S. 5116 — MERIT Act

This section requires accrediting agencies to ensure institutions adopt admissions practices that prohibit preferential treatment based on an applicant's relationship to alumni or donors. It defines preferential treatment as an admissions decision where such a relationship is the determinative factor. It permits consideration of demonstrated interest if criteria are publicly defined, applicants may explain their interest, and opportunities are equally accessible regardless of financial resources or affiliations. It preserves faith-based institutions' ability to align admissions with institutional values. It directs the Secretary to submit biennial compliance reports to the Senate HELP Committee and House Education and Workforce Committee, beginning 180 days after the negotiated rulemaking process concludes, with each report made public.

This section requires the Secretary of Education, within 2 years of enactment, to study the feasibility of partnering with the National Student Clearinghouse to collect and report institution-level data on the prevalence and impact of legacy and donor-based admissions, integrate such data with IPEDS, maintain confidentiality of donor identities, avoid transferring personally identifiable information to the Department, and distinguish familial alumni ties from direct donor affiliations. It prohibits construction of the section to authorize any nationwide database of personally identifiable information.