Lawsuit filed to stop Biden’s rollback of the 150% Rule.

Career Education Colleges and Universities (CECU)

June 3, 2024

Lawsuit filed to stop Biden’s rollback of the 150% Rule.

On Friday, May 31, Cortiva Institute School of Beauty, Health and Wellness joined The Coalition of Career Schools in filing a federal lawsuit challenging the Department of Education’s “Bare Minimum Rule,” which replaced the former 150% Rule. The complaint was filed in the Northern District of Texas and can be found here. The motion and brief in support of a delay in implementation of the rule is here. The Biden regulations are scheduled to go into effect on July 1, unless the lawsuit is successful in delaying the implementation.

Gainful Employment programs were previously eligible to offer Title IV aid provided they did not exceed 150% of the minimum number of clock hours required for the occupation for which the program prepares the student in the state the institution is located. Under the new Biden regulations, programs would be ineligible for Title IV if they exceed the state minimum threshold. CECU members can read our detailed summary of the regulations here.

We will keep members updated as this lawsuit progresses. As always, please do not hesitate to reach out to us with any questions you may have.

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