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106TH CONGRESS

1ST SESSION H. R. 1675

To provide for the full funding of the Pell Grant Program.

IN THE HOUSE OF REPRESENTATIVES

MAY 4, 1999

Mrs. MINK of Hawaii introduced the following bill; which was referred to the

Committee on Education and the Workforce

A BILL

To provide for the full funding of the Pell Grant Program.

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 ‘‘ll Act of 1999’’.

5 SEC. 2. FULL FUNDING OF PELL GRANT AWARDS.

6 Subsection (g) of section 401 of the Higher Edu7 cation Act of 1965 (20 U.S.C. 1070a(g) is amended to

8 read as follows:

9 ‘‘(g) ADJUSTMENTS FOR INSUFFICIENT APPROPRIA10 TIONS.—

11 ‘‘(1) FISCAL YEARS 1999 AND 2000.—(A) If, for

12 fiscal years 1999 and 2000, the funds appropriated
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1 for payments under this subpart are insufficient to

2 satisfy fully all entitlements, as calculated under

3 subsection (b), the amount paid with respect to each

4 entitlement shall be—

5 ‘‘(i) the full amount for any student whose

6 expected family contribution is $400 or less; or

7 ‘‘(ii) a percentage of that entitlement, as

8 determined in accordance with a schedule of re9 ductions established by the Secretary for this

10 purpose, for any student whose expected family

11 contribution is more than $400.

12 ‘‘(B) Any schedule established by the Secretary

13 for the purpose of subparagraph (A)(ii) of this sub14 section shall contain a single linear reduction for15 mula in which the percentage reduction increases

16 uniformly as the entitlement decreases, and shall

17 provide that if an entitlement is reduced to less than

18 $200, no payment shall be made.

19 ‘‘(2) SUCCEEDING FISCAL YEARS.—(A) For fis20 cal years 2001, 2002, 2003, 2004, and 2005, each

21 institution of higher education which has an agree22 ment with the Secretary under subparagraph (C) of

23 this paragraph—
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1 ‘‘(i) shall make awards to its eligible stu2 dents in the full amount to which such student

3 is entitled under this subpart;

4 ‘‘(ii) shall, except as provided in subpara5 graph (E), credit the amounts of such awards

6 toward the tuition, fees, room and board, and

7 other expenses incurred by the eligible student;

8 and

9 ‘‘(iii) shall submit vouchers for reimburse10 ment of such awards at such time, in such

11 form, and containing or accompanied by such

12 information as the Secretary may require by

13 regulation.

14 ‘‘(B) The Secretary shall reimburse each insti15 tution submitting a voucher under subparagraph

16 (A)(iii) for the full amount of the awards credited by

17 such institution to eligible students as required by

18 subparagraph (A)(ii).

19 ‘‘(C) Each institution desiring to provide grants

20 under this subpart to its eligible students shall enter

21 into an agreement with the Secretary for purposes

22 of this subsection. Such agreement shall—

23 ‘‘(i) specify the conditions with which the

24 institution shall comply to obtain reimburse25 ments under this subsection;
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1 ‘‘(ii) specify the obligations of the Sec2 retary with respect to such reimbursements;

3 and

4 ‘‘(iii) contain such additional terms and

5 conditions as the Secretary may require by reg6 ulation.

7 ‘‘(D) An institution which—

8 ‘‘(i) has entered into an agreement with

9 the Secretary under subparagraph (C);

10 ‘‘(ii) has awarded grants to eligible stu11 dents in accordance with this subpart; and

12 ‘‘(iii) credited such awards in accordance

13 with subparagraph (A)(ii) of this subsection;

14 shall be deemed to have a contractual right against

15 the United States to receive reimbursement accord16 ing to the provisions of this subsection. Such reim17 bursements shall, for purposes of chapter 39 of title

18 31, United States Code, be considered to be pay19 ments made for the acquisition of services by con20 tract with the Department.

21 ‘‘(E) In the case of a student who does not re22 side in institutionally owned or operated housing and

23 whose basic grant exceeds the amount of the tuition

24 and fees owed by that student, the institution shall

25 pay such excess to such student in accordance with
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1 procedures as may be prescribed by the Secretary.

2 For purposes of subparagraph (D)(iii), any amounts

3 so paid shall be treated as amounts credited in ac4 cordance with subparagraph (A)(ii), and may be

5 used by such student to cover room, board, transpor6 tation, child care, books, and other costs of attend7 ance.’’.

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