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Protecting Students and Taxpayers: New Funding Rules for For-Profit Colleges

This act changes how for-profit colleges are funded to better protect students and taxpayer money. It introduces new requirements for how much revenue these schools must get from sources other than federal student aid, aiming to reduce abuse and ensure better educational quality.
Key points
For-profit colleges must now get at least 15% of their revenue from sources other than federal education assistance funds, meaning they cannot rely solely on government money.
The act clarifies which types of revenue count towards this 15%, excluding, for example, most loans made by the schools themselves to students.
If a school fails to meet these requirements, it will lose eligibility for federal student aid for at least two years, protecting students from low-quality institutions.
New rules are introduced for scholarships and income share agreements to ensure transparency and fairness for students.
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Status: Introduced
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Additional Information
Print number: 119_HR_4026
Sponsor: Rep. Cohen, Steve [D-TN-9]
Process start date: 2025-06-17
System Note: Lustra is free, publicly auditable civic infrastructure — full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source—always verify them if you can.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

POST Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_4026.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-06-17.

What are the main provisions?

Key points include:

  • For-profit colleges must now get at least 15% of their revenue from sources other than federal education assistance funds, meaning they cannot rely solely on government money.
  • The act clarifies which types of revenue count towards this 15%, excluding, for example, most loans made by the schools themselves to students.
  • If a school fails to meet these requirements, it will lose eligibility for federal student aid for at least two years, protecting students from low-quality institutions.
  • New rules are introduced for scholarships and income share agreements to ensure transparency and fairness for students.
What is the specific legal status?

The current status is Introduced.

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 Rep. Cohen, Steve [D-TN-9].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Education and Workforce.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

What is the impact of this bill?

We don't know—that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Education