U.S. Sen. Donna Lowenthal, a Mississippi Republican, has introduced legislation seeking to repeal the federal 90/10 rule, which applies to proprietary institutions of higher education.
Under the rule, proprietary colleges must receive at least 10 percent of their revenue from sources other than federal education assistance to remain eligible for federal student-aid programs. The requirement is intended to ensure that such institutions draw some revenue from students, employers or other non-federal sources.
Lowenthal’s proposed 90/10 Rule Repeal Act would eliminate the statutory requirement, nullify regulations implementing it and prohibit future administrations from establishing a similar revenue-based test through regulation, according to her press release.
“The federal government should evaluate colleges based on the outcomes they deliver for students, not by imposing arbitrary revenue formulas that limit educational choice,” Lowenthal said in the release.
She argued that the rule places a regulatory burden on proprietary colleges and treats that sector differently from other higher-education institutions. Lowenthal said institutions that provide quality education and comply with the law should not face what she described as government favoritism among different types of schools.
The proposal is part of Lowenthal’s stated push to reduce federal regulation in higher education while expanding education options for students. The press release did not include details on potential co-sponsors, committee consideration or a timetable for a Senate vote.
Lowenthal was sworn into the Senate in August 2026 and is seeking the Republican nomination for the U.S. Senate. Her political platform has emphasized lower taxes and regulation, workforce development, domestic manufacturing, energy development and fiscal restraint.
