PARITY Act
- Bill Number
- S. 4348
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Education
- Status
- Introduced
- Latest Action
- 2026-04-20: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Last Updated
- 2026-06-10T11:03:26Z
AI-Generated Summary
Purpose
The PARITY Act (S. 4348) aims to repeal the "90/10 rule" for proprietary (for-profit) schools under Title IV of the Higher Education Act of 1965. The 90/10 rule limits these schools to receiving no more than 90% of their revenue from federal student aid programs; exceeding this threshold makes them ineligible for such aid.
Key Provisions
- Short title: "Promoting Access and Revenue Integrity Through Institutional Transparency Act" or "PARITY Act."
- Amends Section 487 of the Higher Education Act of 1965 (20 U.S.C. 1094):
- Repeals paragraph (24) of subsection (a), which enforces the 90/10 revenue limit.
- Repeals subsection (d), which details the rule's requirements and penalties.
Significant Changes to Existing Law
- Completely eliminates the 90/10 revenue restriction for proprietary schools, allowing them to derive 100% of revenue from federal student aid without losing eligibility.
- No other changes to the Higher Education Act; the repeal is narrowly targeted at this specific rule.
Potential Impacts
- Government agencies: The Department of Education would no longer monitor or enforce the 90/10 rule for proprietary schools, potentially simplifying oversight but increasing federal aid spending if enrollment rises.
- Citizens/students: Could expand access to federal aid at for-profit schools, benefiting students seeking flexible programs, but might raise concerns about program quality or debt if schools prioritize aid revenue.
- No direct international relations impact.
Main Stakeholders Affected
- Proprietary (for-profit) schools: Gain flexibility in revenue sources, potentially boosting enrollment and operations.
- Students at proprietary schools: May have more options for aid-funded education.
- Federal government and taxpayers: Could face higher student aid expenditures without the revenue diversity safeguard.
- Non-profit and public colleges: Indirectly affected, as they face no such rule and may compete differently.
Notable Legal, Constitutional, or Political Implications
- Legal: Streamlines federal regulations on higher education funding; no challenges to constitutionality apparent, as it modifies existing statutory authority.
- Political: Introduced by Sen. Banks (R-IN) and referred to the Senate Committee on Health, Education, Labor, and Pensions; reflects debates on for-profit education oversight versus access, potentially sparking partisan divides on federal spending and school accountability.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-04-20: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 2026-04-20: Introduced in Senate
Bill Versions
- Promoting Access and Revenue Integrity Through Institutional Transparency Act — issued 2026-04-20 — PDF (2 pages)