II 

118TH CONGRESS 

2D SESSION S. 5594 

To amend the Higher Education Act of 1965 to support innovative, evidencebased approaches that improve the effectiveness and efficiency of postsecondary education for all students, to allow pay for success initiatives, 

to provide additional evaluation authority, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 18 (legislative day, DECEMBER 16), 2024 

Mr. YOUNG (for himself and Mr. BENNET) introduced the following bill; which 

was read twice and referred to the Committee on Health, Education, 

Labor, and Pensions 

A BILL 

To amend the Higher Education Act of 1965 to support 

innovative, evidence-based approaches that improve the 

effectiveness and efficiency of postsecondary education 

for all students, to allow pay for success initiatives, to 

provide additional evaluation authority, 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. 

4 This Act may be cited as the ‘‘Fund for Innovation 

5 and Success in Higher Education Act’’ or the ‘‘FINISH 

6 Act’’. 


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1 SEC. 2. INNOVATION GRANTS. 

2 Part B of title VII of the Higher Education Act of 

3 1965 (20 U.S.C. 1138 et seq.) is amended— 

4 (1) by redesignating section 745 as section 746; 

5 and 

6 (2) by inserting after section 744 the following: 

7 ‘‘SEC. 745. INNOVATION GRANTS. 

8 ‘‘(a) PURPOSES.—The purposes of this section are 

9 to— 

10 ‘‘(1) increase access to, retention in, and com11 pletion of postsecondary education opportunities for 

12 high-need students; 

13 ‘‘(2) identify and support the most effective 

14 interventions to increase postsecondary degree at15 tainment and career success of high-need students; 

16 and 

17 ‘‘(3) improve the efficiency of postsecondary 

18 education, including by reducing the percentage of 

19 students enrolling in postsecondary remediation and 

20 increasing the effectiveness of postsecondary remedi21 ation. 

22 ‘‘(b) DEFINITIONS.—In this section: 

23 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en24 tity’ means any of the following: 

25 ‘‘(A) A State educational agency. 


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1 ‘‘(B) A public or private nonprofit institu2 tion of higher education. 

3 ‘‘(C) The Bureau of Indian Education. 

4 ‘‘(D) A consortium of any of the entities 

5 described in subparagraphs (A) through (C). 

6 ‘‘(E) A partnership between a State edu7 cational agency or public or private nonprofit 

8 institution of higher education and one or more 

9 of the following: 

10 ‘‘(i) A nonprofit organization. 

11 ‘‘(ii) An intermediary organization. 

12 ‘‘(iii) A business. 

13 ‘‘(iv) A sponsor of a program receiv14 ing assistance under the National and 

15 Community Service Act of 1990 (42 

16 U.S.C. 12501 et seq.). 

17 ‘‘(v) A local educational agency. 

18 ‘‘(2) EVIDENCE-BASED.—The term ‘evidence19 based’ has the meaning given the term in section 

20 8101(21)(A) of the Elementary and Secondary Edu21 cation Act of 1965 (20 U.S.C. 7801(21)(A)). 

22 ‘‘(3) FIRST GENERATION COLLEGE STUDENT.— 

23 The term ‘first generation college student’ means— 

24 ‘‘(A) an individual both of whose parents 

25 did not complete a baccalaureate degree; or 


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1 ‘‘(B) in the case of any individual who reg2 ularly resided with and received support from 

3 only one parent, an individual whose only such 

4 parent did not complete a baccalaureate degree. 

5 ‘‘(4) HIGH-NEED STUDENT.—The term ‘high6 need student’— 

7 ‘‘(A) means a postsecondary student who 

8 is at risk of educational failure or otherwise in 

9 need of special assistance and support; and 

10 ‘‘(B) may include an adult learner, work11 ing student, part-time student, student from a 

12 low-income background, student of color, 

13 former foster youth, first generation college stu14 dent, student with a disability, student who is 

15 deaf or blind or visually impaired, or student 

16 who is an English learner. 

17 ‘‘(5) INTERMEDIARY ORGANIZATION.—The term 

18 ‘intermediary organization’ means an entity— 

19 ‘‘(A) with strong skills and a track record 

20 of success in— 

21 ‘‘(i) identifying effective interventions 

22 to address State, regional, or local prob23 lems; 

24 ‘‘(ii) managing high-quality subgrant 

25 processes; and 


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1 ‘‘(iii) providing technical assistance 

2 and support to subgrantees to ensure qual3 ity and improve outcomes; and 

4 ‘‘(B) that utilizes an evidence-based deci5 sion-making strategy when selecting high-per6 forming entities, on a competitive basis, to re7 ceive subgrants in order to validate and grow 

8 effective interventions. 

9 ‘‘(c) PROGRAM AUTHORIZED.— 

10 ‘‘(1) IN GENERAL.—From amounts made avail11 able to carry out this section, the Secretary shall 

12 award grants, on a competitive basis, to eligible enti13 ties to enable the eligible entities to create, develop, 

14 implement, replicate, or scale evidence-based and 

15 field-initiated innovations, including through pay for 

16 success initiatives (as defined in section 124(a)), in 

17 order to improve postsecondary access and comple18 tion or career success for high-need students. 

19 ‘‘(2) GRANTS.—The grants awarded under this 

20 section shall implement and evaluate programs, 

21 interventions, and strategies that address the pur22 poses described under subsection (a) and, to the ex23 tent practicable based on the strength of the applica24 tions, include— 


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1 ‘‘(A) early-phase grants to fund the devel2 opment, implementation, rigorous evaluation, 

3 and feasibility testing of a program, interven4 tion, or strategy supported by any level of evi5 dence described in paragraph (1), (2), or (3) of 

6 subsection (h), for the purpose of determining 

7 whether the program, intervention, or strategy 

8 can successfully improve, for high-need stu9 dents— 

10 ‘‘(i) access to, retention in, and com11 pletion of a postsecondary program of 

12 study; or 

13 ‘‘(ii) career success, as demonstrated 

14 by earnings and employment outcomes; 

15 ‘‘(B) mid-phase grants to fund the oper16 ation, implementation, and rigorous evaluation 

17 of a program, intervention, or strategy sup18 ported by a level of moderate evidence or high 

19 evidence (as described in paragraph (2) or (3) 

20 of subsection (h), respectively) that has been 

21 successfully implemented under an early-phase 

22 grant described in subparagraph (A) or another 

23 effort meeting similar criteria, for the purpose 

24 of measuring (using existing administrative 

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1 tiveness of the program, intervention, or strat2 egy; or 

3 ‘‘(C) expansion grants to fund the imple4 mentation and rigorous replication evaluation of 

5 a program, intervention, or strategy supported 

6 by a level of high evidence, as described in sub7 section (h)(3), that has been found to produce 

8 sizable, important impacts under a mid-phase 

9 grant described in subparagraph (B) or another 

10 effort meeting similar criteria, for the purposes 

11 of— 

12 ‘‘(i) implementing a multi-site evalua13 tion of such program, intervention, or 

14 strategy; 

15 ‘‘(ii) determining whether such im16 pacts can be successfully reproduced and 

17 sustained over time; 

18 ‘‘(iii) determining whether such im19 pacts can cause improvements on an im20 portant outcome in similar contexts and 

21 for similar populations; and 

22 ‘‘(iv) identifying the conditions in 

23 which the program, intervention, or strat24 egy is most effective. 

25 ‘‘(d) APPLICATION.— 


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1 ‘‘(1) IN GENERAL.—An eligible entity desiring a 

2 grant under this section shall submit to the Sec3 retary an application at such time, in such manner, 

4 and containing such information as the Secretary 

5 may require. 

6 ‘‘(2) CONTENTS.—An application submitted 

7 under paragraph (1) shall include— 

8 ‘‘(A) a description of the high-need stu9 dents that the eligible entity is proposing to 

10 serve through the grant; and 

11 ‘‘(B) a description of the outcome meas12 ures, including explicit outcome measures for 

13 high-need students, that the eligible entity will 

14 use, in addition to the outcome measures de15 scribed in subparagraphs (A) and (B) of sub16 section (f)(2), to evaluate the success of the 

17 grant. 

18 ‘‘(e) PRIORITY.—In awarding grants under this sec19 tion, the Secretary shall give priority to eligible entities 

20 that— 

21 ‘‘(1) propose to serve the largest number of 

22 high-need students; or 

23 ‘‘(2) serve a high proportion of students from 

24 one or more school districts with a school district lo25 cale code of 31, 32, 33, 41, 42, or 43, as determined 


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1 by the Secretary using the school district locale 

2 codes in effect on December 1, 2019. 

3 ‘‘(f) EVALUATIONS.—Each recipient of a grant under 

4 this section shall conduct, and submit to the Secretary, 

5 a rigorous, independent evaluation of— 

6 ‘‘(1) the effectiveness of the program, interven7 tion, or strategy carried out under such grant; 

8 ‘‘(2) the outcomes achieved by such grant, 

9 which shall include— 

10 ‘‘(A) the numbers and percentages, in the 

11 aggregate and disaggregated by each subgroup 

12 of students (as defined in section 1111(c)(2) of 

13 the Elementary and Secondary Education Act 

14 of 1965 (20 U.S.C. 6311(c)(2))), of— 

15 ‘‘(i) students supported by the grant 

16 entering, persisting in, and completing 

17 postsecondary education; 

18 ‘‘(ii) such students enrolling in reme19 dial coursework at the institution; 

20 ‘‘(iii) such students enrolling in and 

21 completing such remedial coursework; and 

22 ‘‘(iv) such students enrolling in and 

23 completing such remedial coursework and 

24 successfully completing first-year credit25 bearing coursework within 16 months of 


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1 enrollment in an institution of higher edu2 cation; 

3 ‘‘(B) with respect to students supported by 

4 the program who graduate postsecondary edu5 cation, in the aggregate and disaggregated by 

6 each subgroup of students (as defined in section 

7 1111(c)(2) of the Elementary and Secondary 

8 Education Act of 1965 (20 U.S.C. 

9 6311(c)(2)))— 

10 ‘‘(i) the employment outcomes for the 

11 students after graduation, including aver12 age earnings after graduation; and 

13 ‘‘(ii) the average amount of student 

14 debt burden for the students; and 

15 ‘‘(C) the recipient’s performance on any 

16 other outcome measures described in the appli17 cation in accordance with subsection (d)(2)(B); 

18 and 

19 ‘‘(3) the activities carried out under such grant. 

20 ‘‘(g) REPORTS.— 

21 ‘‘(1) IN GENERAL.—Not later than 2 years 

22 after the date of enactment of the Fund for Innova23 tion and Success in Higher Education Act, and 

24 every 2 years thereafter, the Secretary shall prepare 


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1 and submit to the authorizing committees a report 

2 on the grants carried out under this section. 

3 ‘‘(2) CONTENTS.—Each report issued under 

4 this subsection shall— 

5 ‘‘(A) include— 

6 ‘‘(i) information from all outcomes re7 ported in the evaluations submitted under 

8 subsection (f) for the reporting period eval9 uating the success of the grants supported 

10 under this section; and 

11 ‘‘(ii) the number of high-need stu12 dents served through the grants under this 

13 section during the reporting period; 

14 ‘‘(B) disaggregate all data on student out15 comes related to the grants by, at a minimum, 

16 race and income, and, to the extent practicable, 

17 any other relevant student characteristic, as de18 termined by the Secretary; and 

19 ‘‘(C) consider— 

20 ‘‘(i) how the tiered-evidence grant 

21 structure described in subsection (c)(2) can 

22 be applied to other grant programs author23 ized under this Act, in order to strengthen 

24 those programs; and 


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1 ‘‘(ii) how the evidence generated by 

2 the programs, interventions, or strategies 

3 supported by grants under this section can 

4 inform how to carry out other grants au5 thorized under this Act. 

6 ‘‘(3) PUBLIC AVAILABILITY.—The Secretary 

7 shall make each report issued under this subsection 

8 available to the public through the website of the 

9 Department. 

10 ‘‘(h) LEVEL OF EVIDENCE STANDARDS.—The levels 

11 of evidence described in this subsection are the following: 

12 ‘‘(1) PROMISING EVIDENCE.—A program, inter13 vention, or strategy is supported by a promising 

14 level of evidence if such program, innovation, or 

15 strategy demonstrates a statistically significant ef16 fect on improving student outcomes or other relevant 

17 outcomes based on one or more well-designed and 

18 well-implemented correlational studies (with statis19 tical controls for selection bias). 

20 ‘‘(2) MODERATE EVIDENCE.—A program, inter21 vention, or strategy is supported by a moderate level 

22 of evidence if such program, intervention, or strat23 egy demonstrates a statistically significant effect on 

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1 comes based on one or more well-designed and well2 implemented quasi-experimental studies. 

3 ‘‘(3) HIGH EVIDENCE.—A program, interven4 tion, or strategy is supported by a high level of evi5 dence if such program, intervention, or strategy 

6 demonstrates a statistically significant effect on im7 proving student outcomes or other relevant outcomes 

8 based on one or more well-designed and well-imple9 mented randomized control experimental studies.’’. 

10 SEC. 3. OPEN EDUCATIONAL RESOURCES. 

11 Section 741(a) of the Higher Education Act of 1965 

12 (20 U.S.C. 1138(a)) is amended— 

13 (1) in paragraph (12), by striking ‘‘and’’ after 

14 the semicolon; 

15 (2) in paragraph (13), by striking the period 

16 and inserting ‘‘; and’’; and 

17 (3) by adding at the end the following: 

18 ‘‘(14) making all forms of postsecondary in19 structional content widely available, which may in20 clude the use of open educational resources (defined, 

21 for purpose of this paragraph, as teaching, learning, 

22 or research resources that reside in the public do23 main or have been released under a copyright license 

24 that permits their free use, reuse, modification, and 

25 sharing with others).’’. 


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1 SEC. 4. PAY FOR SUCCESS INITIATIVES. 

2 Part B of title I of the Higher Education Act of 1965 

3 (20 U.S.C. 1011 et seq.) is amended by adding at the end 

4 the following: 

5 ‘‘SEC. 124. PAY FOR SUCCESS INITIATIVES. 

6 ‘‘(a) DEFINITIONS.—In this section: 

7 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en8 tity’ means a partnership between— 

9 ‘‘(A) a private entity (which may include a 

10 private nonprofit entity); and 

11 ‘‘(B) an institution of higher education, a 

12 Federal, State, or local public entity, or a Trib13 al entity. 

14 ‘‘(2) PAY FOR SUCCESS INITIATIVE.— 

15 ‘‘(A) IN GENERAL.—The term ‘pay for 

16 success initiative’ means a performance-based 

17 grant, contract, or other agreement— 

18 ‘‘(i) between an eligible entity and the 

19 Secretary or a grant recipient, as author20 ized under subsection (b)(1); 

21 ‘‘(ii) in which— 

22 ‘‘(I) a commitment is made to 

23 pay the eligible entity for improved 

24 outcomes, including meaningful out25 put measures strongly correlated to 

26 outcomes, that result in increased 


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1 public value or social benefit to stu2 dents and the public sector, such as 

3 increased effectiveness in improving 

4 outcomes, direct cost savings or cost 

5 avoidance, or increased public rev6 enue; and 

7 ‘‘(II) the entity providing the 

8 funds under the grant, contract, or 

9 agreement imposes minimal adminis10 trative requirements to allow for max11 imum flexibility to achieve increased 

12 public value and social benefit; and 

13 ‘‘(iii) that requires— 

14 ‘‘(I) a description of how the pro15 posed intervention is based on evi16 dence of effectiveness, which may be a 

17 study not exclusively developed for the 

18 specific grant, contract, or other 

19 agreement; 

20 ‘‘(II) a rigorous, third-party— 

21 ‘‘(aa) validation of outcomes 

22 achieved using administrative 

23 data; or 

24 ‘‘(bb) evaluation that uses 

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1 mental design or other research 

2 methodologies that allow for the 

3 strongest possible causal infer4 ences to determine whether the 

5 initiative has met its proposed 

6 outcomes; 

7 ‘‘(III) an annual, publicly avail8 able report on the progress of the ini9 tiative; and 

10 ‘‘(IV) that payments be made to 

11 the recipient of the grant, contract, or 

12 agreement only when agreed-upon 

13 outcomes are achieved, except as pro14 vided under paragraph (2) or (3) of 

15 subsection (b). 

16 ‘‘(B) EXCLUSION.—The term ‘pay for suc17 cess initiative’ does not include any initiative 

18 that— 

19 ‘‘(i) reduces the benefits to a student 

20 or the obligations of an entity under this 

21 Act, the Rehabilitation Act of 1973 (29 

22 U.S.C. 701 et seq.), the Americans with 

23 Disabilities Act of 1990 (42 U.S.C. 12101 

24 et seq.), the Individuals with Disabilities 


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1 Education Act (20 U.S.C. 1400 et seq.), or 

2 any other law; or 

3 ‘‘(ii) reduces services that an indi4 vidual is entitled to receive under Federal, 

5 State, or local law. 

6 ‘‘(b) PAY FOR SUCCESS INITIATIVE AUTHORITY.— 

7 ‘‘(1) IN GENERAL.—Notwithstanding any other 

8 provision of this Act and except as provided under 

9 subsection (c)— 

10 ‘‘(A) any recipient of a grant under this 

11 Act may request to use grant funds to carry out 

12 a pay for success initiative that accomplishes 

13 the objectives of the grant and meets all re14 quirements of the grant (except to the extent a 

15 requirement is specifically modified by the pay 

16 for success initiative), if such use is proposed in 

17 the application or plan submitted for such 

18 grant; and 

19 ‘‘(B) the Secretary may approve not more 

20 than 5 pilot demonstrations each fiscal year 

21 from the grant applications or plans that con22 tain a request to carry out a pay for success 

23 initiative. 

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1 retary, or a grant recipient, is authorized to carry 

2 out a pay for success initiative under paragraph (1), 

3 the Secretary or grant recipient may use funds avail4 able for the pay for success initiative— 

5 ‘‘(A) to develop the description or conduct 

6 the study required under subsection 

7 (a)(2)(A)(iii)(I) or the validation of outcomes or 

8 evaluation required under subsection 

9 (a)(2)(A)(iii)(II); or 

10 ‘‘(B) to provide funds to the entity car11 rying out the pay for success initiative for the 

12 costs of the initial costs associated with starting 

13 the initiative. 

14 ‘‘(3) USE OF REMAINING FUNDS.—Notwith15 standing any other provision of law, if the Secretary 

16 or a grant recipient is carrying out a pay for success 

17 initiative under paragraph (1) and the pay for suc18 cess initiative has met or exceeded its proposed out19 comes, the Secretary or grant recipient may use any 

20 funds remaining at the conclusion of the pay for 

21 success initiative to enter into an additional agree22 ment, through a competitive process, with an eligible 

23 entity to expand capacity under the pay for success 

24 initiative or to carry out additional pilot demonstra25 tions of pay for success initiatives. 


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1 ‘‘(c) STUDENT PROTECTIONS.— 

2 ‘‘(1) NO NEGATIVE IMPACT ON STUDENT AID.— 

3 A pay for success initiative shall not be supported 

4 with funds under this Act if the pay for success ini5 tiative would adversely affect the funding of, or stu6 dent access to, individual student aid awards made 

7 under section 401 or any other program supported 

8 under this Act. 

9 ‘‘(2) NONINCLUSION IN DETERMINATION OF

10 NEED.—A grant or aid provided directly to a stu11 dent under a pay for success initiative supported 

12 with funds under this Act shall not be considered in 

13 determining that student’s need for grant, loan, or 

14 work assistance under title IV of this Act, except 

15 that in no case shall the total amount of student fi16 nancial assistance awarded to a student through a 

17 pay for success initiative and under title IV exceed 

18 that student’s cost of attendance, as defined in sec19 tion 472. 

20 ‘‘(d) AVAILABILITY OF FUNDS.—Notwithstanding 

21 any other provision of this Act, any funds made available 

22 for a fiscal year to an entity for a pay for success initiative 

23 authorized under this section shall remain available until 

24 expended.’’. 


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1 SEC. 5. EVALUATION. 

2 Part B of title I of the Higher Education Act of 1965 

3 (20 U.S.C. 1011 et seq.), as amended by section 4, is fur4 ther amended by adding at the end the following: 

5 ‘‘SEC. 125. EVALUATION AUTHORITY. 

6 ‘‘(a) EVALUATION RESERVATION.— 

7 ‘‘(1) IN GENERAL.—Notwithstanding any other 

8 provision of this Act, the Secretary, in consultation 

9 with the Director of the Institute of Education 

10 Sciences, may, for each fiscal year, reserve not more 

11 than 1 percent of the amount appropriated for each 

12 discretionary grant program authorized under this 

13 Act (except for the Federal Pell Grant program 

14 under section 401) in order to rigorously and inde15 pendently evaluate the effectiveness and efficiency of 

16 the outcomes of all programs authorized under this 

17 Act. 

18 ‘‘(2) EFFECT ON OTHER REQUIREMENTS.—The 

19 amount reserved under paragraph (1) shall be in ad20 dition to any other amounts reserved for evaluation 

21 under this Act. 

22 ‘‘(b) EVALUATION PLAN.—On a biennial basis, the 

23 Director of the Institute of Education Sciences shall de24 velop, submit to the authorizing committees, and make 

25 publicly available on the website of the Department, an 

26 evaluation plan for the next 2 fiscal years that— 


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1 ‘‘(1) describes the specific activities that will be 

2 carried out under subsection (a) for the 2-year pe3 riod applicable to the plan, and the timelines of such 

4 activities; 

5 ‘‘(2) contains the results of the activities car6 ried out under subsection (a) for the most recent 2- 

7 year period; and 

8 ‘‘(3) describes how programs authorized under 

9 this Act will be regularly evaluated, including the 

10 outcome measures to be used to evaluate each pro11 gram. 

12 ‘‘(c) POOLING AUTHORITY.—Notwithstanding any 

13 other provision of this Act, the Secretary, in consultation 

14 with the Director of the Institute of Education Sciences— 

15 ‘‘(1) may consolidate the funds reserved under 

16 subsection (a) for purposes of carrying out the ac17 tivities described in subsection (b); and 

18 ‘‘(2) shall not be required to evaluate each pro19 gram authorized under this Act each year. 

20 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec21 tion shall be construed to conflict with or supercede any 

22 other evaluation requirement for a specific program or ac23 tivity authorized under this Act.’’. 

Æ 


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