H.R. 7892

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7892 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
2d Session
H. R. 7892

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

June 11, 2026

Received; read twice and referred to the Committee on Health, 
Education, Labor, and Pensions

_______________________________________________________________________

AN ACT

To amend the Higher Education Act of 1965 to require to the Secretary 
of Education to use an identity fraud detection system to review each 
FAFSA to determine whether the FAFSA presents a reasonable suspicion of 
identity fraud.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``No Aid for Ghost Students Act of 
2026''.

SEC. 2. IDENTITY FRAUD DETECTION SYSTEM.

(a) Identity Fraud Detection System.--Section 483 of the Higher 
Education Act of 1965 (20 U.S.C. 1090) is amended by adding at the end 
the following:
``(e) Identity Fraud Detection System.--
``(1) In general.--In addition to, or in conjunction with, 
other verification processes carried out under this title, the 
Secretary shall--
``(A) use an identity fraud detection system to 
screen and assess each application submitted under this 
section on or after October 1, 2026, to determine 
whether the application presents a reasonable suspicion 
of identity fraud based on one or more indicators 
associated with suspected fraud risk; and
``(B) carry out notifications in accordance with 
paragraph (2).
``(2) Notification of reasonable suspicion of identity 
fraud.--If the Secretary determines that an application 
submitted under this section presents a reasonable suspicion of 
identity fraud, the Secretary shall--
``(A) provide the applicant with notice--
``(i) of such determination;
``(ii) that the information described in 
subparagraph (B) will be transmitted to each 
institution of higher education designated by 
the applicant in the application; and
``(iii) that the applicant is subject to 
additional identity verification requirements 
in accordance with section 487(a)(15)(B); and
``(B) transmit to each institution designated by 
the applicant in the application, a notice--
``(i) that such application presents a 
reasonable suspicion of identity fraud; and
``(ii) that the applicant is subject to 
additional identity verification requirements 
to be carried out by the institution in 
accordance with section 487(a)(15)(B), before 
the institution may disburse Federal financial 
aid under this title to such applicant.
``(3) Congressional notices and report.--
``(A) Notices.--The Secretary shall submit to the 
authorizing committees--
``(i) not later than November 1, 2026, a 
written description of the identity fraud 
detection system required under this 
subsection; and
``(ii) not later than 30 days after 
implementing any substantial change to such 
system, a written description and rationale for 
such change.
``(B) Annual evaluation and report.--Not later than 
October 1, 2027, and annually thereafter, the Secretary 
shall conduct an evaluation of the effectiveness of the 
identity fraud detection system carried out under this 
subsection, and submit to the authorizing committees a 
report on the use and effectiveness of such system.
``(4) Rule of construction.--Nothing in this subsection 
shall be construed to prohibit the Secretary from meeting the 
requirements of paragraph (1), in whole or in part, through a 
capability or system used by the Secretary on or before the 
date of enactment of the No Aid for Ghost Students Act of 
2026.''.
(b) Additional Verification Requirements.--
(1) Amendments.--Section 487(a)(15) of the Higher Education 
Act of 1965 (20 U.S.C. 1094(a)(15)) is amended--
(A) by striking ``(15) The institution 
acknowledges'' and inserting ``(15)(A) The institution 
acknowledges''; and
(B) by adding at the end the following new 
subparagraph:
``(B) Beginning on October 1, 2026, the institution will 
not disburse Federal financial aid under this title to an 
applicant with an application under section 483 that presents a 
reasonable suspicion of identity fraud under section 483(e), 
unless the institution, directly or through a contracted third-
party service provider and in accordance with procedures 
established by the Secretary--
``(i) before the disbursement of such aid--
``(I) determines that a reasonable 
suspicion of identity fraud is not 
present by confirming the identity of 
such applicant using--
``(aa) in-person identity 
verification;
``(bb) live, synchronous 
audiovisual identity 
verification;
``(cc) identity 
verification compliant with 
National Institute of Standards 
and Technology Identity 
Assurance Level 2 (NIST IAL2), 
or an equivalent successor;
``(dd) any additional 
identity verification method 
approved by the Secretary that 
provides a level of identity 
assurance that is equal to or 
greater than the level of 
assurance provided by an 
identify verification method 
described in items (aa) through 
(cc); or
``(ee) a combination of two 
or more of the verification 
methods described in items (aa) 
through (dd); and
``(II) notifies the Secretary that 
the identity of the applicant has been 
verified; and
``(ii) maintains a record of such identity 
verification.''.
(2) Guidelines on institutional verification procedures.--
Not later than October 1, 2026, the Secretary of Education 
shall establish guidelines with respect to identity 
verification procedures to be carried out by institutions of 
higher education under subparagraph (B) of section 487(a)(15) 
of the Higher Education Act of 1965 (20 U.S.C. 1094(a)(15)), as 
amended by paragraph (1).

SEC. 3. PROGRAM REVIEW PRIORITY CATEGORY.

Section 498A(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 
1099c-1(a)(2)) is amended--
(1) in subparagraph (E), by striking ``and'' at the end;
(2) by redesignating subparagraph (F) as subparagraph (G); 
and
(3) by inserting after subparagraph (E) the following:
``(F) institutions that have demonstrated a pattern 
of disbursing, on or after October 1, 2026, Federal 
financial aid under this title for an award year to 
students with an application under section 483 for such 
award year that presented a reasonable suspicion of 
identity fraud under section 483(e), except that the 
Secretary shall exclude any institution that 
demonstrates to the Secretary that the institution is 
in compliance with the requirements of section 
487(a)(15)(B); and''.

Passed the House of Representatives June 10, 2026.

Attest:

KEVIN F. MCCUMBER,

Clerk.