U.S.C. 1099c(c)) is amended by inserting
at the end the following:
``(7) Requirement to Spend Revenue.--
``(A) In general.--
``(i) Beginning in academic year 2026-2027 and in each
academic year thereafter through 2031-2032, each institution
of higher education, in order to be eligible to participate
in programs under this title, shall spend an amount equal to
not less than 30 percent of their tuition and fee revenue
(net of allowances and discounts) on instruction.
``(ii) Beginning in academic year 2027-2028 and in each
academic year thereafter through 2030-2031, the Secretary
shall assess the data described in subparagraph (B) and issue
a report that identifies the following:
``(I) The total amount of spending on instruction for each
institution.
``(II) The total amount of spending on student services for
each institution, excluding advertising, recruiting,
marketing, compensation of executives or officers, lobbying,
and other pre-enrollment expenses, consistent with section
132(l).
``(III) Tuition and fee revenue (net of allowances and
discounts) for each institution.
``(IV) The median increase in total spending on student
services and instruction combined relative to spending on
instruction relative to tuition and fee revenue (net of
allowances and discounts).
``(V) Other relevant information the Secretary determines
appropriate to include.
``(iii) In academic year 2031-2032, the Secretary shall
issue a regulation that establishes a minimum threshold
percentage for institutional spending on instruction and
student services combined that shall be--
``(I) not less than 30 percent; and
``(II) consistent with the median increase in total
spending, as identified under clause (ii)(IV) averaged across
academic years 2028-2029, 2029-2030, and 2030-2031.
[[Page S1710]]
``(iv) Beginning in academic year 2031-2032 and in each
academic year thereafter, each institution of higher
education, in order to be eligible to participate in programs
under this title, shall spend an amount equal to not less
than the threshold percentage established under clause (iii)
of their tuition and fee revenue (net of allowances and
discounts) on instruction and student services combined.
``(B) Reporting from institutions.--The Secretary shall use
data from reports received and definitions established under
section 132(l) to carry out this paragraph.
``(C) Warnings.--The Secretary shall--
``(i) establish through regulation appropriate thresholds
for an institution of higher education that meets the
spending requirements under clauses (i) and (iv) of
subparagraph (A), but which is at risk of missing such
thresholds; and
``(ii) require each institution of higher education that is
at risk of missing such thresholds to provide warnings to
prospective students and enrolled students of the institution
regarding the low instructional spending.
``(D) Regulations.--The Secretary shall issue such
regulations as determined necessary by the Secretary to
ensure compliance with the requirements of this paragraph,
taking into consideration cost and convenience.''.
SEC. 204. PAST PERFORMANCE.
Section 487(a)(16) (20 U.S.C. 1094(a)(16)) is amended by
inserting at the end the following:
``(C) The institution will not knowingly employ an
individual who was an owner, director, officer, or employee
who exercised substantial control over an institution that
owes a liability.
``(D) The institution will not knowingly--
``(i) employ an individual who was--
``(I) an owner, director, officer, or employee of an
institution that has--
``(aa) been found to have engaged in fraud, misuse of
funds, or any material violation of law; or
``(bb) had its participation in programs under this title
terminated, its certification revoked, or its application for
certification or recertification for participation in such
programs denied; or
``(II) a 10 percent-or-higher equity owner, director,
officer, principal, or executive of, or contractor affiliated
with, another institution in any year in which the other
institution incurred a loss of Federal funds, as determined
by the Secretary, in excess of 5 percent of the other
institution's annual funds under this title; or
``(ii) contract with any institution, third-party servicer,
individual, agency, or organization that has, or whose
owners, officers, or employees have--
``(I) been found to have engaged in fraud, misuse of funds,
or any material violation of law;
``(II) had its participation in programs under this title
terminated, its certification revoked, or its application for
certification or recertification for participation in such
programs denied; or
``(III) been a 10 percent-or-higher equity owner, director,
officer, principal, executive of, or contractor affiliated
with, another institution in any year in which the other
institution incurred a loss of Federal funds, as determined
by the Secretary, in excess of 5 percent of the other
institution's annual funds under this title.''.
SEC. 205. RECOUPMENT.
(a) Clarifying the Authority to Recoup Liabilities From
Title IV Institutions.--Section 487(c)(1) (20 U.S.C.
1094(c)(1)) is amended by striking subparagraph (F) and
inserting the following:
``(F) the limitation, suspension, or termination of the
participation in any program under this title of an eligible
institution, the recoupment of liabilities established
pursuant to section 493E, or the imposition of a civil
penalty under paragraph (3)(B) whenever the Secretary has
determined, after reasonable notice and opportunity for
hearing, that such institution has violated or failed to
carry out any provision of this title, any regulation
prescribed under this title, or any applicable special
arrangement, agreement, or limitation, except that no period
of suspension under this section shall exceed 60 days unless
the institution and the Secretary agree to an extension or
unless limitation or termination proceedings are initiated by
the Secretary within that period of time.''.
(b) Recoupment of Liabilities.--Part G of title IV (20
U.S.C. 1088 et seq.) is amended by adding at the end the
following:
``SEC. 493E. RECOUPMENT.
``(a) In General.--The Secretary shall assess liabilities
and seek to recoup funds provided under this title from an
institution of higher education as a result of student loan
discharges, findings from program reviews or compliance
audits, or due to other forms of misconduct or noncompliance.
``(b) Waiver Authority.--The Secretary may waive some or
all of the liabilities described in subsection (a) based on
the individual circumstances of the institution.''.
(c) Owner Signatures.--Section 498(b) of the Higher
Education Act of 1965 (20 U.S.C. 1099c(b)) is amended--
(1) in paragraph (4), by striking ``and'' after the
semicolon;
(2) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(6) requires both an authorized representative of the
institution and, if applicable, an authorized representative
of any entity with ownership and substantial control over the
institution to sign the program participation agreement, as
described under section 487, for the institution, which shall
ensure that the institution and its owner, if applicable,
agree to repay any liabilities assessed against the
institution by the Secretary.''.
TITLE III--IMPROVING OVERSIGHT
SEC. 301. ENFORCEMENT IN THE OFFICE OF FEDERAL STUDENT AID.
(a) Enforcement Unit Established in the Office of Federal
Student Aid.--Section 141 (20 U.S.C. 1018) is amended--
(1) by redesignating subsections (g) through (i) as
subsections (h) through (j), respectively; and
(2) by inserting after subsection (f) the following:
``(g) Enforcement Unit.--
``(1) In general.--The Chief Operating Officer, in
consultation with the Secretary, shall establish an
enforcement unit within the PBO (referred to in this section
as the `enforcement unit').
``(2) Appointment.--
``(A) Chief enforcement officer.--The Chief Operating
Officer, in consultation with the Secretary, shall appoint a
Chief Enforcement Officer as a senior manager, in accordance
with subsection (e), to perform the functions described in
this subsection. The Chief Enforcement Officer shall report
solely and directly to the Chief Operating Officer.
``(B) Bonus.--Notwithstanding subsection (e), the Chief
Enforcement Officer may receive a bonus, separately
determined from the methodology which applies to the
calculation of bonuses for other senior managers, based upon
the Chief Operating Officer's evaluation of the Chief
Enforcement Officer's performance in relation to the goals
set forth in a performance agreement related to the specific
duties of the enforcement unit.
``(3) Duties.--The enforcement unit shall--
``(A) receive, process, and analyze allegations and
complaints regarding the potential violation of Federal or
State law (including civil and criminal law) or other unfair,
deceptive, or abusive acts or practices, by institutions of
higher education, third-party servicers that contract with
such institutions, and loan servicers;
``(B) investigate and coordinate investigations of
potential or actual misconduct of institutions of higher
education, third-party servicers that contract with such
institutions, and loan servicers, including engaging in a
regular program of secret shopping at online and campus-based
institutions of higher education;
``(C) develop and implement a written policy for the
enforcement of the ban on prohibited incentive compensation
not less than annually, which may include automatic triggers
for inquiries by the Department or regular `secret shopper'
or audit-based investigations, and shall update such policy
as needed; and
``(D) enforce compliance with laws governing Federal
student financial assistance programs under title IV,
including through the use of an emergency action in
accordance to section 487(c)(1)(I), the limitation,
suspension, or termination of the participation of an
eligible institution in a program under title IV, or the
imposition of a civil penalty in accordance with section
487(c)(3)(B).
``(4) Coordination and staffing.--The enforcement unit
shall--
``(A) coordinate with relevant Federal and State agencies
and oversight bodies, including the For-Profit Education
Oversight Coordination Committee established under section
124; and
``(B) hire staff, (including by appointing not more than 10
individuals in positions of excepted service, as described in
subsection (h)(3)) with such expertise as is necessary to
conduct investigations, respond to allegations and
complaints, and enforce compliance with laws governing
Federal student financial assistance programs under title IV.
``(5) Divisions.--
``(A) In general.--The enforcement unit shall have separate
divisions with the following focus areas:
``(i) An investigations division to investigate potential
or actual misconduct at institutions of higher education,
third-party servicers that contract with such institutions,
and loan servicers.
``(ii) A division focused on evaluating the claims of
borrowers who assert a defense to repayment of Federal
student loans, or groups of borrowers who qualify to assert
such a defense to repayment, under section 455(h).
``(iii) A division focused on oversight of the Jeanne Clery
Disclosure of Campus Security Policy and Campus Crime
Statistics Act, the reporting of crime and fire statistics by
institutions of higher education, and the oversight and
enforcement of section 120 (relating to drug and alcohol
abuse prevention).
``(iv) A division to administer the Secretary's authority
to fine, limit, suspend, terminate, or take action against
institutions of higher education, and third-party servicers
that contract with such institutions, participating in the
Federal student financial assistance programs under title IV.
``(v) A division that administers a program of compliance
monitoring and oversight of institutions of higher education,
and third-party servicers that contract with such
institutions, including systems and procedures to support the
eligibility, certification, and
[[Page S1711]]
oversight of program participants, for all institutions of
higher education participating in the Federal student
financial assistance programs under title IV.
``(vi) Any other division that the Chief Enforcement
Officer, in coordination with the Chief Operating Officer and
the Secretary, determines is necessary.
``(B) Reporting.--The staff of each division described in
subparagraph (A) shall report to the Chief Enforcement
Officer.
``(6) Actions recommended.--The Chief Enforcement Officer
may recommend, as appropriate to the particular circumstance,
that the Chief Operating Officer--
``(A) terminate, suspend, or limit an institution of higher
education or a third-party servicer that contracts with such
institution from participation in 1 or more programs under
title IV (in accordance with section 487), or provisionally
certify such participation (in accordance with section
498(h));
``(B) impose a civil penalty in accordance with section
487(c)(3)(B);
``(C) for a student loan servicer, obtain all relief,
including any penalties and suspension or termination of the
agreement, provided in the loan servicer agreement to the
contract of the servicer; or
``(D) make a recommendation to the Secretary about whether
to approve or deny the claims of borrowers, including groups
of borrowers, who assert a defense to repayment in accordance
with section 455(h).''.
(b) Extend Subpoena Power To Assist With Investigations.--
Section 490A(a) (20 U.S.C. 1097a(a)) is amended to read as
follows:
``(a) Authority.--To assist the Secretary in the conduct of
investigations of possible violations of the provisions of
this title, the Secretary is authorized to--
``(1) require by subpoena the production of information,
documents, reports, answers, records, accounts, papers, and
other documentary evidence pertaining to participation in any
program under this title, the production of which may be
required from any place in a State; and
``(2) require by subpoena oral testimony by any person,
including any legal entity, concerning information pertaining
to participation in any title IV program, the appearance for
which may be required at any place in a State.''.
(c) Program Reviews.--Section 498A of the Higher Education
Act of 1965 (20 U.S.C. 1099c-1) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by striking
``and financial responsibility'' and inserting ``, financial
responsibility, and other eligibility-related''; and
(B) in paragraph (2)--
(i) by redesignating subparagraphs (A) through (F) as
subparagraphs (B) through (G), respectively;
(ii) by inserting before subparagraph (B), as so
redesignated, the following:
``(A) identified as `high-risk' institutions based on a
risk-review process developed by the Department that shall
include risk factors, including--
``(i) significant changes in enrollment;
``(ii) high volumes of student complaints or borrower
defense claims;
``(iii) indicators of issues related to financial
capability;
``(iv) low completion rates;
``(v) indications of misleading or deceptive practices,
aggressive recruiting, or substantial misrepresentation;
``(vi) significant completion gaps between students of
different demographic groups; or
``(vii) other indicators of risk to students or
taxpayers;''; and
(iii) in subparagraph (G), as so redesignated, by striking
``or financial responsibility'' and inserting ``, financial
responsibility, or other eligibility-related'';
(2) in subsection (d), by striking ``criminal investigative
training'' and inserting ``criminal and civil investigative
training (including training in identifying
misrepresentations in marketing and recruitment materials)'';
(3) by redesignating subsection (e) as subsection (f); and
(4) by inserting after subsection (d) the following:
``(e) Program Reviews.--Program reviews shall, at minimum,
include a review of all--
``(1) recruiting and marketing materials, including scripts
and training materials provided to institution and third-
party servicer staff involved in recruiting, admissions, or
financial aid;
``(2) consumer complaints held by the institution and
consumer agencies, borrower defense claims, the institution's
response to such complaints or claims, and any related
investigative materials;
``(3) actions against the institution by State or Federal
regulators or enforcement agencies, including State
authorizing agencies and State attorneys general, or through
qui tam actions; and
``(4) actions against the institution by accreditors.''.
(d) Enhanced Civil Penalties.--Section 487(c)(3)(B) of the
Higher Education Act (20 U.S.C. 1094(c)(3)(B)) is amended--
(1) in clause (i)--
(A) by inserting ``or its third-party servicer'' after
``eligible institution''; and
(B) by striking ``$25,000 for each violation or
misrepresentation'' and inserting ``$100,000 for each
violation or misrepresentation, or--
``(I) in the case of an institution, 1.0 percent of the
amount of funds the institution received through this title
in the most recent award year prior to the determination for
each such violation; and
``(II) in the case of a third-party servicer that contracts
with such institution, the amount of the contract with the
institution.'';
(2) by redesignating clause (ii) as clause (iii);
(3) by inserting after clause (i) the following:
``(ii) The Secretary may consider each time a substantial
misrepresentation is viewed or experienced, including static
or standing misrepresentations, as a separate violation or
misrepresentation.''; and
(4) by adding at the end the following:
``(iv) For the purpose of determining the amount of civil
penalties under this subsection, any violation by a
particular institution will accrue against all institutions
or affiliates with common ownership.''.
SEC. 302. FOR-PROFIT EDUCATION OVERSIGHT COORDINATION
COMMITTEE.
Part B of title I (20 U.S.C. 1011 et seq.) is amended by
adding at the end the following:
``SEC. 124. FOR-PROFIT EDUCATION OVERSIGHT COORDINATION
COMMITTEE.
``(a) Establishment of Committee.--
``(1) In general.--There is established in the executive
branch a committee to be known as the `For-Profit Education
Oversight Coordination Committee' (referred to in this
section as the `Committee') and to be composed of the head
(or the designee of such head) of each of the following
Federal entities:
``(A) The Department of Education.
``(B) The Bureau of Consumer Financial Protection.
``(C) The Department of Justice.
``(D) The Securities and Exchange Commission.
``(E) The Department of Defense.
``(F) The Department of Veterans Affairs.
``(G) The Federal Trade Commission.
``(H) The Department of Labor.
``(I) The Internal Revenue Service.
``(J) The enforcement unit of the Performance-Based
Organization established under section 141(g).
``(K) At the discretion of the Chairperson of the
Committee, any other relevant Federal agency or department.
``(2) Purposes.--The Committee shall have the following
purposes:
``(A) Coordinate Federal oversight of for-profit
institutions of higher education to--
``(i) improve enforcement of applicable Federal laws;
``(ii) increase accountability of for-profit institutions
of higher education to students and taxpayers; and
``(iii) ensure the promotion of quality education programs.
``(B) Coordinate Federal activities to protect students
from unfair, deceptive, abusive, unethical, fraudulent, or
predatory practices, policies, or procedures of for-profit
institutions of higher education.
``(C) Encourage information sharing among agencies related
to Federal investigations, audits, program reviews,
inquiries, complaints, financial statements, and other
information relevant to the oversight of for-profit
institutions of higher education.
``(D) Develop binding memoranda of understanding that the
Federal entities represented on the Committee will use
regarding the sharing of information to exercise the
oversight described in this section.
``(E) Increase coordination and cooperation between Federal
and State agencies (including State authorizing agencies,
State attorneys general, and State approving agencies
designated under section 3671 of title 38, United States
Code) with respect to improving oversight and accountability
of for-profit institutions of higher education.
``(F) Develop best practices and consistency among Federal
and State agencies in the dissemination of consumer
information regarding for-profit institutions of higher
education to ensure that students, parents, and other
stakeholders have easy access to such information.
``(3) Chairperson.--The Secretary of Education or the
designee of the Secretary shall serve as the Chairperson of
the Committee.
``(b) Meetings.--
``(1) Committee meetings.--The members of the Committee
shall meet regularly, but not less than once during each
quarter of each fiscal year, to carry out the purposes
described in subsection (a)(2).
``(2) Meetings with state agencies and stakeholders.--The
Committee shall meet not less than once each fiscal year, and
shall otherwise interact regularly, with State authorizing
agencies, State attorneys general, State approving agencies
designated under section 3671 of title 38, United States
Code, veterans service organizations, and consumer advocates
to carry out the purposes described in subsection (a)(2).
``(c) Director.--The Chairperson shall appoint a full-time
executive director to support the Committee and may appoint
and fix the pay of additional staff as the Chairperson
considers appropriate.''.
SEC. 303. ESTABLISHMENT AND MAINTENANCE OF COMPLAINT
RESOLUTION AND TRACKING SYSTEM.
(a) Complaint Tracking System.--Title I (20 U.S.C. 1001 et
seq.) is amended by adding at the end the following:
``PART F--COMPLAINT TRACKING SYSTEM
``SEC. 161. COMPLAINT TRACKING SYSTEM.
``(a) Definitions.--In this section:
``(1) Complainant.--The term `complainant' means an
individual making a complaint, or report of suspicious
activity, through the complaint tracking system.
[[Page S1712]]
``(2) Complaint tracking system.--The term `complaint
tracking system' means the tracking system established under
subsection (b).
``(3) Third-party servicer.--The term `third-party
servicer' has the meaning given the term in section 481(c).
``(b) In General.--The Secretary shall--
``(1) establish and operate, in coordination with the
Student Loan Ombudsman, a complaint tracking system that
includes a single, toll-free telephone number and a website
to facilitate the centralized collection of, monitoring of,
and response to complaints or reports of suspicious activity
regarding--
``(A) Federal student financial aid and the servicing of
postsecondary education loans by loan servicers;
``(B) educational practices and services of institutions of
higher education or third-party servicers; and
``(C) the recruiting and marketing practices of
institutions of higher education or third-party servicers;
and
``(2) ensure that--
``(A) complaints or reports submitted by students,
borrowers of student loans, staff of loan servicers,
institutions of higher education, or third-party servicers,
or the general public--
``(i) may remain anonymous if the complainant so chooses,
including by providing complainants with an option for the
individual complaint to not be reported to the loan servicer,
institution, or third-party servicer, as the case may be; and
``(ii) may describe problems that are systematic in nature
and not associated with a particular student or institution;
``(B) complaints and reports are provided to the loan
servicers, institutions of higher education, or third-party
servicers that are the subject of such complaints or reports;
``(C) such loan servicer, institution of higher education,
or third-party servicer provides a timely response to the
complainant; and
``(D) the complaint tracking system has the capacity to
retrieve, search, and categorize complaints or reports for
purposes of identifying problematic trends and systemic
practices.
``(c) Handling of Complaints or Reports.--
``(1) In general.--The Secretary shall establish, in
consultation with the heads of appropriate agencies
(including the Director of the Bureau of Consumer Financial
Protection), reasonable procedures to provide a timely
response to individuals who file a complaint or report of
suspicious activity in the complaint tracking system.
``(2) Timely response to complaints.--The Secretary shall
provide a response to a complainant not more than 90 days
after receiving the complaint, or report of suspicious
activity, through the system, in writing where appropriate.
Each response shall include a description of--
``(A) the steps that have been taken by the Secretary in
response to the complaint or report;
``(B) any responses received by the Secretary from the loan
servicer, institution of higher education, or third-party
servicer; and
``(C) any additional actions that the Secretary has taken,
or plans to take, in response to the complaint or report.
``(3) Timely response to secretary by institution of higher
education or servicer.--
``(A) Notice.--If the Secretary determines that it is
necessary, the Secretary shall--
``(i) notify a loan servicer, institution of higher
education, or third-party servicer that is the subject of a
complaint, or report of suspicious activity, through the
complaint tracking system regarding the complaint or report;
and
``(ii) directly address and resolve the complaint or report
in the system.
``(B) Institution or servicer response.--Not later than 60
days after receiving a notice under subparagraph (A), a loan
servicer, institution of higher education, or third-party
servicer shall provide a response to the Secretary concerning
the complaint or report, including--
``(i) the steps that have been taken by the loan servicer,
institution, or third-party servicer to respond to the
complaint or report;
``(ii) all responses received by the loan servicer,
institution, or third-party servicer from the complainant;
and
``(iii) any additional actions that the loan servicer,
institution, or third-party servicer has taken, or plans to
take, in response to the complaint or report.
``(C) Further investigation.--In the event that a complaint
or report received by the complaint tracking system is not
adequately resolved or addressed by the responses of the loan
servicer, institution of higher education, or third-party
servicer under subparagraph (B), the Secretary may--
``(i) ask additional questions of such loan servicer,
institution, or third-party servicer; or
``(ii) seek additional information from or action by the
loan servicer, institution, or third-party servicer.
``(4) Provision of information.--
``(A) In general.--A loan servicer, institution of higher
education, or third-party servicer shall, in a timely manner,
comply with a request by the Secretary for information in the
control or possession of such loan servicer, institution, or
third-party servicer, respectively, concerning a complaint or
report of suspicious activity received by the Secretary under
the complaint tracking system, including supporting written
documentation, subject to subparagraph (B).
``(B) Exceptions.--A loan servicer, institution of higher
education, or third-party servicer shall not be required to
make available under this paragraph--
``(i) any nonpublic or confidential information, including
any confidential commercial information;
``(ii) any information collected by the loan servicer,
institution, or third-party servicer for the purpose of
preventing fraud or detecting or making any report regarding
other unlawful or potentially unlawful conduct; or
``(iii) any information required to be kept confidential by
any other provision of law.
``(5) Compliance.--A loan servicer, institution of higher
education, or third party servicer shall comply with the
requirements to provide responses and information, in
accordance with this subsection, as a condition of receiving
funds under title IV or as a condition of the contract with
the Department, as applicable.
``(d) Transparency.--
``(1) Data publication.--The Secretary shall, on an annual
basis, publish data on the website of the Department that
shall include, for each loan servicer, institution, and
third-party servicer--
``(A) the number of complaints and reports received;
``(B) the types of complaints and reports received;
``(C) information about the resolution of the complaints
and reports; and
``(D) if the complainant consents, the narrative content of
the complaint or report.
``(2) Report.--Each year, the Secretary shall prepare and
submit to the authorizing committees a report describing--
``(A) the types and nature of complaints or reports the
Secretary has received under the complaint tracking system;
``(B) the extent to which complainants are receiving
adequate resolution pursuant to this section;
``(C) whether particular types of complaints or reports are
more common in a given sector of institutions of higher
education or with particular loan servicers or third-party
servicers;
``(D) any concerning trends or systemic practices
identified;
``(E) any legislative recommendations that the Secretary
determines are necessary to better assist students and
families regarding the activities described in subsection
(c)(1); and
``(F) the loan servicers, institutions of higher education,
and third-party servicers with the highest volume of
complaints and reports, as determined by the Secretary.''.
(b) Program Participation Agreement Requirement.--Section
487(a) (20 U.S.C. 1094(a)) is amended by adding at the end
the following:
``(32) The institution will comply with any requirement
under section 161, or any other requirement by the
Department, to provide information or responses with respect
to a complaint or report of suspicious activity about the
institution.''.
SEC. 304. REFORMS TO ELIGIBILITY AND CERTIFICATION
PROCEDURES.
(a) Eligibility and Certification Procedures.--Section 498
(20 U.S.C. 1099c) is amended--
(1) in subsection (a)--
(A) by striking ``For purposes'' and inserting the
following:
``(1) In general.--For purposes'';
(B) by striking ``status, and'' and inserting ``status,'';
(C) by inserting ``, and the institution's compliance with
all other eligibility requirements in accordance with
paragraph (2),'' after ``an institution of higher
education''; and
(D) by adding at the end the following:
``(2) Compliance.--
``(A) In general.--In making a determination of
institutional eligibility under this section, the Secretary
shall--
``(i) require that an institution demonstrate compliance
with each provision required under this title in order to
receive a full, non-provisional certification of eligibility
for purposes of this section;
``(ii) reflect that an institution is not entitled to
continued participation in programs under this title absent a
demonstration of full compliance; and
``(iii) determine that an institution is not eligible for
participation in programs under this title if it is not in
full compliance with section 487(a)(16).''; and
(2) in subsection (f)--
(A) by striking ``The Secretary shall ensure'' and
inserting the following:
``(1) In general.--The Secretary shall ensure''; and
(B) by striking ``The personnel'' and inserting the
following: ``The Secretary shall not automatically certify or
recertify an institution for participation in a program under
this title as a result of delay in conducting a full review
of the institution's application.
``(2) Site visits.--The personnel''.
(b) Provisional Certification of High-risk Institutions.--
Section 498 (20 U.S.C. 1099c) is amended--
(1) in subsection (h)--
(A) in paragraph (1)(B)--
(i) in clause (ii), by striking ``or'' after the semicolon;
(ii) in clause (iii), by striking the period at the end and
inserting a semicolon; and
(iii) by adding at the end the following:
[[Page S1713]]
``(iv) the institution has violated any requirement of this
title;
``(v) the institution has violated the terms of its program
participation agreement under section 487; or
``(vi) the Secretary determines that the institution's
continued participation in programs under this title poses a
significant risk to students and taxpayers.'';
(B) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively; and
(C) by inserting after paragraph (1) the following:
``(2) Additional conditions.--The Secretary shall require a
provisionally certified institution to comply with such
additional conditions as the Secretary determines necessary
or appropriate based on the circumstances of the institution,
as specified in the institution's program participation
agreement under section 487.'';
(2) by redesignating subsections (i), (j), and (k) as
subsections (j), (k), and (l), respectively; and
(3) by inserting after subsection (h) the following:
``(i) Termination Action.--If an institution that is
provisionally certified under subsection (h) is unable to
meet its responsibilities under its program participation
agreement or is in violation of any requirement established
under this title (including if the institution has engaged in
substantial misrepresentations), or if a final administrative
finding or judicial judgment determines that the institution
violated a State or Federal consumer protection law or
regulation, the Secretary may terminate the institution's
participation in the programs under this title.''.
(c) Program Participation Agreement Claims.--
(1) False claims.--Section 487(c) (20 U.S.C. 1094(c)) is
amended by adding at the end the following:
``(8) False Claims.--
``(A) In general.--An institution that submits a
misrepresentation or false claim on an application for funds
under this title, or knowingly (as defined in section 3729 of
title 31, United States Code) fails to comply with the
requirements of the program participation agreement under
this section, shall be subject to sections 3729 through 3733
of such title.
``(B) Amount of damages.--For purposes of section 3729(a)
of title 31, United States Code, the amount of damages that
the Government sustains because of the act of the institution
described in subparagraph (A) shall be the total amount of
funds distributed to the institution for loans made to
students under part D during the period beginning on the date
of the submission of the application or the failure to comply
(as the case may be) and ending on the date on which a final
decision finding a violation of section 3729 of such Code is
made.''.
(2) Certification of compliance.--Paragraph (21) of section
487(a) (20 U.S.C. 1094(a)(21)) is amended to read as follows:
``(21) The institution--
``(A) acknowledges that the agreement certifies the
institution's compliance with all terms of the program
participation agreement and all applicable Federal laws and
regulations that govern an institution's eligibility to
receive funds under this title;
``(B) agrees that any violation of the terms of a program
participation agreement or any other Federal law or
regulation described in subparagraph (A) constitutes material
noncompliance with a condition of payment; and
``(C) will meet the requirements established by the
Secretary and accrediting agencies or associations, and will
provide evidence to the Secretary that the institution has
the authority to operate within a State.''.
SEC. 305. STATE OVERSIGHT.
(a) In General.--Section 101 (20 U.S.C. 1001) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (3), (4), and (5) as
paragraphs (4), (5), and (6), respectively; and
(B) by inserting after paragraph (2) the following:
``(3) if providing education through distance education or
correspondence in a State in which the institution is not
located--
``(A) meets the requirements of such State for offering
postsecondary education; or
``(B) if the institution is authorized by a State pursuant
to an interstate reciprocity agreement--
``(i) the institution must have fewer than 200 students in
such State enrolled annually;
``(ii) the agreement must allow States to enforce all non-
registration and non-fee laws with respect to out-of-State
institutions; and
``(iii) decisions regarding eligibility to participate in
the reciprocity agreement and the standards that apply to
participating institutions shall be made exclusively by
representatives of member State regulatory agencies or State
attorneys general offices;''; and
(2) in subsection (b)(1), by striking ``paragraphs (1),
(2), (4), and (5) of subsection (a)'' and inserting
``paragraphs (1), (2), (3), (5), and (6) of subsection (a)''.
(b) Conforming Amendments.--Section 102 (20 U.S.C. 1002) is
amended--
(1) in subsection (a)(2)(A), by striking ``section
101(a)(4)'' each place the term appears and inserting
``section 101(a)(5)'';
(2) in subsection (b)(1)--
(A) in subparagraph (B), by striking ``paragraphs (1) and
(2) of section 101(a)'' and inserting ``paragraphs (1), (2),
and (3) of section 101(a)''; and
(B) in subparagraph (C), by striking ``paragraph (4) of
section 101(a)'' and inserting ``paragraph (5) of section
101(a)''; and
(3) in subsection (c)(1)(B), by striking ``requirements of
paragraphs (1), (2), (4), and (5) of section 101(a)'' and
inserting ``requirements of paragraphs (1), (2), (3), (5),
and (6) of section 101(a)''.
SEC. 306. ACCREDITING AGENCY OVERSIGHT.
Section 496(c) ((20 U.S.C. 1099b(c)) is amended--
(1) in paragraph (8), by striking ``and'' after the
semicolon;
(2) in paragraph (9)(B), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(10)(A) assesses the risk to students of any institution
or program, including assessing the risk to students and
institutions of any program managed by a third-party
servicer, in accordance with factors provided by the
Secretary;
``(B) effectively determines whether each such institution
or program warrants additional oversight or action; and
``(C) provides adequate monitoring of the quality and risk
of such institutions or programs.''.
SEC. 307. MANDATORY SPENDING FOR ADMINISTRATIVE COSTS OF
OPERATING THE STUDENT AID PROGRAMS.
Paragraph (3) of section 458(a) (20 U.S.C. 1087h(a)(3)) is
amended to read as follows:
``(3) Funds for administrative costs.--
``(A) In general.--Each fiscal year, there shall be
available to the Secretary from funds not otherwise
appropriated, funds to be obligated for administrative costs
under this part, including the costs of the student loan
program under this part, except that the total expenditures
by the Secretary under this subparagraph shall not exceed 5
percent of the amount of the average outstanding Federal
student loan portfolio under this part for the preceding
fiscal year.
``(B) Availability.--Funds made available under
subparagraph (A) shall remain available until expended. The
Secretary is authorized to use funds available under this
paragraph for a fiscal year for a subsequent fiscal year.
``(C) Budget.--No funds may be expended under this
paragraph unless the Secretary includes in the annual budget
request of the Department to Congress a detailed description
of--
``(i) the specific activities for which the funds made
available by this paragraph have been used in the most recent
fiscal year;
``(ii) the activities and costs planned for the fiscal year
for which the request is made; and
``(iii) the projection of activities and costs for the
fiscal year immediately following the fiscal year for which
administrative expenses under this paragraph are made
available.''.
TITLE IV--IMPROVING ACCESS TO STUDENT AND TAXPAYER INFORMATION
SEC. 401. REPORTING AND DISCLOSURES FROM INSTITUTIONS OF
HIGHER EDUCATION.
(a) Gainful Employment and Financial Value Transparency
Disclosures and Warnings.--Section 498C, as added by section
101(b), is amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following:
``(e) Disclosures and Warnings.--
``(1) In general.--For each gainful employment program or
graduate or professional degree program of an institution
that does not meet the standards described in subsection (b),
the institution shall--
``(A) provide warnings to prospective students and enrolled
students of the institution regarding the failing program
status in a manner specified by the Secretary; and
``(B) shall require prospective students to acknowledge
receipt of the warning.
``(f) Disclosure.--An institution of higher education shall
provide the link to the website described in subsection
(c)(2)(A)(ii) to prospective and enrolled students in a
manner specified by the Secretary.''.
(b) Instructional Spending Data and Disclosures.--Section
132 (20 U.S.C. 1015a) is amended--
(1) by redesignating subsection (l) as subsection (n); and
(2) by inserting after subsection (k) the following:
``(l) Investments in Instruction and Student Services.--
``(1) Institutional expenditures.--
``(A) In general.--The Secretary shall establish
definitions for calculating instructional expenditures that
shall separately account for the expenditures of an
institution of higher education on each of the following:
``(i) Instruction.
``(ii) Student services.
``(iii) Marketing.
``(iv) Recruitment.
``(v) Advertising.
``(vi) Lobbying.
``(B) Exclusions.--Expenditures on instruction and student
services, as defined in accordance with clauses (i) and (ii)
of subparagraph (A), shall not include expenditures on
marketing, recruitment, advertising, compensation of
executives or officers, or lobbying, or other pre-enrollment
expenditures.
``(2) Reporting.--Each institution of higher education
receiving Federal funds under title IV shall report to the
Secretary--
``(A) the total dollar amount of title IV funds received by
the institution;
[[Page S1714]]
``(B) the proportion of title IV funds spent on recruitment
activities and marketing activities;
``(C) the proportion of title IV funds spent on instruction
and student services; and
``(D) for each program of education or division of the
institution for which the tuition is charged, the price of
tuition relative to the institution's allocation of revenues
to spending on instruction and student services.
``(3) Disclosures by the department of education.--The
Secretary shall make the disclosures reported under paragraph
(2) publicly available on the College Navigator website.''.
(c) Transparency of Online Programs.--Section 132 (20
U.S.C. 1015a), as amended by subsection (b), is further
amended by inserting after subsection (l), as added by
subsection (b)(2), the following:
``(m) Improving Transparency for Online and Contracted
Programs.--
``(1) Annual reporting requirements for third-party
servicer activities.--Each institution of higher education
that receives Federal funds under title IV shall report
annually to the Secretary--
``(A) the name of each third-party servicer with which the
institution contracts; and
``(B) for each such third-party servicer--
``(i) the names of any programs for which each such third-
party servicer is contracted to provide support;
``(ii) the services each such third-party servicer is
contracted to offer for each program;
``(iii) the number of students enrolled in any program for
which the third-party servicer is contracted to provide
services;
``(iv) whether the third-party servicer administers or
provides any private or institutional student loan products;
and
``(v) the third-party servicer's total expenditures on
advertising, marketing, and recruiting on behalf of the
institution.
``(2) Disclosure requirements.--If an institution of higher
education receiving Federal funds under title IV contracts
with a third-party servicer to offer one or more programs of
education, and such third-party servicer provides recruitment
activities, retention activities, or similar activities (as
specified by the Secretary) for the program--
``(A) the institution and third-party servicer shall
prominently disclose for each such program of education, in a
manner specified by the Secretary and using language
developed by the Secretary, the nature of the relationship
between the institution and third-party servicer--
``(i) in advertisements;
``(ii) in marketing materials; and
``(iii) on the website of the institution; and
``(B) individuals who are employed by the third-party
servicer to provide admissions, recruitment, retention, or
advising activities shall prominently disclose to prospective
or enrolled students that the individuals are employees of
that third-party servicer and not the institution, including
in any communication about the program of education.
``(3) Annual reporting requirements for online education.--
Each institution of higher education receiving Federal funds
under title IV shall report annually to the Secretary--
``(A) the institution's expenditures on activities to
secure enrollments for each online, on-campus, and hybrid
program, and its total expenditures for all activities of the
institution;
``(B) the status of each student receiving Federal student
aid as enrolled online, on-campus, or in a combination of
both modalities, sufficient for the Secretary to calculate
the total student enrollment, retention and completion rates,
student loan borrowing levels, student loan repayment
outcomes, and median earnings for each such program; and
``(C) the annual net price charged for each such
program.''.
(d) Disclosure of Material Facts for Proprietary
Institutions.--Section 498(c) (20 U.S.C. 1099c(c)), as
amended by section 203, is further amended by adding at the
end the following:
``(8)(A) The Secretary shall require each proprietary
institution of higher education (as defined in section
102(c)) to file promptly with the Secretary--
``(i) all public filings that the institution files with
the Securities and Exchange Commission that include
references to matters that affect students, including--
``(I) mergers and acquisitions;
``(II) changes of ownership;
``(III) changes of leadership and board membership;
``(IV) school or campus closings;
``(V) civil lawsuits;
``(VI) law enforcement actions, investigations, subpoenas,
and demand letters; and
``(VII) material change in financial status; and
``(ii) in the case of an institution that is not required
to make disclosures to the Securities and Exchange
Commission, notifications regarding matters that affect
students similar to the filings described in clause (i), in a
form and manner determined by the Secretary.
``(B) The Secretary shall promptly make all information
received under subparagraph (A) available on the website of
the Department.''.
SEC. 402. TRANSPARENCY OF OVERSIGHT ACTIVITIES.
(a) Borrower Defense Claims and Discharges Data.--Section
455(h) (20 U.S.C. 1087e(h)), as amended by section 102(a), is
further amended--
(1) by redesignating paragraph (8) as paragraph (9); and
(2) by inserting after paragraph (7) the following:
``(8) Transparency.--The Secretary shall make publicly
available, and keep regularly updated, information regarding
the number of borrower defense claims filed and discharges
granted, disaggregated by institution of attendance, State of
residence as of the date of the claim, student loan servicer,
and the amount of discharge and reimbursement, based on
increments of not less than $10,000.''.
(b) 90/10 Rule Transparency.--Paragraph (3) of section
487(d) (20 U.S.C. 1094(d)(3)) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and adjusting the margins
appropriately;
(2) by striking ``The Secretary'' and inserting the
following:
``(A) Public disclosure of failure to meet requirements.--
The Secretary''; and
(3) by adding at the end the following:
``(B) Public disclosure of 90/10 data.--
``(i) In general.--The Secretary shall publicly disclose on
the website of the Department the data provided by
proprietary institutions for purposes of this subsection
(referred to in this subparagraph as the `90/10 database') in
a prompt, comprehensive, and user-friendly manner.
``(ii) Temporary omissions.--If any data for a proprietary
of institution required to be disclosed under clause (i) is
omitted because of issues unresolved at a given deadline of
the Secretary, the Secretary shall--
``(I) include, in the 90/10 database on the College
Navigator website, a notice that the information is omitted
for such proprietary institution and a clear explanation of
the reason for the delay; and
``(II) timely amend the 90/10 database to include the
information required to be disclosed for the relevant
reporting period.''.
(c) Change of Ownership and Conversion Transparency.--
Section 498(j) (20 U.S.C. 1099c(j)), as redesignated by
section 304(b)(2), is further amended by adding at the end
the following:
``(5) The Secretary shall promptly disclose on the website
of the Department--
``(A) any application for a change of ownership of an
institution or for a conversion of an institution from
proprietary to nonprofit status; and
``(B) any decision by the Secretary regarding approval or
disapproval of a change of ownership application, or an
application for conversion from proprietary to nonprofit
status, and all external communications describing or
explaining those decisions.''.
(d) Transparency in Financial Standing of Institutions.--
Section 498(c) (20 U.S.C. 1099c(c)), as amended by section
401(d), is further amended by adding at the end the
following:
``(9) The Secretary shall promptly post on the Department
website, for all institutions participating in a program
under this title--
``(A) the annual audited financial statements submitted by
each institution under this section and a list of any
institutions that have failed to timely submit audited
financial statements;
``(B)(i) the terms, amounts, and withdrawals for letters of
credit and other sureties required of institutions of higher
education under paragraph (3), including by providing updates
as new financial guarantees are required and as changes are
made to existing agreements; and
``(ii) all external communications between institutions of
higher education and the Department describing or
implementing the Secretary's requirements or determinations
regarding financial guarantees under paragraph (3); and
``(C)(i) each decision of the Secretary as to the
imposition or removal of heightened cash monitoring status
and other financial protections regarding an institution; and
``(ii) all external communications between institutions of
higher education and the Department describing or
implementing such decisions.''.
(e) Institutional Participation in the Title IV Programs.--
Section 498 (20 U.S.C. 1099c) is amended by adding at the end
the following:
``(m) Transparency.--The Secretary shall post on the
Department website the full program participation agreement
under section 487 for each institution that enters into such
an agreement and shall indicate if the institution is on
provisional, temporary provisional, or expired certification
status.''.
(f) Accrediting Agency Transparency.--Section 496 (20
U.S.C. 1099b) is amended--
(1) in subsection (o)--
(A) by inserting after ``Regulations.--'' the following:
``(1) In general.--''; and
(B) by adding at the end the following:
``(2) Disclosures.--
``(A) In general.--The Secretary shall publicly disclose on
the Department's website--
``(i) all of the Department's draft and final accrediting
agency or association recognition reports, and monitoring
reports and investigations of any accrediting agency or
association, under this section; and
``(ii) the reports and accompanying exhibits that each
accreditation agency or association submits to the Department
in the course of recognition and re-recognition reviews under
this section.
``(B) Disclosure requirements.--The Secretary shall
disclose the information required under subparagraph (A)
promptly, so
[[Page S1715]]
that members of the public may thoroughly and timely respond
via public comment in the course of Department reviews of
accrediting agencies and associations.''; and
(2) by adding at the end the following:
``(r) Transparency of Accrediting Agency or Association
Actions.--
``(1) In general.--An accrediting agency or association
recognized by the Secretary under this section shall promptly
post on the website of the accrediting agency or association
and shall submit to the Department, all communications sent
from the accrediting agency or association to an institution
explaining, or informing an institution of, an action taken
by the agency with respect to the institution, including--
``(A) to impose or remove a status of probation, warning,
concern, stipulation, or reporting, or similar status;
``(B) to impose or revoke a show cause order; or
``(C) to impose or revoke a limitation, suspension, or
termination action.
``(2) No redaction.--The communication posted and submitted
under paragraph (1) shall be without redaction, except for
personally identifiable information.
``(3) Disclosure by the secretary.--The Secretary shall
promptly publicly disclose on the website of the Department
all communications submitted pursuant to paragraph (1).''.
______
By Mrs. BRITT (for herself, Mr. Schatz, Mr. Warnock, Mrs.
Fischer, Mr. Ricketts, Mrs. Capito, Mr. Kaine, Mr. Tuberville,
and Mr. Cassidy):
S. 1003. A bill to require the Federal Communications Commission to
issue an order providing that a shark attack is an event for which a
wireless emergency alert may be transmitted, and for other purposes; to
the Committee on Commerce, Science, and Transportation.
Mrs. BRITT. Mr. President, I rise today to talk about something that
I have spoken about on this floor before.
Last September, an incredible young woman named Lulu Gribbin really
came on to the scene with regard to a piece of legislation that we put
forth before this body. You see, her life changed forever in July of
last year. She is an incredible young woman from Mountain Brook, AL.
She brought her entire community, her State, and now our Nation
together.
On June 7 of last year, out of the blue, she was attacked by a shark.
She and a friend were looking for sand dollars, and obviously all of
this came unexpectedly. What happened next was nothing short of a
miracle. The doctors, nurses, EMTs, and everyday people on the beach
that day saved Lulu's life.
But the real miracle was just beginning. When Lulu woke up from
surgery that day and got taken off of her ventilator, her very first
words were ``I made it.'' That has become a mantra not just in how she
reemerged but in the way that she has pushed forward.
After a long rehabilitation, she came back to Alabama 3 months after
the accident. She was determined. When you talk with her parents, they
tell you about her aggressiveness. When other amputees would come and
visit her and tell her how long it took them to walk or to do other
things, she would say: I am going to do it faster. I am going to do it
better.
She was back outclassing golfers there at a driving range, not too
long after. She refused letting losing an arm or a leg stop her.
Just last week, Lulu spoke publicly for the very first time since the
shark attack. Her grace, her faith, her strength, her perseverance--it
was an inspiration to all of us. Lulu told a crowd that morning that
she wakes up ready to conquer the day every day, and that she is
motivated to keep getting better.
She launched a foundation called Lulu Strong to help others in need
get the prosthetic technologies that will make their lives easier.
After visiting Walter Reed just a few weeks ago, you can tell how this
advocacy can actually change lives.
When the unimaginable changed her world, what Lulu decided to do was
change our world for the better. Lulu is a modern-day American hero.
The courage she has shown, the fight, the resolve that she has
demonstrated are truly remarkable, and not just for a 16-year-old but
for anyone.
But it shouldn't have to be this way. Lulu is, indeed, an
inspiration, but this tremendous battle that she has fought and won
could have been prevented in the first place. You see, when I heard
Lulu's story, I learned that there was another shark attack that
happened just right down the shore, 90 minutes earlier. Elisabeth
Foley, a mother of three, from Virginia, tragically lost her hand to a
shark bite and suffered other terrible injuries resulting in 26
surgeries.
After talking with Lulu and her family, we said: It doesn't have to
be this way. They knew there was something that could have been done.
And after talking, we knew that there had to be a better way to get
information out there to warn beachgoers about shark attacks in the
area. That is when we introduced Lulu's Law, and it is why I am
reintroducing this bill in this Congress today.
This bill, which I am proud to share, has bipartisan support. It
would empower local authorities to issue wireless emergency alerts
warning beachgoers of potential shark attacks through the already
existing wireless emergency system. This has the potential to make a
real difference in Americans' lives. When we are given the opportunity
to do something simple that can make such a big difference, I believe
we have to take it.
So, Lulu, I want you to know how much you inspire all of us. Your
bravery in the face of the unimaginable is just amazing, and your
taking what happened to you and saying: How can I make others' lives
better? How can we make sure that this doesn't happen to someone else?
We want to honor the strength that you have shown over the past 9
months.
To Lulu's parents Ann Blair and Joe Gribbin, the way you have all
rallied our State and our country to support Lulu on her road to
recovery is truly unbelievable.
To my colleagues in the Senate on both sides of the aisle, whether
you represent a State on the coast or you represent citizens of the
interior, there is no doubt we want to keep our citizens safe, whether
they live there or they are visiting. Making sure that we put
safeguards in place that can prevent another tragedy from occurring is
imperative.
Let's pass this law. Let's celebrate this amazing young woman, and
let's prevent this from happening again.
______
By Mr. DURBIN (for himself, Mr. Grassley, Mr. Booker, Mr.
Padilla, Mr. King, Ms. Slotkin, Ms. Baldwin, Ms. Rosen, Ms.
Klobuchar, Mr. Cassidy, Mr. Merkley, and Mr. Gallego):
S. 1009. A bill to establish the Baltic Security Initiative for the
purpose of strengthening the defensive capabilities of the Baltic
countries, and for other purposes; to the Committee on Foreign
Relations.
Mr. DURBIN. Madam President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1009
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 ``Baltic Security Initiative
Act''.
SEC. 2. BALTIC SECURITY INITIATIVE.
(a) Establishment.--Pursuant to the authority provided in
chapter 16 of title 10, United States Code, the Secretary of
Defense shall establish and carry out an initiative, to be
known as the ``Baltic Security Initiative'' (in this section
referred to as the ``Initiative''), for the purpose of
deepening security cooperation with the military forces of
the Baltic countries.
(b) Relationship to Existing Authorities.--The Initiative
required by subsection (a) shall be carried out pursuant to
the authorities provided in title 10, United States Code.
(c) Objectives.--The objectives of the Initiative shall
be--
(1) to achieve United States national security objectives
by--
(A) deterring aggression by the Russian Federation; and
(B) implementing the North Atlantic Treaty Organization's
new Strategic Concept, which seeks to strengthen the
alliance's deterrence and defense posture by denying
potential adversaries any possible opportunities for
aggression;
(2) to enhance regional planning and cooperation among the
military forces of the Baltic countries, particularly with
respect to long-term regional capability projects,
including--
(A) long-range precision fire systems and capabilities;
(B) integrated air and missile defense;
(C) maritime domain awareness;
(D) land forces development, including stockpiling large
caliber ammunition;
[[Page S1716]]
(E) command, control, communications, computers,
intelligence, surveillance, and reconnaissance;
(F) special operations forces development;
(G) coordination with and security enhancements for Poland,
which is a neighboring North Atlantic Treaty Organization
ally; and
(H) other military capabilities, as determined by the
Secretary of Defense; and
(3) with respect to the military forces of the Baltic
countries, to improve cyber defenses and resilience to hybrid
threats.
(d) Strategy.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, the Secretary of Defense shall
submit to the Committees on Armed Services of the Senate and
the House of Representatives a report setting forth a
strategy for the Department of Defense to achieve the
objectives described in subsection (b).
(2) Considerations.--The strategy required by this
subsection shall include a consideration of--
(A) security assistance programs for the Baltic countries
authorized as of the date on which the strategy is submitted;
(B) the ongoing security threats to the North Atlantic
Treaty Organization's eastern flank posed by Russian
aggression, including as a result of the Russian Federation's
2022 invasion of Ukraine with support from Belarus; and
(C) the ongoing security threats to the Baltic countries
posed by the presence, coercive economic policies, and other
malign activities of the People's Republic of China.
(e) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
the Secretary of Defense $350,000,000 for each of the fiscal
years 2026, 2027, and 2028 to carry out the Initiative.
(2) Sense of congress.--It is the sense of Congress that
the Secretary of Defense should seek to require matching
funds from each of the Baltic countries that participate in
the Initiative in amounts commensurate with amounts provided
by the Department of Defense for the Initiative.
(f) Baltic Countries Defined.--In this section, the term
``Baltic countries'' means--
(1) Estonia;
(2) Latvia; and
(3) Lithuania.
____________________