US HB7892

Secretary of Education must implement an identity fraud detection system to review all FAFSA applications submitted on or after October 1, 2026

Applicants flagged for reasonable suspicion of identity fraud must be notified of the determination and informed that their designated institutions will also receive notice

Institutions cannot disburse federal financial aid to flagged applicants until verifying identity through in-person or live audiovisual verification and notifying the Secretary

Secretary must submit a written description of the fraud detection system to Congress by November 1, 2026, and report within 30 days of any substantial system changes

Annual evaluation of the system's effectiveness required beginning October 1, 2027, with reports submitted to authorizing committees