Department of Education Narrows PPA Owner-Signature Enforcement, but Leaves Core Statutory Issue Unresolved
January 21, 2026
On January 16, 2026, the U.S. Department of Education issued an Electronic Announcement, “Program Participation Agreement Signature Requirements” (GEN-26-04), addressing the general circumstances under which an owner-entity of a Title IV-eligible institution may be required to sign a program participation agreement (PPA) under Section 498 of the Higher Education Act (HEA), codified at 20 U.S.C. § 1099c. The announcement was issued in connection with the Department’s settlement of litigation in Hannibal-LaGrange University v. U.S. Department of Education, 2:25-cv-00042 (E.D. Mo. 2025), which challenged the legality of the Department’s 2023 amendment to 34 C.F.R. § 668.14(a)(3)(ii).
In that litigation, Hannibal-LaGrange University challenged the Department’s requirement that its sponsor organization, the Missouri Baptist Convention, must sign an amendment to the institution’s PPA in connection with a request for approval of new educational offerings. As amended in 2023, Section 668.14(a)(3)(ii) requires that PPAs for proprietary and private nonprofit institutions be signed not only by an authorized institutional representative, but also by authorized representatives of majority owners and other controlling parties of the institution.
