Dear AACS Members, We want to provide you with a brief update on the status of our legal challenge to the U.S. Department of Education’s Gainful Employment (GE) and Financial Value Transparency (FVT) regulations. As scheduled, on Friday, May 16, the Department filed its final brief in response to the briefs filed by AACS and Ogle in December. Since the case had been stayed by the court at the government’s request for 90 days so that the incoming administration could evaluate its position on the regulations at issue. It appears that the new administration has decided to defend the regulations. In its filing, the Department argues that it has the legal authority to ensure that career training programs—like those in cosmetology—prepare students for financially beneficial employment. The Department claims that “gainful employment” means more than just having a job; it must reflect a return on the federal investment in student aid. It also maintains that using reported earnings data (such as IRS records) is the most reliable way to assess program outcomes and that the rules include safeguards to ensure fairness. The Department argued the rules do not violate the First Amendment or unfairly target cosmetology programs. It also asked the court to preserve the transparency framework even if any part of the accountability rules is struck down. The parties have requested oral argument before the judge. We do not have a date yet for those arguments, but expect they will be scheduled sometime this summer. A decision from the court will follow the arguments. We will continue to keep you informed as the case progresses.
To read the government's brief on AACS v. United States Department of Education, please click here. | 
