National Association of Schools of Dance
Federal Update: Information Regarding the Accountability Measure in H.R.1. (the “One Big Beautiful Bill Act”)
Background and Overview Information
H.R.1. (colloquially known as the “One Big Beautiful Bill Act”) was signed into law on July 4, 2025 and contained numerous provisions regarding the field of Higher Education. NASD published an overview of these provisions on July 21, 2025 (available on the NASD website here). The provision which is likely to have the greatest impact on institutions and their curricular programs is the programmatic accountability framework outlined in the law. This framework will be explored in greater detail below.
It is important to note that H.R.1. does not delay or otherwise roll back the Gainful Employment and Financial Value Transparency regulations finalized in October of 2023. Although these regulations are being challenged in court, the United States Department of Education (USDE) has stated its intent to defend the 2023 regulations. As well, the topic of Gainful Employment will be included in the upcoming negotiated rulemaking sessions, at which USDE and appointed negotiators will develop regulations to implement the provisions of H.R.1.
There are many items in H.R.1. which will need to be defined and/or clarified prior to implementation. Negotiated rulemaking is the process through which USDE and other relevant constituencies develop regulations which will interpret the law, and under ideal circumstances, provide necessary definitions and clarification. Information regarding negotiated rulemaking can be found on the USDE website here. Institutions are encouraged to follow these negotiated rulemaking sessions closely and participate as necessary and appropriate. NASD will follow the process closely and provide salient information as appropriate.
Please note that any proposed rule will be published in the Federal Register after negotiated rulemaking sessions are completed. Proposed rules are subject to a public comment period, the procedures of which will be included in the announcement of the proposed rule.
The Accountability Framework Defined
At its core, the accountability framework is a program-level median earnings test. Stated another way, it is a comparison of the median earnings of federally aided “program completers” to the median earnings of “working adults.” There is nuance to the definition of “working adults” which will impact the way in which this comparison is accomplished. This nuance is discussed in greater detail below.
The law outlines consequences for individual curricular programs (“programs”) which fail the median earnings test. Programs which fail once in a three-year period must “promptly inform each student enrolled in the educational program of the eligible program’s low cohort median earnings and that the educational program is at risk of losing its eligibility” for direct federal loans. Programs which fail twice in a three-year period lose their eligibility to have federal direct loan dollars applied toward tuition for the program.
Programs will not lose eligibility unless there is an opportunity to appeal the results of the median earnings test. Should a program lose eligibility, the program can regain eligibility after 2 years have elapsed. Both the appeals process and the process to regain eligibility will be determined as part of the negotiated rulemaking process mentioned above.
It is important to note that institutions may continue to offer programs which lose their eligibility for federal direct loans. However, if students are unable to apply federal aid dollars to program tuition, it is reasonable to think that the program will become less attractive to prospective students as they must either pay tuition out of pocket or turn to the private loan market.
Programs Subject to the Accountability Framework
The accountability framework applies to:
- Undergraduate degree programs (associate degrees, baccalaureate degrees)
- Graduate degree programs
- Professional degree programs as defined in 34 CFR 668.2 at the time H.R.1. is implemented (July 1, 2026) (The current definition reads “A degree that signifies both completion of the academic requirements for beginning practice in a given profession and a level of professional skill beyond that normally required for a bachelor’s degree. Professional licensure is also generally required. Examples of a professional degree include but are not limited to Pharmacy (Pharm.D.), Dentistry (D.D.S. or D.M.D.), Veterinary Medicine (D.V.M.), Chiropractic (D.C. or D.C.M.), Law (L.L.B. or J.D.), Medicine (M.D.), Optometry (O.D.), Osteopathic Medicine (D.O.), Podiatry (D.P.M., D.P., or Pod.D.), and Theology (M.Div., or M.H.L.)”)
- Graduate certificate programs
Undergraduate and postbaccalaureate certificates do not appear to be subject to the accountability framework included in H.R.1. Keep in mind that the accountability framework does not replace Gainful Employment and Financial Value Transparency regulations, which may be re-negotiated to cover programs currently excluded from H.R.1.’s accountability framework.
Specifics of the Accountability Framework
Undergraduate Programs
For undergraduate programs, the median earnings of federally aided program completers are compared to the median earnings of working adults in the same state as the institution from which the program completers graduated. A “program completer” is defined as someone who 1) completed the program during the academic year four (4) years prior to the year of determination, 2) received any form of Title IV aid to fund their enrollment, 3) is not enrolled in an institution of higher education, and 4) is in the workforce. A “working adult” is defined as a person who, during the year of determination, 1) is aged twenty-five (25) to thirty-four (34), 2) is not enrolled in an institution of higher education, and 3) holds as their highest educational credential a high school diploma or its recognized equivalent. When carrying out the comparison, USDE will consider data for working adults in the state in which the institution is located, unless fewer than fifty percent (50%) of the institution’s enrolled students reside in the state in which the institution is located, in which case the median earnings data for working adults will be based on national data.
Graduate and Professional Programs (see definition of professional program above)
For graduate and professional programs, the median earnings of federally aided program completers are compared to the lowest median earnings of the following groups of working adults:
- Working adults in the state in which the institution is located, or
- Working adults in the same field of study (as determined by the Secretary of Education) in the state in which the institution is located, or
- Working adults in the same field of study (as determined by the Secretary of Education) across the country.
If fewer than fifty percent (50%) of the students enrolled in an institution reside in the state in which the institution is located, the median earnings of federally aided program completers are compared to the lowest median earnings of the following groups of working adults:
- Working adults across the country, or
- Working adults in the same field of study (as determined by the Secretary of Education) across the country.
The definition of a program completer in this context is the same as presented directly above under the “Undergraduate Programs” subheading. When making the earnings comparison for a graduate or professional program, a working adult is defined as 1) a person who, during the year of determination, is aged twenty-five (25) to thirty-four (34), 2) is not enrolled in an institution of higher education, and 3) holds as their highest educational credential a baccalaureate degree.
Differences in Calculations Based on Program Level
As can be seen in the information offered above, a key difference in the median earnings test is that for undergraduate programs, the median earnings of program completers are compared to the earnings of working adults without regard to the program completers’ field of study and the working adults’ field of employment. For graduate and professional programs, there is the possibility that the earnings of program completers will be compared to the earnings of working adults with consideration given to the completers’ field of study and the working adults’ field of employment, provided that the earnings data for this population of working adults is lower than the earnings data for the other populations defined in the law and mentioned above.
Small Cohorts
For programs with graduating cohorts under thirty (30) students, additional years of programmatic data will be aggregated to achieve a cohort of at least thirty (30) students. If this number cannot be reached, additional years of programmatic data will be aggregated from educational programs of equivalent length. In this scenario, the law does not specify that these educational programs will be from related fields of study, only that they will be equivalent in length to the program being measured.
Data Sources
Two main categories of data are necessary to run the median earnings test. The first is data regarding the earnings of program completers who received any form of federal aid. H.R.1. does not specify the source for this data, however it is reasonable to expect that data will be drawn from the Internal Revenue Service (IRS) or Social Security Administration (SSA).
The second is data regarding the median earnings of working adults. H.R.1. specifies that this data will be drawn from the Bureau of the Census.
The Road Ahead
As mentioned under the “Background and Overview Information” heading, USDE will commence negotiated rulemaking to implement the accountability framework and the other higher education provisions included in H.R.1. This will be accomplished through the work of two negotiated rulemaking committees:
- The Reimagining and Improving Student Education (RISE) Committee will meet from September 29–October 3, 2025 (Session 1) and from November 3–7, 2025 (Session 2). Should the federal government shut down on October 1 due to a lapse in appropriation, portions of Session 1 will be rescheduled to a later date. A list of negotiators and materials related to the negotiated rulemaking sessions can be found on the USDE website (scroll and select the committee from the collapsible list). This committee will negotiate issues related to student loan repayment, key among them the differentiation of graduate and professional programs (see “Programs Subject to the Accountability Framework” above).
- The Accountability in Higher Education and Access through Demand-Driven Workforce Pell (AHEAD) Committee will meet from December 8–12, 2025 (Session 1) and January 5–9, 2026 (Session 2). This committee will address issues related to, among others, the accountability framework described in this memorandum, and workforce Pell provisions found in H.R.1. Information regarding the work of this committee will be updated as it becomes available on the page linked immediately above.
By law, USDE must publish any final rule affecting Title IV programs by November 1 of any given year to become effective by July 1 of the following year. Based on the current negotiated rulemaking schedule, the earliest date that a rule could take effect is July 1, 2027. The remaining steps in the process at this time include the negotiated rulemaking sessions, publication of a proposed rule with a public comment period, time for USDE to review and respond to each public comment, and publication of a final rule.
It is important to keep in mind that the negotiated rulemaking process is the means by which USDE will clarify the specifics of how the statutory language of the accountability framework, some of which is imprecise, will be implemented. For instance, the law refers to the “year of determination,” which will be critically important because the “year of determination” will determine the graduating cohort (“program completers”) being measured. The law describes this cohort as those who completed their program “during the academic year that is 4 years before the year of the determination.” It is not immediately clear whether the “year of determination” will be considered as a calendar year or an academic year. This specific detail, while seemingly small, will have an impact on the graduating cohort subject to the test and on the amount of time those program completers will have spent in the workforce at the time their earnings are measured. This and other seemingly small details will need to have been defined and understood when the time for implementation arrives and can compound to affect implementation in a significant way.
NASD is aware that data sets and analytical tools exist and are being used to begin to plan for the changes that will come about after implementation of H.R.1.’s accountability measure. Institutions are strongly encouraged to critically evaluate the data used in their planning and ensure that, as best as possible, the data is current and accounts for the specifics of the accountability framework described in the law and summarized above.
NASD will continue to monitor this and other federal policy matters and will continue to provide salient information as necessary. Should any questions arise, please feel free to contact staff in the National Office for assistance.
NASD extends its best wishes as your semester continues.
Thank you.