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S2107119th CongressWALLET

POST Act of 2025

Sponsored By: Senator Durbin, Richard J. [D-IL]

Introduced

Summary

Requires proprietary institutions to derive at least 15% of their revenue from non‑Federal sources to remain eligible for Federal student aid. This bill would create a cash‑basis 85/15 revenue test with detailed rules for what counts as Federal education assistance and other revenue and spell out penalties and reporting for noncompliance.

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  • Students and families: Students at proprietary institutions that fail the 85/15 test could lose access to Federal student aid at that school for at least two institutional fiscal years.
  • Proprietary institutions: Schools would calculate revenue on a cash basis, include specific items like tuition for Title IV‑eligible programs and certain on‑campus training, and may include some income‑share or alternative financing arrangements if the bill's disclosure rules are met. Failing the test requires the school to regain eligibility by meeting all certification rules for two institutional fiscal years after the ineligibility year.
  • Oversight and administration: The Secretary of Education must report to Congress by the third full award year after enactment and annually thereafter on each proprietary institution's share of revenues from Federal education assistance and from other sources. The bill also removes and renumbers certain Section 487 provisions and makes conforming edits across the Higher Education Act.

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Bill Overview

Analyzed Economic Effects

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

New 85/15 rule for for-profit colleges

If enacted, this bill would require for‑profit colleges that take Title IV aid to get at least 15% of their revenues from non‑Federal sources. Revenues would be defined on a cash basis and the bill sets detailed rules about counting tuition, scholarships, income‑share agreements, third‑party payments, and certain training contracts. A school that fails the 85/15 test for a fiscal year would be ineligible for Title IV funds for not less than two institutional fiscal years. To regain eligibility, the school would need to show compliance with certification rules for at least two institutional fiscal years after the ineligibility period. The Education Secretary would report each proprietary school's share of Federal and non‑Federal revenues starting the third full award year after enactment and then each year by July 1. The rule would take effect in the second full award year that begins after enactment.

Sponsors & CoSponsors

Sponsor

Durbin, Richard J. [D-IL]

IL • D

Cosponsors

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 6/18/2025

  • Sen. Hirono, Mazie K. [D-HI]

    HI • D

    Sponsored 6/18/2025

  • Sen. King, Angus S., Jr. [I-ME]

    ME • I

    Sponsored 6/18/2025

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 6/18/2025

  • Sen. Smith, Tina [D-MN]

    MN • D

    Sponsored 6/18/2025

  • Sen. Reed, Jack [D-RI]

    RI • D

    Sponsored 6/18/2025

  • Sen. Warren, Elizabeth [D-MA]

    MA • D

    Sponsored 6/18/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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