I 

114TH CONGRESS 

2D SESSION H. R. 4386 

To amend the Higher Education Act of 1965 to make certain improvements 

in the Federal Pell Grant Program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 13, 2016 

Mr. KILMER introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined 

by the Speaker, in each case for consideration of such provisions as fall 

within the jurisdiction of the committee concerned 

A BILL 

To amend the Higher Education Act of 1965 to make certain 

improvements in the Federal Pell Grant Program, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Pathways to an Affordable Education Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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Sec. 2. Increasing the Federal Pell Grant and adding a cost of living adjustment. 

Sec. 3. Funding the Federal Pell Grant program through mandatory appropriations. 

Sec. 4. Mandatory Federal Pell Grant increases. 

Sec. 5. Federal Pell Grant duration limit. 

Sec. 6. Restoration of eligibility for year-round Federal Pell Grants. 

Sec. 7. Expansion of Pell Grant exclusion from gross income. 

Sec. 8. Federal Pell Grant early communication. 

Sec. 9. Contribution from adjusted available income. 

1 SEC. 2. INCREASING THE FEDERAL PELL GRANT AND ADD2 ING A COST OF LIVING ADJUSTMENT. 

3 (a) IN GENERAL.—Section 401(b)(2)(A) of the High4 er Education Act of 1965 (20 U.S.C. 1070a(b)(2)(A)) is 

5 amended by striking clauses (i) and (ii) and inserting the 

6 following: 

7 ‘‘(i)(I) for award year 2017–2018, 

8 $9,139; and 

9 ‘‘(II) for award year 2018–2019 and 

10 each subsequent award year, the amount 

11 of the maximum Federal Pell Grant deter12 mined under this clause for the imme13 diately preceding award year, increased by 

14 a percentage equal to the estimated per15 centage increase, if any, in the Consumer 

16 Price Index (as determined by the Sec17 retary, using the definition in section 

18 478(f)) for the most recent calendar year 

19 ending prior to the beginning of that 

20 award year; plus 


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1 ‘‘(ii) any additional amount specified 

2 for the maximum Federal Pell Grant in 

3 the last enacted appropriation Act applica4 ble to that award year, less’’. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 subsection (a) shall apply with respect to Federal Pell 

7 Grants awarded under section 401 of the Higher Edu8 cation Act of 1965 (20 U.S.C. 1070a) for award year 

9 2017–2018 and each succeeding award year. 

10 SEC. 3. FUNDING THE FEDERAL PELL GRANT PROGRAM 

11 THROUGH MANDATORY APPROPRIATIONS. 

12 (a) IN GENERAL.—Section 401(b) of the Higher 

13 Education Act of 1965 (20 U.S.C. 1070a(b)) is amend14 ed— 

15 (1) in paragraph (2), by adding at the end the 

16 following: 

17 ‘‘(C)(i) For fiscal year 2017 and each suc18 ceeding fiscal year, there are appropriated, out of 

19 any money in the Treasury not otherwise appro20 priated, such sums as may be necessary to provide, 

21 in combination with any amounts separately appro22 priated under subparagraph (A)(ii), Federal Pell 

23 Grants under this section in the amount specified in 

24 subparagraph (A) to all eligible students. 


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1 ‘‘(ii) The amounts made available by clause (i) 

2 for any fiscal year shall be available beginning on 

3 October 1 of that fiscal year, and shall remain avail4 able through September 30 of the succeeding fiscal 

5 year.’’; and 

6 (2) by striking paragraph (7). 

7 (b) EFFECTIVE DATE.—The amendments made by 

8 subsection (a) shall apply with respect to Federal Pell 

9 Grants awarded under section 401 of the Higher Edu10 cation Act of 1965 (20 U.S.C. 1070a) for award year 

11 2017–2018 and each succeeding award year. 

12 SEC. 4. MANDATORY FEDERAL PELL GRANT INCREASES. 

13 (a) INCREASES.—Section 401(b) of the Higher Edu14 cation Act of 1965 (20 U.S.C. 1070a(b)) (as amended by 

15 this Act) is further amended— 

16 (1) in paragraph (2)— 

17 (A) by striking ‘‘(2)’’ and all that follows 

18 through ‘‘The amount of the Federal Pell 

19 Grant’’ and inserting ‘‘(2)(A) The amount of 

20 the Federal Pell Grant’’; 

21 (B) by moving the margins of subpara22 graph (A) two ems to the left; and 

23 (C) in subparagraph (A)— 

24 (i) by redesignating clause (iii) as 

25 clause (iv); and 


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1 (ii) by inserting after clause (ii) the 

2 following new clause (iii): 

3 ‘‘(iii) the amount of the increase calculated 

4 under paragraph (7), less’’; and 

5 (2) by adding at the end the following new 

6 paragraph: 

7 ‘‘(7)(A) The amount of the maximum Federal Pell 

8 Grant for which an eligible student is eligible during an 

9 award year, as specified in paragraph (2)(A) for that 

10 award year, shall be increased by the difference between— 

11 ‘‘(i) the average total cost of attendance for 

12 first-time, full-time undergraduate students in the 

13 United States at public 2-year institutions for stu14 dents living on-campus, as determined by the Na15 tional Center for Education Statistics, for the last 

16 academic year preceding the beginning of the fiscal 

17 year for which the increase is made; and 

18 ‘‘(ii) the amount of the maximum Federal Pell 

19 Grant for which a student is eligible during an 

20 award year, as specified in paragraph (2)(A) for 

21 that award year. 

22 ‘‘(B) For purposes of subparagraph (A), an eligible 

23 student is an otherwise eligible student who has a negative 

24 or zero estimated family contribution.’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 subsection (a) shall apply with respect to Federal Pell 

3 Grants awarded under section 401 of the Higher Edu4 cation Act of 1965 (20 U.S.C. 1070a) for award year 

5 2017–2018 and each succeeding award year. 

6 SEC. 5. FEDERAL PELL GRANT DURATION LIMIT. 

7 (a) IN GENERAL.—Section 401(c)(5) of the Higher 

8 Education Act of 1965 (20 U.S.C. 1070a(c)(5)) is amend9 ed by striking ‘‘12 semesters’’ and inserting ‘‘15 semes10 ters’’ each place the term appears. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 subsection (a) shall apply with respect to Federal Pell 

13 Grants awarded under section 401 of the Higher Edu14 cation Act of 1965 (20 U.S.C. 1070a) for award year 

15 2017–2018 and each succeeding award year. 

16 SEC. 6. RESTORATION OF ELIGIBILITY FOR YEAR-ROUND 

17 FEDERAL PELL GRANTS. 

18 (a) IN GENERAL.—Section 401(b) of the Higher 

19 Education Act of 1965 (20 U.S.C. 1070a(b)) (as amended 

20 by this Act) is further amended by adding at the end the 

21 following: 

22 ‘‘(8) YEAR-ROUND FEDERAL PELL GRANT STU23 DENTS.— 

24 ‘‘(A) IN GENERAL.—Notwithstanding any 

25 other provision of this subsection, the Secretary 


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1 shall award, to an eligible student who meets 

2 the requirements in subparagraph (B) who has 

3 received a Federal Pell Grant for an award year 

4 and is enrolled in a program of study for one 

5 or more additional payment periods during the 

6 same award year that are not otherwise covered 

7 by the student’s Federal Pell Grant, an addi8 tional Federal Pell Grant for the additional 

9 payment periods. 

10 ‘‘(B) ELIGIBILITY.—In order to be eligible 

11 to receive the additional Federal Pell Grant for 

12 an award year that is described in subpara13 graph (A), a student shall, in addition to meet14 ing all eligibility requirements for the receipt of 

15 a Federal Pell Grant— 

16 ‘‘(i) be enrolled on at least a half-time 

17 basis for a period of more than one aca18 demic year, or more than 2 semesters or 

19 the equivalent of 2 semesters, during a sin20 gle award year; and 

21 ‘‘(ii) be enrolled in a program of in22 struction at an institution of higher edu23 cation for which the institution awards an 

24 associate or baccalaureate degree or a cer25 tificate. 


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1 ‘‘(C) AMOUNTS.—In the case of a student 

2 receiving more than one Federal Pell Grant in 

3 a single award year under subparagraph (A), 

4 the total amount of the Federal Pell Grants 

5 awarded to such student for the award year 

6 shall not exceed an amount equal to 150 per7 cent of the amount of the maximum Federal 

8 Pell Grant for which such student is eligible, as 

9 specified in paragraph (2)(A) for that award 

10 year. 

11 ‘‘(D) INCLUSION IN DURATION LIMIT.— 

12 Any period of study covered by a Federal Pell 

13 Grant awarded under subparagraph (A) shall 

14 be included in determining a student’s duration 

15 limit under subsection (c)(5). 

16 ‘‘(9) CROSSOVER PERIOD.—In any case where 

17 an eligible student is receiving a Federal Pell Grant 

18 for a payment period that spans 2 award years, the 

19 Secretary shall allow the eligible institution in which 

20 the student is enrolled to determine the award year 

21 to which the additional period shall be assigned.’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 subsection (a) shall take effect on July 1, 2017. 


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1 SEC. 7. EXPANSION OF PELL GRANT EXCLUSION FROM 

2 GROSS INCOME. 

3 (a) IN GENERAL.—Paragraph (1) of section 117(b) 

4 of the Internal Revenue Code of 1986 is amended by strik5 ing ‘‘received by an individual’’ and all that follows and 

6 inserting ‘‘received by an individual— 

7 ‘‘(A) as a scholarship or fellowship grant 

8 to the extent the individual establishes that, in 

9 accordance with the conditions of the grant, 

10 such amount was used for qualified tuition and 

11 related expenses, or 

12 ‘‘(B) as a Federal Pell Grant under section 

13 401 of the Higher Education Act of 1965 (as 

14 amended by the Pathways to an Affordable 

15 Education Act).’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2015. 

19 SEC. 8. FEDERAL PELL GRANT EARLY COMMUNICATION. 

20 Section 485E of the Higher Education Act of 1965 

21 (20 U.S.C. 1092f) is amended— 

22 (1) in subsection (a), by inserting ‘‘elementary 

23 schools,’’ before ‘‘secondary schools,’’; and 

24 (2) in subsection (b)— 


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1 (A) in paragraph (1)(A), by striking ‘‘stu2 dents’’ and inserting ‘‘students and parents of 

3 students’’; and 

4 (B) in paragraph (2)— 

5 (i) in the paragraph heading, by in6 serting ‘‘ELEMENTARY AND’’ before ‘‘SEC7 ONDARY’’; 

8 (ii) by inserting ‘‘elementary schools,’’ 

9 after ‘‘financial aid,’’; 

10 (iii) by striking ‘‘notify students in 

11 secondary school’’ and inserting ‘‘notify 

12 students in elementary or secondary 

13 school’’; 

14 (iv) by striking ‘‘students’ junior year 

15 of secondary school’’ and inserting ‘‘stu16 dents’ sixth grade year of school’’; and 

17 (v) by striking ‘‘students in secondary 

18 school’’ and inserting ‘‘students in sixth 

19 grade’’. 

20 SEC. 9. CONTRIBUTION FROM ADJUSTED AVAILABLE IN21 COME. 

22 (a) AMENDMENTS.— 

23 (1) DEPENDENT STUDENTS.—Section 475(b) of 

24 the Higher Education Act of 1965 (20 U.S.C. 

25 1087oo(b)) is amended in the matter following paraVerDate Sep 11 2014 00:48 Jan 14, 2016 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H4386.IH H4386

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1 graph (3), by striking ‘‘except that’’ and inserting 

2 ‘‘except that for purposes other than subpart 1 of 

3 part A of this title’’. 

4 (2) INDEPENDENT STUDENTS WITHOUT DE5 PENDENTS.—Section 476(a) of the Higher Edu6 cation Act of 1965 (20 U.S.C. 1087pp(a)) is amend7 ed in the matter following paragraph (3), by striking 

8 ‘‘except that’’ and inserting ‘‘except that for pur9 poses other than subpart 1 of part A of this title’’. 

10 (3) INDEPENDENT STUDENTS WITH DEPEND11 ENTS.—Section 477(a) of the Higher Education Act 

12 of 1965 (20 U.S.C. 1087qq(a)) is amended the mat13 ter following paragraph (4), by striking ‘‘except 

14 that’’ and inserting ‘‘except that for purposes other 

15 than subpart 1 of part A of this title’’. 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 subsection (a) shall apply with respect to award year 

18 2017–2018 and each succeeding award year. 

Æ 


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