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New Higher Education Authorization System: Pell Grants Based on Student Outcomes.

This bill establishes an alternative, outcomes-based system for authorizing innovative educational providers to access federal Pell Grant funding. Authorization depends on meeting high performance metrics related to student success, such as employment rates, income growth, and completion rates, rather than traditional accreditation. This system introduces financial accountability for authorizers and ensures students are not charged extra fees if the institution receives partial grant funding.
Key points
Federal Pell Grants become available for innovative educational programs, including short courses or skill bundles, provided they meet strict outcome thresholds.
Institutions must meet or exceed the 60th percentile in performance metrics (including job placement and debt repayment) to maintain authorization.
Innovation Authorizers must share financial risk, covering at least 25% of defaulted federal student loans from the entities they authorize.
An institution's access to full Pell Grant funding is tiered based on its proven track record of student success (a "pay for performance" model).
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Additional Information
Print number: 118_S_4138
Sponsor: Sen. Bennet, Michael F. [D-CO]
Process start date: 2024-04-17
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OFFICIAL LEGAL TITLE

Higher Education Innovation Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_4138.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-04-17.

What are the main provisions?

Key points include:

  • Federal Pell Grants become available for innovative educational programs, including short courses or skill bundles, provided they meet strict outcome thresholds.
  • Institutions must meet or exceed the 60th percentile in performance metrics (including job placement and debt repayment) to maintain authorization.
  • Innovation Authorizers must share financial risk, covering at least 25% of defaulted federal student loans from the entities they authorize.
  • An institution's access to full Pell Grant funding is tiered based on its proven track record of student success (a "pay for performance" model).
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Bennet, Michael F. [D-CO].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Education