This bill, titled the "Fairness in Higher Education Accreditation Act," amends the Higher Education Act of 1965 to revise the standards for federal recognition of accrediting agencies. It introduces a requirement for accrediting agencies to ensure that institutions promote free inquiry , defined as adherence to First Amendment principles for public institutions and institutional policies for private ones, with exemptions for certain religious institutions. A central provision prohibits accrediting agencies from imposing requirements or making recommendations concerning the race, color, sex, or national origin composition of an institution's students, faculty, or staff, including those in leadership roles or receiving honors. Furthermore, the bill stipulates that an accrediting agency can only be deemed reliable if it permits accredited institutions to adopt any lawful policy regarding these demographic factors, irrespective of the institution's specific mission. It explicitly forbids accrediting agencies from considering these demographic factors during the accreditation process. Institutions facing adverse accreditation actions due to an agency's violation of these new prohibitions are granted the right to pursue a civil action .