Sec. 203. Allocation of tuition and fee revenue by title IV institutions
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Section 498(c) ( 20 U.S.C. 1099c(c) ) is amended by inserting at the end the following: Beginning in academic year 2026–2027 and in each academic year thereafter through 2031–2032, each institution of higher education, in order to be eligible to participate in programs under this title, shall spend an amount equal to not less than 30 percent of their tuition and fee revenue (net of allowances and discounts) on instruction. Beginning in academic year 2027–2028 and in each academic year thereafter through 2030–2031, the Secretary shall assess the data described in subparagraph
(B)and issue a report that identifies the following: The total amount of spending on instruction for each institution. The total amount of spending on student services for each institution, excluding advertising, recruiting, marketing, compensation of executives or officers, lobbying, and other pre-enrollment expenses, consistent with section 132(l). Tuition and fee revenue (net of allowances and discounts) for each institution. The median increase in total spending on student services and instruction combined relative to spending on instruction relative to tuition and fee revenue (net of allowances and discounts). Other relevant information the Secretary determines appropriate to include. In academic year 2031–2032, the Secretary shall issue a regulation that establishes a minimum threshold percentage for institutional spending on instruction and student services combined that shall be— not less than 30 percent; and consistent with the median increase in total spending, as identified under clause (ii)(IV) averaged across academic years 2028–2029, 2029–2030, and 2030–2031. Beginning in academic year 2031–2032 and in each academic year thereafter, each institution of higher education, in order to be eligible to participate in programs under this title, shall spend an amount equal to not less than the threshold percentage established under clause
(iii)of their tuition and fee revenue (net of allowances and discounts) on instruction and student services combined. The Secretary shall use data from reports received and definitions established under section 132(l) to carry out this paragraph. The Secretary shall— establish through regulation appropriate thresholds for an institution of higher education that meets the spending requirements under clauses
(i)and
(iv)of subparagraph (A), but which is at risk of missing such thresholds; and require each institution of higher education that is at risk of missing such thresholds to provide warnings to prospective students and enrolled students of the institution regarding the low instructional spending. The Secretary shall issue such regulations as determined necessary by the Secretary to ensure compliance with the requirements of this paragraph, taking into consideration cost and convenience. .
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Sec. 203
Allocation of tuition and fee revenue by title IV institutions
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