HouseH.R. 7892119th Congress

No Aid for Ghost Students Act of 2026

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7892 Reported in House (RH)]

<DOC>

                                                 Union Calendar No. 583
119th CONGRESS
  2d Session
                                H. R. 7892

                          [Report No. 119-669]

 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.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 12, 2026

  Mr. Owens introduced the following bill; which was referred to the 
                  Committee on Education and Workforce

                              May 26, 2026

 Additional sponsors: Mr. Kiley of California, Mr. Grothman, Ms. Foxx, 
                           and Mr. Obernolte

                              May 26, 2026

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on March 
                               12, 2026]

_______________________________________________________________________

                                 A BILL

 
 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 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).
                                                 Union Calendar No. 583

119th CONGRESS

  2d Session

                               H. R. 7892

                          [Report No. 119-669]

_______________________________________________________________________

                                 A BILL

 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.

_______________________________________________________________________

                              May 26, 2026

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed