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Various provisions of the Department’s regulations regarding the eligibility of faith-based entities to participate in the Department’s higher education and student aid programs, and the eligibility of students to participate in student aid programs and obtain certain benefits under those programs, unnecessarily restrict participation by religious entities. For example, some provisions may be overly broad in their prohibition of activities or services that relate to sectarian instruction or religious worship. Other provisions may be overly broad in prohibiting the benefits a borrower may receive based on faith-based activity. The Department is proposing to review and amend, through negotiated rulemaking, such regulations in order to be consistent with current law, and to reduce or eliminate unnecessary burdens and restrictions on religious entities and activities.

Statement of Need:

Rulemaking is necessary in light of the recent United States Supreme Court decision in Trinity Lutheran Church of Columbia, Inc. v. Comer, 137 S. Ct. 2012 (2017), and the October 6, 2017, Memorandum for All Executive Agencies issued by the Attorney General of the United States pursuant to Executive Order No. 13798.

Summary of the Legal Basis:

The Department has the authority to establish a negotiated rulemaking committee with the purpose of creating, amending or rescinding regulations in the Code of Federal Regulations. 

Alternatives:

These are identified through the negotiated rulemaking process and presented in the notice of proposed rulemaking.

Anticipated Costs and Benefits:

These are identified through the negotiated rulemaking process and presented in the notice of proposed rulemaking.

Risks:

These are identified through the negotiated rulemaking process and presented in the notice of proposed rulemaking.