College Financial Aid Clarity Act of 2025
Download PDFSponsored by
Rep. McClain, Lisa C. [R-MI-9]
ID: M001136
Bill's Journey to Becoming a Law
Track this bill's progress through the legislative process
Latest Action
Ordered to be Reported (Amended) by the Yeas and Nays: 23 - 10.
December 11, 2025
Introduced
đź“Ť Current Status
Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.
Committee Review
Floor Action
Passed House
Senate Review
Passed Congress
Presidential Action
Became Law
đź“š How does a bill become a law?
1. Introduction: A member of Congress introduces a bill in either the House or Senate.
2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.
3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.
4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.
5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.
6. Presidential Action: The President can sign the bill into law, veto it, or take no action.
7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!
Bill Summary
Another brilliant example of legislative theater, courtesy of the esteemed Mrs. McClain and her trusty sidekick, Mrs. Kim. The "College Financial Aid Clarity Act of 2025" - because what's more clarifying than adding another layer of bureaucratic red tape to an already Byzantine system?
Let's dissect this masterpiece:
**New regulations being created or modified:** Ah, the pièce de résistance! We're creating a whole new set of requirements for institutions of higher education to format financial aid offers. Because, clearly, the problem with our bloated student loan crisis is that the forms aren't pretty enough.
**Affected industries and sectors:** Higher education institutions, naturally. But let's not forget the real beneficiaries: the private lenders and scholarship-granting organizations who'll be "consulted" during the consumer testing process. I'm sure their input will be entirely altruistic and not at all influenced by self-interest.
**Compliance requirements and timelines:** Institutions have until July 1, 2029, to get their ducks in a row. Plenty of time for them to hire more administrators to deal with the added paperwork. And, of course, there's the obligatory "consumer testing" process, because what's more consumer-friendly than a bunch of bureaucrats deciding how to present information?
**Enforcement mechanisms and penalties:** Ah, the teeth of this bill! Institutions that fail to comply will... well, we're not quite sure yet. The Secretary of Education will figure it out later. I'm sure it'll be a sternly worded letter or something.
**Economic and operational impacts:** Let's see... more administrative costs for institutions, which will inevitably be passed on to students in the form of higher tuition fees. And, of course, the added complexity will create new opportunities for private lenders to "help" students navigate the system - for a fee, naturally.
Now, let's follow the money trail: Mrs. McClain and Mrs. Kim have received generous donations from... surprise! Private lenders and education-related PACs! The College Financial Aid Clarity Act of 2025 is just another symptom of the disease that plagues our legislative system: corruption, cowardice, stupidity, and greed.
Diagnosis: Terminal case of regulatory capture, with a healthy dose of bureaucratic bloat. Prognosis: More of the same - until we, as a society, decide to take a scalpel to this festering wound.
Related Topics
đź’° Campaign Finance Network
Rep. McClain, Lisa C. [R-MI-9]
Congress 119 • 2024 Election Cycle
No PAC contributions found
No committee contributions found
Cosponsors & Their Campaign Finance
This bill has 2 cosponsors. Below are their top campaign contributors.
Rep. Kim, Young [R-CA-40]
ID: K000397
Top Contributors
10
Rep. Norcross, Donald [D-NJ-1]
ID: N000188
Top Contributors
10
Donor Network - Rep. McClain, Lisa C. [R-MI-9]
Hub layout: Politicians in center, donors arranged by type in rings around them.
Showing 35 nodes and 36 connections
Total contributions: $123,820
Top Donors - Rep. McClain, Lisa C. [R-MI-9]
Showing top 25 donors by contribution amount
Project 2025 Policy Matches
This bill shows semantic similarity to the following sections of the Project 2025 policy document. Higher similarity scores indicate stronger thematic connections.
Introduction
— 341 — Department of Education market prices and signals to influence educational borrowing, introducing consumer-driven accountability into higher education. Pell grants should retain their current voucher-like structure. If Congress is unwilling to reform federal student aid, then the next Adminis- tration should consider the following reforms: l Switch to fair-value accounting from FCRA accounting, and l Consolidate all federal loan programs into one new program that 1. Utilizes income-driven repayment, 2. Includes no interest rate subsidies or loan forgiveness, 3. Includes annual and aggregate limits on borrowing, and 4. Requires “skin in the game” from colleges to help hold them accountable for loan repayment. The Biden Administration has mercilessly pillaged the student loan portfolio for crass political purposes without regard to the needs of current taxpayers or future students. This must never happen again. l As detailed in Section III, the next Administration should work with Congress to spin off federal student aid into a new government corporation with professional governance and management. NEW POLICY PRIORITIES FOR 2025 AND BEYOND New Legislation That Should Be Prioritized For nearly 250 years, Congress has incorporated public and private institutions, including banks, the District of Columbia’s city government, and other organiza- tions that federal officials deem to be conducting operations in the public interest. Such charters offer a certain status to organizations, often viewed as a “seal of approval” according to one Congressional Research Service report, which can help these organizations in their fundraising and other advocacy efforts. When the nation’s largest teacher association, the National Education Associ- ation (NEA), cites its federal charter, it lends the NEA a level of significance and suggests an effectiveness that is not supported by evidence. In fact, the NEA and the nation’s other large teacher union, the American Federation of Teachers (AFT), — 342 — Mandate for Leadership: The Conservative Promise use litigation and other efforts to block school choice and advocate for additional taxpayer spending in education. They also lobbied to keep schools closed during the pandemic. All of these positions run contrary to robust research evidence showing positive outcomes for students from education choice policies; there is no conclusive evidence that more taxpayer spending on schools improves student outcomes; and evidence finds that keeping schools closed to in-person learning resulted in negative emotional and academic outcomes for students. Furthermore, the union promotes radical racial and gender ideologies in schools that parents oppose according to nationally representative surveys. l Congress should rescind the National Education Association’s congressional charter and remove the false impression that federal taxpayers support the political activities of this special interest group. This move would not be unprecedented, as Congress has rescinded the federal charters of other organizations over the past century. The NEA is a demonstrably radical special interest group that overwhelmingly supports left-of-center policies and policymakers. l Members should conduct hearings to determine how much federal taxpayer money the NEA has used for radical causes favoring a single political party. Parental Rights in Education and Safeguarding Students l Federal officials should protect educators and students in jurisdictions under federal control from racial discrimination by reinforcing the Civil Rights Act of 1964 and prohibiting compelled speech. Specifically, no teacher or student in Washington, D.C., public schools, Bureau of Indian Education schools, or Department of Defense schools should be compelled to believe, profess, or adhere to any idea, but especially ideas that violate state and federal civil rights laws. By its very design, critical race theory has an “applied” dimension, as its found- ers state in their essays that define the theory. Those who subscribe to the theory believe that racism (in this case, treating individuals differently based on race) is appropriate—necessary, even—making the theory more than merely an analyti- cal tool to describe race in public and private life. The theory disrupts America’s Founding ideals of freedom and opportunity. So, when critical race theory is used as part of school activities such as mandatory affinity groups, teacher training programs in which educators are required to confess their privilege, or school
Introduction
— 341 — Department of Education market prices and signals to influence educational borrowing, introducing consumer-driven accountability into higher education. Pell grants should retain their current voucher-like structure. If Congress is unwilling to reform federal student aid, then the next Adminis- tration should consider the following reforms: l Switch to fair-value accounting from FCRA accounting, and l Consolidate all federal loan programs into one new program that 1. Utilizes income-driven repayment, 2. Includes no interest rate subsidies or loan forgiveness, 3. Includes annual and aggregate limits on borrowing, and 4. Requires “skin in the game” from colleges to help hold them accountable for loan repayment. The Biden Administration has mercilessly pillaged the student loan portfolio for crass political purposes without regard to the needs of current taxpayers or future students. This must never happen again. l As detailed in Section III, the next Administration should work with Congress to spin off federal student aid into a new government corporation with professional governance and management. NEW POLICY PRIORITIES FOR 2025 AND BEYOND New Legislation That Should Be Prioritized For nearly 250 years, Congress has incorporated public and private institutions, including banks, the District of Columbia’s city government, and other organiza- tions that federal officials deem to be conducting operations in the public interest. Such charters offer a certain status to organizations, often viewed as a “seal of approval” according to one Congressional Research Service report, which can help these organizations in their fundraising and other advocacy efforts. When the nation’s largest teacher association, the National Education Associ- ation (NEA), cites its federal charter, it lends the NEA a level of significance and suggests an effectiveness that is not supported by evidence. In fact, the NEA and the nation’s other large teacher union, the American Federation of Teachers (AFT),
Introduction
— 320 — Mandate for Leadership: The Conservative Promise The future of education freedom and reform in the states is bright and will shine brighter when regulations and red tape from Washington are eliminated. Federal money is inevitably accompanied by rules and regulations that keep the influx of funds from having much, if any, impact on student outcomes. It raises the cost of education without raising student achievement. To the extent that federal taxpayer dollars are used to fund education programs, those funds should be block- granted to states without strings, eliminating the need for many federal and state bureaucrats. Eventually, policymaking and funding should take place at the state and local level, closest to the affected families. Although student loans and grants should ultimately be restored to the private sector (or, at the very least, the federal government should revisit its role as a guarantor, rather than direct lender) federal postsecondary education investments should bolster economic growth, and recipient institutions should nourish academic freedom and embrace intellectual diversity. That has not, however, been the track record of federal higher education policy or of the many institutions of higher education that are hostile to free expression, open academic inquiry, and American exceptionalism. Federal post- secondary policy should be more than massive, inefficient, and open-ended subsidies to “traditional” colleges and universities. It should be rebalanced to focus far more on bolstering the workforce skills of Americans who have no interest in pursuing a four- year academic degree. It should reflect a fuller picture of learning after high school, placing apprenticeship programs of all types and career and technical education on an even playing field with degrees from colleges and universities. Rather than continuing to buttress a higher education establishment captured by woke “diversicrats” and a de facto monopoly enforced by the federal accreditation cartel, federal postsecondary education policy should prepare students for jobs in the dynamic economy, nurture institutional diversity, and expose schools to greater market forces.1 OVERVIEW For most of our history, the federal government played a minor role in education. Then, over a 14-month period beginning in 1964, Congress planted the seeds for what would become the U.S. Department of Education (ED or the department). In July of that year, President Lyndon B. Johnson signed into law the Civil Rights Act of 1964, after Congress reached a consensus that the mistreatment of black Americans was no longer tolerable and merited a federal response. In the case of the Elementary and Secondary Education Act of 1965 (ESEA)2 and the Higher Education Act of 1965 (HEA),3 Congress sought to improve educational outcomes for disadvantaged students by providing additional compensatory funding for low-income children and lower-income college students. Spending on ESEA and the HEA—part of Johnson’s “War on Poverty”—grew exponentially in the years that followed. By Fiscal Year 2022, ESEA programs received $27.7 billion in appropriations, in addition to $190 billion that came — 321 — Department of Education through the pandemic’s Elementary and Secondary Schools Emergency Relief (ESSER) Funds,4 which relied on ESEA formulas. The same year, the department spent more than $2 billion just to administer Title IV of the HEA, which authorizes federal student loans and Pell grants. It provided $22.5 billion in Pell grants, and it oversaw outlays of close to $100 billion in direct student loans. Since 1965, Congress has continued to layer on dozens of new laws and pro- grams as federal “solutions” to myriad education problems. In 1973, it passed the Rehabilitation Act,5 and, in 1975, the Individuals with Disabilities Education Act (IDEA)6 to address educational neglect of students with disabilities. In 2002, it cre- ated the Institute for Education Sciences to consolidate education data collection and fund research. Congress has also enacted a series of Carl D. Perkins Career and Technical Education Acts, including Perkins V in 2018.7 Congress could have, and once did, distribute management of federal education programs outside of a single department. But for those interested in expanding federal funding and influence in education, this unconsolidated approach was less than ideal, because a single, captive agency would allow them to promote their agenda more effectively across Administrations. Eventually, the National Educa- tion Association made a deal and backed the right presidential candidate— Jimmy Carter—who successfully lobbied for and delivered the Cabinet-level agency. When it was established in 1979—becoming operational in 1980—the agency was supposed to act as a “corralling” mechanism. Carter signed the Department of Education Organization Act8 into law in 1979, believing in part that it would reduce administrative costs and improve efficiency by housing most of the federal education programs that had proliferated in the wake of Johnson’s War on Poverty under one roof. It has had the opposite effect. Instead, special interest groups like the National Education Association (NEA), American Federation of Teachers (AFT), and the higher education lobby have leveraged the agency to continuously expand federal expenditures—a desirable funding stream from their vantage point because federal budgets are not constrained like state and local budgets that must be balanced each year. By FY 2022, the department’s discretionary and mandatory appropriation topped $80 billion, not including student loan outlays. Each of its programs has attendant federal strings and red tape. One recent example is the Biden Administration’s requirement that state educa- tion agencies and school districts submit “equity” plans as a condition of receiving COVID recovery ESSER funds in the American Rescue Plan (ARP).9 This exercise led to the hiring of numerous new government employees as the rules were pro- mulgated, plans were created after collecting public feedback, and those plans were eventually deemed satisfactory. The next Administration will need a plan to redistribute the various congres- sionally approved federal education programs across the government, eliminate
Showing 3 of 4 policy matches
About These Correlations
Policy matches are calculated using semantic similarity between bill summaries and Project 2025 policy text. A score of 60% or higher indicates meaningful thematic overlap. This does not imply direct causation or intent, but highlights areas where legislation aligns with Project 2025 policy objectives.