I 

113TH CONGRESS 

2D SESSION H. R. 4373 

To improve the Federal Pell Grant program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 2, 2014 

Mr. HINOJOSA (for himself, Mr. VARGAS, Mrs. NEGRETE MCLEOD, Ms. 

HAHN, Mr. SIRES, Mr. CASTRO of Texas, Ms. ROYBAL-ALLARD, Mr. 

GENE GREEN of Texas, Ms. CHU, Mrs. NAPOLITANO, Ms. CLARKE of 

New York, Ms. FUDGE, Mr. RICHMOND, Mr. PAYNE, Mr. BISHOP of New 

York, Ms. LINDA T. SA ́NCHEZ of California, Mr. VELA, Mr. O’ROURKE, 

Mr. CUELLAR, and Mr. MORAN) introduced the following bill; which was 

referred to the Committee on Education and the Workforce 

A BILL 

To improve the Federal Pell Grant program, 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 ‘‘Pell Grant Protection 

5 Act’’. 

6 SEC. 2. PURPOSE. 

7 The purpose of this Act is to restore the role of Fed8 eral Pell Grants as the foundational Federal investment 


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1 in higher education, in order to strengthen the economy 

2 of the United States by improving opportunities for low3 income students to complete higher education and join the 

4 middle class. 

5 SEC. 3. FINDINGS. 

6 Congress finds the following: 

7 (1) Federal Pell Grants provided under section 

8 401 of the Higher Education Act of 1965 (20 

9 U.S.C. 1070a) (referred to in this Act as ‘‘Federal 

10 Pell Grants’’) have historically been the fundamental 

11 Federal investment in helping low-income students 

12 pay for college and enter the middle class. In the 

13 1979–1980 academic year, the maximum Federal 

14 Pell Grant paid for 77 percent of the average cost 

15 of attendance at an in-State, 4-year institution of 

16 higher education. However, in the 2012–2013 aca17 demic year, the maximum Federal Pell Grant cov18 ered only about 30 percent of that average cost of 

19 attendance. 

20 (2) The program providing Federal Pell Grants 

21 already acts as a quasi-entitlement, in which both 

22 mandatory funding and discretionary funding com23 bine to maintain a maximum Federal Pell Grant 

24 amount. 


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1 (3) The Congressional Budget Office reports on 

2 any overall financial surplus or shortfall in the fund3 ing provided for the Federal Pell Grant program. 

4 However, in recent years, in order to meet the max5 imum Federal Pell Grant level with the provided 

6 level of funding, Congress has made cuts to the pro7 gram through imposing additional eligibility require8 ments for Federal Pell Grants and limiting the avail9 ability of year-round Federal Pell Grants, causing 

10 significant uncertainty and reducing access to higher 

11 education for millions of hardworking college stu12 dents. 

13 (4) Removing the Federal Pell Grant program 

14 from the uncertainty of the congressional discre15 tionary appropriations process will improve student 

16 access to, and the affordability of, higher education. 

17 (5) The ‘‘traditional student’’ who attends col18 lege for 4 years immediately after high school is now 

19 a minority of college students today. Ambitious stu20 dents now need more flexibility to attend school 

21 year-round while juggling work schedules. 

22 (6) Section 1860 of the Department of Defense 

23 and Full-Year Continuing Appropriations Act, 2011 

24 (Public Law 112–10, 125 Stat. 169) eliminated the 

25 provision of the Federal Pell Grant program of the 


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1 Higher Education Act of 1965 (20 U.S.C. 1070a et 

2 seq.) that allowed 2 Federal Pell Grant awards per 

3 year, creating significant hardship for many stu4 dents trying to take courses over the summer or out5 side the traditional school calendar. Allowing stu6 dents to continue to receive Federal Pell Grants in 

7 successive semesters, without a gap, would reduce 

8 the time needed to complete their degrees. 

9 SEC. 4. CONVERTING THE TRADITIONAL FEDERAL PELL 

10 GRANT PROGRAM TO A MANDATORY SPEND11 ING PROGRAM. 

12 (a) LEGISLATIVE PROVISIONS.—Section 401(b) of 

13 the Higher Education Act of 1965 (20 U.S.C. 1070a(b)) 

14 is amended— 

15 (1) in paragraph (2)— 

16 (A) in subparagraph (A)— 

17 (i) by striking clauses (i) and (ii) and 

18 inserting the following: 

19 ‘‘(i)(I) for award year 2014–2015, 

20 $5,730; or 

21 ‘‘(II) for award year 2015–2016 and 

22 each subsequent award year, the amount 

23 of the maximum Federal Pell Grant deter24 mined under this clause for the imme25 diately preceding award year, increased by 


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1 a percentage equal to the estimated per2 centage increase, if any, in the Consumer 

3 Price Index (as determined by the Sec4 retary, using the definition in section 

5 478(f)) for the most recent calendar year 

6 ending prior to the beginning of that 

7 award year; plus 

8 ‘‘(ii) any additional amount specified 

9 for the maximum Federal Pell Grant in 

10 the last enacted appropriation Act applica11 ble to that award year, less’’; and 

12 (B) by adding at the end the following: 

13 ‘‘(C)(i) For fiscal year 2015 and each succeeding fis14 cal year, there are appropriated, out of any money in the 

15 Treasury not otherwise appropriated, such sums as may 

16 be necessary to provide, in combination with any amounts 

17 separately appropriated under subparagraph (A)(ii), Fed18 eral Pell Grants under this section in the amount specified 

19 in subparagraph (A) to all eligible students. 

20 ‘‘(ii) The amounts made available by clause (i) for 

21 any fiscal year shall be available beginning on October 1 

22 of that fiscal year, and shall remain available through Sep23 tember 30 of the succeeding fiscal year.’’; and 

24 (2) by striking paragraph (7). 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 subsection (a) shall apply with respect to Federal Pell 

3 Grants awarded under section 401 of the Higher Edu4 cation Act of 1965 (20 U.S.C. 1070a) for award year 

5 2015–2016 and each succeeding award year. 

6 SEC. 5. YEAR-ROUND FEDERAL PELL GRANT STUDENTS. 

7 (a) IN GENERAL.—Section 401(b) of the Higher 

8 Education Act of 1965 (20 U.S.C. 1070a(b)), as amended 

9 by section 4, is further amended by adding at the end the 

10 following: 

11 ‘‘(7) YEAR-ROUND FEDERAL PELL GRANT STU12 DENTS.— 

13 ‘‘(A) IN GENERAL.—Notwithstanding any other 

14 provision of this subsection, the Secretary shall 

15 award, to an eligible student who has received a 

16 Federal Pell Grant for an award year and is enrolled 

17 in a program of study for 1 or more additional pay18 ment periods during the same award year that are 

19 not otherwise covered by the student’s Federal Pell 

20 Grant, an additional Federal Pell Grant for the ad21 ditional payment periods. 

22 ‘‘(B) AMOUNTS.—In the case of a student re23 ceiving more than one Federal Pell Grant in a single 

24 award year under subparagraph (A), the total 

25 amount of the Federal Pell Grants awarded to such 


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1 student for the award year may exceed the total 

2 maximum Federal Pell Grant for such award year, 

3 as calculated under clauses (i) and (ii) of paragraph 

4 (2)(A). 

5 ‘‘(C) INCLUSION IN DURATION LIMIT.—Any pe6 riod of study covered by a Federal Pell Grant 

7 awarded under subparagraph (A) shall be included 

8 in determining a student’s duration limit under sub9 section (c)(5). 

10 ‘‘(8) CROSSOVER PERIOD.—In any case where an eli11 gible student is receiving a Federal Pell Grant for a pay12 ment period that spans 2 award years, the Secretary shall 

13 allow the eligible institution in which the student is en14 rolled to determine the award year to which the additional 

15 period shall be assigned.’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 subsection (a) shall take effect on July 1, 2014. 

Æ 


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