This bill limits the Department of Education’s power to make new rules or actions for federal student aid if they are large and would cost the government more. If a draft rule would raise the government’s subsidy cost, the department must stop working on it. The department also may not issue a proposed or final rule, or take an executive action, if the change is economically significant and would increase subsidy cost. “Economically significant” means a likely yearly effect of at least $100 million, or a major impact on the economy, jobs, or governments. These limits apply after the law takes effect and are in addition to other required cost reviews.

Key points:

• Who is affected: The Department of Education and its rules for federal student aid programs.
• What changes: No moving forward on draft rules that increase subsidy cost; no issuing proposed/final rules or executive actions that are economically significant and increase subsidy cost.
• When: These restrictions start after the law is enacted.