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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3086 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  1st Session
                                S. 3086

   To amend the Higher Education Act of 1965 to establish grants for 
tuition-free community colleges, student success grants, and grants for 
   Historically Black Colleges and Universities, Tribal Colleges and 
    Universities, and Minority-Serving Institutions, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            October 19, 2023

 Ms. Baldwin (for herself, Ms. Hirono, Mr. Padilla, Ms. Klobuchar, Mr. 
Durbin, Mr. Van Hollen, Mr. Cardin, Mrs. Murray, Ms. Duckworth, and Mr. 
Lujan) 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 establish grants for 
tuition-free community colleges, student success grants, and grants for 
   Historically Black Colleges and Universities, Tribal Colleges and 
    Universities, and Minority-Serving Institutions, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``America's College Promise Act of 
2023''.

          TITLE I--GRANTS FOR TUITION-FREE COMMUNITY COLLEGES

SEC. 101. PROGRAM AUTHORIZED.

    Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
seq.) is amended by adding at the end the following:

     ``PART J--AMERICA'S COLLEGE PROMISE FEDERAL-STATE PARTNERSHIP

         ``Subpart 1--Grants for Tuition-free Community College

``SEC. 499A. IN GENERAL.

    ``From amounts appropriated under section 499G for any fiscal year, 
the Secretary shall award grants to eligible States and eligible Tribal 
Colleges and Universities to pay the Federal share of expenditures 
needed to carry out the activities and services described in section 
499E.

``SEC. 499B. FEDERAL SHARE; NON-FEDERAL SHARE.

    ``(a) Federal Share.--
            ``(1) In general.--
                    ``(A) Amount.--Subject to paragraph (2), the amount 
                of the Federal share of a grant under this subpart 
                shall be based on a formula, determined by the 
                Secretary, that provides, for each eligible student 
                enrolled in a community college operated or controlled 
                by the State or in an eligible Tribal College or 
                University, a per-student amount that is equal to the 
                applicable percent described in subparagraph (B) of--
                            ``(i) for the 2024-2025 award year, the 
                        average unweighted resident community college 
                        tuition and fees per student in all States for 
                        the most recent year for which data are 
                        available; and
                            ``(ii) for each subsequent award year, the 
                        amount determined under this paragraph for the 
                        preceding award year, increased by the lesser 
                        of--
                                    ``(I) a percentage equal to the 
                                estimated percentage increase in the 
                                Consumer Price Index (as determined by 
                                the Secretary) since the date of such 
                                determination; or
                                    ``(II) 3 percent.
                    ``(B) Applicable percent.--The applicable percent 
                for a State receiving a grant under this subpart shall 
                be--
                            ``(i) for the 2024-2025 award year, 100 
                        percent;
                            ``(ii) for the 2025-2026 award year, 95 
                        percent;
                            ``(iii) for the 2026-2027 award year, 90 
                        percent;
                            ``(iv) for the 2027-2028 award year, 85 
                        percent; and
                            ``(v) for the 2028-2029 award year and each 
                        subsequent award year, 80 percent.
            ``(2) Tribal colleges and universities.--The amount of the 
        Federal share for an eligible Tribal College or University 
        receiving a grant under this subpart shall be the greater of--
                    ``(A) 100 percent of the per-student amount 
                determined in accordance with clause (i) or (ii) of 
                paragraph (1)(A), as applicable, with respect to 
                eligible students enrolled in such eligible Tribal 
                College or University (based on full-time equivalent 
                enrollment); or
                    ``(B) the amount that is 100 percent of the total 
                amount needed to set tuition and fees to $0 for all 
                eligible students enrolled in such eligible Tribal 
                College or University for the 2023-2024 award year, 
                increased by the percentage increase in the Consumer 
                Price Index (as determined by the Secretary) between 
                July 1, 2023, and the applicable award year, and 
                adjusted to reflect the enrollment in such eligible 
                Tribal College or University for such applicable award 
                year.
    ``(b) State Share.--
            ``(1) Formula.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                State share of a grant under this subpart for each 
                fiscal year shall be the amount needed to pay the 
                applicable percent described in subparagraph (B) of the 
                average unweighted resident community college tuition 
                and fees per student in the 2024-2025 award year for 
                all eligible students in the State for such award year.
                    ``(B) Applicable percent.--The applicable 
                percentage shall be--
                            ``(i) for the 2024-2025 award year, 0 
                        percent;
                            ``(ii) for the 2025-2026 award year, 5 
                        percent;
                            ``(iii) for the 2026-2027 award year, 10 
                        percent;
                            ``(iv) for the 2027-2028 award year, 15 
                        percent; and
                            ``(v) for the 2028-2029 award year and each 
                        subsequent award year, 20 percent.
                    ``(C) Obligation to provide share.--The State shall 
                provide the State share even if the State is able to 
                set tuition and fees charged to eligible students 
                attending community colleges operated or controlled by 
                the State to $0 as required by section 499D without 
                such State share.
                    ``(D) No double counting funds.--No funds that 
                count toward the maintenance of effort requirement 
                under section 499D(c) may also count toward the State 
                share under this subsection.
                    ``(E) Special rule for outlying areas and 
                territories.--
                            ``(i) In general.--If the Secretary 
                        determines that requiring an outlying area or 
                        territory to provide a State share in 
                        accordance with this subsection would represent 
                        a substantial hardship for the outlying area or 
                        territory, the Secretary shall reduce or waive 
                        the State share for such area or territory. If 
                        the Secretary so reduces or waives the amount 
                        of the State share of an outlying area or 
                        territory, the Secretary shall increase the 
                        applicable percent used to calculate the 
                        Federal share for such area or territory, in 
                        proportion to the reduction in the applicable 
                        percent used to calculate such State share.
                            ``(ii) Definition.--For the purposes of 
                        this subparagraph, the term `outlying area or 
                        territory' means the Commonwealth of Puerto 
                        Rico, the District of Columbia, Guam, American 
                        Samoa, the United States Virgin Islands, the 
                        Commonwealth of the Northern Mariana Islands, 
                        and the Freely Associated States.
            ``(2) Inclusion of state financial aid and local funds.--In 
        the case of a State that demonstrates to the satisfaction of 
        the Secretary that community colleges operated or controlled by 
        such State will not experience a net reduction in total per-
        student revenue (including revenue derived from tuition and 
        fees) as compared to the preceding State fiscal year in such 
        State, a State may include, as part of the State share--
                    ``(A) any financial aid that is provided from State 
                funds to eligible students for such students' cost of 
                attendance that is not awarded predominantly on the 
                basis of merit; and
                    ``(B) any funds provided to community colleges by 
                local governments in such State for the purpose of 
                carrying out this subpart, including for the purpose of 
                setting community college tuition and fees for eligible 
                students to $0 as required under section 499D.
            ``(3) Relationship to maintenance of effort.--The inclusion 
        of funds described in paragraph (2) as part of a State's share 
        shall modify the maintenance of effort requirements under 
        section 499D(c) in accordance with the provisions of--
                    ``(A) section 499H(12)(B)(iii) with respect to 
                funds included under paragraph (2)(A); and
                    ``(B) section 499H(12)(B)(ii), with respect to 
                funds included under paragraph (2)(B).
            ``(4) No in-kind contributions.--A State shall not include 
        in-kind contributions for purposes of the State share described 
        in paragraph (1).
    ``(c) Determining Number of Eligible Students.--
            ``(1) In general.--For purposes of subsection (a) and 
        subsection (b), the Secretary shall develop and implement a 
        formula for accurately estimating the number of eligible 
        students and for making adjustments based on the number of 
        eligible students enrolled in the community colleges operated 
        or controlled by a State or in an eligible Tribal College or 
        University on less than a full-time basis and the associated 
        tuition and fees charged to such students in proportion to the 
        degree to which each such student is not attending on a full-
        time basis.
            ``(2) Initial determination.--For the first year for which 
        grants are awarded under this subpart, the number of eligible 
        students in a State or eligible Tribal College or University 
        shall be considered to be equal to the number of eligible 
        students who were in the State or eligible Tribal College or 
        University for the preceding school year.
    ``(d) Adjustment of Grant Amount.--Not later than 180 days after 
the date on which a State or eligible Tribal College or University 
receives a grant under this subpart, the Secretary shall--
            ``(1) in consultation with the State or eligible Tribal 
        College or University concerned, determine whether the actual 
        number of eligible students in the State or eligible Tribal 
        College or University for the year covered by the grant is 
        greater than the estimated number of such students that was 
        used to determine the amount of the grant; and
            ``(2) in the case of a determination under paragraph (1) 
        that the actual number of eligible students in the State or 
        eligible Tribal College or University is higher than such 
        estimate, issue a supplementary grant payment to the State or 
        eligible Tribal College or University in an amount that ensures 
        that the total amount of the grant funds received by the State 
        or eligible Tribal College or University under this subpart for 
        the year covered by the grant accurately reflects the higher 
        number of eligible students.
    ``(e) Community Colleges Operated or Controlled by State To Include 
Community Colleges Operated or Controlled by Local Governments Within 
the State.--For purposes of this subpart, the term `community college 
operated or controlled by a State' shall include a community college 
operated or controlled by a local government within such State.
    ``(f) Inapplicability of State Requirements to Eligible TCUs.--The 
Secretary may not apply any requirements applicable only to States 
under this subpart to an eligible Tribal College or University, 
including the requirements under subsection (b) and subsection (b) and 
(c) of section 499D.

``SEC. 499C. APPLICATIONS.

    ``(a) Submission.--In order to receive a grant under this subpart, 
a State or an eligible Tribal College or University shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require.
    ``(b) Contents.--Each application under subsection (a) shall 
include--
            ``(1) an estimate of the number of eligible students 
        enrolled in the community colleges operated or controlled by 
        the State or in the eligible Tribal College or University and 
        the cost of waiving community college tuition and fees for all 
        eligible students for each award year covered by the grant;
            ``(2) in the case of a State, a list of each of the 
        community colleges operated or controlled by the State;
            ``(3) an assurance that each community college operated or 
        controlled by the State, or the eligible Tribal College or 
        University, as applicable, will set community college tuition 
        and fees for eligible students to $0 as required by section 
        499D(a);
            ``(4) a description of the promising and evidence-based 
        institutional reforms and innovative practices to improve 
        student outcomes, including transfer and completion rates, that 
        have been or will be adopted by each such community college, 
        such as--
                    ``(A) providing comprehensive academic, career, and 
                student support services (including mentoring, 
                advising, case management services, and career pathway 
                navigation), especially for low-income, first-
                generation, and adult students, and other students 
                belonging to racial and other groups that are 
                historically underrepresented in higher education;
                    ``(B) providing direct support services, or 
                assistance in applying for such services, such as--
                            ``(i) childcare, transportation, and 
                        emergency financial assistance;
                            ``(ii) assistance in obtaining health 
                        insurance coverage and accessing health care 
                        services, including behavioral and mental 
                        health services;
                            ``(iii) affordable housing;
                            ``(iv) nutrition assistance programs or 
                        free or discounted food; and
                            ``(v) means-tested Federal benefit 
                        programs, or similar State, tribal, or local 
                        benefit programs;
                    ``(C) providing accelerated learning opportunities, 
                such as dual or concurrent enrollment programs, 
                including early college high school programs, and 
                reforming course scheduling and credit awarding 
                policies to better meet the needs of students and 
                shorten time to completion;
                    ``(D) strengthening and reforming remedial and 
                developmental education, especially for low-income, 
                first-generation, and adult students, and other 
                students belonging to racial and other groups that are 
                historically underrepresented in higher education, 
                including through the use of multiple measures (such as 
                a student's college entrance examination score, grade 
                point average, high school course list, or a placement 
                examination) to identify students in need of remedial 
                education;
                    ``(E) utilizing career pathways, including through 
                building capacity for career and technical education, 
                as defined in section 3(5) of the Carl D. Perkins 
                Career and Technical Education Act of 2006 (20 U.S.C. 
                2302(5)), and programs of study, as defined in section 
                3(41) of such Act (20 U.S.C. 2302(41)), or degree 
                pathways; or
                    ``(F) providing expanded opportunities for 
                participating in work-based learning, which may include 
                apprenticeship programs, in students' programs of 
                study;
            ``(5) a description of how the State or eligible Tribal 
        College or University will ensure that programs leading to a 
        recognized postsecondary credential meet the quality criteria 
        established by the State under section 122(b)(1) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3152(b)(1)) 
        or other quality criteria determined appropriate by the State 
        or eligible Tribal College or University;
            ``(6) an assurance that each community college operated or 
        controlled by the State or the eligible Tribal College or 
        University, as applicable, has entered into a program 
        participation agreement under section 487;
            ``(7) an assurance that the State or eligible Tribal 
        College or University will assist eligible students in 
        obtaining information about and accessing means-tested Federal 
        benefit programs and similar, State, tribal, and local benefit 
        programs that can provide financial assistance for any 
        component of the student's cost of attendance, as defined under 
        section 472, other than tuition and fees;
            ``(8) an assurance that, for each year of the grant, the 
        State or eligible Tribal College or University will notify each 
        eligible student of the student's remaining eligibility for 
        assistance under this subpart;
            ``(9) if the application is submitted by a State--
                    ``(A) a description of how the State will support 
                the scaling and increased adoption of the reforms and 
                practices described in paragraph (4);
                    ``(B) an assurance that the State will, to the 
                extent practicable, consider changes to State law that 
                will enable more community college students to be 
                eligible for means-tested Federal benefit programs and 
                similar State benefit programs;
                    ``(C) an assurance that the State will meet the 
                requirements of section 499D(b)(1) relating to the 
                alignment of secondary and postsecondary education; and
                    ``(D) an assurance that the State will meet the 
                requirements of section 499D(b)(2) relating to the 
                improvement of transfer pathways between institutions 
                of higher education; and
            ``(10) an assurance that the State or eligible Tribal 
        College or University will clearly communicate to prospective 
        students, including students with prior college experience who 
        have not completed a postsecondary degree or credential, their 
        families, and the general public--
                    ``(A) plans to implement the program funded under 
                this subpart; and
                    ``(B) how eligible students can attend a community 
                college operated or controlled by the State or eligible 
                Tribal College or University without paying tuition and 
                fees.

``SEC. 499D. PROGRAM REQUIREMENTS.

    ``(a) General Requirements.--As a condition of receiving a grant 
under this subpart, a State or eligible Tribal College or University 
shall meet the following requirements:
            ``(1) Ensure that the total amount of tuition and fees 
        charged to an eligible student in the State or the eligible 
        Tribal College or University shall be $0.
            ``(2) For each year of the grant no amount of financial 
        assistance for which an eligible student qualifies may be 
        applied to such tuition or fees.
            ``(3) The State or eligible Tribal College or University 
        may not use any funds provided under this subpart for 
        administrative purposes relating to such grant.
    ``(b) State Requirements.--In addition to the requirements under 
subsection (a), as a condition of receiving a grant under this subpart, 
a State shall meet the following requirements:
            ``(1) Alignment of k-12 and higher education.--
                    ``(A) In general.--The State shall--
                            ``(i) submit a plan to align the 
                        requirements for receiving a regular high 
                        school diploma from public schools in the State 
                        with the requirements for entering credit-
                        bearing coursework at community colleges in 
                        such State; and
                            ``(ii) not later than 3 years after the 
                        date on which the State first receives a grant 
                        under this subpart, certify to the Secretary 
                        that such alignment has been achieved.
                    ``(B) Failure to certify.--If a State does not 
                provide the certification required under subparagraph 
                (A) by the date specified in such subparagraph, the 
                State shall submit to the Secretary, at such time and 
                in such manner as the Secretary may require--
                            ``(i) a written explanation for the delay 
                        in making the certification; and
                            ``(ii) a plan that will enable the State to 
                        make the certification by not later than 5 
                        years after the date on which the State first 
                        received a grant under this subpart.
            ``(2) Transfer pathways.--
                    ``(A) In general.--The State shall--
                            ``(i) submit a plan, developed in 
                        collaboration with faculty from institutions of 
                        higher education in the State, to improve 
                        transfer pathways between institutions of 
                        higher education in the State, including by--
                                    ``(I) ensuring that associate 
                                degrees awarded by community colleges 
                                in the State are fully transferable to, 
                                and credited as, the first 2 years of 
                                related baccalaureate programs at 
                                public institutions of higher education 
                                in such State;
                                    ``(II) increasing the 
                                transferability of individual courses 
                                within the certificate or associate 
                                programs offered by community colleges 
                                in the State to related baccalaureate 
                                programs offered by institutions of 
                                higher education in such State to 
                                maximize the transferability of credits 
                                for students who transfer before 
                                completing an associate degree;
                                    ``(III) expanding the use of 
                                reverse transfer policies that allow 
                                institutions to--
                                            ``(aa) implement the 
                                        process of retroactively 
                                        granting a certificate or 
                                        associate degree to students 
                                        who had not completed the 
                                        requirements for such 
                                        certificate or degree before 
                                        they transferred; and
                                            ``(bb) allow academic 
                                        credits for coursework 
                                        completed at a 4-year 
                                        institution to be applied to a 
                                        previously attended community 
                                        college for the purpose of 
                                        obtaining an associate degree 
                                        or a certificate; and
                                    ``(IV) ensuring that students 
                                attending community colleges in the 
                                State have access to comprehensive 
                                counseling regarding the process for 
                                transferring to a 4-year institution of 
                                higher education; and
                            ``(ii) not later than 3 years after the 
                        date on which the State first receives a grant 
                        under this subpart, certify to the Secretary 
                        that the State is carrying out the plan 
                        submitted in accordance with clause (i) and is 
                        meeting the requirements of subclauses (I) 
                        through (IV) of such clause.
                    ``(B) Failure to certify.--If a State does not 
                provide the certification required under subparagraph 
                (A) by the date specified in such subparagraph, the 
                State shall submit to the Secretary, at such time and 
                in such manner as the Secretary may require--
                            ``(i) a written explanation for the delay 
                        in making the certification; and
                            ``(ii) a plan that will enable the State to 
                        make the certification by not later than 5 
                        years after the date on which the State first 
                        received a grant under this subpart.
            ``(3) Applicability.--The Secretary may not apply the 
        requirements under this subsection to an eligible Tribal 
        College or University.
    ``(c) State Maintenance of Effort.--A State receiving a grant under 
this subpart shall be entitled to receive its full allotment of funds 
under this subpart for a fiscal year only if, for each year of the 
grant, the State provides--
            ``(1) State fiscal support for higher education per full-
        time equivalent student at a level equal to or exceeding the 
        average amount of State fiscal support for higher education per 
        full-time equivalent student provided for the 3 consecutive 
        preceding fiscal years;
            ``(2) financial support for operating expenses (excluding 
        capital expenses and research and development costs) for public 
        4-year institutions of higher education at a level equal to or 
        exceeding the average amount provided for the 3 consecutive 
        preceding State fiscal years; and
            ``(3) financial support for need-based financial aid at a 
        level equal to or exceeding the average amount provided for the 
        3 consecutive preceding State fiscal years.
    ``(d) No Additional Eligibility Requirements.--A State or eligible 
Tribal College or University that receives a grant under this subpart 
may not impose additional eligibility requirements on eligible students 
other than the requirements under this subpart.
    ``(e) Eligibility for Benefits.--No individual shall be determined 
to be ineligible to receive benefits provided under this subpart 
(including tuition and fees set to $0 and other aid provided under this 
subpart) on the basis of citizenship, alienage, or immigration status.

``SEC. 499E. ALLOWABLE USES OF FUNDS.

    ``(a) In General.--Except as provided in subsection (b), a State or 
eligible Tribal College or University shall use a grant under this 
subpart only to ensure that the total amount of tuition and fees 
charged to an eligible student in the State or the eligible Tribal 
College or University shall be $0.
    ``(b) Additional Uses.--If a State or an eligible Tribal College or 
University demonstrates to the Secretary that the State or eligible 
Tribal College or University has grant funds remaining after meeting 
the demand for activities described in subsection (a), the State or 
eligible Tribal College or University may use those funds to carry out 
1 or more of the following:
            ``(1) Providing need-based financial aid to students that 
        may be used by such students to pay any component of cost of 
        attendance, as defined under section 472.
            ``(2) Improving student outcomes by implementing evidence-
        based institutional reforms or practices.
            ``(3) Enhancing the quality and equity of public higher 
        education to improve student outcomes, including transfer and 
        completion rates and labor market outcomes.
            ``(4) Investing in and diversifying the academic workforce.
            ``(5) Expanding the scope and capacity of high-quality 
        academic and occupational skills training programs at community 
        colleges, which may include collaboration with one or more 
        industry or sector partnerships (as defined in section 3 of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3201)).
            ``(6) Improving postsecondary education readiness in the 
        State, including through outreach and early intervention.
            ``(7) Expanding access to dual or concurrent enrollment 
        programs, such as early college high school programs.
            ``(8) Reducing unmet need at public 4-year institutions of 
        higher education.
    ``(c) Use of Funds for Administrative Purposes.--A State or Tribal 
College or University that receives a grant under this subpart may not 
use any funds provided under this subpart for administrative purposes 
relating to such grant.
    ``(d) Supplement, Not Supplant.--Funds made available under this 
subpart shall be used to supplement, and not supplant, other Federal, 
State, tribal, and local funds that would otherwise be expended to 
carry out activities described in this section.
    ``(e) Report Requirements.--
            ``(1) Reporting by states .--A State receiving a grant 
        under this subpart shall submit to the Secretary an annual 
        report that shall include--
                    ``(A) the uses of grant funds under this subpart;
                    ``(B) the progress made in fulfilling the 
                requirements of the grant;
                    ``(C) the rates of transfer, graduation, and 
                attainment of recognized postsecondary credentials at 
                participating community colleges, disaggregated by 
                race, income, and age; and
                    ``(D) any other information that the Secretary may 
                require.
            ``(2) Reporting by secretary.--The Secretary shall, on an 
        annual basis--
                    ``(A) compile and analyze the information described 
                in paragraph (1); and
                    ``(B) prepare and submit to the authorizing 
                committees a report containing--
                            ``(i) the analysis described in 
                        subparagraph (A); and
                            ``(ii) an identification of State and best 
                        practices for achieving the purpose of this 
                        subpart.
    ``(f) Technical Assistance.--The Secretary shall provide technical 
assistance to States and eligible Tribal Colleges and Universities 
concerning best practices regarding the promising and evidence-based 
institutional reforms and innovative practices to improve student 
outcomes and shall disseminate such best practices among such entities.
    ``(g) Continuation of Funding.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        State or an eligible Tribal College or University receiving a 
        grant under this subpart for a fiscal year may continue to 
        receive funding under this subpart for future fiscal years 
        conditioned on the availability of budget authority and on 
        meeting the requirements of the grant, as determined by the 
        Secretary.
            ``(2) Discontinuation.--The Secretary may discontinue 
        funding of the Federal share of a grant under this subpart if 
        the State or eligible Tribal College or University has violated 
        the terms of the grant or is not making adequate progress in 
        implementing the reforms described in the application submitted 
        under section 499C.
    ``(h) Rule of Construction Regarding BIE Funds.--Nothing in this 
subpart shall be construed to impact the availability of funds from, or 
uses of funds provided by, the Bureau of Indian Education for Tribal 
Colleges and Universities.

``SEC. 499F. AUTOMATIC STABILIZERS FOR AMERICA'S COLLEGE PROMISE.

    ``(a) Maintenance of Effort Relief.--Notwithstanding subsection (c) 
of section 499D, a State that meets the qualifying spending 
requirements may request a waiver of the requirements under such 
subsection (c). The Secretary shall waive the requirements of such 
subsection (c) for a State that makes a qualifying request under this 
subsection as follows:
            ``(1) Tier i.--With respect to each State eligible for 
        relief under tier I, such requirements shall be waived for the 
        fiscal year succeeding the fiscal year in which the 
        determination of the State's eligibility for such relief is 
        made.
            ``(2) Tiers ii through v.--With respect to each State 
        eligible for relief under tier II, III, IV, or V, such 
        requirements shall be waived, in accordance with subsection 
        (d), for--
                    ``(A) the fiscal year in which the determination of 
                the State's eligibility for such relief is made;
                    ``(B) the fiscal year succeeding the fiscal year 
                described in subparagraph (A); or
                    ``(C) both such fiscal years.
    ``(b) State Share Relief.--
            ``(1) State match relief.--Notwithstanding subsection (b) 
        of section 499B, a State that is eligible for relief under tier 
        II, III, IV, or V may request relief with respect to the 
        requirements of such subsection (b). The Secretary shall 
        provide relief from the requirements of such subsection (b), 
        for the applicable fiscal year or years, for a State that makes 
        a qualifying request under this paragraph as follows:
                    ``(A) Tier ii.--With respect to a State that is 
                eligible for relief under tier II, the Secretary 
                shall--
                            ``(i) apply section 499B(a)(1)(B)(v) by 
                        substituting `85 percent' for `80 percent'; and
                            ``(ii) apply section 499B(b)(1)(B)(v) by 
                        substituting `15 percent' for `20 percent'.
                    ``(B) Tier iii.--With respect to a State that is 
                eligible for relief under tier III, the Secretary 
                shall--
                            ``(i) apply section 499B(a)(1)(B)(v) by 
                        substituting `90 percent' for `80 percent';
                            ``(ii) apply section 499B(b)(1)(B)(v) by 
                        substituting `10 percent' for `20 percent';
                            ``(iii) apply section 499B(a)(1)(B)(iv) by 
                        substituting `90 percent' for `85 percent'; and
                            ``(iv) apply section 499B(b)(1)(B)(iv) by 
                        substituting `10 percent' for `15 percent'
                    ``(C) Tier iv.--With respect to a State that is 
                eligible for relief under tier IV, the Secretary 
                shall--
                            ``(i) apply section 499B(a)(1)(B)(v) by 
                        substituting 95 percent' for `80 percent';
                            ``(ii) apply section 499B(b)(1)(B)(v) by 
                        substituting `5 percent' for `20 percent';
                            ``(iii) apply section 499B(a)(1)(B)(iv) by 
                        substituting `95 percent' for `85 percent';
                            ``(iv) apply section 499B(b)(1)(B)(iv) by 
                        substituting `5 percent' for `15 percent';
                            ``(v) apply section 499B(a)(1)(B)(iii) by 
                        substituting `95 percent' for `90 percent'; and
                            ``(vi) apply section 499B(b)(1)(B)(iii) by 
                        substituting `5 percent' for `10 percent'.
                    ``(D) Tier v.--With respect to a State that is 
                eligible for relief under tier V, the Secretary shall--
                            ``(i) apply section 499B(a)(1)(B)(v) by 
                        substituting 100 percent' for `80 percent';
                            ``(ii) apply section 499B(b)(1)(B)(v) by 
                        substituting `0 percent' for `20 percent';
                            ``(iii) apply section 499B(a)(1)(B)(iv) by 
                        substituting `100 percent' for '85 percent';
                            ``(iv) apply section 499B(b)(1)(B)(iv) by 
                        substituting `0 percent' for `15 percent';
                            ``(v) apply section 499B(a)(1)(B)(iii) by 
                        substituting `100 percent' for `90 percent';
                            ``(vi) apply section 499B(b)(1)(B)(iii) by 
                        substituting `0 percent' for `10 percent';
                            ``(vii) apply section 499B(a)(1)(B)(ii) by 
                        substituting `100 percent' for `95 percent'; 
                        and
                            ``(viii) apply section 499B(b)(1)(B)(ii) by 
                        substituting `0 percent' for `5 percent'.
            ``(2) Applicable fiscal years.--With respect to each State 
        eligible for relief under tier II, III, IV, or V, the Secretary 
        shall provide the relief under paragraph (1), in accordance 
        with subsection (d), for--
                    ``(A) the fiscal year in which the determination of 
                the State's eligibility for such relief is made;
                    ``(B) the fiscal year succeeding the fiscal year 
                described in subparagraph (A); or
                    ``(C) both such fiscal years.
    ``(c) State Eligibility.--A State's eligibility for relief under 
this section shall be determined as follows:
            ``(1) Tier i.--A State shall be eligible for relief under 
        tier I for a fiscal year in which--
                    ``(A)(i) the State was in an elevated unemployment 
                period at any point in the fiscal year; or
                    ``(ii) the Nation as a whole was in an elevated 
                unemployment period at any point in the fiscal year; 
                and
                    ``(B) the State is not eligible for relief under 
                any other tier.
            ``(2) Tier ii.--A State shall be eligible for relief under 
        tier II for a fiscal year in which--
                    ``(A)(i) the State average unemployment rate was 
                equal to or greater than 6.5 percent but less than 7.5 
                percent at any point in the fiscal year; or
                    ``(ii) the national average unemployment rate is 
                equal to or greater than 6.5 percent but less than 7.5 
                percent at any point in the fiscal year; and
                    ``(B) the State is not eligible for relief under 
                tier III, IV, or V.
            ``(3) Tier iii.--A State shall be eligible for relief under 
        tier III for a fiscal year in which--
                    ``(A)(i) the State average unemployment rate was 
                equal to or greater than 7.5 percent but less than 8.5 
                percent at any point in the fiscal year; or
                    ``(ii) the national average unemployment rate is 
                equal to or greater than 7.5 percent but less than 8.5 
                percent at any point in the fiscal year; and
                    ``(B) the State is not eligible for relief under 
                tier IV or V.
            ``(4) Tier iv.--A State shall be eligible for relief under 
        tier IV for a fiscal year in which--
                    ``(A)(i) the State average unemployment rate was 
                equal to or greater than 8.5 percent but less than 9.5 
                percent at any point in the fiscal year; or
                    ``(ii) the national average unemployment rate is 
                equal to or greater than 8.5 percent but less than 9.5 
                percent at any point in the fiscal year; and
                    ``(B) the State is not eligible for relief under 
                tier V.
            ``(5) Tier v.--A State shall be eligible for relief under 
        tier V for a fiscal year in which--
                    ``(A) the State average unemployment rate was equal 
                to or greater than 9.5 percent at any point in the 
                fiscal year; or
                    ``(B) the national average unemployment rate is 
                equal to or greater than 9.5 percent at any point in 
                the fiscal year.
    ``(d) Discretion in the Provision of Relief.--In determining the 
fiscal years for which to provide relief in accordance with subsections 
(a)(2) and (b) to a State that is eligible under tier II, III, IV, or 
V, the Secretary shall take into account the following:
            ``(1) In the case of a State that requests relief under 
        subsection (a)(2), the fiscal years for which the State 
        requests such relief, including--
                    ``(A) if the State requests such relief for the 
                fiscal year for which the determination of the State's 
                eligibility for such relief is made, the amount by 
                which the State is unable to meet the requirements of 
                section 499D(c) for such fiscal year; and
                    ``(B) if the State requests such relief for the 
                fiscal year succeeding the year described in 
                subparagraph (A), the amount by which the State 
                anticipates being unable to meet such requirements for 
                such succeeding fiscal year.
            ``(2) In the case of a State that requests relief under 
        subsection (b), the fiscal years for which the State requests 
        such relief, including--
                    ``(A) if the State requests such relief for the 
                fiscal year for which the determination of the State's 
                eligibility for such relief is made, the extent to 
                which the State is unable to meet the requirements of 
                section 499B(b) for such fiscal year; and
                    ``(B) if the State requests such relief for the 
                fiscal year succeeding the year described in 
                subparagraph (A), the extent to which the State 
                anticipates being unable to meet such requirements for 
                such succeeding fiscal year.
            ``(3) The actual or anticipated timing, severity, and 
        duration of the unemployment rate increase during--
                    ``(A) the fiscal year for which the determination 
                of the State's eligibility for such relief is made;
                    ``(B) the fiscal year succeeding the fiscal year 
                described in subparagraph (A); and
                    ``(C) the fiscal year preceding the fiscal year 
                described in subparagraph (A).
            ``(4) Other factors determined to be relevant by the 
        Secretary.
    ``(e) Continued Payment to Employees.--A State that receives relief 
under subsection (a) or (b) shall, to the greatest extent practicable, 
continue to pay its employees of, and contractors with, public 
institutions of higher education in the State during the period in 
which the State is receiving such relief.
    ``(f) Definitions.--In this section:
            ``(1) Elevated unemployment period.--The term `elevated 
        unemployment period'--
                    ``(A) when used with respect to the Nation as a 
                whole, means a consecutive, 3-month period in a fiscal 
                year in which the national average unemployment rate is 
                not less than 0.5 percentage points above the lowest 
                national average unemployment rate for the 12-month 
                period preceding such 3-month period; and
                    ``(B) when used with respect to a State, means a 
                consecutive, 3-month period in a fiscal year in which 
                the State average unemployment rate is not less than 
                0.5 percentage points above the lowest State average 
                unemployment rate for the 12-month period preceding 
                such 3-month period.
            ``(2) Qualifying spending requirements.--The term 
        `qualifying spending requirements' means the requirements that 
        a State not disproportionately decrease spending for any of the 
        categories described in paragraphs (1) through (3) of section 
        499D(c) relative to such State's overall, average decrease in 
        spending for the 3 consecutive preceding fiscal years.
            ``(3) National average unemployment rate.--The term 
        `national average unemployment rate' means the average 
        (seasonally adjusted) rate of total unemployment in all States 
        for a consecutive, 3-month period in a fiscal year, based on 
        data from the Bureau of Labor Statistics of the Department of 
        Labor.
            ``(4) State average unemployment rate.--The term `State 
        average unemployment rate' means the average (seasonally 
        adjusted) rate of total unemployment in a State for a 
        consecutive, 3-month period in a fiscal year, based on data 
        from the Bureau of Labor Statistics of the Department of Labor.

``SEC. 499G. APPROPRIATIONS.

    ``There are authorized to be appropriated, and there are 
appropriated to carry out this subpart (in addition to any other 
amounts appropriated to carry out this subpart and out of any money in 
the Treasury not otherwise appropriated), such sums as may be necessary 
for fiscal year 2024 and each succeeding fiscal year.

``SEC. 499H. DEFINITIONS.

    ``In this subpart:
            ``(1) Apprenticeship.--The term `apprenticeship' means an 
        apprenticeship program registered under the Act of August 16, 
        1937 (commonly known as the `National Apprenticeship Act'; 50 
        Stat. 664, chapter 663; 29 U.S.C. 50 et seq.).
            ``(2) Career pathway.--The term `career pathway' has the 
        meaning given the term in section 3 of the Workforce Innovation 
        and Opportunity Act (29 U.S.C. 3102).
            ``(3) Community college.--The term `community college' 
        means--
                    ``(A) a degree-granting public institution of 
                higher education at which--
                            ``(i) the highest degree awarded is an 
                        associate degree; or
                            ``(ii) an associate degree is the 
                        predominant degree awarded;
                    ``(B) an eligible Tribal College or University;
                    ``(C) a degree-granting branch campus of a 4-year 
                public institution of higher education if, at such 
                branch campus--
                            ``(i) the highest degree awarded is an 
                        associate degree; or
                            ``(ii) an associate degree is the 
                        predominant degree awarded; or
                    ``(D) at the designation of the Secretary, in the 
                case of a State that does not operate or control any 
                institution that meets a definition under subparagraph 
                (A) or (C), a college or similarly defined and 
                structured academic entity--
                            ``(i) that was in existence on July 1, 
                        2021;
                            ``(ii) within a 4-year public institution 
                        of higher education; and
                            ``(iii) at which--
                                    ``(I) the highest degree awarded is 
                                an associate degree; or
                                    ``(II) an associate degree is the 
                                predominant degree awarded.
            ``(4) Dual or concurrent enrollment program.--The term 
        `dual or concurrent enrollment program' has the meaning given 
        the term in section 8101 of the Elementary and Secondary 
        Education Act of 1965.
            ``(5) Early college high school.--The term `early college 
        high school' has the meaning given the term in section 8101 of 
        the Elementary and Secondary Education Act of 1965.
            ``(6) Eligible student.--The term `eligible student' means 
        a student who--
                    ``(A) is enrolled as an undergraduate student in an 
                eligible program (as defined in section 481(b)) at a 
                community college on not less than a half-time basis;
                    ``(B) in the case of a student who is enrolled in a 
                community college that charges different tuition rates 
                on the basis of in-State or in-district residency, 
                either--
                            ``(i) qualifies for in-State or in-district 
                        resident community college tuition; or
                            ``(ii) would qualify for such in-State or 
                        in-district resident tuition at such community 
                        college, but for the immigration status of such 
                        student; and
                    ``(C) has not been enrolled (whether full-time or 
                less than full-time) for more than 6 semesters (or the 
                equivalent) for which community college tuition and 
                fees of the student were set to $0 pursuant to section 
                499D(a);
                    ``(D) is not enrolled in a dual or concurrent 
                enrollment program or early college high school; and
                    ``(E) in the case of a student who is a United 
                States citizen, has filed a FAFSA described in section 
                483 for the applicable award year for which the student 
                is enrolled.
            ``(7) Eligible tribal college or university.--The term 
        `eligible Tribal College or University' means--
                    ``(A) a 2-year Tribal College or University; or
                    ``(B) a degree-granting Tribal College or 
                University--
                            ``(i) at which the highest degree awarded 
                        is an associate degree; or
                            ``(ii) an associate degree is the 
                        predominant degree awarded.
            ``(8) Evidence-based institutional reforms and innovative 
        practices.--The term `evidence-based institutional reforms and 
        innovative practices' means practices or reforms that meet the 
        criteria for `evidence tier 1' and `evidence tier 2' under 
        section 4611(a)(2) of the Elementary and Secondary Education 
        Act of 1965, as determined by the Secretary in accordance with 
        such section.
            ``(9) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101.
            ``(10) Means-tested federal benefit program.--The term 
        `means-tested Federal benefit program' has the meaning given 
        the term in section 479.
            ``(11) Recognized postsecondary credential.--The term 
        `recognized postsecondary credential' has the meaning given the 
        term in section 3 of the Workforce Innovation and Opportunity 
        Act (29 U.S.C. 3102).
            ``(12) State fiscal support for higher education.--
                    ``(A) Inclusions.--
                            ``(i) In general.--Except as provided in 
                        subparagraph (B), the term `State fiscal 
                        support for higher education', used with 
                        respect to a State for a fiscal year, means an 
                        amount that is equal to--
                                    ``(I) the gross amount of 
                                applicable State funds appropriated or 
                                dedicated, and expended by the State, 
                                including funds from lottery receipts, 
                                in the fiscal year, that are used to 
                                support institutions of higher 
                                education and student financial aid for 
                                higher education in the State; and
                                    ``(II) any funds described in 
                                clause (ii).
                            ``(ii) Local funds.--In the case of a State 
                        that includes, as part of the State share under 
                        section 499B(b)(2)(B) for an award year, funds 
                        provided to community colleges by local 
                        governments in such State for the purpose of 
                        carrying out this subpart, local funds provided 
                        to community colleges operated or controlled by 
                        such State for operating expenses (excluding 
                        capital expenses and research and development 
                        costs) shall be included in the calculation of 
                        the State fiscal support for higher education 
                        for such award year under clause (i).
                    ``(B) Exclusions.--State fiscal support for higher 
                education for a State for a fiscal year shall not 
                include--
                            ``(i) funds described in subparagraph 
                        (A)(i) that are returned to the State;
                            ``(ii) State-appropriated funds derived 
                        from Federal sources, including funds provided 
                        under section 499B(b) and section 499J(b);
                            ``(iii) funds that are included in the 
                        State share under section 499B(b) (except as 
                        provided in subparagraph (A)(ii) of this 
                        paragraph), including funds included in the 
                        State share in accordance with paragraph (2)(A) 
                        of such section;
                            ``(iv) amounts that are portions of 
                        multiyear appropriations to be distributed over 
                        multiple years that are not to be spent for the 
                        year for which the calculation under this 
                        paragraph is being made, subject to 
                        subparagraph (C);
                            ``(v) tuition, fees, or other educational 
                        charges paid directly by a student to a public 
                        institution of higher education or to the 
                        State;
                            ``(vi) funds for--
                                    ``(I) financial aid to students 
                                attending, or operating expenses of--
                                            ``(aa) out-of-State 
                                        institutions of higher 
                                        education;
                                            ``(bb) proprietary 
                                        institutions of higher 
                                        education (as defined in 
                                        section 102(b)); or
                                            ``(cc) institutions of 
                                        higher education not accredited 
                                        by an agency or association 
                                        recognized by the Secretary 
                                        pursuant to section 496;
                                    ``(II) financial aid to students 
                                awarded predominantly on the basis of 
                                merit, including programs awarded on 
                                the basis of predicted or actual 
                                academic performance or assessment;
                                    ``(III) research and development;
                                    ``(IV) hospitals, athletics, or 
                                other auxiliary enterprises; or
                                    ``(V) corporate or other private 
                                donations directed to 1 or more 
                                institutions of higher education 
                                permitted to be expended by the State; 
                                or
                            ``(vii) any other funds that the Secretary 
                        determines shall not be included in the 
                        calculation of State fiscal support for higher 
                        education for such State.
                    ``(C) Adjustments for biennial appropriations.--The 
                Secretary shall take into consideration any adjustments 
                to the calculations under this paragraph that may be 
                required to accurately reflect State fiscal support for 
                higher education in States with biennial appropriation 
                cycles.
            ``(13) State fiscal support for higher education per full-
        time equivalent student.--The term `State fiscal support for 
        higher education per full-time equivalent student', when used 
        with respect to a State for a fiscal year, means, the amount 
        that is equal to--
                    ``(A) the State fiscal support for higher education 
                for the previous fiscal year; divided by
                    ``(B) the number of full-time equivalent students 
                enrolled in public institutions of higher education in 
                such State for such previous fiscal year.
            ``(14) Tribal college or university.--The term `Tribal 
        College or University' has the meaning given such term in 
        section 316(b)(3).''.

                     TITLE II--STUDENT SUCCESS FUND

SEC. 201. STUDENT SUCCESS FUND.

    Part J of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.), as added by section 101, is further amended by adding at 
the end the following:

                   ``Subpart 2--Student Success Fund

``SEC. 499I. IN GENERAL.

    ``(a) In General.--From amounts appropriated under section 499O for 
any fiscal year, the Secretary shall carry out a grant program (to be 
known as the `Student Success Fund') to make grants to eligible 
entities to carry out the activities and services described in section 
499L.
    ``(b) Priority.--In awarding funds under this subpart, the 
Secretary shall give priority to eligible entities that propose to use 
a significant share of grant funds to improve enrollment, retention, 
transfer, or completion rates or labor market outcomes among students 
of color, low-income students, students with disabilities, students in 
need of remediation, first generation college students, student 
parents, and other underserved student populations.

``SEC. 499J. FEDERAL SHARE AND MATCHING FUNDS.

    ``(a) Federal Share.--
            ``(1) Formula requirements.--The Federal share of a grant 
        under this subpart shall be based on a formula, developed by 
        the Secretary, that accounts for--
                    ``(A) the State or Tribal College or University 
                relative share of eligible students, as determined in 
                accordance with section 499B(c);
                    ``(B) the State or Tribal College or University 
                relative share of Federal Pell Grant recipients; and
                    ``(C) the ratio between a State or Tribal College 
                or University funding per full-time equivalent (FTE) 
                student at public institutions of higher education and 
                the average net price at public 4-year institutions of 
                higher education, in such a way as to reward States and 
                Indian tribes that keep net prices for students low 
                while maintaining their fiscal support for higher 
                education.
            ``(2) Formula published before application deadline.--The 
        Secretary shall--
                    ``(A) develop the formula described in paragraph 
                (1);
                    ``(B) calculate estimated allotments for each 
                eligible entity under such formula; and
                    ``(C) publish such formula and estimated allotments 
                not later than the date of the notice soliciting 
                applications for participation in the program under 
                this subpart.
    ``(b) Matching Funds.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        eligible entity participating in the program under this subpart 
        shall provide, from non-Federal sources, in cash or in-kind--
                    ``(A) in each of the first, second, third, and 
                fourth years of participation in the program, an amount 
                equal to 25 percent of the amount such entity received 
                under subsection (a) with respect to such year;
                    ``(B) in each of the fifth and sixth years of 
                participation in the program, an amount equal to 50 
                percent of the amount such entity received under 
                subsection (a) with respect to such year;
                    ``(C) in each of the seventh and eighth years of 
                participation in the program, an amount equal to 75 
                percent of the amount such entity received under 
                subsection (a) with respect to such year; and
                    ``(D) in the ninth year and each subsequent year 
                thereafter of participation in the program, an amount 
                equal to 100 percent of the amount such entity received 
                under subsection (a) with respect to such year.
            ``(2) Exception for tribal colleges and universities.--The 
        Secretary may modify or waive the matching fund requirements 
        under paragraph (1) in the case of an eligible entity that is a 
        Tribal College or University.
            ``(3) Reallotment.--If an eligible entity returns to the 
        Secretary any portion of the grant amount provided to such 
        eligible entity under this subpart for any fiscal year, or 
        requests a grant amount that is less than the Federal share 
        determined for such entity in accordance with subsection (a), 
        the Secretary shall reallot such excess amount for the 
        succeeding fiscal year, in addition to the amounts appropriated 
        under 499O for such succeeding fiscal year.
    ``(c) Supplement, Not Supplant.--Grant funds awarded under this 
subpart shall be used to supplement, and not supplant, other Federal, 
State, tribal, and local funds that would otherwise be expended to 
carry out activities assisted under this subpart.

``SEC. 499K. APPLICATIONS.

    ``(a) In General.--To be eligible to participate in the program 
under this subpart, an eligible entity shall submit an application to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may require, including--
            ``(1) a plan that includes--
                    ``(A) the amount of funds requested by the eligible 
                entity under this subpart and the intended use of such 
                funds;
                    ``(B) how the eligible entity will use the 
                requested funds to implement promising and evidence-
                based institutional reforms and innovative practices to 
                improve student outcomes, including--
                            ``(i) implementation of the reforms and 
                        practices identified by such entity under 
                        section 499C(b)(4); and
                            ``(ii) annual implementation benchmarks 
                        that the entity will use to track progress in 
                        implementing such reforms and practices;
                    ``(C) if the eligible entity is a State, how such 
                eligible entity will support the scaling of evidence-
                based and innovative initiatives system-wide;
                    ``(D) how the eligible entity will meet its 
                matching fund requirements under section 499J(b);
                    ``(E) if the eligible entity is a State, how such 
                eligible entity will prioritize spending on the public 
                institutions of higher education specified in paragraph 
                (2)(B); and
                    ``(F) the improvements the eligible entity 
                anticipates in student outcomes, including improvements 
                in transfer rates or completion rates, or both; and
            ``(2) if the eligible entity is a State, an analysis that 
        includes--
                    ``(A) with respect to each public institution of 
                higher education of the eligible entity--
                            ``(i) the total per-student funding;
                            ``(ii) the amount of per-student funding 
                        from State-appropriated funds;
                            ``(iii) the student demographics (including 
                        data on race, income, disability status, and 
                        remediation); and
                            ``(iv) transfer and completion rates, 
                        including such rates among low-income students, 
                        students of color, students with disabilities, 
                        and students in need of remediation; and
                    ``(B) whether, of the public institutions of higher 
                education of the eligible entity, the public 
                institutions of higher education that received less 
                funding on a per-student basis described in clause (i) 
                or (ii), or both, of subparagraph (A), are serving 
                disproportionately high shares of low-income students, 
                students of color, students with disabilities, or 
                students in need of remediation.
    ``(b) Approval.--
            ``(1) In general.--Not later than 180 days after receiving 
        a plan under subsection (a), the Secretary shall--
                    ``(A) approve the plan; or
                    ``(B) require revisions to such plan.
            ``(2) Revisions required.--An eligible entity shall make 
        such revisions as required by the Secretary under paragraph 
        (1)(B).
    ``(c) Publication.--The Secretary shall make each plan approved 
under subsection (b)(1)(A) and each plan revised under subsection 
(b)(2) available to the public on the website of the Department.

``SEC. 499L. PROGRAM REQUIREMENTS.

    ``(a) General Requirements.--
            ``(1) Report on demonstrated progress.--For the third year 
        in which an eligible entity participates in the program under 
        this subpart, and every 2 years thereafter, the eligible entity 
        shall submit a report to the Secretary, in such manner and 
        containing such information as the Secretary may require, that 
        includes--
                    ``(A) the progress in meeting the annual 
                implementation benchmarks included in the application 
                of such eligible entity under section 499K(a)(1)(B);
                    ``(B) the progress in improving the student 
                outcomes identified by the entity under section 
                499K(a)(1)(F); and
                    ``(C) with respect to the 2 years after such report 
                is submitted--
                            ``(i) a plan for the use of funds under 
                        this subpart; and
                            ``(ii) the amount of funds requested by the 
                        eligible entity under this subpart.
            ``(2) Approval.--Not later than 180 days after receiving a 
        plan under paragraph (1)(C)(i), the Secretary shall--
                    ``(A) approve the plan; or
                    ``(B) require revisions to such plan.
            ``(3) Revisions required.--An eligible entity shall make 
        such revisions as required by the Secretary under paragraph 
        (2)(B).
    ``(b) Failure To Meet Requirements.--If an eligible entity does not 
meet the annual implementation benchmarks included in the application 
of such eligible entity under section 499K(a)(1)(B), as required to be 
reported under subsection (a)(1)(A), such eligible entity shall submit 
to the Secretary, at such time and in such manner as the Secretary may 
require--
            ``(1) a written explanation for the delay in meeting such 
        requirements; and
            ``(2) a plan that will enable such eligible entity to meet 
        such requirements not later than 1 year after the date on which 
        the eligible entity submitted the written explanation under 
        paragraph (1).
    ``(c) Publication.--The Secretary shall make each plan approved 
under subsection (a)(2)(A), each plan revised under subsection (a)(3), 
and each plan submitted under subsection (b)(2) available to the public 
on the website of the Department.

``SEC. 499M. ALLOWABLE USES OF FUNDS.

    ``(a) In General.--Except as provided in subsection (b), an 
eligible entity shall use a grant under this subpart only to carry out 
the plan approved or revised for such year under section 499K.
    ``(b) Use of Funds for Administrative Purposes.--An eligible entity 
that receives a grant under this subpart may use not more than 5 
percent of such grant for administrative purposes relating to the grant 
under this subpart.
    ``(c) Prohibited Uses of Funds.--No funds received under this 
section shall be used to--
            ``(1) pay contractors for the provision of pre-enrollment 
        recruitment activities through a revenue sharing agreement; or
            ``(2) fund endowments, athletics, sectarian instruction, or 
        religious worship.

``SEC. 499N. ELIGIBLE ENTITY DEFINED.

    ``In this subpart, the term `eligible entity' means a State or 
Tribal College or University that is a recipient of a grant under 
subpart 1.

``SEC. 499O. APPROPRIATIONS.

    ``(a) Authorization and Appropriations.--There are authorized to be 
appropriated, and there are appropriated to carry out this subpart (in 
addition to any other amounts appropriated to carry out this subpart 
and out of any money in the Treasury not otherwise appropriated), 
$1,000,000,000 for fiscal year 2024 and each succeeding fiscal year.
    ``(b) Availability.--Funds appropriated under subsection (a) shall 
remain available to the Secretary until expended.''.

TITLE III--PATHWAYS TO STUDENT SUCCESS FOR HISTORICALLY BLACK COLLEGES 
   AND UNIVERSITIES, TRIBAL COLLEGES AND UNIVERSITIES, AND MINORITY-
                          SERVING INSTITUTIONS

SEC. 301. GRANTS TO HISTORICALLY BLACK COLLEGES AND UNIVERSITIES, 
              TRIBAL COLLEGES AND UNIVERSITIES, AND MINORITY-SERVING 
              INSTITUTIONS.

    Part J of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.), as added and amended by this Act, is further amended by 
adding at the end the following:

 ``Subpart 3--Grants to Historically Black Colleges and Universities, 
  Tribal Colleges and Universities, and Minority-Serving Institutions

``SEC. 499P. PATHWAYS TO STUDENT SUCCESS FOR HISTORICALLY BLACK 
              COLLEGES AND UNIVERSITIES.

    ``From amounts appropriated under section 499U(a) for any fiscal 
year, the Secretary shall award grants to participating historically 
Black colleges or universities that meet the requirements of section 
499S(a) to--
            ``(1) encourage students to enroll and successfully 
        complete a bachelor's degree at such colleges and universities;
            ``(2) provide incentives to community college students to 
        transfer to such colleges and universities through strong 
        transfer pathways to complete a bachelor's degree program; and
            ``(3) support such colleges and universities to better 
        serve new and existing students by engaging in reforms and 
        innovations designed to improve completion rates and other 
        student outcomes.

``SEC. 499Q. PATHWAYS TO STUDENT SUCCESS FOR TRIBAL COLLEGES AND 
              UNIVERSITIES.

    ``From amounts appropriated under section 499U(a) for any fiscal 
year, the Secretary shall award grants to participating Tribal Colleges 
or Universities that meet the requirements of section 499S(a) to--
            ``(1) encourage students to enroll and successfully 
        complete a bachelor's degree at such Colleges and Universities;
            ``(2) provide incentives to community college students to 
        transfer to such Colleges and Universities through strong 
        transfer pathways to complete a bachelor's degree program; and
            ``(3) support such Colleges and Universities to better 
        serve new and existing students by engaging in reforms and 
        innovations designed to improve completion rates and other 
        student outcomes.

``SEC. 499R. PATHWAYS TO STUDENT SUCCESS FOR ALASKA NATIVE-SERVING 
              INSTITUTIONS, ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC 
              ISLANDER-SERVING INSTITUTIONS, HISPANIC-SERVING 
              INSTITUTIONS, NATIVE AMERICAN-SERVING NONTRIBAL 
              INSTITUTIONS, NATIVE HAWAIIAN-SERVING INSTITUTIONS, AND 
              PREDOMINANTLY BLACK INSTITUTIONS.

    ``From amounts appropriated under section 499U(a) for any fiscal 
year, the Secretary shall award grants to participating Alaska Native-
serving institutions, Asian American and Native American Pacific 
Islander-serving institutions, Hispanic-serving institutions, Native 
American-serving nontribal institutions, Native Hawaiian-serving 
institutions, and Predominantly Black institutions that meet the 
requirements of section 499S(a) to--
            ``(1) encourage students to enroll and successfully 
        complete a bachelor's degree at such institutions;
            ``(2) provide incentives to community college students to 
        transfer to such institutions through strong transfer pathways 
        to complete a bachelor's degree program; and
            ``(3) support such institutions to better serve new and 
        existing students by engaging in reforms and innovations 
        designed to improve completion rates and other student 
        outcomes.

``SEC. 499S. GRANT TERMS.

    ``(a) Institutional Eligibility.--An institution shall meet the 
requirements of this subsection if the institution--
            ``(1) in a public or nonprofit 4-year institution that has 
        a student body of which not less than 35 percent are low-income 
        students;
            ``(2) commits to maintaining or adopting and implementing 
        promising and evidence-based institutional reforms and 
        innovative practices to improve the completion rates and other 
        student outcomes, such as--
                    ``(A) providing comprehensive academic, career, and 
                student support services (including mentoring, 
                advising, case management services, and career pathway 
                navigation), especially for low-income, first-
                generation, and adult students, and other students 
                belonging to racial and other groups that are 
                historically underrepresented in higher education;
                    ``(B) providing direct support services, or 
                assistance in applying for such services, such as--
                            ``(i) childcare, transportation, and 
                        emergency financial assistance;
                            ``(ii) assistance in obtaining health 
                        insurance coverage and accessing health care 
                        services, including behavioral and mental 
                        health services;
                            ``(iii) affordable housing;
                            ``(iv) nutrition assistance programs or 
                        free or discounted food; and
                            ``(v) means-tested Federal benefit 
                        programs, or similar State, tribal, or local 
                        benefit programs;
                    ``(C) providing accelerated learning opportunities 
                and degree pathways, such as dual or concurrent 
                enrollment programs and pathways to graduate and 
                professional degree programs;
                    ``(D) partnering with employers, industry, 
                nonprofit associations, and other groups to provide 
                opportunities to advance learning outside the 
                classroom, including--
                            ``(i) work-based learning opportunities 
                        (such as internships or apprenticeships); or
                            ``(ii) programs designed to improve inter-
                        cultural development and personal growth (such 
                        as foreign exchange and study abroad programs); 
                        or
                    ``(E) strengthening remedial education, especially 
                for low-income, first-generation, and adult students, 
                and other students belonging to racial and other groups 
                that are historically underrepresented in higher 
                education, including through the use of multiple 
                measures (such as a student's college entrance 
                examination score, grade point average, high school 
                course list, or a placement examination) to identify 
                students in need of remedial education;
            ``(3) sets performance goals for improving student outcomes 
        for the duration of the grant; and
            ``(4) if receiving a grant for transfer students, has a 
        formal, statewide articulation agreement with community 
        colleges in the State in which such institution operates that 
        guarantees--
                    ``(A) that a student who earns postsecondary credit 
                at any community college in such State shall be able to 
                fully transfer such credit toward meeting related 
                degree or certificate requirements at such institution; 
                and
                    ``(B) that associate degrees awarded by community 
                colleges in the State are fully transferable to, and 
                credited as, the first 2 years of related baccalaureate 
                programs at such institution.
    ``(b) Grant Amount.--
            ``(1) Initial amount.--For the first year that an eligible 
        institution participates in the grant program under this 
        subpart and subject to paragraph (3), such eligible institution 
        shall receive a grant in an amount based on the product of--
                    ``(A) the actual cost of tuition and fees at the 
                eligible institution in such year (referred to in this 
                subpart as the per-student rebate); and
                    ``(B) the number of eligible students enrolled in 
                the eligible institution for the preceding year.
            ``(2) Subsequent increases.--For each succeeding year after 
        the first year of the grant program under this subpart, each 
        participating eligible institution shall receive a grant in the 
        amount determined under paragraph (1) for such year, except 
        that in no case shall the amount of the per-student rebate for 
        an eligible institution increase by more than 3 percent as 
        compared to the amount of such rebate for the preceding year.
            ``(3) Limitations.--
                    ``(A) Maximum per-student rebate.--No eligible 
                institution participating in the grant program under 
                this subpart shall receive a per-student rebate amount 
                for any year that is greater than the national average 
                of annual tuition and fees at public 4-year 
                institutions of higher education for such year, as 
                determined by the Secretary.
                    ``(B) First-year tuition and fees.--During the 
                first year of participation in the grant program under 
                this subpart, no eligible institution may increase 
                tuition and fees at a rate greater than any annual 
                increase at the eligible institution in the previous 5 
                years.
            ``(4) Students enrolled less than full-time.--The Secretary 
        shall develop and implement a formula for making adjustments to 
        grant amounts under this subpart based on the number of 
        eligible students at each eligible institution enrolled less 
        than full-time and the associated tuition and fees charged to 
        such students in proportion to the degree to which each such 
        student is not attending on a full-time basis.
    ``(c) Application.--An eligible institution that desires a grant 
under this subpart shall submit an application to the Secretary at such 
time, in such manner, and containing such information as the Secretary 
may require.
    ``(d) Use of Funds.--Funds awarded under this subpart to a 
participating eligible institution shall be used to waive or 
significantly reduce tuition and fees for eligible students by an 
amount not to exceed the annual per-student rebate amount. Such funds 
under this subpart may only be used to waive or reduce tuition and fees 
for the first 60 credits for which an eligible student is enrolled in 
the participating eligible institution.
    ``(e) Supplement, Not Supplant.--Funds made available under section 
499U to carry out this subpart shall be used to supplement, and not 
supplant, other Federal, State, tribal, and local funds that would 
otherwise be expended to carry out activities under this subpart.

``SEC. 499T. DEFINITIONS.

    ``In this subpart:
            ``(1) Alaska native-serving institution.--The term `Alaska 
        Native-serving institution' has the meaning given such term in 
        section 317(b).
            ``(2) Asian american and native american pacific islander-
        serving institution.--The term `Asian American and Native 
        American Pacific Islander-serving institution' has the meaning 
        given such term in section 371(c).
            ``(3) Eligible student.--The term `eligible student' means 
        a student, regardless of age, who--
                    ``(A) is enrolled in an eligible program (as 
                defined in section 481(b)) at a participating eligible 
                institution, on at least a half-time basis;
                    ``(B) is a low-income student;
                    ``(C) has been enrolled at such participating 
                eligible institution under this subpart for not more 
                than 60 credits; and
                    ``(D) has not been enrolled (whether full-time or 
                less than full-time) for more than 6 semesters (or the 
                equivalent) for which the student received a benefit 
                under this subpart.
            ``(4) Hispanic-serving institution.--The term `Hispanic-
        serving institution' has the meaning given such term in section 
        502.
            ``(5) Historically black college or university.--The term 
        `historically Black college or university' means a part B 
        institution described in section 322(2).
            ``(6) Low-income student.--The term `low-income student' 
        shall include--
                    ``(A) any student eligible for a Federal Pell Grant 
                under section 401; and
                    ``(B) any student who meets the financial 
                eligibility criteria for receiving a Federal Pell Grant 
                under section 401, but who is ineligible to receive a 
                Federal Pell Grant.
            ``(7) Native american-serving nontribal institution.--The 
        term `Native American-serving nontribal institution' has the 
        meaning given such term in section 371(c).
            ``(8) Native hawaiian-serving institution.--The term 
        `Native Hawaiian-serving institution' has the meaning given 
        such term in section 317(b).
            ``(9) Predominantly black institution.--The term 
        `Predominantly Black institution' has the meaning given such 
        term in section 371(c).
            ``(10) Tribal college or university.--The term `Tribal 
        College or University' has the meaning given the term in 
        section 316(b)(3).

``SEC. 499U. APPROPRIATIONS.

    ``(a) Authorization and Appropriations for HBCU, TCU, and MSI 
Grants.--For the purpose of carrying out this subpart there are 
authorized to be appropriated, and there are appropriated--
            ``(1) $98,100,000 for fiscal year 2024;
            ``(2) $321,040,000 for fiscal year 2025;
            ``(3) $1,912,010,000 for fiscal year 2026;
            ``(4) $1,988,710,000 for fiscal year 2027;
            ``(5) $2,068,960,000 for fiscal year 2028;
            ``(6) $2,151,010,000 for fiscal year 2029;
            ``(7) $2,184,900,000 for fiscal year 2030;
            ``(8) $2,329,370,000 for fiscal year 2031;
            ``(9) $2,423,910,000 for fiscal year 2032; and
            ``(10) $2,521,990,000 for fiscal year 2033 and each 
        succeeding fiscal year.
    ``(b) Availability.--Funds appropriated under subsection (a) for a 
fiscal year are to remain available to the Secretary through the two 
fiscal years following such fiscal year.
    ``(c) Insufficient Funds.--If the amount appropriated under 
subsection (a) for a fiscal year is not sufficient to award each 
institution participating in the grant programs under sections 499P, 
499Q, and 499R a grant under this subpart equal to 100 percent of the 
grant amount determined under section 499S(b), the Secretary may 
ratably reduce the amount of each such grant or take other actions 
necessary to ensure an equitable distribution of such amount 
appropriated under subsection (a).''.
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