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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2962 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 2962

 To provide greater access to higher education for America's students.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              July 8, 2015

  Mr. Scott of Virginia (for himself, Mr. Hinojosa, Mr. Clyburn, Mr. 
   Butterfield, Ms. Judy Chu of California, Ms. Linda T. Sanchez of 
   California, Ms. Adams, Mr. Moulton, Mr. Takano, Mr. Grijalva, Mr. 
  Richmond, Ms. Brown of Florida, Mr. Danny K. Davis of Illinois, Mr. 
    Blumenauer, Ms. Bonamici, Ms. Bordallo, Mr. Brendan F. Boyle of 
 Pennsylvania, Mrs. Capps, Mr. Cicilline, Ms. Clark of Massachusetts, 
 Mr. Conyers, Mr. DeSaulnier, Ms. Edwards, Ms. Eshoo, Mr. Fattah, Ms. 
 Fudge, Mr. Al Green of Texas, Mr. Gene Green of Texas, Mr. Gutierrez, 
 Ms. Hahn, Mr. Honda, Mr. Jeffries, Mr. Kennedy, Mr. Kilmer, Mr. Kind, 
Mr. Larson of Connecticut, Ms. Lee, Mr. Levin, Mr. Lewis, Mr. Ted Lieu 
  of California, Mr. Ben Ray Lujan of New Mexico, Mr. McDermott, Mr. 
  McGovern, Ms. Moore, Mrs. Napolitano, Mr. Norcross, Ms. Norton, Ms. 
   Plaskett, Mr. Pocan, Mr. Rangel, Ms. Roybal-Allard, Mr. Rush, Mr. 
Sablan, Ms. Loretta Sanchez of California, Mr. Schiff, Mr. Serrano, Mr. 
  Swalwell of California, Mr. Takai, Mrs. Torres, Mr. Van Hollen, Ms. 
 Wilson of Florida, Mr. Yarmuth, Mr. Beyer, Mr. Pascrell, Mr. Delaney, 
 and Mr. Keating) introduced the following bill; which was referred to 
              the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL

 
 To provide greater access to higher education for America's students.

    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 
2015''.

SEC. 2. PURPOSE.

    The purpose of this Act is to help all individuals of the United 
States earn the education and skills the individuals need--
            (1) by making 2 years of community college free, through a 
        new partnership with States and Indian tribes to help the 
        States and Indian tribes--
                    (A) waive resident community college tuition and 
                fees for eligible students;
                    (B) maintain State and Indian tribe support for 
                higher education; and
                    (C) promote key reforms to improve student 
                outcomes; and
            (2) through a new partnership with minority-serving 
        institutions to--
                    (A) encourage eligible students to enroll and 
                successfully complete a baccalaureate degree at 
                participating institutions; and
                    (B) promote key reforms to improve student 
                outcomes.

     TITLE I--STATE AND INDIAN TRIBE GRANTS FOR COMMUNITY COLLEGES

SEC. 101. IN GENERAL.

    From amounts appropriated under section 107(a) for any fiscal year, 
the Secretary shall award grants to eligible States and Indian tribes 
to pay the Federal share of expenditures needed to carry out the 
activities and services described in section 105.

SEC. 102. FEDERAL SHARE; NON-FEDERAL SHARE.

    (a) Federal Share.--
            (1) Formula.--Subject to paragraph (2), the Federal share 
        of a grant under this title shall be based on a formula, 
        determined by the Secretary, that--
                    (A) accounts for the State or Indian tribe's share 
                of eligible students; and
                    (B) provides, for each eligible student in the 
                State or Indian tribe, a per-student amount that is--
                            (i) not less than 300 percent of the per-
                        student amount of the State or Indian tribe 
                        share, determined under subsection (b), subject 
                        to clause (ii); and
                            (ii) not greater than 75 percent of--
                                    (I) for the 2016-2017 award year, 
                                the average 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 average resident community 
                                college tuition and fees per student in 
                                all States calculated under this 
                                subclause for the preceding year, 
                                increased by the lesser of--
                                            (aa) the percentage by 
                                        which the average resident 
                                        community college tuition and 
                                        fees per student in all States 
                                        for the most recent year for 
                                        which data are available 
                                        increased as compared to such 
                                        average for the preceding year; 
                                        or
                                            (bb) 3 percent.
            (2) Exception for certain indian tribes.--In any case in 
        which not less than 75 percent of the students at the community 
        colleges operated or controlled by an Indian tribe are low-
        income students, the amount of the Federal share for such 
        Indian tribe shall be not less than 95 percent of the total 
        amount needed to waive tuition and fees for all eligible 
        students enrolled in such community colleges.
    (b) State or Tribal Share.--
            (1) Formula.--
                    (A) In general.--The State or tribal share of a 
                grant under this title for each fiscal year shall be 
                the amount needed to pay 25 percent of the average 
                community college resident tuition and fees per student 
                in all States in the 2016-2017 award year for all 
                eligible students in the State or Indian tribe, 
                respectively, for such fiscal year, except as provided 
                in subparagraph (B).
                    (B) Exception for certain indian tribes.--In a case 
                in which not less than 5 percent of the students at the 
                community colleges operated or controlled by an Indian 
                tribe are low-income students, the amount of such 
                Indian tribe's tribal share shall not exceed 5 percent 
                of the total amount needed to waive tuition and fees 
                for all eligible students enrolled in such community 
                colleges.
            (2) Need-based aid.--A State or Indian tribe may include 
        any need-based financial aid provided through State or tribal 
        funds to eligible students as part of the State or tribal 
        share.
            (3) No in-kind contributions.--A State or Indian tribe 
        shall not include in-kind contributions for purposes of the 
        State or tribal share described in paragraph (1).

SEC. 103. ELIGIBILITY.

    To be eligible for a grant under this title, a State or Indian 
tribe shall agree to waive community college resident tuition and fees 
for all eligible students for each year of the grant.

SEC. 104. APPLICATIONS.

    (a) Submission.--For each fiscal year for which a State or Indian 
tribe desires a grant under this title, an application shall be 
submitted to the Secretary at such time, in such manner, and containing 
such information as the Secretary may require. Such application shall 
be submitted by--
            (1) in the case of a State, the Governor, the State agency 
        with jurisdiction over higher education, or another agency 
        designated by the Governor to administer the program under this 
        title; or
            (2) in the case of an Indian tribe, the governing body of 
        such tribe.
    (b) Contents.--Each State or Indian tribe application shall 
include, at a minimum--
            (1) an estimate of the number of eligible students in the 
        State or Indian tribe and the cost of waiving community college 
        resident tuition and fees for all eligible students for each 
        fiscal year covered by the grant, with annual increases of an 
        amount that shall not exceed 3 percent of the prior year's 
        average resident community college tuition and fees;
            (2) an assurance that all community colleges in the State 
        or under the jurisdiction of the Indian tribe, respectively, 
        will waive resident tuition and fees for eligible students in 
        programs that are--
                    (A) academic programs with credits that can fully 
                transfer via articulation agreement toward a 
                baccalaureate degree or postbaccalaureate degree at any 
                public institution of higher education in the State; or
                    (B) occupational skills training programs that lead 
                to a recognized postsecondary credential that is in an 
                in-demand industry sector or occupation in the State;
            (3) a description of the promising and evidence-based 
        institutional reforms and innovative practices to improve 
        student outcomes, including completion or transfer rates, that 
        have been or will be adopted by the participating community 
        colleges, such as--
                    (A) providing comprehensive academic and student 
                support services, including mentoring and advising, 
                especially for low-income, first-generation, adult, and 
                other underrepresented students;
                    (B) providing accelerated learning opportunities, 
                such as dual or concurrent enrollment programs;
                    (C) advancing competency-based education;
                    (D) strengthening remedial education, especially 
                for low-income, first-generation, adult and other 
                underrepresented students;
                    (E) implementing course redesigns of high-
                enrollment courses to improve student outcomes and 
                reduce cost; or
                    (F) utilizing career pathways or degree pathways;
            (4) a description of how the State or Indian tribe will 
        promote alignment between its public secondary school and 
        postsecondary education systems, including between 2-year and 
        4-year public institutions of higher education and with 
        minority-serving institutions described in section 371 of the 
        Higher Education Act of 1965 (20 U.S.C. 1067q), to expand 
        awareness of and access to postsecondary education, reduce the 
        need for remediation and repeated coursework, and improve 
        student outcomes;
            (5) a description of how the State or Indian tribe will 
        ensure that programs leading to a recognized postsecondary 
        credential meet the quality criteria established by the State 
        under section 123(a) of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3153(a)) or other quality criteria 
        determined appropriate by the State or Indian tribe;
            (6) an assurance that all participating community colleges 
        in the State or under the authority of the Indian tribe have 
        entered into program participation agreements under section 487 
        of the Higher Education Act of 1965 (20 U.S.C. 1094);
            (7) an assurance that, for each year of the grant, the 
        State or Indian tribe will notify each eligible student of the 
        student's remaining eligibility for assistance under this 
        title; and
            (8) a description of how the State or Indian tribe will 
        promote the improved performance of public institutions of 
        higher education through funding reform, including through the 
        use of a performance-based model that allocates a portion of 
        the State or Indian tribe's public higher education 
        expenditures based on the performance of those institutions on 
        State-specified metrics, including successful student outcomes, 
        while ensuring that existing funding gaps for underresourced 
        institutions are not exacerbated.

SEC. 105. ALLOWABLE USES OF FUNDS.

    (a) In General.--A State or Indian tribe shall use a grant under 
this title only to provide funds to participating community colleges to 
waive resident tuition and fees for eligible students who are enrolled 
in--
            (1) academic programs with credits that can fully transfer 
        via articulation agreement toward a baccalaureate degree or 
        postbaccalaureate degree at any public institution of higher 
        education in the State; or
            (2) occupational skills training programs that lead to a 
        recognized postsecondary credential that is in an in-demand 
        industry sector or occupation in the State.
    (b) Additional Uses.--If a State or Indian tribe demonstrates to 
the Secretary that it has grant funds remaining after meeting the 
demand for activities described in subsection (a), the State or Indian 
tribe may use those funds to carry out one or more of the following:
            (1) Expanding the waiver of resident tuition and fees at 
        community college to students who are returning students or 
        otherwise not enrolling in postsecondary education for the 
        first time, and who meet the student eligibility requirements 
        of clauses (i) through (v) of section 106(4)(A).
            (2) Expanding the scope and capacity of high-quality 
        academic and occupational skills training programs at community 
        colleges.
            (3) Improving postsecondary education readiness in the 
        State or Indian tribe, through outreach and early intervention.
            (4) Expanding access to dual or concurrent enrollment 
        programs.
            (5) Improving affordability at 4-year public institutions 
        of higher education.
    (c) Use of Funds for Administrative Purposes.--A State or Indian 
tribe that receives a grant under this title may not use any funds 
provided under this title for administrative purposes relating to the 
grant under this title.
    (d) Maintenance of Effort.--A State or Indian tribe receiving a 
grant under this title is entitled to receive its full allotment of 
funds under this title for a fiscal year only if, for each year of the 
grant, the State or Indian tribe provides financial support for public 
higher education at a level equal to or exceeding the average amount 
provided per full-time equivalent student for public institutions of 
higher education for the 3 consecutive preceding State or Indian tribe 
fiscal years. In making the calculation under this subsection, the 
State or Indian tribe shall exclude capital expenses and research and 
development costs and include need-based financial aid for students who 
attend public institutions of higher education.
    (e) Annual Report.--A State or Indian tribe receiving a grant under 
this title shall submit an annual report to the Secretary describing 
the uses of grant funds under this title, the progress made in 
fulfilling the requirements of the grant, and rates of graduation, 
transfer and attainment of recognized postsecondary credentials at 
participating community colleges, and including any other information 
as the Secretary may require.
    (f) Reporting by Secretary.--The Secretary annually shall--
            (1) compile and analyze the information described in 
        subsection (e); and
            (2) prepare and submit a report to the Committee on Health, 
        Education, Labor, and Pensions of the Senate and the Committee 
        on Education and the Workforce of the House of Representatives 
        containing the analysis described in paragraph (1) and an 
        identification of State and Indian tribe best practices for 
        achieving the purpose of this title.
    (g) Technical Assistance.--The Secretary shall provide technical 
assistance to eligible States and Indian tribes concerning best 
practices regarding the promising and evidence-based institutional 
reforms and innovative practices to improve student outcomes as 
described in section 104(b)(3) and shall disseminate such best 
practices among the States and Indian tribes.
    (h) Continuation of Funding.--
            (1) In general.--A State or Indian tribe receiving a grant 
        under this title for a fiscal year may continue to receive 
        funding under this title 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 title if the State 
        or Indian tribe has violated the terms of the grant or is not 
        making adequate progress in implementing the reforms described 
        in the application submitted under section 104.

SEC. 106. DEFINITIONS.

    In this title:
            (1) 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).
            (2) Community college.--The term ``community college'' 
        means a public institution of higher education at which the 
        highest degree that is predominantly awarded to students is an 
        associate's degree, including 2-year tribally controlled 
        colleges under section 316 of the Higher Education Act of 1965 
        (20 U.S.C. 1059c) and public 2-year State institutions of 
        higher education.
            (3) Dual or concurrent enrollment program.--The term ``dual 
        or concurrent enrollment program'' means an academic program 
        through which a secondary school student is able simultaneously 
        to earn credit toward a secondary school diploma and a 
        postsecondary degree or other recognized postsecondary 
        credential, including early college high school programs.
            (4) Eligible student.--
                    (A) Definition.--The term ``eligible student'' 
                means a student who--
                            (i)(I) enrolls in a community college for 
                        the first time, regardless of age, after the 
                        date of enactment of this Act; or
                            (II) is enrolled in a community college, 
                        for the first time, as of the date of enactment 
                        of this Act;
                            (ii) attends the community college on not 
                        less than a half-time basis;
                            (iii) is maintaining satisfactory progress, 
                        as defined in section 484(c) of the Higher 
                        Education Act of 1965 (20 U.S.C. 1091(c)), in 
                        the student's course of study;
                            (iv) qualifies for resident tuition, as 
                        determined by the State or Indian tribe; and
                            (v) is enrolled in an eligible program 
                        described in section 104(b)(2).
                    (B) Special rule.--An otherwise eligible student 
                shall lose eligibility 3 calendar years after first 
                receiving benefits under this title.
            (5) In-demand industry sector or occupation.--The term 
        ``in-demand industry sector or occupation'' has the meaning 
        given the term in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
            (6) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 102 of the Federally 
        Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a).
            (7) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (8) Recognized postsecondary credential.--The term 
        ``recognized postsecondary credential'' has the meaning as 
        described in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (10) State.--The term ``State'' has the meaning given the 
        term in section 103 of the Higher Education Act of 1965 (20 
        U.S.C. 1003).

SEC. 107. APPROPRIATIONS.

    (a) Authorization and Appropriations.--For the purpose of making 
grants under this title, there are authorized to be appropriated, and 
there are appropriated--
            (1) $1,365,000,000 for fiscal year 2016;
            (2) $3,020,000,000 for fiscal year 2017;
            (3) $3,854,000,000 for fiscal year 2018;
            (4) $5,395,000,000 for fiscal year 2019;
            (5) $7,061,000,000 for fiscal year 2020;
            (6) $8,085,000,000 for fiscal year 2021;
            (7) $10,182,000,000 for fiscal year 2022;
            (8) $13,019,000,000 for fiscal year 2023;
            (9) $13,583,000,000 for fiscal year 2024; and
            (10) $14,171,000,000 for fiscal year 2025 and each 
        succeeding fiscal year.
    (b) Availability.--Funds appropriated under subsection (a) shall 
remain available to the Secretary until expended.
    (c) Insufficient Funds.--If the amount appropriated under 
subsection (a) for a fiscal year is not sufficient to award each 
participating State and Indian tribe a grant under this title that is 
equal to the minimum amount of the Federal share described in section 
102(a), the Secretary may ratably reduce the amount of each such grant 
or take other actions necessary to ensure an equitable distribution of 
such amount.

   TITLE II--GRANTS TO HISTORICALLY BLACK COLLEGES AND UNIVERSITIES, 
   HISPANIC-SERVING INSTITUTIONS, ASIAN AMERICAN AND NATIVE AMERICAN 
      PACIFIC ISLANDER-SERVING INSTITUTIONS, TRIBAL COLLEGES AND 
   UNIVERSITIES, ALASKA NATIVE-SERVING INSTITUTIONS, NATIVE HAWAIIAN-
  SERVING INSTITUTIONS, PREDOMINANTLY BLACK INSTITUTIONS, AND NATIVE 
                AMERICAN-SERVING NONTRIBAL INSTITUTIONS

SEC. 201. PATHWAYS TO STUDENT SUCCESS FOR HISTORICALLY BLACK COLLEGES 
              AND UNIVERSITIES.

    (a) In General.--From amounts appropriated under section 204(a) for 
any fiscal year, the Secretary shall award grants to participating 4-
year historically black colleges or universities that meet the 
requirements of subsection (b) to--
            (1) encourage students to enroll as first-time students and 
        successfully complete a bachelor's degree at participating 
        institutions;
            (2) provide incentives to community college students to 
        transfer to participating institutions through strong transfer 
        pathways to complete a bachelor's degree program; and
            (3) support participating institutions to better serve new 
        and existing students by engaging in reforms and innovations 
        designed to improve completion rates and other student 
        outcomes.
    (b) Eligibility.--To be eligible to receive a grant under the 
program under this section, an institution shall be a historically 
black college or university that--
            (1) 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 and student 
                support services, including mentoring and advising;
                    (B) providing accelerated learning opportunities 
                and degree pathways, such as dual enrollment and 
                pathways to graduate and professional degree programs;
                    (C) advancing distance and competency-based 
                education;
                    (D) partnering with employers, industry, not-for-
                profit associations, and other groups to provide 
                opportunities to advance learning outside the 
                classroom, including work-based learning opportunities 
                such as internships or apprenticeships or programs 
                designed to improve inter-cultural development and 
                personal growth, such as foreign exchange and study 
                abroad programs;
                    (E) reforming remedial education, especially for 
                low-income students, first generation college students, 
                adult students, and other underrepresented students; or
                    (F) implementing course redesigns of high-
                enrollment courses to improve student outcomes and 
                reduce cost;
            (3) sets performance goals for improving student outcomes 
        for the duration of the grant; and
            (4) if receiving a grant for transfer students, has 
        articulation agreements with community colleges at the 
        national, State, or local level to ensure that community 
        college credits can fully transfer to the participating 
        institution.
    (c) Grant Amount.--
            (1) Initial amount.--For the first year that an eligible 
        institution participates in the grant program under this 
        section 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 
                section as the per-student rebate); multiplied by
                    (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 section, 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 section 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 
                section, 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.
    (d) Application.--An eligible institution that desires a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and containing such information as the Secretary 
may require.
    (e) Use of Funds.--Funds awarded under this section to a 
participating eligible institution shall be used to waive or 
significantly reduce tuition and fees for eligible students in an 
amount of not more than up to the annual per-student rebate amount for 
each student, for not more than the first 60 credits an eligible 
student enrolls in the participating eligible institution.

SEC. 202. PATHWAYS TO STUDENT SUCCESS FOR HISPANIC-SERVING 
              INSTITUTIONS, ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC 
              ISLANDER-SERVING INSTITUTIONS, TRIBAL COLLEGES AND 
              UNIVERSITIES, ALASKA NATIVE-SERVING INSTITUTIONS, NATIVE 
              HAWAIIAN-SERVING INSTITUTIONS, PREDOMINANTLY BLACK 
              INSTITUTIONS, AND NATIVE AMERICAN-SERVING NONTRIBAL 
              INSTITUTIONS.

    (a) In General.--From amounts appropriated under section 204(a) for 
any fiscal year, the Secretary shall award grants to participating 4-
year minority-serving institutions to--
            (1) encourage students to enroll as first-time students and 
        successfully complete a bachelor's degree at participating 
        institutions;
            (2) provide incentives to community college students to 
        transfer to participating institutions through strong transfer 
        pathways to complete a bachelor's degree program; and
            (3) support participating institutions to better serve new 
        and existing students by engaging in reforms and innovations 
        designed to improve completion rates and other student 
        outcomes.
    (b) Institutional Eligibility.--To be eligible to participate and 
receive a grant under this section, an institution shall be a minority-
serving institution that--
            (1) 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 and student 
                support services, including mentoring and advising;
                    (B) providing accelerated learning opportunities 
                and degree pathways, such as dual enrollment and 
                pathways to graduate and professional degree programs;
                    (C) advancing distance and competency-based 
                education;
                    (D) partnering with employers, industry, not-for-
                profit associations, and other groups to provide 
                opportunities to advance learning outside the 
                classroom, including work-based learning opportunities 
                such as internships or apprenticeships or programs 
                designed to improve inter-cultural development and 
                personal growth, such as foreign exchange and study 
                abroad programs;
                    (E) reforming remedial education, especially for 
                low-income students, first generation college students, 
                adult students, and other underrepresented students; 
                and
                    (F) implementing course redesigns of high-
                enrollment courses to improve student outcomes and 
                reduce cost;
            (3) sets performance goals for improving student outcomes 
        for the duration of the grant; and
            (4) if receiving a grant for transfer students, has 
        articulation agreements with community colleges at the 
        national, State, or local levels to ensure that community 
        college credits can fully transfer to the participating 
        institution.
    (c) Grant Amount.--
            (1) Initial amount.--For the first year that an eligible 
        institution participates in the grant program under this 
        section and subject to paragraph (3), such participating 
        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 
                section as the per-student rebate); multiplied by
                    (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 section, 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 
        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 section shall receive a per-student rebate amount 
                for a grant year greater than the national average of 
                public four-year institutional tuition and fees, as 
                determined by the Secretary.
                    (B) First year tuition and fees.--During the first 
                year of participation in the grant program under this 
                section, no eligible institution may increase tuition 
                and fees at a rate greater than any annual increase 
                made by the institution in the previous 5 years.
    (d) Application.--An eligible institution shall submit an 
application to the Secretary at such time, in such a manner, and 
containing such information as determined by the Secretary.
    (e) Use of Funds.--Funds awarded under this section to a 
participating eligible institution shall be used to waive or 
significantly reduce tuition and fees for eligible students in an 
amount of not more than up to the annual per-student rebate amount for 
each student, for not more than the first 60 credits an eligible 
student enrolls in the participating eligible institution.

SEC. 203. DEFINITIONS.

    In this title:
            (1) Eligible student.--
                    (A) Definition.--The term ``eligible student'' 
                means a student, regardless of age, who--
                            (i)(I) enrolls in a historically black 
                        college or university, or minority-serving 
                        institution, for the first time; or
                            (II) transfers from a community college 
                        into a historically black college or 
                        university, or minority-serving institution, 
                        for the first time;
                            (ii) attends the historically black college 
                        or university, or minority serving institution, 
                        on at least a half-time basis;
                            (iii) maintains satisfactory academic 
                        progress; and
                            (iv) is a low-income student.
                    (B) Special rules.--
                            (i) First 3 years.--An otherwise eligible 
                        student shall lose eligibility 3 calendar years 
                        after first receiving benefits under this 
                        title.
                            (ii) Special rule for certain students.--
                        Notwithstanding subparagraph (A)(i), an 
                        otherwise eligible student whose parent or 
                        guardian was denied a Federal Direct PLUS loan 
                        under title IV of the Higher Education Act of 
                        1965 (20 U.S.C. 1070 et seq.) after November 
                        2011 and before March 29, 2015, and who 
                        subsequently withdrew from a historically black 
                        college or university, or minority-serving 
                        institution, and has not yet completed a 
                        program of study at such historically black 
                        college or university or minority-serving 
                        institution, shall be eligible to participate 
                        under section 201 or 202 in order to complete 
                        such program of study, subject to all other 
                        requirements of section 201 or 202 (as the case 
                        may be).
            (2) Historically black college or university.--The term 
        ``historically black college or university'' means a part B 
        institution described in section 322(2) of the Higher Education 
        Act of 1965 (20 U.S.C. 1061(2)).
            (3) Low-income student.--The term ``low-income student'' 
        has the meaning given such term by the Secretary, except that 
        such term shall not exclude any student eligible for a Federal 
        Pell Grant under section 401 of the Higher Education Act of 
        1965 (20 U.S.C. 1070a).
            (4) Minority-serving institution.--The term ``minority-
        serving institution'' means any public or not-for-profit 
        institution of higher education--
                    (A) described in paragraphs (2) through (7) of 
                section 371(a) of the Higher Education Act of 1965 (20 
                U.S.C. 1067q); and
                    (B) designated as a minority-serving institution by 
                the Secretary.

SEC. 204. APPROPRIATIONS.

    (a) Authorization and Appropriations for HBCU and MSI Grants.--For 
the purpose of carrying out sections 201 and 202, there are authorized 
to be appropriated, and there are appropriated--
            (1) $55,000,000 for fiscal year 2016;
            (2) $180,000,000 for fiscal year 2017;
            (3) $1,072,000,000 for fiscal year 2018;
            (4) $1,115,000,000 for fiscal year 2019;
            (5) $1,160,000,000 for fiscal year 2020;
            (6) $1,206,000,000 for fiscal year 2021;
            (7) $1,225,000,000 for fiscal year 2022;
            (8) $1,306,000,000 for fiscal year 2023;
            (9) $1,359,000,000 for fiscal year 2024; and
            (10) $1,414,000,000 for fiscal year 2025 and each 
        succeeding fiscal year.
    (b) Availability.--Funds appropriated under subsection (a) are to 
remain available to the Secretary until expended.
    (c) Insufficient Funds.--If the amount appropriated under 
subsection (a) for a fiscal year is not sufficient to award each 
participating institution in the grant programs under sections 201 and 
202 a grant under this part equal to 100 percent of the grant amount 
determined under section 201(c), the Secretary may ratably reduce the 
amount of each such grant or take other actions necessary to ensure an 
equitable distribution of such amount.
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