Truth in Tuition Act of 2025

Bill Number

H.R. 1090

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Education

Status

Introduced

Latest Action

2025-02-06: Referred to the House Committee on Education and Workforce.

Last Updated

2025-07-21T19:44:15Z

AI-Generated Summary

Purpose

The "Truth in Tuition Act of 2025" aims to increase transparency in higher education costs by requiring colleges and universities to provide admitted students with clear information about tuition and fees over multiple years. This helps students better plan for the financial demands of their education.

Key Provisions

• Required Disclosures: Institutions of higher education that participate in federal student aid programs must give each admitted undergraduate or graduate student one of the following:
• A multi-year schedule of tuition and fees, showing year-by-year costs for the typical length of the program.
• A single-year schedule of tuition and fees, plus a nonbinding multi-year estimate of net costs (after financial aid) based on assumed stable family income, assets, and circumstances.
• Flexibility in Estimates: Multi-year schedules or estimates can include any percentage or dollar increase or decrease in costs that the institution deems appropriate from one year to the next.
• Accuracy Reporting: For institutions using the single-year option with estimates, they must include the average percentage difference between past estimates and actual net costs for students at their school.
• Waivers: The U.S. Secretary of Education can exempt an institution from these requirements if it shows that compliance is not feasible due to severe economic hardship, major cuts in state or federal funding, or other significant challenges.
• Effective Date: The rules take effect 120 days after the bill becomes law.

Significant Changes to Existing Law

This bill amends Section 487(a) of the Higher Education Act of 1965 (which outlines institutional eligibility and compliance for federal student aid) by adding a new paragraph (30). Previously, there were no specific federal mandates for multi-year tuition disclosures or estimates, though some institutions voluntarily provided such information. This introduces a uniform requirement to enhance predictability and reduce surprises in college costs.

Potential Impacts

• On Students and Families: Greater clarity on future costs could help with financial planning, reduce debt surprises, and encourage informed decisions about college choices, potentially improving access to higher education.
• On Institutions: Colleges may face added administrative work to create and update these disclosures, but it could build trust with prospective students and align with broader efforts to address rising tuition concerns.
• On Government Agencies: The Department of Education will need to oversee compliance and handle waiver requests, possibly increasing enforcement responsibilities without new funding specified.
• On International Relations: Minimal direct impact, though it could indirectly affect international students by making U.S. institutions more transparent about costs.

Main Stakeholders Affected

• Students and Families: Primary beneficiaries, gaining tools to anticipate education expenses.
• Higher Education Institutions: Public and private colleges/universities eligible for federal aid must comply, with smaller or financially strained schools potentially seeking waivers.
• U.S. Department of Education: Responsible for implementing, enforcing, and waiving requirements.
• Federal and State Governments: Involved through student aid programs; states may see indirect effects if institutions adjust pricing or aid strategies.

Notable Legal, Constitutional, or Political Implications

• Legal: Ties compliance to eligibility for federal student aid, meaning non-compliant institutions risk losing access to programs like Pell Grants or loans. The waiver provision allows flexibility to avoid overly burdensome rules during crises.
• Constitutional: No major issues anticipated; the bill regulates federally funded programs, which Congress has broad authority over under the Spending Clause of the U.S. Constitution (allowing conditions on federal funds).
• Political: Introduced with bipartisan support (sponsors from both parties), it addresses public concerns about college affordability and tuition hikes without mandating price controls, potentially appealing across ideological lines as a transparency-focused reform.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Perez, Marie Gluesenkamp [D-WA-3]

Cosponsors (5)

Rep. Peters, Scott H. [D-CA-50], Rep. Connolly, Gerald E. [D-VA-11], Rep. Fitzpatrick, Brian K. [R-PA-1], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Schakowsky, Janice D. [D-IL-9]

Recent Actions

• 2025-02-06: Referred to the House Committee on Education and Workforce.
• 2025-02-06: Introduced in House
• 2025-02-06: Introduced in House

Bill Versions

• Truth in Tuition Act of 2025 — issued 2025-02-06 — PDF (3 pages)