H.R.4026 - Protecting Our Students and Taxpayers Act of 2025; POST Act of 2025 (119th Congress)
Summary
H.R. 4026, the Protecting Our Students and Taxpayers Act of 2025 (POST Act of 2025), aims to amend the Higher Education Act of 1965 to reform regulations concerning proprietary institutions of higher education. The bill focuses on the 85/15 rule, requiring these institutions to derive at least 15% of their revenue from sources other than federal education assistance funds. This is intended to reduce reliance on federal funding and ensure institutions have a vested interest in providing quality education.
Expected Effects
The likely effect of this bill is increased scrutiny and regulation of proprietary institutions, potentially leading to some institutions losing eligibility for federal student aid. This could result in some closures or consolidations of institutions that heavily rely on federal funds. Students may benefit from higher quality education at institutions that are financially stable and less reliant on federal funding.
Potential Benefits
- Reduced taxpayer burden: By limiting the reliance of proprietary institutions on federal funds, the bill aims to reduce the financial burden on taxpayers.
- Improved institutional accountability: The 85/15 rule incentivizes institutions to seek diverse revenue streams, promoting better financial management and accountability.
- Enhanced educational quality: Institutions that rely less on federal funding may be more focused on providing high-quality education to attract students and other funding sources.
- Protection against predatory practices: Stricter regulations can help prevent institutions from exploiting students and taxpayers through deceptive or misleading practices.
- Greater transparency: The reporting requirements in the bill will provide more transparency regarding the financial operations of proprietary institutions.
Most Benefited Areas:
Potential Disadvantages
- Potential for institutional closures: Some institutions may struggle to meet the 85/15 rule, leading to closures and displacement of students.
- Reduced access for some students: If institutions lose eligibility for federal aid, some students may find it more difficult to afford education.
- Increased tuition costs: Institutions may raise tuition costs to compensate for reduced federal funding, potentially making education less affordable.
- Administrative burden: The new regulations may create additional administrative burdens for institutions, increasing operating costs.
- Unintended consequences: The bill's provisions may have unintended consequences that negatively impact students or institutions.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to protect students and taxpayers by promoting responsible use of federal funds in higher education. Congress has the power to regulate commerce, including interstate commerce related to education, under Article I, Section 8. The bill does not appear to infringe on any specific constitutional rights or freedoms.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).