Yesterday, the U.S. House passed its version of the budget reconciliation bill. As the Senate has already passed its version, the bill now moves to the President who has indicated he will sign it. The repeal of the 50% rule is part of this bill. If President Bush signs it, the repeal will be effective July 1, 2006. The 50% rule, originally designed to curb the growth of diploma mills, is a law that is part of the Higher Education Act that restricts institutions from offering federal financial aid to its students if the school offers more than half of their courses by distance learning or if half or more of its students are enrolled in distance learning courses. Certainly online and distance education providers welcome this news!