POST Act of 2025
- Bill Number
- H.R. 4026
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Education
- Status
- Introduced
- Latest Action
- 2025-06-17: Referred to the House Committee on Education and Workforce.
- Last Updated
- 2026-04-20T20:09:52Z
AI-Generated Summary
Protecting Our Students and Taxpayers Act of 2025 (POST Act of 2025)
Purpose The legislation amends the Higher Education Act of 1965 to strengthen oversight of proprietary (for-profit) institutions of higher education. Its goal is to limit reliance on federal student aid funds, thereby protecting students from potential financial harm and safeguarding taxpayer resources.
Key Provisions
- Requires proprietary institutions to derive at least 15 percent of revenues from non-federal sources (the 85/15 rule), calculated using cash-basis accounting.
- Defines "Federal education assistance funds" broadly and specifies what counts as revenue, including tuition from eligible programs, certain job-training contracts, and non-title IV programs meeting strict conditions.
- Excludes or limits revenue from institutional loans, income-share agreements, and certain scholarships unless they meet detailed criteria for independence and proper application.
- Institutions failing the rule become ineligible for federal aid for at least two fiscal years and must demonstrate compliance for two additional years to regain eligibility.
- Mandates annual reports to Congress detailing each proprietary institution’s federal versus non-federal revenue percentages.
- Repeals the prior 90/10 rule and related provisions in Section 487, with conforming amendments to other sections of the Act.
Significant Changes to Existing Law
- Replaces the existing 90/10 rule (allowing up to 90 percent federal revenue) with a stricter 85/15 rule that broadens the definition of federal funds and restricts what counts toward the non-federal share.
- Introduces detailed rules for alternative financing arrangements and presumptions about how federal funds are applied to student charges.
- Strengthens eligibility penalties and reporting requirements beyond the prior framework.
Potential Impacts
- Government agencies: Increases administrative burden on the Department of Education for compliance reviews, audits, and annual congressional reporting.
- Citizens: May reduce federal funding access for some for-profit schools, potentially affecting student enrollment options or prompting institutions to seek more private revenue.
- International relations: No direct effects identified.
Main Stakeholders Affected
- Proprietary (for-profit) colleges and universities.
- Students enrolled in or considering enrollment at these institutions.
- Taxpayers funding federal student aid programs.
- The U.S. Department of Education and congressional authorizing committees.
Notable Legal, Constitutional, or Political Implications The bill operates within Congress’s authority to set conditions on federal education funding and does not raise apparent constitutional concerns. It represents a policy shift toward tighter regulation of for-profit higher education, potentially increasing litigation risk if institutions challenge eligibility determinations or revenue calculations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-06-17: Referred to the House Committee on Education and Workforce.
- 2025-06-17: Introduced in House
- 2025-06-17: Introduced in House
Bill Versions
- Protecting Our Students and Taxpayers Act of 2025 — issued 2025-06-17 — PDF (14 pages)