S. 4428

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4428 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 4428

To amend the Higher Education Act of 1965 to require the use of an 
identity fraud detection system in reviewing Free Applications for 
Federal Student Aid.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

April 29, 2026

Mrs. Moody (for herself, Ms. Hassan, and Mr. Tuberville) introduced the 
following bill; which was read twice and referred to the Committee on 
Health, Education, Labor, and Pensions

_______________________________________________________________________

A BILL

To amend the Higher Education Act of 1965 to require the use of an 
identity fraud detection system in reviewing Free Applications for 
Federal Student Aid.

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 use an identity fraud detection system to 
review each application submitted under this section on or 
after October 1, 2026, to determine whether the application 
presents a reasonable suspicion of identity fraud. If the 
Secretary determines that such an application presents a 
reasonable suspicion of identity fraud, the Secretary shall 
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 and the basis 
for 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); 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 
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.''.
(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 whose application under section 483 presents a 
reasonable suspicion of identity fraud under section 483(e), 
unless the institution, in accordance with procedures 
established by the Secretary--
``(i) determines that a reasonable suspicion of 
identity fraud is not present by confirming the 
identity of such applicant using in-person verification 
or live, synchronous audiovisual verification;
``(ii) notifies the Secretary that the identity of 
the applicant has been verified; and
``(iii) 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).
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