[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7892 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7892

 To amend the Higher Education Act of 1965 to require to the Secretary 
 of Education to use an identity fraud detection system to review each 
FAFSA to determine whether the FAFSA presents a reasonable suspicion of 
                            identity fraud.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 12, 2026

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

_______________________________________________________________________

                                 A BILL


 
 To amend the Higher Education Act of 1965 to require to the Secretary 
 of Education to use an identity fraud detection system to review each 
FAFSA to determine whether the FAFSA presents a reasonable suspicion of 
                            identity fraud.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Aid for Ghost Students Act of 
2026''.

SEC. 2. IDENTITY FRAUD DETECTION SYSTEM.

    (a) Identity Fraud Detection System.--Section 483 of the Higher 
Education Act of 1965 (20 U.S.C. 1090) is amended by adding at the end 
the following:
    ``(e) Identity Fraud Detection System.--
            ``(1) In general.--In addition to or in conjunction with 
        other verification processes carried out under this title, the 
        Secretary shall use an identity fraud detection system to 
        review each application submitted under this section on or 
        after October 1, 2026, to determine whether the application 
        presents a reasonable suspicion of identity fraud. If the 
        Secretary determines that such an application presents a 
        reasonable suspicion of identity fraud, the Secretary shall 
        carry out notifications in accordance with paragraph (2).
            ``(2) Notification of reasonable suspicion of identity 
        fraud.--If the Secretary determines that an application 
        submitted under this section presents a reasonable suspicion of 
        identity fraud, the Secretary shall--
                    ``(A) provide the applicant with notice--
                            ``(i) of such determination and the basis 
                        for such determination;
                            ``(ii) that the information described in 
                        subparagraph (B) will be transmitted to each 
                        institution of higher education designated by 
                        the applicant in the application; and
                            ``(iii) that the applicant is subject to 
                        additional identity verification requirements 
                        in accordance with section 487(a)(15); and
                    ``(B) transmit to each institution designated by 
                the applicant in the application, a notice--
                            ``(i) that such application presents a 
                        reasonable suspicion of identity fraud; and
                            ``(ii) that the applicant is subject to 
                        identity verification requirements to be 
                        carried out by the institution in accordance 
                        with section 487(a)(15)(B), before the 
                        institution may disburse Federal financial aid 
                        under this title to such applicant.
            ``(3) Congressional notices and report.--
                    ``(A) Notices.--The Secretary shall submit to the 
                authorizing committees--
                            ``(i) not later than November 1, 2026, a 
                        written description of the identity fraud 
                        detection system required under this 
                        subsection; and
                            ``(ii) not later than 30 days after 
                        implementing any substantial change to such 
                        system, a written description and rationale for 
                        such change.
                    ``(B) Annual evaluation and report.--Not later than 
                October 1, 2027, and annually thereafter, the Secretary 
                shall conduct an evaluation of the effectiveness of the 
                identity fraud detection system carried out under this 
                subsection, and submit to the authorizing committees a 
                report on the use and effectiveness of such system.''.
    (b) Additional Verification Requirements.--
            (1) Amendment.--Section 487(a)(15) of the Higher Education 
        Act of 1965 (20 U.S.C. 1094(a)(15)) is amended--
                    (A) by striking ``(15) The institution 
                acknowledges'' and inserting ``(15)(a) The institution 
                acknowledges''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(B) Beginning on October 1, 2026, the institution 
                will not disburse Federal financial aid under this 
                title to an applicant whose application under section 
                483 presents a reasonable suspicion of identity fraud 
                under section 483(e), unless the institution, in 
                accordance with procedures established by the 
                Secretary--
                            ``(i) determines that a reasonable 
                        suspicion of identity fraud is not present by 
                        confirming the identity of such applicant using 
                        in-person verification or live, synchronous 
                        audiovisual verification;
                            ``(ii) notifies the Secretary that the 
                        identity of the applicant has been verified; 
                        and
                            ``(iii) maintains a record of such identity 
                        verification.''.
            (2) Institutional verification procedures.--Not later than 
        October 1, 2026, the Secretary of Education shall establish 
        guidelines with respect to identity verification procedures to 
        be carried out by institutions of higher education under 
        subparagraph (B) of section 487(a)(15) of the Higher Education 
        Act of 1965 (20 U.S.C. 1094(a)(15)), as amended by paragraph 
        (1).
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