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Congressional Research Service
Version 00 · Introduced in House · Mar 5, 2025
IHE Nonprofit Clarity Act
This bill specifies that an institution of higher education (IHE) that is recognized as a tax-exempt nonprofit organization under Section 501(c)(3) of the Internal Revenue Code of 1986 must also be deemed as a nonprofit IHE for purposes of the Higher Education Act of 1965. Thus, if the Internal Revenue Service recognizes an IHE as a tax-exempt nonprofit organization, then the Department of Education must also recognize the IHE as a nonprofit IHE.
People & committees
Rep. Biggs, Andy [R-AZ-5] · R–AZ
Legislative record
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Referred to the House Committee on Education and Workforce.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Feb 17, 2026. Consult Congress.gov for the current record.
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Analyze H.R.1852 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.
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PlainBill explanation
Based on the full Introduced in House · 2025-03-05 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
H.R. 1852 would require colleges and universities meeting two federal tax conditions to be treated as nonprofit institutions under the Higher Education Act of 1965. They must be organizations described in Internal Revenue Code section 501(c)(3) and tax-exempt under section 501(a). The proposed rule would override the preceding sentence of the existing definition.
Section 103(13) of the Higher Education Act of 1965 (20 U.S.C. 1003(13)) is amended by inserting at the end the following:
Notwithstanding the preceding sentence, in the case of an institution of higher education that is an organization described in section 501(c)(3) of the Internal Revenue Code and exempt from taxation under section 501(a) of such Code, such institution of higher education shall be deemed to be a nonprofit institution of higher education for purposes of this Act.
Section 1 would name the bill the “IHE Nonprofit Clarity Act.”
This Act may be cited as the IHE Nonprofit Clarity Act.
Section 2 would make nonprofit treatment mandatory for institutions meeting both tax conditions. Its stated scope is treatment under the Higher Education Act; the provision does not itself grant tax-exempt status.
Section 103(13) of the Higher Education Act of 1965 (20 U.S.C. 1003(13)) is amended by inserting at the end the following:
in the case of an institution of higher education that is an organization described in section 501(c)(3) of the Internal Revenue Code and exempt from taxation under section 501(a) of such Code, such institution of higher education shall be deemed to be a nonprofit institution of higher education for purposes of this Act.
The supplied actions snapshot, updated February 17, 2026, records introduction in the House and referral to the House Committee on Education and Workforce on March 5, 2025.
Source snapshot updated 2026-02-17T20:11:07Z. 2025-03-05: Referred to the House Committee on Education and Workforce. 2025-03-05: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-03-05. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy change attached to appropriations was identified in the complete supplied introduced text. This conclusion is limited to that version, not other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion does not establish the absence of earmarks in other versions or accompanying materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow preferential treatment beyond the bill’s generally defined intended coverage was identified in the complete supplied introduced text. Missing existing statutory context limits assessment of who would newly qualify; this conclusion does not extend to other versions or accompanying materials.
Full text preserved for this analysis. Legislative record snapshot: Feb 17, 2026. How PlainBill uses AI