Harris’s PARITY Act Garners Support from Coalition of Free-Market Organizations

WASHINGTON, D.C. - Congressman Mark Harris's (NC-08) Promoting Access and Revenue Integrity Through Institutional Transparency (PARITY) Act is gaining nationwide support from leading free-market organizations. Consumer Action for a Strong Economy (CASE) and a coalition of 12 other organizations and advocates recently sent a letter to House and Senate leaders urging passage of the legislation, which would repeal the 90/10 rule in the Higher Education Act. Under current law, the rule applies only to proprietary institutions and requires them to derive at least 10 percent of their revenue from non-federal sources.

"I'm grateful to CASE and the coalition of freedom-advocating organizations for their continued support and work to advance the PARITY Act in both chambers," said Congressman Harris. "The 90/10 rule unfairly singles out career and vocational schools while allowing other institutions to operate under a different set of standards. Students deserve the freedom to choose the education and career path that best fits their goals, and the PARITY Act would end this outdated double standard and ensure workforce-focused institutions can continue preparing the skilled professionals our communities and local economies depend on."

"We are in strong agreement that U.S. higher education policy should establish high, consistent performance standards and provide institutions the freedom to compete and innovate. We believe students should be able to access education options that best suit their learning and career goals," the coalition wrote in its letter to Senate HELP Committee Chairman Bill Cassidy and House Education and Workforce Committee Chairman Tim Walberg.

BACKGROUND:

• Title IV of the Higher Education Act authorizes federal student aid programs such as Pell Grants and Direct Loans. Institutions seeking to participate in these programs must meet a variety of eligibility requirements.
  
• The 90/10 rule is one of those eligibility requirements, but it applies only to proprietary institutions. Public and nonprofit institutions that also receive federal student aid are exempt.
  
• Through the Working Families Tax Cuts Act, Congress enacted a universal earnings and return-on-investment framework tied to Title IV eligibility that applies across institution types. This outcome-based accountability system makes the 90/10 rule redundant and outdated. In the House-passed version, House Republicans repealed 90/10 completely, but the repeal was not included in the Senate's version that became law.
  
• Senator Jim Banks (R-IN) is leading the Senate companion bill.

The full coalition letter can be found here.

The full text of the PARITY Act can be found here.

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