CECU: STATE 90/10 LAWS DO NOT SUPERSEDE FEDERAL LAW
CECU
May 10, 2021
Arlington, Va. — Career Education Colleges and Universities (CECU) today sent a letter to the Maryland Higher Education Commission (MHEC) recommending that MHEC interpret Maryland state 90/10 laws to be consonant with the new federal 90/10 law, as amended by the American Rescue Plan Act of 2021. Such an interpretation would ensure that proprietary institutions in Maryland are not required to comply with two different 90/10 rules, as the Maryland definition of “federal funds” is potentially divergent from the federal definition.The letter, which was co-signed by several schools that would be directly affected by the Maryland law, outlines why efforts to further regulate proprietary schools via stringent state 90/10 laws may be prohibited under federal law. CECU also demonstrates why the Maryland law would be preempted by federal law if MHEC takes an alternative interpretation.
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