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WI SB630

WI SB630
Funding sources for certain private postsecondary schools and granting rule-making authority.


summary

Introduced
11/14/2025
In Committee
11/14/2025
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. LRB-5162/1 ARG:emw 2025 - 2026 Legislature SENATE BILL 630

AI Summary

This bill establishes new regulations for private postsecondary schools, specifically targeting for-profit institutions, by prohibiting them from enrolling Wisconsin students if they derive more than 80 percent of their annual revenue from federal education assistance funds. Under the proposed law, a school must generate at least 20 percent of its annual revenue from sources other than federal funds in two out of three of its most recent fiscal years to maintain eligibility to enroll Wisconsin residents. The bill defines "annual revenue" as the school's revenue that can be calculated for compliance with federal regulations, and "federal funds" as education assistance funds as referenced in federal law. The Department of Safety and Professional Services (DSPS) is tasked with creating rules to implement this prohibition. The new regulations will first take effect in the 2028-29 academic year, giving schools time to adjust their funding models. This legislation aims to ensure that private postsecondary schools have a more diversified revenue stream and are not overly dependent on federal student aid programs, which could potentially indicate financial instability or predatory practices.

Committee Categories

Education

Sponsors (14)

Last Action

Representative Vining added as a cosponsor (on 12/17/2025)

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