H.R. 4054 — Accreditation Choice and Innovation Act

This section revises criteria under the Higher Education Act of 1965 for the Secretary of Education to recognize accrediting agencies or associations as reliable authorities on the quality of education or skills development (previously, education or training) offered by institutions of higher education, which is required for such institutions' eligibility to participate in federal student aid programs. (As background, these criteria ensure accreditors maintain standards for institutional quality, affecting access to over $150 billion in annual title IV aid for approximately 12 million students.) Specifically, the section— (1) revises paragraph (1) to require that accrediting agencies or associations (other than those described in paragraph (2)(D)) be State or national agencies or associations that demonstrate the ability to operate as institutional or programmatic accreditors within the State or nationally, as appropriate (previously, State, regional, or national agencies or associations demonstrating ability and experience to operate as accreditors within the State, region, or nationally); (2) in paragraph (2)— (A) removes "principal" from the purpose descriptions in subparagraph (A)(i) and (ii); (B) makes conforming changes to subparagraphs (B) and (C); and (C) adds subparagraph (D) to recognize as accreditors certain State-designated entities (e.g., industry-specific quality assurance entities) determined by the State to be reliable authorities on education or skills development quality; (3) revises paragraph (3)(A) to require accreditors described in paragraph (2)(A), (C), or (D) to be distinctly incorporated and administratively and financially independent from any related trade association or membership organization, including through board composition requirements (e.g., for boards of 6+ members, at least 2 public members, including one business representative, per 6 members), conflict-of-interest guidelines, separate dues, and independent budgets (previously, such independence required only for accreditors under paragraph (2)(A)(i)); strikes the "or" at the end of subparagraph (B); and strikes subparagraph (C); (4) in paragraph (4)— (A) specifies that accreditors respect institutions' stated religious missions in the manner described in subparagraph (B); (B) replaces subparagraph (B) to require accreditors to apply and enforce standards that base accreditation decisions on the accreditor's standards, without using an institution's religious mission-based policies as a negative factor in specified areas (e.g., recruitment and admissions, except requiring core curricula consistent with the mission); and (C) adds subparagraph (C) requiring accreditors to review and assess all instruction delivery models (e.g., distance education) without preference, including processes to verify student identity and participation in separated instructor-student models that are minimally burdensome; and (5) revises paragraph (5)(A) to require success with respect to student [text truncated in provision].

This section modifies provisions governing the National Advisory Committee on Institutional Quality and Integrity (NACIQI)—which advises the Secretary of Education on accrediting agencies and institutional eligibility for federal student aid under Title IV of the Higher Education Act—as follows: (1) adding a disqualification from membership for individuals with significant conflicts of interest (e.g., current regulators such as state authorizers that would require frequent recusal) and requiring any member who develops such a conflict during their term to vacate office; (2) standardizing all member terms to six years by striking the prior exception for initial terms; (3) striking the committee's sixth function of carrying out other advisory activities assigned by the Secretary; (4) requiring meeting agendas to list any recused members; (5) limiting the committee's annual report to a list of its functions; and (6) extending the committee's termination date to September 30, 2028 (from September 30, 2021).