GOP Lawmakers Move to Scrap Federal Rule Critics Say Unfairly Targets Career Schools

FIRST ON THE DAILY SIGNAL—Rep. Mark Harris, R-N.C., is set to introduce a bill to repeal a federal rule skewing higher education funding. Currently, career and technical schools are being singled out while traditional public and nonprofit colleges and universities are exempt.

“Washington should not pick winners and losers in higher education,” Harris told the Daily Signal. “Career schools give students the opportunity to gain practical skills, pursue in-demand jobs, and choose the education path that best fits their goals,” he continued.

The Promoting Access and Revenue Integrity Through Institutional Transparency (PARITY) Act would repeal the 90/10 rule in the Higher Education Act. The federal rule only applies to proprietary, or for-profit, colleges and career-training institutions.

Currently, they are required to receive at least 10 percent of their revenue from nonfederal sources, while the other 90 percent can come from federal student aid programs. Large universities and colleges such as the University of North Carolina, the College of Charleston, and Liberty University do not have to limit where their funding comes from.

“In North Carolina and across the country, these workforce-focused institutions help prepare students for the jobs our communities depend on. By repealing the outdated 90/10 rule, the PARITY Act ends a double standard that singles out career schools and ensures every institution is treated fairly,” Harris said.

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According to Harris, a member of the House Education and Workforce Committee, this bill will modernize policy, ensure fairness, and support students.

“Education is not a one-size-fits-all model,” Sen. Jim Banks, R-Ind., said in support. Harris’ PARITY Act is a House companion bill to Banks’ legislation, which was introduced in April.

“Currently, the 90/10 rule singles out vocational and career schools, while letting other colleges play by a different set of standards. This is wrong, and it’s time to level the playing field. Thank you to Rep. Harris for joining me in this bicameral effort,” Banks continued.

The rule repeal comes after Congress passed the One Big Beautiful Bill, which established a universal earnings and return-on-investment framework tied to Title IV eligibility by applying accountability standards across school types. According to Harris and Banks, this made the 90/10 rule redundant, outdated, and out of step with where policy now sits.

The House-passed version of the One Big Beautiful Bill even included a full repeal of the 90/10 rule, but it was later stripped out in the Senate version that became law.

Through the PARITY Act, schools would be judged by students’ success after graduation rather than the percentage of revenue that comes from federal aid.