H.R. 4026 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Education and Workforce, Jun 17, 2025
What this bill does
In plain words · AI-written from the official summaryStricter revenue rule for for-profit colleges
For-profit colleges currently have to get at least 10% of their money from sources other than federal student aid. This bill would raise that requirement to 15%. It also changes how these colleges calculate their revenue for this test and makes the penalties tougher: a college that fails to meet the new 15% requirement would lose its eligibility for federal student aid programs for at least two years, though it could regain eligibility by meeting the rule for two straight years.
How it affects you
If you're considering attending a for-profit college, this could affect your options. Colleges that can't meet the higher revenue requirement might have to make changes to stay eligible for federal student aid programs, which could impact their operations or offerings. The bill aims to ensure these institutions don't rely too heavily on taxpayer-funded student aid.
Read the official summary (Introduced in House, Jun 17, 2025)
Protecting Our Students and Taxpayers Act of 2025 or the POST Act of 2025
This bill requires proprietary (i.e., for-profit) institutions of higher education (IHEs) to derive a larger portion of their revenues from nonfederal sources by replacing the existing 90/10 rule with an 85/15 rule.
Specifically, the bill requires a proprietary IHE to derive at least 15% of its revenue from sources other than federal education assistance funds. (Currently, a proprietary IHE must derive at least 10% of its revenue from sources other than federal education assistance funds.)
Additionally, the bill specifies how revenue must be calculated for purposes of the 85/15 rule. (Currently, the Higher Education Act of 1965 and accompanying regulatory provisions specify how revenue must be calculated for purposes of the 90/10 rule.)
Finally, the bill makes a proprietary IHE that fails to meet the 85/15 rule's requirements for a fiscal year ineligible to participate in federal student aid programs for at least two institutional fiscal years. However, the proprietary IHE may regain eligibility if it complies with all eligibility and certification requirements for at least two institutional fiscal years. (Currently, if a proprietary IHE fails to meet the 90/10 rule's requirement in a single year, then its certification to participate in federal student aid programs becomes provisional for two institutional fiscal years. Further, if a proprietary IHE fails to meet the rule's requirements in two consecutive years, then it loses its eligibility to participate in these programs for at least two institutional fiscal years.)
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 4026
A BILL
POST Act of 2025
Sponsor: Rep. Steve Cohen (D-TN-9) · Introduced Jun 17, 2025 · Education · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Jun 17, 2025: “Referred to the House Committee on Education and Workforce.”