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Bill > AB637

WI AB637

WI AB637
Funding sources for certain private postsecondary schools and granting rule-making authority.

summary

Introduced
11/07/2025
In Committee
11/07/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

This bill precludes certain private postsecondary schools, primarily for-profit schools, from enrolling Wisconsin students if more than 80 percent of their revenue is derived from federal student aid programs. Under current law, the Department of Safety and Professional Services regulates certain private postsecondary institutions, including private for-profit colleges (proprietary schools). Proprietary schools must obtain approval from DSPS before operating in this state and are subject to various operational requirements. Under federal law, to participate in federal student aid programs, a proprietary school must enter into an agreement that it will derive not less than 10 percent of its revenues from sources other than federal education assistance funds. A proprietary school that violates this agreement for two consecutive years is ineligible to receive federal student aid funds for at least two years thereafter. The bill incorporates into state law a provision similar to the federal provision, but with modification. Under the bill, a proprietary school may not enroll Wisconsin residents if less than 20 percent of the school’s annual revenue is derived from a source other than federal funds in two of the three preceding fiscal years. DSPS must promulgate rules to administer the prohibition.

AI Summary

This bill creates new regulations for private postsecondary schools (primarily for-profit colleges) operating in Wisconsin by establishing a revenue requirement that limits their dependence on federal student aid. Specifically, the bill prohibits such schools from enrolling Wisconsin residents if less than 20 percent of their annual revenue comes from sources other than federal funds during two out of three preceding fiscal years. The bill defines "annual revenue" as the school's revenue that can be calculated for federal compliance purposes, and "federal funds" as federal education assistance funds. The Department of Safety and Professional Services (DSPS) is required to develop rules to implement this prohibition. The new regulation will first take effect in the 2028-29 academic year, giving schools substantial time to adjust their financial structures. This legislation mirrors a federal requirement that aims to ensure proprietary schools have a diverse revenue stream and are not overly reliant on federal student aid programs, which could potentially indicate lower educational quality or financial sustainability.

Committee Categories

Education

Sponsors (18)

Last Action

Representative Vining added as a coauthor (on 12/17/2025)
(1 Companion Bills)

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