Incentive compensation

(a) Incentive compensation (1) Revocation Example 2–B of Question 2 of the Department of Education Dear Colleague Letter GEN–11–05 (March 17, 2011) is revoked. (2) Prohibition The Department of Education may not issue a regulation or subregulatory guidance that would establish an exception to the prohibition provided in section 487(a)(20) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)(20)). (b) Institutional compliance with the incentive compensation ban Section 487(a)(20) (20 U.S.C. 1094(a)(20)) is amended— (1) by striking The institution and inserting (A) The institution; and (2) by adding at the end the following: (B) Not later than 1 year after the date of enactment of the Preventing Risky Operations from Threatening the Education and Career Trajectories of Students Act of 2025, the institution shall attest to the Secretary that the institution is in compliance with subparagraph (A) notwithstanding the guidance provided in Department of Education Example 2–B of Question 2 of Dear Colleague Letter GEN–11–05 (March 17, 2011), in such form as required by the Secretary. If the institution is not in compliance as of the date of enactment of the Preventing Risky Operations from Threatening the Education and Career Trajectories of Students Act of 2025, the Secretary shall revoke the institution’s program participation agreement under this section. (C) Following the attestation required under subparagraph (B), the institution shall annually provide verification from an independent auditor that the institution is in compliance with subparagraph (A)..