House GOP Seeks to Roll Back Protections on GI Bill, Alarming Veterans Advocates

House Republicans are encountering significant backlash from veterans organizations following their decision to repeal regulations that restrict for-profit colleges from classifying GI Bill and military education benefits as private funding. Advocates caution that this change could leave veterans vulnerable to predatory recruitment practices and financial exploitation.

On Tuesday, the House Education and Workforce Committee cast a party-line vote to proceed with a comprehensive budget bill that proposes $330 billion in education cuts over the next ten years. Recent provisions include repealing the 2021 regulation that effectively closed the "90/10 loophole." This rule was a crucial safeguard to protect student veterans from being exploited by for-profit educational institutions pursuing federal funding.

Colleges are required by current legislation to demonstrate that a minimum of 10% of their revenue is derived from non-federal sources in order to be eligible for federal student aid. Until three years ago, funds from the GI Bill and Defense Department Tuition Assistance were not included in that calculation, despite being taxpayer-funded. Critics argue that a significant loophole has enabled predatory institutions to aggressively target veterans, aiming to maximize federal funding despite offering minimal educational benefits.

During Tuesday's debate, Rep. Mark Takano (D-Calif.), the leading Democrat on the House Veterans’ Affairs Committee, characterized the repeal attempt as “an attack on oversight and accountability.” “It was essential to hold predatory for-profit institutions accountable to protect federal education benefits, as well as to safeguard the interests of taxpayers and students,” stated Takano.

Republican committee members have come forward to defend the repeal, asserting that it aims to alleviate regulatory burdens and enhance options available to veterans. “Instead of employing strict regulations to determine which institutions thrive and which do not, we ought to motivate all colleges to prioritize student achievement,” stated Rep. Burgess Owens (R-Utah).

Democratic lawmakers, alongside veterans groups, have raised concerns that this action could allow for-profit colleges to take advantage of veterans without restraint once again. Representative Suzanne Bonamici, a Democrat from Oregon, has leveled accusations against Republican leaders, claiming they are undermining essential consumer protections. “Certain institutions have been taking advantage of this situation to exploit student veterans,” she stated.

The Department of Veterans Affairs allocates over $8 billion each year in education benefits, a substantial source of funding that has consistently drawn intense recruitment efforts from for-profit educational institutions. A bipartisan agreement reached in 2021 effectively closed the loophole, mandating that military education benefits be recognized as federal funds in educational institutions' financial accounting.

Veterans organizations have expressed strong disapproval of the proposed rollback. Allison Jaslow, CEO of Iraq and Afghanistan Veterans of America, has described the measure as “costly and wrongheaded.” She stated, “The House of Representatives ought to feel ashamed for even considering the reinstatement of this policy, which poses a threat to the future of veterans’ education.”

A proposed amendment by the Democratic Party aimed at maintaining existing protections was defeated in a vote that followed strict party lines. The provision for repeal may yet be eliminated prior to the bill's presentation on the House floor or during discussions in the Senate. Veterans advocates are set to bring attention to the issue in the upcoming weeks, aiming to galvanize opposition.