The "Do No Harm" Bill
About the bill
The “Do No Harm” provision is a key part of the federal One Big Beautiful Bill Act (OBBBA), a major tax and spending law signed in July 2025 that overhauls higher education funding. Effective July 1, 2026, it is designed to ensure that college programs deliver a positive return on investment—or at minimum, “do no economic harm”—to students.
Proposed earnings tests create immediate risks for cosmetology and barbering programs, potentially disqualifying them from federal aid and shutting doors to students who rely on financial assistance to pursue their dreams in the beauty trade.
New rules require beauty programs to show that graduates earn enough money to justify the cost of their education. Some cosmetology, barber, and nail programs might find it difficult to meet these specific earnings requirements. If a school fails these tests multiple times, students can no longer use federal loans to pay for their classes.
How this effects the texas traDES
The OBBBA also eliminates Grad PLUS loans and reduces unsubsidized Stafford Loan limits beginning July 1, 2026. While this is a federal law, TBTA is starting by closely examining how these changes will interact with Texas laws and regulations, and what they may mean for beauty schools, salons, and future professionals in our state.
Bringing on apprenticeships would provide an ‘earn as you learn’ pathway for individuals, eliminating debt and adding to the Texas workforce, as well as potential incentives for salons who offer them.
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