SECTION 1. COMMUNITY COLLEGE CAPACITY-BUILDING GRANT PROGRAM.

    Title III of the Higher Education Act of 1965 (20 U.S.C. 1051 et 
seq.) is amended--
            (1) by redesignating part F as part G; and
            (2) by inserting after part E the following:

                      ``PART F--COMMUNITY COLLEGES

``SEC. 371. COMMUNITY COLLEGE CAPACITY-BUILDING GRANT PROGRAM.

    ``(a) Program Authorized.--
            ``(1) In general.--From amounts appropriated under section 
        399(a)(6) for a fiscal year, the Secretary shall award grants 
        to eligible entities, on a competitive basis, for the purpose 
        of building capacity at community colleges to meet the 
        increased demand for community colleges while maintaining the 
        affordable tuition rates and the open-door policy that are the 
        hallmarks of the community college system.
            ``(2) Duration.--Grants awarded under this section shall be 
        for a period not to exceed 3 years.
    ``(b) Definitions.--In this section:
            ``(1) Community college.--The term `community college' 
        means a public institution of higher education (as defined in 
        section 101(a)) whose highest degree awarded is predominantly 
        the associate degree.
            ``(2) Eligible entity.--The term `eligible entity' means a 
        community college, or a consortium of 2 or more community 
        colleges, that demonstrates capacity challenges at not less 
        than 1 of the community colleges in the eligible entity, such 
        as--
                    ``(A) an identified workforce shortage in the 
                community served by the community college that will be 
                addressed by increased enrollment at the community 
                college;
                    ``(B) a wait list for a class or for a degree or a 
                certificate program;
                    ``(C) a faculty shortage;
                    ``(D) a significant enrollment growth;
                    ``(E) a significant projected enrollment growth;
                    ``(F) an increase in the student-faculty ratio;
                    ``(G) a shortage of laboratory space or equipment;
                    ``(H) a shortage of computer equipment and 
                technology;
                    ``(I) out-of-date computer equipment and 
                technology;
                    ``(J) a decrease in State or county funding or a 
                related budget shortfall; or
                    ``(K) another demonstrated capacity shortfall.
    ``(c) Application.--Each eligible entity desiring a grant under 
this section shall submit an application to the Secretary at such time, 
in such manner, and accompanied by such information as the Secretary 
may reasonably require by regulation.
    ``(d) Award Basis.--In awarding grants under subsection (a), the 
Secretary shall take into consideration--
            ``(1) the relative need for assistance under this section 
        of the community colleges;
            ``(2) the probable impact and overall quality of the 
        proposed activities on the capacity problem of the community 
        college;
            ``(3) providing an equitable geographic distribution of 
        grant funds under this section throughout the United States and 
        among urban, suburban, and rural areas of the United States; 
        and
            ``(4) providing an equitable distribution among small, 
        medium, and large community colleges.
    ``(e) Use of Funds.--Grant funds provided under subsection (a) may 
be used for activities that expand community college capacity, 
including--
            ``(1) the construction, maintenance, renovation, and 
        improvement of classroom, library, laboratory, and other 
        instructional facilities;
            ``(2) the purchase, rental, or lease of scientific or 
        laboratory equipment for educational purposes, including 
        instructional research purposes;
            ``(3) the development, improvement, or expansion of 
        technology;
            ``(4) preparation and professional development of faculty;
            ``(5) recruitment, hiring, and retention of faculty;
            ``(6) curriculum development and academic instruction;
            ``(7) the purchase of library books, periodicals, and other 
        educational materials, including telecommunications program 
        material;
            ``(8) the joint use of facilities, such as laboratories and 
        libraries; or
            ``(9) the development of partnerships with local businesses 
        to increase community college capacity.

``SEC. 372. APPLICABILITY.

    ``The provisions of part G (other than section 399) shall not apply 
to this part.''.

SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

    Section 399(a) of the Higher Education Act of 1965 (20 U.S.C. 
1068h(a)) is amended by adding at the end the following:
            ``(6) Part f.--There are authorized to be appropriated to 
        carry out part F, $500,000,000 for fiscal year 2006, and such 
        sums as may be necessary for each of the 4 succeeding fiscal 
        years.''.
Amends the Higher Education Act of 1965 to establish a community college capacity-building grant program.

Directs the Secretary of Education to award such grants, on a competitive basis, to individual community colleges or consortia of community colleges to meet capacity challenges.
A bill to build capacity at community colleges in order to meet increased demand for community college education while maintaining the affordable tuition rates and the open-door policy that are the hallmarks of the community college system.