Sec. 5. Limit on administrative staff
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Section 487(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1094(a) ) is amended by adding at the end the following: The institution will agree to the limit on administrative staff requirements described in section 487C. . Part G of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1088 et seq. ) is amended by inserting after section 487B the following: In this section: The term administrative staff — means staff whose duties are primarily non-academic, non-instructional, and non-research; includes any institutional support staff, such as human resources, marketing, public relations, government relations, executive, administrative, or managerial staff; includes student services staff, such as diversity, equity, and inclusion staff; includes members of the academic administration, such as deans or provosts; and excludes grounds and maintenance staff, cafeteria staff, healthcare practitioners, campus security, religious clergy supported by the institution, and information technology support staff.
The term covered institution — means an institution that— charged an amount for undergraduate tuition and fees equal to or greater than $20,000 for an academic year after the date of enactment of the Student Loan Reform Act of 2022 , as determined by the Secretary on an annual basis; and for the first covered year, had 200 or more individuals serving as administrative staff; and excludes— an institution that is controlled by or that is closely identified with the tenets of a particular religious organization, as described in section 106.12(c) of title 34, Code of Federal Regulations (as in effect on the date of enactment of the Student Loan Reform Act of 2022 ); and an institution that is a medical school, as determined by the Secretary.
If an institution charges separate amounts of undergraduate tuition and fees and for in-State and out-of-State students, the amount of tuition and fees for the purposes of this paragraph shall be determined based on the amount that is an average of in-State and out-of-State undergraduate tuition and fees. The term first covered year , when used with respect to a covered institution, means the first academic year after the date of enactment of the Student Loan Reform Act of 2022 for which the institution's undergraduate tuition and fees exceeded $20,000, as determined in accordance with paragraph (2).
Beginning for the second academic year after the date of enactment of the Student Loan Reform Act of 2022 , a covered institution that participates in a program under this title shall be required— each year of a school’s participation in a program under this title, to reduce 10 percent of administrative staff at the institution, as compared to the total amount of such administrative staff at the institution in the first covered year, until the completion of the 5th year of such reductions, at which time the institution shall be required to demonstrate to the Secretary that the institution has reduced 50 percent of the administrative staff at the institution, as compared to the administrative staff at the institution in the first covered year; to ensure that after the completion of the 5-year period described in paragraph (1), the institution shall not increase the number of administrative staff at the institution by more than 1 percent annually for the remainder of the institution's participation in a program under this title; to eliminate administrative staff in the order specified under subsection (c); and to submit an annual certification to the Secretary asserting that the institution meets the requirements of paragraphs (1), (2), and (3).
An institution shall reduce administrative staff in the following order: First, reducing diversity, equity, and inclusion staff by not less than 95 percent. Second, reducing executive or management staff. Third, reducing human resources staff. .
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