H.R. 3938 – CLASS Act of 2025

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Updated November 24, 2025 at 12:01 AM UTC

The Court Legal Access and Student Support (CLASS) Act of 2025 aims to protect college students’ legal rights. It stops federal arbitration rules from being applied to student enrollment contracts, and it prevents schools from forcing students to give up the ability to sue them in court. The changes affect all institutions of higher education covered by the Higher Education Act.

Key Provisions

Chapter 1 of title 9 (the federal arbitration‑enforcement rules) will not apply to any enrollment contract a student signs with a college or university.
The bill defines an “enrollment agreement” as any contract where a student commits money to a school in exchange for a program of study, and uses the existing definition of a higher‑education institution from the Higher Education Act.
It adds a new subsection to the Higher Education Act that bars schools from requiring students to waive or limit their right to bring a lawsuit, including any restrictions on choice of law, right to a jury trial, or venue.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the Committee on Education and Workforce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Education and Workforce Committee

June 11, 2025

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HouseIntro Referral

Introduced in House

June 11, 2025

HouseIntro Referral

Referred to the Committee on Education and Workforce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Education and Workforce Committee

June 11, 2025

Bill Text

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Introduced in HouseIssued June 11, 2025

I

119th CONGRESS

1st Session

H. R. 3938

IN THE HOUSE OF REPRESENTATIVES

June 11, 2025

Ms. Waters (for herself, Mr. Davis of Illinois, Ms. Tlaib, Mr. Garcia of California, Mr. Johnson of Georgia, Ms. Schakowsky, Mr. García of Illinois, Mr. Fields, Mrs. Ramirez, Ms. Bonamici, Ms. Jayapal, and Mr. Krishnamoorthi) introduced the following bill; which was referred to the Committee on Education and Workforce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To provide that chapter 1 of title 9 of the United States Code, relating to the enforcement of arbitration agreements, shall not apply to enrollment agreements made between students and certain institutions of higher education, and to prohibit limitations on the ability of students to pursue claims against certain institutions of higher education.

1.

Short title

This Act may be cited as the Court Legal Access and Student Support Act of 2025 or the CLASS Act of 2025.

2.

Inapplicability of chapter 1 of title 9, United States Code, to enrollment agreements made between students and certain institutions of higher education

(a)

In General

Chapter 1 of title 9 of the United States Code (relating to the enforcement of arbitration agreements) shall not apply to an enrollment agreement made between a student and an institution of higher education.

(b)

Definitions

In this section:

(1)

Enrollment agreement

The term enrollment agreement means any contract or agreement between a student and an institution of higher education under which the student makes a financial commitment to the institution in exchange for enrollment in a program of study at the institution.

(2)

Institution of higher education

The term institution of higher education has the meaning given such term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).

3.

Prohibition on limitations on ability of students to pursue claims against certain institutions of higher education

Section 487(a) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended by adding at the end the following:

(30)

The institution will not require any student to agree to, and will not enforce, any limitation or restriction (including a limitation or restriction on any available choice of applicable law, a jury trial, or venue) on the ability of a student to pursue a claim, individually or with others, against an institution in court.

.

4.

Effective date

This Act and the amendments made by this Act shall take effect 1 year after the date of enactment of this Act.