1. Short title This Act may be cited as the Higher Education Innovation Act . 2. Alternative authorization system Part H of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1099a et seq.) is amended by adding at the end the following: 4 Alternative authorization system 498C. Alternative authorization system (a) Definitions In this section: (1) Innovation authorizer The term innovation authorizer or authorizer means an entity that has been approved by the Secretary to carry out authorization of eligible entities. (2) Eligible entity The term eligible entity means an institution of higher education or another entity that— (A) promotes and supports student success outcomes and cost-effectiveness in postsecondary education; (B) provides an educational program— (i) that leads to a degree or certificate; (ii) of course bundles; or (iii) that leads to an industry-recognized credential that meets the requirements for licensing in the relevant field; (C) agrees to specified outcome-based oversight and reporting requirements described in this section; (D) demonstrates that the entity provides high-quality education by meeting or exceeding the minimum thresholds for each of the performance metrics that are required by the innovation authorizer in accordance with subsection (b) and which are developed in accordance with subsection (d); (E) meets the definition of an institution of higher education under section 101 or 102, except that the entity need not meet the requirements described in— (i) section 101(a)(5); (ii) section 102(b)(1)(A)(ii)(II); or (iii) 102(b)(1)(D)