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S 4348

PARITY Act

119th Congress Introduced by Jim Banks and 1 co-sponsor

The PARITY Act would repeal the 90/10 rule, removing the required minimum non-Title IV revenue for for-profit proprietary schools.

Introduced in Senate
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WeVote Research Nonpartisan
Bill Summary · S 4348

PARITY Act (S. 4348, 119th Congress)

Purpose and intent

  • The bill is titled the Promoting Access and Revenue Integrity Through Institutional Transparency Act (PARITY Act).
  • Its primary aim is to repeal the 90/10 rule for for-profit proprietary schools under Title IV of the Higher Education Act of 1965, thereby removing or altering the federal regulatory constraint tied to 90/10 revenue requirements for such institutions.

Key provisions and changes

  • Section 487 of the Higher Education Act of 1965 (20 U.S.C. 1094) is amended as follows:
    • Repeal of paragraph (24) in subsection (a). This paragraph is part of the statutory criteria relevant to federal oversight of institutions receiving Title IV funding.
    • Repeal of subsection (d) of Section 487.
  • In effect, the 90/10 rule (the requirement that proprietary schools derive at least 10 percent of revenue from sources other than Title IV federal student aid) would be repealed or removed from law, relieving proprietary schools from compliance with that specific provision.

Who/what would be affected

  • Proprietary (for-profit) postsecondary schools that participate in the federal Title IV student aid programs would be directly affected, as the 90/10 rule governs their reliance on Title IV funds.
  • The reform alters the regulatory framework under which these institutions operate, potentially changing compliance burdens and revenue-structure incentives for such schools.

Procedural and timeline aspects

  • Status: Introduced in the Senate on April 20, 2026, by Senator Rick Scott, with co-sponsors Senator Jim Banks and Senator (implied) including in the text.
  • The bill was read twice and referred to the Senate Committee on Health, Education, Labor, and Pensions for consideration.
  • Action history indicates no further floor actions or amendments are shown in the provided material beyond referral.

Additional notes

  • The bill text provided is focused narrowly on removing the 90/10 rule provisions within Section 487 of the Higher Education Act; no other substantive changes to Title IV or related regulatory mechanisms are described in the excerpt.
  • The bill’s impact on student protections, borrower outcomes, program quality, and other accountability measures historically tied to the 90/10 rule would depend on subsequent legislative actions or alternative regulatory frameworks adopted in place of the repealed provisions.

Compiled from official sources — confirm details with the bill’s official record.

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