Issa Hearing on New Regulation Skips Scandals

It’s a congressional hearing that’s notable for what it’s not addressing.

Friday, a panel on the House oversight committee chaired by California Republican Rep. Darrell Issa is holding a hearing about a controversial new regulation enacted June 2 by Education Sec. Arne Duncan.

The regulation put strict new rules on for-profit or "career" colleges, conditioning federal aid to students of the schools to numeric thresholds on how much debt they incur or how quickly they repay federal loans after attending.

The hearing, before a subcommittee chairman and conservative leader, Rep. Jim Jordan, will address the impact of the regulation on the economy. But it won’t address a series of scandals that accompanied its enactment.

Those include an error-ridden report by the Government Accountability Office (GAO) and a pending Inspector General investigation over whether Wall Street investors were given early notice about key regulatory decisions, allowing them to profit from the insider information.

Issa promised to hold the hearing after Rep. Edolphus Towns — formerly the top Democrat on the oversight committee — asked the California Republican to investigate whether the Education Department’s process was “even handed, open-minded and transparent.”

Though honest men could disagree “whether the [new Education Department] regulation as written is right or wrong … one principal [sic] on which we all should be in agreement … is a rule-making that allows non-elected government officials to establish policy and have the force of law must be fair, unbiased, and transparent,” Towns wrote in a May 24 letter requesting the hearing.

But the hearing will instead focus on whether the content of the new regulation is “right or wrong,” in Towns’ words.

“Friday’s joint hearing will explore how these new regulations will affect job creation and will also assess the impact the rule could have on students,” said Issa spokeswoman Becca Glover Watkins.

The witness list includes Harry Alford, the head of the National Black Chamber of Commerce who has argued strenuously against the regulation, Karla Carpenter, a graduate of a for-profit college, Herzing University, that will be subject to the strict new rules, and Dario Cortes, the president of for-profit school Berkeley College.

While Alford, Carpenter and Cortes are likely to provide interesting perspectives on the impact of the regulation, called “gainful employment,” they aren’t experts on the myriad ethical controversies facing the Education Department, GAO and top lawmakers.

The topic omission is especially pronounced because scandal and impropriety are the bread and butter of the oversight committee.

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