II 

113TH CONGRESS 

2D SESSION S. 2194 

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

IN THE SENATE OF THE UNITED STATES 

APRIL 1, 2014 

Ms. HIRONO (for herself, Mr. REED, and Mr. WHITEHOUSE) introduced the 

following bill; which was read twice and referred to the Committee on 

Health, Education, Labor, and Pensions 

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 

9 in higher education, in order to strengthen the economy 

10 of the United States by improving opportunities for lowVerDate Mar 15 2010 03:10 Apr 02, 2014 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2194.IS S2194

jbell on DSK7SPTVN1PROD with BILLS
2 

•S 2194 IS

1 income students to complete higher education and join the 

2 middle class. 

3 SEC. 3. FINDINGS. 

4 Congress finds the following: 

5 (1) Federal Pell Grants provided under section 

6 401 of the Higher Education Act of 1965 (20 

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

8 Pell Grants’’) have historically been the fundamental 

9 Federal investment in helping low-income students 

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

11 1979–1980 academic year, the maximum Federal 

12 Pell Grant paid for 77 percent of the average cost 

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

14 higher education. However, in the 2012–2013 aca15 demic year, the maximum Federal Pell Grant cov16 ered only about 30 percent of that average cost of 

17 attendance. 

18 (2) The program providing Federal Pell Grants 

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

20 mandatory funding and discretionary funding com21 bine to maintain a maximum Federal Pell Grant 

22 amount. 

23 (3) The Congressional Budget Office reports on 

24 any overall financial surplus or shortfall in the fund25 ing provided for the Federal Pell Grant program. 


jbell on DSK7SPTVN1PROD with BILLS
3 

•S 2194 IS

1 However, in recent years, in order to meet the max2 imum Federal Pell Grant level with the provided 

3 level of funding, Congress has made cuts to the pro4 gram through imposing additional eligibility require5 ments for Federal Pell Grants and limiting the avail6 ability of year-round Federal Pell Grants, causing 

7 significant uncertainty and reducing access to higher 

8 education for millions of hardworking college stu9 dents. 

10 (4) Removing the Federal Pell Grant program 

11 from the uncertainty of the congressional discre12 tionary appropriations process will improve student 

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

14 (5) The ‘‘traditional student’’ who attends col15 lege for 4 years immediately after high school is now 

16 a minority of college students today. Ambitious stu17 dents now need more flexibility to attend school 

18 year-round while juggling work schedules. 

19 (6) Section 1860 of the Department of Defense 

20 and Full-Year Continuing Appropriations Act, 2011 

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

22 provision of the Federal Pell Grant program of the 

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

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

25 year, creating significant hardship for many stuVerDate Mar 15 2010 03:10 Apr 02, 2014 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2194.IS S2194

jbell on DSK7SPTVN1PROD with BILLS
4 

•S 2194 IS

1 dents trying to take courses over the summer or out2 side the traditional school calendar. Allowing stu3 dents to continue to receive Federal Pell Grants in 

4 successive semesters, without a gap, would reduce 

5 the time needed to complete their degrees. 

6 SEC. 4. CONVERTING THE TRADITIONAL FEDERAL PELL 

7 GRANT PROGRAM TO A MANDATORY SPEND8 ING PROGRAM. 

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

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

11 is amended— 

12 (1) in paragraph (2)— 

13 (A) in subparagraph (A)— 

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

15 inserting the following: 

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

17 $5,730; or 

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

19 each subsequent award year, the amount 

20 of the maximum Federal Pell Grant deter21 mined under this clause for the imme22 diately preceding award year, increased by 

23 a percentage equal to the estimated per24 centage increase, if any, in the Consumer 

25 Price Index (as determined by the SecVerDate Mar 15 2010 03:10 Apr 02, 2014 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2194.IS S2194

jbell on DSK7SPTVN1PROD with BILLS
5 

•S 2194 IS

1 retary, using the definition in section 

2 478(f)) for the most recent calendar year 

3 ending prior to the beginning of that 

4 award year; plus 

5 ‘‘(ii) any additional amount specified 

6 for the maximum Federal Pell Grant in 

7 the last enacted appropriation Act applica8 ble to that award year, less’’; and 

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

10 ‘‘(C)(i) For fiscal year 2015 and each succeeding fis11 cal year, there are appropriated, out of any money in the 

12 Treasury not otherwise appropriated, such sums as may 

13 be necessary to provide, in combination with any amounts 

14 separately appropriated under subparagraph (A)(ii), Fed15 eral Pell Grants under this section in the amount specified 

16 in subparagraph (A) to all eligible students. 

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

18 any fiscal year shall be available beginning on October 1 

19 of that fiscal year, and shall remain available through Sep20 tember 30 of the succeeding fiscal year.’’; and 

21 (2) by striking paragraph (7). 

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

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

24 Grants awarded under section 401 of the Higher EduVerDate Mar 15 2010 03:10 Apr 02, 2014 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2194.IS S2194

jbell on DSK7SPTVN1PROD with BILLS
6 

•S 2194 IS

1 cation Act of 1965 (20 U.S.C. 1070a) for award year 

2 2014–2015 and each succeeding award year. 

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

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

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

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

7 following: 

8 ‘‘(7) YEAR-ROUND FEDERAL PELL GRANT STU9 DENTS.— 

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

11 provision of this subsection, the Secretary shall 

12 award, to an eligible student who has received a 

13 Federal Pell Grant for an award year and is enrolled 

14 in a program of study for 1 or more additional pay15 ment periods during the same award year that are 

16 not otherwise covered by the student’s Federal Pell 

17 Grant, an additional Federal Pell Grant for the ad18 ditional payment periods. 

19 ‘‘(B) AMOUNTS.—In the case of a student re20 ceiving more than one Federal Pell Grant in a single 

21 award year under subparagraph (A), the total 

22 amount of the Federal Pell Grants awarded to such 

23 student for the award year may exceed the total 

24 maximum Federal Pell Grant for such award year, 


jbell on DSK7SPTVN1PROD with BILLS
7 

•S 2194 IS

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

2 (2)(A). 

3 ‘‘(C) INCLUSION IN DURATION LIMIT.—Any pe4 riod of study covered by a Federal Pell Grant 

5 awarded under subparagraph (A) shall be included 

6 in determining a student’s duration limit under sub7 section (c)(5). 

8 ‘‘(8) CROSSOVER PERIOD.—In any case where an eli9 gible student is receiving a Federal Pell Grant for a pay10 ment period that spans 2 award years, the Secretary shall 

11 allow the eligible institution in which the student is en12 rolled to determine the award year to which the additional 

13 period shall be assigned.’’. 

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

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

Æ 


jbell on DSK7SPTVN1PROD with BILLS