119-hr-3938119th CongressWALLET

CLASS Act of 2025

Sponsored By: Representative Waters, Maxine [D-CA-43]

Introduced

Summary

Bans mandatory arbitration for student enrollment contracts and preserves students' ability to sue institutions in court. It prevents colleges and universities from enforcing arbitration clauses or contractual limits on jury trials, venue, or choice of law in enrollment agreements.

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  • Students: Students can bring individual or collective claims in court over enrollment-related disputes instead of being forced into arbitration.
  • Institutions: Colleges and universities may no longer require or enforce arbitration clauses in any enrollment agreement that creates a financial commitment for enrollment.
  • Timing and scope: The rule covers any enrollment agreement as defined under the Higher Education Act and takes effect one year after the law is enacted.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Students keep right to sue colleges

If enacted, this bill would bar the federal arbitration law from applying to enrollment agreements between students and colleges. An enrollment agreement means any contract where a student makes a financial commitment to enroll. Colleges also would be barred from making students give up their right to sue in court. That includes limits on choice of law, jury trials, and venue. These changes would take effect one year after enactment.

Sponsors & CoSponsors

Sponsor

Waters, Maxine [D-CA-43]

CA • D

Cosponsors

  • Rep. Davis, Danny K. [D-IL-7]

    IL • D

    Sponsored 6/11/2025

  • Rep. Tlaib, Rashida [D-MI-12]

    MI • D

    Sponsored 6/11/2025

  • Rep. Garcia, Robert [D-CA-42]

    CA • D

    Sponsored 6/11/2025

  • Rep. Johnson, Henry C. "Hank" [D-GA-4]

    GA • D

    Sponsored 6/11/2025

  • Rep. Schakowsky, Janice D. [D-IL-9]

    IL • D

    Sponsored 6/11/2025

  • Rep. García, Jesús G. "Chuy" [D-IL-4]

    IL • D

    Sponsored 6/11/2025

  • Rep. Fields, Cleo [D-LA-6]

    LA • D

    Sponsored 6/11/2025

  • Rep. Ramirez, Delia C. [D-IL-3]

    IL • D

    Sponsored 6/11/2025

  • Rep. Bonamici, Suzanne [D-OR-1]

    OR • D

    Sponsored 6/11/2025

  • Rep. Jayapal, Pramila [D-WA-7]

    WA • D

    Sponsored 6/11/2025

  • Rep. Krishnamoorthi, Raja [D-IL-8]

    IL • D

    Sponsored 6/11/2025

  • Rep. Lee, Summer L. [D-PA-12]

    PA • D

    Sponsored 6/24/2025

Roll Call Votes

No roll call votes available for this bill.

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