Higher Education Innovation Act

The Higher Education Innovation Act creates an alternative authorization system for higher education institutions, allowing "innovation authorizers" to approve institutions based on performance metrics rather than traditional accreditation. Institutions must meet specific standards related to student learning, completion rates, and affordability to receive Federal Pell Grant funding. The bill establishes a "pay for performance" system where institutions may need to cover upfront costs that can be reimbursed if they meet performance targets over time. The program is set to expire 5 years after enactment, with institutions required to renew authorization every 5 years. This system aims to ensure institutions meet quality standards before receiving federal funding.