1. Short title This Act may be cited as the For-Profit Fraud Act . 2. 85/15 Rule Section 487 of the Higher Education Act of 1965 ( 20 U.S.C. 1094 ) is amended— (1) in subsection (a)(24)— (A) by striking In the case and inserting: (A) In the case ; (B) by striking not less than ten percent of such institution’s revenues from sources other than funds provided under this title and inserting not less than 15 percent of such institution’s revenues from sources other than Federal funds ; and (C) by adding at the end the following: (B) Federal funds In this paragraph, the term Federal funds means any Federal funds provided, under this Act or any other Federal law, through a grant, contract, subsidy, loan, guarantee, insurance, or other means to a proprietary institution, including Federal funds disbursed or delivered to an institution or on behalf of a student or to a student to be used to attend the institution, except that such term shall not include any monthly housing stipend provided under the Post-9/11 Educational Assistance Program under chapter 33 of title 38, United States Code. ; and (2) in subsection (d)— (A) in the heading, by amending the heading to read as follows: Implementation of revenue requirements for non-Federal education assistance funds ; and (B) in paragraph (2)(A), by inserting at the end the following: The Secretary of Education shall notify the Secretary of Defense and the Secretary of Veterans Affairs when, by reason of failing to meet a requirement of subsection (a)(24), a proprietary institution of higher education becomes ineligible to participate in the programs authorized by this title, and when the institution regains such eligibility.