WASHINGTON – U.S. Senators Jerry Moran (R-Kan.) – ranking member of the Senate Veterans’ Affairs Committee (SVAC) – and Tom Carper’s (D-Del.) amendment to delay the start of the negotiated rulemaking process on closing the 90/10 loophole by six months passed the Senate unanimously during the amendment process of the FY2021 Budget Reconciliation.

“While the American Rescue plan closes the 90/10 loophole, we need to make sure we do it in the right way, make these changes in the correct way, and we need to ensure we put the policy back in the perspective of not politics but the right answer,” said Ranking Member Moran. “By providing a six-month delay before the start of a negotiated rulemaking process, Congress now has time to work together with our Veteran Service Organizations and the higher education community on a bipartisan plan to deliver reasonable and needed protections for veterans and taxpayers alike.”

Click HERE to watch Sen. Moran’s full remarks

Background:

Under current law, for-profit educational institutions must receive at least 10 percent of their revenue from non-federal sources. The 90/10 loophole is a gap in federal law that allows for-profit educational institutions to count Department of Veteran Affairs (VA) and Department of Defense (DOD) education funds, like the Post-9/11 GI Bill and Tuition Assistance (TA), as non-federal funds. This loophole has incentivized for-profit educational institutions to use aggressive recruitment tactics and deceptive marketing to enroll servicemembers, veterans and other GI beneficiaries.

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