This legislation significantly amends the Higher Education Act of 1965, primarily by overhauling the financial requirements for proprietary institutions of higher education. It introduces a new "85/15 rule," which mandates that these institutions must derive a minimum of 15 percent of their total revenues from sources other than federal education assistance funds. The bill aims to reduce the reliance of these institutions on federal funding and enhance accountability to protect students and taxpayers. The bill provides detailed criteria for calculating this non-federal revenue, requiring a cash basis of accounting. It specifies that eligible revenue includes tuition, fees, and institutional charges for Title IV eligible programs, certain educational activities, and federal job training contracts. The legislation also tightens definitions for what counts as non-federal revenue, notably by presuming federal funds cover institutional charges unless offset by unaffiliated grants or specific institutional scholarships. Furthermore, it largely excludes institutional loans and imposes strict conditions on the inclusion of income share agreements or other alternative financing arrangements to prevent manipulation. Proprietary institutions that fail to meet the 85/15 rule will face significant consequences, becoming ineligible for federal student aid for a minimum of two institutional fiscal years. To regain eligibility, they must demonstrate compliance for two subsequent fiscal years. Additionally, the Secretary of Education is mandated to submit annual reports to Congress, detailing each proprietary institution's federal and non-federal revenue percentages to ensure transparency and oversight.