USDE Concludes Second Negotiated Rulemaking Without Consensus on All Proposed Regulatory Changes

U.S. Department of Education

The U.S. Department of Education completed the third negotiating session of its second negotiated rulemaking without consensus on all of the issues on its agenda presented for discussion. Negotiated rulemaking is the process used by USDE for stakeholder representatives to meet with USDE to negotiate the terms of a proposed administrative rule or regulatory change.

Negotiators were representatives from a variety of stakeholders affected by the proposed rule changes. They agreed on the following proposals:

• The 90/10 Rule

• Ability to Benefit

The committee did not reach consensus on the following proposals:

• Financial Responsibility

• For-profit to non-profit conversions

• Gainful Employment

• Change in Ownership

• Certification Procedures

Since there was no consensus USDE is free to draft the new regulations, using the input from the sessions, as it deems appropriate. In the past, USDE has tried to honor the agreements reached but is not bound to hold to those agreements. The Department will now draft a notice of proposed rulemaking which it will publish in the Federal Register inviting public comment. Following public comment, USDE will read the comments and draft a final rule, working to publish the final rule by November 1, 2022, so that it will take effect on July 1, 2023.

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