Gainful Employment Update: 90-Day Stay Ordered by Judge

Gainful Employment Update: 90-Day Stay Ordered by Judge

In the News

February 10, 2025

Gainful Employment Lawsuit Update: 90-Day Stay Ordered by Judge

Dear AACS Members:

 

Today, the judge in AACS/DuVall’s case against the gainful employment rule ordered a 90-day “stay” (i.e., pause) of the case. The judge’s order comes in response to a request from the government, which asked AACS/DuVall to consent to the stay so that the “new leadership” at the Department of Education can “familiarize[s] itself with the issues and consider[s] the Department’s position in regard to the case and underlying regulations.” To obtain AACS/DuVall’s consent, the government committed, in writing, that no GE metrics results “will be issued or posted during this period.” In effect, this means that no school will be deemed to have “failed” the GE tests through at least early May 2025 (and possibly not until fall 2025), even if a school has already reported its completer data to the Department. That commitment from the government eases concerns that it would begin posting GE results this spring, which it had claimed it would do in a January 17, 2025 announcement.

 

While any delay affecting the GE rule is a positive development for member schools, the government’s request does not affect the merits of the case (i.e., who ultimately wins). It is also not necessarily an indication that the new administration intends to withdraw the current GE rule. Our legal team reports that the Department of Education has made an identical request in at least one other case, so this may simply be part of an effort to delay all pending litigation against Departmental regulations for a few months. AACS’s board and legal team have mapped out the foreseeable contingencies and have plans for addressing each of them.

 

Take note that the government has not paused the entire GE rule, including the current February 18, 2025 reporting deadline. However, the government has informed our legal team that it is actively considering delaying the February 18, 2025 reporting deadline.  For now, absent further action from the Department of Education, members should still complete their reports by the February 18, 2025 deadline, though this may change very soon.

 

Please reach out to AACS at membership@myaacs.org with any questions about this positive development. AACS will continue to update members with any new developments in this case.

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