Department of Education

FREE COMMUNITY COLLEGE

Fiscal Year 2025 Budget Proposal

CONTENTS

Page

Free Community College.......................................................................................................... 1

Advancing Affordability for Students......................................................................................... 3
FREE COMMUNITY COLLEGE

1 

Free Community College

(Proposed legislation) 

(dollars in thousands)

FY 2025 Authorization: To be determined

Mandatory Budget Authority:0F

1

Period of 2024 Annualized CR 2025 Request Change 

$0 $90,000,000 +$90,000,000

PROGRAM DESCRIPTION

Early in the 20th century, the expansion of access to free public high school in the United States 

set a new global standard. Direct public investment in our children’s future propelled the 

Nation’s economic growth and enhanced our global competitiveness. Now, mounting evidence 

suggests that 13 years of school is no longer sufficient to prepare our students for success in 

today’s economy. The number of jobs requiring some level of education beyond high school is 

expected to grow more rapidly in the next decade than those that do not. Sustained economic 

growth, global competitiveness and our students’ economic security require that we provide 

every student the opportunity to obtain a postsecondary degree or certificate. 

The Administration’s Free Community College proposal will offer two years of free community 

college to all students, including Dreamers. The COVID-19 crisis led to a steep community 

college enrollment decline, particularly for students from low-income backgrounds and students 

of color. Since 2022, enrollment has started to rebound. But even before the pandemic, cost 

was a barrier to attending and completing community college for many Americans. 

Free Community College is a proposed mandatory grant program for States, territories, and 

Tribal Colleges and Universities (TCUs) that would ensure eligible first-time students and 

workers wanting to reskill can enroll in a community college to earn a degree or credential for 

free. Students enrolled in a degree or certificate program, attending at least half-time, and 

making satisfactory academic progress will have tuition and fees eliminated. Students can use 

the benefit over three years and, if circumstances warrant, up to four years, with the recognition 

that many students’ other financial responsibilities can make full-time enrollment cost 

prohibitive. 

This proposal would create a new partnership with States to help them waive tuition for 

students, while promoting key reforms to help more students complete at least two years of 

college and help meet the demands of a growing global economy. To participate in the program, 

a State, Territory, or TCU must waive tuition and fees at community colleges on a first dollar 

basis for eligible students. The Federal government will provide at least 75 percent of the cost, 

and 90 percent for TCUs. States and TCUs must invest the remaining share of the cost but can 

use relevant state financial aid toward the match. States receiving a grant must promote 

1 The request is $90.0 billion over 10 years in mandatory budget authority to support Free Community College.
FREE COMMUNITY COLLEGE

Free Community College

2 

alignment between their secondary, 2-year, and 4-year postsecondary education systems, 

including to help facilitate transfers between schools. States must also pursue promising and 

evidence-based institutional reforms at community colleges to improve student outcomes. 

States may retain a small portion of their allocation for state-wide quality improvements that help 

advance program completion and improve student outcomes. States must commit to conducting

an equity audit on State higher education financing, strengthening longitudinal data systems, 

including the integration of data from 2-year and 4-year institutions with postsecondary 

employment and wage data, and maintaining state fiscal support for higher education.

FY 2025 BUDGET PROPOSAL

For fiscal year 2025, the Administration requests $90.0 billion over 10 years in mandatory 

budget authority to support Free Community College. In 2025, the Administration, States, and 

institutions would begin preparing to implement this new mandatory program, with the program 

officially launching the next year. Funds are provided to create a new partnership with States, 

territories, and TCUs to make two years of community college free for eligible first-time students 

and workers wanting to reskill. The program would operate as a first-dollar program, in order to 

allow students to use Pell Grants and other Federal, State, and institutional aid to help them 

cover expenses beyond tuition and fees. Students can use the benefit over three years and, if 

circumstances warrant, up to four years, recognizing that many students’ lives and other 

responsibilities can make full-time enrollment difficult. 

PROGRAM PERFORMANCE INFORMATION

This section presents selected program performance information, including, for example, GPRA 

goals, objectives, measures, and performance targets and data; and an assessment of the 

progress made toward achieving program results. Achievement of results is based on the 

resources requested in fiscal year 2025 and future years, as well as the resources and efforts 

invested by those served by this program. Free Community College has not yet been funded 

and therefore program performance information is not available.
FREE COMMUNITY COLLEGE

3 

Advancing Affordability for Students

(Proposed legislation) 

(dollars in thousands)

FY 2025 Authorization: To be determined

Mandatory Budget Authority:1F

1

Period of 2024 Annualized CR 2025 Request Change 

$0 $30,000,000 +$30,000,000

PROGRAM DESCRIPTION

Historically Black Colleges and Universities (HBCUs), Minority-Serving Institutions (MSIs), and 

TCUs play a unique role in creating and advancing educational and economic opportunities for 

many of our nation’s first-generation, low-income, and underrepresented students. Their role is 

essential to building our economy and strengthening the American middle class. Yet costs 

continue to be a barrier to attending and completing college for many of the students these 

institutions serve. The Administration’s Advancing Affordability for Students program will make a 

historic investment in students being able to access and complete their education at an HBCU,

MSI, or TCU. Specifically, it will provide two years of subsidized tuition for students from families 

earning less than $125,000 enrolled in a participating 4-year HBCU, MSI, or TCU. Institutions 

will receive an annual grant based on the cost of reducing tuition and fees and the number of 

eligible students. This investment, along with the Administration’s other affordability and 

completion proposals, will encourage more students to successfully complete a bachelor’s 

degree by enrolling as new students (direct pathways) or transferring from community college 

(transfer pathways).

Public and private, non-profit 4-year institutions can participate in this program. To be eligible, 

an institution must meet the statutory definition of an HBCU, MSI, or TCU type and must be 

designated by the Secretary as such. An eligible institution would also need to serve a 

significant share of Pell students (at least 35 percent share of enrollment) and commit to 

maintaining or adopting evidence-based institutional reforms designed to improve student 

opportunities and outcomes. 

Eligible students are those who are enrolled at an eligible HBCU, MSI, or TCU on at least a halftime basis, who maintain satisfactory academic progress, and who have an annual family 

income below $125,000, including Dreamers. 

1 The request is $30.0 billion over 10 years in mandatory budget authority to support Advancing Affordability for 

Students.
FREE COMMUNITY COLLEGE

Advancing Affordability for Students

4 

FY 2025 BUDGET PROPOSAL

For fiscal year 2025, the Administration requests $30.0 billion over 10 years in mandatory 

budget authority to support Advancing Affordability for Students. In 2025, the Department would 

work with institutions to begin preparing to implement this new mandatory program, with the 

program officially launching the next year. Funds are provided to eligible 4-year HBCUs, MSIs, 

or TCUs to provide two years of subsidized tuition up to $4,500 per year for students from 

families earning less than $125,000. The program would operate as a first-dollar program, in

order to allow students to maximize use of Pell Grants and other Federal, State, and institutional 

aid for necessary expenses beyond tuition and fees. 

PROGRAM PERFORMANCE INFORMATION

This section presents selected program performance information, including, for example, GPRA 

goals, objectives, measures, and performance targets and data; and an assessment of the 

progress made toward achieving program results. Achievement of results is based on the 

resources requested in fiscal year 2025 and future years, as well as the resources and efforts 

invested by those served by this program. Advancing Affordability for Students has not yet been 

funded and therefore program performance information is not available.