“(h) Job placement rates—The Secretary shall establish a single definition of “job placement rate” for purposes of this Act that ensures consistent determinations across institutions and accrediting agencies regarding when students are placed in a job, to improve accuracy and minimize the opportunity for misleading or deceptive information.”
“(8) In the case of an institution that advertises or discloses job placement rates to prospective students or that is required to provide regular reporting of job placement rates to an accrediting agency, State authorizer, or other regulator, the institution will utilize the definition provided under section 481(h), and shall make available to prospective students, at or before the time of application—
“(A) the most recent available data concerning employment statistics, graduation statistics, the methodology used by the institution to calculate the job placement rate, and any other information necessary to substantiate the truthfulness of the advertisements or disclosures, and
“(B) relevant State licensing requirements of the State in which such institution is located for any job for which the course of instruction is designed to prepare such prospective students.”
“(7) Requirement to spend revenue
“(A) In general
“(i) 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.
“(ii) 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:
“(I) The total amount of spending on instruction for each institution.
“(II) 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).
“(III) Tuition and fee revenue (net of allowances and discounts) for each institution.
“(IV) 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).
“(V) Other relevant information the Secretary determines appropriate to include.
“(iii) 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—
“(I) not less than 30 percent; and
“(II) 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.
“(iv) 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.
“(B) Reporting from institutions—The Secretary shall use data from reports received and definitions established under section 132(l) to carry out this paragraph.
“(C) Warnings—The Secretary shall—
“(i) 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
“(ii) 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.
“(D) Regulations—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.”
“(C) The institution will not knowingly employ an individual who was an owner, director, officer, or employee who exercised substantial control over an institution that owes a liability.
“(D) The institution will not knowingly—
“(i) employ an individual who was—
“(I) an owner, director, officer, or employee of an institution that has—
“(aa) been found to have engaged in fraud, misuse of funds, or any material violation of law; or
“(bb) had its participation in programs under this title terminated, its certification revoked, or its application for certification or recertification for participation in such programs denied; or
“(II) a 10 percent-or-higher equity owner, director, officer, principal, or executive of, or contractor affiliated with, another institution in any year in which the other institution incurred a loss of Federal funds, as determined by the Secretary, in excess of 5 percent of the other institution’s annual funds under this title; or
“(ii) contract with any institution, third-party servicer, individual, agency, or organization that has, or whose owners, officers, or employees have—
“(I) been found to have engaged in fraud, misuse of funds, or any material violation of law;
“(II) had its participation in programs under this title terminated, its certification revoked, or its application for certification or recertification for participation in such programs denied; or
“(III) been a 10 percent-or-higher equity owner, director, officer, principal, executive of, or contractor affiliated with, another institution in any year in which the other institution incurred a loss of Federal funds, as determined by the Secretary, in excess of 5 percent of the other institution’s annual funds under this title.”
“(F) the limitation, suspension, or termination of the participation in any program under this title of an eligible institution, the recoupment of liabilities established pursuant to section 493E, or the imposition of a civil penalty under paragraph (3)(B) whenever the Secretary has determined, after reasonable notice and opportunity for hearing, that such institution has violated or failed to carry out any provision of this title, any regulation prescribed under this title, or any applicable special arrangement, agreement, or limitation, except that no period of suspension under this section shall exceed 60 days unless the institution and the Secretary agree to an extension or unless limitation or termination proceedings are initiated by the Secretary within that period of time.”
“493E. Recoupment
“(a) In general—The Secretary shall assess liabilities and seek to recoup funds provided under this title from an institution of higher education as a result of student loan discharges, findings from program reviews or compliance audits, or due to other forms of misconduct or noncompliance.
“(b) Waiver authority—The Secretary may waive some or all of the liabilities described in subsection (a) based on the individual circumstances of the institution.”
“(6) requires both an authorized representative of the institution and, if applicable, an authorized representative of any entity with ownership and substantial control over the institution to sign the program participation agreement, as described under section 487, for the institution, which shall ensure that the institution and its owner, if applicable, agree to repay any liabilities assessed against the institution by the Secretary.”