US HB7891

Amends Section 498A of the Higher Education Act of 1965 to add institutions flagged for potential identity fraud to the Secretary of Education's priority list for program reviews

Requires the Secretary to identify institutions that disbursed Title IV federal financial aid on or after October 1, 2026 to students whose FAFSA applications triggered the identity fraud detection system

Allows institutions to avoid identification by verifying student identity through in-person or live synchronous audiovisual verification before disbursing aid, notifying the Secretary, and maintaining verification records

Permits identification findings to inform program reviews, audits, and investigations, but specifies that identification alone does not constitute a determination that an institution violated Title IV requirements