I 

116TH CONGRESS 

2D SESSION H. R. 8693 

To establish an independent agency in the executive branch to be known 

as the Federal Institute of Technology, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 27, 2020 

Mr. KHANNA (for himself, Mr. HIMES, Mr. RYAN, Ms. JAYAPAL, Ms. 

DELBENE, Mr. THOMPSON of Mississippi, Mr. SOTO, Mr. EVANS, and 

Ms. BARRAGA ́N) introduced the following bill; which was referred to the 

Committee on Education and Labor, and in addition to the Committees 

on Oversight and Reform, Ways and Means, Financial Services, Transportation and Infrastructure, Science, Space, and Technology, and Energy and Commerce, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To establish an independent agency in the executive branch 

to be known as the Federal Institute of Technology, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘21st Century Jobs 

5 Act’’. 


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1 SEC. 2. FINDINGS AND SENSE OF CONGRESS. 

2 (a) FINDINGS.—Congress finds the following: 

3 (1) In the year 2018, funding for research and 

4 development in science and technology in the United 

5 States was $124.7 billion, or approximately 0.6 per6 cent of the gross domestic product. 

7 (2) In the year 1964, the United States spent 

8 approximately 2 percent of gross domestic product 

9 on research and development in science and tech10 nology. 

11 (3) Public funding for research and develop12 ment in science and technology financed a majority 

13 of the innovations that powered growth in the 

14 United States after World War II, including digital 

15 computing and modern pharmaceutical science. 

16 (4) The United States currently ranks ninth in 

17 the world for total percentage of gross domestic 

18 product used for research and development in 

19 science and technology and twelfth in the world for 

20 public funding for research and development in 

21 science and technology. 

22 (5) Funding for research and development in 

23 science and technology is concentrated in a small 

24 number of geographic regions in the United States. 

25 (6) Established technology centers that promote 

26 research and development in science and technology 


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1 are extremely crowded, have high real estate costs, 

2 and are in locations that require long commutes for 

3 many of the researchers at such centers. 

4 (7) The private sector has a limited ability or 

5 desire to invest outside of such centers, which limits 

6 the potential for growth in science and technology, 

7 including the availability of employment opportuni8 ties in such industries. 

9 (8) Increasing public funding for research and 

10 development in science and technology to 1 percent 

11 of the gross domestic product would significantly in12 crease the rank of the United States with respect to 

13 funding for such research and development among 

14 developed countries. 

15 (b) SENSE OF CONGRESS.—It is the sense of the 

16 Congress that amounts provided through this Act will be 

17 used— 

18 (1) in a manner that is similar to break19 through-focused, project management models of the 

20 Defense Advanced Research Projects Agency of the 

21 Department of Defense; and 

22 (2) to supplement existing funding to Federal 

23 agencies. 


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1 SEC. 3. THE FEDERAL INSTITUTE OF TECHNOLOGY. 

2 (a) ESTABLISHMENT.—There is established in the ex3 ecutive branch of the Government an independent agency 

4 to be known as the ‘‘Federal Institute of Technology’’ (in 

5 this section referred to as the ‘‘Institute’’). 

6 (b) HEADQUARTERS.—The Institute shall be 

7 headquartered in the District of Columbia. 

8 (c) BOARD OF DIRECTORS.— 

9 (1) IN GENERAL.—The Institute shall have a 

10 Board of Directors (in this section referred to as the 

11 ‘‘Board’’). 

12 (2) DUTIES OF THE BOARD.—The duties of the 

13 Board shall include the following: 

14 (A) Not later than 2 years after the date 

15 of the enactment of this section, establish a 

16 minimum of 10 local boards in accordance with 

17 subsection (d), including— 

18 (i) appointing the members of each 

19 local board with consideration given to the 

20 recommendations provided pursuant to 

21 subsection (d)(1)(A)(iii); 

22 (ii) providing funding to local boards 

23 to support the local boards in achieving the 

24 duties under subsection (d)(3) and to carry 

25 out the comprehensive strategy under sub26 section (d)(2), including funds from 


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1 amounts in the private endowment estab2 lished under subsection (e); and 

3 (iii) annually evaluate the effective4 ness of each local board based on the re5 quirements developed pursuant to sub6 section (d)(1)(D). 

7 (B) Provide funds to Federal, State, and 

8 local agencies to support programs and research 

9 in the qualified subjects, including programs 

10 and research in certain technology sectors. 

11 (3) LOCAL BOARD LIMITATION.—The Board 

12 may establish— 

13 (A) not more than 30 local boards in the 

14 10-year period after the date of the enactment 

15 of this Act; and 

16 (B) not more than 3 local boards each fis17 cal year during such period. 

18 (4) NEW LOCAL BOARD APPLICATIONS.—The 

19 Board may consider new applications on an annual 

20 basis each fiscal year for the 10-year period after 

21 the date of the enactment of this Act, and every 3 

22 years thereafter. 

23 (5) MEMBERS; CHAIR.—The President shall— 


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1 (A) appoint 5 members of the Board by 

2 and with the advice and consent of the Senate; 

3 and 

4 (B) designate a Chair from among the 

5 members. 

6 (6) TERMS.— 

7 (A) LENGTH.—Each Board member shall 

8 be appointed for a term of 5 years. 

9 (B) AMOUNT.—Each Board member shall 

10 not serve more than 2 terms. 

11 (7) VACANCY.—A vacancy on the Board shall 

12 be filled in the manner in which the original appoint13 ment was made. 

14 (8) BASIC PAY.—To the extent or in the 

15 amounts provided in advance in appropriation Acts, 

16 members shall each be paid at a rate not to exceed 

17 the rate of basic pay for level II of the Executive 

18 Schedule. 

19 (d) LOCAL BOARDS.— 

20 (1) APPLICATIONS.— 

21 (A) IN GENERAL.—In establishing local 

22 boards pursuant to subsection (c)(1)(A), the 

23 Board shall consider applications on a competi24 tive basis from State and local governments, 

25 which shall include the following: 


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1 (i) The location of the local board, 

2 which must be in a covered region that— 

3 (I) possesses relevant assets for 

4 the development of technology; and 

5 (II) does not possess a leading 

6 technology center. 

7 (ii) A comprehensive strategy de8 scribed under paragraph (2). 

9 (iii) A recommendation of individuals 

10 to be appointed to the local board. 

11 (B) DURATION PERIOD.—Each grant 

12 under this section shall be made for a period of 

13 10 years, provided that the local board that re14 ceives such grant meets the requirements devel15 oped pursuant to subparagraph (C). 

16 (C) REQUIREMENTS.—The Board shall de17 velop requirements for each local board based 

18 on the comprehensive strategy of each such 

19 local board. 

20 (2) COMPREHENSIVE STRATEGY.—Each local 

21 board shall submit to the Board a comprehensive 

22 strategy that includes the following: 

23 (A) A technology development plan, includ24 ing the focus of the local board and existing adVerDate Sep 11 2014 19:29 Nov 17, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H8693.IH H8693

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1 vantages for the development of a hub in the 

2 covered region of the local board. 

3 (B) A spending plan, including an outline 

4 of the use of funds based on the duties of the 

5 local board under paragraph (3). 

6 (C) A plan to address infrastructure bar7 riers to the development of a hub, including— 

8 (i) the development of data infrastruc9 ture; 

10 (ii) remediation of environmentally 

11 damaged sites; 

12 (iii) the development of buildings, 

13 labs, roads, and bridges; and 

14 (iv) improvements to airports, train 

15 stations, and other forms of public transit. 

16 (D) A higher education improvement plan, 

17 including— 

18 (i) hiring faculty; 

19 (ii) supporting students; and 

20 (iii) partnering with institutions of 

21 higher education. 

22 (E) A primary and secondary education 

23 improvement plan, including— 

24 (i) an outline with respect to edu25 cating students in science, technology, enVerDate Sep 11 2014 19:29 Nov 17, 2020 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H8693.IH H8693

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1 gineering, and mathematics through the 

2 use of Federal resources; and 

3 (ii) an evidence-based program to 

4 overcome existing barriers to student 

5 achievement in the covered region. 

6 (F) A career placement plan based on the 

7 duties of the local board under paragraph (3). 

8 (G) A plan to improve access to capital for 

9 local businesses. 

10 (H) A sustainable growth plan that— 

11 (i) ensures housing remains affordable 

12 in the covered region; and 

13 (ii) addresses environmentally dam14 aged areas in the covered region. 

15 (3) DUTIES OF THE LOCAL BOARD.—Each local 

16 board shall— 

17 (A) establish a hub and oversee the activi18 ties of such hub; 

19 (B) make grants available for programs 

20 and research in the qualified subjects in covered 

21 regions, which may include grants to— 

22 (i) promote the development of stu23 dent skills at all levels, including— 

24 (I) primary and secondary school 

25 improvements that support education 


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1 in technology and the qualified sub2 jects; 

3 (II) fellowships for under4 graduate students to support edu5 cation in technology and the qualified 

6 subjects; and 

7 (III) post-graduate fellowship 

8 programs to support such graduate 

9 students working in technology and 

10 the qualified subjects; 

11 (ii) improve the ability of local institu12 tions of higher education to carry out lead13 ing-edge research in technology and the 

14 qualified subjects, including— 

15 (I) hiring faculty in the relevant 

16 areas; 

17 (II) laboratory construction and 

18 development; 

19 (III) developing and sponsoring 

20 programs to promote technological en21 trepreneurship among students (in 

22 partnership with leading firms in the 

23 covered region); and 

24 (IV) developing partnerships with 

25 local businesses to facilitate the tranVerDate Sep 11 2014 19:29 Nov 17, 2020 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H8693.IH H8693

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1 sition of students to the technology 

2 workforce; and 

3 (iii) develop effective pathways for ca4 reer advancement in technology that cre5 ates and reduces the costs of— 

6 (I) training programs for work in 

7 technology jobs; and 

8 (II) apprenticeship programs in 

9 technology jobs; 

10 (C) develop effective infrastructure to pro11 mote the creation of a technology center as de12 scribed in the plan under paragraph (2)(C); 

13 (D) improve access to capital for busi14 nesses in the covered region, including— 

15 (i) supporting partnerships with ven16 ture capitalists in regions with developed 

17 technology centers in the United States; 

18 and 

19 (ii) providing matching funds for Fed20 eral grants that support innovative busi21 nesses; 

22 (E) develop and implement a plan for im23 proving education in the qualified subjects; 

24 (F) develop and implement a plan for in25 creasing employment opportunities in the covVerDate Sep 11 2014 19:29 Nov 17, 2020 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H8693.IH H8693

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1 ered region in which the local board is located, 

2 including— 

3 (i) coordinating with the heads of 

4 businesses and institutions of higher edu5 cation to support job placement in the cov6 ered region; and 

7 (ii) analyzing employment indicators 

8 with respect to high-wage job opportunities 

9 in the covered region of the local board to 

10 determine— 

11 (I) areas that need development 

12 in such industries; and 

13 (II) ways such industries would 

14 benefit from the advancement of tech15 nology; 

16 (G) analyze infrastructure in covered re17 gions and provide policy recommendations to 

18 the Board with respect to inadequate infra19 structure, including data infrastructure; 

20 (H) analyze the cost of housing, zoning 

21 regulations, and laws related to housing in the 

22 covered region of the local board and provide 

23 policy recommendations to State and local gov24 ernments to ensure the cost of housing remains 

25 affordable as the hub established pursuant to 


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1 subparagraph (A) increases research activities 

2 in such covered region; and 

3 (I) provide support for the development of 

4 technology, including establishing partnerships 

5 with institutions of higher education. 

6 (e) GIFTS, BEQUESTS, AND DEVISES.—Notwith7 standing section 3302 of title 31, United States Code, and 

8 without further appropriation, the Board may accept, use, 

9 or dispose of gifts, bequests, or devises of services or prop10 erty, both real and personal, for the purpose of aiding or 

11 facilitating the work of the Institute. Gifts, bequests, or 

12 devises of money and proceeds from sales of other prop13 erty received as gifts, bequests, or devices shall be depos14 ited in a private endowment for disbursement upon order 

15 of the Board. 

16 (f) INSPECTOR GENERAL OF THE FEDERAL INSTI17 TUTE OF TECHNOLOGY.—Section 12 of the Inspector 

18 General Act of 1978 (Public Law 95–452; 5 U.S.C. App.) 

19 is amended— 

20 (1) in paragraph (1), by inserting ‘‘the Board 

21 of Directors of the Federal Institute of Technology;’’ 

22 after ‘‘the Tennessee Valley Authority;’’; and 

23 (2) in paragraph (2), by inserting ‘‘the Federal 

24 Institute of Technology,’’ after the ‘‘Tennessee Val25 ley Authority,’’. 


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1 (g) REPORTS.— 

2 (1) LOCAL BOARD REPORT.—Not later than 1 

3 year after the date of the enactment of this section, 

4 and annually thereafter, each local board shall sub5 mit to the Board a report containing recommenda6 tions based on the activities of each such local 

7 board, including recommendations for— 

8 (A) legislation that— 

9 (i) supports research and education in 

10 the qualified subjects; 

11 (ii) increases employment opportuni12 ties related to the qualified subjects; 

13 (iii) addresses inadequate infrastruc14 ture in covered regions; and 

15 (iv) ensures the cost of housing is af16 fordable in covered regions; 

17 (B) funding scientific development; and 

18 (C) policy priorities with respect to sup19 porting scientific development. 

20 (2) BREAKTHROUGH SCIENCE REPORT.—Not 

21 later than 1 year after the date of the enactment of 

22 this section, and annually thereafter, the Board shall 

23 submit to the President and Congress a report 

24 known as the ‘‘Breakthrough Science Report’’ con25 taining recommendations for— 


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1 (A) legislation based on the activities of 

2 the Institute; and 

3 (B) policy priorities with respect to sup4 porting scientific development, which shall take 

5 the funding priorities of the private sector into 

6 account. 

7 (3) NATIONAL ACADEMY OF SCIENCES RE8 PORT.—Not later than 1 year after the date of the 

9 enactment of this section, and annually thereafter, 

10 the National Academy of Sciences shall submit to 

11 Congress a report on the activities of the local 

12 boards, including an analysis of research activities 

13 for areas that did not receive grants from such local 

14 boards. 

15 (4) AUTHORIZATION OF APPROPRIATIONS; USE

16 OF AMOUNTS.— 

17 (A) AUTHORIZATION OF APPROPRIA18 TIONS.—To carry out this section, there is au19 thorized to be appropriated to the Board— 

20 (i) $67,500,000,000 for fiscal year 

21 2022; 

22 (ii) $72,500,000,000 for fiscal year 

23 2023; 

24 (iii) $77,500,000,000 for fiscal year 

25 2024; 


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1 (iv) $82,500,000,000 for fiscal year 

2 2025; 

3 (v) $87,500,000,000 for fiscal year 

4 2026; 

5 (vi) $92,500,000,000 for fiscal year 

6 2027; 

7 (vii) $97,500,000,000 for fiscal year 

8 2028; 

9 (viii) $102,500,000,000 for fiscal year 

10 2029; 

11 (ix) $107,500,000,000 for fiscal year 

12 2030; and 

13 (x) $112,500,000,000 for fiscal year 

14 2031. 

15 (B) USE OF AMOUNTS.—Of the amounts 

16 made available to the Board under subpara17 graph (A) in each fiscal year to carry out this 

18 section not less than— 

19 (i) 12.5 percent shall be used to pro20 vide funds to the Department of Energy; 

21 (ii) 12.5 percent shall be used to pro22 vide funds to the National Science Foun23 dation; 


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1 (iii) 12.5 percent shall be used to pro2 vide funds to the National Institutes of 

3 Health; and 

4 (iv) 20 percent shall be used to pro5 vide funds to the local boards to carry out 

6 the duties under subsection (d)(3). 

7 (C) DEFINITIONS.—In this section: 

8 (i) CERTAIN TECHNOLOGY SEC9 TORS.—The term ‘‘certain technology sec10 tors’’ means areas in technology that relate 

11 to the qualified subjects, which may in12 clude the following: 

13 (I) Advanced manufacturing. 

14 (II) Artificial intelligence. 

15 (III) Biotechnology. 

16 (IV) Blockchain technology. 

17 (V) Climate science. 

18 (VI) Computer science. 

19 (VII) Cybersecurity. 

20 (VIII) Material science. 

21 (IX) Medical technology. 

22 (X) Synthetic Biology. 

23 (XI) Telecommunications. 

24 (XII) Transportation technology. 


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1 (XIII) Virtual reality and aug2 mented reality. 

3 (ii) COVERED REGION.—The term 

4 ‘‘covered region’’ means a physical bound5 ary identified by a local board and located 

6 near an institution of higher education. 

7 (iii) HUB.—The term ‘‘hub’’ means a 

8 center for research in the qualified sub9 jects. 

10 (iv) QUALIFIED SUBJECTS.—The term 

11 ‘‘qualified subjects’’ means mathematics 

12 and the physical, biological, engineering, 

13 social, and chemical sciences. 

14 SEC. 4. PREFERENCE FOR SOFTWARE PRODUCED IN 

15 RURAL AREAS AND MINORITY MAJORITY 

16 AREAS. 

17 (a) IN GENERAL.—Chapter 33 of title 41, United 

18 States Code, is amended by adding at the end the fol19 lowing: 

20 ‘‘§ 3313. Preference for software produced in rural 

21 areas and minority majority areas 

22 ‘‘In awarding a contract for the procurement of soft23 ware, an agency shall provide a contracting preference to 

24 an offeror who demonstrates in the bid or proposal of that 

25 offeror that at least 10 percent of the production or develVerDate Sep 11 2014 19:29 Nov 17, 2020 Jkt 019200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H8693.IH H8693

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1 opment of the software offered in that bid or proposal oc2 curred in or will occur in— 

3 ‘‘(1) a rural area, as that term is defined under 

4 section 343(a)(13) of the Consolidated Farm and 

5 Rural Development Act (7 U.S.C. 1991(a)(13)); or 

6 ‘‘(2) a zip code in which over 50 percent of the 

7 residents of such zip code are minorities, as that 

8 term is defined under section 365 of the Higher 

9 Education Act of 1965 (20 U.S.C. 1067k).’’. 

10 (b) TECHNICAL AMENDMENT.—The table of sections 

11 at the beginning of chapter 33 of title 41, United States 

12 Code, is amended by inserting after the matter relating 

13 to section 3312 the following: 

‘‘3313. Preference for software produced in rural areas and minority majority 

areas.’’. 

14 SEC. 5. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 

15 RULES REQUIRED FOR EMPLOYERS TO RE16 PORT INFORMATION REGARDING EMPLOY17 EES. 

18 The Equal Employment Opportunity Commission 

19 shall— 

20 (1) initiate a rulemaking proceeding, including 

21 notice and opportunity for public comment, not later 

22 than 90 days after the date of the enactment of this 

23 section, and 


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1 (2) issue rules not later than 18 months after 

2 the date of the enactment of this section, 

3 to require employers to specify in the periodic employer 

4 information reports submitted to the Commission by each 

5 such employer the number of individuals employed by the 

6 employer, the number of individuals performing services 

7 billed hourly by head count or by team for the employer, 

8 the countries in which such respective individuals reside, 

9 and all of the revenue generated by the employer in each 

10 such country. 

11 SEC. 6. AMENDMENT TO THE ELEMENTARY AND SEC12 ONDARY EDUCATION ACT. 

13 (a) IN GENERAL.—Section 1111(b)(1)(C) of the Ele14 mentary and Secondary Education Act of 1965 (20 U.S.C. 

15 6311(b)(1)(C)) is amended by striking ‘‘and science’’ and 

16 inserting ‘‘science, and computer science’’. 

17 (b) EFFECTIVE DATE.—Not later than 5 years after 

18 the date of the enactment of this section, the amendment 

19 made by subsection (a) shall take effect. 

20 (c) REPORT REQUIRED.—Not later than 3 years 

21 after the date of the enactment of this section, each State 

22 educational agency shall submit to the Secretary a report 

23 on preparations made by local educational agencies within 

24 the State to implement academic standards for computer 

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1 ementary and Secondary Education Act of 1965 (20 

2 U.S.C. 6311(b)(1)(C)), as amended by subsection (a). 

3 SEC. 7. COMPUTER SCIENCE EDUCATION GRANTS. 

4 (a) IN GENERAL.—Not later than 1 year after the 

5 date of the enactment of this section, the Secretary of 

6 Education (referred to in this section as the ‘‘Secretary’’) 

7 shall carry out a program known as the ‘‘Computer 

8 Science Education Grant Program’’ (referred to in this 

9 section as the ‘‘Program’’) to make grants on a competi10 tive basis to eligible entities to pay the Federal share of 

11 the costs of training teachers and developing computer 

12 science curriculum (which includes data analytics) in ac13 cordance with subsection (c). 

14 (b) APPLICATIONS.—To be eligible to receive a grant 

15 under the Program, an eligible entity shall submit to the 

16 Secretary an application at such time, in such manner, 

17 and containing such information as the Secretary may re18 quire. 

19 (c) REQUIREMENT FOR USES OF GRANT FUNDS.— 

20 An eligible entity that receives a grant under the Program 

21 shall use grant funds to— 

22 (1) create opportunities for licensed elementary 

23 school teachers to pursue and receive training in 

24 computer science for the purpose of incorporating 


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1 computer science in the curriculum and educational 

2 material of such teacher; 

3 (2) create opportunities for licensed secondary 

4 school teachers to add computer science endorse5 ments to the license of each such teacher and to pro6 vide computer science learning experiences that are 

7 age-appropriate; 

8 (3) provide assistance to States that do not 

9 have computer science standards for teachers or stu10 dents to develop such standards and provide licenses 

11 and endorsements with respect to such standards; 

12 (4) create opportunities for teacher candidates 

13 interested in computer science to complete a full14 year residency program specialized in computer 

15 science; 

16 (5) expand access for teachers and students to 

17 high-quality learning materials, including computer 

18 equipment and high speed network infrastructure 

19 that supports the study of computer science; 

20 (6) expand computer science education pro21 grams— 

22 (A) at public institutions of higher edu23 cation; and 

24 (B) for the education of teachers; 


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1 (7) create and implement plans for expanding 

2 access to rigorous classes in science, technology, en3 gineering, and math for underrepresented groups, 

4 including minorities, girls, and youth from low-in5 come families; and 

6 (8) ensure support and resources for students, 

7 which may include mentoring for students tradition8 ally underrepresented in fields related to science, 

9 technology, engineering, and math. 

10 (d) PRIORITY.—In awarding grants under this sec11 tion, the Secretary shall give priority to applicants that 

12 demonstrate greater need as determined by the Secretary. 

13 (e) EVALUATION AND REPORT.—An eligible entity 

14 that receives a grant under the Program shall— 

15 (1) conduct an evaluation on the effects of the 

16 Program, including any increase in the ability of 

17 teachers to teach computer science; and 

18 (2) submit to the Secretary a report on such 

19 evaluation. 

20 (f) LIMITATION ON USE OF GRANT FUNDS.—An eli21 gible entity that receives a grant under the Program may 

22 not use more than 20 percent of the grant funds to pur23 chase computer equipment and network infrastructure. 

24 (g) GRANT DURATION AND AMOUNT.— 


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1 (1) DURATION.—Each grant under this section 

2 shall be made for a period of 5 years. 

3 (2) AMOUNT.—The Secretary shall determine 

4 the maximum amount of each grant under this sec5 tion. 

6 (h) FEDERAL SHARE.—The Federal share of a grant 

7 under the Program shall not exceed 90 percent of the costs 

8 of carrying out the activities described in subsection (c). 

9 (i) SUPPLEMENT, NOT SUPPLANT.—An eligible enti10 ty shall use a grant received under the Program only to 

11 supplement funds that would, in the absence of such 

12 grant, be made available from other Federal, State, or 

13 local sources for activities supported by the grant, not to 

14 supplant such funds. 

15 (j) ELIGIBLE ENTITY DEFINED.—The term ‘‘eligible 

16 entity’’ means— 

17 (1) a State educational agency; 

18 (2) an institution of higher education; and 

19 (3) a local educational agency. 

20 (k) AUTHORIZATION OF APPROPRIATIONS.—There is 

21 authorized to be appropriated to carry out this section 

22 $8,000,000,000 for fiscal year 2021. 

23 SEC. 8. SMART STUDENTS EVERYWHERE GRANTS. 

24 (a) ELIGIBLE PARTICIPANTS.— 


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1 (1) IN GENERAL.—Section 401A of the Higher 

2 Education Act of 1965 (20 U.S.C. 1070a–1) is 

3 amended— 

4 (A) in subsection (a), by inserting ‘‘or 

5 graduate’’ before ‘‘education’’; 

6 (B) in subsection (b)— 

7 (i) in paragraph (1), by striking 

8 ‘‘and’’ at the end; 

9 (ii) in paragraph (2), by striking the 

10 period at the end and inserting ‘‘; and’’; 

11 and 

12 (iii) by adding at the end the fol13 lowing: 

14 ‘‘(3) for the first through fourth year in a grad15 uate program in science, technology, engineering, or 

16 mathematics shall be known as a ‘SMART Students 

17 Everywhere Grant’.’’; 

18 (C) by amending subsection (c) to read as 

19 follows: 

20 ‘‘(c) DEFINITION OF ELIGIBLE STUDENT.—In this 

21 section, the term ‘eligible student’ means a student who— 

22 ‘‘(1) either— 

23 ‘‘(A) received a high school diploma from 

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1 lege graduation rate that is below the national 

2 average; or 

3 ‘‘(B) is a minority student; and 

4 ‘‘(2) for the award year for which the deter5 mination of eligibility is made for a grant under this 

6 section— 

7 ‘‘(A) except with respect to a student de8 scribed in clause (C)(vi), is eligible for a Fed9 eral Pell Grant; 

10 ‘‘(B) is enrolled or accepted for enrollment 

11 in an institution of higher education on not less 

12 than a half-time basis; and 

13 ‘‘(C) in the case of a student enrolled or 

14 accepted for enrollment in— 

15 ‘‘(i) the first year of a program of un16 dergraduate education at an institution of 

17 higher education (including a program of 

18 not less than one year for which the insti19 tution awards a certificate)— 

20 ‘‘(I) has not been previously en21 rolled in a program of undergraduate 

22 education, except as part of a sec23 ondary school program of study; and 

24 ‘‘(II) is certified by the institu25 tion of higher education as pursuing a 


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1 major in the physical, life, or com2 puter sciences, mathematics, tech3 nology, or engineering (as determined 

4 by the Secretary pursuant to regula5 tions); or 

6 ‘‘(ii) the second year of a program of 

7 undergraduate education at a two- or four8 year degree-granting institution of higher 

9 education (including a program of not less 

10 than two years for which the institution 

11 awards a certificate), is certified by the in12 stitution of higher education as pursuing a 

13 major in a subject described in clause 

14 (i)(II); 

15 ‘‘(iii) the third or fourth year of a 

16 program of undergraduate education at a 

17 four-year degree-granting institution of 

18 higher education, is certified by the institu19 tion of higher education to be pursuing a 

20 major in a subject described in clause 

21 (i)(II); 

22 ‘‘(iv) the third or fourth year of a pro23 gram of undergraduate education at an in24 stitution of higher education (as defined in 

25 section 101(a)), if such institution of highVerDate Sep 11 2014 19:29 Nov 17, 2020 Jkt 019200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H8693.IH H8693

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1 er education demonstrates, to the satisfac2 tion of the Secretary, that— 

3 ‘‘(I) such institution of higher 

4 education offers a single liberal arts 

5 curriculum leading to a baccalaureate 

6 degree, under which students are not 

7 permitted by the institution to declare 

8 a major in a particular subject area, 

9 and the student— 

10 ‘‘(aa) studies, in such years, 

11 a subject described in clause 

12 (i)(II) that is at least equal to 

13 the requirements for an academic 

14 major at an institution of higher 

15 education that offers a bacca16 laureate degree in such subject, 

17 as certified by an appropriate of18 ficial from such institution; or 

19 ‘‘(bb) is required, as part of 

20 the student’s degree program, to 

21 undertake a course of study in a 

22 subject described in clause (i)(II) 

23 which consists of at least— 

24 ‘‘(AA) 4 years of study 

25 in mathematics; and 


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1 ‘‘(BB) 3 years of study 

2 in the sciences, with a lab3 oratory component in each 

4 of those years; and 

5 ‘‘(II) such institution offered 

6 such curriculum prior to February 8, 

7 2006; 

8 ‘‘(v) the fifth year of a program of un9 dergraduate education that requires 5 full 

10 years of coursework, as certified by the ap11 propriate official of the degree-granting in12 stitution of higher education, for which a 

13 baccalaureate degree is awarded by a de14 gree-granting institution of higher edu15 cation, is certified by such institution of 

16 higher education to be pursuing a major in 

17 a subject described in clause (i)(II); or 

18 ‘‘(vi) the first through fourth year of 

19 a graduate program at an institution of 

20 higher education, is certified by such insti21 tution of higher education to be pursuing 

22 a graduate degree (including a program of 

23 not less than two years for which the insti24 tution awards a certificate) in a subject de25 scribed in clause (i)(II).’’; 


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1 (D) in subsection (d)— 

2 (i) in paragraph (1)— 

3 (I) by amending subparagraph 

4 (A) to read as follows: 

5 ‘‘(A) IN GENERAL.—The Secretary shall 

6 award a grant under this section in the amount 

7 of— 

8 ‘‘(i) $10,000 for an eligible student 

9 under clause (i) through (v) of subsection 

10 (c)(2)(C); and 

11 ‘‘(ii) $20,000 for an eligible student 

12 under clause (vi) of subsection (c)(2)(C).’’; 

13 (II) in subparagraph (B)(i), by 

14 striking ‘‘a student’’ and inserting 

15 ‘‘an undergraduate student’’; and 

16 (III) by adding at the end the 

17 following: 

18 ‘‘(C) REDUCTION FOR LESS THAN FULL19 TIME GRADUATE STUDENTS.—Notwithstanding 

20 subparagraph (A), in any case in which a grad21 uate that attends an institution of higher edu22 cation on less than a full-time basis, the 

23 amount of the grant that such a student may 

24 receive shall be reduced in proportion to the deVerDate Sep 11 2014 23:29 Nov 18, 2020 Jkt 019200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H8693.IH H8693

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1 gree to which such student is not so attending 

2 on a full-time basis.’’; 

3 (ii) in paragraph (2)— 

4 (I) in subparagraph (A), by in5 serting ‘‘or graduate’’ after ‘‘under6 graduate’’; and 

7 (II) in subparagraph (B), by 

8 striking ‘‘subsection (c)(3)’’ and in9 serting ‘‘subsection (c)(2)(C)’’; and 

10 (iii) in paragraph (3), by inserting ‘‘to 

11 an undergraduate student’’ before ‘‘in the 

12 same manner’’; and 

13 (E) by striking subsections (e), (f), and (g) 

14 and inserting the following: 

15 ‘‘(e) REPORT TO SECRETARY.—An institution of 

16 higher education shall submit to the Secretary a report 

17 on the students who receive a grant under this section, 

18 including data disaggregated with respect to the degree 

19 being pursued by such students and (if applicable) the 

20 earnings of such students. 

21 ‘‘(f) FUNDING.— 

22 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

23 There is authorized to be appropriated to the Sec24 retary of Education to carry out this section 


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1 $5,000,000,000 for fiscal year 2020 and each fiscal 

2 year thereafter. 

3 ‘‘(2) AVAILABILITY OF FUNDS.—The amounts 

4 made available by paragraph (1) for any fiscal year 

5 shall be available from October 1 of that fiscal year 

6 and remain available through September 30 of the 

7 succeeding fiscal year. 

8 ‘‘(3) TECHNICAL ASSISTANCE.— 

9 ‘‘(A) IN GENERAL.—Of the amounts ap10 propriated for a fiscal year under paragraph 

11 (1), the Secretary may use 1 percent to carry 

12 out technical assistance in such fiscal year to 

13 institutions of higher education to assist such 

14 institutions of higher education in carrying out 

15 SMART Students Everywhere Grants. 

16 ‘‘(B) APPLICATION.—This paragraph shall 

17 only apply to the first 3 years after the date of 

18 the enactment of this paragraph in which— 

19 ‘‘(i) amounts are appropriated under 

20 paragraph (1); and 

21 ‘‘(ii) SMART Students Everywhere 

22 Grants are awarded under this section.’’. 

23 (2) EFFECTIVE DATE.—The amendments made 

24 by this subsection shall take effect on the date that 


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1 is 1 year after the date of the enactment of this sec2 tion. 

3 (b) TAX CREDIT FOR FIRST-YEAR WAGES OF QUALI4 FIED RECIPIENTS OF A SMART GRANT.— 

5 (1) IN GENERAL.—Section 51(d)(1) of the In6 ternal Revenue Code of 1986 is amended by striking 

7 ‘‘or’’ at the end of subparagraph (I), by striking the 

8 period at the end of subparagraph (J) and inserting 

9 a comma, and by adding at the end the following 

10 new subparagraph: 

11 ‘‘(K) a qualified recipient of a SMART 

12 grant.’’. 

13 (2) DEFINITIONS AND SPECIAL RULES.—Sec14 tion 51(d) of the Internal Revenue Code of 1986 is 

15 amended by adding at the end the following new 

16 paragraph: 

17 ‘‘(16) QUALIFIED RECIPIENT OF A SMART

18 GRANT.— 

19 ‘‘(A) IN GENERAL.—The term ‘qualified 

20 recipient of a SMART grant’ means any indi21 vidual who is certified by the designated local 

22 agency as a recipient of a SMART Students 

23 Everywhere Grant pursuant to Section 401A of 

24 the Higher Education Act of 1965 (20 U.S.C. 


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1 1070a–1) during the 1-year period ending on 

2 the hiring date. 

3 ‘‘(B) SPECIAL RULES FOR DETERMINING

4 AMOUNT OF CREDIT.—For purposes of applying 

5 this subpart to any qualified recipient of a 

6 SMART grant— 

7 ‘‘(i) subsection (a) shall be applied by 

8 substituting ‘5 percent (10 percent in the 

9 case of any specified recipient of a SMART 

10 grant)’ for ‘40 percent’, and 

11 ‘‘(ii) subsection (b)(3) shall be applied 

12 by substituting ‘$50,000’ for ‘$6,000’ and 

13 all that follows in such subsection. 

14 ‘‘(C) AGGREGATE CREDIT DOLLAR LIMITA15 TION PER EMPLOYER.— 

16 ‘‘(i) LIMITATION WITH RESPECT TO

17 QUALIFIED RECIPIENTS OF A SMART

18 GRANT.—The aggregate credit determined 

19 under subsection (a) with respect to quali20 fied recipients of a SMART grant (other 

21 than specified recipients of a SMART 

22 grant) shall not exceed $10,000 for any 

23 taxable year of the taxpayer. 

24 ‘‘(ii) LIMITATION WITH RESPECT TO

25 SPECIFIED RECIPIENTS OF A SMART


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1 GRANT.—The aggregate credit determined 

2 under subsection (a) with respect to speci3 fied recipients of a SMART grant shall not 

4 exceed $20,000 for any taxable year of the 

5 taxpayer. 

6 ‘‘(D) SPECIFIED RECIPIENT OF A SMART

7 GRANT.—For purposes of this paragraph— 

8 ‘‘(i) IN GENERAL.—The term ‘speci9 fied recipient of a SMART grant’ means 

10 any qualified recipient of a SMART grant 

11 who is certified by the designated local 

12 agency as a veteran (as defined in para13 graph (3)(B)), a minority, or employed in 

14 a designated county. 

15 ‘‘(ii) DESIGNATED COUNTY.—In this 

16 paragraph, the term ‘designated county’ 

17 means a county that has a college gradua18 tion rate that is below the national aver19 age. 

20 ‘‘(iii) MINORITY.—In this paragraph, 

21 the term ‘minority’ has the meaning given 

22 the term under section 365 of the Higher 

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

24 1067k).’’. 


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1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to individuals who 

3 begin work for the employer after the date of the en4 actment of this section. 

5 SEC. 9. DEFINITIONS. 

6 In this Act: 

7 (1) ELEMENTARY AND SECONDARY EDUCATION

8 ACT TERMS.—The terms ‘‘institution of higher edu9 cation’’,‘‘local educational agency’’, and ‘‘State edu10 cational agency’’ have the meaning given the terms 

11 under section 8101 of the Elementary and Sec12 ondary Education Act of 1965 (20 U.S.C. 7801). 

13 (2) SECONDARY AND ELEMENTARY SCHOOL.— 

14 The terms ‘‘secondary school’’ and ‘‘elementary 

15 school’’ have the meanings given the terms under 

16 section 8101 of the Elementary and Secondary Edu17 cation Act of 1965 (20 U.S.C. 7801). 

Æ 


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