NDC in Stars & Stripes: Congress’ Regulatory Rollback Is a Win for Veterans

After years of a regulatory framework that stifled higher education competition and student choice, the 119th Congress’ Reconciliation Budget bill could finally repeal two of the Department of Education’s most burdensome regulations—the 90/10 and Gainful Employment rules, NDC Executive Director Bob Carey writes in Stars & Stripes.

The House’s reconciliation bill includes language developed by the House Education and Workforce Committee that would repeal the 90/10 and Gainful Employment rules—a killer regulatory combo leveraged by the Department of Education to target career colleges and online programs.

Unfortunately, the Senate’s version of the bill leaves these regulations in place, which would reinforce the status quo. Senate leaders should keep the House’s language and repeal these biased rules while the window of opportunity is open, Mr. Carey writes.

The 90/10 and Gainful Employment rules—which apply exclusively to non-traditional educational institutions—were never intended to protect student interests. They were designed as a cudgel to drive career colleges and programs that offer an alternative to the higher ed cartel out of business to protect the traditional market dominance of public and private non-profit schools. In other words, it’s the federal government picking educational winners and losers by regulatory fiat.

The 90/10 Rule’s mandate that online program revenue cannot be counted toward schools’ non-federal funding was an error, Mr. Carey notes. It was not discussed in the context of the 90/10 Rule during the negotiated rulemaking hearing, but somehow it found its way into the regulation’s preamble and was adopted as doctrine by the Education Department.

Congressman Burgess Owens (R-UT) introduced legislation this year to correct the 90/10 preamble and “level the playing field” for colleges and universities to compete.

Education Secretary Linda McMahon can correct these “contorted regulatory gymnastics.” And fortunately, there appears to be the will to do so. In a recent memo Secretary McMahon noted “millions of young Americans are trapped in failing schools” and pledged to “eliminate unnecessary bureaucracy” so colleges and students can thrive.

“After years of vindictive regulation and double standards,” Mr. Carey writes, “we owe it to our military and veterans — and all students — to restore a regulatory framework that fosters choice, competition and innovation.”

Read the full op-ed here.

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