Massage Therapy Programs Receive Important Relief Under New Federal Education Accountability Rule

On June 29, the U.S. Department of Education (ED) finalized a new accountability framework for postsecondary education programs. Under these regulations, ED will apply a "Do No Harm" earnings test to determine whether educational programs remain eligible for Title IV federal student aid, including federal student loans.

AMTA Advocacy Secures Important Improvements

The final rule includes several significant changes that improve the outlook for massage therapy education programs compared with the version originally proposed. Most notably, the Department accepted one of AMTA's key recommendations by providing a special implementation delay for occupations that rely heavily on tips, including massage therapy and somatic bodywork.

In addition, the final rule incorporates several other changes advocated for during the rulemaking process:

• Program comparisons will be more narrowly defined, reducing the likelihood that massage therapy programs will be compared with unrelated fields.
  
  
• Pell Grant eligibility remains available under certain circumstances, helping preserve access to need-based financial aid for eligible students.
  
  
• Institutional reporting requirements have been substantially reduced, decreasing administrative burdens for schools. These reduced reporting requirements take effect July 1, 2026.

These improvements reflect the persistence of AMTA's advocacy efforts and the collective voices of massage professionals, educators, students, and supporters who submitted public comments throughout the rulemaking process!

Why the Tipped-Income Delay Matters

The original earnings methodology did not fully capture the income of professionals who earn a substantial portion of their compensation through tips, potentially understating their actual earnings. To address this concern, ED will delay implementation of eligibility consequences for programs that prepare students for tip-based occupations.

This delay allows the Department to use earnings data beginning with tax year 2026, after the federal "No Tax on Tips" policy takes effect, providing a more complete picture of earnings in professions like massage therapy. This change will result in at least a one-year delay in the rule's eligibility consequences for massage therapy programs.

The Importance of Accurate Tip Reporting for Massage Therapists

Historically, tip income has often been underreported across many service professions, including massage therapy. Beginning with tax year 2026, the "No Tax on Tips" policy is expected to provide the IRS with more complete earnings information for tip-based occupations.

By accurately reporting all tip income on tax returns, massage therapists can help ensure that federal earnings data reflects the profession more accurately. If earnings are understated, massage therapy education programs may appear less successful than they actually are, potentially affecting future eligibility decisions regarding federal student aid.

Over time, reduced access to federal student aid could make massage therapy education less accessible to prospective students, limiting workforce growth and reducing public access to massage therapy.

Learn more about the proposed rule and earnings reporting concerns that prompted AMTA's advocacy on this issue

Thank You for Making a Difference

We thank everyone who submitted comments to the Department of Education, contacted elected officials, shared information, and helped raise awareness throughout this process. Your advocacy played an important role in securing meaningful improvements to the final rule, including the implementation delay for tip-based occupations such as massage therapy.

While significant challenges remain, the final rule is more favorable than the original proposal. AMTA will continue to monitor developments, evaluate the rule's impact, and keep you informed as implementation moves forward.

As always, AMTA will continue advocating for policies that protect students, schools, and the future of the profession. Your voice matters, and your engagement continues to make a difference!