Education Accountability & Workforce Opportunity Act

Prepared by John Dady – citizensagainsttyranny.net – citizensagainsttyranny1776@gmail.com

## SECTION 1 — Full Bill Outline

### Title I — Findings and Purpose

**Sec. 101. Findings**

Congress finds the following:

1. Rising tuition costs and unchecked student debt have burdened millions of American households and taxpayers.

2. Many degree programs deliver poor or no return on investment, leaving graduates under-employed and unable to repay their student loans.

3. Institutions currently face little or no financial consequence when their programs fail students, shifting the entire loss to borrowers and taxpayers.

4. Transparent reporting of program-level outcomes is essential for students and families to make informed choices.

5. Skilled-trades and technical programs remain under-funded despite strong workforce demand and offer a more affordable path to upward mobility.

**Sec. 102. Purpose**

It is the purpose of this Act to hold degree-granting institutions financially accountable for poor outcomes, improve transparency, and expand workforce-relevant skilled-trades programs to provide affordable paths to upward mobility.

### Title II — Institutional Accountability and Risk-Sharing

**Sec. 201. Mandatory Outcome Accountability**

**(a) Risk-Sharing Mandate.**—A degree-granting institution shall be financially responsible for **50% of the principal balance of federal student loans** for any graduate of a program who fails to achieve 'gainful employment' within three (3) years of graduation, provided that the graduate has actively sought and remained available for work throughout that period, including registering with state or federal job-placement services and accepting reasonable interviews or offers consistent with the field of study.

**(b) Definition of Gainful Employment.**—For the purposes of this Title, a graduate shall be deemed to have **failed to achieve 'gainful employment'** within three (3) years of graduation if, for a period of twelve (12) consecutive months during the three-year post-graduation period, they meet **both** of the following criteria:

1. **Income Standard:** The graduate's gross annual income is less than **250% of the most recently published Federal Poverty Guidelines (FPG)** for a one-person household, as defined by the Department of Health and Human Services (HHS).

2. **Debt-to-Income Standard:** The graduate's required annual student loan payments (principal and interest) for all federal student loans exceed **8% of their gross annual income.**

**(c) Exception.**—The risk-sharing mandate under subsection (a) shall not apply if the institution demonstrates, by a preponderance of the evidence, that the graduate failed to actively seek and remain available for work throughout the period in question. The **minimum objective metrics** for defining "actively sought and remained available for work" shall require, for any week of unemployment within the three-year post-graduation period, the graduate to meet **all** of the following verifiable standards:

1. **Application Threshold:** The graduate must have conducted and documented **not fewer than four (4) verifiable job-search activities per week**, which must include, but are not limited to, submitting a completed application, participating in a documented interview, contacting an employer, attending a job fair, or participating in re-employment services.

2. **Registration and Availability:** The graduate must remain registered with appropriate job-placement services and must not have refused **any offer of employment** for a position that is considered suitable work, consistent with the field of study.

3. **Documentation:** The graduate must retain and produce, upon request by the Department of Education, a written or digital log documenting the date, method, and outcome of each job-search activity.

**(d) Debt-to-Earnings Cap.**—Federal aid is stripped from programs that consistently exceed the Department of Education’s defined Debt-to-Earnings threshold.

**(e) Transparency.**—All programs must publicly report their median Debt-to-Earnings ratios and job-placement outcomes annually.

### Title III — Endowment Accountability Tax

**Sec. 301. Endowment Tax**

An annual excise tax of **1%** is imposed on the net value of private university endowments exceeding **$500 million**, with all revenue dedicated to Pell Grants and workforce-training scholarships.

### Title IV — Accreditation Reform

**Sec. 401. Accreditation Competition**

Regional accreditation monopolies are abolished; the Secretary of Education shall recognize competency-based and outcome-focused accreditors that meet quality and accountability standards to encourage innovative, lower-cost education models.

### Title V — Skilled-Trades Investment

**Sec. 501. National Trades & Certification Mandate**

**(a) Mandatory Trades Funding.**—Community colleges and state university systems receiving federal funds shall dedicate at least **15%** of all new federal grants and capital-improvement funds toward nationally certified skilled-trades programs.

**(b) Mandatory Enrollment Capacity.**—Institutions must maintain an enrollment capacity in these nationally certified trades programs equivalent to a minimum of **15%** of total undergraduate capacity.

**(c) Uniform Certification Standard.**—A **Federal Office of National Trades Standards (ONTS)** is established to create nationwide, portable certification standards for core skilled trades.

**(d) Accelerated Programs.**—Certification programs must be designed for completion within two academic years.

### Title VI — Enforcement and Statutory Authority

Institutions that refuse or fail to implement risk-sharing (Title II) or comply with Debt-to-Earnings standards lose access to **all federal Title IV student-aid funds.**

Constitutional authority derives from the **Spending Clause** (Art. I, § 8, cl. 1) and longstanding federal precedent allowing conditions on federal higher-education funds.

See 20 U.S.C. § 1094 & § 1099c for statutory authority to terminate Title IV eligibility.

Enforcement actions are subject to review under the Administrative Procedure Act.

## SECTION 2 — Statutory Summary

**Purpose:** To hold degree-granting institutions financially accountable for low-return programs, improve program transparency, and mandate investment in skilled-trades capacity.

**Key Provisions:**

* **Risk-Sharing Mandate:** Colleges must repay **50% of the federal loan principal** if a graduate fails to achieve 'gainful employment' within three (3) years.

* *Gainful Employment Defined:* Failure occurs if the graduate's income is **below 250% of the Federal Poverty Guidelines (FPG)** **AND** their student loan payments exceed **8% of their gross annual income.**

* *Institution Defense:* The mandate does not apply if the graduate failed to meet the minimum threshold of **four (4) verifiable job-search activities per week.**

* **Debt-to-Earnings Cap:** The Secretary of Education must cut off federal student aid to programs that consistently exceed the defined Debt-to-Earnings threshold.

* **Transparency:** Institutions must publicly report their median Debt-to-Earnings ratios and job-placement outcomes annually on a program-by-program basis.

* **Endowment Tax:** Imposes an annual **1% excise tax** on the net value of private university endowments exceeding **$500 million**, with all revenue dedicated to Pell Grants and workforce-training scholarships.

* **Accreditation Reform:** Abolishes regional accreditation monopolies and requires the Secretary to recognize competency-based and outcome-focused accreditors to encourage lower-cost education models.

* **Skilled-Trades Investment:** Mandates that state institutions dedicate at least **15% of all new federal grants** and capital funds toward nationally certified skilled-trades programs, and maintain an equivalent **15% minimum enrollment capacity** for these programs.

**Enforcement:** Non-compliant institutions (those refusing to implement risk-sharing or adhere to Debt-to-Earnings standards) lose eligibility for **all federal Title IV student-aid funds.**

**Authority:** Derived from the **Spending Clause** (Art. I, § 8, cl. 1); statutory authority for Title IV termination exists under 20 U.S.C. § 1094 & § 1099c; all enforcement actions are subject to review under the Administrative Procedure Act (APA).

## SECTION 3 — For the People Explainer

### Why This Matters

* **You're Trapped by Debt, Colleges Aren't:** Students and families have been trapped by skyrocketing tuition and mountains of debt, while many colleges face **zero consequences** for running programs that deliver poor results.

* **Taxpayers Foot the Bill:** When graduates can't repay their loans because their degree was worthless, **taxpayers end up paying the bill** for loans that should never have been issued.

* **The Skills Gap Hurts Your Wallet:** The massive shortage in skilled trades (plumbers, electricians, technicians) is driving up the cost of essential services and slowing down the economy.

### What This Bill Does for You

Action | Impact for Students, Graduates, and Taxpayers

:--- | :---

**Holds Colleges Financially Liable** | Colleges are forced to pay **50% of your loan principal** if their degree fails to provide you with a decent job and leaves you financially struggling (earning less than 250% of the poverty line AND having payments over 8% of your income).

**Protects You from Lazy Graduates** | This accountability only kicks in if you **actively sought work** (documented 4 job searches per week) and the college *still* failed you. It’s about holding the college accountable, not covering up for job apathy.

**Ends Federal Funding for Failed Programs** | We cut off federal student aid entirely for degree programs that consistently leave graduates with high debt and low earnings. If a program doesn't pay off, it loses taxpayer money.

**Adds Transparency** | You will be able to see a program's **true financial outcomes**—its median debt vs. income—**before** you take on a dollar of debt. No more blind borrowing.

**Invests in High-Demand Trades** | We mandate that state universities and community colleges dedicate a large portion (**15%**) of new funding to affordable, fast-track **skilled-trades programs**, filling the jobs the economy actually needs.

**Taxes Massive Endowments** | We impose a small **1% tax on private university endowments over $500 million** and dedicate *every dollar* generated directly to Pell Grants and workforce scholarships for those who need it most.

Bottom Line

This Act creates a system of real accountability for colleges, shifts the financial risk away from students and taxpayers, and ensures education dollars are spent on **real-world results** and upward mobility.