CNET News.Com reports that Senator Harry Reid has withdrawn his original Amendment to the Higher Education Reauthorization Act, which met with opposition from EDUCAUSE and others, that would, among other provisions, have forced higher education institutions to prove to the Department of Education that they had "developed a plan for implementing a technology-based deterrent to prevent the illegal downloading or peer-to-peer distribution of intellectual property."
Instead, Reid successfully added an amendment that requires higher education institutions to inform students "that unauthorized distribution of copyrighted material on the institution’s information technology systems, including engaging in unauthorized peer-to-peer file sharing, may subject the students to civil and criminal penalties."
Ars Technica and EFF Deep Links have additional coverage of this development.