Burgess Owens

Ensuring Distance Education Act

This bill treats revenue from distance education programs as nonfederal revenue for purposes of the 90/10 rule.

Generally, the 90/10 rule requires a for-profit institution of higher education (IHE) to derive at least 10% of its revenue from sources other than federal financial aid. Under current Department of Education regulations, for-profit IHEs are prohibited from including revenue from distance education programs (including hybrid distance education programs) as nonfederal revenue that meets this 10% requirement. The bill removes the prohibition and allows for distance education programs to be counted as nonfederal revenue for purposes of the rule.

Reporting on Investments in Foreign Adversaries Act or the RIFA Act

This bill requires private institutions of higher education (IHEs) with specified assets or investments involving foreign countries or entities of concern to file annual investment disclosure reports. The bill applies to a private IHE with (1) assets in excess of $6 billion, or (2) investments of concern in excess of $250 million.

Specifically, the bill requires such a private IHE to file a disclosure report with the Department of Education (ED) for a year in which the IHE purchases, sells, or holds one or more investments of concern. Investment of concern means any specified interest (e.g., stock or debt) with respect to a foreign country of concern (e.g., North Korea, China, Russia, or Iran) or a foreign entity of concern (e.g., a foreign entity that is designated as a foreign terrorist organization).

Additionally, the bill requires ED to establish and maintain a publicly available and searchable database with these disclosure reports.

The bill requires ED to investigate possible violations of this bill and outlines the various penalties for each violation. Penalties may include losing eligibility for federal student financial aid.