Education Accountability & Workforce Opportunity Act

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

(Includes: Full Bill • Statutory Summary • “For the People” Explainer)

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

(c) 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 is imposed on the net value of private university endowments exceeding $1 billion, 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 one academic year.

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: Hold institutions financially accountable for low‑return programs; improve transparency; expand skilled‑trades capacity.

Key Provisions:

• Risk‑sharing: Colleges repay 50 % of federal loan principal if graduates fail to achieve gainful employment within 3 years, provided the graduate actively sought and remained available for work.

• Debt‑to‑Earnings Cap: Cuts off federal aid to high‑debt/low‑income programs.

• Transparency: Annual public reporting of Debt‑to‑Earnings ratios and job‑placement outcomes.

• Endowment Tax: 1 % excise tax on private endowments > $1 Billion dedicated to Pell Grants and workforce scholarships.

• Accreditation Reform: Opens market to outcome‑based accreditors to lower costs.

• Skilled‑Trades Investment: At least 15 % of new federal funding and capital projects dedicated to skilled‑trades programs.

Enforcement: Non‑compliant institutions lose eligibility for all federal Title IV student‑aid funds.

Authority: Spending Clause & 20 U.S.C. § 1094 & § 1099c for Title IV enforcement; conditions subject to APA review.

SECTION 3 — For the People Explainer

Why This Matters

• Students and families have been trapped by rising tuition and debt while many colleges face no consequences for poor results.

• Taxpayers end up paying the bill for loans that should never have been issued.

• The skilled‑trades shortage hurts the economy and drives up costs for essential services.

What This Bill Does for You

• Holds colleges financially accountable if their programs leave graduates jobless and burdened with debt.

• Ends federal funding for programs that consistently leave graduates worse off.

• Adds transparency so families can see a program’s true outcomes before taking on debt.

• Redirects resources into high‑demand, affordable skilled‑trades programs — often completed in a year or less.

Bottom Line

• Protects students, taxpayers, and the workforce by aligning education with real‑world results.