U.S. Department of Education Finalizes Rule to Reform, Strengthen, and Modernize Higher Education Accreditation

Today, the U.S. Department of Education (the Department) finalized a landmark rule to reform, strengthen, and modernize America's higher education quality assurance system, marking the most significant overhaul of the federal recognition system in decades. The final rule is designed to strengthen quality assurance and improve affordability in higher education by prioritizing student outcomes, reducing regulatory burdens, promoting innovation and intellectual diversity, and increasing competition among accrediting agencies.

For too long, the nation's accreditation system has been dominated by a small number of accrediting agencies that serve as gatekeepers to more than $100 billion in annual federal student aid and professional licensure. Rather than driving continuous improvement and student success, this concentrated system has insulated accreditors from competition, increased administrative costs, contributed to unnecessary credential inflation, and encouraged colleges and universities to focus on ideological and procedural requirements that do little to improve educational quality. American students deserve an accreditation system that prioritizes outcomes, including timely graduation, successful employment, and strong earnings, while fostering innovation, accountability, and affordability.

"For too long, accreditors have effectively served as a cartel to protect their interests, rather than the educational value that institutions of higher education are expected to deliver for students," said Under Secretary of Education Nicholas Kent. "These reforms will refocus accreditation on what matters most: student achievement, educational value, and academic excellence. The final rule creates a more competitive and transparent accreditation system while ensuring that institutions remain accountable for delivering meaningful outcomes for American students and families."

Developed through the negotiated rulemaking process that brought together accrediting agencies, students, veterans, state officials, taxpayers, and more, the final rule advances President Trump's vision to reform the antiquated accreditation system. The final rule also builds on a series of actions by the Administration to reform and strengthen America's higher education accreditation system, expand opportunity, and ensure accreditors prioritize student outcomes.

Key Reforms in the Accreditation, Innovation, and Modernization (AIM) Final Rule:

• Increasing Competition: The rule lowers unnecessary barriers for new accrediting agencies seeking federal recognition and increases flexibility for institutions and programs to select accreditors that best align with their missions. By encouraging new entrants and reducing barriers to institutional mobility, the rule promotes greater competition and innovation throughout the accreditation system.

• Strengthening Student Outcomes and Accountability: The final rule shifts the focus of accreditation towards assessing meaningful student outcomes, including measures of student achievement, completion, and post-completion success.

• Improving Transfer of Credit: The final rule establishes new expectations related to transfer of credit policies to help students complete their education more efficiently and affordably. These changes are intended to reduce unnecessary barriers that force students to repeat coursework, increase costs, and extend time to completion.

• Reducing Costs: The final rule streamlines federal requirements for accrediting agencies, institutions, and programs while maintaining appropriate safeguards for quality assurance. These changes are expected to reduce administrative burden and allow institutions and programs to devote greater resources to student success and innovation.

• Encouraging Innovation: The final rule supports innovative educational models and gives institutions greater flexibility to develop programs that meet evolving workforce and student needs. The rule is designed to foster an accreditation environment that rewards continuous improvement, responsiveness, and educational excellence.

• Intellectual Diversity: The final rule directs accrediting agencies to evaluate policies at institutions that prioritize intellectual diversity and the free exchange of ideas at colleges and universities, ensuring that students are exposed to a range of viewpoints.

• Conflict of Interest: The final rule helps eliminate conflicts of interest between accrediting agencies and affiliated trade associations. The strengthening of these requirements will help prevent unnecessary credential inflation, rising costs, and reduce undue influence over entry into certain professions.