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

<DOC>





                                                 Union Calendar No. 360
119th CONGRESS
  1st Session
                                H. R. 4054

                          [Report No. 119-414]

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 20, 2025

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

                           December 18, 2025

                    Additional sponsor: Mr. Messmer

                           December 18, 2025

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on June 
                               20, 2025]


_______________________________________________________________________

                                 A BILL


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


 


    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Accreditation Choice and Innovation 
Act''.

SEC. 2. ACCREDITING AGENCY RECOGNITION.

    (a) Criteria Required.--Section 496(a) of the Higher Education Act 
of 1965 (20 U.S.C. 1099b(a)) is amended--
            (1) in the matter preceding paragraph (1), in the first 
        sentence, by striking ``or training'' and inserting ``or skills 
        development'';
            (2) by amending paragraph (1) to read as follows:
            ``(1) the accrediting agency or association (other than an 
        accrediting agency or association described in paragraph 
        (2)(D)) shall be a State or national agency or association and 
        shall demonstrate the ability to operate as an institutional or 
        programmatic accrediting agency or association within the State 
        or nationally, as appropriate;'';
            (3) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by striking 
                        ``principal''; and
                            (ii) in clause (ii), by striking ``its 
                        principal'' and inserting ``a''; and
                    (B) in subparagraph (B), by striking ``or'' at the 
                end;
                    (C) in subparagraph (C)--
                            (i) by striking ``its principal'' and 
                        inserting ``a''; and
                            (ii) by inserting ``or'' at the end; and
                    (D) by adding at the end the following:
                    ``(D) is an entity (such as an industry-specific 
                quality assurance entity) that has been--
                            ``(i) determined by a State to be a 
                        reliable authority as to the quality of 
                        education or skills development offered in such 
                        State for the purposes of this Act; and
                            ``(ii) designated (in accordance with 
                        subsection (b)(1)) by such State as an 
                        accrediting agency or association with respect 
                        to such State for such purposes;'';
            (4) in paragraph (3)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) subparagraph (A), (C), or (D) of paragraph 
                (2), then such agency or association is--
                            ``(i) distinctly incorporated or organized; 
                        and
                            ``(ii) both administratively and 
                        financially separate from, and independent of, 
                        any related, associated, or affiliated trade 
                        association or membership organization, by 
                        ensuring that--
                                    ``(I) the members of the board or 
                                governing body of the accrediting 
                                agency or association are not elected 
                                or selected by the board or chief 
                                executive officer (or the 
                                representative of such board or 
                                officer) of any related, associated, or 
                                affiliated trade association or 
                                membership organization;
                                    ``(II) among the membership of the 
                                board or governing body of the 
                                accrediting agency or association--
                                            ``(aa) if such board or 
                                        body is comprised of 5 or fewer 
                                        members, there is a minimum of 
                                        one member who is not also a 
                                        member of any related, 
                                        associated, or affiliated trade 
                                        association or membership 
                                        organization (referred to in 
                                        this subclause as a `public 
                                        member') and who represents 
                                        business (such as an owner of a 
                                        business (including a small 
                                        business), a chief executive or 
                                        operating officer of a 
                                        business, or another other 
                                        business executive or employer 
                                        with optimum policymaking or 
                                        hiring authority); and
                                            ``(bb) if such board or 
                                        body is comprised of 6 or more 
                                        members, there is a minimum of 
                                        2 public members (at least one 
                                        of whom represents business (as 
                                        described in item (aa))) for 
                                        every 6 members;
                                    ``(III) guidelines are established 
                                for such members to avoid conflicts of 
                                interest, including specific guidelines 
                                to ensure that no such member is an 
                                employee of any institution accredited 
                                by the agency or association or has a 
                                financial interest in any such 
                                institution;
                                    ``(IV) dues to the accrediting 
                                agency or association are paid 
                                separately from any dues paid to any 
                                related, associated, or affiliated 
                                trade association or membership 
                                organization; and
                                    ``(V) the budget of the accrediting 
                                agency or association is developed, 
                                determined, and maintained by the 
                                accrediting agency or association 
                                without any review by, consultation 
                                with, or approval by any related, 
                                associated, or affiliated trade 
                                association or membership organization; 
                                or'';
                    (B) by striking ``or'' at the end of subparagraph 
                (B); and
                    (C) by striking subparagraph (C);
            (5) in paragraph (4)--
                    (A) in subparagraph (A)--
                            (i) by inserting ``(in the manner described 
                        in subparagraph (B))'' after ``religious 
                        missions''; and
                            (ii) by striking ``and'' at the end; and
                    (B) by striking subparagraph (B) and inserting the 
                following:
            ``(B) such accrediting agency or association consistently 
        applies and enforces standards that respect the stated 
        religious mission of an institution of higher education by--
                    ``(i) basing decisions regarding accreditation and 
                preaccreditation on the standards of accreditation of 
                such agency or association; and
                    ``(ii) not using as a negative factor the 
                institution's religious mission based policies, 
                decisions, and practices in the areas covered by 
                subparagraphs (B), (C), (D), (E), and (F) of paragraph 
                (5), except that the agency or association may require 
                that the institution's or a program of study's 
                curricula include all core components required by the 
                agency or association that are not inconsistent with 
                the institution's religious mission; and
            ``(C) such agency or association demonstrates the ability 
        to review, evaluate, and assess the quality of any instruction 
        delivery model or method such agency or association has or 
        seeks to include within its scope of recognition, without 
        giving preference to or differentially treating (such as 
        through separate standards, procedures, or policies) a 
        particular instruction delivery model or method offered by an 
        institution or program, except that in a case in which an 
        instruction delivery model allows for the separation of the 
        student from the instructor, the agency or association requires 
        the institution to have processes--
                    ``(i) through which the institution establishes 
                that the student who registers in a course or program 
                with such an instruction delivery model is the same 
                student who participates in the course or program of 
                study (including, to the extent practicable, the 
                testing or other assessments required under the course 
                or program of study), completes the course or program 
                of study, and receives the academic credit for such 
                course or program of study; and
                    ``(ii) which are implemented in a manner that is 
                minimally burdensome to the student;'';
            (6) in paragraph (5)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) success with respect to student achievement 
                outcomes in relation to the institution's mission and 
                to the programs the institution offers, or the mission 
                of a specific degree, certificate, or credential 
                program, which may include different standards for 
                different institutions or programs of study, and which 
                shall include--
                            ``(i) standards for consideration of 
                        student success outcomes measures, including--
                                    ``(I) a comparison of the median 
                                total price charged to students in a 
                                program of study student cohort to the 
                                value-added earnings of such cohort;
                                    ``(II) completion rates;
                                    ``(III) retention rates; and
                                    ``(IV) loan repayment rates;
                            ``(ii) standards for consideration of 
                        learning outcomes measures (such as competency 
                        attainment and licensing examination passage 
                        rates); and
                            ``(iii) standards for consideration of 
                        labor market outcomes measures (such as 
                        employability measures, earnings gains, or 
                        other similar approaches);''; and
                    (B) by amending subparagraph (I) to read as 
                follows:
                    ``(I) record of student complaints received by, or 
                available to, the agency or association, and the 
                institution's process for resolving complaints against 
                the institution; and'';
                    (C) in the matter following subparagraph (J), by 
                striking ``subparagraphs (A), (H), and (J)'' and 
                inserting ``subparagraph (J)''; and
            (7) in paragraph (6)(A)(ii), by inserting before the 
        semicolon at the end the following: ``(including any student 
        complaints received by, or available to, the agency or 
        association)''.
    (b) Secretarial Requirements and Authority.--Subsection (b) of 
section 496 of the Higher Education Act of 1965 (20 U.S.C. 1099b) is 
amended to read as follows:
    ``(b) Secretarial Requirements and Authority.--
            ``(1) State designated accrediting agency.--
                    ``(A) Approval of state plans.--The Secretary 
                shall--
                            ``(i) if a State's plan with respect to the 
                        State's designation of an entity as an 
                        accrediting agency or association for the 
                        purposes described in subsection (a)(2)(D) 
                        includes each of the elements listed in 
                        subparagraph (B)--
                                    ``(I) subject to clause (ii)(I), 
                                approve the State's designation of such 
                                entity as such accrediting agency or 
                                association for the purposes described 
                                in subsection (a)(2)(D) for a 5-year 
                                period, beginning not later than 30 
                                days after receipt of the plan from 
                                such State with respect to such 
                                designation;
                                    ``(II) submit to the State and the 
                                authorizing committees, and make 
                                publicly available, the Secretary's 
                                response to the State with respect to 
                                such plan, including whether the plan 
                                includes each of the elements listed in 
                                subparagraph (B); and
                                    ``(III) publish in the Federal 
                                Register, with a 30-day public comment 
                                period, the plan submitted by such 
                                State with respect to such designation, 
                                and the Secretary's response to such 
                                plan; and
                            ``(ii) if, not later than 30 days after the 
                        30-day public comment period referred to in 
                        clause (i)(III), a State revises the State's 
                        plan approved under clause (i)(I) to 
                        incorporate one or more of the comments 
                        received during such 30-day comment period, and 
                        such revised plan includes each of the elements 
                        listed in subparagraph (B)--
                                    ``(I) revise the 5-year period 
                                described in clause (i)(I) approving 
                                the State's designation of the entity 
                                as an accrediting agency or association 
                                for the purposes described in 
                                subsection (a)(2)(D) to begin not later 
                                than 30 days after receipt of such 
                                revised plan;
                                    ``(II) submit to the State and the 
                                authorizing committees, and make 
                                publicly available, the Secretary's 
                                response to the State with respect to 
                                such revised plan, including whether 
                                such revised plan includes each of the 
                                elements listed in subparagraph (B); 
                                and
                                    ``(III) publish in the Federal 
                                Register, such revised State plan, and 
                                the Secretary's response to such 
                                revised State plan.
                    ``(B) Required plan elements.--The required 
                elements of a State plan submitted under subparagraph 
                (A) with respect to the designation of an entity as an 
                accrediting agency or association are as follows:
                            ``(i) A description of the process the 
                        State used to select the entity for such 
                        designation.
                            ``(ii) A justification of the State's 
                        decision to select the entity for such 
                        designation.
                            ``(iii) A description of any requirements 
                        (in addition to the requirements of this 
                        section), that the State required the entity to 
                        comply with as a condition of receiving and 
                        maintaining such designation, including a 
                        requirement for the entity to use, to the 
                        extent practicable during such designation, the 
                        common terminology developed pursuant to 
                        paragraph (3).
                            ``(iv) A copy of the standards, policies, 
                        and procedures of the entity that the State 
                        considered in selecting the entity for such 
                        designation.
                            ``(v) The State's assessment of how the 
                        standards for accreditation of the entity will 
                        be effective in meeting the requirements of 
                        subsection (a)(5).
                            ``(vi) Evidence that at least one other 
                        State has determined that such entity is a 
                        reliable authority as to the quality of 
                        education offered for the purposes of this Act