New Earnings Test Threatens Religious Education Programs

July 9, 2026 - 22:27

A federal earnings test is set to reshape how religious education programs are evaluated, and critics say the rules are stacked against them. The test narrowly defines economic value by focusing solely on wages earned by graduates, ignoring broader contributions like community service or spiritual formation. For religious schools and seminaries, this creates a nearly impossible standard to meet.

The test applies to programs that receive federal financial aid, including many religious institutions. Under the new guidelines, a program must show that its graduates earn enough to repay their student loans. If they fail, the program risks losing access to federal funding. The problem, according to educators, is that religious education often leads to careers in ministry, nonprofit work, or teaching at faith-based schools. These jobs typically pay less than for-profit or corporate roles.

For public service workers, the outlook is even worse. Many graduates of religious programs go on to serve in low-income communities, run shelters, or lead congregations. These roles provide immense social value but do not generate high wages. Under the earnings test, those graduates are considered failures. One seminary administrator said the test ignores the reality that many students enter religious education knowing they will earn modest salaries. They do it out of calling, not for financial gain.

The Department of Education has defended the test as a way to protect students from programs that leave them with debt they cannot repay. But religious leaders argue the test is too narrow. They say it penalizes programs that serve the public good and could force many small seminaries and Bible colleges to close. Without federal aid, these schools would struggle to stay open, reducing access to religious education for low-income students.

The debate is far from over. Lawmakers and advocacy groups are pushing for changes that would account for non-wage outcomes, such as community impact or spiritual development. Until then, religious education programs face an uncertain future under a test that measures value in dollars alone.