College Accountability: New Law Targets Programs with Low-Earning Graduates (2026)

The recent implementation of a new law in California is shaking up the higher education landscape, forcing colleges and universities to prove that their graduates are earning at least the median wage of someone with only a high school diploma. This means that graduates of certain programs, particularly in fields like cosmetology, medical assisting, arts and theater, are now facing scrutiny over their post-graduation earnings. The law, known as the One Big, Beautiful Bill Act or H.R. 1, was signed into law last July and went into effect this month, marking a significant shift in federal accountability measures for higher education.

The law sets a low bar for earnings, with the median wage of a high school graduate in California being just $36,000 per year. This is a stark reality check for many graduates, especially in places like the Bay Area, where housing costs are prohibitively high. According to Michael Itzkowitz, president of the HEA Group, this threshold is a minimum expectation for college graduates, and it's concerning that some programs are failing to meet it.

The analysis conducted by Itzkowitz revealed that about 90% of California graduates from higher education programs earn at least $36,000, but around 300 programs, particularly in cosmetology, medical assisting, and arts and theater, are falling short. This includes programs at for-profit colleges, community colleges, and four-year universities, highlighting a systemic issue within the higher education sector.

One of the most striking examples is the California Institute of the Arts, a prestigious private arts school known for its alumni's success in the entertainment industry. Despite its reputation, the school's fine arts, film, and photography programs have some of the lowest earnings of any large bachelor's degree program in the state, with graduates earning just below $30,000 four years after graduation. This raises questions about the value and return on investment for arts degrees.

However, it's not just arts programs that are struggling. Cosmetology and personal grooming programs, such as those at the Shasta School of Cosmetology in Redding, are also failing to meet the earnings threshold, with graduates earning just over $12,000 four years after graduation. This is a stark contrast to the high levels of debt and low earnings that have long been documented in the field.

The law's interpretation and enforcement have sparked debates, with some schools criticizing the earnings data as misleading. Angelica Muro, chair of the visual arts and music department at Cal State Monterey Bay, argues that the new rule undervalues the societal benefits of critical thinking and the cultural value of arts. However, others, like Christopher Madaio from the Institute for College Access and Success, support the law as a necessary step towards accountability, even if it doesn't go far enough.

The law's impact extends beyond individual programs and schools, as it raises broader questions about the value and purpose of higher education. It prompts a reevaluation of curriculum design, career guidance, and the overall return on investment for students. As the law is implemented and enforced, it will be crucial to monitor its effects and ensure that it serves the best interests of students and the higher education system as a whole.

In conclusion, the new law in California is a wake-up call for the higher education sector, forcing it to address the earnings of its graduates and the value of its programs. While it may not be a perfect solution, it represents a significant step towards greater accountability and transparency in higher education. As the law unfolds, it will be essential to engage in ongoing dialogue and evaluation to ensure that it is effectively addressing the needs and expectations of students and society.

College Accountability: New Law Targets Programs with Low-Earning Graduates (2026)

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