History

States regulate institutions that offer educational activities within their borders, whether instruction is delivered in person or through distance education.

• State oversight helps ensure that institutions meet applicable state requirements.
• It also supports consumer protection for learners participating in educational activities in the state.

The Department of Education developed Federal regulations for state authorization of distance education to ensure that institutions are complying with state laws in the states in which the institution is disbursing federal financial aid.

This timeline summarizes key federal actions shaping state authorization for distance education.

• 2010 – USED issued the first federal distance education state authorization regulation.
• 2011–2012 – Federal courts vacated the distance education provision on procedural grounds.
• 2016–2019 – USED issued new final regulations, delayed implementation, and later implemented the 2016 rules after litigation.
• 2020 – State authorization and accreditation regulations became effective.

• 2022–2025 – Rulemaking focused on certification procedures, professional licensure, distance education, and broader program integrity issues.

   

2010-2012: Original State Authorization Rule, Clarification Letters, and Court Decisions

June 2010–June 2012 – USED issued and clarified the original federal distance education state authorization regulation, but federal courts later vacated the distance education provision on procedural grounds.

• Proposed and final regulations issued. USED released proposed regulations in June 2010 and final regulations in October 2010, including 34 CFR 600.9(c), which required institutions offering distance or correspondence education across state lines to meet applicable state requirements and document state approval upon request.
• Implementation clarified. USED released March 2011 and April 2011 (PDF) Dear Colleague letters clarifying the distance education regulation and moving the enforcement date to July 1, 2014, while institutions continued making “good faith” efforts.

• Courts vacated the provision. In July 2011, the U.S. District Court for the District of Columbia struck down the distance education portion of the rule. In June 2012, the U.S. Court of Appeals upheld that ruling (PDF) on procedural grounds while affirming USED’s authority to issue the rule. The federal deadline was eliminated, but state laws remained enforceable.

   

2014: New Negotiated Rulemaking Effort

After the court decisions, USED tried again to develop a federal distance education state authorization rule through negotiated rulemaking.

May 2014 – The USED Negotiated Rulemaking Committee was unable to reach consensus on a new federal state authorization regulation for distance education.

2016-2020: Final Regulations, Delay Rule, Litigation, Implementation, and Accreditation Rulemaking

This period covers the return of federal distance education state authorization requirements, implementation delays, litigation, and the rulemaking that led to the 2020 state authorization and accreditation regulations.

July 2016–February 2018 – USED developed and finalized new federal state authorization requirements for distance education, then received implementation-related feedback before the July 1, 2018, effective date.

• Proposed and final regulations issued. USED released proposed regulations in July 2016 and final regulations for State Authorization of Postsecondary Distance Education and Foreign Locations in December 2016, with an effective date of July 1, 2018.
• Reciprocity interpretation clarified. In January 2017, Under Secretary Ted Mitchell responded by letter (PDF) to Russ Poulin and Marshall Hill about USED’s interpretation of the definition of a state authorization reciprocity agreement.
• Implementation concerns were raised. In February 2018, WCET, NC-SARA, and DEAC coauthored a letter (PDF) expressing concerns about state authorization rules scheduled to take effect July 1, 2018.

May 2018-August 2019 -  Delay Rule, Litigation, Implementation, and Related USED Guidance

• Delay rule issued. In May–July 2018, USED moved to delay selected provisions of the 2016 federal state authorization regulations for two years. OMB postings referenced a two-year delay of the distance education rule and a related proposal to amend the regulations through negotiated rulemaking. USED then announced a proposed delay and a final two-year delay rule for selected provisions, while leaving the foreign-location provision effective July 1, 2018.
• Litigation vacated the delay. NEA sued USED (PDF) in August 2018. On April 26, 2019, the U.S. District Court ruled for the plaintiffs (PDF) and ordered vacatur of the delay. The 2016 federal state authorization regulations became effective May 26, 2019.
• Implementation guidance followed. In July–August 2019, USED issued guidance on 34 CFR 600.9(c)(2), confirmed the May 26, 2019 effective date, and accepted California’s complaint process (PDF) as sufficient for purposes of 34 CFR 600.9(c)(2), while expecting modifications to address compliance challenges.

July 31, 2018–November 1, 2019 – USED launched an accreditation and innovation negotiated rulemaking process covering 11 areas of higher education regulation, including state authorization.

• Process launched. USED published the Federal Register notice and a negotiated rulemaking plan and call for nominations.
• Negotiations held. Accreditation and Innovation negotiated rulemaking sessions were held from January 14–April 3, 2019, resulting in final consensus language.

• Final regulations issued. On November 1, 2019, USED announced final regulations on state authorization and accreditation, effective July 1, 2020.

   

2022-2025: Certification Procedures, State Authorization, Distance Education, and Program Integrity Rulemaking

This period focuses on certification procedures, professional licensure, distance education, Return to Title IV, TRIO, and related program integrity issues.

March 2022–October 31, 2023 – The USED Winter 2022 Negotiated Rulemaking Committee did not reach consensus on proposed Certification Procedures regulations. USED later released proposed regulations on May 19, 2023, and the Federal Register published final Financial Responsibility, Administrative Capability, Certification Procedures, and Ability to Benefit (ATB) regulations on October 31, 2023. The final Certification Procedures provisions require institutions to certify compliance with state educational requirements and revised notification obligations.

March 24, 2023–January 3, 2025 – USED initiated a negotiated rulemaking process covering accreditation, institutional eligibility, state authorization, distance education, Return to Title IV, cash management, and TRIO.

• Rulemaking launched. USED announced the negotiated rulemaking process, and SAN and WCET submitted public comments on the 2023 federal rulemaking (PDF).
• Committee process completed. USED published committee nominations and the meeting schedule, and the committee met in early 2024 with materials posted on the USED rulemaking webpage. The committee reached consensus only on TRIO.

• Regulatory outcomes issued. USED issued proposed regulations on Distance Education, Return of Title IV Funds, and TRIO on July 24, 2024; terminated rulemaking on State Authorization, Cash Management, Accreditation, and related issues on December 26, 2024; and issued final Program Integrity and Institutional Quality regulations covering distance education, Return of Title IV Funds, and TRIO on January 3, 2025 (PDF).

   

Additional Resources

SAN Report 

• The Evolution of Compliance for State Authorization of Distance Education By Sharyl Thompson; sharyl@highereducationconsultingllc.com; Higher Education Regulatory (HER) Consulting 

SHEEO Articles:

• State Authorization and Crossing State Borders, Part 1: Institutional Approvals for Out-of-State Activities
• State Authorization and Crossing State Borders, Part 2: Additional Approvals and Professional Licensure

Additional History

• For a more detailed history of state authorization, see State Authorization of Colleges and Universities: A Handbook for Institutions and Agencies by Alan L. Contreras, with contributing authors Sharyl J. Thompson, Russell Poulin, and Cheryl Dowd. The updated third edition was released in April 2026 and is available on Amazon.com in paperback.