Committee on Education and Labor Republican Leader Virginia Foxx (R-NC) sent a letter to Department of Education (Department) Secretary Miguel Cardona regarding a proposed rule on comprehensive reviews of change in ownership. This rule will not fix the problems plaguing the control and conversion application process, but it does unfairly target proprietary institutions.
Rep. Foxx writes: “I feel very strongly that this is a complex issue that requires congressional review and robust discussions with a diverse group of stakeholders."
“I am disappointed the Department has once again chosen to profile institutions by their type, perpetuating the falsehood that proprietary institutions have nefarious goals. … The Department has not been vested with the power to override the Internal Revenue Service on what a non-profit is. Further, the Department should help institutions adhere to their legal requirements instead of presuming institutions seek to be out of compliance with the law," Rep. Foxx continues.
The letter concludes: “The change in ownership process needs reform, but in the absence of consensus by the negotiated rulemaking participants, there are many issues that are unresolved and require further discussion and debate. I urge the Department to pull this proposal and work with Congress to clarify the change in ownership provisions as we work to reauthorize the Higher Education Act."
Background: On July 28, 2022, the Department of Education published the Changes in Ownership provisions within the Institutional Eligibility, Student Assistance General Provisions, and Federal Pell Grant Program proposed rule. The comprehensive reviews of change in ownership have been plagued with delays. This proposed rule will not solve the problem.
Delays have been such a problem that Representatives Fred Keller (PA-12), Mariannette Miller-Meeks (IA-02), and Burgess Owens (UT-04) introduced H.R. 7031, the Change of Ownership and Conversion Improvement Act.
Read the full letter here.
