U.S. Reps. Glenn “GT” Thompson (R-PA) and Tom Emmer (R-MN) on Wednesday cheered action by the U.S. House of Representatives, which voted 249-172 to approve legislation that aims to tackle student aid fraud in higher education.
“Whether it’s fraud through housing programs, autism centers, day cares, or our universities, criminals are abusing our public systems to scam taxpayers and harm vulnerable populations,” Rep. Emmer said. “By combating fraud in federal student aid, House Republicans are supporting future generations of students and giving those who truly need the aid the ability to receive it.”
The House-approved No Aid for Ghost Students Act of 2026, H.R. 7892, would address so-called “ghost student” fraud, which refers to schemes in which bad actors use stolen or counterfeit identities to submit college admission and federal student aid applications, enroll in courses, illegally receive federal student aid, and then vanish with the funds.
Under the bill, the U.S. Department of Education would be required to establish an identity fraud detection system by October for the Free Application for Federal Student Aid (FAFSA), and to develop guidelines for the identity verification procedures conducted by institutions of higher education (IHEs).
H.R. 7892, which now heads to the U.S. Senate for consideration, also includes Rep. Thompson’s Student Aid Fraud Oversight and Accountability Act of 2026, H.R. 7891, which would require the U.S. Education Secretary to prioritize program reviews of institutions of higher education that disburse federal financial aid without verifying the identity of a student whose FAFSA application presents a reasonable suspicion of identity fraud.
“For too long, fraud has saturated federal student aid programs, costing taxpayers millions of dollars annually,” Rep. Thompson said. “We are installing safeguards to ensure program integrity, to prevent criminals from ripping us off, and we’re making sure that deserving students have access to college classrooms.”
Rep. Thompson’s bill would create an oversight mechanism for the Education Department to identify IHEs that have a pattern of disbursing federal aid to applicants flagged for potential fraud. This would place such institutions in a priority category that would allow for program reviews, audits, and other oversight activities, according to the congressman’s bill summary.
The legislation also would provide an exception for institutions that verify student identity through in-person or live video call verification before dispersing student aid, and would require the Education Department to use an identity fraud detection system to review each FAFSA application, among other provisions.