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To amend the Higher Education Act of 1965 to provide that non-Federal revenue generated through certain distance education programs may be counted purposes of the non-Federal revenue requirements applicable to proprietary institutions of higher education (commonly known as the "90/10 rule").

2/11/2025, 9:05 AM

Summary of Bill HR 1174

Bill 119 hr 1174, also known as the "90/10 rule amendment," aims to make changes to the Higher Education Act of 1965 in order to allow non-Federal revenue generated through certain distance education programs to be counted towards the non-Federal revenue requirements for proprietary institutions of higher education.

The current "90/10 rule" requires that at least 10% of a proprietary institution's revenue comes from non-Federal sources. This bill seeks to include revenue generated from distance education programs in this calculation, which would provide more flexibility for these institutions to meet the requirements.

The purpose of this amendment is to address concerns that the current rule may disproportionately impact proprietary institutions that offer distance education programs. By allowing revenue from these programs to be counted towards the non-Federal revenue requirements, the bill aims to level the playing field for all types of institutions of higher education. Overall, the amendment to the Higher Education Act proposed in Bill 119 hr 1174 seeks to modernize the 90/10 rule and ensure that proprietary institutions offering distance education programs are not unfairly penalized.

Congressional Summary of HR 1174

Ensuring Distance Education Act

This bill treats revenue from distance education programs as nonfederal revenue for purposes of the 90/10 rule.

Generally, the 90/10 rule requires a for-profit institution of higher education (IHE) to derive at least 10% of its revenue from sources other than federal financial aid. Under current Department of Education regulations, for-profit IHEs are prohibited from including revenue from distance education programs (including hybrid distance education programs) as nonfederal revenue that meets this 10% requirement. The bill removes the prohibition and allows for distance education programs to be counted as nonfederal revenue for purposes of the rule.

Current Status of Bill HR 1174

Bill HR 1174 is currently in the status of Bill Introduced since February 10, 2025. Bill HR 1174 was introduced during Congress 119 and was introduced to the House on February 10, 2025.  Bill HR 1174's most recent activity was Referred to the House Committee on Education and Workforce. as of February 10, 2025

Bipartisan Support of Bill HR 1174

Total Number of Sponsors
1
Democrat Sponsors
0
Republican Sponsors
1
Unaffiliated Sponsors
0
Total Number of Cosponsors
0
Democrat Cosponsors
0
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill HR 1174

Primary Policy Focus

Alternate Title(s) of Bill HR 1174

To amend the Higher Education Act of 1965 to provide that non-Federal revenue generated through certain distance education programs may be counted purposes of the non-Federal revenue requirements applicable to proprietary institutions of higher education (commonly known as the "90/10 rule").
To amend the Higher Education Act of 1965 to provide that non-Federal revenue generated through certain distance education programs may be counted purposes of the non-Federal revenue requirements applicable to proprietary institutions of higher education (commonly known as the "90/10 rule").

Comments

Zechariah West profile image

Zechariah West

663

1 year ago

Not sure how this bill will impact me, but it sounds fishy. #politics #confused

Sponsors and Cosponsors of HR 1174

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