II 

117TH CONGRESS 

1ST SESSION S. 2054 

To amend the Higher Education Act of 1965 to strengthen Federal-State 

partnerships in postsecondary education. 

IN THE SENATE OF THE UNITED STATES 

JUNE 15, 2021 

Mr. REED (for himself and Ms. COLLINS) 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 strengthen 

Federal-State partnerships in postsecondary education. 

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 ‘‘Partnerships for Af5 fordability and Student Success Act’’. 

6 SEC. 2. STATE COMMITMENT TO AFFORDABLE COLLEGE 

7 EDUCATION. 

8 Section 137 of the Higher Education Act of 1965 (20 

9 U.S.C. 1015f) is amended— 


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1 (1) by striking subsection (a) and inserting the 

2 following: 

3 ‘‘(a) MAINTENANCE OF EFFORT REQUIRED.—For 

4 the academic year beginning on July 1, 2021, and for each 

5 of the 4 succeeding academic years, a State shall— 

6 ‘‘(1) maintain State support for institutions of 

7 higher education (not including support for capital 

8 projects or research and development, or tuition and 

9 fees paid by students) at a level that is equal to or 

10 greater than the average level of such support for 

11 the 3 most recent academic years for which satisfac12 tory data are available; and 

13 ‘‘(2) maintain State support for student finan14 cial aid for paying costs associated with postsec15 ondary education at a level that is equal to or great16 er than the average level of such support for the 3 

17 most recent academic years for which satisfactory 

18 data are available.’’; 

19 (2) by striking subsection (c) and inserting the 

20 following: 

21 ‘‘(c) WAIVER.— 

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

23 the requirements of subsection (a) if the Secretary 

24 determines that such a waiver would be appropriate 

25 due to exceptional or uncontrollable circumstances, 


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1 such as a natural disaster or a precipitous decline in 

2 the financial resources of a State or State edu3 cational agency, as appropriate. 

4 ‘‘(2) CONSULTATION.—The Secretary shall con5 sult with the States in developing the criteria and 

6 procedures for reviewing waiver requests. 

7 ‘‘(3) TIMELINE.—Not later than 120 days after 

8 the date of enactment of the Partnerships for Af9 fordability and Student Success Act, the Secretary 

10 shall publish the criteria and procedures for review11 ing waiver requests under this subsection.’’; and 

12 (3) by striking subsection (d). 

13 SEC. 3. FEDERAL AND STATE PARTNERSHIPS FOR COL14 LEGE ACCESS, AFFORDABILITY, AND COM15 PLETION. 

16 Subpart 4 of part A of title IV of the Higher Edu17 cation Act of 1965 (20 U.S.C. 1070c et seq.) is amended 

18 to read as follows: 

19 ‘‘Subpart 4—Federal and State Partnerships for 

20 College Access, Affordability, and Completion 

21 ‘‘SEC. 415A. PURPOSE. 

22 ‘‘It is the purpose of this subpart for the Secretary 

23 to make incentive grants to States to assist States in— 

24 ‘‘(1) providing grants to eligible students at25 tending institutions of higher education or particiVerDate Sep 11 2014 03:15 Jul 01, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2054.IS S2054

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1 pating in programs of study abroad that are ap2 proved for credit by institutions of higher education 

3 at which such students are enrolled; 

4 ‘‘(2) reducing the cost of attendance at public 

5 institutions of higher education; 

6 ‘‘(3) providing subgrants to eligible institutions 

7 or consortia of eligible institutions— 

8 ‘‘(A) to improve student outcomes, such as 

9 completion and transfer rates, attainment of 

10 postsecondary degrees and credentials, and 

11 workforce outcomes for graduates; and 

12 ‘‘(B) to develop and implement practices 

13 that result in reduced costs for students; and 

14 ‘‘(4) providing public accountability and con15 sumer information on the performance of institu16 tions of higher education operating within the State. 

17 ‘‘SEC. 415B. STATE ELIGIBILITY; ELIGIBLE INSTITUTIONS. 

18 ‘‘(a) INCENTIVE GRANTS.—The Secretary shall 

19 award incentive grants, in accordance with the provisions 

20 of this subpart, to States to pay the Federal share of the 

21 cost of carrying out the activities described in paragraphs 

22 (1) through (3) of section 415A. The incentive grant shall 

23 consist of the allotment determined for the State under 

24 section 415C. 


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1 ‘‘(b) STATE ELIGIBILITY.—In order to be eligible to 

2 receive an incentive grant under this subpart, a State shall 

3 enter into an agreement with the Secretary. The agree4 ment shall contain the following assurances: 

5 ‘‘(1) Federal funds received by the State under 

6 this subpart will supplement and not supplant other 

7 Federal and State funds otherwise available to carry 

8 out activities described in this subpart. 

9 ‘‘(2) The State will maintain its commitment to 

10 affordable higher education as described in section 

11 137. 

12 ‘‘(3) The State will fulfill its role in program in13 tegrity under section 495. 

14 ‘‘(4) The State or a State-designated entity has 

15 or will develop a comprehensive plan for public post16 secondary education that addresses the following: 

17 ‘‘(A) Measurable goals for student out18 comes, including enrollment, completion, and 

19 attainment of postsecondary degrees and cre20 dentials. 

21 ‘‘(B) Measurable goals for college afford22 ability in the State. 

23 ‘‘(C) Alignment of such plan with the eco24 nomic development plans that the State may 

25 have, including the unified State plan submitted 


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1 under section 102 of the Workforce Innovation 

2 and Opportunity Act. 

3 ‘‘(D) Alignment of such plan with the ele4 mentary and secondary education plan for the 

5 State. 

6 ‘‘(E) The postsecondary educational needs 

7 of unserved and underserved individuals within 

8 the State, including individuals beyond tradi9 tional college age and students attending part 

10 time. 

11 ‘‘(5) The State provides for direct, equitable, 

12 and active participation by representatives of institu13 tions of higher education, including the voluntary 

14 participation of private, nonprofit institutions of 

15 higher education, and other stakeholders in the com16 prehensive planning process. 

17 ‘‘(c) ELIGIBLE INSTITUTIONS.—In this subpart, the 

18 term ‘eligible institution’ means— 

19 ‘‘(1) an institution of higher education, as de20 fined in section 101(a); 

21 ‘‘(2) an institution of higher education, as de22 fined in section 101(a), in partnership with— 

23 ‘‘(A) a nonprofit or community-based orga24 nization that has demonstrated success in imVerDate Sep 11 2014 03:15 Jul 01, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2054.IS S2054

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1 proving student outcomes in postsecondary edu2 cation; or 

3 ‘‘(B) a local workforce investment board; 

4 or 

5 ‘‘(3) a consortium of institutions of higher edu6 cation, as defined in section 101(a). 

7 ‘‘SEC. 415C. ALLOTMENT AMONG STATES. 

8 ‘‘(a) ALLOTMENT BASED ON NUMBER OF ELIGIBLE

9 STUDENTS IN ATTENDANCE.— 

10 ‘‘(1) IN GENERAL.—Except as provided in sub11 section (b), from the sums appropriated under sec12 tion 415H for a fiscal year, the Secretary shall allot 

13 to each eligible State for such fiscal year an amount 

14 equal to the sum of— 

15 ‘‘(A) an amount that bears the same rela16 tionship to 50 percent of the amount appro17 priated under section 415H for such fiscal year 

18 as the number of residents in the State aged 5 

19 through 17 who are living below the poverty 

20 line applicable to the resident’s family size (as 

21 determined under section 673(2) of the Com22 munity Services Block Grant Act (42 U.S.C. 

23 9902)) bears to the total number of such resi24 dents in all States; and 


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1 ‘‘(B) an amount that bears the same rela2 tionship to 50 percent of the amount appro3 priated under section 415H for such fiscal year 

4 as the number of residents in the State aged 25 

5 and older who have not attained a postsec6 ondary degree or credential (as determined by 

7 the American Community Survey) bears to the 

8 total number of such residents in all States. 

9 ‘‘(2) DATA.—The Secretary shall calculate such 

10 ratio based on data for the most recent year for 

11 which satisfactory data are available. 

12 ‘‘(b) MINIMUM ALLOTMENT.—The amount of any eli13 gible State’s allotment under subsection (a) for any fiscal 

14 year may not be less than 1 percent of the sums appro15 priated under section 415H for such year. 

16 ‘‘(c) REALLOTMENT.—The amount of any State’s al17 lotment under subsection (a) for any fiscal year which the 

18 Secretary determines will not be required for such fiscal 

19 year for the Federal-State partnership program of that 

20 State shall be available for reallotment from time to time, 

21 on such dates during such year as the Secretary may fix, 

22 to other States in proportion to the original allotments to 

23 such States under such subsection for such year, but with 

24 such proportionate amount for any of such States being 

25 reduced to the extent it exceeds the sum the Secretary 


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1 estimates such State needs and will be able to use for such 

2 year for carrying out the State plan. The total of such 

3 reductions shall be similarly reallotted among the States 

4 whose proportionate amounts were not so reduced. 

5 ‘‘(d) ALLOTMENTS SUBJECT TO COMPLIANCE.—The 

6 Secretary shall make payments for incentive grants under 

7 this subpart only to States that continue to meet the re8 quirements of this subpart. 

9 ‘‘SEC. 415D. APPLICATIONS. 

10 ‘‘(a) IN GENERAL.—In order to receive an incentive 

11 grant under this subpart, the State agency with jurisdic12 tion over higher education, or another agency or entity 

13 designated by the Governor or chief executive of the State 

14 to administer the program under this subpart, shall sub15 mit an application to the Secretary at such time, in such 

16 manner, and accompanied by such information as the Sec17 retary may require. 

18 ‘‘(b) CONTENT OF APPLICATION.—An application 

19 submitted under subsection (a) shall contain— 

20 ‘‘(1) a description of how grant funds will assist 

21 the State in meeting its goals for student outcomes, 

22 including enrollment, completion, and attainment of 

23 postsecondary degrees and credentials; 

24 ‘‘(2) a description of how the grant funds will 

25 assist the State in meeting its goals for college afVerDate Sep 11 2014 03:15 Jul 01, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S2054.IS S2054

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1 fordability, including any measures to minimize tui2 tion costs at public institutions of higher education 

3 and measures to increase the availability of need4 based student aid; 

5 ‘‘(3) a description of how grant funds will assist 

6 the State in meeting the postsecondary needs of 

7 underrepresented or underserved populations in the 

8 State, including individuals beyond traditional col9 lege age and students attending part time; 

10 ‘‘(4) a description of how the State’s com11 prehensive plan for public higher education is 

12 aligned with the workforce and economic develop13 ment plans of the State; 

14 ‘‘(5) a description of the process the State will 

15 use to make subgrants to eligible institutions or con16 sortia of eligible institutions; 

17 ‘‘(6) a description of how the State will evaluate 

18 the effectiveness of such subgrants and how the 

19 State will disseminate information on promising 

20 practices developed as a result of such subgrants; 

21 ‘‘(7) a description of how the State will make 

22 publicly available an annual report on the progress 

23 in meeting State goals for public postsecondary edu24 cation; and 


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1 ‘‘(8) a description of the stakeholder consulta2 tion, including efforts to engage the voluntary par3 ticipation of private, nonprofit institutions, carried 

4 out in the development of the application. 

5 ‘‘(c) APPROVAL.— 

6 ‘‘(1) IN GENERAL.—An application submitted 

7 under subsection (a) shall be subject to the approval 

8 of Secretary. 

9 ‘‘(2) TIMELINE.—An application submitted 

10 under subsection (a) shall be considered to be ap11 proved at the end of the 90-day period beginning on 

12 the day the application is submitted, unless the Sec13 retary makes a written determination, during the 

14 90-day period, that the application is inconsistent 

15 with the provisions of this subpart. 

16 ‘‘SEC. 415E. PAYMENT OF FEDERAL SHARE OF GRANTS. 

17 ‘‘(a) IN GENERAL.— 

18 ‘‘(1) DISTRIBUTION.—A State awarded an in19 centive grant under this subpart— 

20 ‘‘(A) shall use grant funds to award stu21 dent grants; and 

22 ‘‘(B) may use grant funds to award sub23 grants to eligible institutions. 

24 ‘‘(2) GRANTS TO STUDENTS.—A State awarded 

25 an incentive grant under this subpart shall establish 


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1 a program to award grants to students that complies 

2 with the following: 

3 ‘‘(A) The program is administered by a 

4 single State agency. 

5 ‘‘(B) The program provides that an insti6 tution of higher education that had a student 

7 who received funds under this subpart at any 

8 time beginning on July 1, 2010, through the 

9 day before the date of enactment of the Part10 nerships for Affordability and Student Success 

11 Act and that is eligible to participate in a pro12 gram authorized under this title, shall be eligi13 ble to participate under this paragraph. 

14 ‘‘(C) The program provides that such 

15 grants to students will be in amounts not to ex16 ceed the student’s cost of attendance per aca17 demic year for attendance at an institution of 

18 higher education. Such grants, in combination 

19 with other State or Federal student assistance, 

20 shall not exceed the student’s cost of attend21 ance in any given academic year. 

22 ‘‘(D) The program provides for the selec23 tion of grant recipients on the basis of substan24 tial financial need determined under part F and 

25 by the State. 


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1 ‘‘(E) The program provides that if the 

2 State’s allotment under this subpart is based, 

3 in part, on the financial need demonstrated by 

4 students who are independent students or at5 tending the institution less than full time, a 

6 reasonable proportion of the State’s allotment 

7 shall be made available to such students. 

8 ‘‘(F) The program will notify students re9 ceiving grants under this subpart that such 

10 grants are Federal-State partnership grants 

11 and are funded by the Federal Government and 

12 the State. 

13 ‘‘(3) SUBGRANTS TO ELIGIBLE INSTITU14 TIONS.—A State awarded an incentive grant under 

15 this subpart may establish a program to award sub16 grants to eligible institutions that complies with the 

17 following: 

18 ‘‘(A) The program is administered by a 

19 single State agency. 

20 ‘‘(B) The program provides for the selec21 tion of subgrant recipients based on criteria set 

22 by the State agency. 

23 ‘‘(C) The program provides for subgrants 

24 that support activities that will assist the State 

25 in achieving— 


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1 ‘‘(i) the State’s measurable goals for 

2 student outcomes, including enrollment, 

3 completion, and attainment of postsec4 ondary degrees and credentials; 

5 ‘‘(ii) the State’s measurable goals for 

6 college affordability, including innovative 

7 methods for reducing costs; and 

8 ‘‘(iii) improved workforce outcomes 

9 for graduates. 

10 ‘‘(D) The program provides for public dis11 semination of the results of the subgrant activi12 ties. 

13 ‘‘(4) FISCAL CONTROL; REPORTS.—A State 

14 awarded an incentive grant under this subpart shall 

15 provide— 

16 ‘‘(A) for such fiscal control and fund ac17 counting procedures as may be necessary to as18 sure proper disbursement of and accounting for 

19 Federal funds paid under this subpart; and 

20 ‘‘(B) for the making of such reports, in 

21 such form and containing such information, as 

22 may be reasonably necessary to enable the Sec23 retary to perform the Secretary’s functions 

24 under this subpart. 


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1 ‘‘(b) RESERVATION AND DISBURSEMENT OF ALLOT2 MENTS AND REALLOTMENTS.— 

3 ‘‘(1) IN GENERAL.—Upon approval of an appli4 cation for an incentive grant under this subpart, the 

5 Secretary shall reserve from the applicable allotment 

6 (including any applicable reallotment) available, the 

7 amount of such payment, which (subject to the lim8 its of such allotment or reallotment) shall be equal 

9 to the Federal share of the cost of the grants to stu10 dents or subgrants to eligible institutions or con11 sortia of such institutions covered by such applica12 tion. 

13 ‘‘(2) PAYMENT.—The Secretary shall pay such 

14 reserved amount, in advance or by way of reimburse15 ment, and in such installments as the Secretary may 

16 determine. 

17 ‘‘(3) AMENDMENT.—The Secretary may amend 

18 the reservation of any amount under this subsection, 

19 either upon approval of an amendment of the appli20 cation or upon revision of the estimated cost of the 

21 grants to students or subgrants to eligible institu22 tions with respect to which such reservation was 

23 made. If the Secretary approves an upward revision 

24 of such estimated cost, the Secretary may reserve 

25 the Federal share of the added cost only from the 


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1 applicable allotment (or reallotment) available at the 

2 time of such approval. 

3 ‘‘(c) FEDERAL SHARE.—The Federal share of the 

4 cost of carrying out the activities described in paragraphs 

5 (1) through (3) of section 415A is equal to 66.66 percent. 

6 ‘‘(d) CERTAIN ACTIVITIES FOR WHICH NON-FED7 ERAL SHARE MAY BE PROVIDED IN CASH OR IN KIND.— 

8 For activities described in section 415A(2), the non-Fed9 eral share may be provided in cash or in kind, fairly evalu10 ated. 

11 ‘‘(e) REPORTING.—A State that desires to receive 

12 payments for continuing incentive grants under this sub13 part shall report the following information to the Sec14 retary on an annual basis: 

15 ‘‘(1) The State’s progress in meeting its goals 

16 for college affordability, including measures to mini17 mize tuition increases at public institutions and 

18 measures to increase the availability of need-based 

19 student aid. 

20 ‘‘(2) The State’s progress in meeting the post21 secondary needs of underrepresented or underserved 

22 populations in the State. 

23 ‘‘(3) A list of any subgrants made to eligible in24 stitutions. 


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1 ‘‘(4) The State’s annual report described in sec2 tion 415F. 

3 ‘‘SEC. 415F. ANNUAL REPORTS. 

4 ‘‘Each State that receives an allotment under this 

5 subpart shall report annually to the public on its progress 

6 in meeting its public postsecondary education goals and 

7 comprehensive plan for public higher education. Such re8 port shall include— 

9 ‘‘(1) information, as determined by the State in 

10 consultation with stakeholders, on student outcomes, 

11 including enrollment and completion rates, disaggre12 gated by age, enrollment status, race, ethnicity, dis13 ability status, and socio-economic status; 

14 ‘‘(2) information, as determined by the State in 

15 consultation with stakeholders, on workforce out16 comes for graduates; 

17 ‘‘(3) information on college costs, including tui18 tion increases, student indebtedness, and the avail19 ability of need-based aid; and 

20 ‘‘(4) information on the consumer complaints 

21 related to the performance of institutions of higher 

22 education reported to the State in the prior year. 


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1 ‘‘SEC. 415G. PARTICIPATION OF PRIVATE, NONPROFIT IN2 STITUTIONS OF HIGHER EDUCATION. 

3 ‘‘(a) VOLUNTARY PARTICIPATION.—A private, non4 profit institution of higher education may voluntarily elect 

5 to participate in a State’s efforts under the plan described 

6 in section 415B(b)(4). A State— 

7 ‘‘(1) shall not require any private, nonprofit in8 stitution to participate in such efforts; and 

9 ‘‘(2) may require such an institution that volun10 tarily elects to participate in such efforts to provide 

11 appropriate information to allow the State to assess 

12 the institution’s progress towards the goals and ac13 tivities described in subparagraphs (A) through (E) 

14 of section 415B(b)(4). 

15 ‘‘(b) RULE OF CONSTRUCTION.—Nothing in this sub16 part, including voluntary participation described in sub17 section (a), shall be construed to— 

18 ‘‘(1) authorize the Secretary, a State, or an of19 ficer or employee of the Department or of a State 

20 to exercise any direction, supervision, or control over 

21 a private, nonprofit institution of higher education, 

22 including control over curriculum, program of in23 struction, administration, governance, personnel, ar24 ticulation, the awarding of credit, graduation or de25 gree requirements, or admissions; or 


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1 ‘‘(2) limit the application of the General Edu2 cation Provisions Act. 

3 ‘‘(c) ENFORCEMENT.—If any State fails or refuses 

4 to comply with any provision of this section, the State 

5 shall no longer be eligible for assistance under this sub6 part. 

7 ‘‘SEC. 415H. AUTHORIZATION OF APPROPRIATIONS; RES8 ERVATIONS. 

9 ‘‘(a) IN GENERAL.—There are authorized to be ap10 propriated to carry out this subpart such sums as may 

11 be necessary for fiscal year 2022 and each of the 4 suc12 ceeding fiscal years. 

13 ‘‘(b) RESERVATION.—Not less than 50 percent of 

14 funds allotted to a State under this subpart shall be re15 served for providing grants to eligible students. 

16 ‘‘(c) RESERVATION FOR CONSUMER INFORMATION

17 AND ADMINISTRATIVE EXPENSES.—Not more than 8 per18 cent of the funds allotted to a State may be used to pro19 vide public accountability and consumer information on 

20 the performance of institutions of higher education and 

21 for administering the grant.’’. 

Æ 


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