Education (Student Financial Aid)

HR 1174, the Ensuring Distance Education Act, clarifies that revenue from distance education programs must count toward the 90/10 rule for for-profit colleges under the Higher Education Act. This rule limits how much a school can earn from federal student aid (capping it at 90% of total revenue). The bill explicitly adds that funds from programs offered online or partly online - regardless of location - must be included in this calculation. It directly affects for-profit colleges with distance education programs, requiring them to account for all such revenue when meeting the 90/10 compliance standard.

This bill (S 1148) directs the termination of the U.S. Department of Education by December 31, 2026. It would end the federal agency responsible for administering education programs, including student loans, school funding, and civil rights enforcement. The legislation directly affects the Department of Education and its staff, as well as the millions of students, schools, and institutions currently served by federal education programs. No additional mechanisms or replacement structures are specified in the bill text.

This bill would terminate the U.S. Department of Education by October 1, 2026, and transfer its education-related functions to other federal agencies. It would move K-12 education programs to the Office of Education within Health and Human Services, student loans to the Treasury Department, vocational education to the Labor Department, and civil rights enforcement to the Justice Department. The bill also specifies that certain education programs would be terminated after October 1, 2036, and includes provisions to ensure continuity of existing grants, contracts, and legal proceedings during the transition. It directly affects federal education programs, agencies handling education funding, and recipients of education-related grants and services.