119-s-4531119th CongressWALLET

Student Aid Fraud Oversight and Accountability Act of 2026

Sponsored By: Senator Husted, Jon [R-OH]

Introduced

Summary

Prioritizes program reviews of colleges that disburse federal aid tied to suspected FAFSA identity fraud. The bill would add a new identification rule and a new priority category in the Higher Education Act so the Department of Education can flag institutions that, on or after October 1, 2026, disbursed Title IV aid to applicants whose FAFSA presented a reasonable suspicion of identity fraud.

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  • Students: Applicants whose FAFSA is flagged for suspected identity fraud would be the basis for identifying institutions that disbursed their aid.
  • Institutions: Colleges and other Title IV institutions that disburse aid to flagged applicants after October 1, 2026 would be placed in a new priority category for program reviews.
  • Verification exceptions: Schools that verify identity in person or by live, synchronous audiovisual methods and keep documentation before disbursing aid would be excluded from identification.
  • Oversight use: The Secretary's identity-fraud detection system would inform program reviews, audits, investigations, and other oversight, but an identification would not by itself be treated as a finding that the institution failed to meet Title IV requirements.

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Bill Overview

Analyzed Economic Effects

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

Schools flagged for FAFSA identity fraud

This bill would require the Secretary of Education to identify each institution that, on or after October 1, 2026, disbursed Title IV federal student aid for an award year to any student whose FAFSA the Secretary's identity-fraud detection system reasonably suspected of identity fraud. A school would be excluded from identification if it shows it verified the student's identity before disbursing aid by in-person verification or live, synchronous audiovisual verification under procedures set by the Secretary, notified the Secretary, and kept a record of the verification. The Secretary would be able to use these identifications to inform program reviews, audits, investigations, and other Title IV oversight activities. Being on the list would not by itself mean the school failed to meet Title IV requirements.

Sponsors & CoSponsors

Sponsor

Husted, Jon [R-OH]

OH • R

Cosponsors

  • Sen. Cassidy, Bill [R-LA]

    LA • R

    Sponsored 5/14/2026

  • Sen. Tuberville, Tommy [R-AL]

    AL • R

    Sponsored 5/14/2026

Roll Call Votes

No roll call votes available for this bill.

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