Competency-Based Education Act of 2023

This bill establishes a federal framework for competency-based education (CBE) in higher education, requiring the Department of Education to align its oversight with existing regulations (34 CFR parts 600, 602, and 668) when administering CBE programs or determining federal aid eligibility. It directly affects colleges and universities seeking federal financial aid by defining CBE as learning organized around students demonstrating specific, measurable skills rather than completing fixed course timeframes. The key mechanism mandates that institutions must prove student mastery of discrete skills - like job-specific abilities - to advance, replacing traditional time-based course structures. This policy change shifts federal oversight to prioritize demonstrated student competencies over seat time in higher education programs.