This bill, titled the "Accreditation Reform and Enhanced Accountability Act of 2026," seeks to significantly improve the effectiveness of recognized accreditation as a prerequisite for Federal education funding. Its primary purpose is to increase the accountability of institutions of higher education for student outcomes, ensuring that accreditation processes are more rigorous and transparent. The legislation grants the Secretary of Education enhanced authority to establish criteria for accrediting agencies, specifically including standards related to student achievement . This new power allows the Secretary to define measures such as academic progression, loan repayment outcomes, post-college earnings, and debt relative to earnings, which accrediting agencies must then use to set baseline thresholds for institutions. The Secretary will also provide the necessary institutional or programmatic student achievement data to these agencies annually. Accrediting agencies will be required to conduct both standard and enhanced accreditation reviews . Enhanced reviews are triggered by serious events, including investigations, settlements, or adverse judgments against an institution for fraud, fiscal misconduct, or deceptive practices, or if the agency believes the institution is failing its program responsibilities. Following an enhanced review, institutions must make additional disclosures to students and the public, such as notification of an "accredited with risk" designation and available transfer options. The bill also mandates specific actions from accrediting agencies when certain events occur at an institution, such as a change in ownership from proprietary to non-profit, rapid changes in student population, or indicators of poor financial health. These actions can range from enhanced reviews to formal compliance assessments or the imposition of conditions on accreditation. Furthermore, the Secretary can impose fines on accrediting agencies that fail to notify about institutional misconduct or neglect to take appropriate action. To bolster accountability, the Secretary will conduct performance-based reviews of accrediting agencies, assessing their effectiveness in evaluating student outcomes. If an institution is found in violation of fraud or misconduct laws, or files for bankruptcy, the Secretary must review its accrediting agency and can limit, suspend, or terminate its recognition. The Department's Office of Inspector General will also conduct triennial reviews of the Secretary's actions and provide recommendations. Increased transparency is a core component, requiring institutions to prominently display their accreditation status online using a standardized disclosure system established by the Secretary. Accrediting agencies must also make public all final review documents, including site visit reports and decision letters, on a federally maintained website. New conflict of interest rules prohibit individuals with financial stakes, fiduciary responsibilities, or lobbying ties from participating in accreditation decisions. The legislation introduces requirements for credit transfer agreements , mandating that within four years, institutions accredited by the same agency must have agreements for general education and similar program courses. It also strengthens teach-out requirements, expanding the triggers for institutions to submit teach-out plans and agreements, particularly in cases of financial distress or risk. Finally, the bill establishes federal court jurisdiction for accreditation disputes and restricts institutions from changing accrediting agencies unless strict conditions are met, aiming to prevent institutions from "shopping" for easier accreditation. A Sense of Congress statement emphasizes academic freedom and the independence of accrediting agencies from political interference.