Understanding the Federal Implications of House Resolution 1
What changed under House Resolution 1 (H.R.1)
- What is H.R.1? HR1 is a major federal higher education and workforce policy package that restructures several student focused programs, updates reporting requirements, and introduces new accountability measures for institutions. It changes how student financing, workforce programs, and outcomes reporting are defined and evaluated at the federal level.
- Why does it matter for Colorado? These changes affect how Colorado students access aid, the data institutions must report, and how programs are evaluated. H.R.1 also introduces new measures tied to program value and workforce outcomes, which may influence institutional planning and program design.
- Purpose of this information: This page summarizes the elements of H.R.1 most relevant to Colorado institutions of higher education from a state policy perspective. It highlights anticipated impacts on academic programs, students, and data reporting obligations so institutions can prepare for implementation and anticipate the impacts of the changes.
- View a recording of CDHE’s April 15, 2026 overview of the implantation and impacts of H.R.1
Current Status: Final rules
Last Updated July 07, 2026
Where things stand: H.R.1 requires federal agencies to develop detailed rules before the law can be fully implemented. The U.S. Department of Education has moved through negotiated rulemaking, proposed rules, and public comment periods and have issued final rules for Earnings Premium, Workforce Pell, and Student Loans.
Colorado’s approach: Colorado agencies, including CDHE and partner state entities, are actively monitoring rulemaking, coordinating across state systems, and soliciting feedback to the federal government. The state is focused on ensuring that implementation supports Colorado students and minimizes unnecessary administrative burden for institutions.
Visit the U.S. Department of Education for the latest updates on the rulemaking progress.
Earnings Premium (Accountability)
H.R.1 introduces a federal “earnings premium” indicator designed to show whether program graduates earn more than individuals in the state with only a high school diploma. This earnings premium is the new accountability measure for program eligibility for federal loans. The earnings premium aligns and consolidates previous Gainful Employment (GE) and Financial Value Transparency (FVT) regulations around a single earnings test. This earnings test applies to all certificate and degree (undergraduate and graduate) programs. Programs failing to meet the earnings premium in two out of three years is considered a “low-earning program” and students in these programs lose eligibility for federal loans.
At institutions with more than half of their Title IV recipients (students) in “low-earning” programs and more than half of their Title IV-funding volume ($ amount) in “low-earning” programs, the institution’s “low-earning programs” will lose eligibility to participate in all Title IV funds (including Pell).
National Resources
The U.S Department of Education released final rules
- The National Association of Student Financial Aid Administrators (NASFAA) comparison of STATS to GE/FVT regulations.
- U.S. Department of Education (USED) Implementation Resources
- Timeline for implementation
- Discussion guide on Student Tuition & Transparency System (STATS) (data to be used in earnings premium calculations)
- Negotiated Rulemaking Documentation
- National Analyses after Negotiated Rulemaking Consensus
- National Analyses after Final Rules
- Continuously Updated Resources
Colorado Resources
- CDHE is developing Colorado‑specific analyses to help institutions understand how the earnings premium is calculated and how programs may be affected. Links will be provided here to the Colorado report, explanatory blog post and any accompanying datasets as they are released.
- PEER (2026) Data (Analysis of Colorado Programs) is available here. To learn more about the PEER Center, visit their website here.
Workforce Pell
H.R.1 expands Pell Grant eligibility to certain short‑term, workforce‑focused education and training programs that meet new federal quality and wage standards. This expansion is designed to support Coloradans seeking faster pathways into the workforce, in high-wage, high-skill or in-demand careers.
Institutions will need to ensure eligible programs meet federal criteria related to program length, program completion and employment outcomes.
National Resources
- Workforce Pell Final Rules
- U.S. Department of Education (USED) Resources
- National Analyses after Negotiated Rulemaking Consensus
- Continuously Updated Resource Pages
Colorado Resources
- The Governor’s office is leading the implementation of this new program in Colorado, with support from CDHE, the Colorado Workforce Development Council (CWDC) and other state agencies. More detailed information about Workforce Pell in Colorado, including implementation timelines and state specific guidance, is available on the CWDC website
- Institutional Readiness checklist
Impacts on Student Loans
H.R.1 makes several changes to federal student loan programs, including updates to repayment options, borrower protections and loan eligibility rules. These changes affect how students borrow, what they owe after graduation and how institutions counsel students about financing their education.
Starting July 1, 2026, federal loan changes under the One Big Beautiful Bill Act (HR1, Sec. 81001) will significantly affect Colorado graduate students.
Key changes from the proposed rules:
- Elimination of Grad PLUS Loans: Students can no longer borrow up to the full cost of attendance and are limited annually to $20,500 (non-professional programs) and $50,000 (professional programs) in direct federal unsubsidized loans.
- New Lifetime Loan Caps: $100,000 for non-professional programs and $200,000 for professional programs.
- Reclassification of Programs: Nursing, public health, and social work were moved to a non-professional category, so students in those programs will be able to take out less in loans.
- New Repayment Options: Creation of two new student loan repayment options and phasing out existing plans, including SAVE and REPAYE. For new federal student loans issued starting July 1, 2026, borrowers would have only two repayment choices: a standard repayment plan with set payment levels (“Tiered Standard”) or an income-based option called the Repayment Assistance Plan (RAP).
National Resources
- Federal Loans Final Rules
- National Analysis of Proposed Rules
- National Analyses after Negotiated Rulemaking Consensus
- Continuously Updated Resource Page
Colorado Resources
- CDHE will publish a Colorado specific analysis of the impacts of loan related provisions on graduate students under H.R.1. This section will include links to the statewide report and blog post.