I 

115TH CONGRESS 

2D SESSION H. R. 5384 

To establish State-Federal partnerships to provide students the opportunity 

to attain higher education at in-State public institutions of higher education without debt, to provide Federal Pell Grant eligibility to DREAMer students, to repeal suspension of eligibility under the Higher Education Act of 1965 for drug-related offenses, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 22, 2018 

Mr. POCAN (for himself, Mr. ELLISON, Mrs. WATSON COLEMAN, Mr. GRIJALVA, Mr. TAKANO, Mr. NOLAN, Ms. JUDY CHU of California, Ms. 

CLARKE of New York, Mr. CROWLEY, Ms. DELAURO, Mr. DESAULNIER, 

Mr. GOMEZ, Ms. NORTON, Ms. JACKSON LEE, Mr. KHANNA, Ms. LEE, 

Mrs. CAROLYN B. MALONEY of New York, Ms. MOORE, Mrs. NAPOLITANO, Mr. PALLONE, Mr. RASKIN, Mr. WELCH, and Mr. HUFFMAN) introduced the following bill; which was referred to the Committee on Education and the Workforce 

A BILL 

To establish State-Federal partnerships to provide students 

the opportunity to attain higher education at in-State 

public institutions of higher education without debt, to 

provide Federal Pell Grant eligibility to DREAMer students, to repeal suspension of eligibility under the Higher 

Education Act of 1965 for drug-related offenses, 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Debt-Free College 

3 Act’’. 

4 SEC. 2. DEBT-FREE COLLEGE PARTNERSHIP. 

5 Title IV of the Higher Education Act of 1965 (20 

6 U.S.C. 1070 et seq.) is amended by adding at the end 

7 the following: 

8 ‘‘PART J—DEBT-FREE COLLEGE PARTNERSHIP 

9 ‘‘SEC. 499A–1. PURPOSE. 

10 ‘‘The purpose of this part is to establish State-Fed11 eral partnerships that will— 

12 ‘‘(1) increase investment in public higher edu13 cation; and 

14 ‘‘(2) provide students the opportunity to attain 

15 higher education at in-State public institutions of 

16 higher education without debt (‘debt-free college’). 

17 ‘‘SEC. 499A–2. DEFINITIONS. 

18 ‘‘In this part: 

19 ‘‘(1) COLLEGE COMPLETION PROGRAM.—The 

20 term ‘college completion program’ means a program 

21 or service at an institution of higher education that 

22 is dedicated to addressing barriers to degree attain23 ment, particularly for low-income students, for the 

24 purpose of increasing the percentage of students 

25 completing programs of study in their entirety and 

26 attaining related degrees. 


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1 ‘‘(2) COST OF ATTENDANCE.—The term ‘cost of 

2 attendance’ means— 

3 ‘‘(A) tuition and fees normally assessed a 

4 student carrying the same academic workload 

5 as determined by the institution, and including 

6 costs for rental or purchase of any equipment, 

7 materials, or supplies required of all students in 

8 the same course of study; 

9 ‘‘(B) an allowance for books, supplies, 

10 transportation, and miscellaneous personal ex11 penses, including a reasonable allowance for the 

12 documented rental or purchase of a personal 

13 computer, for a student attending the institu14 tion on at least a half-time basis, as determined 

15 by the institution; 

16 ‘‘(C) an allowance (determined by the in17 stitution) for room and board costs incurred by 

18 the student which— 

19 ‘‘(i) shall be an allowance determined 

20 by the institution for a student without de21 pendents residing at home with parents; 

22 ‘‘(ii) for students without dependents 

23 residing in institutionally owned or oper24 ated housing, shall be a standard allowance 

25 determined by the institution based on the 


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1 amount normally assessed most of its resi2 dents for room and board; 

3 ‘‘(iii) for students who live in housing 

4 located on a military base or for which a 

5 basic allowance is provided under section 

6 403(b) of title 37, United States Code, 

7 shall be an allowance based on the ex8 penses reasonably incurred by such stu9 dents for board but not for room; and 

10 ‘‘(iv) for all other students shall be an 

11 allowance based on the expenses reason12 ably incurred by such students for room 

13 and board. 

14 ‘‘(3) DEBT-FREE COLLEGE COMMITMENT.—The 

15 term ‘debt-free college commitment’ means a com16 mitment by a State participating in the State-Fed17 eral partnership under this part to cover the unmet 

18 financial need for all eligible students. 

19 ‘‘(4) ELIGIBLE STUDENT.—The term ‘eligible 

20 student’ means an individual who— 

21 ‘‘(A) is enrolled, or is eligible to enroll, in 

22 a public institution of higher education in the 

23 State in which the individual resides; 

24 ‘‘(B) completes a Free Application for 

25 Federal Student Aid; and 


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1 ‘‘(C) demonstrates satisfactory academic 

2 progress, as defined under the Federal Pell 

3 Grant program under subpart 1 of part A, once 

4 enrolled in a public institution of higher edu5 cation in the State in which the individual re6 sides. 

7 ‘‘(5) FULL-TIME EQUIVALENT STUDENTS.—The 

8 term ‘full-time equivalent students’ means the sum 

9 of the number of students enrolled full time at an 

10 institution, plus the full-time equivalent of the num11 ber of students enrolled part time, which shall be de12 fined and calculated in the manner determined most 

13 appropriate by the Secretary. 

14 ‘‘(6) NET STATE OPERATING SUPPORT.—The 

15 term ‘net State operating support’ means an amount 

16 that is equal to the amount of State funds and local 

17 government appropriations used to support public 

18 higher education annual operating expenses in the 

19 State, calculated in accordance with subparagraphs 

20 (A) and (B). 

21 ‘‘(A) CALCULATION.—A State’s net State 

22 operating support shall, for a fiscal year, be an 

23 amount that is equal to the difference resulting 

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1 pended by the recipient institutions in the fiscal 

2 year for public higher education operating ex3 penses in the State, minus— 

4 ‘‘(i) such appropriations that are re5 turned to the State; 

6 ‘‘(ii) State-appropriated funds derived 

7 from Federal sources, including funds pro8 vided under this part; 

9 ‘‘(iii) local government funds not ap10 propriated for operating support for public 

11 higher education; 

12 ‘‘(iv) amounts that are portions of 

13 multi-year appropriations to be distributed 

14 over multiple years that are not to be 

15 spent for the year for which the calculation 

16 is being made; 

17 ‘‘(v) tuition charges remitted to the 

18 State to offset State appropriations; 

19 ‘‘(vi) State funding for students in 

20 non-credit continuing or adult education 

21 courses and non-credit extension courses; 

22 ‘‘(vii) sums appropriated to private 

23 nonprofit institutions of higher education, 

24 or to proprietary institutions of higher 


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1 education, for capital outlay or operating 

2 expenses; and 

3 ‘‘(viii) any other funds excluded under 

4 subparagraph (B). 

5 ‘‘(B) EXCLUSIONS.—Net State operating 

6 support does not include— 

7 ‘‘(i) funds for— 

8 ‘‘(I) student aid programs that 

9 provide grants to students attending 

10 in-State private nonprofit institutions 

11 of higher education, in-State propri12 etary institutions of higher education, 

13 independent institutions, and out-of14 State institutions; 

15 ‘‘(II) capital outlay; 

16 ‘‘(III) deferred maintenance; or 

17 ‘‘(IV) research and development; 

18 or 

19 ‘‘(ii) any other funds that the Sec20 retary may exclude. 

21 ‘‘(7) NET STATE OPERATING SUPPORT PER FTE

22 STUDENT.—The term ‘net State operating support 

23 per FTE student’ means, for a fiscal year— 

24 ‘‘(A) the net State operating support for 

25 the previous fiscal year; divided by 


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1 ‘‘(B) the full-time equivalent students for 

2 the previous fiscal year. 

3 ‘‘(8) PARTNERSHIP OFFICE.—The term ‘Part4 nership Office’ means the Office created under sec5 tion 499A–4(a). 

6 ‘‘(9) PUBLIC INSTITUTION OF HIGHER EDU7 CATION.—The term ‘public institution of higher edu8 cation’ means an educational institution in any State 

9 that— 

10 ‘‘(A) admits as regular students only per11 sons having a certificate of graduation from a 

12 school providing secondary education, or the 

13 recognized equivalent of such a certificate, or 

14 persons who are eligible students; 

15 ‘‘(B) is legally authorized within such 

16 State to provide a program of education beyond 

17 secondary education; 

18 ‘‘(C) provides an educational program for 

19 which the institution awards a bachelor’s degree 

20 or provides not less than a 2-year program that 

21 is acceptable for full credit toward such a de22 gree, or awards a degree that is acceptable for 

23 admission to a graduate or professional degree 

24 program, subject to review and approval by the 

25 Secretary; 


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1 ‘‘(D) has the full faith and credit of the 

2 State; and 

3 ‘‘(E) is accredited by a nationally recog4 nized accrediting agency or association, or if 

5 not so accredited, is an institution that has 

6 been granted preaccreditation status by such an 

7 agency or association that has been recognized 

8 by the Secretary for the granting of preaccredi9 tation status, and the Secretary has determined 

10 that there is satisfactory assurance that the in11 stitution will meet the accreditation standards 

12 of such an agency or association within a rea13 sonable time. 

14 ‘‘(10) RELEVANT COMMITTEES OF CON15 GRESS.—The term ‘relevant committees of Congress’ 

16 means the Committee on Health, Education, Labor, 

17 and Pensions and the Committee on Appropriations 

18 of the Senate and the Committee on Education and 

19 the Workforce and the Committee on Appropriations 

20 of the House of Representatives. 

21 ‘‘(11) UNMET NEED.—The term ‘unmet need’ 

22 means the difference between a student’s cost of at23 tendance to attend an in-State public institution of 

24 higher education and the student’s expected family 


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1 contribution plus any Federal, State, or local sources 

2 of grant aid. 

3 ‘‘SEC. 499A–3. ESTABLISHMENT OF A STATE-FEDERAL PART4 NERSHIP GRANT PROGRAM. 

5 ‘‘(a) GRANTS AUTHORIZED.—The Secretary shall 

6 award grants to States to establish State-Federal partner7 ships with a goal of providing debt-free college for all eligi8 ble students at in-State public institutions of higher edu9 cation. 

10 ‘‘(b) APPLICATION.—A State that desires to partici11 pate in the State-Federal partnership under this part shall 

12 submit an application to the Secretary at such time, in 

13 such manner, and accompanied by such information as the 

14 Secretary may require. 

15 ‘‘(c) AMOUNT OF GRANTS.— 

16 ‘‘(1) IN GENERAL.—The Secretary shall award 

17 a grant to a State that submits an application under 

18 subsection (b) for a fiscal year in an amount that is 

19 equal to State’s net State operating support. 

20 ‘‘(2) RATABLE REDUCTION.—If the amount ap21 propriated to carry out this part for a fiscal year is 

22 insufficient to award each State the State’s full 

23 grant amount pursuant to paragraph (1), the Sec24 retary shall establish procedures for ratably reducing 

25 each State’s award amount for such fiscal year. 


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1 ‘‘(d) AMOUNTS NOT EXPENDED.—Any amount of a 

2 grant awarded under this part that is not expended on 

3 allowable expenditures by the end of the fiscal year for 

4 which the grant was awarded shall be applied to the fol5 lowing year’s grant award amount, if the State remains 

6 eligible to receive a grant under this part for such fol7 lowing year. If such State is not eligible to receive a grant 

8 under this part for such following year, the State shall 

9 return the unexpended balance amount to the Federal 

10 Government. 

11 ‘‘SEC. 499A–4. STATE-FEDERAL PARTNERSHIP RESPON12 SIBILITIES. 

13 ‘‘(a) FEDERAL.— 

14 ‘‘(1) IN GENERAL.—The Secretary shall create 

15 an office in the Department of Education to admin16 ister the State-Federal partnerships established 

17 under this part. Such Partnership Office shall be re18 sponsible for— 

19 ‘‘(A) administering grant awards; 

20 ‘‘(B) monitoring compliance with partner21 ship requirements; 

22 ‘‘(C) providing technical assistance to 

23 States in applying for participation in, and im24 plementing, a partnership; and 


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1 ‘‘(D) providing information to students in 

2 participating States. 

3 ‘‘(2) EVALUATIONS.—The Partnership Office 

4 shall develop metrics of evaluation and perform an 

5 annual evaluation of each State participating in a 

6 State-Federal partnership under this part. The eval7 uation shall assess the State’s success in meeting the 

8 partnership’s goals, including— 

9 ‘‘(A) providing debt-free college for all eli10 gible students; 

11 ‘‘(B) increasing State investment in higher 

12 education; 

13 ‘‘(C) maintaining access to in-State public 

14 institutions of higher education for low-income 

15 and underserved students; 

16 ‘‘(D) maintaining and improving rates of 

17 college completion and academic quality; 

18 ‘‘(E) maintaining or reducing the cost of 

19 public higher education and the price charged 

20 to students; and 

21 ‘‘(F) investing in improving capacity, ac22 cess, quality, and student achievement of in23 State public institutions of higher education. 

24 ‘‘(3) ANNUAL REPORT.—The Partnership Of25 fice shall submit an annual report to the relevant 


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1 committees of Congress and include information 

2 gained from the annual evaluation under paragraph 

3 (2). 

4 ‘‘(4) WEBSITE.—The Partnership Office shall 

5 create a public, consumer-oriented website with in6 formation about State-Federal partnerships estab7 lished under this part, including information from 

8 the annual evaluation under paragraph (2). 

9 ‘‘(b) STATE.— 

10 ‘‘(1) IN GENERAL.—A State that receives a 

11 grant under this part to establish a State-Federal 

12 partnership shall— 

13 ‘‘(A) distribute the grant funds according 

14 to the allowable uses of funds described in sec15 tion 499A–5 in a manner designed to best 

16 achieve the partnership’s goal of providing debt17 free college for all eligible students at in-State 

18 public institutions of higher education; 

19 ‘‘(B) maintain access at each in-State pub20 lic institution of higher education for low-in21 come and underserved students; 

22 ‘‘(C) cap tuition and fees at public institu23 tions of higher education in the State at levels 

24 as of the date of enactment of the Debt-Free 

25 College Act, with a yearly increase allowed 


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1 based on the Consumer Price Index (as deter2 mined by the Secretary); 

3 ‘‘(D) commit to working with in-State pub4 lic institutions of higher education to reduce 

5 tuition and fees as the net State operating sup6 port increases; 

7 ‘‘(E) maintain State need-based financial 

8 aid programs in effect on the date of enactment 

9 of the Debt-Free College Act or use State funds 

10 for such programs to further the debt-free com11 mitment made under the State-Federal partner12 ship; 

13 ‘‘(F) maintain or increase levels of net 

14 State operating support in effect on the date of 

15 enactment of the Debt-Free College Act, subject 

16 to the maintenance of effort provisions con17 tained in this part; 

18 ‘‘(G) develop, adopt, and implement a 

19 State formula for calculating the cost of attend20 ance at in-State public institutions of higher 

21 education; 

22 ‘‘(H) develop statewide credit transfer poli23 cies to— 


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1 ‘‘(i) facilitate credit transfers among 

2 in-State public institutions of higher edu3 cation; and 

4 ‘‘(ii) provide students with clear and 

5 timely information about credit transfer 

6 policies at in-State public institutions of 

7 higher education; and 

8 ‘‘(I) clearly communicate to prospective 

9 students, their families, and the general public 

10 how the State plans to implement the State11 Federal partnership and how eligible students 

12 can attend a public institution of higher edu13 cation in the State without debt, including early 

14 notification for students of their eligibility for 

15 financial aid under the partnership. 

16 ‘‘(2) 5-YEAR PLAN.— 

17 ‘‘(A) IN GENERAL.—In order to receive a 

18 grant under this part, a State shall provide to 

19 the Secretary a 5-year plan for achieving the 

20 goals of the State-Federal partnership. A State 

21 shall update and resubmit a plan every 5 years 

22 thereafter. 

23 ‘‘(B) PLAN TO MEET GOALS.—The 5-year 

24 plan shall detail how the State plans to meet 

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1 gible students at in-State public institutions of 

2 higher education within 5 years and increase 

3 the State’s investment in higher education, with 

4 specific benchmarks detailed for each year. 

5 ‘‘(C) APPROVED BY THE SECRETARY.— 

6 The 5-year plan, and the State’s annual 

7 progress, shall be approved by the Secretary in 

8 order for the State to be eligible to receive, or 

9 continue receiving, grant funds under the State10 Federal Partnership award. 

11 ‘‘(D) WAIVER OF 5-YEAR DEADLINE.—A 

12 State may apply for a waiver from the deadline 

13 of meeting all of the State-Federal partner14 ship’s goals within 5 years if the State— 

15 ‘‘(i) provides a credible plan for mak16 ing progress towards the goals; and 

17 ‘‘(ii) is able to demonstrate that the 

18 State will, at a minimum, provide debt-free 

19 college within 5 years to eligible students 

20 who are Federal Pell Grant recipients 

21 under subpart 1 of part A. 

22 ‘‘(3) NO ADDITIONAL ELIGIBILITY REQUIRE23 MENTS.—A State that receives a grant under this 

24 part to establish a State-Federal partnership may 


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1 not impose additional eligibility requirements on stu2 dents other than those contained in this part. 

3 ‘‘SEC. 499A–5. USES OF FUNDS. 

4 ‘‘(a) IN GENERAL.— 

5 ‘‘(1) NEED-BASED AID FOR PELL RECIPI6 ENTS.—A State that receives a grant under this 

7 part to establish a State-Federal partnership shall 

8 disburse funds from the net State operating support 

9 and the partnership grant funds on the basis of 

10 need, as determined by the Free Application for 

11 Federal Student Aid, to cover the unmet need for 

12 each eligible student who receives a Federal Pell 

13 Grant under subpart 1 of part A. 

14 ‘‘(2) DISBURSEMENT OF REMAINING FUNDS.— 

15 Any funds that remain after a State disburses funds 

16 in accordance with paragraph (1) shall be used by 

17 the State to cover part or all of the unmet need for 

18 eligible students who do not receive a Federal Pell 

19 Grant under subpart 1 of part A, with priority based 

20 on student financial need, in a manner determined 

21 by the State. 

22 ‘‘(3) NO FUNDS IN EXCESS OF COST OF AT23 TENDANCE.—An eligible student shall not receive 

24 funds under this part in excess of the student’s ac25 tual cost of attendance. 


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1 ‘‘(4) PRIVATE AID NOT TAKEN INTO AC2 COUNT.—In disbursing funds under this paragraph, 

3 the State shall not take into account any private 

4 sources of aid or loans available to an eligible stu5 dent. 

6 ‘‘(b) COLLEGE COMPLETION PROGRAMS.— 

7 ‘‘(1) IN GENERAL.—A State that receives a 

8 grant under this part for a fiscal year to establish 

9 a State-Federal partnership shall use 4 percent of 

10 the grant funds for such fiscal year to establish or 

11 increase funding for college completion programs. 

12 ‘‘(2) DISTRIBUTION.—From the total amount 

13 of grant funds available under paragraph (1) for a 

14 fiscal year, the State shall provide to each public in15 stitution of higher education in the State that is eli16 gible to participate in programs under this title for 

17 such fiscal year an amount that bears the same rela18 tion to such total amount as the number of students 

19 enrolled in such institution of higher education who 

20 are eligible to receive a Federal Pell Grant bears to 

21 the number of students enrolled in all public institu22 tions of higher education in the State who are eligi23 ble to receive a Federal Pell Grant. 

24 ‘‘(3) ALLOWABLE USES.—An institution of 

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1 graph (2) shall use such funds to establish, imple2 ment, or expand a college completion program, in3 cluding for the following purposes: 

4 ‘‘(A) Providing information to prospective 

5 and current students to assist and improve 

6 completion, including creating materials clari7 fying different program completion require8 ments and costs, holding seminars for prospec9 tive or current students on course schedules 

10 and program costs, and updating school 

11 websites to make information publically avail12 able. 

13 ‘‘(B) Hiring additional counselors and ad14 visors to focus on student completion support 

15 and training existing personnel to implement 

16 the college completion program. 

17 ‘‘(C) Increasing academic support pro18 grams, such as writing coaches, tutors, pre19 requisite skill courses, and study materials, and 

20 enhancing academic facilities for students. 

21 ‘‘(D) Providing microgrants for students 

22 participating in the college completion program 

23 who maintain good academic standing and 

24 progress toward on-time graduation. 

25 ‘‘(4) REPORTING.— 


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1 ‘‘(A) REPORTS FROM INSTITUTIONS.—An 

2 institution of higher education that receives 

3 funds under paragraph (2) shall submit to the 

4 State in which the institution is located at the 

5 end of each fiscal year a report that details the 

6 uses of funds, changes in the ratios of students 

7 to counselors, and 2-year and 4-year degree at8 tainment rates, disaggregated by race and Fed9 eral Pell Grant recipient status. 

10 ‘‘(B) SUSPENSION.—If a State determines 

11 that an institution of higher education that re12 ceives funds under paragraph (2) for a fiscal 

13 year used such funds for activities that were 

14 not allowable uses under paragraph (3), the 

15 State may suspend distribution of funds to the 

16 institution for the following fiscal year and re17 quire the institution to submit proposed expend18 itures for approval before receiving funds again 

19 under paragraph (2). 

20 ‘‘(C) REPORT FROM STATE.—A State that 

21 receives a grant under this part for a fiscal year 

22 to establish a State-Federal partnership shall 

23 submit to the Secretary at the end of each fis24 cal year a report that details the uses of grant 

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1 tions of higher education in the State that are 

2 eligible to participate in programs under this 

3 title, changes in the ratio of students to coun4 selors in such institutions in the State, and 2- 

5 year and 4-year degree attainment rates in such 

6 institutions in the State, disaggregated by race 

7 and Federal Pell Grant recipient status. 

8 ‘‘(c) HIGHER EDUCATION RELATED ACTIVITIES.—A 

9 State that receives a grant under this part to establish 

10 a State-Federal partnership may use not more than 5 per11 cent of the grant funds for the following higher education 

12 related activities: 

13 ‘‘(1) Increasing the capacity within the public 

14 higher education system of the State, including 

15 through the following: 

16 ‘‘(A) Construction of new facilities. 

17 ‘‘(B) Renovation of existing facilities. 

18 ‘‘(C) Hiring of faculty. 

19 ‘‘(D) Student support services. 

20 ‘‘(2) Increasing the enrollment of low-income 

21 and underserved students. 

22 ‘‘(3) Improving student outcomes, including 

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1 ment, in consultation with faculty and staff at in2 State public institutions of higher education. 

3 ‘‘(4) Providing information to prospective stu4 dents and families. 

5 ‘‘(5) Developing new higher education programs 

6 to meet the State’s workforce needs, in consultation 

7 with faculty and staff at in-State public institutions 

8 of higher education, employers, and other relevant 

9 stakeholders. 

10 ‘‘(6) Programs and student support services at 

11 public secondary schools if those programs and serv12 ices directly support an activity described in any of 

13 paragraphs (1) through (5). 

14 ‘‘(7) Other activities as approved by the Sec15 retary to improve the State’s public higher education 

16 system, particularly for low-income and underserved 

17 students. 

18 ‘‘(d) ADMINISTRATION AND OTHER USES.—A State 

19 that receives a grant under this part to establish a State20 Federal partnership may use not more than 1 percent of 

21 the grant funds— 

22 ‘‘(1) to administer the partnership; and 

23 ‘‘(2) for— 


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1 ‘‘(A) higher education research and data 

2 tools, such as those that link education and em3 ployment data systems; 

4 ‘‘(B) forming agreements with other States 

5 participating in the partnership for reciprocal 

6 student eligibility; and 

7 ‘‘(C) developing and implementing systems 

8 to provide early notification to students and 

9 families of their eligibility for financial aid. 

10 ‘‘(e) PROHIBITION ON USE OF FUNDS.—A State that 

11 receives a grant under this part to establish a State-Fed12 eral partnership may not use grant funds for— 

13 ‘‘(1) endowments; or 

14 ‘‘(2) the construction of athletic or commercial 

15 venues. 

16 ‘‘SEC. 499A–6. MAINTAINING NET STATE OPERATING SUP17 PORT FOR HIGHER EDUCATION. 

18 ‘‘(a) IN GENERAL.—A State that receives a grant 

19 under this part to establish a State-Federal partnership 

20 shall maintain net State operating support for a fiscal year 

21 at a level that is not less than the level that is equal to 

22 the average of such net State operating support for the 

23 3 fiscal years preceding such fiscal year. 

24 ‘‘(b) WAIVERS.— 


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1 ‘‘(1) IN GENERAL.—The Secretary may grant a 

2 waiver to a State from the requirement under sub3 section (a) for a fiscal year, if the State dem4 onstrates that— 

5 ‘‘(A) the net State operating support for 

6 such fiscal year as a percentage of total revenue 

7 available to the State that will fund higher edu8 cation for such fiscal year is not less than such 

9 percentage for the previous fiscal year; and 

10 ‘‘(B) unexpected or uncontrollable cir11 cumstances prevent the State from maintaining 

12 such State support. 

13 ‘‘(2) NO REDUCTION FOR SUBSEQUENT FISCAL

14 YEAR.—If the Secretary grants a State a waiver 

15 under paragraph (1) for a fiscal year, a determina16 tion of the required level of net State operating sup17 port for subsequent fiscal years shall exclude the fis18 cal year for which the waiver was granted. 

19 ‘‘SEC. 499A–7. OVERSIGHT. 

20 ‘‘(a) IN GENERAL.—If a State that receives a grant 

21 under this part to establish a State-Federal partnership 

22 breaches a term of the partnership, the Partnership Office 

23 shall notify the State and provide the State an opportunity 

24 to correct the record or cure the breach within 30 days 

25 of the notification. 


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1 ‘‘(b) RECOMMENDATION.—Based on the State’s re2 sponse to a notification under subsection (a), the Partner3 ship Office shall recommend that the Secretary— 

4 ‘‘(1) take no action; 

5 ‘‘(2) place the State on probation; or 

6 ‘‘(3) deem the State ineligible to continue to 

7 participate in the partnership. 

8 ‘‘(c) IMPLEMENTATION.— 

9 ‘‘(1) IN GENERAL.—Except as provided in para10 graph (2), the Secretary shall implement the rec11 ommendation of the Partnership Office under sub12 section (b). 

13 ‘‘(2) EXCEPTION.— 

14 ‘‘(A) IN GENERAL.—Subject to subpara15 graph (B), the Secretary may choose not to im16 plement the recommendation of the Partnership 

17 Office under subsection (b). 

18 ‘‘(B) REASONS AND REPORT.—If the Sec19 retary chooses not to implement the rec20 ommendation of the Partnership Office under 

21 subsection (b), the Secretary shall— 

22 ‘‘(i) provide an explanation for such 

23 decision; and 

24 ‘‘(ii) notify the relevant committees of 

25 Congress in a report. 


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1 ‘‘(d) PROBATION.— 

2 ‘‘(1) IN GENERAL.—If a State is placed on pro3 bation by the Secretary due to a breach of a term 

4 of the partnership, the State shall develop a plan to 

5 remedy the breach. 

6 ‘‘(2) WITHHOLDING.—With respect to a State 

7 that is placed on probation by the Secretary due to 

8 a breach of a term of the partnership, the Secretary 

9 shall withhold half of the State’s partnership grant 

10 award until the breach has been remedied or the 

11 State has demonstrated credible progress towards 

12 remedying the breach. 

13 ‘‘(e) INELIGIBILITY.— 

14 ‘‘(1) IN GENERAL.—If a State is deemed ineli15 gible to continue to participate in a partnership due 

16 to a breach of a term of the partnership, the State 

17 shall not receive its partnership grant award for the 

18 subsequent year. 

19 ‘‘(2) REMAINING INELIGIBLE.—A State that is 

20 deemed ineligible to continue to participate in a 

21 partnership due to a breach of a term of the part22 nership, shall remain ineligible for participation until 

23 the State has demonstrated that the State meets the 

24 partnership’s requirements. 


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1 ‘‘SEC. 499A–8. STATE WITHDRAWAL OR INELIGIBILITY. 

2 ‘‘(a) IN GENERAL.—If a State that receives a grant 

3 under this part to establish a State-Federal partnership 

4 intends to withdraw from the partnership or becomes ineli5 gible to continue participation under this part, the State 

6 shall comply with the requirements of this section, includ7 ing, if the State intends to withdraw, notifying the Sec8 retary and the Partnership Office 60 days prior to the 

9 withdrawal. 

10 ‘‘(b) CONTINUED COVERAGE.— 

11 ‘‘(1) IN GENERAL.—Any unexpended balance 

12 from a State-Federal partnership grant award that 

13 remains after a State notifies the Partnership Office 

14 of the State intention to withdraw from the partner15 ship or becomes ineligible to continue participation 

16 under this part shall be placed into an escrow ac17 count at the Department and used solely to provide 

18 need-based grant aid to an eligible student who has 

19 received a Federal Pell Grant under subpart 1 of 

20 part A and who was enrolled before the State noti21 fied the Partnership Office of the State’s intention 

22 to withdraw from the partnership or the State be23 came ineligible. 

24 ‘‘(2) COVERAGE UNTIL STUDENTS FINISH PRO25 GRAM.— 


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1 ‘‘(A) IN GENERAL.—A State that with2 draws from a State-Federal partnership or be3 comes ineligible to continue participation under 

4 this part shall continue to cover the unmet need 

5 for each eligible student who received a Federal 

6 Pell Grant under subpart 1 of part A and who 

7 was enrolled before the State notified the Part8 nership Office of the State’s intention to with9 draw from the partnership or became ineligible 

10 until each such student completes the student’s 

11 program of study at the institution or until the 

12 allotted time for completion of such program of 

13 study expires. 

14 ‘‘(B) PRIORITY.—In carrying out subpara15 graph (A), a State shall prioritize funding 

16 based on students’ financial need. 

17 ‘‘(3) COMMUNICATION OF INFORMATION.—A 

18 State that withdraws from a State-Federal partner19 ship or becomes ineligible to continue participation 

20 under this part shall communicate its withdrawal or 

21 ineligibility, as appropriate, to students and families 

22 in the State and provide clear information to eligible 

23 students described in paragraph (2)(A) that the stu24 dents may continue to have their cost of attendance 


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1 at an in-State public institution of higher education 

2 covered. 

3 ‘‘SEC. 499A–9. AUTHORIZATION OF APPROPRIATIONS. 

4 ‘‘(a) IN GENERAL.—There are authorized to be ap5 propriated to carry out this part— 

6 ‘‘(1) $81,000,000,000 for fiscal year 2018; and 

7 ‘‘(2) such sums as may be necessary for each 

8 fiscal years 2019 through 2028. 

9 ‘‘(b) AVAILABILITY.—Funds made available under 

10 subsection (a) shall be available for obligation through 

11 September 30 of the fiscal year succeeding the fiscal year 

12 for which such sums were appropriated.’’. 

13 SEC. 3. DEBT-FREE COLLEGE GRANT PROGRAM FOR HBCUS 

14 AND MSIS. 

15 Part F of title III of the Higher Education Act of 

16 1965 (20 U.S.C. 1067q et seq.) is amended by adding at 

17 the end the following: 

18 ‘‘SEC. 372. DEBT-FREE COLLEGE GRANT PROGRAM FOR 

19 HBCUS AND MSIS. 

20 ‘‘(a) DEFINITION OF ELIGIBLE INSTITUTION.— 

21 ‘‘(1) IN GENERAL.—In this section, except as 

22 provided in paragraph (2), the term ‘eligible institu23 tion’ means an institution of higher education that 

24 is— 


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1 ‘‘(A) a private, nonprofit 2-year or 4-year 

2 part B institution (as defined in section 322); 

3 ‘‘(B) a Tribal College or University (as de4 fined in section 316); or 

5 ‘‘(C) a private, nonprofit 2-year or 4-year 

6 institution— 

7 ‘‘(i) that is— 

8 ‘‘(I) a Hispanic-serving institu9 tion (as defined in section 502); 

10 ‘‘(II) an Alaska Native-serving 

11 institution (as defined in section 

12 317(b)); 

13 ‘‘(III) a Native Hawaiian-serving 

14 institution (as defined in section 

15 317(b)); 

16 ‘‘(IV) a Predominantly Black In17 stitution (as defined in section 318); 

18 ‘‘(V) an Asian American and Na19 tive American Pacific Islander-serving 

20 institution (as defined in section 

21 320(b)); or 

22 ‘‘(VI) a Native American-serving, 

23 nontribal institution (as defined in 

24 section 319); and 


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1 ‘‘(ii) in which not less than 35 percent 

2 of the students enrolled at the institution 

3 are eligible to receive a Federal Pell Grant. 

4 ‘‘(2) FOR-PROFIT INSTITUTION THAT CON5 VERTED TO A NONPROFIT INSTITUTION.—Notwith6 standing paragraph (1), an institution of higher edu7 cation is not an eligible institution if the institution 

8 was a for-profit institution of higher education that 

9 converted to a nonprofit institution of higher edu10 cation and less than 25 years have passed since the 

11 date of such conversion. 

12 ‘‘(b) GRANT PROGRAM AUTHORIZED.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall award 

14 grants to eligible institutions to enable the institu15 tions to provide need-based financial aid to cover 

16 unmet need for students enrolled at the institutions. 

17 ‘‘(2) DURATION.—Grants awarded under this 

18 section shall be for a period of 5 years. 

19 ‘‘(c) APPLICATION.—An eligible institution that de20 sires a grant under this section shall submit an application 

21 to the Secretary at such time, in such manner, and accom22 panied by such information as the Secretary may require, 

23 including a plan detailing how— 


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1 ‘‘(1) the eligible institution will use grant funds 

2 to provide debt-free college to the students enrolled 

3 at the institution; and 

4 ‘‘(2) the institution plans to meet the require5 ments of the grant program. 

6 ‘‘(d) AWARDING OF GRANTS.— 

7 ‘‘(1) IN GENERAL.— 

8 ‘‘(A) IN GENERAL.—A grant amount 

9 awarded to an eligible institution under this 

10 section for a year— 

11 ‘‘(i) shall be in an amount equal to 

12 the amount of the institution’s expendi13 tures on student undergraduate instruction 

14 and academic support for the year; and 

15 ‘‘(ii) shall not be disbursed for the 

16 year until the Partnership Office created 

17 under section 499A–4(a) reviews and ap18 proves the annual update submitted by the 

19 institution pursuant to subsection (f). 

20 ‘‘(B) RATABLE REDUCTION.—If the 

21 amount appropriated to carry out this section 

22 for a fiscal year is insufficient to award each el23 igible institution the institution’s full grant 

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1 ducing each institution’s award amount for 

2 such fiscal year. 

3 ‘‘(2) WAIVERS.— 

4 ‘‘(A) IN GENERAL.—Subject to subpara5 graph (B), if the percentage of students eligible 

6 to receive a Federal Pell Grant who are enrolled 

7 at an eligible institution that receives a grant 

8 under this section decreases to less than 35 per9 cent after the first year of the grant award, 

10 such institution may apply to the Secretary for 

11 a waiver of the requirement that an institution 

12 to be eligible to receive a grant under this sec13 tion have not less than 35 percent of the stu14 dents enrolled at the institution eligible to re15 ceive a Federal Pell Grant. 

16 ‘‘(B) RESTRICTIONS ON WAIVER.—The 

17 Secretary shall grant a waiver under subpara18 graph (A)— 

19 ‘‘(i) only if the decrease in percentage 

20 is— 

21 ‘‘(I) small relative to the size of 

22 the student body; or 

23 ‘‘(II) the result of unexpected or 

24 uncontrollable circumstances; and 


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1 ‘‘(ii) not more than 2 times during the 

2 5-year grant period. 

3 ‘‘(e) USE OF GRANT FUNDS.— 

4 ‘‘(1) IN GENERAL.—An eligible institution that 

5 receives a grant under this section shall use the 

6 grant funds as follows: 

7 ‘‘(A) 95 percent of the grant funds shall 

8 be— 

9 ‘‘(i) used to cover the unmet need for 

10 financial assistance to attend the institu11 tion of students who have not yet earned 

12 a bachelor’s degree; and 

13 ‘‘(ii) disbursed according to financial 

14 need. 

15 ‘‘(B) 5 percent of the grant funds shall be 

16 used for the following activities: 

17 ‘‘(i) Increasing capacity through con18 struction or renovation of facilities. 

19 ‘‘(ii) Hiring faculty. 

20 ‘‘(iii) Student support services. 

21 ‘‘(iv) Other activities to increase en22 rollment of low-income and underserved 

23 students, improve student outcomes, and 

24 provide information to prospective students 

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1 proved by the Secretary to improve access, 

2 affordability, or quality of the education 

3 provided by the institution. 

4 ‘‘(2) PROHIBITION ON USE OF FUNDS.—An eli5 gible institution that receives a grant under this sec6 tion may not use grant funds for endowments or the 

7 construction of athletic or commercial venues. 

8 ‘‘(f) ANNUAL UPDATE.—An eligible institution that 

9 receives a grant under this section shall submit to the Sec10 retary an annual update— 

11 ‘‘(1) with any changes to the institution’s ex12 penditures on student instruction and academic sup13 port; and 

14 ‘‘(2) on how the institution is fulfilling the 

15 terms of the grant. 

16 ‘‘(g) TERMS OF THE GRANT.— 

17 ‘‘(1) GRANTEE COMMITMENT.—An eligible in18 stitution that receives a grant under this section 

19 shall carry out the following: 

20 ‘‘(A) Cap tuition and fees at the institution 

21 at the level as of the date of enactment of the 

22 Debt-Free College Act, with a yearly increase 

23 allowed based on the Consumer Price Index (as 

24 determined by the Secretary). 


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1 ‘‘(B) Maintain expenditures on instruction 

2 and academic support at the institution at a 

3 level that is not less than the average of such 

4 expenditures at the institution over the period 

5 of 3 years preceding the date of enactment of 

6 the Debt-Free College Act. 

7 ‘‘(C) Maintain the enrollment of low-in8 come students, as defined by the Secretary, at 

9 the institution at a level that is not less than 

10 the level of such enrollment as of the date of 

11 enactment of the Debt-Free College Act. 

12 ‘‘(D) Maintain institutional aid at a level 

13 that is not less than the average of such aid 

14 over the period of 3 years preceding the date of 

15 enactment of the Debt-Free College Act. 

16 ‘‘(E) Submit to the Secretary for approval 

17 the institution’s calculation of the cost of at18 tendance at such institution. 

19 ‘‘(F) Clearly communicate to prospective 

20 students and their families the following: 

21 ‘‘(i) How students can attend the in22 stitution without debt. 

23 ‘‘(ii) That a debt-free college edu24 cation provided pursuant to this section is 

25 conditioned upon institutional eligibility 


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1 and participation under this section and 

2 may not apply for each year that the stu3 dent is enrolled at the institution. 

4 ‘‘(2) BREACH OF TERMS OF GRANT.— 

5 ‘‘(A) IN GENERAL.—If an eligible institu6 tion that receives a grant under this section 

7 breaches a term of the grant, the Partnership 

8 Office created under section 499A–4(a) shall 

9 notify the institution and provide the institution 

10 with an opportunity to correct the record or 

11 cure the breach not later than 30 days after the 

12 date of the notification. 

13 ‘‘(B) RECOMMENDATION.—The Partner14 ship Office created under section 499A–4(a) 

15 shall, after considering the eligible institution’s 

16 response to a notification under subparagraph 

17 (A) or lack of response, make a recommenda18 tion to the Secretary that the Secretary— 

19 ‘‘(i) take no action with respect to the 

20 eligible institution; 

21 ‘‘(ii) place the eligible institution on 

22 probation; or 

23 ‘‘(iii) revoke the eligible institution’s 

24 eligibility for the grant program under this 

25 section. 


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1 ‘‘(C) PROBATION.—An eligible institution 

2 that is placed on probation by the Secretary 

3 shall develop a plan to remedy the breach of the 

4 term of the grant. If the eligible institution does 

5 not remedy the breach, the Secretary may levy 

6 a fine against the institution of an amount not 

7 to exceed 1 percent of the annual grant 

8 amount. 

9 ‘‘(D) INELIGIBILITY.—If an eligible insti10 tution’s eligibility for the grant program under 

11 this section has been revoked by the Secretary, 

12 such institution shall— 

13 ‘‘(i) place into escrow any unexpended 

14 grant funds described in subsection 

15 (e)(1)(A) to be disbursed directly to stu16 dents enrolled at the institution; 

17 ‘‘(ii) return to the Secretary any un18 expended funds described in subsection 

19 (e)(1)(B); 

20 ‘‘(iii) remain ineligible to receive a 

21 grant under this section during the 3-year 

22 period after the date eligibility was re23 voked; and 

24 ‘‘(iv) notify prospective and enrolled 

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1 lies of such ineligibility for participation in 

2 the grant program under this section. 

3 ‘‘(h) WITHDRAWAL.—An eligible institution that re4 ceives a grant under this section that intends to withdraw 

5 from the grant program under this section shall— 

6 ‘‘(1) notify the Partnership Office created 

7 under section 499A–4(a) not less than 60 days prior 

8 to the withdrawal; 

9 ‘‘(2) place into escrow any unexpended grant 

10 funds to be disbursed directly to students enrolled at 

11 the institution; and 

12 ‘‘(3) notify prospective and enrolled students at 

13 the institution and their families of such withdrawal. 

14 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— 

15 ‘‘(1) IN GENERAL.—There are authorized to be 

16 appropriated to carry out this section— 

17 ‘‘(A) $3,000,000,000 for fiscal year 2018; 

18 and 

19 ‘‘(B) such sums as may be necessary for 

20 each fiscal years 2019 through 2028. 

21 ‘‘(2) AVAILABILITY.—Funds made available 

22 under paragraph (1) shall be available for obligation 

23 through September 30 of the fiscal year succeeding 

24 the fiscal year for which such sums were appro25 priated.’’. 


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1 SEC. 4. TITLE IV ELIGIBILITY FOR DREAMER STUDENTS. 

2 Section 484 of the Higher Education Act of 1965 (20 

3 U.S.C. 1091) is amended— 

4 (1) in subsection (a)(5), by inserting ‘‘, or be a 

5 Dreamer student, as defined in subsection (u)’’ after 

6 ‘‘becoming a citizen or permanent resident’’; and 

7 (2) by adding at the end the following: 

8 ‘‘(u) DREAMER STUDENTS.— 

9 ‘‘(1) IN GENERAL.—In this section, the term 

10 ‘Dreamer student’ means an individual who— 

11 ‘‘(A) was younger than 16 years of age on 

12 the date on which the individual initially en13 tered the United States; 

14 ‘‘(B) has provided a list of each secondary 

15 school that the student attended in the United 

16 States; and 

17 ‘‘(C)(i) has earned a high school diploma, 

18 the recognized equivalent of such diploma from 

19 a secondary school, or a high school equivalency 

20 diploma in the United States or is scheduled to 

21 complete the requirements for such a diploma 

22 or equivalent before the next academic year be23 gins; 

24 ‘‘(ii) has acquired a degree from an institu25 tion of higher education or has completed not 

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1 laureate degree or higher degree at an institu2 tion of higher education in the United States 

3 and has made satisfactory academic progress, 

4 as defined in subsection (c), during such time 

5 period; 

6 ‘‘(iii) at any time was eligible for a grant 

7 of deferred action under— 

8 ‘‘(I) the June 15, 2012, memorandum 

9 from the Secretary of Homeland Security 

10 entitled ‘Exercising Prosecutorial Discre11 tion with Respect to Individuals Who 

12 Came to the United States as Children’; or 

13 ‘‘(II) the November 20, 2014, memo14 randum from the Secretary of Homeland 

15 Security entitled ‘Exercising Prosecutorial 

16 Discretion with Respect to Individuals 

17 Who Came to the United States as Chil18 dren and with Respect to Certain Individ19 uals Who Are the Parents of U.S. Citizens 

20 or Permanent Residents’; or 

21 ‘‘(iv) has served in the uniformed services, 

22 as defined in section 101 of title 10, United 

23 States Code, for not less than 4 years and, if 

24 discharged, received an honorable discharge. 


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1 ‘‘(2) HARDSHIP EXCEPTION.—The Secretary 

2 shall issue regulations that direct when the Depart3 ment shall waive the requirement of subparagraph 

4 (A) or (B), or both, of paragraph (1) for an indi5 vidual to qualify as a Dreamer student under such 

6 paragraph, if the individual— 

7 ‘‘(A) demonstrates compelling circum8 stances for the inability to satisfy the require9 ment of such subparagraph (A) or (B), or both; 

10 and 

11 ‘‘(B) satisfies the requirement of para12 graph (1)(C).’’. 

13 SEC. 5. REPEAL OF SUSPENSION OF ELIGIBILITY UNDER 

14 THE HIGHER EDUCATION ACT OF 1965 FOR 

15 GRANTS, LOANS, AND WORK ASSISTANCE FOR 

16 DRUG-RELATED OFFENSES. 

17 (a) REPEAL.—Subsection (r) of section 484 of the 

18 Higher Education Act of 1965 (20 U.S.C. 1091(r)) is re19 pealed. 

20 (b) REVISION OF FAFSA FORM.—Section 483 of the 

21 Higher Education Act of 1965 (20 U.S.C. 1090) is 

22 amended by adding at the end the following: 

23 ‘‘(i) CONVICTIONS.—The Secretary shall not include 

24 any question about the conviction of an applicant for the 


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1 possession or sale of illegal drugs on the FAFSA (or any 

2 other form developed under subsection (a)).’’. 

3 (c) CONFORMING AMENDMENTS.—The Higher Edu4 cation Act of 1965 (20 U.S.C. 1001 et seq.) is amended— 

5 (1) in section 428(b)(3) (20 U.S.C. 

6 1078(b)(3))— 

7 (A) in subparagraph (C), by striking 

8 ‘‘485(l)’’ and inserting ‘‘485(k)’’; and 

9 (B) in subparagraph (D), by striking 

10 ‘‘485(l)’’ and inserting ‘‘485(k)’’; 

11 (2) in section 435(d)(5) (20 U.S.C. 

12 1085(d)(5))— 

13 (A) in subparagraph (E), by striking 

14 ‘‘485(l)’’ and inserting ‘‘485(k)’’; and 

15 (B) in subparagraph (F), by striking 

16 ‘‘485(l)’’ and inserting ‘‘485(k)’’; 

17 (3) in section 484 (20 U.S.C. 1091), as amend18 ed by section 6, by redesignating subsections (s),(t), 

19 and (u) as subsections (r), (s), and (t), respectively; 

20 (4) in section 485 (20 U.S.C. 1092)— 

21 (A) by striking subsection (k); and 

22 (B) by redesignating subsections (l) and 

23 (m) as subsections (k) and (l), respectively; and 


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1 (5) in section 487(e)(2)(B)(ii)(IV) (20 U.S.C. 

2 1094(e)(2)(B)(ii)(IV)), by striking ‘‘(l) of section 

3 485’’ and inserting ‘‘(k) of section 485’’. 

Æ 


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