I 

116TH CONGRESS 

1ST SESSION H. R. 1571 

To establish State-Federal partnerships to provide students the opportunity 

to attain higher education at in-State public institutions of higher education without debt, to provide Federal Pell Grant eligibility to DREAMer students, to repeal suspension of eligibility under the Higher Education Act of 1965 for drug-related offenses, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 6, 2019 

Mr. POCAN (for himself, Ms. BARRAGA ́N, Mr. BRENDAN F. BOYLE of Pennsylvania, Ms. JUDY CHU of California, Ms. DEAN, Mr. DESAULNIER, Mr. 

GARCI ́A of Illinois, Mr. GOMEZ, Mr. GONZALEZ of Texas, Mr. GRIJALVA, 

Ms. HAALAND, Ms. HILL of California, Ms. NORTON, Mr. HUFFMAN, Ms. 

JAYAPAL, Mr. KHANNA, Ms. LEE of California, Mr. LEVIN of Michigan, 

Mrs. CAROLYN B. MALONEY of New York, Ms. MOORE, Mrs. NAPOLITANO, Ms. OMAR, Ms. PRESSLEY, Mr. RASKIN, Ms. ROYBAL-ALLARD, 

Ms. SCHAKOWSKY, Mr. SERRANO, Mr. TAKANO, Mr. THOMPSON of Mississippi, Ms. TLAIB, Ms. VELA ́ZQUEZ, Mrs. WATSON COLEMAN, and Mr. 

WELCH) introduced the following bill; which was referred to the Committee on Education and Labor 

A BILL 

To establish State-Federal partnerships to provide students 

the opportunity to attain higher education at in-State 

public institutions of higher education without debt, to 

provide Federal Pell Grant eligibility to DREAMer students, to repeal suspension of eligibility under the Higher 

Education Act of 1965 for drug-related offenses, and 

for other purposes. 


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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 ‘‘Debt-Free College Act 

5 of 2019’’. 

6 SEC. 2. DEBT-FREE COLLEGE PARTNERSHIP. 

7 Title IV of the Higher Education Act of 1965 (20 

8 U.S.C. 1070 et seq.) is amended by adding at the end 

9 the following: 

10 ‘‘PART J—DEBT-FREE COLLEGE PARTNERSHIP 

11 ‘‘SEC. 499A–1. PURPOSE. 

12 ‘‘The purpose of this part is to establish State-Fed13 eral partnerships that will— 

14 ‘‘(1) increase investment in public higher edu15 cation; and 

16 ‘‘(2) provide students the opportunity to attain 

17 higher education at in-State public institutions of 

18 higher education without debt (‘debt-free college’). 

19 ‘‘SEC. 499A–2. DEFINITIONS. 

20 ‘‘In this part: 

21 ‘‘(1) COLLEGE COMPLETION PROGRAM.—The 

22 term ‘college completion program’ means a program 

23 or service at an institution of higher education that 

24 is dedicated to addressing barriers to degree attain25 ment, particularly for low-income students, for the 


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1 purpose of increasing the percentage of students 

2 completing programs of study in their entirety and 

3 attaining related degrees. 

4 ‘‘(2) COST OF ATTENDANCE.—The term ‘cost of 

5 attendance’ means— 

6 ‘‘(A) tuition and fees normally assessed a 

7 student carrying the same academic workload 

8 as determined by the institution, and including 

9 costs for rental or purchase of any equipment, 

10 materials, or supplies required of all students in 

11 the same course of study; 

12 ‘‘(B) an allowance for books, supplies, 

13 transportation, and miscellaneous personal ex14 penses, including a reasonable allowance for the 

15 documented rental or purchase of a personal 

16 computer, for a student attending the institu17 tion on at least a half-time basis, as determined 

18 by the institution; and 

19 ‘‘(C) an allowance (determined by the in20 stitution) for room and board costs incurred by 

21 the student which— 

22 ‘‘(i) shall be an allowance determined 

23 by the institution for a student without de24 pendents residing at home with parents; 


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1 ‘‘(ii) for students without dependents 

2 residing in institutionally owned or oper3 ated housing, shall be a standard allowance 

4 determined by the institution based on the 

5 amount normally assessed most of its resi6 dents for room and board; 

7 ‘‘(iii) for students who live in housing 

8 located on a military base or for which a 

9 basic allowance is provided under section 

10 403(b) of title 37, United States Code, 

11 shall be an allowance based on the ex12 penses reasonably incurred by such stu13 dents for board but not for room; and 

14 ‘‘(iv) for all other students shall be an 

15 allowance based on the expenses reason16 ably incurred by such students for room 

17 and board. 

18 ‘‘(3) DEBT-FREE COLLEGE COMMITMENT.—The 

19 term ‘debt-free college commitment’ means a com20 mitment by a State participating in the State-Fed21 eral partnership under this part to cover the unmet 

22 financial need for all eligible students. 

23 ‘‘(4) ELIGIBLE STUDENT.—The term ‘eligible 

24 student’ means an individual who— 


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1 ‘‘(A) is enrolled, or is eligible to enroll, in 

2 a public institution of higher education in the 

3 State in which the individual resides; 

4 ‘‘(B) completes a Free Application for 

5 Federal Student Aid; and 

6 ‘‘(C) demonstrates satisfactory academic 

7 progress, as defined under the Federal Pell 

8 Grant program under subpart 1 of part A, once 

9 enrolled in a public institution of higher edu10 cation in the State in which the individual re11 sides. 

12 ‘‘(5) FULL-TIME EQUIVALENT STUDENTS.—The 

13 term ‘full-time equivalent students’ means the sum 

14 of the number of students enrolled full time at an 

15 institution, plus the full-time equivalent of the num16 ber of students enrolled part time, which shall be de17 fined and calculated in the manner determined most 

18 appropriate by the Secretary. 

19 ‘‘(6) NET STATE OPERATING SUPPORT.—The 

20 term ‘net State operating support’ means an amount 

21 that is equal to the amount of State funds and local 

22 government appropriations used to support public 

23 higher education annual operating expenses in the 

24 State, calculated in accordance with subparagraphs 

25 (A) and (B). 


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1 ‘‘(A) CALCULATION.—A State’s net State 

2 operating support shall, for a fiscal year, be an 

3 amount that is equal to the difference resulting 

4 from the gross amount of State funds appro5 priated and disbursed by the State and ex6 pended by the recipient institutions in the fiscal 

7 year for public higher education operating ex8 penses in the State, minus— 

9 ‘‘(i) such appropriations that are re10 turned to the State; 

11 ‘‘(ii) State-appropriated funds derived 

12 from Federal sources, including funds pro13 vided under this part; 

14 ‘‘(iii) local government funds not ap15 propriated for operating support for public 

16 higher education; 

17 ‘‘(iv) amounts that are portions of 

18 multi-year appropriations to be distributed 

19 over multiple years that are not to be 

20 spent for the year for which the calculation 

21 is being made; 

22 ‘‘(v) tuition charges remitted to the 

23 State to offset State appropriations; 


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1 ‘‘(vi) State funding for students in 

2 non-credit continuing or adult education 

3 courses and non-credit extension courses; 

4 ‘‘(vii) sums appropriated to private 

5 nonprofit institutions of higher education, 

6 or to proprietary institutions of higher 

7 education, for capital outlay or operating 

8 expenses; and 

9 ‘‘(viii) any other funds excluded under 

10 subparagraph (B). 

11 ‘‘(B) EXCLUSIONS.—Net State operating 

12 support does not include— 

13 ‘‘(i) funds for— 

14 ‘‘(I) student aid programs that 

15 provide grants to students attending 

16 in-State private nonprofit institutions 

17 of higher education, in-State propri18 etary institutions of higher education, 

19 independent institutions, and out-of20 State institutions; 

21 ‘‘(II) capital outlay; 

22 ‘‘(III) deferred maintenance; or 

23 ‘‘(IV) research and development; 

24 or 


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1 ‘‘(ii) any other funds that the Sec2 retary may exclude. 

3 ‘‘(7) NET STATE OPERATING SUPPORT PER FTE

4 STUDENT.—The term ‘net State operating support 

5 per FTE student’ means, for a fiscal year— 

6 ‘‘(A) the net State operating support for 

7 the previous fiscal year; divided by 

8 ‘‘(B) the full-time equivalent students for 

9 the previous fiscal year. 

10 ‘‘(8) PARTNERSHIP OFFICE.—The term ‘Part11 nership Office’ means the Office created under sec12 tion 499A–4(a). 

13 ‘‘(9) PUBLIC INSTITUTION OF HIGHER EDU14 CATION.—The term ‘public institution of higher edu15 cation’ means an educational institution in any State 

16 that— 

17 ‘‘(A) admits as regular students only per18 sons having a certificate of graduation from a 

19 school providing secondary education, or the 

20 recognized equivalent of such a certificate, or 

21 persons who are eligible students; 

22 ‘‘(B) is legally authorized within such 

23 State to provide a program of education beyond 

24 secondary education; 


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1 ‘‘(C) provides an educational program for 

2 which the institution awards a bachelor’s degree 

3 or provides not less than a 2-year program that 

4 is acceptable for full credit toward such a de5 gree, or awards a degree that is acceptable for 

6 admission to a graduate or professional degree 

7 program, subject to review and approval by the 

8 Secretary; 

9 ‘‘(D) has the full faith and credit of the 

10 State; and 

11 ‘‘(E) is accredited by a nationally recog12 nized accrediting agency or association, or if 

13 not so accredited, is an institution that has 

14 been granted preaccreditation status by such an 

15 agency or association that has been recognized 

16 by the Secretary for the granting of preaccredi17 tation status, and the Secretary has determined 

18 that there is satisfactory assurance that the in19 stitution will meet the accreditation standards 

20 of such an agency or association within a rea21 sonable time. 

22 ‘‘(10) RELEVANT COMMITTEES OF CON23 GRESS.—The term ‘relevant committees of Congress’ 

24 means the Committee on Health, Education, Labor, 

25 and Pensions and the Committee on Appropriations 


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1 of the Senate and the Committee on Education and 

2 Labor and the Committee on Appropriations of the 

3 House of Representatives. 

4 ‘‘(11) UNMET NEED.—The term ‘unmet need’ 

5 means the difference between a student’s cost of at6 tendance to attend an in-State public institution of 

7 higher education and the student’s expected family 

8 contribution plus any Federal, State, or local sources 

9 of grant aid. 

10 ‘‘SEC. 499A–3. ESTABLISHMENT OF A STATE-FEDERAL PART11 NERSHIP GRANT PROGRAM. 

12 ‘‘(a) GRANTS AUTHORIZED.—The Secretary shall 

13 award grants to States to establish State-Federal partner14 ships with a goal of providing debt-free college for all eligi15 ble students at in-State public institutions of higher edu16 cation. 

17 ‘‘(b) APPLICATION.—A State that desires to partici18 pate in the State-Federal partnership under this part shall 

19 submit an application to the Secretary at such time, in 

20 such manner, and accompanied by such information as the 

21 Secretary may require. 

22 ‘‘(c) AMOUNT OF GRANTS.— 

23 ‘‘(1) IN GENERAL.—The Secretary shall award 

24 a grant to a State that submits an application under 


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1 subsection (b) for a fiscal year in an amount that is 

2 equal to State’s net State operating support. 

3 ‘‘(2) RATABLE REDUCTION.—If the amount ap4 propriated to carry out this part for a fiscal year is 

5 insufficient to award each State the State’s full 

6 grant amount pursuant to paragraph (1), the Sec7 retary shall establish procedures for ratably reducing 

8 each State’s award amount for such fiscal year. 

9 ‘‘(d) AMOUNTS NOT EXPENDED.—Any amount of a 

10 grant awarded under this part that is not expended on 

11 allowable expenditures by the end of the fiscal year for 

12 which the grant was awarded shall be applied to the fol13 lowing year’s grant award amount, if the State remains 

14 eligible to receive a grant under this part for such fol15 lowing year. If such State is not eligible to receive a grant 

16 under this part for such following year, the State shall 

17 return the unexpended balance amount to the Federal 

18 Government. 

19 ‘‘SEC. 499A–4. STATE-FEDERAL PARTNERSHIP RESPON20 SIBILITIES. 

21 ‘‘(a) FEDERAL.— 

22 ‘‘(1) IN GENERAL.—The Secretary shall create 

23 an office in the Department of Education to admin24 ister the State-Federal partnerships established 


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1 under this part. Such Partnership Office shall be re2 sponsible for— 

3 ‘‘(A) administering grant awards; 

4 ‘‘(B) monitoring compliance with partner5 ship requirements; 

6 ‘‘(C) providing technical assistance to 

7 States in applying for participation in, and im8 plementing, a partnership; and 

9 ‘‘(D) providing information to students in 

10 participating States. 

11 ‘‘(2) EVALUATIONS.—The Partnership Office 

12 shall develop metrics of evaluation and perform an 

13 annual evaluation of each State participating in a 

14 State-Federal partnership under this part. The eval15 uation shall assess the State’s success in meeting the 

16 partnership’s goals, including— 

17 ‘‘(A) providing debt-free college for all eli18 gible students; 

19 ‘‘(B) increasing State investment in higher 

20 education; 

21 ‘‘(C) maintaining access to in-State public 

22 institutions of higher education for low-income 

23 and underserved students; 

24 ‘‘(D) maintaining and improving rates of 

25 college completion and academic quality; 


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1 ‘‘(E) maintaining or reducing the cost of 

2 public higher education and the price charged 

3 to students; and 

4 ‘‘(F) investing in improving capacity, ac5 cess, quality, and student achievement of in6 State public institutions of higher education. 

7 ‘‘(3) ANNUAL REPORT.—The Partnership Of8 fice shall submit an annual report to the relevant 

9 committees of Congress and include information 

10 gained from the annual evaluation under paragraph 

11 (2). 

12 ‘‘(4) WEBSITE.—The Partnership Office shall 

13 create a public, consumer-oriented website with in14 formation about State-Federal partnerships estab15 lished under this part, including information from 

16 the annual evaluation under paragraph (2). 

17 ‘‘(b) STATE.— 

18 ‘‘(1) IN GENERAL.—A State that receives a 

19 grant under this part to establish a State-Federal 

20 partnership shall— 

21 ‘‘(A) distribute the grant funds according 

22 to the allowable uses of funds described in sec23 tion 499A–5 in a manner designed to best 

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1 free college for all eligible students at in-State 

2 public institutions of higher education; 

3 ‘‘(B) maintain access at each in-State pub4 lic institution of higher education for low-in5 come and underserved students; 

6 ‘‘(C) cap tuition and fees at public institu7 tions of higher education in the State at levels 

8 as of the date of enactment of the Debt-Free 

9 College Act of 2019, with a yearly increase al10 lowed based on the Consumer Price Index (as 

11 determined by the Secretary); 

12 ‘‘(D) commit to working with in-State pub13 lic institutions of higher education to reduce 

14 tuition and fees as the net State operating sup15 port increases; 

16 ‘‘(E) maintain State need-based financial 

17 aid programs in effect on the date of enactment 

18 of the Debt-Free College Act of 2019 or use 

19 State funds for such programs to further the 

20 debt-free commitment made under the State21 Federal partnership; 

22 ‘‘(F) maintain or increase levels of net 

23 State operating support in effect on the date of 

24 enactment of the Debt-Free College Act of 


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1 2019, subject to the maintenance of effort pro2 visions contained in this part; 

3 ‘‘(G) develop, adopt, and implement a 

4 State formula for calculating the cost of attend5 ance at in-State public institutions of higher 

6 education; 

7 ‘‘(H) develop statewide credit transfer poli8 cies to— 

9 ‘‘(i) facilitate credit transfers among 

10 in-State public institutions of higher edu11 cation; and 

12 ‘‘(ii) provide students with clear and 

13 timely information about credit transfer 

14 policies at in-State public institutions of 

15 higher education; and 

16 ‘‘(I) clearly communicate to prospective 

17 students, their families, and the general public 

18 how the State plans to implement the State19 Federal partnership and how eligible students 

20 can attend a public institution of higher edu21 cation in the State without debt, including early 

22 notification for students of their eligibility for 

23 financial aid under the partnership. 

24 ‘‘(2) 5-YEAR PLAN.— 


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1 ‘‘(A) IN GENERAL.—In order to receive a 

2 grant under this part, a State shall provide to 

3 the Secretary a 5-year plan for achieving the 

4 goals of the State-Federal partnership. A State 

5 shall update and resubmit a plan every 5 years 

6 thereafter. 

7 ‘‘(B) PLAN TO MEET GOALS.—The 5-year 

8 plan shall detail how the State plans to meet 

9 the goal of providing debt-free college for all eli10 gible students at in-State public institutions of 

11 higher education within 5 years and increase 

12 the State’s investment in higher education, with 

13 specific benchmarks detailed for each year. 

14 ‘‘(C) APPROVED BY THE SECRETARY.— 

15 The 5-year plan, and the State’s annual 

16 progress, shall be approved by the Secretary in 

17 order for the State to be eligible to receive, or 

18 continue receiving, grant funds under the State19 Federal Partnership award. 

20 ‘‘(D) WAIVER OF 5-YEAR DEADLINE.—A 

21 State may apply for a waiver from the deadline 

22 of meeting all of the State-Federal partner23 ship’s goals within 5 years if the State— 

24 ‘‘(i) provides a credible plan for mak25 ing progress towards the goals; and 


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1 ‘‘(ii) is able to demonstrate that the 

2 State will, at a minimum, provide debt-free 

3 college within 5 years to eligible students 

4 who are Federal Pell Grant recipients 

5 under subpart 1 of part A. 

6 ‘‘(3) NO ADDITIONAL ELIGIBILITY REQUIRE7 MENTS.—A State that receives a grant under this 

8 part to establish a State-Federal partnership may 

9 not impose additional eligibility requirements on stu10 dents other than those contained in this part. 

11 ‘‘SEC. 499A–5. USES OF FUNDS. 

12 ‘‘(a) IN GENERAL.— 

13 ‘‘(1) NEED-BASED AID FOR PELL RECIPI14 ENTS.—A State that receives a grant under this 

15 part to establish a State-Federal partnership shall 

16 disburse funds from the net State operating support 

17 and the partnership grant funds on the basis of 

18 need, as determined by the Free Application for 

19 Federal Student Aid, to cover the unmet need for 

20 each eligible student who receives a Federal Pell 

21 Grant under subpart 1 of part A. 

22 ‘‘(2) DISBURSEMENT OF REMAINING FUNDS.— 

23 Any funds that remain after a State disburses funds 

24 in accordance with paragraph (1) shall be used by 

25 the State to cover part or all of the unmet need for 


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1 eligible students who do not receive a Federal Pell 

2 Grant under subpart 1 of part A, with priority based 

3 on student financial need, in a manner determined 

4 by the State. 

5 ‘‘(3) NO FUNDS IN EXCESS OF COST OF AT6 TENDANCE.—An eligible student shall not receive 

7 funds under this part in excess of the student’s ac8 tual cost of attendance. 

9 ‘‘(4) PRIVATE AID NOT TAKEN INTO AC10 COUNT.—In disbursing funds under this paragraph, 

11 the State shall not take into account any private 

12 sources of aid or loans available to an eligible stu13 dent. 

14 ‘‘(b) COLLEGE COMPLETION PROGRAMS.— 

15 ‘‘(1) IN GENERAL.—A State that receives a 

16 grant under this part for a fiscal year to establish 

17 a State-Federal partnership shall use 4 percent of 

18 the grant funds for such fiscal year to establish or 

19 increase funding for college completion programs. 

20 ‘‘(2) DISTRIBUTION.—From the total amount 

21 of grant funds available under paragraph (1) for a 

22 fiscal year, the State shall provide to each public in23 stitution of higher education in the State that is eli24 gible to participate in programs under this title for 

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1 tion to such total amount as the number of students 

2 enrolled in such institution of higher education who 

3 are eligible to receive a Federal Pell Grant bears to 

4 the number of students enrolled in all public institu5 tions of higher education in the State who are eligi6 ble to receive a Federal Pell Grant. 

7 ‘‘(3) ALLOWABLE USES.—An institution of 

8 higher education that receives funds under para9 graph (2) shall use such funds to establish, imple10 ment, or expand a college completion program, in11 cluding for the following purposes: 

12 ‘‘(A) Providing information to prospective 

13 and current students to assist and improve 

14 completion, including creating materials clari15 fying different program completion require16 ments and costs, holding seminars for prospec17 tive or current students on course schedules 

18 and program costs, and updating school 

19 websites to make information publically avail20 able. 

21 ‘‘(B) Hiring additional counselors and ad22 visors to focus on student completion support 

23 and training existing personnel to implement 

24 the college completion program. 


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1 ‘‘(C) Increasing academic support pro2 grams, such as writing coaches, tutors, pre3 requisite skill courses, and study materials, and 

4 enhancing academic facilities for students. 

5 ‘‘(D) Providing microgrants for students 

6 participating in the college completion program 

7 who maintain good academic standing and 

8 progress toward on-time graduation. 

9 ‘‘(4) REPORTING.— 

10 ‘‘(A) REPORTS FROM INSTITUTIONS.—An 

11 institution of higher education that receives 

12 funds under paragraph (2) shall submit to the 

13 State in which the institution is located at the 

14 end of each fiscal year a report that details the 

15 uses of funds, changes in the ratios of students 

16 to counselors, and 2-year and 4-year degree at17 tainment rates, disaggregated by race and Fed18 eral Pell Grant recipient status. 

19 ‘‘(B) SUSPENSION.—If a State determines 

20 that an institution of higher education that re21 ceives funds under paragraph (2) for a fiscal 

22 year used such funds for activities that were 

23 not allowable uses under paragraph (3), the 

24 State may suspend distribution of funds to the 

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1 quire the institution to submit proposed expend2 itures for approval before receiving funds again 

3 under paragraph (2). 

4 ‘‘(C) REPORT FROM STATE.—A State that 

5 receives a grant under this part for a fiscal year 

6 to establish a State-Federal partnership shall 

7 submit to the Secretary at the end of each fis8 cal year a report that details the uses of grant 

9 funds under this subsection in public institu10 tions of higher education in the State that are 

11 eligible to participate in programs under this 

12 title, changes in the ratio of students to coun13 selors in such institutions in the State, and 2- 

14 year and 4-year degree attainment rates in such 

15 institutions in the State, disaggregated by race 

16 and Federal Pell Grant recipient status. 

17 ‘‘(c) HIGHER EDUCATION RELATED ACTIVITIES.—A 

18 State that receives a grant under this part to establish 

19 a State-Federal partnership may use not more than 5 per20 cent of the grant funds for the following higher education 

21 related activities: 

22 ‘‘(1) Increasing the capacity within the public 

23 higher education system of the State, including 

24 through the following: 

25 ‘‘(A) Construction of new facilities. 


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1 ‘‘(B) Renovation of existing facilities. 

2 ‘‘(C) Hiring of faculty. 

3 ‘‘(D) Student support services. 

4 ‘‘(2) Increasing the enrollment of low-income 

5 and underserved students. 

6 ‘‘(3) Improving student outcomes, including 

7 meeting student learning goals, increasing comple8 tion rates, and improving post-graduate job place9 ment, in consultation with faculty and staff at in10 State public institutions of higher education. 

11 ‘‘(4) Providing information to prospective stu12 dents and families. 

13 ‘‘(5) Developing new higher education programs 

14 to meet the State’s workforce needs, in consultation 

15 with faculty and staff at in-State public institutions 

16 of higher education, employers, and other relevant 

17 stakeholders. 

18 ‘‘(6) Programs and student support services at 

19 public secondary schools if those programs and serv20 ices directly support an activity described in any of 

21 paragraphs (1) through (5). 

22 ‘‘(7) Other activities as approved by the Sec23 retary to improve the State’s public higher education 

24 system, particularly for low-income and underserved 

25 students. 


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1 ‘‘(d) ADMINISTRATION AND OTHER USES.—A State 

2 that receives a grant under this part to establish a State3 Federal partnership may use not more than 1 percent of 

4 the grant funds— 

5 ‘‘(1) to administer the partnership; and 

6 ‘‘(2) for— 

7 ‘‘(A) higher education research and data 

8 tools, such as those that link education and em9 ployment data systems; 

10 ‘‘(B) forming agreements with other States 

11 participating in the partnership for reciprocal 

12 student eligibility; and 

13 ‘‘(C) developing and implementing systems 

14 to provide early notification to students and 

15 families of their eligibility for financial aid. 

16 ‘‘(e) PROHIBITION ON USE OF FUNDS.—A State that 

17 receives a grant under this part to establish a State-Fed18 eral partnership may not use grant funds for— 

19 ‘‘(1) endowments; or 

20 ‘‘(2) the construction of athletic or commercial 

21 venues. 

22 ‘‘SEC. 499A–6. MAINTAINING NET STATE OPERATING SUP23 PORT FOR HIGHER EDUCATION. 

24 ‘‘(a) IN GENERAL.—A State that receives a grant 

25 under this part to establish a State-Federal partnership 


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1 shall maintain net State operating support for a fiscal year 

2 at a level that is not less than the level that is equal to 

3 the average of such net State operating support for the 

4 3 fiscal years preceding such fiscal year. 

5 ‘‘(b) WAIVERS.— 

6 ‘‘(1) IN GENERAL.—The Secretary may grant a 

7 waiver to a State from the requirement under sub8 section (a) for a fiscal year, if the State dem9 onstrates that— 

10 ‘‘(A) the net State operating support for 

11 such fiscal year as a percentage of total revenue 

12 available to the State that will fund higher edu13 cation for such fiscal year is not less than such 

14 percentage for the previous fiscal year; and 

15 ‘‘(B) unexpected or uncontrollable cir16 cumstances prevent the State from maintaining 

17 such State support. 

18 ‘‘(2) NO REDUCTION FOR SUBSEQUENT FISCAL

19 YEAR.—If the Secretary grants a State a waiver 

20 under paragraph (1) for a fiscal year, a determina21 tion of the required level of net State operating sup22 port for subsequent fiscal years shall exclude the fis23 cal year for which the waiver was granted. 


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1 ‘‘SEC. 499A–7. OVERSIGHT. 

2 ‘‘(a) IN GENERAL.—If a State that receives a grant 

3 under this part to establish a State-Federal partnership 

4 breaches a term of the partnership, the Partnership Office 

5 shall notify the State and provide the State an opportunity 

6 to correct the record or cure the breach within 30 days 

7 of the notification. 

8 ‘‘(b) RECOMMENDATION.—Based on the State’s re9 sponse to a notification under subsection (a), the Partner10 ship Office shall recommend that the Secretary— 

11 ‘‘(1) take no action; 

12 ‘‘(2) place the State on probation; or 

13 ‘‘(3) deem the State ineligible to continue to 

14 participate in the partnership. 

15 ‘‘(c) IMPLEMENTATION.— 

16 ‘‘(1) IN GENERAL.—Except as provided in para17 graph (2), the Secretary shall implement the rec18 ommendation of the Partnership Office under sub19 section (b). 

20 ‘‘(2) EXCEPTION.— 

21 ‘‘(A) IN GENERAL.—Subject to subpara22 graph (B), the Secretary may choose not to im23 plement the recommendation of the Partnership 

24 Office under subsection (b). 

25 ‘‘(B) REASONS AND REPORT.—If the Sec26 retary chooses not to implement the recVerDate Sep 11 2014 23:35 Mar 22, 2019 Jkt 089200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H1571.IH H1571

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1 ommendation of the Partnership Office under 

2 subsection (b), the Secretary shall— 

3 ‘‘(i) provide an explanation for such 

4 decision; and 

5 ‘‘(ii) notify the relevant committees of 

6 Congress in a report. 

7 ‘‘(d) PROBATION.— 

8 ‘‘(1) IN GENERAL.—If a State is placed on pro9 bation by the Secretary due to a breach of a term 

10 of the partnership, the State shall develop a plan to 

11 remedy the breach. 

12 ‘‘(2) WITHHOLDING.—With respect to a State 

13 that is placed on probation by the Secretary due to 

14 a breach of a term of the partnership, the Secretary 

15 shall withhold half of the State’s partnership grant 

16 award until the breach has been remedied or the 

17 State has demonstrated credible progress towards 

18 remedying the breach. 

19 ‘‘(e) INELIGIBILITY.— 

20 ‘‘(1) IN GENERAL.—If a State is deemed ineli21 gible to continue to participate in a partnership due 

22 to a breach of a term of the partnership, the State 

23 shall not receive its partnership grant award for the 

24 subsequent year. 


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1 ‘‘(2) REMAINING INELIGIBLE.—A State that is 

2 deemed ineligible to continue to participate in a 

3 partnership due to a breach of a term of the part4 nership, shall remain ineligible for participation until 

5 the State has demonstrated that the State meets the 

6 partnership’s requirements. 

7 ‘‘SEC. 499A–8. STATE WITHDRAWAL OR INELIGIBILITY. 

8 ‘‘(a) IN GENERAL.—If a State that receives a grant 

9 under this part to establish a State-Federal partnership 

10 intends to withdraw from the partnership or becomes ineli11 gible to continue participation under this part, the State 

12 shall comply with the requirements of this section, includ13 ing, if the State intends to withdraw, notifying the Sec14 retary and the Partnership Office 60 days prior to the 

15 withdrawal. 

16 ‘‘(b) CONTINUED COVERAGE.— 

17 ‘‘(1) IN GENERAL.—Any unexpended balance 

18 from a State-Federal partnership grant award that 

19 remains after a State notifies the Partnership Office 

20 of the State intention to withdraw from the partner21 ship or becomes ineligible to continue participation 

22 under this part shall be placed into an escrow ac23 count at the Department and used solely to provide 

24 need-based grant aid to an eligible student who has 

25 received a Federal Pell Grant under subpart 1 of 


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1 part A and who was enrolled before the State noti2 fied the Partnership Office of the State’s intention 

3 to withdraw from the partnership or the State be4 came ineligible. 

5 ‘‘(2) COVERAGE UNTIL STUDENTS FINISH PRO6 GRAM.— 

7 ‘‘(A) IN GENERAL.—A State that with8 draws from a State-Federal partnership or be9 comes ineligible to continue participation under 

10 this part shall continue to cover the unmet need 

11 for each eligible student who received a Federal 

12 Pell Grant under subpart 1 of part A and who 

13 was enrolled before the State notified the Part14 nership Office of the State’s intention to with15 draw from the partnership or became ineligible 

16 until each such student completes the student’s 

17 program of study at the institution or until the 

18 allotted time for completion of such program of 

19 study expires. 

20 ‘‘(B) PRIORITY.—In carrying out subpara21 graph (A), a State shall prioritize funding 

22 based on students’ financial need. 

23 ‘‘(3) COMMUNICATION OF INFORMATION.—A 

24 State that withdraws from a State-Federal partner25 ship or becomes ineligible to continue participation 


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1 under this part shall communicate its withdrawal or 

2 ineligibility, as appropriate, to students and families 

3 in the State and provide clear information to eligible 

4 students described in paragraph (2)(A) that the stu5 dents may continue to have their cost of attendance 

6 at an in-State public institution of higher education 

7 covered. 

8 ‘‘SEC. 499A–9. AUTHORIZATION OF APPROPRIATIONS. 

9 ‘‘(a) IN GENERAL.—There are authorized to be ap10 propriated to carry out this part— 

11 ‘‘(1) $84,000,000,000 for fiscal year 2020; and 

12 ‘‘(2) such sums as may be necessary for each 

13 fiscal years 2021 through 2030. 

14 ‘‘(b) AVAILABILITY.—Funds made available under 

15 subsection (a) shall be available for obligation through 

16 September 30 of the fiscal year succeeding the fiscal year 

17 for which such sums were appropriated.’’. 

18 SEC. 3. DEBT-FREE COLLEGE GRANT PROGRAM FOR HBCUS 

19 AND MSIS. 

20 Part F of title III of the Higher Education Act of 

21 1965 (20 U.S.C. 1067q et seq.) is amended by adding at 

22 the end the following: 

23 ‘‘SEC. 372. DEBT-FREE COLLEGE GRANT PROGRAM FOR 

24 HBCUS AND MSIS. 

25 ‘‘(a) DEFINITION OF ELIGIBLE INSTITUTION.— 


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1 ‘‘(1) IN GENERAL.—In this section, except as 

2 provided in paragraph (2), the term ‘eligible institu3 tion’ means an institution of higher education that 

4 is— 

5 ‘‘(A) a private, nonprofit 2-year or 4-year 

6 part B institution (as defined in section 322); 

7 ‘‘(B) a Tribal College or University (as de8 fined in section 316); or 

9 ‘‘(C) a private, nonprofit 2-year or 4-year 

10 institution— 

11 ‘‘(i) that is— 

12 ‘‘(I) a Hispanic-serving institu13 tion (as defined in section 502); 

14 ‘‘(II) an Alaska Native-serving 

15 institution (as defined in section 

16 317(b)); 

17 ‘‘(III) a Native Hawaiian-serving 

18 institution (as defined in section 

19 317(b)); 

20 ‘‘(IV) a Predominantly Black In21 stitution (as defined in section 318); 

22 ‘‘(V) an Asian American and Na23 tive American Pacific Islander-serving 

24 institution (as defined in section 

25 320(b)); or 


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1 ‘‘(VI) a Native American-serving, 

2 nontribal institution (as defined in 

3 section 319); and 

4 ‘‘(ii) in which not less than 35 percent 

5 of the students enrolled at the institution 

6 are eligible to receive a Federal Pell Grant. 

7 ‘‘(2) FOR-PROFIT INSTITUTION THAT CON8 VERTED TO A NONPROFIT INSTITUTION.—Notwith9 standing paragraph (1), an institution of higher edu10 cation is not an eligible institution if the institution 

11 was a for-profit institution of higher education that 

12 converted to a nonprofit institution of higher edu13 cation and less than 25 years have passed since the 

14 date of such conversion. 

15 ‘‘(b) GRANT PROGRAM AUTHORIZED.— 

16 ‘‘(1) IN GENERAL.—The Secretary shall award 

17 grants to eligible institutions to enable the institu18 tions to provide need-based financial aid to cover 

19 unmet need for students enrolled at the institutions. 

20 ‘‘(2) DURATION.—Grants awarded under this 

21 section shall be for a period of 5 years. 

22 ‘‘(c) APPLICATION.—An eligible institution that de23 sires a grant under this section shall submit an application 

24 to the Secretary at such time, in such manner, and accomVerDate Sep 11 2014 23:35 Mar 22, 2019 Jkt 089200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H1571.IH H1571

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1 panied by such information as the Secretary may require, 

2 including a plan detailing how— 

3 ‘‘(1) the eligible institution will use grant funds 

4 to provide debt-free college to the students enrolled 

5 at the institution; and 

6 ‘‘(2) the institution plans to meet the require7 ments of the grant program. 

8 ‘‘(d) AWARDING OF GRANTS.— 

9 ‘‘(1) IN GENERAL.— 

10 ‘‘(A) IN GENERAL.—A grant amount 

11 awarded to an eligible institution under this 

12 section for a year— 

13 ‘‘(i) shall be in an amount equal to 

14 the amount of the institution’s expendi15 tures on student undergraduate instruction 

16 and academic support for the year; and 

17 ‘‘(ii) shall not be disbursed for the 

18 year until the Partnership Office created 

19 under section 499A–4(a) reviews and ap20 proves the annual update submitted by the 

21 institution pursuant to subsection (f). 

22 ‘‘(B) RATABLE REDUCTION.—If the 

23 amount appropriated to carry out this section 

24 for a fiscal year is insufficient to award each el25 igible institution the institution’s full grant 


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1 amount pursuant to subparagraph (A), the Sec2 retary shall establish procedures for ratably re3 ducing each institution’s award amount for 

4 such fiscal year. 

5 ‘‘(2) WAIVERS.— 

6 ‘‘(A) IN GENERAL.—Subject to subpara7 graph (B), if the percentage of students eligible 

8 to receive a Federal Pell Grant who are enrolled 

9 at an eligible institution that receives a grant 

10 under this section decreases to less than 35 per11 cent after the first year of the grant award, 

12 such institution may apply to the Secretary for 

13 a waiver of the requirement that an institution 

14 to be eligible to receive a grant under this sec15 tion have not less than 35 percent of the stu16 dents enrolled at the institution eligible to re17 ceive a Federal Pell Grant. 

18 ‘‘(B) RESTRICTIONS ON WAIVER.—The 

19 Secretary shall grant a waiver under subpara20 graph (A)— 

21 ‘‘(i) only if the decrease in percentage 

22 is— 

23 ‘‘(I) small relative to the size of 

24 the student body; or 


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1 ‘‘(II) the result of unexpected or 

2 uncontrollable circumstances; and 

3 ‘‘(ii) not more than 2 times during the 

4 5-year grant period. 

5 ‘‘(e) USE OF GRANT FUNDS.— 

6 ‘‘(1) IN GENERAL.—An eligible institution that 

7 receives a grant under this section shall use the 

8 grant funds as follows: 

9 ‘‘(A) Ninety-five percent of the grant funds 

10 shall be— 

11 ‘‘(i) used to cover the unmet need for 

12 financial assistance to attend the institu13 tion of students who have not yet earned 

14 a bachelor’s degree; and 

15 ‘‘(ii) disbursed according to financial 

16 need. 

17 ‘‘(B) Five percent of the grant funds shall 

18 be used for the following activities: 

19 ‘‘(i) Increasing capacity through con20 struction or renovation of facilities. 

21 ‘‘(ii) Hiring faculty. 

22 ‘‘(iii) Student support services. 

23 ‘‘(iv) Other activities to increase en24 rollment of low-income and underserved 

25 students, improve student outcomes, and 


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1 provide information to prospective students 

2 and families, and other activities as ap3 proved by the Secretary to improve access, 

4 affordability, or quality of the education 

5 provided by the institution. 

6 ‘‘(2) PROHIBITION ON USE OF FUNDS.—An eli7 gible institution that receives a grant under this sec8 tion may not use grant funds for endowments or the 

9 construction of athletic or commercial venues. 

10 ‘‘(f) ANNUAL UPDATE.—An eligible institution that 

11 receives a grant under this section shall submit to the Sec12 retary an annual update— 

13 ‘‘(1) with any changes to the institution’s ex14 penditures on student instruction and academic sup15 port; and 

16 ‘‘(2) on how the institution is fulfilling the 

17 terms of the grant. 

18 ‘‘(g) TERMS OF THE GRANT.— 

19 ‘‘(1) GRANTEE COMMITMENT.—An eligible in20 stitution that receives a grant under this section 

21 shall carry out the following: 

22 ‘‘(A) Cap tuition and fees at the institution 

23 at the level as of the date of enactment of the 

24 Debt-Free College Act of 2019, with a yearly 


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1 increase allowed based on the Consumer Price 

2 Index (as determined by the Secretary). 

3 ‘‘(B) Maintain expenditures on instruction 

4 and academic support at the institution at a 

5 level that is not less than the average of such 

6 expenditures at the institution over the period 

7 of 3 years preceding the date of enactment of 

8 the Debt-Free College Act of 2019. 

9 ‘‘(C) Maintain the enrollment of low-in10 come students, as defined by the Secretary, at 

11 the institution at a level that is not less than 

12 the level of such enrollment as of the date of 

13 enactment of the Debt-Free College Act of 

14 2019. 

15 ‘‘(D) Maintain institutional aid at a level 

16 that is not less than the average of such aid 

17 over the period of 3 years preceding the date of 

18 enactment of the Debt-Free College Act of 

19 2019. 

20 ‘‘(E) Submit to the Secretary for approval 

21 the institution’s calculation of the cost of at22 tendance at such institution. 

23 ‘‘(F) Clearly communicate to prospective 

24 students and their families the following: 


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1 ‘‘(i) How students can attend the in2 stitution without debt. 

3 ‘‘(ii) That a debt-free college edu4 cation provided pursuant to this section is 

5 conditioned upon institutional eligibility 

6 and participation under this section and 

7 may not apply for each year that the stu8 dent is enrolled at the institution. 

9 ‘‘(2) BREACH OF TERMS OF GRANT.— 

10 ‘‘(A) IN GENERAL.—If an eligible institu11 tion that receives a grant under this section 

12 breaches a term of the grant, the Partnership 

13 Office created under section 499A–4(a) shall 

14 notify the institution and provide the institution 

15 with an opportunity to correct the record or 

16 cure the breach not later than 30 days after the 

17 date of the notification. 

18 ‘‘(B) RECOMMENDATION.—The Partner19 ship Office created under section 499A–4(a) 

20 shall, after considering the eligible institution’s 

21 response to a notification under subparagraph 

22 (A) or lack of response, make a recommenda23 tion to the Secretary that the Secretary— 

24 ‘‘(i) take no action with respect to the 

25 eligible institution; 


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1 ‘‘(ii) place the eligible institution on 

2 probation; or 

3 ‘‘(iii) revoke the eligible institution’s 

4 eligibility for the grant program under this 

5 section. 

6 ‘‘(C) PROBATION.—An eligible institution 

7 that is placed on probation by the Secretary 

8 shall develop a plan to remedy the breach of the 

9 term of the grant. If the eligible institution does 

10 not remedy the breach, the Secretary may levy 

11 a fine against the institution of an amount not 

12 to exceed 1 percent of the annual grant 

13 amount. 

14 ‘‘(D) INELIGIBILITY.—If an eligible insti15 tution’s eligibility for the grant program under 

16 this section has been revoked by the Secretary, 

17 such institution shall— 

18 ‘‘(i) place into escrow any unexpended 

19 grant funds described in subsection 

20 (e)(1)(A) to be disbursed directly to stu21 dents enrolled at the institution; 

22 ‘‘(ii) return to the Secretary any un23 expended funds described in subsection 

24 (e)(1)(B); 


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1 ‘‘(iii) remain ineligible to receive a 

2 grant under this section during the 3-year 

3 period after the date eligibility was re4 voked; and 

5 ‘‘(iv) notify prospective and enrolled 

6 students at the institution and their fami7 lies of such ineligibility for participation in 

8 the grant program under this section. 

9 ‘‘(h) WITHDRAWAL.—An eligible institution that re10 ceives a grant under this section that intends to withdraw 

11 from the grant program under this section shall— 

12 ‘‘(1) notify the Partnership Office created 

13 under section 499A–4(a) not less than 60 days prior 

14 to the withdrawal; 

15 ‘‘(2) place into escrow any unexpended grant 

16 funds to be disbursed directly to students enrolled at 

17 the institution; and 

18 ‘‘(3) notify prospective and enrolled students at 

19 the institution and their families of such withdrawal. 

20 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— 

21 ‘‘(1) IN GENERAL.—There are authorized to be 

22 appropriated to carry out this section— 

23 ‘‘(A) $3,000,000,000 for fiscal year 2020; 

24 and 


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1 ‘‘(B) such sums as may be necessary for 

2 each fiscal years 2021 through 2030. 

3 ‘‘(2) AVAILABILITY.—Funds made available 

4 under paragraph (1) shall be available for obligation 

5 through September 30 of the fiscal year succeeding 

6 the fiscal year for which such sums were appro7 priated.’’. 

8 SEC. 4. TITLE IV ELIGIBILITY FOR DREAMER STUDENTS. 

9 Section 484 of the Higher Education Act of 1965 (20 

10 U.S.C. 1091) is amended— 

11 (1) in subsection (a)(5), by inserting ‘‘, or be a 

12 Dreamer student, as defined in subsection (u)’’ after 

13 ‘‘becoming a citizen or permanent resident’’; and 

14 (2) by adding at the end the following: 

15 ‘‘(u) DREAMER STUDENTS.— 

16 ‘‘(1) IN GENERAL.—In this section, the term 

17 ‘Dreamer student’ means an individual who— 

18 ‘‘(A) was younger than 16 years of age on 

19 the date on which the individual initially en20 tered the United States; 

21 ‘‘(B) has provided a list of each secondary 

22 school that the student attended in the United 

23 States; and 

24 ‘‘(C)(i) has earned a high school diploma, 

25 the recognized equivalent of such diploma from 


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1 a secondary school, or a high school equivalency 

2 diploma in the United States or is scheduled to 

3 complete the requirements for such a diploma 

4 or equivalent before the next academic year be5 gins; 

6 ‘‘(ii) has acquired a degree from an institu7 tion of higher education or has completed not 

8 less than 2 years in a program for a bacca9 laureate degree or higher degree at an institu10 tion of higher education in the United States 

11 and has made satisfactory academic progress, 

12 as defined in subsection (c), during such time 

13 period; 

14 ‘‘(iii) at any time was eligible for a grant 

15 of deferred action under— 

16 ‘‘(I) the June 15, 2012, memorandum 

17 from the Secretary of Homeland Security 

18 entitled ‘Exercising Prosecutorial Discre19 tion with Respect to Individuals Who 

20 Came to the United States as Children’; or 

21 ‘‘(II) the November 20, 2014, memo22 randum from the Secretary of Homeland 

23 Security entitled ‘Exercising Prosecutorial 

24 Discretion with Respect to Individuals 

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1 dren and with Respect to Certain Individ2 uals Who Are the Parents of U.S. Citizens 

3 or Permanent Residents’; or 

4 ‘‘(iv) has served in the uniformed services, 

5 as defined in section 101 of title 10, United 

6 States Code, for not less than 4 years and, if 

7 discharged, received an honorable discharge. 

8 ‘‘(2) HARDSHIP EXCEPTION.—The Secretary 

9 shall issue regulations that direct when the Depart10 ment shall waive the requirement of subparagraph 

11 (A) or (B), or both, of paragraph (1) for an indi12 vidual to qualify as a Dreamer student under such 

13 paragraph, if the individual— 

14 ‘‘(A) demonstrates compelling circum15 stances for the inability to satisfy the require16 ment of such subparagraph (A) or (B), or both; 

17 and 

18 ‘‘(B) satisfies the requirement of para19 graph (1)(C).’’. 


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1 SEC. 5. REPEAL OF SUSPENSION OF ELIGIBILITY UNDER 

2 THE HIGHER EDUCATION ACT OF 1965 FOR 

3 GRANTS, LOANS, AND WORK ASSISTANCE FOR 

4 DRUG-RELATED OFFENSES. 

5 (a) REPEAL.—Subsection (r) of section 484 of the 

6 Higher Education Act of 1965 (20 U.S.C. 1091(r)) is re7 pealed. 

8 (b) REVISION OF FAFSA FORM.—Section 483 of the 

9 Higher Education Act of 1965 (20 U.S.C. 1090) is 

10 amended by adding at the end the following: 

11 ‘‘(i) CONVICTIONS.—The Secretary shall not include 

12 any question about the conviction of an applicant for the 

13 possession or sale of illegal drugs on the FAFSA (or any 

14 other form developed under subsection (a)).’’. 

15 (c) CONFORMING AMENDMENTS.—The Higher Edu16 cation Act of 1965 (20 U.S.C. 1001 et seq.) is amended— 

17 (1) in section 428(b)(3) (20 U.S.C. 

18 1078(b)(3))— 

19 (A) in subparagraph (C), by striking 

20 ‘‘485(l)’’ and inserting ‘‘485(k)’’; and 

21 (B) in subparagraph (D), by striking 

22 ‘‘485(l)’’ and inserting ‘‘485(k)’’; 

23 (2) in section 435(d)(5) (20 U.S.C. 

24 1085(d)(5))— 

25 (A) in subparagraph (E), by striking 

26 ‘‘485(l)’’ and inserting ‘‘485(k)’’; and 


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1 (B) in subparagraph (F), by striking 

2 ‘‘485(l)’’ and inserting ‘‘485(k)’’; 

3 (3) in section 484 (20 U.S.C. 1091), as amend4 ed by section 6, by redesignating subsections (s), (t), 

5 and (u) as subsections (r), (s), and (t), respectively; 

6 (4) in section 485 (20 U.S.C. 1092)— 

7 (A) by striking subsection (k); and 

8 (B) by redesignating subsections (l) and 

9 (m) as subsections (k) and (l), respectively; and 

10 (5) in section 487(e)(2)(B)(ii)(IV) (20 U.S.C. 

11 1094(e)(2)(B)(ii)(IV)), by striking ‘‘(l) of section 

12 485’’ and inserting ‘‘(k) of section 485’’. 

Æ 


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