To amend the Higher Education Act of 1965 to prohibit graduate medical schools from receiving Federal financial assistance if such schools adopt certain policies and requirements relating to diversity, equity, and inclusion.

HR 7725 would block federal funding for graduate medical schools that require students or staff to adopt specific statements about race, gender, or identity (like claiming systemic racism or collective guilt), use race-based distinctions in admissions or programs, maintain DEI offices, or mandate "diversity statements" for admission. It directly affects graduate medical schools at colleges/universities receiving federal financial aid, including student loans. The bill exempts medical education about race-related health needs, demographic data collection for reporting, and religious institutions from adhering to policies conflicting with their beliefs. Schools violating these rules would lose eligibility for federal funds, though they could still comply with anti-discrimination laws and provide general academic instruction.