Do No Harm Implementation Delay

On June 29, the US Department of Education (ED) made the proposed accountability framework rules permanent. The rules, as originally written, would have spelled disaster for most esthetics programs (you can read more about that in our post here).  

But we have great news: In the announcement, ED included a delay of select provisions that would grant programs connected to certain professions, including esthetics, a one-year pause in implementation of these rules! After a great deal of hard work from ASCP, countless individuals (like you!), and industry partners, ED acknowledged that the earnings data they had on esthetics earnings were incomplete.  

So, what does that mean?  

Well, historically, the bulk of income from professions that generate most of their revenue from tips is not reported on tax returns. With the Tip Tax exemption that was implemented in 2025, this year (2026) will be the first time the IRS can get a full picture of the actual revenue of professions that are mostly tip-based. In the press release, ED stated:  

Delay of Select Provisions: The Department will delay implementation of the program eligibility consequences for certain programs that prepare students for employment in occupations where a majority of workers receive tipped income, in order to use reported earnings from the tax years when the “No Tax on Tips” policy is in effect, which begins with the 2026 tax year. This change results in at least a one-year delay in the rule’s eligibility consequences for affected programs.  

It is of utmost importance that tipped professionals report all their tipped income in their taxes this year. The IRS cannot get an accurate count of the actual earnings of esthetics professionals without this data. Without the real revenue data from the IRS, ED will have a flawed formula that leads them to cut funding to programs like the ones you and your peers attended.  

In time, this could lead to massive employment shortages in esthetics, potential deregulation, and more negative consequences. We want to make sure we protect esthetics education for generations to come. The easiest way for you to help make sure we do that is to report all your tips on your tax returns. 

The fight isn’t over yet, but for now, let’s celebrate!  

This is a huge win for the profession, and it would not have been possible without your grassroots support. Your voices can and do make a difference. Everyone who submitted public comment, shared our posts on social media, and called their congressional representatives played a key role in securing this delay for the profession. Thank you, from the bottom of our hearts, for your advocacy and passion. We couldn’t do what we do without you!