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This bill creates a five-year demonstration project to expand competency-based education, which measures student learning through demonstrated skills rather than traditional credit or clock hours. The legislation clarifies definitions of competency-based education programs and requires the Department of Education to select colleges and universities to participate in the demonstration project, providing them with waivers from certain federal regulations that might hinder these alternative education models. Selected institutions must enroll between 30 and 3,000 students, though approved institutions may expand to up to 5,000 students, and must work with employers to ensure programs meet workforce needs. The bill requires the Secretary of Education to collect and publicly report data on these programs within six months, including information on student costs, completion rates, time to credential, and employment outcomes, with a final congressional report due one year after the demonstration concludes. The legislation particularly encourages participation from minority-serving institutions, those serving rural areas, and schools that enroll adult learners and students with disabilities.

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