IB 

Union Calendar No. 129 

111TH CONGRESS 

1ST SESSION H. R. 3221 

[Report No. 111–232] 

To amend the Higher Education Act of 1965, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 15, 2009 

Mr. GEORGE MILLER of California (for himself, Mr. HINOJOSA, Mr. BISHOP

of New York, Mr. PAYNE, Mr. HOLT, Mr. COURTNEY, Ms. HIRONO, Mr. 

ANDREWS, Mr. KILDEE, Ms. SHEA-PORTER, Mr. GRIJALVA, Mr. 

LOEBSACK, Ms. FUDGE, Mr. SCOTT of Virginia, Ms. ESHOO, Mr. 

TIERNEY, Mr. SABLAN, Mr. WU, Mr. KUCINICH, Mr. HARE, Mr. SESTAK, 

Ms. WOOLSEY, and Mrs. DAVIS of California) introduced the following 

bill; which was referred to the Committee on Education and Labor 

JULY 27, 2009 

Additional sponsors: Ms. CLARKE, Mr. PIERLUISI, Mr. BERMAN, Mr. 

BLUMENAUER, Ms. BORDALLO, Mr. TONKO, Mrs. MCCARTHY of New 

York, Ms. CASTOR of Florida, Mr. HONDA, Ms. CHU, Mr. HALL of New 

York, Mr. DINGELL, Mr. LEVIN, Mr. PASCRELL, Mr. WEXLER, Mr. 

ABERCROMBIE, Mr. SIRES, Mr. TOWNS, and Mr. SHERMAN

JULY 27, 2009 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on July 15, 2009] 

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A BILL 

To amend the Higher Education Act of 1965, and for other 

purposes. 

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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 ‘‘Student Aid and Fiscal 

5 Responsibility Act of 2009’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. References. 

TITLE I—INVESTING IN STUDENTS AND FAMILIES 

Subtitle A—Increasing College Access and Completion 

Sec. 101. Federal Pell Grants. 

Sec. 102. College Access and Completion Innovation Fund. 

Sec. 103. Investment in historically Black colleges and universities and other minority-serving institutions. 

Sec. 104. Investment in cooperative education. 

Sec. 105. Loan forgiveness for servicemembers activated for duty. 

Sec. 106. Veterans Educational Equity Supplemental Grant Program. 

Subtitle B—Student Financial Aid Form Simplification 

Sec. 121. General effective date. 

Sec. 122. Treatment of assets in need analysis. 

Sec. 123. Changes to total income; aid eligibility. 

TITLE II—STUDENT LOAN REFORM 

Subtitle A—Stafford Loan Reform 

Sec. 201. Federal Family Education Loan appropriations. 

Sec. 202. Scope and duration of Federal loan insurance program. 

Sec. 203. Applicable interest rates. 

Sec. 204. Federal payments to reduce student interest costs. 

Sec. 205. Federal PLUS Loans. 

Sec. 206. Federal Consolidation Loan. 

Sec. 207. Unsubsidized Stafford loans for middle-income borrowers. 

Sec. 208. Loan repayment for civil legal assistance attorneys. 

Sec. 209. Special allowances. 

Sec. 210. Revised special allowance calculation. 

Sec. 211. Origination of Direct Loans at institutions located outside the United 

States. 

Sec. 212. Agreements with institutions. 

Sec. 213. Terms and conditions of loans. 

Sec. 214. Contracts. 

Sec. 215. Interest rates. 

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Subtitle B—Perkins Loan Reform 

Sec. 221. Federal Direct Perkins Loans terms and conditions. 

Sec. 222. Authorization of appropriations. 

Sec. 223. Allocation of funds. 

Sec. 224. Federal Direct Perkins Loan allocation. 

Sec. 225. Agreements with institutions of higher education. 

Sec. 226. Student loan information by eligible institutions. 

Sec. 227. Terms of loans. 

Sec. 228. Distribution of assets from student loan funds. 

Sec. 229. Implementation of non-title IV revenue requirement. 

Sec. 230. Administrative expenses. 

TITLE III—MODERNIZATION, RENOVATION, AND REPAIR 

Subtitle A—Elementary and Secondary Education 

Sec. 301. Definitions. 

CHAPTER 1—GRANTS FOR MODERNIZATION, RENOVATION, OR REPAIR OF

PUBLIC SCHOOL FACILITIES

Sec. 311. Purpose. 

Sec. 312. Allocation of funds. 

Sec. 313. Allowable uses of funds. 

Sec. 314. Priority projects. 

CHAPTER 2—SUPPLEMENTAL GRANTS FOR LOUISIANA, MISSISSIPPI, AND

ALABAMA

Sec. 321. Purpose. 

Sec. 322. Allocation to local educational agencies. 

Sec. 323. Allowable uses of funds. 

CHAPTER 3—GENERAL PROVISIONS

Sec. 331. Impermissible uses of funds. 

Sec. 332. Supplement, not supplant. 

Sec. 333. Prohibition regarding State aid. 

Sec. 334. Maintenance of effort. 

Sec. 335. Special rule on contracting. 

Sec. 336. Use of American iron, steel, and manufactured goods. 

Sec. 337. Labor standards. 

Sec. 338. Charter schools. 

Sec. 339. Green schools. 

Sec. 340. Reporting. 

Sec. 341. Special rules. 

Sec. 342. Promotion of employment experiences. 

Sec. 343. Advisory Council on Green, High-Performing Public School Facilities. 

Sec. 344. Education regarding projects. 

Sec. 345. Availability of funds. 

Subtitle B—Higher Education 

Sec. 351. Federal assistance for community college modernization and construction. 

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TITLE IV—EARLY LEARNING CHALLENGE FUND 

Sec. 401. Purpose. 

Sec. 402. Programs authorized. 

Sec. 403. Quality pathways grants. 

Sec. 404. Development grants. 

Sec. 405. Research and evaluation. 

Sec. 406. Reporting requirements. 

Sec. 407. Construction. 

Sec. 408. Definitions. 

Sec. 409. Availability of funds. 

TITLE V—AMERICAN GRADUATION INITIATIVE 

Sec. 501. Authorization and appropriation. 

Sec. 502. Definitions; grant priority. 

Sec. 503. Grants to eligible entities for community college reform. 

Sec. 504. Grants to eligible States for community college programs. 

Sec. 505. National activities. 

1 SEC. 3. REFERENCES. 

2 Except as otherwise expressly provided, whenever in 

3 this Act an amendment or repeal is expressed in terms of 

4 an amendment to, or repeal of, a section or other provision, 

5 the reference shall be considered to be made to a section or 

6 other provision of the Higher Education Act of 1965 (20 

7 U.S.C. 1001 et seq.). 

8 TITLE I—INVESTING IN 

9 STUDENTS AND FAMILIES 

10 Subtitle A—Increasing College 

11 Access and Completion 

12 SEC. 101. FEDERAL PELL GRANTS. 

13 (a) AMOUNT OF GRANTS.—Section 401(b) (20 U.S.C. 

14 1070a(b)) is amended— 

15 (1) by amending paragraph (2)(A) to read as 

16 follows: 

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1 ‘‘(A) The amount of the Federal Pell Grant 

2 for a student eligible under this part shall be— 

3 ‘‘(i) the maximum Federal Pell Grant, 

4 as specified in the last enacted appropria5 tion Act applicable to that award year, plus 

6 ‘‘(ii) the amount of the increase cal7 culated under paragraph (8)(B) for that 

8 year, less 

9 ‘‘(iii) an amount equal to the amount 

10 determined to be the expected family con11 tribution with respect to that student for 

12 that year.’’; and 

13 (2) by amending paragraph (8), as amended by 

14 the Higher Education Opportunity Act (Public Law 

15 110–315), to read as follows: 

16 ‘‘(8) ADDITIONAL FUNDS.— 

17 ‘‘(A) IN GENERAL.—There are authorized to 

18 be appropriated, and there are appropriated, to 

19 carry out subparagraph (B) of this paragraph 

20 (in addition to any other amounts appropriated 

21 to carry out this section and out of any money 

22 in the Treasury not otherwise appropriated) the 

23 following amounts— 

24 ‘‘(i) $2,030,000,000 for fiscal year 

25 2008; 

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1 ‘‘(ii) $2,733,000,000 for fiscal year 

2 2009; and 

3 ‘‘(iii) such sums as may be necessary 

4 for fiscal year 2010 and each subsequent fis5 cal year to provide the amount of increase 

6 of the maximum Federal Pell Grant re7 quired by clauses (ii) and (iii) of subpara8 graph (B). 

9 ‘‘(B) INCREASE IN FEDERAL PELL

10 GRANTS.—The amounts made available pursuant 

11 to subparagraph (A) shall be used to increase the 

12 amount of the maximum Federal Pell Grant for 

13 which a student shall be eligible during an 

14 award year, as specified in the last enacted ap15 propriation Act applicable to that award year, 

16 by— 

17 ‘‘(i) $490 for each of the award years 

18 2008–2009 and 2009–2010; 

19 ‘‘(ii) $690 for the award year 2010– 

20 2011; and 

21 ‘‘(iii) the amount determined under 

22 subparagraph (C) for each succeeding 

23 award year. 

24 ‘‘(C) INFLATION-ADJUSTED AMOUNTS.— 

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1 ‘‘(i) AWARD YEAR 2011–2012.—For 

2 award year 2011–2012, the amount deter3 mined under this subparagraph for pur4 poses of subparagraph (B)(iii) shall be 

5 equal to— 

6 ‘‘(I) $5,550 or the total maximum 

7 Federal Pell Grant for the preceding 

8 award year (as determined under 

9 clause (iv)(II)), whichever is greater, 

10 increased by a percentage equal to the 

11 annual adjustment percentage for 

12 award year 2011–2012; reduced by 

13 ‘‘(II) $4,860 or the maximum 

14 Federal Pell Grant for which a student 

15 was eligible for the preceding award 

16 year, as specified in the last enacted 

17 appropriation Act applicable to that 

18 year, whichever is greater; and 

19 ‘‘(III) rounded to the nearest $5. 

20 ‘‘(ii) SUBSEQUENT AWARD YEARS.— 

21 For award year 2012–2013 and each of the 

22 subsequent award years, the amount deter23 mined under this subparagraph for pur24 poses of subparagraph (B)(iii) shall be 

25 equal to— 

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1 ‘‘(I) the total maximum Federal 

2 Pell Grant for the preceding award 

3 year (as determined under clause 

4 (iv)(II)), increased by a percentage 

5 equal to the annual adjustment per6 centage for the award year for which 

7 the amount under this subparagraph is 

8 being determined; reduced by 

9 ‘‘(II) $4,860 or the maximum 

10 Federal Pell Grant for which a student 

11 was eligible for the preceding award 

12 year, as specified in the last enacted 

13 appropriation Act applicable to that 

14 year, whichever is greater; and 

15 ‘‘(III) rounded to the nearest $5. 

16 ‘‘(iii) LIMITATION ON DECREASES.— 

17 Notwithstanding clauses (i) and (ii), if the 

18 amount determined under clause (i) or (ii) 

19 for an award year is less than the amount 

20 determined under this paragraph for the 

21 preceding award year, the amount deter22 mined under such clause for such award 

23 year shall be the amount determined under 

24 this paragraph for the preceding award 

25 year. 

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1 ‘‘(iv) DEFINITIONS.—For purposes of 

2 this subparagraph— 

3 ‘‘(I) the term ‘annual adjustment 

4 percentage’ as it applies to an award 

5 year is equal to the sum of— 

6 ‘‘(aa) the estimated percent7 age change in the Consumer Price 

8 Index (as determined by the Sec9 retary, using the definition in sec10 tion 478(f)) for the most recent 

11 calendar year ending prior to the 

12 beginning of that award year; and 

13 ‘‘(bb) one percentage point; 

14 and 

15 ‘‘(II) the term ‘total maximum 

16 Federal Pell Grant’ as it applies to a 

17 preceding award year is equal to the 

18 sum of— 

19 ‘‘(aa) the maximum Federal 

20 Pell Grant for which a student is 

21 eligible during an award year, as 

22 specified in the last enacted ap23 propriation Act applicable to that 

24 preceding award year; and 

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1 ‘‘(bb) the amount of the in2 crease in the maximum Federal 

3 Pell Grant required by this para4 graph for that preceding award 

5 year. 

6 ‘‘(D) PROGRAM REQUIREMENTS AND OPER7 ATIONS OTHERWISE UNAFFECTED.—Except as 

8 provided in subparagraphs (B) and (C), nothing 

9 in this paragraph shall be construed to alter the 

10 requirements and operations of the Federal Pell 

11 Grant Program as authorized under this section, 

12 or to authorize the imposition of additional re13 quirements or operations for the determination 

14 and allocation of Federal Pell Grants under this 

15 section. 

16 ‘‘(E) AVAILABILITY OF FUNDS.—The 

17 amounts made available by subparagraph (A) 

18 for any fiscal year shall be available beginning 

19 on October 1 of that fiscal year, and shall re20 main available through September 30 of the suc21 ceeding fiscal year.’’. 

22 (b) CONFORMING AMENDMENTS.—Title IV (20 U.S.C. 

23 1070 et seq.) is further amended— 

24 (1) in section 401(b)(6), as amended by the 

25 Higher Education Opportunity Act (Public Law 110– 

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1 315), by striking ‘‘the grant level specified in the ap2 propriate Appropriation Act for this subpart for such 

3 year’’ and inserting ‘‘the Federal Pell Grant amount, 

4 determined under paragraph (2)(A), for which a stu5 dent is eligible during such award year’’; 

6 (2) in section 402D(d)(1), by striking ‘‘exceed the 

7 maximum appropriated Pell Grant’’ and inserting 

8 ‘‘exceed the Federal Pell Grant amount, determined 

9 under section 401(b)(2)(A), for which a student is eli10 gible’’; 

11 (3) in section 435(a)(5)(A)(i)(I), by striking 

12 ‘‘one-half the maximum Federal Pell Grant award for 

13 which a student would be eligible’’ and inserting 

14 ‘‘one-half the Federal Pell Grant amount, determined 

15 under section 401(b)(2)(A), for which a student would 

16 be eligible’’; 

17 (4) in section 483(e)(3)(ii), by striking ‘‘based on 

18 the maximum Federal Pell Grant award at the time 

19 of application’’ and inserting ‘‘based on the Federal 

20 Pell Grant amount, determined under section 

21 401(b)(2)(A), for which a student is eligible at the 

22 time of application’’; 

23 (5) in section 485E(b)(1)(A), by striking ‘‘of 

24 such students’ potential eligibility for a maximum 

25 Federal Pell Grant under subpart 1 of part A’’ and 

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1 inserting ‘‘of such students’ potential eligibility for 

2 the Federal Pell Grant amount, determined under sec3 tion 401(b)(2)(A), for which the student would be eli4 gible’’; and 

5 (6) in section 894(f)(2)(C)(ii)(I), by striking 

6 ‘‘the maximum Federal Pell Grant for each award 

7 year’’ and inserting ‘‘the Federal Pell Grant amount, 

8 determined under section 401(b)(2)(A), for which a 

9 student may be eligible for each award year’’. 

10 (c) EFFECTIVE DATE.—The amendments made by sub11 sections (a) and (b) of this section shall take effect on July 

12 1, 2010. 

13 SEC. 102. COLLEGE ACCESS AND COMPLETION INNOVATION 

14 FUND. 

15 (a) HEADER.—Part E of title VII (20 U.S.C. 1141 et 

16 seq.) is amended by striking the header of such part and 

17 inserting the following: 

18 ‘‘PART E—COLLEGE ACCESS AND COMPLETION 

19 INNOVATION FUND’’. 

20 (b) PURPOSE.—Part E of title VII (20 U.S.C. 1141 

21 et seq.) is further amended by inserting before section 781 

22 the following: 

23 ‘‘SEC. 780. PURPOSES. 

24 ‘‘The purposes of this part are— 

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1 ‘‘(1) to promote innovation in postsecondary 

2 education practices and policies by institutions of 

3 higher education, States, and nonprofit organizations 

4 to improve student success, completion, and post-com5 pletion employment, particularly for students from 

6 groups that are underrepresented in postsecondary 

7 education; and 

8 ‘‘(2) to assist States in developing longitudinal 

9 data systems, common metrics, and reporting systems 

10 to enhance the quality and availability of informa11 tion about student success, completion, and post-com12 pletion employment.’’. 

13 (c) AUTHORIZATION AND APPROPRIATION.—Section 

14 781(a) (20 U.S.C. 1141(a)) is amended to read as follows: 

15 ‘‘(a) AUTHORIZATION AND APPROPRIATION.— 

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

17 appropriated, and there are appropriated, to carry 

18 out this part (in addition to any other amounts ap19 propriated to carry out this part and out of any 

20 money in the Treasury not otherwise appropriated), 

21 $600,000,000 for each of the fiscal years 2010 through 

22 2014. 

23 ‘‘(2) ALLOCATIONS.—Of the amount appro24 priated for any fiscal year under paragraph (1)— 

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1 ‘‘(A) 25 percent shall be made available to 

2 carry out section 781; 

3 ‘‘(B) 50 percent shall be made available to 

4 carry out section 782; 

5 ‘‘(C) 23 percent shall be made available to 

6 carry out section 783; and 

7 ‘‘(D) 2 percent shall be made available to 

8 carry out section 784.’’. 

9 (d) STATE GRANTS AND GRANTS TO ELIGIBLE ENTI10 TIES.—Part E of title VII (20 U.S.C. 1141 et seq.) is fur11 ther amended by adding at the end the following: 

12 ‘‘SEC. 782. STATE INNOVATION COMPLETION GRANTS. 

13 ‘‘(a) PROGRAM AUTHORIZATION.—From the amount 

14 appropriated under section 781(a)(2)(B) to carry out this 

15 section, the Secretary shall award grants to States on a 

16 competitive basis to promote student persistence in, and 

17 completion of, postsecondary education. 

18 ‘‘(b) FEDERAL SHARE; NON-FEDERAL SHARE.— 

19 ‘‘(1) FEDERAL SHARE.—The amount of the Fed20 eral share under this section for a fiscal year shall be 

equal to 2 21 ⁄3 of the costs of the activities and services 

22 described in subsection (d)(1) that are carried out 

23 under the grant. 

24 ‘‘(2) NON-FEDERAL SHARE.—The amount of the 

25 non-Federal share under this section shall be equal to 

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1 1 ⁄3 of the costs of the activities and services described 

2 in subsection (d)(1). The non-Federal share may be in 

3 cash or in kind, and may be provided from State re4 sources, contributions from private organizations, or 

5 both. 

6 ‘‘(3) SUPPLEMENT, NOT SUPPLANT.—The Federal 

7 and non-Federal shares required by this paragraph 

8 shall be used to supplement, and not supplant, State 

9 and private resources that would otherwise be ex10 pended to carry out activities and services to promote 

11 student persistence in and completion of postsec12 ondary education. 

13 ‘‘(c) APPLICATION AND SELECTION.— 

14 ‘‘(1) APPLICATION REQUIREMENTS.—For each 

15 fiscal year for which a State desires to receive a grant 

16 under this section, the State agency with jurisdiction 

17 over higher education, or another agency designated 

18 by the Governor or chief executive of the State to ad19 minister the grant program under this section, shall 

20 submit an application to the Secretary at such time, 

21 in such manner, and containing such information as 

22 the Secretary may require. Such application shall in23 clude— 

24 ‘‘(A) a description of the State’s capacity to 

25 administer the grant under this section; 

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1 ‘‘(B) a description of the State’s plans for 

2 using the grant funds for activities described in 

3 subsection (d)(1), including plans for how the 

4 State will make special efforts to provide benefits 

5 to students in the State who are from groups 

6 that are underrepresented in postsecondary edu7 cation; 

8 ‘‘(C) a description of how the State will 

9 provide for the non-Federal share from State re10 sources, private contributions, or both; 

11 ‘‘(D) a description of— 

12 ‘‘(i) the administrative system that the 

13 State has in place to administer the activi14 ties and services described in subsection 

15 (d)(1); or 

16 ‘‘(ii) the plan to develop such adminis17 trative system; 

18 ‘‘(E) a description of the data system the 

19 State has or will have in place to measure the 

20 performance and progress toward the State’s 

21 goals included in the Access and Completion 

22 Plan submitted, or that will be submitted, under 

23 paragraph (2)(A); and 

24 ‘‘(F) the assurances under paragraph (2). 

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1 ‘‘(2) STATE ASSURANCES.—The assurances re2 quired in paragraph (1)(F) shall include an assur3 ance of each of the following: 

4 ‘‘(A) That the State will submit, not later 

5 than July 1, 2011, an Access and Completion 

6 Plan to increase the State’s rate of persistence in 

7 and completion of postsecondary education. Such 

8 plan shall include— 

9 ‘‘(i) the State’s annual and long-term 

10 quantifiable goals with respect to— 

11 ‘‘(I) the rates of postsecondary en12 rollment, persistence, and completion, 

13 disaggregated by income, race, eth14 nicity, sex, disability, and age of stu15 dents; 

16 ‘‘(II) closing gaps in enrollment, 

17 persistence, and completion rates for 

18 students from groups that are under19 represented in postsecondary edu20 cation; 

21 ‘‘(III) targeting education and 

22 training programs to address labor 

23 market needs in the State, as such 

24 needs are determined by the State, or 

25 the State in coordination with the 

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1 State public employment service, the 

2 State workforce investment board, or 

3 industry or sector partnerships in the 

4 State; and 

5 ‘‘(IV) improving coordination be6 tween two-year and four-year institu7 tions of higher education in the State, 

8 including supporting comprehensive 

9 articulation agreements between such 

10 institutions; and 

11 ‘‘(ii) the State’s plan to develop an 

12 interoperable statewide longitudinal data 

13 system that— 

14 ‘‘(I) can be linked to other data 

15 systems, as applicable, including ele16 mentary and secondary education and 

17 workforce data systems; 

18 ‘‘(II) will collect, maintain, 

19 disaggregate (by institution, income, 

20 race, ethnicity, sex, disability, and age 

21 of students), and analyze postsec22 ondary education and workforce infor23 mation, including— 

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1 ‘‘(aa) postsecondary edu2 cation enrollment, persistence, 

3 and completion information; 

4 ‘‘(bb) post-completion em5 ployment outcomes of students 

6 who enrolled in postsecondary 

7 programs and training programs 

8 offered by eligible training pro9 viders under the Workforce Invest10 ment Act of 1998 (29 U.S.C. 2801 

11 et seq.); 

12 ‘‘(cc) postsecondary edu13 cation and employment outcomes 

14 of students who move out of the 

15 State; and 

16 ‘‘(dd) postsecondary instruc17 tional workforce information; and 

18 ‘‘(III) makes the information de19 scribed in subclause (I) available to the 

20 general public in a manner that is 

21 transparent and user-friendly. 

22 ‘‘(B) That the State has a comprehensive 

23 planning or policy formulation process with re24 spect to increasing postsecondary enrollment, 

25 persistence, and completion that— 

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1 ‘‘(i) encourages coordination between 

2 the State administration of grants under 

3 this section and similar State programs; 

4 ‘‘(ii) encourages State policies that are 

5 designed to improve rates of enrollment and 

6 persistence in, and completion of, postsec7 ondary education for all categories of insti8 tutions of higher education described in sec9 tion 132(d) in the State; 

10 ‘‘(iii) considers the postsecondary edu11 cation needs of students from groups that 

12 are underrepresented in postsecondary edu13 cation; 

14 ‘‘(iv) considers the resources of public 

15 and private institutions of higher education, 

16 organizations, and agencies within the 

17 State that are capable of providing access to 

18 postsecondary education opportunities with19 in the State; and 

20 ‘‘(v) provides for direct, equitable, and 

21 active participation in the comprehensive 

22 planning or policy formulation process or 

23 processes, through membership on State 

24 planning commissions, State advisory coun25 cils, or other State entities established by 

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1 the State and consistent with State law, by 

2 representatives of— 

3 ‘‘(I) institutions of higher edu4 cation, including at least one member 

5 from a junior or community college (as 

6 defined in section 312(f)); 

7 ‘‘(II) students; 

8 ‘‘(III) other providers of postsec9 ondary education services (including 

10 organizations providing access to such 

11 services); 

12 ‘‘(IV) the general public in the 

13 State; and 

14 ‘‘(V) postsecondary education fac15 ulty members, including at least one 

16 faculty member whose primary respon17 sibilities are teaching and scholarship. 

18 ‘‘(C) That the State will incorporate poli19 cies and practices that, through the activities 

20 funded under this section, are determined to be 

21 effective in improving rates of postsecondary 

22 education enrollment, persistence, and comple23 tion into the future postsecondary education 

24 policies and practices of the State to ensure that 

25 the benefits achieved through the activities fundmstockstill on DSKH9S0YB1PROD with BILLS

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1 ed under this section continue beyond the period 

2 of the grant. 

3 ‘‘(D) That the State will participate in the 

4 evaluation required under section 784. 

5 ‘‘(3) SUBGRANTS TO NONPROFIT ORGANIZA6 TIONS.—A State receiving a payment under this sec7 tion may elect to make a subgrant to one or more 

8 nonprofit organizations in the State, including agen9 cies with agreements with the Secretary under sub10 sections (b) and (c) of section 428 on the date of the 

11 enactment of the Student Aid and Fiscal Responsi12 bility Act of 2009, or a partnership of such organiza13 tions, to carry out activities and services described in 

14 subsection (d)(1), if the nonprofit organization or 

15 partnership— 

16 ‘‘(A) was in existence on the day before the 

17 date of the enactment of the Student Aid and 

18 Fiscal Responsibility Act of 2009; and 

19 ‘‘(B) as of such day, was participating in 

20 activities and services related to promoting per21 sistence in, and completion of, postsecondary 

22 education, such as the activities and services de23 scribed in subsection (d)(1). 

24 ‘‘(4) PRIORITY.—In awarding grants under this 

25 section, the Secretary shall give priority to States 

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1 that enter into a partnership with one of the fol2 lowing entities to carry out the activities and services 

3 described in subsection (d)(1): 

4 ‘‘(A) A philanthropic organization, as such 

5 term is defined in section 781(i)(1). 

6 ‘‘(B) An agency with an agreement with the 

7 Secretary under subsections (b) and (c) of section 

8 428 on the date of the enactment of Student Aid 

9 and Fiscal Responsibility Act of 2009. 

10 ‘‘(d) USES OF FUNDS.— 

11 ‘‘(1) AUTHORIZED USES.—A State receiving a 

12 grant under this section shall use the grant funds 

13 to— 

14 ‘‘(A) provide programs in such State that 

15 increase persistence in, and completion of, post16 secondary education, which may include— 

17 ‘‘(i) assisting institutions of higher 

18 education in providing financial literacy, 

19 education, and counseling to enrolled stu20 dents; 

21 ‘‘(ii) assisting students enrolled in an 

22 institution of higher education to reduce the 

23 amount of loan debt incurred by such stu24 dents; 

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1 ‘‘(iii) providing grants to students de2 scribed in section 415A(a)(1), in accordance 

3 with the terms of that section; and 

4 ‘‘(iv) carrying out the activities de5 scribed in section 415E(a); and 

6 ‘‘(B) support the development and imple7 mentation of a statewide longitudinal data sys8 tem, as described in subsection (c)(2)(A)(ii). 

9 ‘‘(2) PROHIBITED USES.—Funds made available 

10 under this section shall not be used to promote any 

11 lender’s loans. 

12 ‘‘(3) RESTRICTIONS ON USE OF FUNDS.—A 

13 State— 

‘‘(A) shall use not less than 1 14 ⁄3 of the sum 

15 of the Federal and non-Federal share used for 

16 paragraph (1)(A) on activities that benefit stu17 dents enrolled in junior or community colleges 

18 (as defined in section 312(f)), two-year public 

19 institutions, or two-year programs of instruction 

20 at four-year public institutions; 

21 ‘‘(B) may use not more than 10 percent of 

22 the sum of the Federal and non-Federal share 

23 under this section for activities described in 

24 paragraph (1)(B); and 

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1 ‘‘(C) may use not more than 6 percent of 

2 the sum of the Federal and non-Federal share 

3 under this section for administrative purposes 

4 relating to the grant under this section. 

5 ‘‘(e) ANNUAL REPORT.—Each State receiving a grant 

6 under this section shall submit to the Secretary an annual 

7 report on— 

8 ‘‘(1) the activities and services described in sub9 section (d)(1) that are carried out with such grant; 

10 ‘‘(2) the effectiveness of such activities and serv11 ices in increasing postsecondary persistence and com12 pletion, as determined by measurable progress in 

13 achieving the State’s goals for persistence and comple14 tion described in the Access and Completion Plan sub15 mitted by the State under subsection (c)(2)(A), if such 

16 plan has been submitted; and 

17 ‘‘(3) any other information or assessments the 

18 Secretary may require. 

19 ‘‘(f) DEFINITIONS.—In this section: 

20 ‘‘(1) INDUSTRY OR SECTOR PARTNERSHIP.—The 

21 term ‘industry or sector partnership’ means a work22 force collaborative that organizes key stakeholders in 

23 a targeted industry cluster into a working group that 

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1 dustry cluster and that includes, at the appropriate 

2 stage of development of the partnership— 

3 ‘‘(A) representatives of multiple firms or 

4 employers (including workers) in a targeted in5 dustry cluster, including small- and medium6 sized employers when practicable; 

7 ‘‘(B) 1 or more representatives of State 

8 labor organizations, central labor coalitions, or 

9 other labor organizations; 

10 ‘‘(C) 1 or more representatives of local 

11 workforce investment boards; 

12 ‘‘(D) 1 or more representatives of postsec13 ondary educational institutions or other training 

14 providers; and 

15 ‘‘(E) 1 or more representatives of State 

16 workforce agencies or other entities providing 

17 employment services. 

18 ‘‘(2) STATE PUBLIC EMPLOYMENT SERVICE.—The 

19 term ‘State public employment service’ has the mean20 ing given such term in section 502(a)(9) of the Stu21 dent Aid and Fiscal Responsibility Act of 2009. 

22 ‘‘(3) STATE WORKFORCE INVESTMENT BOARD; 

23 LOCAL WORKFORCE INVESTMENT BOARD.—The terms 

24 ‘State workforce investment board’ and ‘local work25 force investment board’ have the meanings given such 

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1 terms in section 502(a)(10) of the Student Aid and 

2 Fiscal Responsibility Act of 2009. 

3 ‘‘SEC. 783. INNOVATION IN COLLEGE ACCESS AND COMPLE4 TION NATIONAL ACTIVITIES. 

5 ‘‘(a) PROGRAMS AUTHORIZED.—From the amount ap6 propriated under section 781(a)(2)(C) to carry out this sec7 tion, the Secretary shall award grants, on a competitive 

8 basis, to eligible entities in accordance with this section to 

9 conduct innovative programs that advance knowledge 

10 about, and adoption of, policies and practices that increase 

11 the number of individuals with postsecondary degrees or 

12 certificates. 

13 ‘‘(b) ELIGIBLE ENTITIES.—The Secretary is author14 ized to award grants under subsection (a) to— 

15 ‘‘(1) institutions of higher education; 

16 ‘‘(2) States; 

17 ‘‘(3) nonprofit organizations with demonstrated 

18 experience in the operation of programs to increase 

19 postsecondary completion; 

20 ‘‘(4) philanthropic organizations (as such term 

21 is defined in section 781(i)(1)); 

22 ‘‘(5) entities receiving a grant under chapter 1 

23 of subpart 2 of part A of title IV; and 

24 ‘‘(6) consortia of any of the entities described in 

25 paragraphs (1) through (5). 

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1 ‘‘(c) INNOVATION GRANTS.— 

2 ‘‘(1) MINIMUM AWARD.—A grant awarded under 

3 subsection (a) shall be not less than $1,000,000. 

4 ‘‘(2) GRANTS USES.—The Secretary’s authority 

5 to award grants under subsection (a) includes— 

6 ‘‘(A) the authority to award to an eligible 

7 entity a grant in an amount equal to all or part 

8 of the amount of funds received by such entity 

9 from philanthropic organizations (as such term 

10 is defined in section 781(i)(1)) to conduct inno11 vative programs that advance knowledge about, 

12 and adoption of, policies and practices that in13 crease the number of individuals with postsec14 ondary degrees or certificates; and 

15 ‘‘(B) the authority to award an eligible en16 tity a grant to develop 2-year programs that 

17 provide supplemental grant or loan benefits to 

18 students that— 

19 ‘‘(i) are designed to improve student 

20 outcomes, including degree completion, 

21 graduation without student loan debt, and 

22 post-completion employment; 

23 ‘‘(ii) are in addition to the student fi24 nancial aid available under title IV of this 

25 Act; and 

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1 ‘‘(iii) do not result in the reduction of 

2 the amount of that aid or any other student 

3 financial aid for which a student is other4 wise eligible under Federal law. 

5 ‘‘(3) APPLICATION.—To be eligible to receive a 

6 grant under subsection (a), an eligible entity shall 

7 submit an application at such time, in such manner, 

8 and containing such information as the Secretary 

9 shall require. 

10 ‘‘(4) PRIORITIES.—In awarding grants under 

11 subsection (a), the Secretary shall give priority to ap12 plications that— 

13 ‘‘(A) are from an eligible entity with dem14 onstrated experience in serving students from 

15 groups that are underrepresented in postsec16 ondary education, including institutions of high17 er education that are eligible for assistance 

18 under title III or V, or are from a consortium 

19 that includes an eligible entity with such experi20 ence; 

21 ‘‘(B) are from an eligible entity that is a 

22 public institution of higher education that does 

23 not predominantly provide an educational pro24 gram for which it awards a bachelor’s degree (or 

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1 an equivalent degree), or from a consortium that 

2 includes at least one such institution; 

3 ‘‘(C) include activities to increase degree or 

4 certificate completion in the fields of science, 

5 technology, engineering, and mathematics, in6 cluding preparation for, or entry into, 

7 postbaccaluareate study, especially for women 

8 and other groups of students who are underrep9 resented in such fields; 

10 ‘‘(D) are from an eligible entity that is a 

11 philanthropic organization with the primary 

12 purpose of providing scholarships and support 

13 services to students from groups that are under14 represented in postsecondary education, or are 

15 from a consortium that includes such an organi16 zation; or 

17 ‘‘(E) are from an eligible entity that en18 courages partnerships between institutions of 

19 higher education with high degree-completion 

20 rates and institutions of higher education with 

21 low degree-completion rates from the same cat22 egory of institutions described in section 132(d) 

23 to facilitate the sharing of information relating 

24 to, and the implementation of, best practices for 

25 increasing postsecondary completion. 

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1 ‘‘(5) TECHNICAL ASSISTANCE.—The Secretary 

2 may reserve up to $5,000,000 per year to award 

3 grants and contracts to provide technical assistance to 

4 eligible entities receiving a grant under subsection 

5 (a), including technical assistance on the evaluation 

6 conducted in accordance with section 784 and estab7 lishing networks of eligible entities receiving grants 

8 under such subsection. 

9 ‘‘(d) REPORTS.— 

10 ‘‘(1) ANNUAL REPORTS BY ENTITIES.—Each eli11 gible entity receiving a grant under subsection (a) 

12 shall submit to the Secretary an annual report on— 

13 ‘‘(A) the effectiveness of the program carried 

14 out with such grant in increasing postsecondary 

15 completion, as determined by measurable 

16 progress in achieving the goals of the program, 

17 as described in the application for such grant; 

18 and 

19 ‘‘(B) any other information or assessments 

20 the Secretary may require. 

21 ‘‘(2) ANNUAL REPORT TO CONGRESS.—The Sec22 retary shall submit to the authorizing committees an 

23 annual report on grants awarded under subsection 

24 (a), including— 

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1 ‘‘(A) the amount awarded to each eligible 

2 entity receiving a grant under such subsection; 

3 and 

4 ‘‘(B) a description of the activities con5 ducted by each such eligible entity. 

6 ‘‘SEC. 784. EVALUATION. 

7 ‘‘From the amount appropriated under section 

8 781(a)(2)(D), the Director of the Institute of Education 

9 Sciences shall evaluate the programs funded under this 

10 part. Not later than January 30, 2016, the Director shall 

11 issue a final report on such evaluation to the authorizing 

12 committees and the Secretary, and shall make such report 

13 available to the public. 

14 ‘‘SEC. 785. VETERANS RESOURCE OFFICER GRANTS. 

15 ‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall 

16 award grants, on a competitive basis, to eligible institutions 

17 of higher education to hire a Veterans Resource Officer to 

18 increase the college completion rates for veterans enrolled 

19 at such institutions. 

20 ‘‘(b) DEFINITIONS.—In this section: 

21 ‘‘(1) ELIGIBLE INSTITUTION OF HIGHER EDU22 CATION.—The term ‘eligible institution of higher edu23 cation’ means an institution of higher education that 

24 has an enrollment of at least 100 full-time equivalent 

25 students who are veterans. 

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1 ‘‘(2) FULL-TIME EQUIVALENT STUDENTS.—The 

2 term ‘full-time equivalent students’ has the meaning 

3 given such term in section 312(e). 

4 ‘‘(3) VETERAN.—The term ‘veteran’ has the 

5 meaning give such term in section 480(c). 

6 ‘‘(c) APPLICATION.—To be eligible to receive a grant 

7 under this section, an eligible institution of higher edu8 cation shall submit an application at such time, in such 

9 manner, and containing such information as the Secretary 

10 shall require. 

11 ‘‘(d) USES OF FUNDS.— 

12 ‘‘(1) IN GENERAL.—An eligible institution of 

13 higher education receiving a grant under this section 

14 shall use such grant to hire 1 or 2 Veterans Resource 

15 Officers (in the case of an institution that has an en16 rollment of at least 200 full-time equivalent students 

17 who are veterans) to serve in the office of campus pro18 grams, or a similar office, at such institution and 

19 carry out the activities described in paragraph (2). 

20 ‘‘(2) ACTIVITIES.—A Veterans Resource Officer 

21 shall carry out activities at an eligible institution of 

22 higher education to help increase the completion rates 

23 for veterans enrolled at such institution, which shall 

24 include the following activities: 

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1 ‘‘(A) Serving as a link between student vet2 erans and the staff of the institution. 

3 ‘‘(B) Serving as a link between student vet4 erans and local facilities of the Department of 

5 Veterans Affairs. 

6 ‘‘(C) Organizing and advising student vet7 erans organization. 

8 ‘‘(D) Organizing veterans oriented group 

9 functions and events. 

10 ‘‘(E) Maintaining newsletters and listserves 

11 to distribute news and information to all student 

12 veterans. 

13 ‘‘(F) Organizing new student veterans cam14 pus orientation. 

15 ‘‘(G) Ensuring that the Department of Vet16 erans Affairs certifying official at such institu17 tion is properly trained. 

18 ‘‘(3) PRIORITY.—To the extent practicable, each 

19 institution described in paragraph (1) shall give pri20 ority to hiring a veteran to serve as a Veterans Re21 source Officer. 

22 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are 

23 authorized to be appropriated to carry out this section such 

24 sums as may be necessary for fiscal year 2010 and each 

25 succeeding fiscal year.’’. 

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1 SEC. 103. INVESTMENT IN HISTORICALLY BLACK COLLEGES 

2 AND UNIVERSITIES AND OTHER MINORITY3 SERVING INSTITUTIONS. 

4 Section 371 (20 U.S.C. 1067q) is amended— 

5 (1) in subsection (a)— 

6 (A) in paragraph (2), by striking ‘‘section 

7 502’’ and inserting ‘‘section 502(a)’’; 

8 (B) in paragraph (3), by striking ‘‘section 

9 316’’ and inserting ‘‘section 316(b)’’; 

10 (C) in paragraph (5), by striking ‘‘in sub11 section (c)’’ and inserting ‘‘in section 318(b)’’; 

12 (D) in paragraph (6), by striking ‘‘in sub13 section (c)’’ and inserting ‘‘in section 320(b)’’; 

14 and 

15 (E) in paragraph (7), by striking ‘‘in sub16 section (c)’’ and inserting ‘‘in section 319(b)’’; 

17 (2) in subsection (b)— 

18 (A) in paragraph (1)(A), by striking 

19 ‘‘$255,000,000’’ and all that follows and insert20 ing ‘‘$255,000,000 for each of the fiscal years 

21 2008 through 2019.’’; and 

22 (B) by amending paragraph (2)(B) to read 

23 as follows: 

24 ‘‘(B) STEM AND ARTICULATION PRO25 GRAMS.—From the amount made available for 

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1 allocation under this subparagraph by subpara2 graph (A)(i) for any fiscal year— 

3 ‘‘(i) 90 percent shall be available for 

4 Hispanic-serving institutions for activities 

5 described in sections 503 and 513, with a 

6 priority given to applications that pro7 pose— 

8 ‘‘(I) to increase the number of 

9 Hispanic and other low-income stu10 dents attaining degrees in the fields of 

11 science, technology, engineering, or 

12 mathematics; and 

13 ‘‘(II) to develop model transfer 

14 and articulation agreements between 2- 

15 year Hispanic-serving institutions and 

16 4-year institutions in such fields; and 

17 ‘‘(ii) 10 percent shall be available for 

18 grants under section 355.’’; 

19 (C) in paragraph (2)(C)(ii), by striking 

20 ‘‘and shall be available for a competitive’’ and 

21 all that follows and inserting ‘‘and shall be made 

22 available as grants under section 318 and allot23 ted among such institutions under section 318(e), 

24 treating such amount, plus the amount appro25 priated for such fiscal year in a regular or supmstockstill on DSKH9S0YB1PROD with BILLS

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1 plemental appropriation Act to carry out section 

2 318, as the amount appropriated to carry out 

3 section 318 for purposes of allotments under sec4 tion 318(e)’’; and 

5 (D) in paragraph (2)(D)— 

6 (i) in clause (iii), by striking ‘‘for ac7 tivities described in section 311(c)’’ and in8 serting ‘‘and shall be made available as 

9 grants under section 320, treating such 

10 $5,000,000 as part of the amount appro11 priated for such fiscal year in a regular or 

12 supplemental appropriation Act to carry 

13 out such section and using such $5,000,000 

14 for purposes described in subsection (c) of 

15 such section’’; and 

16 (ii) in clause (iv), by striking ‘‘de17 scribed in subsection (a)(7)—’’ and all that 

18 follows and inserting ‘‘and shall be made 

19 available as grants under section 319, treat20 ing such $5,000,000 as part of the amount 

21 appropriated for such fiscal year in a reg22 ular or supplemental appropriation Act to 

23 carry out such section and using such 

24 $5,000,000 for purposes described in sub25 section (c) of such section’’; and 

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1 (3) by striking subsection (c). 

2 SEC. 104. INVESTMENT IN COOPERATIVE EDUCATION. 

3 There are authorized to be appropriated, and there are 

4 appropriated, to carry out part N of title VIII of the Higher 

5 Education Act of 1965 (20 U.S.C. 1161n) (in addition to 

6 any other amounts appropriated to carry out such part and 

7 out of any money in the Treasury not otherwise appro8 priated), $10,000,000 for fiscal year 2010. 

9 SEC. 105. LOAN FORGIVENESS FOR SERVICEMEMBERS ACTI10 VATED FOR DUTY. 

11 (a) IN GENERAL.—Section 484B(b)(2) (20 U.S.C. 

12 1091b(b)(2)) is amended by adding at the end the following: 

13 ‘‘(F) TUITION RELIEF FOR STUDENTS

14 CALLED TO MILITARY SERVICE.— 

15 ‘‘(i) WAIVER OF REPAYMENT BY STU16 DENTS CALLED TO MILITARY SERVICE.—In 

17 addition to the waivers authorized by sub18 paragraphs (D) and (E), the Secretary shall 

19 waive the amounts that students are re20 quired to return under this section if the 

21 withdrawals on which the returns are based 

22 are withdrawals necessitated by reason of 

23 service in the uniformed services. 

24 ‘‘(ii) LOAN FORGIVENESS AUTHOR25 IZED.—Whenever a student’s withdrawal 

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1 from an institution of higher education is 

2 necessitated by reason of service in the uni3 formed services, the Secretary shall, with re4 spect to the payment period or period of en5 rollment for which such student did not re6 ceive academic credit as a result of such 

7 withdrawal, carry out a program— 

8 ‘‘(I) through the holder of the 

9 loan, to assume the obligation to 

10 repay— 

11 ‘‘(aa) the outstanding prin12 cipal and accrued interest on any 

13 loan assistance awarded to the 

14 student under part B (including 

15 to a parent on behalf of the stu16 dent under section 428B) for such 

17 payment period or period of en18 rollment; minus 

19 ‘‘(bb) any amount of such 

20 loan assistance returned by the 

21 institution in accordance with 

22 paragraph (1) of this subsection 

23 for such payment period or period 

24 of enrollment; and 

25 ‘‘(II) to cancel— 

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1 ‘‘(aa) the outstanding prin2 cipal and accrued interest on the 

3 loan assistance awarded to the 

4 student under part D or E (in5 cluding a Federal Direct PLUS 

6 loan awarded to a parent on be7 half of the student) for such pay8 ment period or period of enroll9 ment; minus 

10 ‘‘(bb) any amount of such 

11 loan assistance returned by the 

12 institution in accordance with 

13 paragraph (1) of this subsection 

14 for such payment period or period 

15 of enrollment. 

16 ‘‘(iii) REIMBURSEMENT FOR CAN17 CELLATION OF PERKINS LOANS.—The Sec18 retary shall pay to each institution for each 

19 fiscal year an amount equal to the aggre20 gate of the amounts of Federal Perkins 

21 loans in such institutions’s student loan 

22 fund which are cancelled pursuant to clause 

23 (iii)(II) for such fiscal year, minus an 

24 amount equal to the aggregate of the 

25 amounts of any such loans so canceled 

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1 which were made from Federal capital con2 tributions to its student loan fund provided 

3 by the Secretary under section 468. None of 

4 the funds appropriated pursuant to section 

5 461(b) shall be available for payments pur6 suant to this paragraph. To the extent fea7 sible, the Secretary shall pay the amounts 

8 for which any institution qualifies under 

9 this paragraph not later than 3 months 

10 after the institution files an institutional 

11 application for campus-based funds. 

12 ‘‘(iv) LOAN ELIGIBILITY AND LIMITS

13 FOR STUDENTS.—Any amounts that are re14 turned by an institution in accordance with 

15 paragraph (1), or forgiven or waived by the 

16 Secretary under this subparagraph, with re17 spect to a payment period or period of en18 rollment for which a student did not receive 

19 academic credit as a result of withdrawal 

20 necessitated by reason of service in the uni21 formed services, shall not be included in the 

22 calculation of the student’s annual or aggre23 gate loan limits for assistance under this 

24 title, or otherwise affect the student’s eligi25 bility for grants or loans under this title. 

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1 ‘‘(v) DEFINITION.—In this subpara2 graph, the term ‘service in the uniformed 

3 services’ has the meaning given such term 

4 in section 484C(a).’’. 

5 (b) EFFECTIVE DATE.— 

6 (1) IN GENERAL.—The amendments made by 

7 this section shall take effect for periods of service in 

8 the uniformed services beginning after the date of the 

9 enactment of this Act. 

10 (2) DEFINITION.—In this paragraph, the term 

11 ‘‘period of service in the uniformed services’’ means 

12 the period beginning 30 days prior to the date a stu13 dent is required to report to service in the uniformed 

14 services (as defined in section 484C(a) of the Higher 

15 Education Act of 1965 (20 U.S.C. 1091c(a)) and end16 ing when such student returns from such service. 

17 SEC. 106. VETERANS EDUCATIONAL EQUITY SUPPLE18 MENTAL GRANT PROGRAM. 

19 (a) VETERANS EDUCATIONAL EQUITY SUPPLEMENTAL

20 GRANT PROGRAM.—Subpart 1 of part A of title IV (20 

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

22 following: 

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1 ‘‘SEC. 401B. VETERANS EDUCATIONAL EQUITY SUPPLE2 MENTAL GRANT PROGRAM. 

3 ‘‘(a) VETERANS EDUCATIONAL EQUITY SUPPLE4 MENTAL GRANTS AUTHORIZED.—The Secretary shall 

5 award a grant to each eligible student, in an amount deter6 mined in accordance with subsection (c), to assist such stu7 dent with paying the cost of tuition incurred by the student 

8 for a program of education at an institution of higher edu9 cation. 

10 ‘‘(b) DEFINITIONS.—In this section— 

11 ‘‘(1) ELIGIBLE STUDENT.—The term ‘eligible 

12 student’ means a student who— 

13 ‘‘(A) is a covered individual, as such term 

14 is defined in section 3311(b) of title 38, United 

15 States Code; 

16 ‘‘(B) is enrolled at an institution of higher 

17 education that— 

18 ‘‘(i) is not a public institution of high19 er education; and 

20 ‘‘(ii) is located in a State with a zero, 

21 or very low, maximum tuition charge per 

22 credit hour compared to the maximum tui23 tion charge per credit hour in all other 

24 States, as determined by the Secretary of 

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1 it hour in each State for the purposes of 

2 chapter 33 of title 38, United States Code); 

3 and 

4 ‘‘(C) is eligible for educational assistance 

5 for an academic year, and will receive an 

6 amount of such assistance for such year for fees 

7 charged the individual that is less than the max8 imum amount of such assistance available for 

9 fees charged for such year in such State. 

10 ‘‘(2) EDUCATIONAL ASSISTANCE.—The term ‘edu11 cational assistance’ means the amount of educational 

12 assistance from the Secretary of Veterans Affairs an 

13 eligible student receives or will receive under section 

14 3313(c)(1)(A) of title 38, United States Code, or a 

15 similar amount of such assistance under paragraphs 

16 (2) through (7) of such section 3313(c). 

17 ‘‘(c) GRANT AMOUNT.—A grant to an eligible student 

18 under this section be equal to an amount that is— 

19 ‘‘(1) the maximum amount of educational assist20 ance for fees charged that the eligible student would 

21 receive, in accordance with section 3313(c) of title 38, 

22 United States Code, if such student attended the pub23 lic institution of higher education in the State in 

24 which the eligible student is enrolled that has the 

25 highest fees charged to an individual for a year in 

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1 such State (as determined by the Secretary of Vet2 erans Affairs for the purposes of chapter 33 of such 

3 title 38), less 

4 ‘‘(2) the educational assistance the eligible stu5 dent will receive, in accordance with such section, for 

6 fees charged to the student for such year at the insti7 tution of higher education at which the student is en8 rolled. 

9 ‘‘(d) USES OF FUNDS.—An eligible student who re10 ceives a grant under this section shall use such grant to 

11 pay tuition incurred by the student for a program of edu12 cation at an institution of higher education. 

13 ‘‘(e) NOTIFICATION.—The Secretary, in coordination 

14 with Secretary of Veterans Affairs, shall establish a system 

15 of notification to ensure the timely delivery to each eligible 

16 student of— 

17 ‘‘(1) educational assistance received by the stu18 dent; and 

19 ‘‘(2) grants awarded to the student under this 

20 section. 

21 ‘‘(f) AUTHORIZATION AND APPROPRIATION.—There are 

22 authorized to be appropriated, and there are appropriated, 

23 such sums as may be necessary to carry out this section 

24 (in addition to any other amounts appropriated to carry 

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1 out this section and out of any money in the Treasury not 

2 otherwise appropriated).’’. 

3 (b) CONFORMING AMENDMENT.—The header for sub4 part 1 of part A of title IV (20 U.S.C. 1070a et seq.) is 

5 amended by inserting ‘‘; Veterans Educational Eq6 uity Supplemental Grants’’ after ‘‘Pell Grants’’. 

7 Subtitle B—Student Financial Aid 

8 Form Simplification 

9 SEC. 121. GENERAL EFFECTIVE DATE. 

10 Except as otherwise provided in this subtitle, amend11 ments made by this subtitle shall be effective with respect 

12 to determinations of need for assistance under title IV of 

13 the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) 

14 for award years beginning on or after July 1, 2011. 

15 SEC. 122. TREATMENT OF ASSETS IN NEED ANALYSIS. 

16 (a) AMOUNT OF NEED.—Section 471 (20 U.S.C. 

17 1087kk) is amended— 

18 (1) by striking ‘‘Except’’ and inserting the fol19 lowing: 

20 ‘‘(a) IN GENERAL.—Except’’; 

21 (2) by inserting ‘‘and subject to subsection (b)’’ 

22 after ‘‘therein’’; and 

23 (3) by adding at the end the following: 

24 ‘‘(b) ASSET CAP FOR NEED-BASED AID.—Notwith25 standing any other provision of this title, a student shall 

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1 not be eligible to receive a Federal Pell Grant, a Federal 

2 Direct Stafford Loan, or work assistance under this title 

3 if— 

4 ‘‘(1) in the case of a dependent student, the com5 bined net assets of the student and the student’s par6 ents are equal to an amount greater than $150,000 

7 (or a successor amount prescribed by the Secretary 

8 under section 478(c)); or 

9 ‘‘(2) in the case of an independent student, the 

10 net assets of the student (and the student’s spouse, if 

11 applicable) are equal to an amount greater than 

12 $150,000 (or a successor amount prescribed by the 

13 Secretary under section 478(c)).’’. 

14 (b) DATA ELEMENTS.—Section 474(b) (20 U.S.C. 

15 1087nn(b)) is amended— 

16 (1) by striking paragraph (4); and 

17 (2) by redesignating paragraphs (5), (6), and (7) 

18 as paragraphs (4), (5), and (6), respectively. 

19 (c) DEPENDENT STUDENTS.—Section 475 (20 U.S.C. 

20 1087oo) is amended— 

21 (1) in subsection (a)— 

22 (A) in paragraph (1)— 

23 (i) by striking ‘‘adjusted’’; and 

24 (ii) by inserting ‘‘and’’ after the semi25 colon; 

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1 (B) in paragraph (2), by striking ‘‘; and’’ 

2 and inserting a period; and 

3 (C) by striking paragraph (3); 

4 (2) in subsection (b)— 

5 (A) in the header, by striking ‘‘ADJUSTED’’; 

6 (B) in the matter preceding paragraph (1), 

7 by striking ‘‘adjusted’’; 

8 (C) by striking paragraph (1); 

9 (D) by redesignating paragraphs (2) and 

10 (3) as paragraphs (1) and (2), respectively; 

11 (E) in paragraph (1) (as redesignated by 

12 subparagraph (D) of this paragraph), by strik13 ing ‘‘adjusted’’; and 

14 (F) in paragraph (2) (as redesignated by 

15 subparagraph (D) of this paragraph), by strik16 ing ‘‘paragraph (2)’’ and inserting ‘‘paragraph 

17 (1)’’; 

18 (3) by repealing subsection (d); 

19 (4) in subsection (e)— 

20 (A) by striking ‘‘The adjusted available’’ 

21 and inserting ‘‘The available’’; 

22 (B) by striking ‘‘to as ‘AAI’)’’ and inserting 

23 ‘‘to as ‘AI’)’’; 

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1 (C) by striking ‘‘From Adjusted Available 

2 Income (AAI)’’ and inserting ‘‘From Available 

3 Income (AI)’’; and 

4 (D) in the table— 

5 (i) by striking ‘‘If AAI’’ and inserting 

6 ‘‘If AI’’; and 

7 (ii) by striking ‘‘of AAI’’ each place it 

8 appears and inserting ‘‘of AI’’; 

9 (5) in subsection (f)— 

10 (A) by striking ‘‘and assets’’ each place it 

11 appears; 

12 (B) in paragraph (2)(B), by striking ‘‘or 

13 assets’’; and 

14 (C) in paragraph (3)— 

15 (i) by striking ‘‘are taken into’’ and 

16 inserting ‘‘is taken into’’; and 

17 (ii) by striking ‘‘adjusted’’; 

18 (6) in subsection (g)(6), by striking ‘‘exceeds the 

19 sum of’’ and all that follows and inserting ‘‘exceeds 

20 the parents’ total income (as defined in section 480)’’; 

21 (7) by repealing subsection (h); and 

22 (8) in subsection (i), by striking ‘‘adjusted’’ each 

23 place it appears. 

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1 (d) FAMILY CONTRIBUTION FOR INDEPENDENT STU2 DENTS WITHOUT DEPENDENTS OTHER THAN A SPOUSE.— 

3 Section 476 (20 U.S.C. 1087pp) is amended— 

4 (1) in subsection (a)— 

5 (A) by striking paragraph (1); 

6 (B) by redesignating paragraphs (2) and 

7 (3) as paragraphs (1) and (2), respectively; 

8 (C) in paragraph (1) (as redesignated by 

9 subparagraph (B)), by striking ‘‘the sum result10 ing under paragraph (1)’’ and inserting ‘‘the 

11 family’s contribution from available income (de12 termined in accordance with subsection (b))’’; 

13 and 

14 (D) in paragraph (2)(A) (as redesignated 

15 by subparagraph (B)), by striking ‘‘paragraph 

16 (2)’’ and inserting ‘‘paragraph (1)’’; 

17 (2) by repealing subsection (c); and 

18 (3) in subsection (d)— 

19 (A) by striking ‘‘and assets’’; and 

20 (B) by striking ‘‘or assets’’. 

21 (e) FAMILY CONTRIBUTION FOR INDEPENDENT STU22 DENTS WITH DEPENDENTS OTHER THAN A SPOUSE.—Sec23 tion 477 (20 U.S.C. 1087qq) is amended— 

24 (1) in subsection (a)— 

25 (A) by striking paragraph (1); 

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1 (B) by redesignating paragraphs (2), (3), 

2 and (4) as paragraphs (1), (2), and (3), respec3 tively; 

4 (C) in paragraph (1) (as redesignated by 

5 subparagraph (B)), by striking ‘‘such adjusted 

6 available income’’ and inserting ‘‘the family’s 

7 available income (determined in accordance with 

8 subsection (b))’’; 

9 (D) in paragraph (2) (as redesignated by 

10 subparagraph (B)), by striking ‘‘paragraph (2)’’ 

11 and inserting ‘‘paragraph (1)’’; and 

12 (E) in paragraph (3)(A) (as redesignated 

13 by subparagraph (B)), by striking ‘‘paragraph 

14 (3)’’ and inserting ‘‘paragraph (2)’’; 

15 (2) by repealing subsection (c); and 

16 (3) in subsection (d)— 

17 (A) by striking ‘‘The adjusted available’’ 

18 and inserting ‘‘The available’’; 

19 (B) by striking ‘‘to as ‘AAI’)’’ and inserting 

20 ‘‘to as ‘AI’)’’; 

21 (C) by striking ‘‘From Adjusted Available 

22 Income (AAI)’’ and inserting ‘‘From Available 

23 Income (AI)’’; and 

24 (D) in the table— 

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1 (i) by striking ‘‘If AAI’’ and inserting 

2 ‘‘If AI’’; and 

3 (ii) by striking ‘‘of AAI’’ each place it 

4 appears and inserting ‘‘of AI’’; and 

5 (E) in subsection (e)— 

6 (i) by striking ‘‘and assets’’; and 

7 (ii) by striking ‘‘or assets’’. 

8 (f) REGULATIONS; UPDATED TABLES.—Section 478 

9 (20 U.S.C. 1087rr) is amended— 

10 (1) in subsection (a), by inserting ‘‘or amounts, 

11 as the case may be,’’ after ‘‘tables’’ each place the 

12 term appears; 

13 (2) by amending subsection (c) to read as fol14 lows: 

15 ‘‘(c) ASSET CAP FOR NEED-BASED AID.—For each 

16 award year after award year 2011–2012, the Secretary 

17 shall publish in the Federal Register a revised net asset cap 

18 for the purposes of section 471(b). Such revised cap shall 

19 be determined by increasing the dollar amount in such sec20 tion by a percentage equal to the estimated percentage 

21 change in the Consumer Price Index (as determined by the 

22 Secretary) between December 2010 and the December pre23 ceding the beginning of such award year, and rounding the 

24 result to the nearest $5.’’; 

25 (3) by repealing subsection (d); and 

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1 (4) in subsection (e), by striking ‘‘adjusted’’ both 

2 places it appears. 

3 SEC. 123. CHANGES TO TOTAL INCOME; AID ELIGIBILITY. 

4 (a) DEFINITION OF UNTAXED INCOME AND BENE5 FITS.—Section 480(b)(1) (20 U.S.C. 1087vv(b)(1)), as 

6 amended by the Higher Education Opportunity Act (Public 

7 Law 110–315), is amended— 

8 (1) by striking subparagraphs (A), (B), (C), (E), 

9 (F), and (I); 

10 (2) by redesignating subparagraphs (D), (G), 

11 and (H) as subparagraphs (A), (B), and (C), respec12 tively; 

13 (3) in subparagraph (B) (as redesignated by 

14 paragraph (2)), by inserting ‘‘and’’ after the semi15 colon; and 

16 (4) in subparagraph (C) (as redesignated by 

17 paragraph (2)), by striking ‘‘; and’’ and inserting a 

18 period. 

19 (b) DEFINITION OF ASSETS.—Section 480(f)(2) (20 

20 U.S.C. 1087vv(f)(2)) is amended— 

21 (1) by striking ‘‘or’’ at the end of subparagraph 

22 (B); 

23 (2) by striking the period at the end of subpara24 graph (C) and inserting ‘‘; or’’; and 

25 (3) by adding at the end the following: 

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1 ‘‘(D) an employee pension benefit plan (as 

2 defined in section 3(2) of the Employee Retire3 ment Income Security Act of 1974 (29 U.S.C. 

4 1002(2))).’’. 

5 (c) FINANCIAL ADMINISTRATOR DISCRETION.—Section 

6 479A(b) (20 U.S.C. 1087tt) is amended in the subsection 

7 heading, by striking ‘‘TO ASSETS’’. 

8 (d) SUSPENSION OF ELIGIBILITY FOR DRUG-RELATED

9 OFFENSES.—Section 484(r)(1) (20 U.S.C. 1091(r)(1)) is 

10 amended to read as follows: 

11 ‘‘(1) IN GENERAL.—A student who is convicted 

12 of any offense under any Federal or State law involv13 ing the sale of a controlled substance for conduct that 

14 occurred during a period of enrollment for which the 

15 student was receiving any grant, loan, or work assist16 ance under this title shall not be eligible to receive 

17 any grant, loan, or work assistance under this title 

18 from the date of that conviction for the period of time 

19 specified in the following subparagraphs: 

20 ‘‘(A) For a first offense, the period of ineli21 gibility shall be 2 years. 

22 ‘‘(B) For a second offense, the period of in23 eligibility shall be indefinite.’’. 

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1 TITLE II—STUDENT LOAN 

2 REFORM 

3 Subtitle A—Stafford Loan Reform 

4 SEC. 201. FEDERAL FAMILY EDUCATION LOAN APPROPRIA5 TIONS. 

6 Section 421 (20 U.S.C. 1071) is amended— 

7 (1) in subsection (b), in the matter following 

8 paragraph (6), by inserting ‘‘, except that no sums 

9 may be expended after June 30, 2010, with respect to 

10 loans under this part for which the first disbursement 

11 would be made after such date’’ after ‘‘expended’’; and 

12 (2) by adding at the end the following new sub13 section: 

14 ‘‘(d) TERMINATION OF AUTHORITY TO MAKE OR IN15 SURE NEW LOANS.—Notwithstanding paragraphs (1) 

16 through (6) of subsection (b) or any other provision of 

17 law— 

18 ‘‘(1) no new loans (including consolidation 

19 loans) may be made or insured under this part after 

20 June 30, 2010; and 

21 ‘‘(2) no funds are authorized to be appropriated, 

22 or may be expended, under this Act or any other Act 

23 to make or insure loans under this part (including 

24 consolidation loans) for which the first disbursement 

25 would be made after June 30, 2010, 

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1 except as expressly authorized by an Act of Congress enacted 

2 after the date of enactment of Student Aid and Fiscal Re3 sponsibility Act of 2009.’’. 

4 SEC. 202. SCOPE AND DURATION OF FEDERAL LOAN INSUR5 ANCE PROGRAM. 

6 Section 424(a) (20 U.S.C. 1074(a)) is amended by 

7 striking ‘‘September 30, 1976,’’ and all that follows and in8 serting ‘‘September 30, 1976, for each of the succeeding fis9 cal years ending prior to October 1, 2009, and for the period 

10 from October 1, 2009, to June 30, 2010, for loans first dis11 bursed on or before June 30, 2010.’’. 

12 SEC. 203. APPLICABLE INTEREST RATES. 

13 Section 427A(l) (20 U.S.C. 1077a(l)) is amended— 

14 (1) in paragraph (1), by inserting ‘‘and before 

15 July 1, 2010,’’ after ‘‘July 1, 2006,’’; 

16 (2) in paragraph (2), by inserting ‘‘and before 

17 July 1, 2010,’’ after ‘‘July 1, 2006,’’; 

18 (3) in paragraph (3), by inserting ‘‘and that 

19 was disbursed before July 1, 2010,’’ after ‘‘July 1, 

20 2006,’’; and 

21 (4) in paragraph (4)— 

22 (A) in the matter preceding subparagraph 

23 (A), by striking ‘‘July 1, 2012’’ and inserting 

24 ‘‘July 1, 2010’’; and 

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1 (B) by repealing subparagraphs (D) and 

2 (E). 

3 SEC. 204. FEDERAL PAYMENTS TO REDUCE STUDENT IN4 TEREST COSTS. 

5 (a) HIGHER EDUCATION ACT OF 1965.—Section 428 

6 (20 U.S.C. 1078) is amended— 

7 (1) in subsection (a)— 

8 (A) in paragraph (1), in the matter pre9 ceding subparagraph (A), by inserting ‘‘for 

10 which the first disbursement is made before July 

11 1, 2010, and’’ after ‘‘eligible institution’’; and 

12 (B) in paragraph (5), by striking ‘‘Sep13 tember 30, 2014,’’ and all that follows through 

14 the period and inserting ‘‘June 30, 2010.’’; 

15 (2) in subsection (b)(1)— 

16 (A) in subparagraph (G)(ii), by inserting 

17 ‘‘and before July 1, 2010,’’ after ‘‘July 1, 2006,’’; 

18 and 

19 (B) in subparagraph (H)(ii), by inserting 

20 ‘‘and that are first disbursed before July 1, 

21 2010,’’ after ‘‘July 1, 2006,’’; 

22 (3) in subsection (f)(1)(A)(ii)— 

23 (A) by striking ‘‘during fiscal years begin24 ning’’; and 

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1 (B) by inserting ‘‘and first disbursed before 

2 July 1, 2010,’’ after ‘‘October 1, 2003,’’; and 

3 (4) in subsection (j)(1), by inserting ‘‘, before 

4 July 1, 2010,’’ after ‘‘section 435(d)(1)(D) of this Act 

5 shall’’. 

6 (b) COLLEGE COST REDUCTION AND ACCESS ACT.— 

7 Section 303 of the College Cost Reduction and Access Act 

8 (Public Law 110–84) is repealed. 

9 SEC. 205. FEDERAL PLUS LOANS. 

10 Section 428B(a)(1) (20 U.S.C. 1078–2(a)(1)) is 

11 amended by striking ‘‘A graduate’’ and inserting ‘‘Prior to 

12 July 1, 2010, a graduate’’. 

13 SEC. 206. FEDERAL CONSOLIDATION LOAN. 

14 (a) AMENDMENTS.—Section 428C (20 U.S.C. 1078–3) 

15 is amended— 

16 (1) in subsection (a)— 

17 (A) by amending paragraph (3)(B)(i)(V) to 

18 read as follows: 

19 ‘‘(V) an individual who has a consoli20 dation loan under this section and does not 

21 have a consolidation loan under section 

22 455(g) may obtain a subsequent consolida23 tion loan under section 455(g).’’; and 

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1 (B) in paragraph (4)(A), by inserting ‘‘, 

2 and first disbursed before July 1, 2010’’ after 

3 ‘‘under this part’’; 

4 (2) in subsection (b)— 

5 (A) in paragraph (1)(E), by inserting be6 fore the semicolon ‘‘, and before July 1, 2010’’; 

7 and 

8 (B) in paragraph (5), by striking ‘‘In the 

9 event that’’ and inserting ‘‘If, before July 1, 

10 2010,’’; 

11 (3) in subsection (c)(1)— 

12 (A) in subparagraph (A)(ii), by inserting 

13 ‘‘and that is disbursed before July 1, 2010,’’ after 

14 ‘‘2006,’’; and 

15 (B) in subparagraph (C), by inserting ‘‘and 

16 first disbursed before July 1, 2010,’’ after 

17 ‘‘1994,’’; and 

18 (4) in subsection (e), by striking ‘‘September 30, 

19 2014.’’ and inserting ‘‘June 30, 2010. No loan may 

20 be made under this section for which the first dis21 bursement would be on or after July 1, 2010.’’. 

22 (b) EFFECTIVE DATE.—The amendments made by sub23 section (a)(1)(A) shall be effective at the close of June 30, 

24 2010. 

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1 SEC. 207. UNSUBSIDIZED STAFFORD LOANS FOR MIDDLE2 INCOME BORROWERS. 

3 Section 428H (20 U.S.C. 1078–8) is amended— 

4 (1) in subsection (a), by inserting ‘‘that are first 

5 disbursed before July 1, 2010,’’ after ‘‘under this 

6 part’’; 

7 (2) in subsection (b)— 

8 (A) by striking ‘‘Any student’’ and insert9 ing ‘‘Prior to July 1, 2010, any student’’; and 

10 (B) by inserting ‘‘for which the first dis11 bursement is made before such date’’ after ‘‘un12 subsidized Federal Stafford Loan’’; and 

13 (3) in subsection (h), by inserting ‘‘and that are 

14 first disbursed before July 1, 2010,’’ after ‘‘July 1, 

15 2006,’’. 

16 SEC. 208. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE 

17 ATTORNEYS. 

18 Section 428L(b)(2)(A) (20 U.S.C. 1078–12(b)(2)(A)) is 

19 amended— 

20 (1) by amending clause (i) to read as follows: 

21 ‘‘(i) subject to clause (ii)— 

22 ‘‘(I) a loan made, insured, or 

23 guaranteed under this part, and that is 

24 first disbursed before July 1, 2010; or 

25 ‘‘(II) a loan made under part D 

26 or part E; and’’; and 

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1 (2) in clause (ii)— 

2 (A) by striking ‘‘428C or 455(g)’’ and in3 serting ‘‘428C, that is disbursed before July 1, 

4 2010, or section 455(g)’’; and 

5 (B) in subclause (II), by inserting ‘‘for 

6 which the first disbursement is made before July 

7 1, 2010,’’ after ‘‘or 428H’’. 

8 SEC. 209. SPECIAL ALLOWANCES. 

9 Section 438 (20 U.S.C. 1087–1) is amended— 

10 (1) in subsection (b)(2)(I)— 

11 (A) in the header, by inserting ‘‘, AND BE12 FORE JULY 1, 2010’’ after ‘‘2000’’; 

13 (B) in clause (i), by inserting ‘‘and before 

14 July 1, 2010,’’ after ‘‘2000,’’; 

15 (C) in clause (ii)(II), by inserting ‘‘and be16 fore July 1, 2010,’’ after ‘‘2006,’’; 

17 (D) in clause (iii), by inserting ‘‘and before 

18 July 1, 2010,’’ after ‘‘2000,’’; 

19 (E) in clause (iv), by inserting ‘‘and that is 

20 disbursed before July 1, 2010,’’ after ‘‘2000,’’; 

21 (F) in clause (v)(I), by inserting ‘‘and be22 fore July 1, 2010,’’ after ‘‘2006,’’; and 

23 (G) in clause (vi)— 

24 (i) in the header, by inserting ‘‘, AND

25 BEFORE JULY 1, 2010’’ after ‘‘2007’’; and 

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1 (ii) in the matter preceding subclause 

2 (I), by inserting ‘‘and before July 1, 2010,’’ 

3 after ‘‘2007,’’; 

4 (2) in subsection (c)— 

5 (A) in paragraph (2)(B)— 

6 (i) in clause (iii), by inserting ‘‘and’’ 

7 after the semicolon; 

8 (ii) in clause (iv), by striking ‘‘; and’’ 

9 and inserting a period; and 

10 (iii) by striking clause (v); and 

11 (B) in paragraph (6), by inserting ‘‘and 

12 first disbursed before July 1, 2010,’’ after 

13 ‘‘1992,’’; and 

14 (3) in subsection (d)(2)(B), by inserting ‘‘, and 

15 before July 1, 2010’’ after ‘‘2007’’. 

16 SEC. 210. REVISED SPECIAL ALLOWANCE CALCULATION. 

17 (a) REVISED CALCULATION RULE.—Section 

18 438(b)(2)(I) of the Higher Education Act of 1965 (20 

19 U.S.C. 1087–1(b)(2)(I)) is amended by adding at the end 

20 the following new clause: 

21 ‘‘(vii) REVISED CALCULATION RULE TO

22 REFLECT FINANCIAL MARKET CONDI23 TIONS.— 

24 ‘‘(I) CALCULATION BASED ON

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1 ginning on October 1, 2009, and each 

2 subsequent calendar quarter, in com3 puting the special allowance paid pur4 suant to this subsection with respect to 

5 loans described in subclause (II), 

6 clause (i)(I) of this subparagraph shall 

7 be applied by substituting ‘of the 1- 

8 month London Inter Bank Offered 

9 Rate (LIBOR) for United States dol10 lars in effect for each of the days in 

11 such quarter as compiled and released 

12 by the British Bankers Association’ for 

13 ‘of the quotes of the 3-month commer14 cial paper (financial) rates in effect for 

15 each of the days in such quarter as re16 ported by the Federal Reserve in Publi17 cation H–15 (or its successor) for such 

18 3-month period’. 

19 ‘‘(II) LOANS ELIGIBLE FOR

20 LIBOR-BASED CALCULATION.—The spe21 cial allowance paid pursuant to this 

22 subsection shall be calculated as de23 scribed in subclause (I) with respect to 

24 special allowance payments for the 3- 

25 month period ending December 31, 

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1 2009, and each succeeding 3-month pe2 riod, on loans for which the first dis3 bursement is made— 

4 ‘‘(aa) on or after the date of 

5 enactment of the Student Aid and 

6 Fiscal Responsibility Act of 2009, 

7 and before July 1, 2010; and 

8 ‘‘(bb) on or after January 1, 

9 2000, and before the date of enact10 ment of the Student Aid and Fis11 cal Responsibility Act of 2009, if, 

12 not later than the last day of the 

13 second full fiscal quarter after the 

14 date of enactment of such Act, the 

15 holder of the loan affirmatively 

16 and permanently waives all con17 tractual, statutory or other legal 

18 rights to a special allowance paid 

19 pursuant to this subsection that is 

20 calculated using the formula in ef21 fect at the time the loans were 

22 first disbursed. 

23 ‘‘(III) TERMS OF WAIVER.—A 

24 waiver pursuant to subclause (II)(bb) 

25 shall— 

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1 ‘‘(aa) be applicable to all 

2 loans described in such subclause 

3 that are held under any lender 

4 identification number associated 

5 with the holder (pursuant to sec6 tion 487B); and 

7 ‘‘(bb) apply with respect to 

8 all future calculations of the spe9 cial allowance on loans described 

10 in such subclause that are held on 

11 the date of such waiver or that are 

12 acquired by the holder after such 

13 date. 

14 ‘‘(IV) PARTICIPANT’S YIELD.—For 

15 the calendar quarter beginning on Oc16 tober 1, 2009, and each subsequent cal17 endar quarter, the Secretary’s partici18 pant yield in any loan for which the 

19 first disbursement is made on or after 

20 January 1, 2000, and before October 1, 

21 2009, and that is held by a lender that 

22 has sold any participation interest in 

23 such loan to the Secretary shall be de24 termined by using the LIBOR-based 

25 rate described in subclause (I) as the 

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1 substitute rate (for the commercial 

2 paper rate) referred to in the partici3 pation agreement between the Sec4 retary and such lender.’’; 

5 (b) CONFORMING AMENDMENT.—Section 438(b)(2)(I) 

6 (20 U.S.C. 1087–1(b)(2)(I)) is further amended— 

7 (1) in clause (i)(II), by striking ‘‘such average 

8 bond equivalent rate’’ and inserting ‘‘the rate deter9 mined under subclause (I)’’; and 

10 (2) in clause (v)(III) by striking ‘‘(iv), and (vi)’’ 

11 and inserting ‘‘(iv), (vi), and (vii)’’. 

12 SEC. 211. ORIGINATION OF DIRECT LOANS AT INSTITU13 TIONS LOCATED OUTSIDE THE UNITED 

14 STATES. 

15 (a) LOANS FOR STUDENTS ATTENDING INSTITUTIONS

16 LOCATED OUTSIDE THE UNITED STATES.—Section 452 (20 

17 U.S.C. 1087b) is amended by adding at the end the fol18 lowing: 

19 ‘‘(d) INSTITUTIONS LOCATED OUTSIDE THE UNITED

20 STATES.—Loan funds for students (and parents of stu21 dents) attending institutions located outside the United 

22 States shall be disbursed through a financial institution lo23 cated in the United States and designated by the Secretary 

24 to serve as the agent of such institutions with respect to 

25 the receipt of the disbursements of such loan funds and the 

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1 transfer of such funds to such institutions. To be eligible 

2 to receive funds under this part, an otherwise eligible insti3 tution located outside the United States shall make arrange4 ments, subject to regulations by the Secretary, with the 

5 agent designated by the Secretary under this subsection to 

6 receive funds under this part.’’. 

7 (b) CONFORMING AMENDMENTS.— 

8 (1) AMENDMENTS.—Section 102 (20 U.S.C. 

9 1002), as amended by section 102 of the Higher Edu10 cation Opportunity Act (Public Law 110–315) and 

11 section 101 of Public Law 111–39, is amended— 

12 (A) by striking ‘‘part B’’ each place it ap13 pears and inserting ‘‘part D’’; 

14 (B) in subsection (a)(1)(C), by inserting ‘‘, 

15 consistent with the requirements of section 

16 452(d)’’ before the period at the end; and 

17 (C) in subsection (a)(2)(A)— 

18 (i) in the matter preceding clause (i), 

19 by striking ‘‘made, insured, or guaranteed’’ 

20 and inserting ‘‘made’’; and 

21 (ii) in clause (iii)— 

22 (I) in subclause (III), by striking 

23 ‘‘only Federal Stafford’’ and all that 

24 follows through ‘‘section 428B’’ and in25 serting ‘‘only Federal Direct Stafford 

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1 Loans under section 455(a)(2)(A), Fed2 eral Direct Unsubsidized Stafford 

3 Loans under section 455(a)(2)(D), or 

4 Federal Direct PLUS Loans under sec5 tion 455(a)(2)(B)’’; and 

6 (II) in subclause (V), by striking 

7 ‘‘a Federal Stafford’’ and all that fol8 lows through ‘‘section 428B’’ and in9 serting ‘‘a Federal Direct Stafford 

10 Loan under section 455(a)(2)(A), a 

11 Federal Direct Unsubsidized Stafford 

12 Loan under section 455(a)(2)(D), or a 

13 Federal Direct PLUS Loan under sec14 tion 455(a)(2)(B)’’. 

15 (2) EFFECTIVE DATE.—The amendments made 

16 by subparagraph (C) of paragraph (1) shall be effec17 tive on July 1, 2010, as if enacted as part of section 

18 102(a)(1) of the Higher Education Opportunity Act 

19 (Public Law 110–315). 

20 SEC. 212. AGREEMENTS WITH INSTITUTIONS. 

21 Section 454 (20 U.S.C. 1087d) is amended— 

22 (1) in subsection (a), by striking paragraph (4) 

23 and redesignating the succeeding paragraphs accord24 ingly; and 

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1 (2) in subsection (b)(2), by striking ‘‘(5), (6), 

2 and (7)’’ and inserting ‘‘(5), and (6)’’. 

3 SEC. 213. TERMS AND CONDITIONS OF LOANS. 

4 (a) AMENDMENTS.—Section 455 (20 U.S.C. 1087e) is 

5 amended— 

6 (1) in subsection (a)(1), by inserting ‘‘, and first 

7 disbursed on June 30, 2010,’’ before ‘‘under sections 

8 428’’; and 

9 (2) in subsection (g)— 

10 (A) by inserting ‘‘, including any loan 

11 made under part B and first disbursed before 

12 July 1, 2010’’ after ‘‘section 428C(a)(4)’’; and 

13 (B) by striking the third sentence. 

14 (b) EFFECTIVE DATE.—The amendment made by sub15 section (a)(1) shall apply with respect to loans first dis16 bursed under part D of title IV of the Higher Education 

17 Act of 1965 (20 U.S.C. 1087a et seq.) on or after July 1, 

18 2010. 

19 SEC. 214. CONTRACTS. 

20 Section 456 (20 U.S.C. 1087f) is amended— 

21 (1) in subsection (a)— 

22 (A) in paragraph (1)— 

23 (i) in the header, by striking ‘‘IN GEN24 ERAL’’ and inserting ‘‘AWARDING OF CON25 TRACTS’’; 

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1 (ii) by striking ‘‘The Secretary’’ and 

2 inserting the following: 

3 ‘‘(A) IN GENERAL.—The Secretary’’; and 

4 (iii) by adding at the end the fol5 lowing: 

6 ‘‘(B) AWARDING CONTRACTS FOR SERVICING

7 LOANS.—The Secretary shall, if practicable, 

8 award multiple contracts, through a competitive 

9 bidding process, to entities, including eligible 

10 not-for-profit servicers, to service loans origi11 nated under this part. The competitive bidding 

12 process shall take into account price, servicing 

13 capacity, and capability, and may take into ac14 count the capacity and capability to provide de15 fault aversion activities and outreach services. 

16 ‘‘(C) JOB RETENTION INCENTIVE PAY17 MENT.—(i) In a contract with an entity under 

18 subparagraph (B) for the servicing of loans, the 

19 Secretary shall provide a job retention incentive 

20 payment, in an amount and manner determined 

21 by the Secretary, if such entity agrees to give 

22 priority for hiring for positions created as a re23 sult of such a contract to those geographical loca24 tions at which the entity performed student loan 

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1 eral Family Education Loan Program as of the 

2 date of enactment of the Student Aid and Fiscal 

3 Responsibility Act of 2009. 

4 ‘‘(ii) In determining the allocation of loans 

5 to be serviced by an entity awarded such a con6 tract, the Secretary shall consider the retention 

7 of highly qualified employees of such entity a 

8 positive factor in determining such allocation.’’; 

9 (B) in paragraph (2)— 

10 (i) in the first sentence, by inserting ‘‘, 

11 including eligible not-for-profit servicers,’’ 

12 after ‘‘The entities’’; 

13 (ii) by amending the third sentence to 

14 read as follows: ‘‘The entities with which the 

15 Secretary may enter into such contracts 

16 shall include, where practicable, agencies 

17 with agreements with the Secretary under 

18 sections 428(b) and (c) on the date of the 

19 enactment of the Student Aid and Fiscal 

20 Responsibility Act of 2009, and eligible not21 for-profit servicers, if such agencies or 

22 servicers meet the qualifications as deter23 mined by the Secretary under this sub24 section and if those agencies or servicers 

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1 have such experience and demonstrated ef2 fectiveness.’’; and 

3 (iii) by striking the last sentence and 

4 inserting the following: ‘‘In awarding con5 tracts to such State agencies, and such eligi6 ble not-for-profit servicers, the Secretary 

7 shall, to the extent practicable and con8 sistent with the purposes of this part, give 

9 special consideration to State agencies and 

10 such servicers with a history of high quality 

11 performance and demonstrated integrity in 

12 conducting operations with institutions of 

13 higher education and the Secretary.’’; 

14 (C) by redesignating paragraph (3) as 

15 paragraph (4), and by inserting in such para16 graph ‘‘, or of any eligible not-for-profit servicer 

17 to enter into an agreement for the purposes of 

18 this section as a member of a consortium of such 

19 entities’’ before the period at the end; and 

20 (D) by inserting after paragraph (2) the fol21 lowing new paragraph: 

22 ‘‘(3) SERVICING BY ELIGIBLE NOT-FOR-PROFIT

23 SERVICERS.— 

24 ‘‘(A) IN GENERAL.—Notwithstanding any 

25 other provision of this section, in each State 

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1 where one or more eligible not-for-profit servicer 

2 has its principal place of business, the Secretary 

3 shall contract with each such servicer to service 

4 loans originated under this part on behalf of bor5 rowers attending institutions located within such 

6 State, provided that the servicer demonstrates 

7 that it meets the standards for servicing Federal 

8 assets and providing quality service and agrees 

9 to service the loans at a competitive market rate, 

10 as determined by the Secretary. In determining 

11 such a competitive market rate, the Secretary 

12 may take into account the volume of loans serv13 iced by the servicer. Contracts awarded under 

14 this paragraph shall be subject to the same re15 quirements for quality, performance, and ac16 countability as contracts awarded under para17 graph (2) for similar activities. 

18 ‘‘(B) ALLOCATIONS.—(i) ONE SERVICER.— 

19 In the case of a State with only one eligible not20 for-profit servicer with a contract described in 

21 subparagraph (A), the Secretary shall, at a min22 imum, allocate to such servicer, on an annual 

23 basis and subject to such contract, the servicing 

24 rights for the lesser of— 

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1 ‘‘(I) the loans of 100,000 borrowers (in2 cluding borrowers who borrowed loans in a 

3 prior year that were serviced by the 

4 servicer) attending institutions located 

5 within the State; or 

6 ‘‘(II) the loans of all the borrowers at7 tending institutions located within the 

8 State. 

9 ‘‘(ii) MULTIPLE SERVICERS.—In the case of 

10 a State with more than one eligible not-for-profit 

11 servicer with a contract described in subpara12 graph (A), the Secretary shall, at a minimum, 

13 allocate to each such servicer, on an annual basis 

14 and subject to such contract, the servicing rights 

15 for the lesser of— 

16 ‘‘(I) the loans of 100,000 borrowers (in17 cluding borrowers who borrowed loans in a 

18 prior year that were serviced by the 

19 servicer) attending institutions located 

20 within the State; or 

21 ‘‘(II) an equal share of the loans of all 

22 borrowers attending institutions located 

23 within the State, except the Secretary shall 

24 adjust such shares as necessary to ensure 

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1 that the loans of any single borrower re2 main with a single servicer. 

3 ‘‘(iii) ADDITIONAL ALLOCATION.—The Sec4 retary may allocate additional servicing rights 

5 to an eligible not-for-profit servicer based on the 

6 performance of such servicer, as determined by 

7 the Secretary, including performance in the 

8 areas of customer service and default aversion. 

9 ‘‘(C) MULTIPLE LOANS.—Notwithstanding 

10 the allocations required by subparagraph (B), 

11 the Secretary may transfer loans among servicers 

12 who are awarded contracts to service loans pur13 suant to this section to ensure that the loans of 

14 any single borrower remain with a single 

15 servicer.’’; and 

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

17 ‘‘(c) REPORT TO CONGRESS.—Not later than 3 years 

18 after the date of the enactment of the Student Aid and Fis19 cal Responsibility Act of 2009, the Secretary shall prepare 

20 and submit to the authorizing committees, a report evalu21 ating the performance of all eligible not-for-profit servicers 

22 awarded a contract under this section to service loans origi23 nated under this part. Such report shall give consideration 

24 to— 

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1 ‘‘(1) customer satisfaction of borrowers and in2 stitutions with respect to the loan servicing provided 

3 by the servicers; 

4 ‘‘(2) compliance with applicable regulations by 

5 the servicers; and 

6 ‘‘(3) the effectiveness of default aversion activi7 ties, and outreach services (if any), provided by the 

8 servicers. 

9 ‘‘(d) DEFINITIONS.—In this section: 

10 ‘‘(1) DEFAULT AVERSION ACTIVITIES.—The term 

11 ‘default aversion activities’ means activities that are 

12 directly related to providing collection assistance to 

13 the Secretary on a delinquent loan, prior to the loan 

14 being legally in a default status, including due dili15 gence activities required pursuant to regulations. 

16 ‘‘(2) ELIGIBLE NOT-FOR-PROFIT SERVICER.— 

17 ‘‘(A) IN GENERAL.—The term ‘eligible not18 for-profit servicer’ means an entity that, on the 

19 date of enactment of the Student Aid and Fiscal 

20 Responsibility Act of 2009— 

21 ‘‘(i) meets the definition of an eligible 

22 not-for-profit holder under section 435(p), 

23 except that such term does not include eligi24 ble lenders described in paragraph (1)(D) of 

25 such section; 

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1 ‘‘(ii) notwithstanding clause (i), is the 

2 sole beneficial owner of a loan for which the 

3 special allowance rate is calculated under 

4 section 438(b)(2)(I)(vi)(II) because the loan 

5 is held by an eligible lender trustee that is 

6 an eligible not-for-profit holder as defined 

7 under section 435(p)(1)(D); or 

8 ‘‘(iii) is an affiliated entity of an eligi9 ble not-for-profit servicer described in clause 

10 (i) or (ii) that— 

11 ‘‘(I) directly employs, or will di12 rectly employ (on or before the date the 

13 entity begins servicing loans under a 

14 contract awarded by the Secretary pur15 suant to subsection (a)(3)(A)), the ma16 jority of individuals who perform stu17 dent loan servicing functions; and 

18 ‘‘(II) on such date of enactment, 

19 was performing, or had entered into a 

20 contract with a third party servicer (as 

21 such term is defined in section 481(c)) 

22 who was performing, student loan serv23 icing functions for loans made under 

24 part B of this title. 

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1 ‘‘(B) AFFILIATED ENTITY.—For the pur2 poses of subparagraph (A), the term ‘affiliated 

3 entity’ means an entity contracted to perform 

4 services for an eligible not-for-profit servicer 

5 that— 

6 ‘‘(i) is a nonprofit entity or is wholly 

7 owned by a nonprofit entity; and 

8 ‘‘(ii) is not owned or controlled, in 

9 whole or in part, by— 

10 ‘‘(I) a for-profit entity; or 

11 ‘‘(II) an entity having its prin12 cipal place of business in another 

13 State. 

14 ‘‘(3) OUTREACH SERVICES.—The term ‘outreach 

15 services’ means programs offered to students and fam16 ilies, including programs delivered in coordination 

17 with institutions of higher education that— 

18 ‘‘(A) encourage— 

19 ‘‘(i) students to attend and complete a 

20 degree or certification program at an insti21 tution of higher education; and 

22 ‘‘(ii) students and families to obtain fi23 nancial aid, but minimize the borrowing of 

24 education loans; and 

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1 ‘‘(B) deliver financial literacy and coun2 seling tools.’’. 

3 SEC. 215. INTEREST RATES. 

4 Section 455(b)(7) (20 U.S.C. 1087e(b)(7)) is amended 

5 by adding at the end the following new subparagraph: 

6 ‘‘(E) REDUCED RATES FOR UNDER7 GRADUATE FDSL ON AND AFTER JULY 1, 2012.— 

8 Notwithstanding the preceding paragraphs of 

9 this subsection and subparagraph (A) of this 

10 paragraph, for Federal Direct Stafford Loans 

11 made to undergraduate students for which the 

12 first disbursement is made on or after July 1, 

13 2012, the applicable rate of interest shall, during 

14 any 12-month period beginning on July 1 and 

15 ending on June 30, be determined on the pre16 ceding June 1 and be equal to— 

17 ‘‘(i) the bond equivalent rate of 91-day 

18 Treasury bills auctioned at the final auc19 tion held prior to such June 1; plus 

20 ‘‘(ii) 2.5 percent, 

21 except that such rate shall not exceed 6.8 per22 cent.’’. 

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1 Subtitle B—Perkins Loan Reform 

2 SEC. 221. FEDERAL DIRECT PERKINS LOANS TERMS AND 

3 CONDITIONS. 

4 Part D of title IV (20 U.S.C. 1087a et seq.) is amended 

5 by inserting after section 455 the following new section: 

6 ‘‘SEC. 455A. FEDERAL DIRECT PERKINS LOANS. 

7 ‘‘(a) DESIGNATION OF LOANS.—Loans made to bor8 rowers under this section shall be known as ‘Federal Direct 

9 Perkins Loans’. 

10 ‘‘(b) IN GENERAL.—It is the purpose of this section 

11 to authorize loans to be awarded by institutions of higher 

12 education through agreements established under section 

13 463(f). Unless otherwise specified in this section, all terms 

14 and conditions and other requirements applicable to Fed15 eral Direct Unsubsidized Stafford loans established under 

16 section 455(a)(2)(D) shall apply to loans made pursuant 

17 to this section. 

18 ‘‘(c) ELIGIBLE BORROWERS.—Any student meeting 

19 the requirements for student eligibility under section 464(b) 

20 (including graduate and professional students as defined in 

21 regulations promulgated by the Secretary) shall be eligible 

22 to borrow a Federal Direct Perkins Loan, provided the stu23 dent attends an eligible institution with an agreement with 

24 the Secretary under section 463(f), and the institution uses 

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1 its authority under that agreement to award the student 

2 a loan. 

3 ‘‘(d) LOAN LIMITS.—The annual and aggregate limits 

4 for loans under this section shall be the same as those estab5 lished under section 464, and aggregate limits shall include 

6 loans made by institutions under agreements under section 

7 463(a). 

8 ‘‘(e) APPLICABLE RATES OF INTEREST.—Loans made 

9 pursuant to this section shall bear interest, on the unpaid 

10 balance of the loan, at the rate of 5 percent per year.’’. 

11 SEC. 222. AUTHORIZATION OF APPROPRIATIONS. 

12 Section 461 (20 U.S.C. 1087aa) is amended— 

13 (1) in subsection (a), by inserting ‘‘, before July 

14 1, 2010,’’ after ‘‘The Secretary shall’’; 

15 (2) in subsection (b)— 

16 (A) in paragraph (1)— 

17 (i) by striking ‘‘(1) For the purpose’’ 

18 and inserting ‘‘For the purpose’’; and 

19 (ii) by striking ‘‘and for each of the 

20 five succeeding fiscal years’’; and 

21 (B) by striking paragraph (2); and 

22 (3) by striking subsection (c). 

23 SEC. 223. ALLOCATION OF FUNDS. 

24 Section 462 (20 U.S.C. 1087bb) is amended— 

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1 (1) in subsection (a)(1), by striking ‘‘From’’ and 

2 inserting ‘‘For any fiscal year before fiscal year 2010, 

3 from’’; and 

4 (2) in subsection (i)(1), by striking ‘‘for any fis5 cal year,’’ and inserting ‘‘for any fiscal year before 

6 fiscal year 2010,’’. 

7 SEC. 224. FEDERAL DIRECT PERKINS LOAN ALLOCATION. 

8 Part E of title IV is further amended by inserting after 

9 section 462 (20 U.S.C. 1087bb) the following: 

10 ‘‘SEC. 462A. FEDERAL DIRECT PERKINS LOAN ALLOCATION. 

11 ‘‘(a) PURPOSES.—The purposes of this section are— 

12 ‘‘(1) to allocate, among eligible and partici13 pating institutions (as such terms are defined in this 

14 section), the authority to make Federal Direct Perkins 

15 Loans under section 455A with a portion of the an16 nual loan authority described in subsection (b); and 

17 ‘‘(2) to make funds available, in accordance with 

18 section 452, to each participating institution from a 

19 portion of the annual loan authority described in sub20 section (b), in an amount not to exceed the sum of an 

21 institution’s allocation of funds under subparagraphs 

22 (A), (B), and (C) of subsection (b)(1) to enable each 

23 such institution to make Federal Direct Perkins 

24 Loans to eligible students at the institution. 

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1 ‘‘(b) AVAILABLE DIRECT PERKINS ANNUAL LOAN AU2 THORITY.— 

3 ‘‘(1) AVAILABILITY AND ALLOCATIONS.—There 

4 are hereby made available, from funds made available 

5 for loans made under part D, not to exceed 

6 $6,000,000,000 of annual loan authority for award 

7 year 2010–2011 and each succeeding award year, to 

8 be allocated as follows: 

9 ‘‘(A) The Secretary shall allocate not more 

than 1 10 ⁄2 of such funds for each award year by al11 locating to each participating institution an 

12 amount equal to the adjusted self-help need 

13 amount of the institution, as determined in ac14 cordance with subsection (c) for such award 

15 year. 

16 ‘‘(B) The Secretary shall allocate not more 

than 1 17 ⁄4 of such funds for each award year by al18 locating to each participating institution an 

19 amount equal to the low tuition incentive 

20 amount of the institution, as determined in ac21 cordance with subsection (d). 

22 ‘‘(C) The Secretary shall allocate not more 

than 1 23 ⁄4 of such funds for each award year by al24 locating to each participating institution an 

25 amount which bears the same ratio to the funds 

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1 allocated under this subparagraph as the ratio 

2 determined in accordance with subsection (e) for 

3 the calculation of the Federal Pell Grant and de4 gree recipient amount of the institution. 

5 ‘‘(2) NO FUNDS TO NON-PARTICIPATING INSTITU6 TIONS.—The Secretary shall not make funds available 

7 under this subsection to any eligible institution that 

8 is not a participating institution. The adjusted self9 help need amount (determined in accordance with 

10 subsection (c)) of an eligible institution that is not a 

11 participating institution shall not be made available 

12 to any other institution. 

13 ‘‘(c) ADJUSTED SELF-HELP NEED AMOUNT.—For the 

14 purposes of subsection (b)(1)(A), the Secretary shall cal15 culate the adjusted self-help need amount of each eligible 

16 institution for an award year as follows: 

17 ‘‘(1) USE OF BASE SELF-HELP NEED

18 AMOUNTS.— 

19 ‘‘(A) IN GENERAL.—Except as provided in 

20 paragraphs (2), (3), and (4), the adjusted self21 help need amount of each eligible institution 

22 shall be the institution’s base self-help need 

23 amount, which is the sum of— 

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1 ‘‘(i) the self-help need of the institu2 tion’s eligible undergraduate students for 

3 such award year; and 

4 ‘‘(ii) the self-help need of the institu5 tion’s eligible graduate and professional stu6 dents for such award year. 

7 ‘‘(B) UNDERGRADUATE STUDENT SELF8 HELP NEED.—To determine the self-help need of 

9 an institution’s eligible undergraduate students, 

10 the Secretary shall determine the sum of each eli11 gible undergraduate student’s average cost of at12 tendance for the second preceding award year 

13 less each such student’s expected family contribu14 tion (computed in accordance with part F) for 

15 the second preceding award year, except that, for 

16 each such eligible undergraduate student, the 

17 amount computed by such subtraction shall not 

18 be less than zero or more than the lesser of— 

19 ‘‘(i) 25 percent of the average cost of 

20 attendance with respect to such eligible stu21 dent; or 

22 ‘‘(ii) $5,500. 

23 ‘‘(C) GRADUATE AND PROFESSIONAL STU24 DENT SELF-HELP NEED.—To determine the self25 help need of an institution’s eligible graduate 

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1 and professional students, the Secretary shall de2 termine the sum of each eligible graduate and 

3 professional student’s average cost of attendance 

4 for the second preceding award year less each 

5 such student’s expected family contribution (com6 puted in accordance with part F) for such second 

7 preceding award year, except that, for each such 

8 eligible graduate and professional student, the 

9 amount computed by such subtraction shall not 

10 be less than zero or more than $8,000. 

11 ‘‘(2) RATABLE REDUCTION ADJUSTMENTS.—If 

12 the sum of the base self-help need amounts of all eligi13 ble institutions for an award year as determined 

under paragraph (1) exceeds 1 14 ⁄2 of the annual loan 

15 authority under subsection (b) for such award year, 

16 the Secretary shall ratably reduce the base self-help 

17 need amounts of all eligible institutions until the sum 

of such amounts is equal to the amount that is 1 18 ⁄2 of 

19 the annual loan authority under subsection (b). 

20 ‘‘(3) REQUIRED MINIMUM AMOUNT.—Notwith21 standing paragraph (2), the adjusted self-help need 

22 amount of each eligible institution shall not be less 

23 than the average of the institution’s total principal 

24 amount of loans made under this part for each of the 

25 5 most recent award years. 

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1 ‘‘(4) ADDITIONAL ADJUSTMENTS.—If the Sec2 retary determines that a ratable reduction under 

3 paragraph (2) results in the adjusted self-help need 

4 amount of any eligible institution being reduced 

5 below the minimum amount required under para6 graph (3), the Secretary shall— 

7 ‘‘(A) for each institution for which the min8 imum amount under paragraph (3) is not satis9 fied, increase the adjusted self-help need amount 

10 to the amount of the required minimum under 

11 such subparagraph; and 

12 ‘‘(B) ratably reduce the adjusted self-help 

13 need amounts of all eligible institutions not de14 scribed in subparagraph (A) until the sum of the 

15 adjusted self-help need amounts of all eligible institutions is equal to the amount that is 1 16 ⁄2 of the 

17 annual loan authority under subsection (b). 

18 ‘‘(d) LOW TUITION INCENTIVE AMOUNT.— 

19 ‘‘(1) IN GENERAL.—For purposes of subsection 

20 (b)(1)(B), the Secretary shall determine the low tui21 tion incentive amount for each participating institu22 tion for each award year, by calculating for each such 

23 institution the sum of— 

24 ‘‘(A) the total amount, if any (but not less 

25 than zero), by which— 

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1 ‘‘(i) the average tuition and required 

2 fees for the institution’s sector for the second 

3 preceding award year; exceeds 

4 ‘‘(ii) the tuition and required fees for 

5 the second preceding award year for each 

6 undergraduate and graduate student attend7 ing the institution who had financial need 

8 (as determined under part F); plus 

9 ‘‘(B) the total amount, if any (but not less 

10 than zero), by which— 

11 ‘‘(i) the total amount for the second 

12 preceding award year of non-Federal grant 

13 aid provided to meet the financial need of 

14 all undergraduate students attending the in15 stitution (as determined without regard to 

16 financial aid not received under this title); 

17 exceeds 

18 ‘‘(ii) the total amount for the second 

19 preceding award year, if any, by which— 

20 ‘‘(I) the tuition and required fees 

21 of each such student with such finan22 cial need; exceeds 

23 ‘‘(II) the average tuition and re24 quired fees for the institution’s sector. 

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1 ‘‘(2) RATABLE REDUCTION.—If the sum of the 

2 low tuition incentive amounts of all participating in3 stitutions for an award year as determined under 

paragraph (1) exceeds 1 4 ⁄4 of the annual loan authority 

5 under subsection (b) for such award year, the Sec6 retary shall ratably reduce the low tuition incentive 

7 amounts of all participating institutions until the 

8 sum of such amounts is equal to the amount that is 

1 9 ⁄4 of the annual loan authority under subsection (b). 

10 ‘‘(e) FEDERAL PELL GRANT AND DEGREE RECIPIENT

11 AMOUNT.—For purposes of subsection (b)(1)(C), the Sec12 retary shall determine the Federal Pell Grant and degree 

13 recipient amount for each participating institution for each 

14 award year, by calculating for each such institution the 

15 ratio of— 

16 ‘‘(1) the number of students who, during the 

17 most recent year for which data are available, ob18 tained an associate’s degree or other postsecondary de19 gree from such participating institution and, prior to 

20 obtaining such degree, received a Federal Pell Grant 

21 for attendance at any institution of higher education; 

22 to 

23 ‘‘(2) the sum of the number of students who, dur24 ing the most recent year for which data are available, 

25 obtained an associate’s degree or other postsecondary 

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1 degree from each participating institution and, prior 

2 to obtaining such degree, received a Federal Pell 

3 Grant for attendance at any institution of higher 

4 education. 

5 ‘‘(f) DEFINITIONS.—As used in this section: 

6 ‘‘(1) ANNUAL LOAN AUTHORITY.—The term ‘an7 nual loan authority’ means the total original prin8 cipal amount of loans that may be allocated and 

9 made available for an award year to make Federal 

10 Direct Perkins Loans under section 455A. 

11 ‘‘(2) AVERAGE COST OF ATTENDANCE.— 

12 ‘‘(A) IN GENERAL.—The term ‘average cost 

13 of attendance’ means the average of the attend14 ance costs for undergraduate students and for 

15 graduate and professional students, respectively, 

16 for the second preceding award year which shall 

17 include— 

18 ‘‘(i) tuition and required fees deter19 mined in accordance with subparagraph 

20 (B); 

21 ‘‘(ii) standard living expenses deter22 mined in accordance with subparagraph 

23 (C); and 

24 ‘‘(iii) books and supplies determined in 

25 accordance with subparagraph (D). 

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1 ‘‘(B) TUITION AND REQUIRED FEES.—The 

2 average undergraduate and graduate and profes3 sional tuition and required fees described in sub4 paragraph (A)(i) shall be computed on the basis 

5 of information reported by the institution to the 

6 Secretary, which shall include— 

7 ‘‘(i) total revenue received by the insti8 tution from undergraduate and graduate 

9 and professional students, respectively, for 

10 tuition and required fees for the second pre11 ceding award year; and 

12 ‘‘(ii) the institution’s full-time equiva13 lent enrollment of undergraduate and grad14 uate and professional students, respectively, 

15 for such second preceding award year. 

16 ‘‘(C) STANDARD LIVING EXPENSES.—The 

17 standard living expense described in subpara18 graph (A)(ii) is equal to the allowance, deter19 mined by an institution, for room and board 

20 costs incurred by a student, as computed in ac21 cordance with part F for the second preceding 

22 award year. 

23 ‘‘(D) BOOKS AND SUPPLIES.—The allow24 ance for books and supplies described in sub25 paragraph (A)(iii) is equal to the allowance, demstockstill on DSKH9S0YB1PROD with BILLS

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1 termined by an institution, for books, supplies, 

2 transportation, and miscellaneous personal ex3 penses, including a reasonable allowance for the 

4 documented rental or purchase of a personal 

5 computer, as computed in accordance with part 

6 F for the second preceding award year. 

7 ‘‘(3) AVERAGE TUITION AND REQUIRED FEES

8 FOR THE INSTITUTION’S SECTOR.—The term ‘average 

9 tuition and required fees for the institution’s sector’ 

10 shall be determined by the Secretary for each of the 

11 categories described in section 132(d). 

12 ‘‘(4) ELIGIBLE INSTITUTION.—The term ‘eligible 

13 institution’ means an institution of higher education 

14 that participates in the Federal Direct Stafford Loan 

15 Program. 

16 ‘‘(5) PARTICIPATING INSTITUTION.—The term 

17 ‘participating institution’ means an institution of 

18 higher education that has an agreement under section 

19 463(f). 

20 ‘‘(6) SECTOR.—The term ‘sector’ means each of 

21 the categories described in section 132(d).’’. 

22 SEC. 225. AGREEMENTS WITH INSTITUTIONS OF HIGHER 

23 EDUCATION. 

24 (a) AMENDMENTS.—Section 463 (20 U.S.C. 1087cc) is 

25 amended— 

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1 (1) in subsection (a)— 

2 (A) in the heading, by inserting ‘‘FOR

3 LOANS MADE BEFORE JULY 1, 2010’’ after 

4 ‘‘AGREEMENTS’’; 

5 (B) in paragraph (3)(A), by inserting ‘‘be6 fore July 1, 2010’’ after ‘‘students’’; 

7 (C) in paragraph (4), by striking ‘‘there8 on—’’ and all that follows and inserting ‘‘there9 on, if the institution has failed to maintain an 

10 acceptable collection record with respect to such 

11 loan, as determined by the Secretary in accord12 ance with criteria established by regulation, the 

13 Secretary may require the institution to assign 

14 such note or agreement to the Secretary, without 

15 recompense;’’; and 

16 (D) in paragraph (5), by striking ‘‘and the 

17 Secretary shall apportion’’ and all that follows 

18 through ‘‘in accordance with section 462’’ and 

19 inserting ‘‘and the Secretary shall return a por20 tion of funds from loan repayments to the insti21 tution as specified in section 466(b)’’; 

22 (2) by amending subsection (b) to read as fol23 lows: 

24 ‘‘(b) ADMINISTRATIVE EXPENSES.—An institution 

25 that has entered into an agreement under subsection (a) 

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1 shall be entitled, for each fiscal year during which it serv2 ices student loans from a student loan fund established 

3 under such agreement, to a payment in lieu of reimburse4 ment for its expenses in servicing student loans made before 

5 July 1, 2010. Such payment shall be equal to 0.50 percent 

6 of the outstanding principal and interest balance of such 

7 loans being serviced by the institution as of September 30 

8 of each fiscal year.’’; and 

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

10 ‘‘(f) CONTENTS OF AGREEMENTS FOR LOANS MADE ON

11 OR AFTER JULY 1, 2010.—An agreement with any institu12 tion of higher education that elects to participate in the 

13 Federal Direct Perkins Loan program under section 455A 

14 shall provide— 

15 ‘‘(1) for the establishment and maintenance of a 

16 Direct Perkins Loan program at the institution under 

17 which the institution shall use loan authority allo18 cated under section 462A to make loans to eligible 

19 students attending the institution; 

20 ‘‘(2) that the institution, unless otherwise speci21 fied in this subsection, shall operate the program con22 sistent with the requirements of agreements estab23 lished under section 454; 

24 ‘‘(3) that the institution will pay matching 

25 funds, quarterly, in an amount agreed to by the instimstockstill on DSKH9S0YB1PROD with BILLS

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1 tution and the Secretary, to an escrow account ap2 proved by the Secretary, for the purpose of providing 

3 loan benefits to borrowers; 

4 ‘‘(4) that if the institution fails to meet the re5 quirements of paragraph (3), the Secretary shall sus6 pend or terminate the institution’s eligibility to make 

7 Federal Direct Perkins Loans under section 455A 

8 until such time as the Secretary determines, in ac9 cordance with section 498, that the institution has 

10 met the requirements of such paragraph; and 

11 ‘‘(5) that if the institution ceases to be an eligi12 ble institution within the meaning of section 435(a) 

13 by reason of having a cohort default rate that exceeds 

14 the threshold percentage specified paragraph (2) of 

15 such section, the Secretary shall suspend or terminate 

16 the institution’s eligibility to make Federal Direct 

17 Perkins Loans under section 455A unless and until 

18 the institution would qualify for a resumption of eli19 gible institution status under such section.’’. 

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

21 paragraph (2) of subsection (a) shall take effect on October 

22 1, 2010. 

23 SEC. 226. STUDENT LOAN INFORMATION BY ELIGIBLE IN24 STITUTIONS. 

25 Section 463A (20 U.S.C. 1087cc–1) is amended— 

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1 (1) in subsection (a), by striking ‘‘Each institu2 tion’’ and inserting ‘‘For loans made before July 1, 

3 2010, each institution’’; and 

4 (2) in subsection (b), by striking ‘‘Each institu5 tion’’ and inserting ‘‘For loans made before July 1, 

6 2010, each institution’’. 

7 SEC. 227. TERMS OF LOANS. 

8 (a) Section 464 (20 U.S.C. 1087dd) is amended— 

9 (1) in subsection (a)(1), by striking ‘‘section 

10 463’’ and inserting ‘‘section 463(a)’’; 

11 (2) in subsection (b)(1), by inserting ‘‘made be12 fore July 1, 2010,’’ after ‘‘A loan’’; 

13 (3) in subsection (c)— 

14 (A) in paragraph (1), by inserting ‘‘made 

15 before July 1, 2010,’’ after ‘‘a loan’’; 

16 (B) in paragraph (2)— 

17 (i) in subparagraph (A), by inserting 

18 ‘‘made before July 1, 2010,’’ after ‘‘any 

19 loan’’; and 

20 (ii) in subparagraph (B), by inserting 

21 ‘‘made before July 1, 2010,’’ after ‘‘any 

22 loan’’; 

23 (C) in paragraph (3)(B), by inserting ‘‘for 

24 a loan made before July 1, 2010,’’ after ‘‘during 

25 the repayment period’’; 

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1 (D) in paragraph (4), by inserting ‘‘before 

2 July 1, 2010,’’ after ‘‘for a loan made’’; 

3 (E) in paragraph (5), by striking ‘‘The in4 stitution’’ and inserting ‘‘For loans made before 

5 July 1, 2010, the institution’’; and 

6 (F) in paragraph (6), by inserting ‘‘made 

7 before July 1, 2010,’’ after ‘‘of loans’’; 

8 (4) in subsection (d), by inserting ‘‘made before 

9 July 1, 2010,’’ before ‘‘from the student loan fund’’; 

10 (5) in subsection (e), by inserting ‘‘with respect 

11 to loans made before July 1, 2010, and’’ before ‘‘as 

12 documented in accordance with paragraph (2),’’; 

13 (6) by repealing subsection (f); 

14 (7) in subsection (g)(1), by inserting ‘‘and before 

15 July 1, 2010,’’ after ‘‘January 1, 1986,’’; 

16 (8) in subsection (h)— 

17 (A) in paragraph (1)(A) by inserting ‘‘be18 fore July 1, 2010,’’ after ‘‘made under this 

19 part’’; and 

20 (B) in paragraph (2), by inserting ‘‘before 

21 July 1, 2010,’’ after ‘‘under this part’’; and 

22 (9) in subsection (j)(1), by inserting ‘‘before July 

23 1, 2010,’’ after ‘‘under this part’’. 

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1 SEC. 228. DISTRIBUTION OF ASSETS FROM STUDENT LOAN 

2 FUNDS. 

3 (a) Section 465 (20 U.S.C. 1087ee) is amended— 

4 (1) in subsection (a), by inserting ‘‘and before 

5 July 1, 2010,’’ after ‘‘June 30, 1972,’’; and 

6 (2) by amending subsection (b) to read as fol7 lows: 

8 ‘‘(b) REIMBURSEMENT FOR CANCELLATIONS.— 

9 ‘‘(1) ASSIGNED LOANS.—In the case of loans 

10 made under this part before July 1, 2010, and that 

11 are assigned to the Secretary, the Secretary shall, 

12 from amounts repaid each quarter on assigned Per13 kins Loans made before July 1, 2010, pay to each in14 stitution for each quarter an amount equal to— 

15 ‘‘(A) the aggregate of the amounts of loans 

16 from its student loan fund that are canceled pur17 suant to this section for such quarter, minus 

18 ‘‘(B) an amount equal to the aggregate of 

19 the amounts of any such loans so canceled that 

20 were made from Federal capital contributions to 

21 its student loan fund. 

22 ‘‘(2) RETAINED LOANS.—In the case of loans 

23 made under this part before July 1, 2010, and that 

24 are retained by the institution for servicing, the insti25 tution shall deduct from loan repayments owed to the 

26 Secretary under section 466, an amount equal to— 

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1 ‘‘(A) the aggregate of the amounts of loans 

2 from its student loan fund that are canceled pur3 suant to this section for such quarter, minus 

4 ‘‘(B) an amount equal to the aggregate of 

5 the amounts of any such loans so canceled that 

6 were made from Federal capital contributions to 

7 its student loan fund.’’. 

8 (b) Section 466 (20 U.S.C. 1087ff) is amended to read 

9 as follows: 

10 ‘‘SEC. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN 

11 FUNDS. 

12 ‘‘(a) CAPITAL DISTRIBUTION.—Beginning July 1, 

13 2010, there shall be a capital distribution of the balance 

14 of the student loan fund established under this part by each 

15 institution of higher education as follows: 

16 ‘‘(1) For the quarter beginning July 1, 2010, the 

17 Secretary shall first be paid, no later than September 

18 30, 2010, an amount that bears the same ratio to the 

19 cash balance in such fund at the close of June 30, 

20 2010, as the total amount of the Federal capital con21 tributions to such fund by the Secretary under this 

22 part bears to— 

23 ‘‘(A) the sum of such Federal contributions 

24 and the institution’s capital contributions to 

25 such fund, less 

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1 ‘‘(B) an amount equal to— 

2 ‘‘(i) the institution’s outstanding ad3 ministrative costs as calculated under sec4 tion 463(b), 

5 ‘‘(ii) outstanding charges assessed 

6 under section 464(c)(1)(H), and 

7 ‘‘(iii) outstanding loan cancellation 

8 costs incurred under section 465. 

9 ‘‘(2) At the end of each quarter subsequent to the 

10 quarter ending September 30, 2010, the Secretary 

11 shall first be paid an amount that bears the same 

12 ratio to the cash balance in such fund at the close of 

13 the preceding quarter, as the total amount of the Fed14 eral capital contributions to such fund by the Sec15 retary under this part bears to— 

16 ‘‘(A) the sum of such Federal contributions 

17 and the institution’s capital contributions to 

18 such fund, less 

19 ‘‘(B) an amount equal to— 

20 ‘‘(i) the institution’s administrative 

21 costs incurred for that quarter as calculated 

22 under section 463(b), 

23 ‘‘(ii) charges assessed for that quarter 

24 under section 464(c)(1)(H), and 

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1 ‘‘(iii) loan cancellation costs incurred 

2 for that quarter under section 465. 

3 ‘‘(3)(A) The Secretary shall calculate the 

4 amounts due to the Secretary under paragraph (1) 

5 (adjusted in accordance with subparagraph (B), as 

6 appropriate) and paragraph (2) and shall promptly 

7 inform the institution of such calculated amounts. 

8 ‘‘(B) In the event that, prior to the date of enact9 ment of the Student Aid and Fiscal Responsibility 

10 Act of 2009, an institution made a short-term, inter11 est-free loan to the institution’s student loan fund es12 tablished under this part in anticipation of collections 

13 or receipt of Federal capital contributions, and the 

14 institution demonstrates to the Secretary, on or before 

15 June 30, 2010, that such loan will still be out16 standing after June 30, 2010, the Secretary shall sub17 tract the amount of such outstanding loan from the 

18 cash balance of the institution’s student loan fund 

19 that is used to calculate the amount due to the Sec20 retary under paragraph (1). An adjustment of an 

21 amount due to the Secretary under this subparagraph 

22 shall be made by the Secretary on a case-by-case 

23 basis. 

24 ‘‘(4) Any remaining balance at the end of a 

25 quarter after a payment under paragraph (1) or (2) 

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1 shall be retained by the institution for use at its dis2 cretion. Any balance so retained shall be withdrawn 

3 from the student loan fund and shall not be counted 

4 in calculating amounts owed to the Secretary for sub5 sequent quarters. 

6 ‘‘(5) Each institution shall make the quarterly 

7 payments to the Secretary described in paragraph (2) 

8 until all outstanding Federal Perkins Loans at that 

9 institution have been assigned to the Secretary and 

10 there are no funds remaining in the institution’s stu11 dent loan fund. 

12 ‘‘(6) In the event that the institution’s adminis13 trative costs, charges, and cancellation costs described 

14 in paragraph (2) for a quarter exceed the amount 

15 owed to the Secretary under paragraphs (1) and (2) 

16 for that quarter, no payment shall be due to the Sec17 retary from the institution for that quarter and the 

18 Secretary shall pay the institution, from funds real19 ized from the collection of assigned Federal Perkins 

20 Loans made before July 1, 2010, an amount that, 

21 when combined with the amount retained by the in22 stitution under paragraphs (1) and (2), equals the 

23 full amount of such administrative costs, charges, and 

24 cancellation costs. 

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1 ‘‘(b) ASSIGNMENT OF OUTSTANDING LOANS.—Begin2 ning July 1, 2010, an institution of higher education may 

3 assign all outstanding loans made under this part before 

4 July 1, 2010, to the Secretary, consistent with the require5 ments of section 463(a)(5). In collecting loans so assigned, 

6 the Secretary shall pay an institution an amount that con7 stitutes the same fraction of such collections as the fraction 

8 of the cash balance that the institution retains under sub9 section (a)(2), but determining such fraction without regard 

10 to subparagraph (B)(i) of such subsection.’’. 

11 SEC. 229. IMPLEMENTATION OF NON-TITLE IV REVENUE RE12 QUIREMENT. 

13 (a) AMENDMENTS.—Section 487(d) (20 U.S.C. 

14 1094(d)) is amended— 

15 (1) in paragraph (1)(E), by striking ‘‘July 1, 

16 2011’’ and inserting ‘‘July 1, 2012’’; 

17 (2) in paragraph (1)(F)— 

18 (A) by redesignating clauses (iii), (iv), and 

19 (v) as clauses (iv), (v), and (vi), respectively; 

20 and 

21 (B) by inserting after clause (ii) the fol22 lowing new clause: 

23 ‘‘(iii) for the period beginning July 1, 

24 2010, and ending July 1, 2012, the amount 

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1 of funds the institution received from loans 

2 disbursed under section 455A;’’;. 

3 (3) in paragraph (2)(A), by striking ‘‘two con4 secutive’’ and inserting ‘‘three consecutive’’; and 

5 (4) in paragraph (2)(B)— 

6 (A) by striking ‘‘any institutional fiscal 

7 year’’ and inserting ‘‘two consecutive institu8 tional fiscal years’’; 

9 (B) by striking ‘‘the two institutional fiscal 

10 years after the institutional fiscal year’’ and in11 serting ‘‘the institutional fiscal year after the 

12 second consecutive institutional fiscal year’’; and 

13 (C) by striking ‘‘two consecutive’’ in clause 

14 (ii) of such paragraph and inserting ‘‘three con15 secutive’’. 

16 (b) TEMPORARY EFFECT.—The amendments made by 

17 paragraphs (3) and (4) of subsection (a)— 

18 (1) shall take effect on the date of enactment of 

19 this Act; and 

20 (2) shall cease to be effective on July 1, 2012. 

21 SEC. 230. ADMINISTRATIVE EXPENSES. 

22 Section 489(a) (20 U.S.C. 1096(a)) is amended— 

23 (1) in the second sentence, by striking ‘‘or under 

24 part E of this title’’; and 

25 (2) in the third sentence— 

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1 (A) by inserting ‘‘and’’ after ‘‘subpart 3 of 

2 part A,’’; and 

3 (B) by striking ‘‘compensation of students,’’ 

4 and all that follows through the period and in5 serting ‘‘compensation of students.’’. 

6 TITLE III—MODERNIZATION, 

7 RENOVATION, AND REPAIR 

8 Subtitle A—Elementary and 

9 Secondary Education 

10 SEC. 301. DEFINITIONS. 

11 In this subtitle: 

12 (1) The term ‘‘Bureau-funded school’’ has the 

13 meaning given such term in section 1141 of the Edu14 cation Amendments of 1978 (25 U.S.C. 2021). 

15 (2) The term ‘‘charter school’’ has the meaning 

16 given such term in section 5210 of the Elementary 

17 and Secondary Education Act of 1965 (20 U.S.C. 

18 7221i). 

19 (3) The term ‘‘CHPS Criteria’’ means the green 

20 building rating program developed by the Collabo21 rative for High Performance Schools. 

22 (4) The term ‘‘Energy Star’’ means the Energy 

23 Star program of the United States Department of En24 ergy and the United States Environmental Protection 

25 Agency. 

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1 (5) The term ‘‘Green Globes’’ means the Green 

2 Building Initiative environmental design and rating 

3 system referred to as Green Globes. 

4 (6) The term ‘‘LEED Green Building Rating 

5 System’’ means the United States Green Building 

6 Council Leadership in Energy and Environmental 

7 Design green building rating standard referred to as 

8 LEED Green Building Rating System. 

9 (7) The term ‘‘local educational agency’’— 

10 (A) has the meaning given such term in sec11 tion 9101 of the Elementary and Secondary 

12 Education Act of 1965 (20 U.S.C. 7801); 

13 (B) includes any public charter school that 

14 constitutes a local educational agency under 

15 State law; and 

16 (C) includes the Recovery School District of 

17 Louisiana. 

18 (8) The term ‘‘outlying area’’— 

19 (A) means the United States Virgin Islands, 

20 Guam, American Samoa, and the Common21 wealth of the Northern Mariana Islands; and 

22 (B) includes the Republic of Palau. 

23 (9) The term ‘‘public school facilities’’ means ex24 isting public elementary or secondary school facilities, 

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1 isting facilities planned for adaptive reuse as public 

2 charter school facilities. 

3 (10) The term ‘‘Secretary’’ means the Secretary 

4 of Education. 

5 (11) The term ‘‘State’’ means each of the 50 

6 States, the District of Columbia, and the Common7 wealth of Puerto Rico. 

8 CHAPTER 1—GRANTS FOR MODERNIZA9 TION, RENOVATION, OR REPAIR OF 

10 PUBLIC SCHOOL FACILITIES 

11 SEC. 311. PURPOSE. 

12 Grants under this chapter shall be for the purpose of 

13 modernizing, renovating, or repairing public school facili14 ties (including early learning facilities, as appropriate), 

15 based on the need of the facilities for such improvements, 

16 to ensure that public school facilities are safe, healthy, high17 performing, and technologically up-to-date. 

18 SEC. 312. ALLOCATION OF FUNDS. 

19 (a) RESERVATION.— 

20 (1) IN GENERAL.—From the amount appro21 priated to carry out this chapter for each fiscal year 

22 pursuant to section 345(a), the Secretary shall reserve 

23 2 percent of such amount, consistent with the purpose 

24 described in section 311— 

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1 (A) to provide assistance to the outlying 

2 areas; and 

3 (B) for payments to the Secretary of the In4 terior to provide assistance to Bureau-funded 

5 schools. 

6 (2) USE OF RESERVED FUNDS.—In each fiscal 

7 year, the amount reserved under paragraph (1) shall 

8 be divided between the uses described in subpara9 graphs (A) and (B) of such paragraph in the same 

10 proportion as the amount reserved under section 

11 1121(a) of the Elementary and Secondary Education 

12 Act of 1965 (20 U.S.C. 6331(a)) is divided between 

13 the uses described in paragraphs (1) and (2) of such 

14 section 1121(a) in such fiscal year. 

15 (3) DISTRESSED AREAS AND NATURAL DISAS16 TERS.—From the amount appropriated to carry out 

17 this chapter for each fiscal year pursuant to section 

18 345(a), the Secretary shall reserve 5 percent of such 

19 amount for grants to— 

20 (A) local educational agencies serving geo21 graphic areas with significant economic distress, 

22 to be used consistent with the purpose described 

23 in section 311 and the allowable uses of funds 

24 described in section 313; and 

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1 (B) local educational agencies serving geo2 graphic areas recovering from a natural disaster, 

3 to be used consistent with the purpose described 

4 in section 321 and the allowable uses of funds 

5 described in section 323. 

6 (b) ALLOCATION TO STATES.— 

7 (1) STATE-BY-STATE ALLOCATION.—Of the 

8 amount appropriated to carry out this chapter for 

9 each fiscal year pursuant to section 345(a), and not 

10 reserved under subsection (a), each State shall be allo11 cated an amount in proportion to the amount re12 ceived by all local educational agencies in the State 

13 under part A of title I of the Elementary and Sec14 ondary Education Act of 1965 (20 U.S.C. 6311 et 

15 seq.) for the previous fiscal year relative to the total 

16 amount received by all local educational agencies in 

17 every State under such part for such fiscal year. 

18 (2) STATE ADMINISTRATION.—A State may re19 serve up to 1 percent of its allocation under para20 graph (1) to carry out its responsibilities under this 

21 chapter, which include— 

22 (A) providing technical assistance to local 

23 educational agencies; 

24 (B) developing an online, publicly search25 able database that includes an inventory of pubmstockstill on DSKH9S0YB1PROD with BILLS

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1 lic school facilities in the State, including for 

2 each such facility, its design, condition, mod3 ernization, renovation and repair needs, utiliza4 tion, energy use, and carbon footprint; and 

5 (C) creating voluntary guidelines for high6 performing school buildings, including guidelines 

7 concerning the following: 

8 (i) Site location, storm water manage9 ment, outdoor surfaces, outdoor lighting, 

10 and transportation, including public transit 

11 and pedestrian and bicycle accessability. 

12 (ii) Outdoor water systems, land13 scaping to minimize water use, including 

14 elimination of irrigation systems for land15 scaping, and indoor water use reduction. 

16 (iii) Energy efficiency (including min17 imum and superior standards, such as for 

18 heating, ventilation, and air conditioning 

19 systems), use of alternative energy sources, 

20 commissioning, and training. 

21 (iv) Use of durable, sustainable mate22 rials and waste reduction. 

23 (v) Indoor environmental quality, such 

24 as day lighting in classrooms, lighting qual25 ity, indoor air quality (including with refmstockstill on DSKH9S0YB1PROD with BILLS

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1 erence to reducing the incidence and effects 

2 of asthma and other respiratory illnesses), 

3 acoustics, and thermal comfort. 

4 (vi) Operations and management, such 

5 as use of energy-efficient equipment, indoor 

6 environmental management plan, mainte7 nance plan, and pest management. 

8 (3) GRANTS TO LOCAL EDUCATIONAL AGEN9 CIES.—From the amount allocated to a State under 

10 paragraph (1), each eligible local educational agency 

11 in the State shall receive an amount in proportion to 

12 the amount received by such local educational agency 

13 under part A of title I of the Elementary and Sec14 ondary Education Act of 1965 (20 U.S.C. 6311 et 

15 seq.) for the previous fiscal year relative to the total 

16 amount received by all local educational agencies in 

17 the State under such part for such fiscal year, except 

18 that no local educational agency that received funds 

19 under such part for such fiscal year shall receive a 

20 grant of less than $5,000 in any fiscal year under 

21 this chapter. 

22 (4) SPECIAL RULE.—Section 1122(c)(3) of the 

23 Elementary and Secondary Education Act of 1965 

24 (20 U.S.C. 6332(c)(3)) shall not apply to paragraph 

25 (1) or (3). 

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1 (c) SPECIAL RULES.— 

2 (1) DISTRIBUTIONS BY SECRETARY.—The Sec3 retary shall make and distribute the reservations and 

4 allocations described in subsections (a) and (b) not 

5 later than 120 days after an appropriation of funds 

6 for this chapter is made. 

7 (2) DISTRIBUTIONS BY STATES.—A State shall 

8 make and distribute the allocations described in sub9 section (b)(3) within 90 days of receiving such funds 

10 from the Secretary. 

11 SEC. 313. ALLOWABLE USES OF FUNDS. 

12 A local educational agency receiving a grant under 

13 this chapter shall use the grant for modernization, renova14 tion, or repair of public school facilities (including early 

15 learning facilities, as appropriate), including— 

16 (1) repair, replacement, or installation of roofs, 

17 including extensive, intensive or semi-intensive green 

18 roofs, electrical wiring, water supply and plumbing 

19 systems, sewage systems, storm water runoff systems, 

20 lighting systems, building envelope, windows, ceilings, 

21 flooring, or doors, including security doors; 

22 (2) repair, replacement, or installation of heat23 ing, ventilation, or air conditioning systems, includ24 ing insulation, and conducting indoor air quality as25 sessments; 

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1 (3) compliance with fire, health, seismic, and 

2 safety codes, including professional installation of fire 

3 and life safety alarms, and modernizations, renova4 tions, and repairs that ensure that schools are pre5 pared for emergencies, such as improving building in6 frastructure to accommodate security measures and 

7 installing or upgrading technology to ensure that 

8 schools are able to respond to emergencies such as acts 

9 of terrorism, campus violence, and natural disasters; 

10 (4) retrofitting necessary to increase the energy 

11 efficiency and water efficiency of public school facili12 ties; 

13 (5) modifications necessary to make facilities ac14 cessible in compliance with the Americans with Dis15 abilities Act of 1990 (42 U.S.C. 12101 et seq.) and 

16 section 504 of the Rehabilitation Act of 1973 (29 

17 U.S.C. 794); 

18 (6) abatement, removal, or interim controls of 

19 asbestos, polychlorinated biphenyls, mold, mildew, 

20 lead-based hazards, including lead-based paint haz21 ards, or a proven carcinogen; 

22 (7) measures designed to reduce or eliminate 

23 human exposure to classroom noise and environ24 mental noise pollution; 

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1 (8) modernization, renovation, or repair nec2 essary to reduce the consumption of coal, electricity, 

3 land, natural gas, oil, or water; 

4 (9) installation or upgrading of educational 

5 technology infrastructure; 

6 (10) modernization, renovation, or repair of 

7 science and engineering laboratories, libraries, and 

8 career and technical education facilities, and im9 provements to building infrastructure to accommodate 

10 bicycle and pedestrian access; 

11 (11) installation or upgrading of renewable en12 ergy generation and heating systems, including solar, 

13 photovoltaic, wind, biomass (including wood pellet 

14 and woody biomass), waste-to-energy, and solar-ther15 mal and geothermal systems, and for energy audits; 

16 (12) measures designed to reduce or eliminate 

17 human exposure to airborne particles such as dust, 

18 sand, and pollens; 

19 (13) creating greenhouses, gardens (including 

20 trees), and other facilities for environmental, sci21 entific, or other educational purposes, or to produce 

22 energy savings; 

23 (14) modernizing, renovating, or repairing phys24 ical education facilities for students, including up25 grading or installing recreational structures made 

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1 from post-consumer recovered materials in accordance 

2 with the comprehensive procurement guidelines pre3 pared by the Administrator of the Environmental 

4 Protection Agency under section 6002(e) of the Solid 

5 Waste Disposal Act (42 U.S.C. 6962(e)); 

6 (15) other modernization, renovation, or repair 

7 of public school facilities to— 

8 (A) improve teachers’ ability to teach and 

9 students’ ability to learn; 

10 (B) ensure the health and safety of students 

11 and staff; 

12 (C) make them more energy efficient; or 

13 (D) reduce class size; and 

14 (16) required environmental remediation related 

15 to modernization, renovation, or repair described in 

16 paragraphs (1) through (15). 

17 SEC. 314. PRIORITY PROJECTS. 

18 In selecting a project under section 313, a local edu19 cational agency may give priority to projects involving the 

20 abatement, removal, or interim controls of asbestos, poly21 chlorinated biphenyls, mold, mildew, lead-based hazards, 

22 including lead-based paint hazards, or a proven carcinogen. 

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1 CHAPTER 2—SUPPLEMENTAL GRANTS 

2 FOR LOUISIANA, MISSISSIPPI, AND 

3 ALABAMA 

4 SEC. 321. PURPOSE. 

5 Grants under this chapter shall be for the purpose of 

6 modernizing, renovating, repairing, or constructing public 

7 school facilities, including, where applicable, early learning 

8 facilities, based on the need for such improvements or con9 struction, to ensure that public school facilities are safe, 

10 healthy, high-performing, and technologically up-to-date. 

11 SEC. 322. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES. 

12 (a) IN GENERAL.—Of the amount appropriated to 

13 carry out this chapter for each fiscal year pursuant to sec14 tion 345(b), the Secretary shall allocate to local educational 

15 agencies in Louisiana, Mississippi, and Alabama an 

16 amount equal to the infrastructure damage inflicted on 

17 public school facilities in each such district by Hurricane 

18 Katrina or Hurricane Rita in 2005 relative to the total 

19 of such infrastructure damage so inflicted in all such dis20 tricts, combined. 

21 (b) DISTRIBUTION BY SECRETARY.—The Secretary 

22 shall determine and distribute the allocations described in 

23 subsection (a) not later than 120 days after an appropria24 tion of funds for this chapter is made. 

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1 SEC. 323. ALLOWABLE USES OF FUNDS. 

2 A local educational agency receiving a grant under 

3 this chapter shall use the grant for one or more of the activi4 ties described in section 313, except that an agency receiv5 ing a grant under this chapter also may use the grant for 

6 the construction of new public school facilities. 

7 CHAPTER 3—GENERAL PROVISIONS 

8 SEC. 331. IMPERMISSIBLE USES OF FUNDS. 

9 No funds received under this subtitle may be used for— 

10 (1) payment of maintenance costs, including 

11 routine repairs classified as current expenditures 

12 under State or local law; 

13 (2) stadiums or other facilities primarily used 

14 for athletic contests or exhibitions or other events for 

15 which admission is charged to the general public; 

16 (3) improvement or construction of facilities the 

17 purpose of which is not the education of children, in18 cluding central office administration or operations or 

19 logistical support facilities; or 

20 (4) purchasing carbon offsets. 

21 SEC. 332. SUPPLEMENT, NOT SUPPLANT. 

22 A local educational agency receiving a grant under 

23 this subtitle shall use such Federal funds only to supplement 

24 and not supplant the amount of funds that would, in the 

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1 tion, renovation, repair, and construction of public school 

2 facilities. 

3 SEC. 333. PROHIBITION REGARDING STATE AID. 

4 A State shall not take into consideration payments 

5 under this subtitle in determining the eligibility of any 

6 local educational agency in that State for State aid, or the 

7 amount of State aid, with respect to free public education 

8 of children. 

9 SEC. 334. MAINTENANCE OF EFFORT. 

10 (a) IN GENERAL.—A local educational agency may re11 ceive a grant under this subtitle for any fiscal year only 

12 if either the combined fiscal effort per student or the aggre13 gate expenditures of the agency and the State involved with 

14 respect to the provision of free public education by the agen15 cy for the preceding fiscal year was not less than 90 percent 

16 of the combined fiscal effort or aggregate expenditures for 

17 the second preceding fiscal year. 

18 (b) REDUCTION IN CASE OF FAILURE TO MEET MAIN19 TENANCE OF EFFORT REQUIREMENT.— 

20 (1) IN GENERAL.—The State educational agency 

21 shall reduce the amount of a local educational agen22 cy’s grant in any fiscal year in the exact proportion 

23 by which a local educational agency fails to meet the 

24 requirement of subsection (a) by falling below 90 per25 cent of both the combined fiscal effort per student and 

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1 aggregate expenditures (using the measure most favor2 able to the local agency). 

3 (2) SPECIAL RULE.—No such lesser amount shall 

4 be used for computing the effort required under sub5 section (a) for subsequent years. 

6 (c) WAIVER.—The Secretary shall waive the require7 ments of this section if the Secretary determines that a 

8 waiver would be equitable due to— 

9 (1) exceptional or uncontrollable circumstances, 

10 such as a natural disaster; or 

11 (2) a precipitous decline in the financial re12 sources of the local educational agency. 

13 SEC. 335. SPECIAL RULE ON CONTRACTING. 

14 Each local educational agency receiving a grant under 

15 this subtitle shall ensure that, if the agency carries out mod16 ernization, renovation, repair, or construction through a 

17 contract, the process for any such contract ensures the max18 imum number of qualified bidders, including local, small, 

19 minority, and women- and veteran-owned businesses, 

20 through full and open competition. 

21 SEC. 336. USE OF AMERICAN IRON, STEEL, AND MANUFAC22 TURED GOODS. 

23 (a) IN GENERAL.—None of the funds appropriated or 

24 otherwise made available by this subtitle may be used for 

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1 struction of a public school facility unless all of the iron, 

2 steel, and manufactured goods used in the project are pro3 duced in the United States. 

4 (b) EXCEPTIONS.—Subsection (a) shall not apply in 

5 any case or category of cases in which the Secretary finds 

6 that— 

7 (1) applying subsection (a) would be inconsistent 

8 with the public interest; 

9 (2) iron, steel, and the relevant manufactured 

10 goods are not produced in the United States in suffi11 cient and reasonably available quantities and of a 

12 satisfactory quality; or 

13 (3) inclusion of iron, steel, and manufactured 

14 goods produced in the United States will increase the 

15 cost of the overall project by more than 25 percent. 

16 (c) PUBLICATION OF JUSTIFICATION.—If the Secretary 

17 determines that it is necessary to waive the application of 

18 subsection (a) based on a finding under subsection (b), the 

19 Secretary shall publish in the Federal Register a detailed 

20 written justification of the determination. 

21 (d) CONSTRUCTION.—This section shall be applied in 

22 a manner consistent with United States obligations under 

23 international agreements. 

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1 SEC. 337. LABOR STANDARDS. 

2 The grant programs under this subtitle are applicable 

3 programs (as that term is defined in section 400 of the Gen4 eral Education Provisions Act (20 U.S.C. 1221)) subject to 

5 section 439 of such Act (20 U.S.C. 1232b). 

6 SEC. 338. CHARTER SCHOOLS. 

7 (a) IN GENERAL.—A local educational agency receiv8 ing an allocation under this subtitle shall reserve an 

9 amount of that allocation for charter schools within its ju10 risdiction for modernization, renovation, repair, and con11 struction of charter school facilities. 

12 (b) DETERMINATION OF RESERVED AMOUNT.—The 

13 amount to be reserved by a local educational agency under 

14 subsection (a) shall be determined based on the combined 

15 percentage of students counted under section 1113(a)(5) of 

16 the Elementary and Secondary Education Act of 1965 (20 

17 U.S.C. 6313(a)(5)) in the schools of the agency who— 

18 (1) are enrolled in charter schools; and 

19 (2) the local educational agency, in consultation 

20 with the authorized public chartering agency, expects 

21 to be enrolled, during the year with respect to which 

22 the reservation is made, in charter schools that are 

23 scheduled to commence operation during such year. 

24 (c) SCHOOL SHARE.—Individual charter schools shall 

25 receive a share of the amount reserved under subsection (a) 

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1 tion, repair, or construction, as determined by the local edu2 cational agency in consultation with charter school admin3 istrators. 

4 (d) EXCESS FUNDS.—After the consultation described 

5 in subsection (c), if the local educational agency determines 

6 that the amount of funds reserved under subsection (a) ex7 ceeds the modernization, renovation, repair, and construc8 tion needs of charter schools within the local educational 

9 agency’s jurisdiction, the agency may use the excess funds 

10 for other public school facility modernization, renovation, 

11 repair, or construction consistent with this subtitle and is 

12 not required to carry over such funds to the following fiscal 

13 year for use for charter schools. 

14 SEC. 339. GREEN SCHOOLS. 

15 (a) IN GENERAL.—Of the funds appropriated for a 

16 given fiscal year and made available to a local educational 

17 agency to carry out this subtitle, the local educational agen18 cy shall use not less than the applicable percentage (de19 scribed in subsection (b)) of such funds for public school 

20 modernization, renovation, repair, or construction that are 

21 certified, verified, or consistent with any applicable provi22 sions of— 

23 (1) the LEED Green Building Rating System; 

24 (2) Energy Star; 

25 (3) the CHPS Criteria; 

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1 (4) Green Globes; or 

2 (5) an equivalent program adopted by the State, 

3 or another jurisdiction with authority over the local 

4 educational agency, that includes a verifiable method 

5 to demonstrate compliance with such program. 

6 (b) APPLICABLE PERCENTAGES.—The applicable per7 centage described in subsection (a) is— 

8 (1) for funds appropriated in fiscal year 2010, 

9 50 percent; and 

10 (2) for funds appropriated in fiscal year 2011, 

11 75 percent. 

12 (c) RULE OF CONSTRUCTION.—Nothing in this section 

13 shall be construed to prohibit a local educational agency 

14 from using sustainable, domestic hardwood lumber as 

15 ascertained through the forest inventory and analysis pro16 gram of the Forest Service of the Department of Agriculture 

17 under the Forest and Rangeland Renewable Resources Re18 search Act of 1978 (16 U.S.C. 1641 et seq.) for public school 

19 modernization, renovation, repairs, or construction. 

20 (d) TECHNICAL ASSISTANCE.—The Secretary, in con21 sultation with the Secretary of Energy and the Adminis22 trator of the Environmental Protection Agency, shall pro23 vide outreach and technical assistance to States and local 

24 educational agencies concerning the best practices in school 

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1 cluding those related to student academic achievement, stu2 dent and staff health, energy efficiency, and environmental 

3 protection. 

4 SEC. 340. REPORTING. 

5 (a) REPORTS BY LOCAL EDUCATIONAL AGENCIES.— 

6 Local educational agencies receiving a grant under this sub7 title shall annually compile a report describing the projects 

8 for which such funds were used, including— 

9 (1) the number and identity of public schools in 

10 the agency, including the number of charter schools, 

11 and for each school, the total number of students, and 

12 the number of students counted under section 

13 1113(a)(5) of the Elementary and Secondary Edu14 cation Act of 1965 (20 U.S.C. 6313(a)(5)); 

15 (2) the total amount of funds received by the 

16 local educational agency under this subtitle, and for 

17 each public school in the agency, including each char18 ter school, the amount of such funds expended, and 

19 the types of modernization, renovation, repair, or con20 struction projects for which such funds were used; 

21 (3) the number of students impacted by such 

22 projects, including the number of students so im23 pacted who are counted under section 1113(a)(5) of 

24 the Elementary and Secondary Education Act of 

25 1965 (20 U.S.C. 6313(a)(5)); 

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1 (4) the number of public schools in the agency 

2 with a metro-centric locale code of 41, 42, or 43 as 

3 determined by the National Center for Education Sta4 tistics and the percentage of funds received by the 

5 agency under chapter 1 or chapter 2 of this subtitle 

6 that were used for projects at such schools; 

7 (5) the number of public schools in the agency 

8 that are eligible for schoolwide programs under sec9 tion 1114 of the Elementary and Secondary Edu10 cation Act of 1965 (20 U.S.C. 6314) and the percent11 age of funds received by the agency under chapter 1 

12 or chapter 2 of this subtitle that were used for projects 

13 at such schools; 

14 (6) for each project— 

15 (A) the cost; 

16 (B) the standard described in section 339(a) 

17 with which the use of the funds complied or, if 

18 the use of funds did not comply with a standard 

19 described in section 339(a), the reason such 

20 funds were not able to be used in compliance 

21 with such standards and the agency’s efforts to 

22 use such funds in an environmentally sound 

23 manner; and 

24 (C) any demonstrable or expected benefits as 

25 a result of the project (such as energy savings, 

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1 improved indoor environmental quality, student 

2 and staff health, including the reduction of the 

3 incidence and effects of asthma and other res4 piratory illnesses, and improved climate for 

5 teaching and learning); and 

6 (7) the total number and amount of contracts 

7 awarded, and the number and amount of contracts 

8 awarded to local, small, minority, women, and vet9 eran-owned businesses. 

10 (b) AVAILABILITY OF REPORTS.—A local educational 

11 agency shall— 

12 (1) submit the report described in subsection (a) 

13 to the State educational agency, which shall compile 

14 such information and report it annually to the Sec15 retary; and 

16 (2) make the report described in subsection (a) 

17 publicly available, including on the agency’s website. 

18 (c) REPORTS BY SECRETARY.—Not later than March 

19 31 of each fiscal year, the Secretary shall submit to the 

20 Committee on Education and Labor of the House of Rep21 resentatives and the Committee on Health, Education, 

22 Labor and Pensions of the Senate, and make available on 

23 the Department of Education’s website, a report on grants 

24 made under this subtitle, including the information from 

25 the reports described in subsection (b)(1). 

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1 SEC. 341. SPECIAL RULES. 

2 Notwithstanding any other provision of this subtitle, 

3 none of the funds authorized by this subtitle may be— 

4 (1) used to employ workers in violation of sec5 tion 274A of the Immigration and Nationality Act (8 

6 U.S.C. 1324a); or 

7 (2) distributed to a local educational agency that 

8 does not have a policy that requires a criminal back9 ground check on all employees of the agency. 

10 SEC. 342. PROMOTION OF EMPLOYMENT EXPERIENCES. 

11 The Secretary of Education, in consultation with the 

12 Secretary of Labor, shall work with recipients of funds 

13 under this subtitle to promote appropriate opportunities to 

14 gain employment experience working on modernization, 

15 renovation, repair, and construction projects funded under 

16 this subtitle for— 

17 (1) participants in a YouthBuild program (as 

18 defined in section 173A of the Workforce Investment 

19 Act of 1998 (29 U.S.C. 2918a)); 

20 (2) individuals enrolled in the Job Corps pro21 gram carried out under subtitle C of title I of the 

22 Workforce Investment Act of 1998 (29 U.S.C. 2881 et 

23 seq.); 

24 (3) individuals enrolled in a junior or commu25 nity college (as defined in section 312(f) of the Higher 

26 Education Act of 1965 (20 U.S.C. 1088(f))) certificate 

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1 or degree program relating to projects described in 

2 section 339(a); and 

3 (4) participants in preapprenticeship programs 

4 that have direct linkages with apprenticeship pro5 grams that are registered with the Department of 

6 Labor or a State Apprenticeship Agency under the 

7 National Apprenticeship Act of 1937 (29 U.S.C. 50 et 

8 seq.). 

9 SEC. 343. ADVISORY COUNCIL ON GREEN, HIGH-PER10 FORMING PUBLIC SCHOOL FACILITIES. 

11 (a) ESTABLISHMENT OF ADVISORY COUNCIL.—The 

12 Secretary shall establish an advisory council to be known 

13 as the ‘‘Advisory Council on Green, High-Performing Pub14 lic School Facilities’’ (in this section referred to as the ‘‘Ad15 visory Council’’) which shall be composed of— 

16 (1) appropriate officials from the Department of 

17 Education; 

18 (2) representatives of the academic, architectural, 

19 business, education, engineering, environmental, 

20 labor, and scientific communities; and 

21 (3) such other representatives as the Secretary 

22 deems appropriate. 

23 (b) DUTIES OF ADVISORY COUNCIL.— 

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1 (1) ADVISORY DUTIES.—The Advisory Council 

2 shall advise the Secretary on the impact of green, 

3 high-performing schools, on— 

4 (A) teaching and learning; 

5 (B) health; 

6 (C) energy costs; 

7 (D) environmental impact; and 

8 (E) other areas that the Secretary and the 

9 Advisory Council deem appropriate. 

10 (2) OTHER DUTIES.—The Advisory Council shall 

11 assist the Secretary in— 

12 (A) making recommendations on Federal 

13 policies to increase the number of green, high14 performing schools; 

15 (B) identifying Federal policies that are 

16 barriers to helping States and local educational 

17 agencies make green, high-performing schools; 

18 (C) providing technical assistance and out19 reach to States and local educational agencies 

20 under section 339(d); and 

21 (D) providing the Secretary such other as22 sistance as the Secretary deems appropriate. 

23 (c) CONSULTATION.—In carrying out its duties under 

24 subsection (b), the Advisory Council shall consult with the 

25 Chair of the Council on Environmental Quality and the 

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1 heads of appropriate Federal agencies, including the Sec2 retary of Commerce, the Secretary of Energy, the Secretary 

3 of Health and Human Services, the Secretary of Labor, the 

4 Administrator of the Environmental Protection Agency, 

5 and the Administrator of the General Services Administra6 tion (through the Office of Federal High-Performance Green 

7 Buildings). 

8 SEC. 344. EDUCATION REGARDING PROJECTS. 

9 A local educational agency receiving funds under this 

10 subtitle may encourage schools at which projects are under11 taken with such funds to educate students about the project, 

12 including, as appropriate, the functioning of the project 

13 and its environmental, energy, sustainability, and other 

14 benefits. 

15 SEC. 345. AVAILABILITY OF FUNDS. 

16 (a) CHAPTER 1.—There are authorized to be appro17 priated, and there are appropriated, to carry out chapter 

18 1 of this subtitle (in addition to any other amounts appro19 priated to carry out such chapter and out of any money 

20 in the Treasury not otherwise appropriated), 

21 $2,020,000,000 for each of fiscal years 2010 and 2011. 

22 (b) CHAPTER 2.—There are authorized to be appro23 priated, and there are appropriated, to carry out chapter 

24 2 of this subtitle (in addition to any other amounts appro25 priated to carry out such chapter and out of any money 

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1 in the Treasury not otherwise appropriated), $30,000,000 

2 for each of fiscal years 2010 and 2011. 

3 (c) PROHIBITION ON EARMARKS.—None of the funds 

4 appropriated under this section may be used for a Congres5 sional earmark as defined in clause 9(d) of rule XXI of the 

6 Rules of the House of Representatives. 

7 Subtitle B—Higher Education 

8 SEC. 351. FEDERAL ASSISTANCE FOR COMMUNITY COLLEGE 

9 MODERNIZATION AND CONSTRUCTION. 

10 (a) IN GENERAL.— 

11 (1) GRANT PROGRAM.—From the amounts made 

12 available under subsection (i), the Secretary shall 

13 award grants to States for the purposes of con14 structing new community college facilities and mod15 ernizing, renovating, and repairing existing commu16 nity college facilities. Grants awarded under this sec17 tion shall be used by a State for one or more of the 

18 following: 

19 (A) To reduce financing costs of loans for 

20 new construction, modernization, renovation, or 

21 repair projects at community colleges (such as 

22 paying interest or points on such loans). 

23 (B) To provide matching funds for a com24 munity college capital campaign to attract pri25 vate donations of funds for new construction, 

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1 modernization, renovation, or repair projects at 

2 the community college. 

3 (C) To capitalize a revolving loan fund to 

4 finance new construction, modernization, renova5 tion, and repair projects at community colleges. 

6 (2) ALLOCATION.— 

7 (A) DETERMINATION OF AVAILABLE

8 AMOUNT.—The Secretary shall determine the 

9 amount available for allocation to each State by 

10 determining the amount equal to the total num11 ber of students in the State who are enrolled in 

12 community colleges and who are pursuing a de13 gree or certificate that is not a bachelor’s, mas14 ter’s, professional, or other advanced degree, rel15 ative to the total number of such students in all 

16 States, combined. 

17 (B) ALLOCATION.—The Secretary shall allo18 cate to each State selected by the Secretary to re19 ceive a grant under this section an amount equal 

20 to the amount determined to be available for al21 location to such State under subparagraph (A), 

22 less any portion of that amount that is subject 

23 to a limitation under paragraph (3). 

24 (C) REALLOCATION.—Amounts not allo25 cated under this section to a State because— 

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1 (i) the State did not submit an appli2 cation under subsection (b); 

3 (ii) the State submitted an application 

4 that the Secretary determined did not meet 

5 the requirements of such subsection; or 

6 (iii) the State is subject to a limitation 

7 under paragraph (3) that prevents the State 

8 from using a portion of the allocation, 

9 shall be proportionately reallocated under this 

10 paragraph to the States that are not described in 

11 clause (i), (ii), or (iii) of this subparagraph. 

12 (3) GRANT AMOUNT LIMITATIONS.—A grant 

13 awarded to a State under this section— 

14 (A) to reduce financing costs of loans for 

15 new construction, modernization, renovation, or 

16 repair projects at community colleges under 

17 paragraph (1)(A) shall be for an amount that is 

18 not more than 25 percent of the total principal 

19 amount of the loans for which financing costs 

20 are being reduced; and 

21 (B) to provide matching funds for a com22 munity college capital campaign under para23 graph (1)(B) shall be for an amount that is not 

24 more than 25 percent of the total amount of the 

25 private donations of funds raised through such 

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1 campaign over the duration of such campaign, 

2 as such duration is determined by the State in 

3 the application submitted under subsection (b). 

4 (4) SUPPLEMENT, NOT SUPPLANT.—Funds made 

5 available under this section shall be used to supple6 ment, and not supplant, other Federal, State, and 

7 local funds that would otherwise be expended to con8 struct new community college facilities or modernize, 

9 renovate, or repair existing community college facili10 ties. 

11 (b) APPLICATION.—A State that desires to receive a 

12 grant under this section shall submit an application to the 

13 Secretary at such time, in such manner, and containing 

14 such information and assurances as the Secretary may re15 quire. Such application shall include a certification by the 

16 State that the funds provided under this section for the con17 struction of new community college facilities and the mod18 ernization, renovation, and repair of existing community 

19 college facilities will improve instruction at such colleges 

20 and will improve the ability of such colleges to educate and 

21 train students to meet the workforce needs of employers in 

22 the State. 

23 (c) USE OF FUNDS BY COMMUNITY COLLEGES.— 

24 (1) PERMISSIBLE USES OF FUNDS.—Funds made 

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1 scribed in subsection (a)(1)(A), a capital campaign 

2 described in subsection (a)(1)(B), or a loan from a re3 volving loan fund described in subsection (a)(1)(C) 

4 shall be used only for the construction, modernization, 

5 renovation, or repair of community college facilities 

6 that are primarily used for instruction, research, or 

7 student housing, which may include any of the fol8 lowing: 

9 (A) Repair, replacement, or installation of 

10 roofs, including extensive, intensive, or semi-in11 tensive green roofs, electrical wiring, water sup12 ply and plumbing systems, sewage systems, 

13 storm water runoff systems, lighting systems, 

14 building envelope, windows, ceilings, flooring, or 

15 doors, including security doors. 

16 (B) Repair, replacement, or installation of 

17 heating, ventilation, or air conditioning systems, 

18 including insulation, and conducting indoor air 

19 quality assessments. 

20 (C) Compliance with fire, health, seismic, 

21 and safety codes, including professional installa22 tion of fire and life safety alarms, and mod23 ernizations, renovations, and repairs that ensure 

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1 ing infrastructure to accommodate security 

2 measures and installing or upgrading technology 

3 to ensure that the community college is able to 

4 respond to emergencies such as acts of terrorism, 

5 campus violence, and natural disasters. 

6 (D) Retrofitting necessary to increase the 

7 energy efficiency of the community college’s fa8 cilities. 

9 (E) Modifications necessary to make facili10 ties accessible in compliance with the Americans 

11 with Disabilities Act of 1990 (42 U.S.C. 12101 

12 et seq.) and section 504 of the Rehabilitation Act 

13 of 1973 (29 U.S.C. 794). 

14 (F) Abatement, removal, or interim controls 

15 of asbestos, polychlorinated biphenyls, mold, mil16 dew, or lead-based hazards, including lead-based 

17 paint hazards from the community college’s fa18 cilities. 

19 (G) Modernization, renovation, or repair 

20 necessary to reduce the consumption of coal, elec21 tricity, land, natural gas, oil, or water. 

22 (H) Modernization, renovation, and repair 

23 relating to improving science and engineering 

24 laboratories, libraries, or instructional facilities. 

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1 (I) Installation or upgrading of educational 

2 technology infrastructure. 

3 (J) Installation or upgrading of renewable 

4 energy generation and heating systems, includ5 ing solar, photovoltaic, wind, biomass (including 

6 wood pellet and woody biomass), waste-to-energy, 

7 solar-thermal and geothermal systems, and en8 ergy audits. 

9 (K) Other modernization, renovation, or re10 pair projects that are primarily for instruction, 

11 research, or student housing. 

12 (L) Required environmental remediation re13 lated to modernization, renovation, or repair de14 scribed in subparagraphs (A) through (K). 

15 (2) GREEN SCHOOL REQUIREMENT.—A commu16 nity college receiving assistance through a loan de17 scribed in subsection (a)(1)(A), a capital campaign 

18 described in subsection (a)(1)(B), or a loan from a re19 volving loan fund described in subsection (a)(1)(C) 

20 shall use not less than 50 percent of such assistance 

21 to carry out projects for construction, modernization, 

22 renovation, or repair that are certified, verified, or 

23 consistent with the applicable provisions of— 

24 (A) the LEED Green Building Rating Sys25 tem; 

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1 (B) Energy Star; 

2 (C) the CHPS Criteria, as applicable; 

3 (D) Green Globes; or 

4 (E) an equivalent program adopted by the 

5 State or the State higher education agency that 

6 includes a verifiable method to demonstrate com7 pliance with such program. 

8 (3) PROHIBITED USES OF FUNDS.— 

9 (A) IN GENERAL.—No funds awarded under 

10 this section may be used for— 

11 (i) payment of maintenance costs; 

12 (ii) construction, modernization, ren13 ovation, or repair of stadiums or other fa14 cilities primarily used for athletic contests 

15 or exhibitions or other events for which ad16 mission is charged to the general public; or 

17 (iii) construction, modernization, ren18 ovation, or repair of facilities— 

19 (I) used for sectarian instruction, 

20 religious worship, or a school or de21 partment of divinity; or 

22 (II) in which a substantial por23 tion of the functions of the facilities 

24 are subsumed in a religious mission. 

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1 (B) FOUR-YEAR INSTITUTIONS.—No funds 

2 awarded to a four-year public institution of 

3 higher education under this section may be used 

4 for any facility, service, or program of the insti5 tution that is not available to students who are 

6 pursuing a degree or certificate that is not a 

7 bachelor’s, master’s, professional, or other ad8 vanced degree. 

9 (d) APPLICATION OF GEPA.—The grant program au10 thorized in this section is an applicable program (as that 

11 term is defined in section 400 of the General Education 

12 Provisions Act (20 U.S.C. 1221)) subject to section 439 of 

13 such Act (20 U.S.C. 1232b). The Secretary shall, notwith14 standing section 437 of such Act (20 U.S.C. 1232) and sec15 tion 553 of title 5, United States Code, establish such pro16 gram rules as may be necessary to implement such grant 

17 program by notice in the Federal Register. 

18 (e) CONCURRENT FUNDING.—Funds made available 

19 under this section shall not be used to assist any community 

20 college that receives funding for the construction, mod21 ernization, renovation, and repair of facilities under any 

22 other program under this Act, the Higher Education Act 

23 of 1965, or the American Recovery and Reinvestment Act 

24 of 2009. 

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1 (f) REPORTS BY THE STATES.—Each State that re2 ceives a grant under this section shall, not later than Sep3 tember 30, 2012, and annually thereafter for each fiscal 

4 year in which the State expends funds received under this 

5 section, submit to the Secretary a report that includes— 

6 (1) a description the projects for which the grant 

7 funding was, or will be, used; 

8 (2) a list of the community colleges that have re9 ceived, or will receive, assistance from the grant 

10 through a loan described in subsection (a)(1)(A), a 

11 capital campaign described in subsection (a)(1)(B), 

12 or a loan from a revolving loan fund described in 

13 subsection (a)(1)(C); and 

14 (3) a description of the amount and nature of 

15 the assistance provided to each such college. 

16 (g) REPORT BY THE SECRETARY.—The Secretary shall 

17 submit to the authorizing committees (as defined in section 

18 103 of the Higher Education Act of 1965) an annual report 

19 on the grants made under this section, including the infor20 mation described in subsection (f). 

21 (h) DEFINITIONS.— 

22 (1) COMMUNITY COLLEGE.—As used in this sec23 tion, the term ‘‘community college’’ means— 

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1 (A) a junior or community college, as such 

2 term is defined in section 312(f) of the Higher 

3 Education Act of 1965 (20 U.S.C. 1085(f)); or 

4 (B) a four-year public institution of higher 

5 education (as defined in section 101 of the High6 er Education Act of 1965) that awards a signifi7 cant number of degrees and certificates that are 

8 not— 

9 (i) bachelor’s degrees (or an equiva10 lent); or 

11 (ii) master’s, professional, or other ad12 vanced degrees. 

13 (2) CHPS CRITERIA.—The term ‘‘CHPS Cri14 teria’’ means the green building rating program de15 veloped by the Collaborative for High Performance 

16 Schools. 

17 (3) ENERGY STAR.—The term ‘‘Energy Star’’ 

18 means the Energy Star program of the United States 

19 Department of Energy and the United States Envi20 ronmental Protection Agency. 

21 (4) GREEN GLOBES.—The term ‘‘Green Globes’’ 

22 means the Green Building Initiative environmental 

23 design and rating system referred to as Green Globes. 

24 (5) LEED GREEN BUILDING RATING SYSTEM.— 

25 The term ‘‘LEED Green Building Rating System’’ 

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1 means the United States Green Building Council 

2 Leadership in Energy and Environmental Design 

3 green building rating standard referred to as the 

4 LEED Green Building Rating System. 

5 (6) SECRETARY.—The term ‘‘Secretary’’ means 

6 the Secretary of Education. 

7 (7) STATE.—The term ‘‘State’’ has the meaning 

8 given such term in section 103 of the Higher Edu9 cation Act of 1965 (20 U.S.C. 1003). 

10 (i) AVAILABILITY OF FUNDS.—There are authorized to 

11 be appropriated, and there are appropriated, to carry out 

12 this section (in addition to any other amounts appropriated 

13 to carry out this section and out of any money in the Treas14 ury not otherwise appropriated), $2,500,000,000 for fiscal 

15 year 2011, which shall remain available until expended. 

16 TITLE IV—EARLY LEARNING 

17 CHALLENGE FUND 

18 SEC. 401. PURPOSE. 

19 The purpose of this title is to provide grants on a com20 petitive basis to States for the following: 

21 (1) To promote standards reform of State early 

22 learning programs serving children from birth 

23 through age 5 in order to support the healthy develop24 ment and improve the school readiness outcomes of 

25 young children. 

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1 (2) To establish a high standard of quality in 

2 early learning programs that integrates appropriate 

3 early learning and development standards across 

4 early learning settings. 

5 (3) To fund and implement quality initiatives 

6 that improve the skills and effectiveness of early 

7 learning providers, and improve the quality of exist8 ing early learning programs, in order to increase the 

9 number of disadvantaged children who participate in 

10 comprehensive and high-quality early learning pro11 grams. 

12 (4) To ensure that a greater number of disadvan13 taged children enter kindergarten with the cognitive, 

14 social, emotional, and physical skills and abilities 

15 needed to be successful in school. 

16 (5) To increase parents’ abilities to access com17 prehensive and high quality early learning programs 

18 across settings for their children. 

19 SEC. 402. PROGRAMS AUTHORIZED. 

20 (a) QUALITY PATHWAYS GRANTS.—The Secretary 

21 shall use funds made available to carry out this title for 

22 a fiscal year to award grants on a competitive basis to 

23 States in accordance with section 403. 

24 (b) DEVELOPMENT GRANTS.—The Secretary shall use 

25 funds made available to carry out this title for a fiscal year 

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1 to award grants in accordance with section 404 on a com2 petitive basis to States that demonstrate a commitment to 

3 establishing a system of early learning that will include the 

4 components described in section 403(c)(3) but are not— 

5 (1) eligible to be awarded a grant under sub6 section (a); or 

7 (2) are not awarded such a grant after applica8 tion. 

9 (c) RESERVATIONS OF FEDERAL FUNDS.— 

10 (1) RESEARCH, EVALUATION, AND ADMINISTRA11 TION.—From the amount made available to carry out 

12 this title for a fiscal year, the Secretary— 

13 (A) shall reserve up to 2 percent jointly to 

14 administer this title with the Secretary of Health 

15 and Human Services; and 

16 (B) shall reserve up to 3 percent to carry 

17 out activities under section 405. 

18 (2) TRIBAL SCHOOL READINESS PLANNING DEM19 ONSTRATION.—After making the reservations under 

20 paragraph (1), the Secretary shall reserve 0.25 per21 cent for a competitive grant program for Indian 

22 tribes to develop and implement school readiness 

23 plans that— 

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1 (A) are coordinated with local educational 

2 agencies serving children who are members of the 

3 tribe; and 

4 (B) include American Indian and Alaska 

5 Native Head Start and Early Head Start pro6 grams, tribal child care programs, Indian 

7 Health Service programs, and other tribal pro8 grams serving children. 

9 (3) QUALITY PATHWAYS GRANTS.— 

10 (A) IN GENERAL.—From the amount made 

11 available to carry out this title for a fiscal year 

12 and not reserved under paragraph (1) or (2), the 

13 Secretary shall reserve a percent (which shall be 

14 not greater than 65 percent for fiscal years 2010 

15 through 2012 and not greater than 85 percent 

16 for fiscal year 2013 and each succeeding fiscal 

17 year) determined under subparagraph (B) to 

18 carry out subsection (a). 

19 (B) DETERMINATION OF AMOUNT.—In de20 termining the amount to reserve under subpara21 graph (A), the Secretary, consistent with section 

22 403(e), shall take into account the following: 

23 (i) The total number of States deter24 mined by the Secretary to qualify for re25 ceipt of a grant under this title for the year. 

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1 (ii) The number of children under age 

2 5 from low-income families in each State 

3 with an approved application under section 

4 403 for the year. 

5 (C) REALLOCATION.—For fiscal year 2013 

6 and subsequent fiscal years, the Secretary may 

7 reallocate funds allocated for development grants 

8 under subsection (b) for the purpose of providing 

9 additional grants under subsection (a), if the 

10 Secretary determines that there is an insufficient 

11 number of applications that meet the require12 ments for a grant under subsection (b). 

13 (d) STATE APPLICATIONS.—In applying for a grant 

14 under this title, a State— 

15 (1) shall designate a State-level entity for ad16 ministration of the grant; 

17 (2) shall coordinate proposed activities with the 

18 State Advisory Council on Early Childhood Edu19 cation and Care (established pursuant to section 

20 642B(b)(1)(A) of the Head Start Act (42 U.S.C. 

21 9837b(b)(1)(A))) and shall incorporate plans and rec22 ommendations from such Council in the application, 

23 where applicable; and 

24 (3) otherwise shall submit the application to the 

25 Secretary at such time, in such manner, and conmstockstill on DSKH9S0YB1PROD with BILLS

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1 taining such information as the Secretary may rea2 sonably require. 

3 (e) PRIORITY IN AWARDING GRANTS.—In awarding 

4 grants under this title, the Secretary shall give priority to 

5 States— 

6 (1) whose applications contain assurances that 

7 the State will use, in part, funds reserved under sec8 tion 658G of the Child Care and Development Block 

9 Grant Act of 1990 (42 U.S.C. 9858e) for activities de10 scribed in section 403(f); 

11 (2) that will commit to dedicating a significant 

12 increase, in comparison to recent fiscal years, in 

13 State expenditures on early learning programs and 

14 services; and 

15 (3) that demonstrate efforts to build public-pri16 vate partnerships designed to accomplish the purposes 

17 of this title. 

18 (f) MAINTENANCE OF EFFORT.— 

19 (1) IN GENERAL.—With respect to each period 

20 for which a State is awarded a grant under this title, 

21 the aggregate expenditures by the State and its polit22 ical subdivisions on early learning programs and 

23 services shall be not less than the level of the expendi24 tures for such programs and services by the State and 

25 its political subdivisions for fiscal year 2006. 

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1 (2) STATE EXPENDITURES.—For purposes of 

2 paragraph (1), expenditures by the State on early 

3 learning programs and services shall include, at a 

4 minimum, the following: 

5 (A) State matching and maintenance of ef6 fort funds for the Child Care and Development 

7 Block Grant Act of 1990 (42 U.S.C. 9858 et 

8 seq.). 

9 (B) State matching funds for the State Ad10 visory Council on Early Childhood Education 

11 and Care (established pursuant to section 

12 642B(b)(1)(A) of the Head Start Act (42 U.S.C. 

13 9837b(b)(1)(A))). 

14 (C) State expenditures on public pre-kinder15 garten, Head Start (including Early Head 

16 Start), and other State early learning programs 

17 and services dedicated to children (including 

18 State expenditures under part C of the Individ19 uals with Disabilities Education Act (20 U.S.C. 

20 1431 et seq.)). 

21 (g) PROHIBITIONS ON USE OF FUNDS.—Funds under 

22 this title may not be used for any of the following: 

23 (1) Assessments that provide rewards or sanc24 tions for individual children or teachers. 

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1 (2) A single assessment used as the primary or 

2 sole method for assessing program effectiveness. 

3 (3) Evaluating children other than for— 

4 (A) improving instruction or classroom en5 vironment; 

6 (B) targeting professional development; 

7 (C) determining the need for health, mental 

8 health, disability, or family support services; 

9 (D) informing the quality improvement 

10 process at the State level; 

11 (E) program evaluation for the purposes of 

12 program improvement and parent information; 

13 or 

14 (F) research conducted as part of the na15 tional evaluation required by section 405(2). 

16 (h) FEDERAL ADMINISTRATION.— 

17 (1) IN GENERAL.—With respect to this title, the 

18 Secretary shall bear responsibility for obligating and 

19 disbursing funds and ensuring compliance with ap20 plicable laws and administrative requirements, sub21 ject to paragraph (2). 

22 (2) INTERAGENCY AGREEMENT.—The Secretary 

23 of Education and the Secretary of Health and 

24 Human Services shall jointly administer this title on 

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1 such terms as such secretaries shall set forth in an 

2 interagency agreement. 

3 SEC. 403. QUALITY PATHWAYS GRANTS. 

4 (a) GRANT PERIOD.—Grants under section 402(a)— 

5 (1) may be awarded for a period not to exceed 

6 5 years; and 

7 (2) may be renewed, subject to approval by the 

8 Secretary, and based on the State’s progress in— 

9 (A) increasing the percentage of disadvan10 taged children in each age group (infants, tod11 dlers, and preschoolers) who participate in high12 quality early learning programs; 

13 (B) increasing the number of high-quality 

14 early learning programs in low-income commu15 nities; 

16 (C) implementing an early learning system 

17 that includes the components described in sub18 section (c)(3); and 

19 (D) incorporating the findings and rec20 ommendations reported by the commission estab21 lished under section 405(1) into the State system 

22 of early learning. 

23 (b) MATCHING REQUIREMENT.— 

24 (1) IN GENERAL.—Subject to subsection (g), to be 

25 eligible to receive a grant under section 402(a), a 

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1 State shall contribute to the activities assisted under 

2 the grant non-Federal matching funds in an amount 

3 equal to not less than the applicable percent of the 

4 amount of the grant. 

5 (2) APPLICABLE PERCENT.—For purposes of 

6 paragraph (1), the applicable percent means— 

7 (A) 10 percent in the first fiscal year of the 

8 grant; 

9 (B) 10 percent in the second fiscal year of 

10 the grant; 

11 (C) 15 percent in the third fiscal year of the 

12 grant; and 

13 (D) 20 percent in the fourth fiscal year of 

14 the grant and subsequent fiscal years. 

15 (3) NON-FEDERAL FUNDS.—A State may use the 

16 following to satisfy the requirement of paragraph (1): 

17 (A) Cash. 

18 (B) In-kind contributions for the acquisi19 tion, construction, or improvement of early 

20 learning program facilities serving disadvan21 taged children. 

22 (C) Technical assistance related to subpara23 graph (B). 

24 (4) PRIVATE CONTRIBUTIONS.—Private contribu25 tions made as part of public-private partnerships to 

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1 increase the number of low-income children in high2 quality early learning programs in a State may be 

3 used by the State to satisfy the requirement of para4 graph (1). 

5 (5) FINANCIAL HARDSHIP WAIVER.—The Sec6 retary may waive or reduce the non-Federal share of 

7 a State that has submitted an application for a grant 

8 under section 402(a) if the State demonstrates a need 

9 for such waiver or reduction due to extreme financial 

10 hardship, as defined by the Secretary by regulation. 

11 (c) STATE APPLICATIONS.—In order to be considered 

12 for a grant under section 402(a), a State’s application 

13 under section 402(d) shall include the following: 

14 (1) A description of how the State will use the 

15 grant to implement quality initiatives to improve 

16 early learning programs serving disadvantaged chil17 dren from birth to age 5 to lead to a greater percent18 age of such children participating in higher quality 

19 early learning programs. 

20 (2) A description of the goals and benchmarks 

21 the State will establish to lead to a greater percentage 

22 of disadvantaged children participating in higher 

23 quality early learning programs to improve school 

24 readiness outcomes, including an established baseline 

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1 of the number of disadvantaged children in high-qual2 ity early learning programs. 

3 (3) A description of how the State will imple4 ment a governance structure and a system of early 

5 learning programs and services that includes the fol6 lowing components: 

7 (A) Not later than 12 months after receiv8 ing notice of an award of the grant, complete 

9 State early learning and development standards 

10 that include social and emotional, cognitive, and 

11 physical development domains, and approaches 

12 to learning that are developmentally appropriate 

13 (including culturally and linguistically appro14 priate) for all children. 

15 (B) A process to ensure that State early 

16 learning and development standards are inte17 grated into the instructional and programmatic 

18 practices of early learning programs and serv19 ices, including services provided to children 

20 under section 619 and part C of the Individuals 

21 with Disabilities Education Act (20 U.S.C. 1419, 

22 1431 et seq.). 

23 (C) A program rating system that builds on 

24 licensing requirements, as appropriate, and other 

25 State regulatory standards and that— 

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1 (i) is designed to improve quality and 

2 effectiveness across different types of early 

3 learning settings; 

4 (ii) integrates evidence-based program 

5 quality standards that reflect standard lev6 els of quality and has progressively higher 

7 levels of program quality; 

8 (iii) integrates the State’s early learn9 ing and development standards for the pur10 pose of improving instructional and pro11 grammatic practices; 

12 (iv) addresses quality and effective in13 clusion of children with disabilities or devel14 opmental delays across different types of 

15 early learning settings; 

16 (v) addresses staff qualifications and 

17 professional development; 

18 (vi) provides financial incentives and 

19 other supports to help programs meet and 

20 sustain higher levels of quality; 

21 (vii) includes mechanisms for evalu22 ating how programs are meeting those 

23 standards and progressively higher levels of 

24 quality; and 

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1 (viii) includes a mechanism for public 

2 awareness and understanding of the pro3 gram rating system, including rating levels 

4 of individual programs. 

5 (D) A system of program review and moni6 toring that is designed to rate providers using 

7 the system described in subparagraph (C) and to 

8 assess and improve programmatic practices, in9 structional practices, and classroom environ10 ment. 

11 (E) A process to support early learning pro12 grams integrating instructional and pro13 grammatic practices that— 

14 (i) include developmentally appro15 priate (including culturally and linguis16 tically appropriate), ongoing, classroom17 based instructional assessments for each do18 main of child development and learning 

19 (including social and emotional, cognitive, 

20 and physical development domains and ap21 proaches to learning) to guide and improve 

22 instructional practice, professional develop23 ment of staff, and services; and 

24 (ii) are aligned with the curricula used 

25 in the early learning program and with the 

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1 State early learning and development 

2 standards or the Head Start Child Out3 comes Framework (as described in the Head 

4 Start Act), as applicable. 

5 (F) Minimum preservice early childhood de6 velopment and education training requirements 

7 for providers in early learning programs. 

8 (G) A comprehensive plan for supporting 

9 the professional preparation and the ongoing 

10 professional development of an effective, well11 compensated early learning workforce, which 

12 plan includes training and education that is sus13 tained, intensive, and classroom-focused and 

14 leads toward a credential or degree and is tied 

15 to improved compensation. 

16 (H) An outreach strategy to promote under17 standing by parents and families of— 

18 (i) how to support their child’s early 

19 development and learning; 

20 (ii) the State’s program rating system, 

21 as described in subparagraph (C); and 

22 (iii) the rating of the program in 

23 which their child is enrolled. 

24 (I) A coordinated system to facilitate 

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1 lated to health, mental health, disability, and 

2 family support for children participating in 

3 early learning programs. 

4 (J) A process for evaluating school readiness 

5 in children that reflects all of the major domains 

6 of development, and that is used to guide prac7 tice and improve early learning programs. 

8 (K) A coordinated data infrastructure that 

9 facilitates— 

10 (i) uniform data collection about the 

11 quality of early learning programs, essen12 tial information about the children and 

13 families that participate in such programs, 

14 and the qualifications and compensation of 

15 the early learning workforce in such pro16 grams; and 

17 (ii) alignment and interoperability be18 tween the data system for early learning 

19 programs for children and data systems for 

20 elementary and secondary education. 

21 (4) A description of how the funds provided 

22 under the grant will be targeted to prioritize increas23 ing the number and percentage of low-income children 

24 in high-quality early learning programs, including 

25 children— 

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1 (A) in each age group (infants, toddlers, 

2 and preschoolers); 

3 (B) with developmental delays and disabil4 ities; 

5 (C) with limited English proficiency; and 

6 (D) living in rural areas. 

7 (5) An assurance that the grant will be used to 

8 improve the quality of early learning programs across 

9 a range of types of settings and providers of such pro10 grams. 

11 (6) A description of the steps the State will take 

12 to make progress toward including all center-based 

13 child care programs, family child care programs, 

14 State-funded prekindergarten, Head Start programs, 

15 and other early learning programs, such as those 

16 funded under title I of the Elementary and Secondary 

17 Education Act of 1965 (20 U.S.C. 6301 et seq.) or re18 ceiving funds under section 619 or part C of the Indi19 viduals with Disabilities Education Act (20 U.S.C. 

20 1419, 1431 et seq.) in the State program rating sys21 tem described in paragraph (3)(C). 

22 (7) An assurance that the State, not later than 

23 18 months after receiving notice of an award of the 

24 grant, will conduct an analysis of the alignment of 

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1 the State’s early learning and development standards 

2 with— 

3 (A) appropriate academic content standards 

4 for grades kindergarten through 3; and 

5 (B) elements of program quality standards 

6 for early learning programs. 

7 (8) An assurance that the grant will be used only 

8 to supplement, and not to supplant, Federal, State, 

9 and local funds otherwise available to support exist10 ing early learning programs and services. 

11 (9) A description of any disparity by age group 

12 (infants, toddlers, and preschoolers) of available high13 quality early learning programs in low-income com14 munities and the steps the State will take to decrease 

15 such disparity, if applicable. 

16 (10) A description of how the State early learn17 ing and development standards will address the needs 

18 of children with limited English proficiency, includ19 ing by incorporating benchmarks related to English 

20 language development. 

21 (11) A description of how the State’s professional 

22 development plan will prepare the early learning 

23 workforce to support the early learning needs of chil24 dren with limited English proficiency. 

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1 (12) A description of how the State will improve 

2 interagency collaboration and coordinate the purposes 

3 of this title with the activities funded under— 

4 (A) section 658G of the Child Care and De5 velopment Block Grant Act of 1990 (42 U.S.C. 

6 9858e); 

7 (B) section 619 and part C of the Individ8 uals with Disabilities Education Act (20 U.S.C. 

9 1419, 1431 et seq.); 

10 (C) title I of the Elementary and Secondary 

11 Education Act of 1965 (20 U.S.C. 6301 et seq.); 

12 (D) State-funded pre-kindergarten pro13 grams (where applicable); 

14 (E) Head Start programs; and 

15 (F) other early childhood programs and 

16 services. 

17 (13) A description of how the State’s early learn18 ing policies, including child care policies, facilitate 

19 access to high-quality early learning programs for 

20 children from low-income families. 

21 (14) An assurance that the State will continue to 

22 participate in part C of the Individuals with Disabil23 ities Education Act (20 U.S.C. 1431 et seq.) for the 

24 duration of the grant. 

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1 (d) CRITERIA USED IN AWARDING GRANTS.—In 

2 awarding grants under section 402(a), the Secretary shall 

3 evaluate the applications, and award grants under such sec4 tion on a competitive basis, based on— 

5 (1) the quality of the application submitted pur6 suant to section 402(d); 

7 (2) the priority factors described in section 

8 402(e); 

9 (3) evidence of significant progress in estab10 lishing a system of early learning for children that 

11 includes the components described in subsection 

12 (c)(3); and 

13 (4) the State’s capacity to fully complete imple14 mentation of such a system. 

15 (e) CRITERION USED IN DETERMINING AMOUNT OF

16 AWARD.—In determining the amount to award a State 

17 under section 402(a), the Secretary shall take into ac18 count— 

19 (1) the proportion of children under age 5 from 

20 low-income families in the State relative to such pro21 portion in other States; and 

22 (2) the State plan and capacity to implement 

23 the criteria described in paragraphs (3) and (4) of 

24 subsection (d). 

25 (f) STATE USES OF FUNDS.— 

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1 (1) IN GENERAL.—A State receiving a grant 

2 under section 402(a) shall use the grant as follows: 

3 (A) Not less than 65 percent of the grant 

4 amount shall be used for two or more of the fol5 lowing activities to improve the quality of early 

6 learning programs serving disadvantaged chil7 dren: 

8 (i) Initiatives that improve the creden9 tials of early learning providers and are 

10 tied to increased compensation. 

11 (ii) Initiatives that help early learning 

12 programs meet and sustain higher program 

13 quality standards, such as— 

14 (I) improving the ratio of early 

15 learning provider to children in early 

16 learning settings; 

17 (II) reducing group size; 

18 (III) improving the qualifications 

19 of early learning providers; and 

20 (IV) supporting effective edu21 cation and training for early learning 

22 providers. 

23 (iii) Implementing classroom observa24 tion assessments and data-driven decisions 

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1 search-based prevention and intervention 

2 framework designed to build social com3 petence and prevent challenging behaviors) 

4 tied to activities that improve instructional 

5 practices, programmatic practices, or class6 room environment and promote school read7 iness. 

8 (iv) Providing financial incentives to 

9 early learning programs— 

10 (I) for undertaking quality im11 provements that promote healthy devel12 opment and school readiness; and 

13 (II) maintaining quality im14 provements that promote healthy devel15 opment and school readiness. 

16 (v) Integrating State early learning 

17 and development standards into instruc18 tional and programmatic practices in early 

19 learning programs. 

20 (vi) Providing high-quality, sustained, 

21 intensive, and classroom-focused profes22 sional development that improves the knowl23 edge and skills of early learning providers, 

24 including professional development related 

25 to meeting the needs of diverse populations. 

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1 (vii) Building the capacity of early 

2 learning programs and communities to pro3 mote the understanding of parents and fam4 ilies of the State’s early learning system 

5 and the rating of the program in which 

6 their child is enrolled and to encourage the 

7 active involvement and engagement of par8 ents and families in the learning and devel9 opment of their children. 

10 (viii) Building the capacity of early 

11 learning programs and communities to fa12 cilitate screening, referral, and provision of 

13 services related to health, mental health, dis14 ability, and family support for children 

15 participating in early learning programs. 

16 (ix) Other innovative activities, pro17 posed by the State and approved in advance 

18 by the Secretary that are— 

19 (I) based on successful practices; 

20 (II) designed to improve the qual21 ity of early learning programs and 

22 services; and 

23 (III) advance the system compo24 nents described in subsection (c)(3). 

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1 (B) The remainder of the grant amount 

2 may be used for one or more of the following: 

3 (i) Implementation or enhancement of 

4 the State’s data system described in sub5 section (c)(3)(K), including interoperability 

6 across agencies serving children, and unique 

7 child and program identifiers. 

8 (ii) Enhancement of the State’s over9 sight system for early learning programs, 

10 including the implementation of a program 

11 rating system. 

12 (iii) The development and implementa13 tion of measures of school readiness of chil14 dren that reflect all of the major domains of 

15 child development and that inform the qual16 ity improvement process. 

17 (2) PRIORITY.—A State receiving a grant under 

18 section 402(a) shall use the grant so as to prioritize 

19 improving the quality of early learning programs 

20 serving children from low-income families. 

21 (g) SPECIAL RULE.— 

22 (1) IN GENERAL.—Beginning with the second fis23 cal year of a grant under section 402(a), a State with 

24 respect to which the Secretary certifies that the State 

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1 quirements of the grant may apply to the Secretary 

2 to reserve up to 25 percent of the amount of the grant 

3 to expand access for children from low-income fami4 lies to the highest quality early learning programs 

5 that offer full-day services, except that the State must 

6 agree to contribute for such purpose non-Federal 

7 matching funds in an amount equal to not less than 

8 20 percent of the amount reserved under this sub9 section. One-half of such non-Federal matching funds 

10 may be provided by a private entity. 

11 (2) NON-FEDERAL FUNDS.—A State may use the 

12 following to satisfy the matching requirement of para13 graph (1): 

14 (A) Cash. 

15 (B) In-kind contributions for the acquisi16 tion, construction, or improvement of early 

17 learning program facilities serving disadvan18 taged children. 

19 (C) Technical assistance related to subpara20 graph (B). 

21 (3) FINANCIAL HARDSHIP WAIVER.—The Sec22 retary may waive or reduce the non-Federal share of 

23 a State under paragraph (1) if the State dem24 onstrates a need for such waiver or reduction due to 

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1 extreme financial hardship, as defined by the Sec2 retary by regulation. 

3 (h) IMPROVEMENT PLAN.—If the Secretary determines 

4 that a State receiving a grant under section 402(a) is en5 countering barriers to reaching goals described in subsection 

6 (c)(2), the State shall develop a plan for improvement in 

7 consultation with, and subject to approval by, the Sec8 retary. 

9 SEC. 404. DEVELOPMENT GRANTS. 

10 (a) GRANT PERIOD.—Grants under section 402(b) 

11 may be awarded for a period not to exceed 3 years, and 

12 may not be renewed. 

13 (b) STATE USES OF FUNDS.— 

14 (1) IN GENERAL.—A State receiving a grant 

15 under section 402(b) shall use the grant to undertake 

16 activities to develop the early learning system compo17 nents described in section 403(c)(3) and that will 

18 allow a State to become eligible and competitive for 

19 a grant described in section 402(a). 

20 (2) PRIORITY.—A State receiving a grant under 

21 section 402(b) shall use the grant so as to prioritize 

22 improving the quality of early learning programs 

23 serving low-income children. 

24 (c) MATCHING REQUIREMENT.— 

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1 (1) IN GENERAL.—To be eligible to receive a 

2 grant under section 402(b), a State shall contribute to 

3 the activities assisted under the grant non-Federal 

4 matching funds in an amount equal to not less than 

5 the applicable percent of the amount of the grant. 

6 (2) APPLICABLE PERCENT.—For purposes of 

7 paragraph (1), the applicable percent means— 

8 (A) 20 percent in the first fiscal year of the 

9 grant; 

10 (B) 25 percent in the second fiscal year of 

11 the grant; and 

12 (C) 30 percent in the third fiscal year of the 

13 grant. 

14 (3) NON-FEDERAL FUNDS.—A State may use the 

15 following to satisfy the requirement of paragraph (1): 

16 (A) Cash. 

17 (B) In-kind contributions for the acquisi18 tion, construction, or improvement of early 

19 learning program facilities serving disadvan20 taged children. 

21 (C) Technical assistance related to subpara22 graph (B). 

23 (4) PRIVATE CONTRIBUTIONS.—Private contribu24 tions made as part of public-private partnerships to 

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1 quality early learning programs in a State may be 

2 used by the State to satisfy the requirement of para3 graph (1). 

4 (5) FINANCIAL HARDSHIP WAIVER.—The Sec5 retary may waive or reduce the non-Federal share of 

6 a State that has submitted an application for a grant 

7 under section 402(b) if the State demonstrates a need 

8 for such waiver or reduction due to extreme financial 

9 hardship, as defined by the Secretary by regulation. 

10 SEC. 405. RESEARCH AND EVALUATION. 

11 From funds reserved under section 402(c)(1), the Sec12 retary of Education and the Secretary of Health and 

13 Human Services, acting jointly, shall carry out the fol14 lowing activities: 

15 (1) Establishing a national commission whose 

16 duties shall include— 

17 (A) reviewing the status of State and Fed18 eral early learning program quality standards 

19 and early learning and development standards; 

20 (B) recommending benchmarks for program 

21 quality standards and early learning and devel22 opment standards, including taking into consid23 eration the school readiness needs of children 

24 with limited English proficiency; and 

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1 (C) reporting to the Secretaries of Edu2 cation and Health and Human Services not 

3 later than 2 years after the date of the enactment 

4 of this Act on the commission’s findings and rec5 ommendations. 

6 (2) Conducting a national evaluation of the 

7 grants made under this title through the Institute of 

8 Education Science in collaboration with the appro9 priate research divisions within the Department of 

10 Health and Human Services. 

11 (3) Supporting a research collaborative among 

12 the Institute of Education Sciences, the National In13 stitute of Child Health and Human Development, the 

14 Office of Planning, Research, and Evaluation within 

15 the Administration for Children and Families in the 

16 Department of Health and Human Services, and, as 

17 appropriate, other Federal entities to support research 

18 on early learning that can inform improved State 

19 and other standards and licensing requirements and 

20 improved child outcomes, which collaborative shall— 

21 (A) biennially prepare and publish for pub22 lic comment a detailed research plan; 

23 (B) support early learning research activi24 ties that could include determining— 

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1 (i) the characteristics of early learning 

2 programs that produce positive develop3 mental outcomes for children; 

4 (ii) the effects of program quality 

5 standards on child outcomes; 

6 (iii) the relationships between specific 

7 interventions and types of child and family 

8 outcomes; 

9 (iv) the effectiveness of early learning 

10 provider training in raising program qual11 ity and improving child outcomes; 

12 (v) the effectiveness of professional de13 velopment strategies in raising program 

14 quality and improving child outcomes; and 

15 (vi) how to improve the school readi16 ness outcomes of children with limited 

17 English proficiency, special needs, and 

18 homeless children, including evaluation of 

19 professional development programs for 

20 working with such children; and 

21 (C) disseminate relevant research findings 

22 and best practices. 

23 (4) Evaluating barriers to improving the quality 

24 of early learning programs serving low-income chil25 dren, including evaluating barriers to successful 

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1 interagency collaboration and coordination, by con2 ducting a review of the statewide strategic reports de3 veloped by the State Advisory Councils on Early Care 

4 and Education and other relevant reports, reporting 

5 the findings of such review to Congress, and dissemi6 nating relevant research findings and best practices. 

7 SEC. 406. REPORTING REQUIREMENTS. 

8 (a) REPORTS TO CONGRESS.—For each year in which 

9 funding is provided under this title, the Secretary shall sub10 mit an annual report to the Committee on Education and 

11 Labor of the House of Representatives and the Committee 

12 on Health, Education, Labor and Pensions of the Senate 

13 on the activities carried out under this title, including, at 

14 a minimum, information on the following: 

15 (1) The activities undertaken by States to in16 crease the availability of high-quality early learning 

17 programs. 

18 (2) The number of children in high-quality early 

19 learning programs, and the change from the prior 

20 year, disaggregated by State, age, and race. 

21 (3) The number of early learning providers en22 rolled, with assistance from funds under this title, in 

23 a program to obtain a credential or degree in early 

24 childhood education and the settings in which such 

25 providers work. 

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1 (4) A summary of State progress in imple2 menting a system of early learning with the compo3 nents described in section 403(c)(3). 

4 (5) A summary of the research activities being 

5 conducted under section 405 and the findings of such 

6 research. 

7 (b) REPORTS TO SECRETARY.—Each State that re8 ceives a grant under this title shall submit to the Secretary 

9 an annual report that includes, at a minimum, informa10 tion on the activities carried out by the State under this 

11 title, including the following: 

12 (1) The progress on fully implementing and inte13 grating into a system of early learning each of the 

14 components described in section 403(c)(3). 

15 (2) The State’s progress in meeting its goals for 

16 increasing the number of disadvantaged children par17 ticipating in high-quality early learning programs, 

18 disaggregated by child age. 

19 (3) The number and percentage of disadvantaged 

20 children participating in early learning programs at 

21 each level of quality, disaggregated by race, family in22 come, child age, disability, and limited English pro23 ficiency status. 

24 (4) The number of providers participating in the 

25 State quality rating system, disaggregated by setting, 

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1 rating, and the number of high-quality providers 

2 available in low-income communities. 

3 (5) Information on how the funds provided 

4 under this title were used to increase the availability 

5 of high-quality early learning programs for each age 

6 group, disaggregated by race and limited English 

7 proficient status, to the maximum extent practicable. 

8 (6) Information on professional development and 

9 training expenditures, including— 

10 (A) the number of early learning providers 

11 engaged in such activities; and 

12 (B) the number of early learning providers 

13 enrolled in programs to obtain a credential or 

14 degree in early childhood education, 

15 disaggregated by the type of credential and de16 gree. 

17 (7) The change in the number and percentage of 

18 early learning providers with appropriate credentials 

19 or degrees in early childhood education, including the 

20 change in compensation given to such providers, in 

21 comparison to the prior fiscal year, disaggregated by 

22 early learning setting and the type of credential or 

23 degree. 

24 (8) In the case of a State receiving a grant 

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1 ceiving assistance under the Child Care and Develop2 ment Block Grant Act of 1990 (42 U.S.C. 9858 et 

3 seq.) who participate in the highest quality early 

4 learning programs, disaggregated by program setting 

5 and child age. 

6 (9) Barriers to expanding access to high-quality 

7 early learning programs for disadvantaged children. 

8 SEC. 407. CONSTRUCTION. 

9 Nothing in this title— 

10 (1) shall be construed to require a child to par11 ticipate in an early learning program; or 

12 (2) shall be used to deny entry to kindergarten 

13 for any individual if the individual is legally eligible, 

14 as defined by State or local law. 

15 SEC. 408. DEFINITIONS. 

16 For purposes of this title: 

17 (1) CHILD.—The term ‘‘child’’ refers to an indi18 vidual from birth through the day the individual en19 ters kindergarten. 

20 (2) DISADVANTAGED.—The term ‘‘disadvan21 taged’’, when used with respect to a child, means a 

22 child whose family income is described in section 

23 658P(4)(B) of the Child Care and Development Block 

24 Grant Act of 1990 (42 U.S.C. 9858n(4)(B)). 

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1 (3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has 

2 the meaning given such term in section 637 of the 

3 Head Start Act (42 U.S.C. 9832). 

4 (4) LIMITED ENGLISH PROFICIENT.—The term 

5 ‘‘limited English proficient’’ has the meaning given 

6 such term in section 637 of the Head Start Act (42 

7 U.S.C. 9832). 

8 (5) SECRETARY.—The term ‘‘Secretary’’ means 

9 the Secretary of Education. 

10 (6) STATE.—The term ‘‘State’’ has the meaning 

11 given such term in section 9101 of the Elementary 

12 and Secondary Education Act of 1965 (20 U.S.C. 

13 7801). 

14 SEC. 409. AVAILABILITY OF FUNDS. 

15 There are authorized to be appropriated, and there are 

16 appropriated, to carry out this title (in addition to any 

17 other amounts appropriated to carry out this title and out 

18 of any money in the Treasury not otherwise appropriated) 

19 $1,000,000,000 for each of fiscal years 2010 through 2017. 

20 TITLE V—AMERICAN 

21 GRADUATION INITIATIVE 

22 SEC. 501. AUTHORIZATION AND APPROPRIATION. 

23 (a) AUTHORIZATION AND APPROPRIATION.—There are 

24 authorized to be appropriated, and there are appropriated, 

25 to carry out this title (in addition to any other amounts 

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1 appropriated to carry out this title and out of any money 

2 in the Treasury not otherwise appropriated), $730,000,000 

3 for each of the fiscal years 2010 through 2013, and 

4 $680,000,000 for each of the fiscal years 2014 through 2019. 

5 (b) ALLOCATIONS.—Of the amount appropriated 

6 under subsection (a)— 

7 (1) $630,000,000 shall be made available for each 

8 of the fiscal years 2010 through 2013 to carry out sec9 tion 503; 

10 (2) $630,000,000 shall be made available for each 

11 of the fiscal years 2014 through 2019 to carry out sec12 tion 504; 

13 (3) $50,000,000 shall be made available for each 

14 of the fiscal years 2010 through 2019 to carry out 

15 subsection (a) of section 505; and 

16 (4) $50,000,000 shall be made available for each 

17 of the fiscal years 2010 through 2013 to carry out 

18 subsections (b) and (c) of section 505. 

19 (c) RESPONSIBILITY.— 

20 (1) IN GENERAL.—With respect to sections 503 

21 and 504, the Secretary of Education shall bear the re22 sponsibility for obligating and disbursing funds under 

23 such sections and ensuring compliance with applica24 ble law and administrative requirements, subject to 

25 paragraph (2). 

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1 (2) INTERAGENCY AGREEMENT.—The Secretary 

2 of Education and the Secretary of Labor shall jointly 

3 administer sections 503 and 504 on such terms as 

4 such Secretaries shall set forth in an interagency 

5 agreement. 

6 SEC. 502. DEFINITIONS; GRANT PRIORITY. 

7 (a) DEFINITIONS.—In this title: 

8 (1) AREA CAREER AND TECHNICAL EDUCATION

9 SCHOOL.—The term ‘‘area career and technical edu10 cation school’’ has the meaning given such term in 

11 section 3 of the Carl D. Perkins Career and Technical 

12 Education Act of 2006 (20 U.S.C. 2302). 

13 (2) COMMUNITY COLLEGE.—The term ‘‘commu14 nity college’’ means a public institution of higher edu15 cation at which the highest degree that is predomi16 nantly awarded to students is an associate’s degree. 

17 (3) ELIGIBLE ENTITY.—The term ‘‘eligible enti18 ty’’ means— 

19 (A) a community college or community col20 lege district; 

21 (B) an area career and technical education 

22 school; 

23 (C) a public four-year institution of higher 

24 education that— 

25 (i) offers two-year degrees; 

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1 (ii) will use funds provided under this 

2 section for activities at the certificate and 

3 associate degree levels; and 

4 (iii) is not reasonably close, as deter5 mined by the Secretary, to a community 

6 college; 

7 (D) a public four-year institution of higher 

8 education that is in partnership with an eligible 

9 entity described in subparagraph (A), (B), or 

10 (C); 

11 (E) a State that— 

12 (i) is in compliance with section 137 of 

13 the Higher Education Act of 1965 (20 

14 U.S.C. 1015f); 

15 (ii) has an articulation agreement pur16 suant to section 486A of such Act (20 

17 U.S.C. 1093a); and 

18 (iii) is in partnership with an eligible 

19 entity described in subparagraph (A), (B), 

20 (C), or (D); or 

21 (F) a consortium of at least 2 entities de22 scribed in subparagraphs (A) through (E). 

23 (4) INDUSTRY OR SECTOR PARTNERSHIP.—The 

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1 ing given such term in section 782(f) of the Higher 

2 Education Act of 1965. 

3 (5) INSTITUTION OF HIGHER EDUCATION.—The 

4 term ‘‘institution of higher education’’ has the mean5 ing given such term in section 101 of the Higher Edu6 cation Act of 1965 (20 U.S.C. 1001). 

7 (6) PHILANTHROPIC ORGANIZATION.—The term 

8 ‘‘philanthropic organization’’ has the meaning given 

9 such term in section 781(i) of the Higher Education 

10 Act of 1965 (20 U.S.C. 1141(i)). 

11 (7) SECRETARY.—The term ‘‘Secretary’’ means 

12 the Secretary of Education. 

13 (8) STATE.—The term ‘‘State’’ has the meaning 

14 given such term in section 103 of the Higher Edu15 cation Act of 1965 (20 U.S.C. 1003). 

16 (9) STATE PUBLIC EMPLOYMENT SERVICE.—The 

17 term ‘‘State public employment service’’ refers to a 

18 State public employment service established under the 

19 Wagner-Peyser Act (29 U.S.C. 49 et seq.). 

20 (10) STATE WORKFORCE INVESTMENT BOARD; 

21 LOCAL WORKFORCE INVESTMENT BOARD.—The terms 

22 ‘‘State workforce investment board’’ and ‘‘local work23 force investment board’’ refer to a State workforce in24 vestment board established under section 111 of the 

25 Workforce Investment Act (29 U.S.C. 2821) and a 

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1 local workforce investment board established under 

2 section 117 of such Act (29 U.S.C. 2832), respectively. 

3 (11) SUPPORTIVE SERVICES.—The term ‘‘sup4 portive services’’ has the meaning given such term in 

5 section 101(46) of the Workforce Investment Act of 

6 1998 (29 U.S.C. 2801(46)). 

7 (b) GRANT PRIORITY.—In addition to any grant pri8 orities established under any other provision of this title, 

9 the Secretary, in awarding grants under this title, shall 

10 give priority to applications focused on serving low-income, 

11 nontraditional students who do not have a bachelor’s degree, 

12 and who have one or more of the following characteristics: 

13 (1) Are the first generation in their family to at14 tend college. 

15 (2) Have delayed enrollment in college. 

16 (3) Have dependents. 

17 (4) Are independent students. 

18 (5) Work at least 25 hours per week. 

19 (6) Are out-of-school youth without a high school 

20 diploma. 

21 SEC. 503. GRANTS TO ELIGIBLE ENTITIES FOR COMMUNITY 

22 COLLEGE REFORM. 

23 (a) PROGRAM AUTHORIZATION.— 

24 (1) GRANTS AUTHORIZED.— 

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1 (A) IN GENERAL.—Subject to paragraph 

2 (2), from the amount appropriated to carry out 

3 this section, the Secretary, in coordination with 

4 the Secretary of Labor, shall award grants to eli5 gible entities, on a competitive basis, to establish 

6 and support programs described in subpara7 graph (B) at eligible entities described in sub8 paragraphs (A) through (D) of section 502(a)(3). 

9 (B) PROGRAMS.—The programs to be estab10 lished and supported with grants under subpara11 graph (A) (and carried out through activities de12 scribed in subsection (f)) shall be programs— 

13 (i) that are— 

14 (I) innovative programs; or 

15 (II) programs of demonstrated ef16 fectiveness, based on the evaluations of 

17 similar programs funded by the De18 partment of Education or the Depart19 ment of Labor, or other research of 

20 similar programs; and 

21 (ii) that lead to the completion of a 

22 postsecondary degree, certificate, or indus23 try-recognized credential leading to a skilled 

24 occupation in a high-demand industry. 

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1 (2) LIMITATION.—For each fiscal year for which 

2 funds are appropriated to carry out this section, the 

3 aggregate amount of the grants awarded to eligible 

4 entities that are States, or consortia that include a 

5 State, shall be not more than 50 percent of the total 

6 amount appropriated under section 501(b)(1) for such 

7 fiscal year. 

8 (3) PROHIBITION.—The Secretary shall not 

9 award a grant to an eligible entity for the same ac10 tivities that are being supported by other Federal 

11 funds. 

12 (b) GRANT DURATION AND AMOUNT.— 

13 (1) DURATION.—A grant under this section shall 

14 be awarded to an eligible entity for a 4-year period, 

15 except that if the Secretary determines that the eligi16 ble entity has not made demonstrable progress in 

17 achieving the benchmarks developed pursuant to sub18 section (g) by the end of the third year of such grant 

19 period, no further grant funds shall be made available 

20 to the entity after the date of such determination. 

21 (2) AMOUNT.—The minimum amount of a total 

22 grant award under this section over the 4-year period 

23 of the award shall be $750,000. 

24 (c) PRIORITY.—In awarding grants under this section, 

25 the Secretary shall give priority to eligible entities that— 

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1 (1) enter into partnerships with— 

2 (A) philanthropic or research organizations 

3 with expertise in meeting the goals of this sec4 tion; 

5 (B) businesses or industry or sector partner6 ships that— 

7 (i) design and implement programs de8 scribed in subsection (a)(1)(B); 

9 (ii) pay a portion of the costs of such 

10 programs; and 

11 (iii) agree to collaborate with one or 

12 more eligible entities to hire individuals 

13 who have completed a particular postsec14 ondary degree, certificate, or credential pro15 gram; or 

16 (C) labor organizations that provide tech17 nical expertise for occupationally specific edu18 cation necessary for an industry-recognized cre19 dential leading to a skilled occupation in a high20 demand industry; or 

21 (2) are institutions of higher education eligible 

22 for assistance under title III or V of the Higher Edu23 cation Act of 1965, or consortia that include such an 

24 institution. 

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1 (d) FEDERAL AND NON-FEDERAL SHARE; SUPPLE2 MENT, NOT SUPPLANT.— 

3 (1) FEDERAL SHARE.—The amount of the Fed4 eral share under this section for a fiscal year shall be 

not greater than 1 5 ⁄2 of the costs of the programs, serv6 ices, and policies described in subsection (f) that are 

7 carried out under the grant. 

8 (2) NON-FEDERAL SHARE.— 

9 (A) IN GENERAL.—The amount of the non10 Federal share under this section for a fiscal year 

shall be not less than 1 11 ⁄2 of the costs of the pro12 grams, services, and policies described in sub13 section (f) that are carried out under the grant. 

14 The non-Federal share may be in cash or in 

15 kind, and may be provided from State resources, 

16 local resources, contributions from private orga17 nizations, or a combination thereof. 

18 (B) FINANCIAL HARDSHIP WAIVER.—The 

19 Secretary may waive or reduce the non-Federal 

20 share of an eligible entity that has submitted an 

21 application under this section if the entity dem22 onstrates a need for such waiver or reduction due 

23 to extreme financial hardship, as defined by the 

24 Secretary by regulation. 

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1 (3) SUPPLEMENT, NOT SUPPLANT.—The Federal 

2 and non-Federal shares required by this section shall 

3 be used to supplement, and not supplant, State and 

4 private resources that would otherwise be expended to 

5 establish and support programs described in sub6 section (a)(1)(B) at eligible entities. 

7 (e) APPLICATION.—An eligible entity seeking to receive 

8 a grant under this section shall submit to the Secretary an 

9 application at such time, in such manner, and containing 

10 such information as the Secretary may require. Such appli11 cation shall describe the programs under subsection 

12 (a)(1)(B) that the eligible entity will carry out using the 

13 grant funds, (including the programs, services, and policies 

14 under subsection (f)), including— 

15 (1) the goals of such programs, services, and 

16 policies; 

17 (2) how the eligible entity will allocate grant 

18 funds for such programs, services, and policies; 

19 (3) how such programs, services, and policies, 

20 and the resources of the eligible entity, will enable the 

21 eligible entity to meet the benchmarks developed pur22 suant to subsection (g), and how the eligible entity 

23 will track and report the entity’s progress in reaching 

24 such benchmarks; 

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1 (4) how the eligible entity will use such pro2 grams, services, and policies to establish quantifiable 

3 targets for improving graduation rates and employ4 ment-related outcomes; 

5 (5) how the eligible entity will serve high-need 

6 populations through such programs, services, and 

7 policies; 

8 (6) how the eligible entity will partner with in9 dustry or sector partnerships in the State, the State 

10 public employment service, and State or local work11 force investment boards in carrying out such pro12 grams, services, and policies; 

13 (7) an assurance that the eligible entity will 

14 share information with the Learning and Earning 

15 Research Center established under section 505(b), once 

16 such Center is established; 

17 (8) an assurance that the eligible entity will par18 ticipate in the evaluation of such programs, services, 

19 and policies under subsection (i); and 

20 (9) the potential for such programs, services, and 

21 policies to be replicated at other institutions of higher 

22 education. 

23 (f) USES OF FUNDS.—An eligible entity receiving a 

24 grant under this section shall use the grant funds to carry 

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1 out the programs described in subsection (a)(1)(B), which 

2 shall include at least 2 of the following activities: 

3 (1) Developing and implementing policies and 

4 programs to expand opportunities for students at eli5 gible entities described in subparagraphs (A) through 

6 (D) of section 502(a)(3) to earn bachelor’s degrees 

7 by— 

8 (A) facilitating the transfer of academic 

9 credits between institutions of higher education, 

10 including the transfer of academic credits for 

11 courses in the same field of study; and 

12 (B) expanding articulation agreements and 

13 guaranteed transfer agreements between such in14 stitutions, including through common course 

15 numbering and general core curriculum. 

16 (2) Expanding, enhancing, or creating academic 

17 programs or training programs, which shall be car18 ried out with industry or sector partnerships or in 

19 partnership with employers and may include other 

20 relevant partners, that provide relevant job-skill 

21 training (including apprenticeships and worksite 

22 learning and training opportunities) for skilled occu23 pations in high-demand industries. 

24 (3) Providing student support services, includ25 ing— 

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1 (A) intensive career and academic advising; 

2 (B) labor market information and job coun3 seling; and 

4 (C) transitional job support, supportive 

5 services, or assistance in connecting students 

6 with community resources. 

7 (4) Creating workforce programs that provide a 

8 sequence of education and occupational training that 

9 leads to industry-recognized credentials, including 

10 programs that— 

11 (A) blend basic skills and occupational 

12 training that lead to industry-recognized creden13 tials; 

14 (B) integrate developmental education cur15 ricula and instruction with for-credit coursework 

16 toward degree or certificate pathways; or 

17 (C) advance individuals on a career path 

18 toward high-wage occupations in high-demand 

19 industries. 

20 (5) Building or enhancing linkages, including 

21 the development of dual enrollment programs and 

22 early college high schools, between— 

23 (A) secondary education or adult education 

24 programs (including programs established under 

25 the Carl D. Perkins Career and Technical Edumstockstill on DSKH9S0YB1PROD with BILLS

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1 cation Act of 2006 and title II of the Workforce 

2 Investment Act of 1998 (29 U.S.C. 9201 et seq.)); 

3 and 

4 (B) eligible entities described in subpara5 graphs (A) through (D) of section 502(a)(3). 

6 (6) Implementing other innovative programs, 

7 services, and policies designed to— 

8 (A) increase postsecondary degree, certifi9 cate, and industry-recognized credential comple10 tion rates, particularly with respect to groups 

11 underrepresented in higher education, at eligible 

12 entities described in subparagraphs (A) through 

13 (D) of section 502(a)(3); and 

14 (B) increase the provision of training for 

15 students to enter skilled occupations in high-de16 mand industries. 

17 (7) Improving the timeliness of the process for 

18 creating degree, certificate, and industry-recognized 

19 credential programs at eligible entities described in 

20 subparagraphs (A) through (D) of section 502(a)(3) 

21 that— 

22 (A) reflect and respond to regional labor 

23 market developments and trends; 

24 (B) effectively address the workforce needs of 

25 employers in the State; and 

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1 (C) are designed in consultation with such 

2 employers. 

3 (g) BENCHMARKS.— 

4 (1) IN GENERAL.—Each eligible entity receiving 

5 a grant under this section shall develop quantifiable 

6 benchmarks on the following indicators (where appli7 cable), to be approved by the Secretary: 

8 (A) Closing gaps in enrollment and comple9 tion rates for— 

10 (i) groups underrepresented in higher 

11 education; and 

12 (ii) groups of students enrolled at the 

13 eligible entity (or at an institution of higher 

14 education under the jurisdiction of the eligi15 ble entity, in the case of an entity that is 

16 not an institution) who have the lowest en17 rollment and completion rates. 

18 (B) Addressing local and regional workforce 

19 needs. 

20 (C) Establishing articulation agreements be21 tween two-year and four-year public institutions 

22 of higher education within a State. 

23 (D) Improving comprehensive employment 

24 and educational outcomes for postsecondary edu25 cation and training programs, including— 

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1 (i) student persistence from one aca2 demic year to the following academic year; 

3 (ii) the number of credits students earn 

4 toward a certificate or an associate’s degree; 

5 (iii) the number of students in develop6 mental education courses who subsequently 

7 enroll in credit bearing coursework; 

8 (iv) transfer of general education cred9 its between institutions of higher education, 

10 as applicable; 

11 (v) completion of industry-recognized 

12 credentials or associate’s degrees to work in 

13 skilled occupations in high-demand indus14 tries; 

15 (vi) transfers to four-year institutions 

16 of higher education; and 

17 (vii) job placement related to skills 

18 training or associate’s degree completion. 

19 (2) REPORT.—The eligible entity receiving such 

20 a grant shall annually measure and report to the Sec21 retary the progress of the entity in achieving the 

22 benchmarks developed pursuant to paragraph (1). 

23 (h) PROVISION OF TRANSFER OF CREDIT INFORMA24 TION IN COMMUNITY COLLEGE COURSE SCHEDULES.—To 

25 the maximum extent practicable, each community college 

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1 receiving a grant under this section shall include in each 

2 electronic and printed publication of the college’s course 

3 schedule, in a manner of the college’s choosing, for each 

4 course listed in the college’s course schedule, whether such 

5 course is transferable for credit toward the completion of 

6 a 4-year baccalaureate degree at a public institution of 

7 higher education in the State in which the college is located. 

8 (i) EVALUATION.—The Secretary shall allocate not 

9 more than two percent of the funds appropriated under sec10 tion 501(b)(1) to the Institute of Education Sciences to con11 duct evaluations, ending not later than January 30, 2014, 

12 that— 

13 (1) assess the effectiveness of the grant programs 

14 carried out by each eligible entity receiving such a 

15 grant in— 

16 (A) improving postsecondary education 

17 completion rates (disaggregated by age, race, eth18 nicity, sex, income, and disability); 

19 (B) improving employment-related outcomes 

20 for students served by such programs; 

21 (C) serving high-need populations; and 

22 (D) building or enhancing working partner23 ships with the State public employment service 

24 or State or local workforce investment boards; 

25 and 

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1 (2) include any other information or assessments 

2 the Secretary may require. 

3 (j) REPORT.—The Secretary shall submit to the Com4 mittee on Health, Education, Labor, and Pensions of the 

5 Senate and the Committee on Education and Labor of the 

6 House of Representatives an annual report on grants 

7 awarded under this section, including— 

8 (1) the amount awarded to each eligible entity 

9 under this section; 

10 (2) a description of the activities conducted by 

11 each eligible entity receiving a grant under this sec12 tion; and 

13 (3) a summary of the results of the evaluations 

14 submitted to the Secretary under subsection (i) and 

15 the progress each eligible entity made toward achiev16 ing the benchmarks developed under subsection (g). 

17 SEC. 504. GRANTS TO ELIGIBLE STATES FOR COMMUNITY 

18 COLLEGE PROGRAMS. 

19 (a) PROGRAM AUTHORIZATION.—From the amount 

20 appropriated to carry out this section, the Secretary, in co21 ordination with the Secretary of Labor, shall award grants 

22 to eligible States, on a competitive basis, to implement the 

23 systematic reform of community colleges located in the State 

24 by carrying out programs, services, and policies that demmstockstill on DSKH9S0YB1PROD with BILLS

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1 onstrated effectiveness under the evaluation described in sec2 tion 503(i). 

3 (b) ELIGIBLE STATE.—In this section, the term ‘‘eligi4 ble State’’ means a State that demonstrates to the Secretary 

5 in the application submitted pursuant to subsection (e) that 

6 the State— 

7 (1) has a plan under section 782 of the Higher 

8 Education Act of 1965 to increase the State’s rate of 

9 persistence in and completion of postsecondary edu10 cation that takes into consideration and involves com11 munity colleges located in such State; 

12 (2) has a statewide longitudinal data system 

13 that includes data with respect to community colleges; 

14 (3) has an articulation agreement pursuant to 

15 section 486A of the Higher Education Act of 1965 (20 

16 U.S.C. 1093a); 

17 (4) is in compliance with section 137 of such Act 

18 (20 U.S.C. 1015f); and 

19 (5) meets any other requirements the Secretary 

20 may require. 

21 (c) GRANT DURATION; RENEWAL.—A grant awarded 

22 under this section shall be awarded to an eligible State for 

23 a 6-year period, except that if the Secretary determines that 

24 the eligible State has not made demonstrable progress in 

25 achieving the benchmarks developed pursuant to subsection 

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1 (g) by the end of the third year of the grant period, no fur2 ther grant funds shall be made available to the entity after 

3 the date of such determination. 

4 (d) FEDERAL AND NON-FEDERAL SHARE; SUPPLE5 MENT, NOT SUPPLANT.— 

6 (1) FEDERAL SHARE.—The amount of the Fed7 eral share under this section for a fiscal year shall be 

not greater than 1 8 ⁄2 of the costs of the reform described 

9 in subsection (f) that is carried out with the grant. 

10 (2) NON-FEDERAL SHARE.— 

11 (A) IN GENERAL.—The amount of the Non12 Federal share under this section for a fiscal year 

shall be not less than 1 13 ⁄2 of the costs of the reform 

14 described in subsection (f) that is carried out 

15 with the grant. The non-Federal share may be in 

16 cash or in kind, and may be provided from State 

17 resources, local resources, contributions from pri18 vate organizations, or a combination thereof. 

19 (B) FINANCIAL HARDSHIP WAIVER.—The 

20 Secretary may waive or reduce the non-Federal 

21 share of an eligible State that has submitted an 

22 application under this section if the State dem23 onstrates a need for such waiver or reduction due 

24 to extreme financial hardship, as defined by the 

25 Secretary by regulation. 

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1 (3) SUPPLEMENT, NOT SUPPLANT.—The Federal 

2 and non-Federal share required by this section shall 

3 be used to supplement, and not supplant, State and 

4 private resources that would otherwise be expended to 

5 carry out the systematic reform of community colleges 

6 in a State. 

7 (e) APPLICATION.—An eligible State desiring to receive 

8 a grant under this section shall submit to the Secretary an 

9 application at such time, in such manner, and containing 

10 such information as the Secretary may require. Such appli11 cation shall describe the programs, service, and policies to 

12 be used by the State to achieve the systematic reform de13 scribed in subsection (f), including— 

14 (1) the goals of such programs, services, and 

15 policies; 

16 (2) how the State will allocate grant funds to 

17 carry out such programs, services, and policies, in18 cluding identifying any State or private entity that 

19 will administer such programs, services, and policies; 

20 (3) how such programs, services, and policies 

21 will enable the State to— 

22 (A) meet the benchmarks developed pursu23 ant to subsection (g), and how the State will 

24 track and report the State’s progress in reaching 

25 such benchmarks; and 

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1 (B) benefit students attending all commu2 nity colleges within the State; 

3 (4) how the State will use such programs, serv4 ices, and policies to establish quantifiable targets for 

5 improving graduation rates and employment-related 

6 outcomes; 

7 (5) how the State will serve high-need popu8 lations through such programs, services, and policies; 

9 (6) how the State will partner with the State 

10 public employment service and State or local work11 force investment boards in carrying out such pro12 grams, services, and policies; 

13 (7) how the State will evaluate such programs, 

14 services, and policies, which may include participa15 tion in national evaluations; and 

16 (8) how the State will involve community col17 leges and community college faculty in the planning, 

18 implementation, and evaluation of such programs, 

19 services, and policies. 

20 (f) USES OF FUNDS.—An eligible State receiving a 

21 grant under this section shall use the grant funds to imple22 ment the systematic reform of community colleges located 

23 in the State by carrying out programs, services, and poli24 cies that the Secretary has determined to have demonstrated 

25 effectiveness based on the results of the evaluation described 

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1 in section 503(i). States shall allocate not less than 90 per2 cent of such grant funds to community colleges within the 

3 State. 

4 (g) BENCHMARKS.— 

5 (1) IN GENERAL.—Each eligible State receiving 

6 a grant under this section shall, in consultation with 

7 the Secretary, develop quantifiable benchmarks on the 

8 indicators identified in section 503(f)(1). 

9 (2) PROGRESS.—An eligible State receiving such 

10 a grant shall annually measure and report to the Sec11 retary progress in achieving the benchmarks developed 

12 pursuant to paragraph (1). 

13 (h) REPORT.— 

14 (1) REPORTS TO THE SECRETARY.—Each eligible 

15 State receiving a grant under this section shall annu16 ally submit to the Secretary and the Secretary of 

17 Labor a report on such grant, including— 

18 (A) a description of the systematic reform 

19 carried out by the State using such grant; and 

20 (B) the outcome of such reform, including 

21 the State’s progress in achieving the benchmarks 

22 developed under subsection (g). 

23 (2) REPORTS TO CONGRESS.—Not later than 6 

24 months after the end of the grant period, the Sec25 retary shall submit to the Committee on Health, Edumstockstill on DSKH9S0YB1PROD with BILLS

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1 cation, Labor, and Pensions of the Senate and the 

2 Committee on Education and Labor of the House of 

3 Representatives a summary of the reports submitted 

4 under paragraph (1) with respect to such grant pe5 riod. 

6 (i) SENSE OF CONGRESS.—It is the sense of Congress 

7 that— 

8 (1) community colleges play an important role 

9 in preparing and training students seeking to enter 

10 the workforce; 

11 (2) it is vital that all States have access to the 

12 resources and assistance needed to compete for grants 

13 authorized under this section; and 

14 (3) in executing the grant program authorized 

15 under this section, the Secretary will make available 

16 any and all assistance, guidance, and support to 

17 States seeking to compete for grants authorized under 

18 this section and will work to ensure that such grants 

19 are distributed in a fair and equitable manner. 

20 SEC. 505. NATIONAL ACTIVITIES. 

21 (a) OPEN ONLINE EDUCATION.—From the amount ap22 propriated to carry out this section, the Secretary is author23 ized to make competitive grants to, or enter into contracts 

24 with, institutions of higher education, philanthropic orga25 nizations, and other appropriate entities to develop, evalumstockstill on DSKH9S0YB1PROD with BILLS

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1 ate, and disseminate freely-available high-quality online 

2 training, high school courses, and postsecondary education 

3 courses. Entities receiving funds under this subsection shall 

4 ensure that electronic and information technology activities 

5 meet the access standards established under section 508 of 

6 the Rehabilitation Act of 1973 (29 U.S.C. 794d). 

7 (b) LEARNING AND EARNING RESEARCH CENTER.— 

8 (1) IN GENERAL.—From the amount appro9 priated to carry out this section, the Director of the 

10 Institute of Education Sciences is authorized to 

11 award a grant to, or enter into a contract with, an 

12 organization with demonstrated expertise in the re13 search and evaluation of community colleges to estab14 lish and operate the Learning and Earning Research 

15 Center (in this section referred to as the ‘‘Center’’). 

16 (2) GRANT TERM.—The grant or contract award17 ed under this section shall be awarded for a period 

18 of not more than 4 years. 

19 (3) BOARD.—The Center shall have an inde20 pendent advisory board of 9 individuals who— 

21 (A) are appointed by the Secretary, based 

22 on recommendations from the organization re23 ceiving the grant or contract under this section; 

24 and 

25 (B) who have demonstrated expertise in— 

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1 (i) data collection; 

2 (ii) data analysis; and 

3 (iii) econometrics, postsecondary edu4 cation, and workforce development research. 

5 (4) CENTER ACTIVITIES.—The Center shall— 

6 (A) develop— 

7 (i) peer-reviewed metrics to help con8 sumers make sound education and training 

9 choices, and to help students, workers, 

10 schools, businesses, researchers, and policy11 makers assess the effectiveness of community 

12 colleges, and courses of study at such col13 leges, in meeting education and employment 

14 objectives and serving groups that are 

15 underrepresented in postsecondary edu16 cation; 

17 (ii) common metrics and data elements 

18 to measure the education and employment 

19 outcomes of students attending community 

20 colleges; 

21 (B) coordinate with the Institute of Edu22 cation Sciences and States receiving a grant 

23 under subsection (c) to develop— 

24 (i) standardized data elements, defini25 tions, and data-sharing protocols to make it 

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1 possible for data systems related to postsec2 ondary education to be linked and inter3 operable, and for best practices to be shared 

4 among States; 

5 (ii) standards and processes for facili6 tating sharing of data in a manner that 

7 safeguards student privacy; and 

8 (C) develop and make widely available ma9 terials analyzing best practices and research on 

10 successful postsecondary education and training 

11 efforts; 

12 (D) make the data and metrics developed 

13 pursuant to subparagraph (A) available to the 

14 public in a transparent, user-friendly format 

15 that is accessible to individuals with disabilities; 

16 and 

17 (E) consult with representatives from States 

18 with respect to the activities of the Center. 

19 (c) STATE SYSTEMS.— 

20 (1) IN GENERAL.—From the amount appro21 priated to carry out this section, the Secretary is au22 thorized to award grants to States or consortia of 

23 States to establish cooperative agreements to develop, 

24 implement, and expand interoperable statewide longi25 tudinal data systems that— 

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1 (A) collect, maintain, disaggregate (by in2 stitution, income, race, ethnicity, sex, disability, 

3 and age), and analyze student data from com4 munity colleges, including data on the programs 

5 of study and education and employment out6 comes for particular students, tracked over time; 

7 and 

8 (B) can be linked to other data systems, as 

9 applicable, including elementary and secondary 

10 education and workforce data systems. 

11 (2) SUPPLEMENT, NOT SUPPLANT.—Funds ap12 propriated to carry out this subsection shall be used 

13 to supplement, and not supplant, other Federal and 

14 State resources that would otherwise be expended to 

15 carry out statewide longitudinal data systems, includ16 ing funding appropriated for State Longitudinal 

17 Data Systems in the American Recovery and Rein18 vestment Act of 2009 (Public Law 111–5; 123 Stat. 

19 115). 

20 (3) PRIVACY AND ACCESS TO DATA.— 

21 (A) IN GENERAL.—Each State or consortia 

22 that receives a grant under this subsection or 

23 any other provision of this Act shall implement 

24 measures to— 

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1 (i) ensure that the statewide longitu2 dinal data system under this subsection and 

3 any other data system the State or con4 sortia is operating for the purposes of this 

5 Act meet the requirements of section 444 of 

6 the General Education Provisions Act (20 

7 U.S.C. 1232g) (commonly known as the 

8 ‘‘Family Educational Rights and Privacy 

9 Act of 1974’’); 

10 (ii) limit the use of information in any 

11 such data system by governmental agencies 

12 in the State, including State agencies, State 

13 educational authorities, local educational 

14 agencies, community colleges, and institu15 tions of higher education, to education and 

16 workforce related activities under this Act 

17 or education and workforce related activi18 ties otherwise permitted by Federal or State 

19 law; 

20 (iii) prohibit the disclosure of person21 ally identifiable information except as per22 mitted under section 444 of the General 

23 Education Provisions Act and any addi24 tional limitations set forth in State law; 

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1 (iv) keep an accurate accounting of the 

2 date, nature, and purpose of each disclosure 

3 of personally identifiable information in 

4 any such data system, a description of the 

5 information disclosed, and the name and 

6 address of the person, agency, institution, or 

7 entity to whom the disclosure is made, 

8 which accounting shall be made available 

9 on request to parents of any student whose 

10 information has been disclosed; 

11 (v) notwithstanding section 444 of the 

12 General Education Provisions Act, require 

13 any non-governmental party obtaining per14 sonally identifiable information to sign a 

15 data use agreement prior to disclosure 

16 that— 

17 (I) prohibits the party from fur18 ther disclosing the information; 

19 (II) prohibits the party from 

20 using the information for any purpose 

21 other than the purpose specified in the 

22 agreement; and 

23 (III) requires the party to destroy 

24 the information when the purpose for 

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1 which the disclosure was made is ac2 complished; 

3 (vi) maintain adequate security meas4 ures to ensure the confidentiality and integ5 rity of any such data system, such as pro6 tecting a student record from identification 

7 by a unique identifier; 

8 (vii) where rights are provided to par9 ents under this clause, provide those rights 

10 to the student instead of the parent if the 

11 student has reached the age of 18 or is en12 rolled in a postsecondary educational insti13 tution; and 

14 (viii) ensure adequate enforcement of 

15 the requirements of this paragraph. 

16 (B) USE OF UNIQUE IDENTIFIERS.—It shall 

17 be unlawful for any Federal, State, or local gov18 ernmental agency to— 

19 (i) use the unique identifiers employed 

20 in such data systems for any purpose other 

21 than as authorized by Federal or State law; 

22 or 

23 (ii) deny any individual any right, 

24 benefit, or privilege provided by law because 

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1 of such individual’s refusal to disclose the 

2 individual’s unique identifier. 

3 (d) REPORT.—The Secretary shall submit to the Com4 mittee on Health, Education, Labor, and Pensions of the 

5 Senate and the Committee on Education and Labor of the 

6 House of Representatives an annual report on the amounts 

7 awarded to entities receiving grants or contracts under this 

8 section, and the activities carried out by such entities under 

9 such grants and contracts. 

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Union Calendar No. 129 

111TH CONGRESS 

1ST SESSION H. R. 3221 

[Report No. 111–232] 

A BILL 

To amend the Higher Education Act of 1965, and 

for other purposes. 

JULY 27, 2009 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 

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