I 

111TH CONGRESS 

1ST SESSION H. R. 3221 

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 

A BILL 

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

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘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. 


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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. 

Subtitle B—Student Financial Aid Form Simplification 

Sec. 121. General effective date. 

Sec. 122. Treatment of assets in need analysis. 

Sec. 123. Social Security allowances. 

Sec. 124. 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. Subsidized loan limitation. 

Sec. 216. Interest rates. 

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. Administrative expenses. 

TITLE III—MODERNIZATION, RENOVATION, AND REPAIR 

Subtitle A—Elementary and Secondary Education 

Sec. 301. Definitions. 


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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 Schools. 

Sec. 344. Education regarding projects. 

Sec. 345. Availability of funds. 

Subtitle B—Higher Education 

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

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—COMMUNITY COLLEGE INITIATIVE 

Sec. 501. Authorization and appropriation. 

Sec. 502. Definitions. 

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

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

Sec. 505. National activities. 


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1 SEC. 3. REFERENCES. 

2 Except as otherwise expressly provided, whenever in 

3 this Act an amendment or repeal is expressed in terms 

4 of an amendment to, or repeal of, a section or other provi5 sion, the reference shall be considered to be made to a 

6 section or other provision of the Higher Education Act of 

7 1965 (20 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 Section 401(b) (20 U.S.C. 1070a(b)) is amended— 

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

15 follows: 

16 ‘‘(A) The amount of the Federal Pell 

17 Grant for a student eligible under this part 

18 shall be— 

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

20 as specified in the last enacted appropria21 tion Act applicable to that award year, 

22 plus 

23 ‘‘(ii) the amount of the increase cal24 culated under paragraph (8)(B) for that 

25 year, less 


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

2 determined to be the expected family con3 tribution with respect to that student for 

4 that year.’’; and 

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

6 the Higher Education Opportunity Act (Public Law 

7 110–315), to read as follows: 

8 ‘‘(8) ADDITIONAL FUNDS.— 

9 ‘‘(A) IN GENERAL.—There are authorized 

10 to be appropriated, and there are appropriated, 

11 to carry out subparagraph (B) of this para12 graph (in addition to any other amounts appro13 priated to carry out this section and out of any 

14 money in the Treasury not otherwise appro15 priated) the following amounts— 

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

17 2008; 

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

19 2009; and 

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

21 for fiscal year 2010 and each subsequent 

22 fiscal year to provide the amount of in23 crease of the maximum Federal Pell Grant 

24 required by clauses (ii) and (iii) of sub25 paragraph (B). 


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1 ‘‘(B) INCREASE IN FEDERAL PELL

2 GRANTS.—The amounts made available pursu3 ant to subparagraph (A) shall be used to in4 crease the amount of the maximum Federal 

5 Pell Grant for which a student shall be eligible 

6 during an award year, as specified in the last 

7 enacted appropriation Act applicable to that 

8 award year, by— 

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

10 2008–2009 and 2009–2010; 

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

12 2011; and 

13 ‘‘(iii) the amount determined under 

14 subparagraph (C) for each succeeding 

15 award year. 

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

17 ‘‘(i) AWARD YEAR 2011–2012.—For 

18 award year 2011–2012, the amount deter19 mined under this subparagraph for pur20 poses of subparagraph (B)(iii) shall be 

21 equal to— 

22 ‘‘(I) $5,550 or the total max23 imum Federal Pell Grant for the pre24 ceding award year (as determined 

25 under clause (iv)(II)), whichever is 


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1 greater, increased by a percentage 

2 equal to the annual adjustment per3 centage for award year 2011–2012; 

4 reduced by 

5 ‘‘(II) $4,860 or the maximum 

6 Federal Pell Grant for which a stu7 dent was eligible for the preceding 

8 award year, as specified in the last en9 acted appropriation Act applicable to 

10 that year, whichever is greater; and 

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

12 ‘‘(ii) SUBSEQUENT AWARD YEARS.— 

13 For award year 2012–2013 and each of 

14 the subsequent award years, the amount 

15 determined under this subparagraph for 

16 purposes of subparagraph (B)(iii) shall be 

17 equal to— 

18 ‘‘(I) the total maximum Federal 

19 Pell Grant for the preceding award 

20 year (as determined under clause 

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

22 equal to the annual adjustment per23 centage for the award year for which 

24 the amount under this subparagraph 

25 is being determined; reduced by 


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1 ‘‘(II) $4,860 or the maximum 

2 Federal Pell Grant for which a stu3 dent was eligible for the preceding 

4 award year, as specified in the last en5 acted appropriation Act applicable to 

6 that year, whichever is greater; and 

7 ‘‘(III) rounded to the nearest $5. 

8 ‘‘(iii) LIMITATION ON DECREASES.— 

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

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

11 for an award year is less than the amount 

12 determined under this paragraph for the 

13 preceding award year, the amount deter14 mined under such clause for such award 

15 year shall be the amount determined under 

16 this paragraph for the preceding award 

17 year. 

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

19 this subparagraph— 

20 ‘‘(I) the term ‘annual adjustment 

21 percentage’ as it applies to an award 

22 year is equal to the sum of— 

23 ‘‘(aa) the estimated percent24 age change in the Consumer 

25 Price Index (as determined by 


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1 the Secretary, using the defini2 tion in section 478(f)) for the 

3 most recent calendar year ending 

4 prior to the beginning of that 

5 award year; and 

6 ‘‘(bb) one percentage point; 

7 and 

8 ‘‘(II) the term ‘total maximum 

9 Federal Pell Grant’ as it applies to a 

10 preceding award year is equal to the 

11 sum of— 

12 ‘‘(aa) the maximum Federal 

13 Pell Grant for which a student is 

14 eligible during an award year, as 

15 specified in the last enacted ap16 propriation Act applicable to that 

17 preceding award year; and 

18 ‘‘(bb) the amount of the in19 crease in the maximum Federal 

20 Pell Grant required by this para21 graph for that preceding award 

22 year. 

23 ‘‘(D) PROGRAM REQUIREMENTS AND OP24 ERATIONS OTHERWISE UNAFFECTED.—Except 

25 as provided in subparagraphs (B) and (C), 


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1 nothing in this paragraph shall be construed to 

2 alter the requirements and operations of the 

3 Federal Pell Grant Program as authorized 

4 under this section, or to authorize the imposi5 tion of additional requirements or operations 

6 for the determination and allocation of Federal 

7 Pell Grants under this section. 

8 ‘‘(E) AVAILABILITY OF FUNDS.—The 

9 amounts made available by subparagraph (A) 

10 for any fiscal year shall be available beginning 

11 on October 1 of that fiscal year, and shall re12 main available through September 30 of the 

13 succeeding fiscal year.’’. 

14 SEC. 102. COLLEGE ACCESS AND COMPLETION INNOVA15 TION FUND. 

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

17 et seq.) is amended by striking the header of such part 

18 and inserting the following: 

19 ‘‘PART E—COLLEGE ACCESS AND COMPLETION 

20 INNOVATION FUND’’. 

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

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

23 the following: 

24 ‘‘SEC. 780. PURPOSES. 

25 ‘‘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 organiza4 tions to improve student success, completion, and 

5 post-completion employment, particularly for stu6 dents from groups that are underrepresented in 

7 postsecondary education; and 

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

9 data systems, common metrics, and reporting sys10 tems to enhance the quality and availability of infor11 mation about student success, completion, and post12 completion 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 

22 through 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) 24 percent shall be made available to 

6 carry out section 783; and 

7 ‘‘(D) 1 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 

11 further 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 

20 Federal share under this section for a fiscal year 

shall be equal to 2 21 ⁄3 of the costs of the activities and 

22 services described in subsection (d)(1) that are car23 ried out under the grant. 

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

25 the non-Federal share under this section shall be 


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equal to 1 1 ⁄3 of the costs of the activities and services 

2 described in subsection (d)(1). The non-Federal 

3 share may be in cash or in kind, and may be pro4 vided from State resources, contributions from pri5 vate organizations, or both. 

6 ‘‘(3) SUPPLEMENT, NOT SUPPLANT.—The Fed7 eral and non-Federal shares required by this para8 graph shall be used to supplement, and not sup9 plant, State and private resources that would other10 wise be expended to carry out activities and services 

11 to promote student persistence in and completion of 

12 postsecondary education. 

13 ‘‘(c) APPLICATION AND SELECTION.— 

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

15 fiscal year for which a State desires to receive a 

16 grant under this section, the State agency with ju17 risdiction over higher education, or another agency 

18 designated by the Governor or chief executive of the 

19 State to administer the grant program under this 

20 section, shall submit an application to the Secretary 

21 at such time, in such manner, and containing such 

22 information as the Secretary may require. Such ap23 plication shall include— 

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

25 to 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 bene5 fits to students in the State who are from 

6 groups that are underrepresented in postsec7 ondary education; 

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

9 provide for the non-Federal share from State 

10 resources, private contributions, or both; 

11 ‘‘(D) a description of— 

12 ‘‘(i) the administrative system that 

13 the State has in place to administer the ac14 tivities 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, 

23 under 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 

7 in and completion of postsecondary education. 

8 Such plan shall include— 

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

10 quantifiable goals with respect to— 

11 ‘‘(I) the rates of postsecondary 

12 enrollment, persistence, and comple13 tion, disaggregated by income, race, 

14 ethnicity, gender, disability, and age 

15 of students; 

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; 

25 and 


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1 ‘‘(IV) improving coordination be2 tween two-year and four-year institu3 tions of higher education in the State, 

4 including supporting comprehensive 

5 articulation agreements between such 

6 institutions; and 

7 ‘‘(ii) the State’s plan to develop a 

8 statewide longitudinal data system that 

9 will— 

10 ‘‘(I) collect, maintain, 

11 disaggregate (by income, race, eth12 nicity, gender, disability, and age of 

13 students), and analyze postsecondary 

14 education and workforce information, 

15 including— 

16 ‘‘(aa) postsecondary edu17 cation enrollment, persistence, 

18 and completion information; 

19 ‘‘(bb) post-completion em20 ployment outcomes of students 

21 who enrolled in postsecondary 

22 programs and training programs 

23 offered by eligible training pro24 viders under the Workforce InVerDate Nov 24 2008 02:20 Jul 16, 2009 Jkt 079200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H3221.IH H3221

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1 vestment Act of 1998 (29 U.S.C. 

2 2801 et seq.); and 

3 ‘‘(cc) postsecondary edu4 cation and employment outcomes 

5 of students who move out of the 

6 State; and 

7 ‘‘(II) make the information de8 scribed in subclause (I) available to 

9 the general public in a manner that is 

10 transparent and user-friendly. 

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

12 planning or policy formulation process with re13 spect to increasing postsecondary enrollment, 

14 persistence, and completion that— 

15 ‘‘(i) encourages coordination between 

16 the State administration of grants under 

17 this section and similar State programs; 

18 ‘‘(ii) encourages State policies that 

19 are designed to improve rates of enroll20 ment and persistence in, and completion 

21 of, postsecondary education for all cat22 egories of institutions of higher education 

23 described in section 132(d) in the State; 

24 ‘‘(iii) considers the postsecondary edu25 cation needs of students from groups that 


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1 are underrepresented in postsecondary 

2 education; 

3 ‘‘(iv) considers the resources of public 

4 and private institutions of higher edu5 cation, organizations, and agencies within 

6 the State that are capable of providing ac7 cess to postsecondary education opportuni8 ties within the State; and 

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

10 active participation in the comprehensive 

11 planning or policy formulation process or 

12 processes, through membership on State 

13 planning commissions, State advisory 

14 councils, or other State entities established 

15 by the State and consistent with State law, 

16 by representatives of— 

17 ‘‘(I) institutions of higher edu18 cation, including at least one member 

19 from a junior or community college 

20 (as defined in section 312(f)); 

21 ‘‘(II) students; 

22 ‘‘(III) other providers of postsec23 ondary education services (including 

24 organizations providing access to such 

25 services); and 


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1 ‘‘(IV) the general public in the 

2 State. 

3 ‘‘(C) That the State will incorporate poli4 cies and practices that, through the activities 

5 funded under this section, are determined to be 

6 effective in improving rates of postsecondary 

7 education enrollment, persistence, and comple8 tion into the future postsecondary education 

9 policies and practices of the State to ensure 

10 that the benefits achieved through the activities 

11 funded under this section continue beyond the 

12 period of the grant. 

13 ‘‘(3) SUBGRANTS TO NONPROFIT ORGANIZA14 TIONS.—A State receiving a payment under this sec15 tion may elect to make a subgrant to one or more 

16 nonprofit organizations in the State, including agen17 cies with agreements with the Secretary under sub18 sections (b) and (c) of section 428 on the date of the 

19 enactment of the Student Aid and Fiscal Responsi20 bility Act of 2009, or a partnership of such organi21 zations, to carry out activities and services described 

22 in subsection (d)(1), if the nonprofit organization or 

23 partnership— 


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

2 date of the enactment of the Student Aid and 

3 Fiscal Responsibility Act of 2009; and 

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

5 activities and services related to promoting per6 sistence in, and completion of, postsecondary 

7 education, such as the activities and services de8 scribed in subsection (d)(1). 

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

10 section, the Secretary shall give priority to States 

11 that enter into a partnership with one of the fol12 lowing entities to carry out the activities and serv13 ices described in subsection (d)(1): 

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

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

16 ‘‘(B) An agency with an agreement with 

17 the Secretary under subsections (b) and (c) of 

18 section 428 on the date of the enactment of 

19 Student Aid and Fiscal Responsibility Act of 

20 2009. 

21 ‘‘(d) USES OF FUNDS.— 

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

23 grant under this section shall use the grant funds 

24 to— 


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

2 increase persistence in, and completion of, post3 secondary education, which may include— 

4 ‘‘(i) programs to assist institutions of 

5 higher education in providing financial lit6 eracy, education, and counseling to en7 rolled students; 

8 ‘‘(ii) programs intended to assist stu9 dents enrolled in an institution of higher 

10 education with reducing the amount of 

11 loan debt incurred by such students; 

12 ‘‘(iii) providing grants to students de13 scribed in section 415A(a)(1), in accord14 ance with the terms of that section; and 

15 ‘‘(iv) carrying out the activities de16 scribed in section 415E(a); and 

17 ‘‘(B) support the development and imple18 mentation of a statewide longitudinal data sys19 tem, as described in subsection (c)(2)(A)(ii). 

20 ‘‘(2) PROHIBITED USES.—Funds made avail21 able under this section shall not be used to promote 

22 any lender’s loans or other services. 

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

24 State— 


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

2 of the Federal and non-Federal share used for 

3 paragraph (1)(A) on activities that benefit stu4 dents enrolled in junior or community colleges 

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

6 institutions, or two-year programs of instruc7 tion at four-year public institutions; 

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

9 the sum of the Federal and non-Federal share 

10 under this section for activities described in 

11 paragraph (1)(B); and 

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

13 the sum of the Federal and non-Federal share 

14 under this section for administrative purposes 

15 relating to the grant under this section. 

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

17 grant under this section shall submit to the Secretary an 

18 annual report on— 

19 ‘‘(1) the activities and services described in sub20 section (d)(1) that are carried out with such grant; 

21 ‘‘(2) the effectiveness of such activities and 

22 services in increasing postsecondary persistence and 

23 completion, as determined by measurable progress in 

24 achieving the State’s goals for persistence and com25 pletion described in the Access and Completion Plan 


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1 submitted by the State under subsection (c)(2)(A), 

2 if such plan has been submitted; and 

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

4 Secretary may require. 

5 ‘‘SEC. 783. INNOVATION IN COLLEGE ACCESS AND COMPLE6 TION NATIONAL ACTIVITIES. 

7 ‘‘(a) PROGRAMS AUTHORIZED.—From the amount 

8 appropriated under section 781(a)(2)(C) to carry out this 

9 section, the Secretary shall award grants, on a competitive 

10 basis, to eligible entities in accordance with this section 

11 to conduct innovative programs that advance knowledge 

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

13 the number of individuals with postsecondary degrees or 

14 certificates. 

15 ‘‘(b) ELIGIBLE ENTITIES.—The Secretary is author16 ized to award grants under subsection (a) to— 

17 ‘‘(1) institutions of higher education; 

18 ‘‘(2) States; 

19 ‘‘(3) nonprofit organizations with demonstrated 

20 experience in the operation of programs to increase 

21 postsecondary completion; 

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

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

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

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


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1 ‘‘(6) consortia of any of the entities described 

2 in paragraphs (1) through (5). 

3 ‘‘(c) INNOVATION GRANTS.— 

4 ‘‘(1) MINIMUM AWARD.—A grant awarded 

5 under subsection (a) shall be not less than 

6 $1,000,000. 

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

8 to award grants under subsection (a) includes— 

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

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

11 of the amount of funds received by such entity 

12 from philanthropic organizations (as such term 

13 is defined in section 781(i)(1)) to conduct inno14 vative programs that advance knowledge about, 

15 and adoption of, policies and practices that in16 crease the number of individuals with postsec17 ondary degrees or certificates; and 

18 ‘‘(B) the authority to award an eligible en19 tity a grant to develop 2-year programs that 

20 provide supplemental grant or loan benefits to 

21 students that— 

22 ‘‘(i) are designed to improve student 

23 outcomes, including degree completion, 

24 graduation without student loan debt, and 

25 post-completion employment; 


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1 ‘‘(ii) are in addition to the student fi2 nancial aid available under title IV of this 

3 Act; and 

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

5 the amount of that aid or any other stu6 dent financial aid for which a student is 

7 otherwise eligible under Federal law. 

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

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

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

11 and containing such information as the Secretary 

12 shall require. 

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

14 subsection (a), the Secretary shall give priority to 

15 applications that— 

16 ‘‘(A) are from an eligible entity with dem17 onstrated experience in serving students from 

18 groups that are underrepresented in postsec19 ondary education, including institutions of high20 er education that are eligible for assistance 

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

22 that includes an eligible entity with such experi23 ence; 

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

25 public institution of higher education that does 


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1 not predominantly provide an educational pro2 gram for which it awards a bachelor’s degree 

3 (or an equivalent degree), or from a consortium 

4 that includes at least one such institution; 

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

6 certificate completion in the fields of science, 

7 technology, engineering, and mathematics, in8 cluding preparation for, or entry into, 

9 postbaccaluareate study; 

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 tradi14 tionally underrepresented in postsecondary edu15 cation, or are from a consortium that includes 

16 such an organization; or 

17 ‘‘(E) encourage partnerships between insti18 tutions of higher education with high degree19 completion rates and institutions of higher edu20 cation with low degree-completion rates from 

21 the same category of institutions described in 

22 section 132(d) to facilitate the sharing of infor23 mation relating to, and the implementation of, 

24 best practices for increasing postsecondary com25 pletion. 


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

2 may reserve up to $50,000,000 per year to award 

3 grants and contracts to provide technical assistance 

4 to 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 el11 igible entity receiving a grant under subsection (a) 

12 shall submit to the Secretary and annual report 

13 on— 

14 ‘‘(A) the effectiveness of the program car15 ried out with such grant in increasing postsec16 ondary completion, as determined by measur17 able progress in achieving the goals of the pro18 gram, as described in the application for such 

19 grant; and 

20 ‘‘(B) any other information or assessments 

21 the Secretary may require. 

22 ‘‘(2) ANNUAL REPORT TO CONGRESS.—The 

23 Secretary shall submit to the authorizing committees 

24 an annual report on grants awarded under sub25 section (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 conduct a rigorous evaluation of the pro10 grams funded under this part. Not later than January 30, 

11 2016, the Director shall issue a final report on such eval12 uation to the authorizing committees and the Secretary, 

13 and shall make such report available to the public.’’. 

14 SEC. 103. INVESTMENT IN HISTORICALLY BLACK COL15 LEGES AND UNIVERSITIES AND OTHER MI16 NORITY-SERVING INSTITUTIONS. 

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

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

19 ‘‘$255,000,000’’ and all that follows and inserting 

20 ‘‘$255,000,000 for each of the fiscal years 2008 

21 through 2014.’’; and 

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

23 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 517, 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 

15 2-year Hispanic-serving institutions 

16 and 4-year institutions in such fields; 

17 and 

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

19 grants under section 355.’’. 

20 SEC. 104. INVESTMENT IN COOPERATIVE EDUCATION. 

21 There are authorized to be appropriated, and there 

22 are appropriated, to carry out part N of title VIII of the 

23 Higher Education Act of 1965 (20 U.S.C. 1161n) (in ad24 dition to any other amounts appropriated to carry out 


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1 such part and out of any money in the Treasury not other2 wise appropriated), $10,000,000 for fiscal year 2010. 

3 Subtitle B—Student Financial Aid 

4 Form Simplification 

5 SEC. 121. GENERAL EFFECTIVE DATE. 

6 Except as otherwise provided in this subtitle, amend7 ments made by this subtitle shall be effective with respect 

8 to determinations of need for assistance under title IV of 

9 the Higher Education Act of 1965 (20 U.S.C. 1070 et 

10 seq.) for award years beginning on or after July 1, 2011. 

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

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

13 1087kk) is amended— 

14 (1) by striking ‘‘Except’’ and inserting the fol15 lowing: 

16 ‘‘(a) IN GENERAL.—Except’’; 

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

18 after ‘‘therein’’; and 

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

20 ‘‘(b) ASSET CAP FOR NEED-BASED AID.—Notwith21 standing any other provision of this title, a student shall 

22 not be eligible to receive any need-based grant, loan, or 

23 work assistance under this title if— 

24 ‘‘(1) in the case of a dependent student, the 

25 combined net assets of the student and the student’s 


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1 parents are equal to an amount greater than 

2 $150,000 (or a successor amount prescribed by the 

3 Secretary under section 478(c)); or 

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

5 net assets of the student (and the student’s spouse, 

6 if applicable) are equal to an amount greater than 

7 $150,000 (or a successor amount prescribed by the 

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

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

10 1087nn(b)) is amended— 

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

12 (2) by redesignating paragraphs (5), (6), and 

13 (7) as paragraphs (4), (5), and (6), respectively. 

14 (c) DEPENDENT STUDENTS.—Section 475 (20 

15 U.S.C. 1087oo) is amended— 

16 (1) in subsection (a)— 

17 (A) in paragraph (1)— 

18 (i) by striking ‘‘adjusted’’; and 

19 (ii) by inserting ‘‘and’’ after the semi20 colon; 

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

22 and inserting a period; and 

23 (C) by striking paragraph (3); 

24 (2) in subsection (b)— 


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1 (A) in the header, by striking ‘‘AD2 JUSTED’’; 

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

4 by striking ‘‘adjusted’’; 

5 (C) by striking paragraph (1); 

6 (D) by redesignating paragraphs (2) and 

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

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

9 subparagraph (D) of this paragraph), by strik10 ing ‘‘adjusted’’; and 

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

12 subparagraph (D) of this paragraph), by strik13 ing ‘‘paragraph (2)’’ and inserting ‘‘paragraph 

14 (1)’’; 

15 (3) by repealing subsection (d); 

16 (4) in subsection (e)— 

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

18 and inserting ‘‘The available’’; 

19 (B) by striking ‘‘to as ‘AAI’)’’ and insert20 ing ‘‘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’’; 

5 (5) in subsection (f)— 

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

7 appears; 

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

9 assets’’; and 

10 (C) in paragraph (3)— 

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

12 inserting ‘‘is taken into’’; and 

13 (ii) by striking ‘‘adjusted’’; 

14 (6) in subsection (g)(6), by striking ‘‘exceeds 

15 the sum of’’ and all that follows and inserting ‘‘ex16 ceeds the parents’ total income (as defined in section 

17 480)’’; 

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

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

20 each place it appears. 

21 (d) FAMILY CONTRIBUTION FOR INDEPENDENT STU22 DENTS WITHOUT DEPENDENTS OTHER THAN A

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

24 (1) in subsection (a)— 

25 (A) by striking paragraph (1); 


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1 (B) by redesignating paragraphs (2) and 

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

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

4 subparagraph (B)), by striking ‘‘the sum result5 ing under paragraph (1)’’ and inserting ‘‘the 

6 family’s contribution from available income (de7 termined in accordance with subsection (b))’’; 

8 and 

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

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

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

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

13 (3) in subsection (d)— 

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

15 (B) by striking ‘‘or assets’’. 

16 (e) FAMILY CONTRIBUTION FOR INDEPENDENT STU17 DENTS WITH DEPENDENTS OTHER THAN A SPOUSE.— 

18 Section 477 (20 U.S.C. 1087qq) is amended— 

19 (1) in subsection (a)— 

20 (A) by striking paragraph (1); 

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

22 and (4) as paragraphs (1), (2), and (3), respec23 tively; 

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

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


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

2 available income (determined in accordance with 

3 subsection (b))’’; 

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

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

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

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

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

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

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

11 (3) in subsection (d)— 

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

13 and inserting ‘‘The available’’; 

14 (B) by striking ‘‘to as ‘AAI’)’’ and insert15 ing ‘‘to as ‘AI’)’’; 

16 (C) by striking ‘‘From Adjusted Available 

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

18 Income (AI)’’; and 

19 (D) in the table— 

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

21 ‘‘If AI’’; and 

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

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

24 (E) in subsection (e)— 

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


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1 (ii) by striking ‘‘or assets’’. 

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

3 (20 U.S.C. 1087rr) is amended— 

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

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

6 term appears; 

7 (2) by amending subsection (c) to read as fol8 lows: 

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

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

11 shall publish in the Federal Register a revised net asset 

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

13 shall be determined by increasing the dollar amount in 

14 such section by a percentage equal to the estimated per15 centage change in the Consumer Price Index (as deter16 mined by the Secretary) between December 2010 and the 

17 December preceding the beginning of such award year, 

18 and rounding the result to the nearest $5.’’; 

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

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

21 both places it appears. 

22 SEC. 123. SOCIAL SECURITY ALLOWANCES. 

23 (a) PARENT’S AVAILABLE INCOME.—Section 

24 475(c)(3) (20 U.S.C. 1087oo(c)(3)) is amended by strikVerDate Nov 24 2008 02:20 Jul 16, 2009 Jkt 079200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\H3221.IH H3221

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1 ing ‘‘amount earned by’’ and inserting ‘‘total income (as 

2 defined in section 480) of’’. 

3 (b) STUDENTS WITHOUT DEPENDENTS.—Section 

4 476(b)(3) (20 U.S.C. 1087pp(b)(3)) is amended by strik5 ing ‘‘amount earned by’’ and inserting ‘‘total income (as 

6 defined in section 480) of’’. 

7 (c) STUDENTS WITH DEPENDENTS.—Section 

8 477(b)(3) (20 U.S.C. 1087qq(b)(3)) is amended by strik9 ing ‘‘amount estimated to be earned by’’ and inserting 

10 ‘‘total income (as defined in section 480) of’’. 

11 SEC. 124. CHANGES TO TOTAL INCOME; AID ELIGIBILITY. 

12 (a) DEFINITION OF UNTAXED INCOME AND BENE13 FITS.—Section 480(b)(1) (20 U.S.C. 1087vv(b)(1)), as 

14 amended by the Higher Education Opportunity Act (Pub15 lic Law 110–315), is amended— 

16 (1) by striking subparagraphs (A), (B), (C), 

17 (E), (F), and (I); 

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

19 and (H) as subparagraphs (A), (B), and (C), respec20 tively; 

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

22 paragraph (2)), by inserting ‘‘and’’ after the semi23 colon; and 


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

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

3 period. 

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

5 U.S.C. 1087vv(f)(2)) is amended— 

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

7 (B); 

8 (2) by striking the period at the end of sub9 paragraph (C) and inserting ‘‘; or’’; and 

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

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

12 defined in section 3(2) of the Employee Retire13 ment Income Security Act of 1974 (29 U.S.C. 

14 1002(2))).’’. 

15 (c) FINANCIAL ADMINISTRATOR DISCRETION.—Sec16 tion 479A(b) (20 U.S.C. 1087tt) is amended in the sub17 section heading, by striking ‘‘TO ASSETS’’. 

18 (d) SUSPENSION OF ELIGIBILITY FOR DRUG-RE19 LATED OFFENSES.—Section 484(r)(1) (20 U.S.C. 

20 1091(r)(1)) is amended to read as follows: 

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

22 of any offense under any Federal or State law in23 volving the sale of a controlled substance for conduct 

24 that occurred during a period of enrollment for 

25 which the student was receiving any grant, loan, or 


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1 work assistance under this title shall not be eligible 

2 to receive any grant, loan, or work assistance under 

3 this title from the date of that conviction for the pe4 riod of time specified in the following subpara5 graphs: 

6 ‘‘(A) For a first offense, the period of in7 eligibility shall be 2 years. 

8 ‘‘(B) For a second offense, the period of 

9 ineligibility shall be indefinite.’’. 

10 TITLE II—STUDENT LOAN 

11 REFORM 

12 Subtitle A—Stafford Loan Reform 

13 SEC. 201. FEDERAL FAMILY EDUCATION LOAN APPROPRIA14 TIONS. 

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

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

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

18 may be expended after June 30, 2010, with respect 

19 to loans under this part for which the first disburse20 ment would be made after such date’’ after ‘‘ex21 pended’’; and 

22 (2) by adding at the end the following new sub23 section: 

24 ‘‘(d) TERMINATION OF AUTHORITY TO MAKE OR IN25 SURE NEW LOANS.—Notwithstanding paragraphs (1) 


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

2 law— 

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

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

5 June 30, 2010; and 

6 ‘‘(2) no funds are authorized to be appro7 priated, or may be expended, under this Act or any 

8 other Act to make or insure loans under this part 

9 (including consolidation loans) for which the first 

10 disbursement would be made after June 30, 2010, 

11 except as expressly authorized by an Act of Congress en12 acted after the date of enactment of Student Aid and Fis13 cal Responsibility Act of 2009.’’. 

14 SEC. 202. SCOPE AND DURATION OF FEDERAL LOAN INSUR15 ANCE PROGRAM. 

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

17 striking ‘‘September 30, 1976,’’ and all that follows and 

18 inserting ‘‘September 30, 1976, for each of the succeeding 

19 fiscal years ending prior to October 1, 2009, and for the 

20 period from October 1, 2009, to June 30, 2010, for loans 

21 first disbursed on or before June 30, 2010.’’. 

22 SEC. 203. APPLICABLE INTEREST RATES. 

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

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

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


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

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

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

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

5 2006,’’; and 

6 (4) in paragraph (4)— 

7 (A) in the matter preceding subparagraph 

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

9 ‘‘July 1, 2010’’; and 

10 (B) by repealing subparagraphs (D) and 

11 (E). 

12 SEC. 204. FEDERAL PAYMENTS TO REDUCE STUDENT IN13 TEREST COSTS. 

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

15 (20 U.S.C. 1078) is amended— 

16 (1) in subsection (a)— 

17 (A) in paragraph (1), in the matter pre18 ceding subparagraph (A), by inserting ‘‘for 

19 which the first disbursement is made before 

20 July 1, 2010, and’’ after ‘‘eligible institution’’; 

21 and 

22 (B) in paragraph (5), by striking ‘‘Sep23 tember 30, 2014,’’ and all that follows through 

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

25 (2) in subsection (b)(1)— 


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

2 ‘‘and before July 1, 2010,’’ after ‘‘July 1, 

3 2006,’’; and 

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

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

6 2010,’’ after ‘‘July 1, 2006,’’; 

7 (3) in subsection (f)(1)(A)(ii)— 

8 (A) by striking ‘‘during fiscal years begin9 ning’’; and 

10 (B) by inserting ‘‘and first disbursed be11 fore July 1, 2010,’’ after ‘‘October 1, 2003,’’; 

12 and 

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

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

15 Act shall’’. 

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

17 Section 303 of the College Cost Reduction and Access Act 

18 (Public Law 110–84) is repealed. 

19 SEC. 205. FEDERAL PLUS LOANS. 

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

21 amended by striking ‘‘A graduate’’ and inserting ‘‘Prior 

22 to July 1, 2010, a graduate’’. 

23 SEC. 206. FEDERAL CONSOLIDATION LOAN. 

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

25 3) is amended— 


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1 (1) in subsection (a)— 

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

3 read as follows: 

4 ‘‘(V) an individual who has a consoli5 dation loan under this section and does not 

6 have a consolidation loan under section 

7 455(g) may obtain a subsequent consolida8 tion loan under section 455(g).’’; and 

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

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

11 ‘‘under this part’’; 

12 (2) in subsection (b)— 

13 (A) in paragraph (1)(E), by inserting be14 fore the semicolon ‘‘, and before July 1, 2010’’ 

15 and 

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

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

18 2010,’’; 

19 (3) in subsection (c)(1)— 

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

21 ‘‘and that is disbursed before July 1, 2010,’’ 

22 after ‘‘2006,’’; and 

23 (B) in subparagraph (C), by inserting 

24 ‘‘and first disbursed before July 1, 2010,’’ after 

25 ‘‘1994,’’; and 


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1 (4) in subsection (e), by striking ‘‘September 

2 30, 2014.’’ and inserting ‘‘June 30, 2010. No loan 

3 may be made under this section for which the first 

4 disbursement would be on or after July 1, 2010.’’. 

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

6 subsection (a)(1)(A) shall be effective at the close of June 

7 30, 2010. 

8 SEC. 207. UNSUBSIDIZED STAFFORD LOANS FOR MIDDLE9 INCOME BORROWERS. 

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

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

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

13 this part’’; 

14 (2) in subsection (b)— 

15 (A) by striking ‘‘Any student’’ and insert16 ing ‘‘Prior to July 1, 2010, any student’’; and 

17 (B) by inserting ‘‘for which the first dis18 bursement is made before such date’’ after ‘‘un19 subsidized Federal Stafford Loan’’; and 

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

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

22 2006,’’. 


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1 SEC. 208. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE 

2 ATTORNEYS. 

3 Section 428L(b)(2)(A) (20 U.S.C. 1078– 

4 12(b)(2)(A)) is amended— 

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

6 ‘‘(i) subject to clause (ii)— 

7 ‘‘(I) a loan made, insured, or 

8 guaranteed under this part, and that 

9 is first disbursed before July 1, 2010; 

10 or 

11 ‘‘(II) a loan made under part D 

12 or part E; and’’; and 

13 (2) in clause (ii)— 

14 (A) by striking ‘‘428C or 455(g)’’ and in15 serting ‘‘428C, that is disbursed before July 1, 

16 2010, or section 455(g)’’; and 

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

18 which the first disbursement is made before 

19 July 1, 2010,’’ after ‘‘or 428H’’. 

20 SEC. 209. SPECIAL ALLOWANCES. 

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

22 (1) in subsection (b)(2)(I)— 

23 (A) in the header, by inserting ‘‘, AND BE24 FORE JULY 1, 2010’’ after ‘‘2000’’; 

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

26 July 1, 2010,’’ after ‘‘2000,’’; 


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1 (C) in clause (ii)(II), by inserting ‘‘and be2 fore July 1, 2010,’’ after ‘‘2006,’’; 

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

4 July 1, 2010,’’ after ‘‘2000,’’; 

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

6 is disbursed before July 1, 2010,’’ after 

7 ‘‘2000,’’; 

8 (F) in clause (v)(I), by inserting ‘‘and be9 fore July 1, 2010,’’ after ‘‘2006,’’; and 

10 (G) in clause (vi)— 

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

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

13 (ii) in the matter preceding subclause 

14 (I), by inserting ‘‘and before July 1, 

15 2010,’’ after ‘‘2007,’’; 

16 (2) in subsection (c)— 

17 (A) in paragraph (2)(B)— 

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

19 after the semicolon; 

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

21 and inserting a period; and 

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

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

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

25 ‘‘1992,’’; and 


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

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

3 SEC. 210. REVISED SPECIAL ALLOWANCE CALCULATION. 

4 (a) REVISED CALCULATION RULE.—Section 

5 438(b)(2)(I) of the Higher Education Act of 1965 (20 

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

7 the following new clause: 

8 ‘‘(vii) REVISED CALCULATION RULE

9 TO REFLECT FINANCIAL MARKET CONDI10 TIONS.— 

11 ‘‘(I) CALCULATION BASED ON

12 LIBOR.—For the calendar quarter be13 ginning on January 1, 2010, and each 

14 subsequent calendar quarter, in com15 puting the special allowance paid pur16 suant to this subsection with respect 

17 to loans described in subclause (II), 

18 clause (i)(I) of this subparagraph 

19 shall be applied by substituting ‘of the 

20 1-month London Inter Bank Offered 

21 Rate (LIBOR) for United States dol22 lars in effect for each of the days in 

23 such quarter as compiled and released 

24 by the British Bankers Association’ 

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1 mercial paper (financial) rates in ef2 fect for each of the days in such quar3 ter as reported by the Federal Reserve 

4 in Publication H–15 (or its successor) 

5 for such 3-month period’. 

6 ‘‘(II) LOANS ELIGIBLE FOR

7 LIBOR-BASED CALCULATION.—The 

8 special allowance paid pursuant to 

9 this subsection shall be calculated as 

10 described in subclause (I) with respect 

11 to special allowance payments for the 

12 3-month period ending March 31, 

13 2010, and each succeeding 3-month 

14 period, on loans for which the first 

15 disbursement is made— 

16 ‘‘(aa) on or after the date of 

17 enactment of the Student Aid 

18 and Fiscal Responsibility Act of 

19 2009, and before July 1, 2010; 

20 and 

21 ‘‘(bb) on or after January 1, 

22 2000, and before the date of en23 actment of the Student Aid and 

24 Fiscal Responsibility Act of 

25 2009, if, not later than the last 


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1 day of the second full fiscal quar2 ter after the date of enactment of 

3 such Act, the holder of the loan 

4 affirmatively and permanently 

5 waives all contractual, statutory 

6 or other legal rights to a special 

7 allowance paid pursuant to this 

8 subsection that is calculated 

9 using the formula in effect at the 

10 time the loans were first dis11 bursed. 

12 ‘‘(III) TERMS OF WAIVER.—A 

13 waiver pursuant to subclause (II)(bb) 

14 shall— 

15 ‘‘(aa) be applicable to all 

16 loans described in such subclause 

17 that are held, under any lender 

18 identification number associated 

19 with the holder (pursuant to sec20 tion 487B), directly or as an eli21 gible lender trustee on behalf of 

22 another party; and 

23 ‘‘(bb) apply with respect to 

24 all future calculations of the spe25 cial allowance on loans described 


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1 in such subclause that are held 

2 on the date of such waiver or 

3 that are acquired by the holder 

4 after such date. 

5 ‘‘(IV) PARTICIPANT’S YIELD.— 

6 For the calendar quarter beginning on 

7 January 1, 2010, and each subse8 quent calendar quarter, the Sec9 retary’s participant yield in any loan 

10 for which the first disbursement is 

11 made on or after January 1, 2000, 

12 and before January 1, 2010, and that 

13 is held by a lender that has sold any 

14 participation interest in such loan to 

15 the Secretary shall be determined by 

16 using the LIBOR-based rate described 

17 in subclause (I) as the substitute rate 

18 (for the commercial paper rate) re19 ferred to in the participation agree20 ment between the Secretary and such 

21 lender.’’; 

22 (b) CONFORMING AMENDMENT.—Section 

23 438(b)(2)(I) of such Act (20 U.S.C. 1087–1(b)(2)(I)) is 

24 further amended in clause (v)(III) by striking ‘‘(iv), and 

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


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1 SEC. 211. ORIGINATION OF DIRECT LOANS AT INSTITU2 TIONS LOCATED OUTSIDE THE UNITED 

3 STATES. 

4 (a) LOANS FOR STUDENTS ATTENDING INSTITU5 TIONS LOCATED OUTSIDE THE UNITED STATES.—Sec6 tion 452 (20 U.S.C. 1087b) is amended by adding at the 

7 end the following: 

8 ‘‘(d) INSTITUTIONS LOCATED OUTSIDE THE UNITED

9 STATES.—Loan funds for students (and parents of stu10 dents) attending institutions located outside the United 

11 States shall be disbursed through a financial institution 

12 located in the United States and designated by the Sec13 retary to serve as the agent of such institutions with re14 spect to the receipt of the disbursements of such loan 

15 funds and the transfer of such funds to such institutions. 

16 To be eligible to receive funds under this part, an other17 wise eligible institution located outside the United States 

18 shall make arrangements, subject to regulations by the 

19 Secretary, with the agent designated by the Secretary 

20 under this subsection to receive funds under this part.’’. 

21 (b) CONFORMING AMENDMENTS.— 

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

23 1002), as amended by section 102 of the Higher 

24 Education Opportunity Act (Public Law 110–315) 

25 and section 101 of Public Law 111–39, is amend26 ed— 


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1 (A) by striking ‘‘part B’’ each place it ap2 pears and inserting ‘‘part D’’; 

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

4 consistent with the requirements of section 

5 452(d)’’ before the period at the end; and 

6 (C) in subsection (a)(2)(A)— 

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

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

9 and inserting ‘‘made’’; and 

10 (ii) in clause (iii)— 

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

12 ‘‘only Federal Stafford’’ and all that 

13 follows through ‘‘section 428B’’ and 

14 inserting ‘‘only Federal Direct Staf15 ford Loans under section 

16 455(a)(2)(A), Federal Direct Unsub17 sidized Stafford Loans under section 

18 455(a)(2)(D), or Federal Direct 

19 PLUS Loans under section 

20 455(a)(2)(B)’’; and 

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

22 ‘‘a Federal Stafford’’ and all that fol23 lows through ‘‘section 428B’’ and in24 serting ‘‘a Federal Direct Stafford 

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


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1 Federal Direct Unsubsidized Stafford 

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

3 Federal Direct PLUS Loan under 

4 section 455(a)(2)(B)’’. 

5 (2) EFFECTIVE DATE.—The amendments made 

6 by subparagraph (C) of paragraph (1) shall be effec7 tive on July 1, 2010, as if enacted as part of section 

8 102(a)(1) of the Higher Education Opportunity Act 

9 (Public Law 110–315). 

10 SEC. 212. AGREEMENTS WITH INSTITUTIONS. 

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

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

13 and redesignating the succeeding paragraphs accord14 ingly; and 

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

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

17 SEC. 213. TERMS AND CONDITIONS OF LOANS. 

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

19 is amended— 

20 (1) in subsection (a)(1), by inserting ‘‘, and 

21 first disbursed on June 30, 2010,’’ before ‘‘under 

22 sections 428’’; and 

23 (2) in subsection (g)— 


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

2 made under part B and first disbursed before 

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

4 (B) by striking the third sentence. 

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

6 subsection (a)(1) shall apply with respect to loans first dis7 bursed under part D of title IV of the Higher Education 

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

9 1, 2010. 

10 SEC. 214. CONTRACTS. 

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

12 (1) in subsection (a)— 

13 (A) in paragraph (1)— 

14 (i) in the header, by striking ‘‘IN

15 GENERAL’’ and inserting ‘‘AWARDING OF

16 CONTRACTS’’; 

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

18 inserting the following: 

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

20 (iii) by adding at the end the fol21 lowing: 

22 ‘‘(B) AWARDING CONTRACTS FOR SERV23 ICING LOANS.—The Secretary shall, if prac24 ticable, award multiple contracts, through a 

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1 ing eligible not-for-profit servicers, to service 

2 loans originated under this part. The competi3 tive bidding process shall take into account 

4 price, servicing capacity, and capability, and 

5 may take into account the capacity and capa6 bility to provide default aversion activities and 

7 outreach services.’’; 

8 (B) in paragraph (2)— 

9 (i) in the first sentence, by inserting 

10 ‘‘, including eligible not-for-profit 

11 servicers,’’ after ‘‘The entities’’; 

12 (ii) by amending the third sentence to 

13 read as follows: ‘‘The entities with which 

14 the Secretary may enter into such con15 tracts shall include, where practicable, 

16 agencies with agreements with the Sec17 retary under sections 428(b) and (c) on 

18 the date of the enactment of the Student 

19 Aid and Fiscal Responsibility Act of 2009, 

20 and eligible not-for-profit servicers, if such 

21 agencies or servicers meet the qualifica22 tions as determined by the Secretary under 

23 this subsection and if those agencies or 

24 servicers have such experience and dem25 onstrated effectiveness.’’; and 


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1 (iii) by striking the last sentence and 

2 inserting the following: ‘‘In awarding con3 tracts to such State agencies, and such eli4 gible not-for-profit servicers, the Secretary 

5 shall, to the extent practicable and con6 sistent with the purposes of this part, give 

7 special consideration to State agencies and 

8 such servicers with a history of high qual9 ity performance and demonstrated integ10 rity in conducting operations with institu11 tions of higher education and the Sec12 retary.’’; 

13 (C) by redesignating paragraph (3) as 

14 paragraph (4), and by inserting in such para15 graph ‘‘, or of any eligible not-for-profit servicer 

16 to enter into an agreement for the purposes of 

17 this section as a member of a consortium of 

18 such entities’’ before the period at the end; and 

19 (D) by inserting after paragraph (2) the 

20 following new paragraph: 

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

22 SERVICERS.— 

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

24 other provision of this section, in each State 

25 where one or more eligible not-for-profit 


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1 servicer has its principal place of business, the 

2 Secretary shall contract with each such servicer 

3 to service loans originated under this part on 

4 behalf of borrowers attending institutions lo5 cated within such State, provided that the 

6 servicer demonstrates that it meets the stand7 ards for servicing Federal assets and agrees to 

8 service the loans at a competitive market rate, 

9 as determined by the Secretary. In determining 

10 such a competitive market rate, the Secretary 

11 may take into account the volume of loans serv12 iced by the servicer. Contracts awarded under 

13 this paragraph shall be subject to the same re14 quirements for quality, performance, and ac15 countability as contracts awarded under para16 graph (2) for similar activities. 

17 ‘‘(B) ALLOCATIONS.—(i) ONE

18 SERVICER.—In the case of a State with only 

19 one eligible not-for-profit servicer with a con20 tract described in subparagraph (A), the Sec21 retary shall, at a minimum, allocate to such 

22 servicer, on an annual basis, the servicing 

23 rights for the lesser of— 

24 ‘‘(I) the loans of 100,000 borrowers 

25 (including borrowers who borrowed loans 


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1 in a prior year that were serviced by the 

2 servicer) attending institutions located 

3 within the State; or 

4 ‘‘(II) the loans of all the borrowers at5 tending institutions located within the 

6 State. 

7 ‘‘(ii) MULTIPLE SERVICERS.—In the case 

8 of a State with more than one eligible not-for9 profit servicer with a contract described in sub10 paragraph (A), the Secretary shall, at a min11 imum, allocate to each such servicer the serv12 icing rights for the lesser of— 

13 ‘‘(I) the loans of 100,000 borrowers 

14 (including borrowers who borrowed loans 

15 in a prior year that were serviced by the 

16 servicer) attending institutions located 

17 within the State; or 

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

19 borrowers attending institutions located 

20 within the State, except the Secretary shall 

21 adjust such shares as necessary to ensure 

22 that the loans of any single borrower re23 main with a single servicer. 

24 ‘‘(iii) ADDITIONAL ALLOCATION.—The Sec25 retary may allocate additional servicing rights 


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1 to an eligible not-for-profit servicer based on 

2 the performance of such servicer, as determined 

3 by the Secretary, including performance in the 

4 areas of customer service and default aversion. 

5 ‘‘(C) MULTIPLE LOANS.—Notwithstanding 

6 the allocations required by subparagraph (B), 

7 the Secretary may transfer loans among 

8 servicers who are awarded contracts to service 

9 loans pursuant to this section to ensure that 

10 the loans of any single borrower remain with a 

11 single servicer.’’; and 

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

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

14 after the date of the enactment of the Student Aid and 

15 Fiscal Responsibility Act of 2009, the Secretary shall pre16 pare and submit to the authorizing committees, a report 

17 evaluating the performance of all eligible not-for-profit 

18 servicers awarded a contract under this section to service 

19 loans originated under this part. Such report shall give 

20 consideration to— 

21 ‘‘(1) customer satisfaction of borrowers and in22 stitutions with respect to the loan servicing provided 

23 by the servicers; 

24 ‘‘(2) compliance with applicable regulations by 

25 the servicers; and 


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1 ‘‘(3) the effectiveness of default aversion activi2 ties, and outreach services (if any), provided by the 

3 servicers. 

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

5 ‘‘(1) DEFAULT AVERSION ACTIVITIES.—The 

6 term ‘default aversion activities’ means activities 

7 that are directly related to providing collection as8 sistance to the Secretary on a delinquent loan, prior 

9 to the loan being legally in a default status, includ10 ing due diligence activities required pursuant to reg11 ulations. 

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

13 ‘‘(A) IN GENERAL.—The term ‘eligible not14 for-profit servicer’ means an entity that, on the 

15 date of enactment of the Student Aid and Fis16 cal Responsibility Act of 2009— 

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

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

19 except that such term does not include eli20 gible lenders described in paragraph 

21 (1)(D) of such section; 

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

23 sole beneficial owner of a loan for which 

24 the special allowance rate is calculated 

25 under section 438(b)(2)(I)(vi)(II) because 


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1 the loan is held by an eligible lender trust2 ee that is an eligible not-for-profit holder 

3 as defined under section 435(p)(1)(D); or 

4 ‘‘(iii) is an affiliated entity of an eligi5 ble not-for-profit servicer described in 

6 clause (i) or (ii) that— 

7 ‘‘(I) directly employs, or will di8 rectly employ (on or before the date 

9 the entity begins servicing loans under 

10 a contract awarded by the Secretary 

11 pursuant to subsection (a)(3)(A)), the 

12 majority of individuals who perform 

13 student loan servicing functions; and 

14 ‘‘(II) on such date of enactment, 

15 was performing, or had entered into a 

16 contract with a third party servicer 

17 (as such term is defined in section 

18 481(c)) who was performing, student 

19 loan servicing functions for loans 

20 made under part B of this title. 

21 ‘‘(B) AFFILIATED ENTITY.—For the pur22 poses of subparagraph (A), the term ‘affiliated 

23 entity’ means an entity contracted to perform 

24 services for an eligible not-for-profit servicer 

25 that— 


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1 ‘‘(i) is a nonprofit entity; and 

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

3 whole or in part, by— 

4 ‘‘(I) a for-profit entity; or 

5 ‘‘(II) an entity having its prin6 cipal place of business in another 

7 State. 

8 ‘‘(3) OUTREACH SERVICES.—The term ‘out9 reach services’ means programs offered to students 

10 and families, including programs delivered in coordi11 nation with institutions of higher education that— 

12 ‘‘(A) encourage— 

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

14 degree or certification program at an insti15 tution of higher education; and 

16 ‘‘(ii) students and families to obtain 

17 financial aid, but minimize the borrowing 

18 of education loans; and 

19 ‘‘(B) deliver financial literacy and coun20 seling tools.’’. 

21 SEC. 215. SUBSIDIZED LOAN LIMITATION. 

22 Section 455(a) (20 U.S.C. 1087e(a)) is amended by 

23 adding at the end the following new paragraph: 

24 ‘‘(3) TERMINATION OF AUTHORITY TO MAKE

25 INTEREST SUBSIDIZED LOANS TO GRADUATE AND


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1 PROFESSIONAL STUDENTS.—Notwithstanding any 

2 provision of this part or part B, a graduate or pro3 fessional student shall not be eligible to receive a 

4 subsidized Federal Direct Stafford loan under this 

5 part for any period of instruction beginning on or 

6 after July 1, 2015.’’. 

7 SEC. 216. INTEREST RATES. 

8 Section 455(b)(7) (20 U.S.C. 1087e(b)(7)) is amend9 ed by adding at the end the following new subparagraph: 

10 ‘‘(E) REDUCED RATES FOR UNDER11 GRADUATE FDSL ON AND AFTER JULY 1, 

12 2012.—Notwithstanding the preceding para13 graphs of this subsection and subparagraph (A) 

14 of this paragraph, for Federal Direct Stafford 

15 Loans made to undergraduate students for 

16 which the first disbursement is made on or 

17 after July 1, 2012, the applicable rate of inter18 est shall, during any 12-month period beginning 

19 on July 1 and ending on June 30, be deter20 mined on the preceding June 1 and be equal 

21 to— 

22 ‘‘(i) the bond equivalent rate of 91- 

23 day Treasury bills auctioned at the final 

24 auction held prior to such June 1; plus 

25 ‘‘(ii) 2.3 percent, 


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1 except that such rate shall not exceed 6.8 per2 cent.’’. 

3 Subtitle B—Perkins Loan Reform 

4 SEC. 221. FEDERAL DIRECT PERKINS LOANS TERMS AND 

5 CONDITIONS. 

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

7 amended by inserting after section 455 the following new 

8 section: 

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

10 ‘‘(a) DESIGNATION OF LOANS.—Loans made to bor11 rowers under this section shall be known as ‘Federal Di12 rect Perkins Loans’. 

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

14 to authorize loans to be awarded by institutions of higher 

15 education through agreements established under section 

16 463(f). Unless otherwise specified in this section, all terms 

17 and conditions and other requirements applicable to Fed18 eral Direct Unsubsidized Stafford loans established under 

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

20 to this section. 

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

22 the requirements for student eligibility under section 

23 464(b) (including graduate and professional students as 

24 defined in regulations promulgated by the Secretary) shall 

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1 vided the student attends an eligible institution with an 

2 agreement with the Secretary under section 463(f), and 

3 the institution uses its authority under that agreement to 

4 award the student a loan. 

5 ‘‘(d) LOAN LIMITS.—The annual and aggregate lim6 its for loans under this section shall be the same as those 

7 established under section 464, and aggregate limits shall 

8 include loans made by institutions under agreements 

9 under section 463(a). 

10 ‘‘(e) APPLICABLE RATES OF INTEREST.—Loans 

11 made pursuant to this section shall bear interest, on the 

12 unpaid balance of the loan, at the rate of 5 percent per 

13 year.’’. 

14 SEC. 222. AUTHORIZATION OF APPROPRIATIONS. 

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

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

17 1, 2010,’’ after ‘‘The Secretary shall’’; 

18 (2) in subsection (b)— 

19 (A) in paragraph (1)— 

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

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

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

23 five succeeding fiscal years’’; and 

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

25 (3) by striking subsection (c). 


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1 SEC. 223. ALLOCATION OF FUNDS. 

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

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

4 and inserting ‘‘For any fiscal year before fiscal year 

5 2010, from’’; and 

6 (2) in subsection (i)(1), by striking ‘‘for any fis7 cal year,’’ and inserting ‘‘for any fiscal year before 

8 fiscal year 2010,’’. 

9 SEC. 224. FEDERAL DIRECT PERKINS LOAN ALLOCATION. 

10 Part E of title IV is further amended by inserting 

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

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

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

14 ‘‘(1) to allocate, among eligible and partici15 pating institutions (as such terms are defined in this 

16 section), the authority to make Federal Direct Per17 kins Loans under section 455A with a portion of the 

18 annual loan authority described in subsection (b); 

19 and 

20 ‘‘(2) to make funds available, in accordance 

21 with section 452, to each participating institution 

22 from a portion of the annual loan authority de23 scribed in subsection (b), in an amount not to exceed 

24 the sum of an institution’s allocation of funds under 

25 subparagraphs (A), (B), and (C) of subsection (b)(1) 

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1 rect Perkins Loans to eligible students at the insti2 tution. 

3 ‘‘(b) AVAILABLE DIRECT PERKINS ANNUAL LOAN

4 AUTHORITY.— 

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

6 are hereby made available, from funds made avail7 able for loans made under part D, not to exceed 

8 $6,000,000,000 of annual loan authority for award 

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

10 be allocated as follows: 

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

than 1 12 ⁄2 of such funds for each award year by 

13 allocating to each participating institution an 

14 amount equal to the adjusted self-help need 

15 amount of the institution, as determined in ac16 cordance with subsection (c) for such award 

17 year. 

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

than 1 19 ⁄4 of such funds for each award year by 

20 allocating to each participating institution an 

21 amount equal to the low tuition incentive 

22 amount of the institution, as determined in ac23 cordance with subsection (d). 

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

than 1 25 ⁄4 of such funds for each award year by 


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1 allocating to each participating institution an 

2 amount which bears the same ratio to the funds 

3 allocated under this subparagraph as the ratio 

4 determined in accordance with subsection (e) 

5 for the calculation of the Federal Pell Grant 

6 and degree recipient amount of the institution. 

7 ‘‘(2) NO FUNDS TO NON-PARTICIPATING INSTI8 TUTIONS.—The Secretary shall not make funds 

9 available under this subsection to any eligible insti10 tution that is not a participating institution. The ad11 justed self-help need amount (determined in accord12 ance with subsection (c)) of an eligible institution 

13 that is not a participating institution shall not be 

14 made available to any other institution. 

15 ‘‘(c) ADJUSTED SELF-HELP NEED AMOUNT.—For 

16 the purposes of subsection (b)(1)(A), the Secretary shall 

17 calculate the adjusted self-help need amount of each eligi18 ble institution for an award year as follows: 

19 ‘‘(1) USE OF BASE SELF-HELP NEED

20 AMOUNTS.— 

21 ‘‘(A) IN GENERAL.—Except as provided in 

22 paragraphs (2), (3), and (4), the adjusted self23 help need amount of each eligible institution 

24 shall be the institution’s base self-help need 

25 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 

6 students for such award year. 

7 ‘‘(B) UNDERGRADUATE STUDENT SELF8 HELP NEED.—To determine the self-help need 

9 of an institution’s eligible undergraduate stu10 dents, the Secretary shall determine the sum of 

11 each eligible undergraduate student’s average 

12 cost of attendance for the second preceding 

13 award year less each such student’s expected 

14 family contribution (computed in accordance 

15 with part F) for the second preceding award 

16 year, except that, for each such eligible under17 graduate student, the amount computed by 

18 such subtraction shall not be less than zero or 

19 more than the lesser of— 

20 ‘‘(i) 25 percent of the average cost of 

21 attendance with respect to such eligible 

22 student; or 

23 ‘‘(ii) $5,500. 

24 ‘‘(C) GRADUATE AND PROFESSIONAL STU25 DENT SELF-HELP NEED.—To determine the 


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1 self-help need of an institution’s eligible grad2 uate and professional students, the Secretary 

3 shall determine the sum of each eligible grad4 uate and professional student’s average cost of 

5 attendance for the second preceding award year 

6 less each such student’s expected family con7 tribution (computed in accordance with part F) 

8 for such second preceding award year, except 

9 that, for each such eligible graduate and profes10 sional student, the amount computed by such 

11 subtraction shall not be less than zero or more 

12 than $8,000. 

13 ‘‘(2) RATABLE REDUCTION ADJUSTMENTS.—If 

14 the sum of the base self-help need amounts of all eli15 gible institutions for an award year as determined 

under paragraph (1) exceeds 1 16 ⁄2 of the annual loan 

17 authority under subsection (b) for such award year, 

18 the Secretary shall ratably reduce the base self-help 

19 need amounts of all eligible institutions until the 

20 sum of such amounts is equal to the amount that is 

1 21 ⁄2 of the annual loan authority under subsection 

22 (b). 

23 ‘‘(3) REQUIRED MINIMUM AMOUNT.—Notwith24 standing paragraph (2), the adjusted self-help need 

25 amount of each eligible institution shall not be less 


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1 than the average of the institution’s total principal 

2 amount of loans made under this part for each of 

3 the 5 most recent award years. 

4 ‘‘(4) ADDITIONAL ADJUSTMENTS.—If the Sec5 retary determines that a ratable reduction under 

6 paragraph (2) results in the adjusted self-help need 

7 amount of any eligible institution being reduced 

8 below the minimum amount required under para9 graph (3), the Secretary shall— 

10 ‘‘(A) for each institution for which the 

11 minimum amount under paragraph (3) is not 

12 satisfied, increase the adjusted self-help need 

13 amount to the amount of the required minimum 

14 under such subparagraph; and 

15 ‘‘(B) ratably reduce the adjusted self-help 

16 need amounts of all eligible institutions not de17 scribed in subparagraph (A) until the sum of 

18 the adjusted self-help need amounts of all eligi19 ble institutions is equal to the amount that is 

1 20 ⁄2 of the annual loan authority under sub21 section (b). 

22 ‘‘(d) LOW TUITION INCENTIVE AMOUNT.— 

23 ‘‘(1) IN GENERAL.—For purposes of subsection 

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1 tion for each award year, by calculating for each 

2 such institution the sum of— 

3 ‘‘(A) the total amount, if any (but not less 

4 than zero), by which— 

5 ‘‘(i) the average tuition and required 

6 fees for the institution’s sector for the sec7 ond preceding award year; exceeds 

8 ‘‘(ii) the tuition and required fees for 

9 the second preceding award year for each 

10 undergraduate and graduate student at11 tending the institution who had financial 

12 need (as determined under part F); plus 

13 ‘‘(B) the total amount, if any (but not less 

14 than zero), by which— 

15 ‘‘(i) the total amount for the second 

16 preceding award year of non-Federal grant 

17 aid provided to meet the financial need of 

18 all undergraduate students attending the 

19 institution (as determined without regard 

20 to financial aid not received under this 

21 title); exceeds 

22 ‘‘(ii) the total amount for the second 

23 preceding award year, if any, by which— 


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1 ‘‘(I) the tuition and required fees 

2 of each such student with such finan3 cial need; exceeds 

4 ‘‘(II) the average tuition and re5 quired fees for the institution’s sector. 

6 ‘‘(2) RATABLE REDUCTION.—If the sum of the 

7 low tuition incentive amounts of all participating in8 stitutions for an award year as determined under 

paragraph (1) exceeds 1 9 ⁄4 of the annual loan author10 ity under subsection (b) for such award year, the 

11 Secretary shall ratably reduce the low tuition incen12 tive amounts of all participating institutions until 

13 the sum of such amounts is equal to the amount 

that is 1 14 ⁄4 of the annual loan authority under sub15 section (b). 

16 ‘‘(e) FEDERAL PELL GRANT AND DEGREE RECIPI17 ENT AMOUNT.—For purposes of subsection (b)(1)(C), the 

18 Secretary shall determine the Federal Pell Grant and de19 gree recipient amount for each participating institution for 

20 each award year, by calculating for each such institution 

21 the ratio of— 

22 ‘‘(1) the number of students who, during the 

23 most recent year for which data are available, ob24 tained an associate’s degree or other postsecondary 

25 degree from such participating institution and, prior 


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1 to obtaining such degree, received a Federal Pell 

2 Grant for attendance at any institution of higher 

3 education; to 

4 ‘‘(2) the sum of the number of students who, 

5 during the most recent year for which data are 

6 available, obtained an associate’s degree or other 

7 postsecondary degree from each participating insti8 tution and, prior to obtaining such degree, received 

9 a Federal Pell Grant for attendance at any institu10 tion of higher education. 

11 ‘‘(f) DEFINITIONS.—As used in this section: 

12 ‘‘(1) ANNUAL LOAN AUTHORITY.—The term 

13 ‘annual loan authority’ means the total original prin14 cipal amount of loans that may be allocated and 

15 made available for an award year to make Federal 

16 Direct Perkins Loans under section 455A. 

17 ‘‘(2) AVERAGE COST OF ATTENDANCE.— 

18 ‘‘(A) IN GENERAL.—The term ‘average 

19 cost of attendance’ means the average of the at20 tendance costs for undergraduate students and 

21 for graduate and professional students, respec22 tively, for the second preceding award year 

23 which shall include— 


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1 ‘‘(i) tuition and required fees deter2 mined in accordance with subparagraph 

3 (B); 

4 ‘‘(ii) standard living expenses deter5 mined in accordance with subparagraph 

6 (C); and 

7 ‘‘(iii) books and supplies determined 

8 in accordance with subparagraph (D). 

9 ‘‘(B) TUITION AND REQUIRED FEES.—The 

10 average undergraduate and graduate and pro11 fessional tuition and required fees described in 

12 subparagraph (A)(i) shall be computed on the 

13 basis of information reported by the institution 

14 to the Secretary, which shall include— 

15 ‘‘(i) total revenue received by the in16 stitution from undergraduate and graduate 

17 and professional students, respectively, for 

18 tuition and required fees for the second 

19 preceding award year; and 

20 ‘‘(ii) the institution’s full-time equiva21 lent enrollment of undergraduate and 

22 graduate and professional students, respec23 tively, for such second preceding award 

24 year. 


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1 ‘‘(C) STANDARD LIVING EXPENSES.—The 

2 standard living expense described in subpara3 graph (A)(ii) is equal to the allowance, deter4 mined by an institution, for room and board 

5 costs incurred by a student, as computed in ac6 cordance with part F for the second preceding 

7 award year. 

8 ‘‘(D) BOOKS AND SUPPLIES.—The allow9 ance for books and supplies described in sub10 paragraph (A)(iii) is equal to the allowance, de11 termined by an institution, for books, supplies, 

12 transportation, and miscellaneous personal ex13 penses, including a reasonable allowance for the 

14 documented rental or purchase of a personal 

15 computer, as computed in accordance with part 

16 F for the second preceding award year. 

17 ‘‘(3) AVERAGE TUITION AND REQUIRED FEES

18 FOR THE INSTITUTION’S SECTOR.—The term ‘aver19 age tuition and required fees for the institution’s 

20 sector’ shall be determined by the Secretary for each 

21 of the categories described in section 132(d). 

22 ‘‘(4) ELIGIBLE INSTITUTION.—The term ‘eligi23 ble institution’ means an institution of higher edu24 cation that participates in the Federal Direct Staf25 ford Loan Program. 


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1 ‘‘(5) PARTICIPATING INSTITUTION.—The term 

2 ‘participating institution’ means an institution of 

3 higher education that has an agreement under sec4 tion 463(f). 

5 ‘‘(6) SECTOR.—The term ‘sector’ means each of 

6 the categories described in section 132(d).’’. 

7 SEC. 225. AGREEMENTS WITH INSTITUTIONS OF HIGHER 

8 EDUCATION. 

9 (a) AMENDMENTS.—Section 463 (20 U.S.C. 1087cc) 

10 is amended— 

11 (1) in subsection (a)— 

12 (A) in the heading, by inserting ‘‘FOR

13 LOANS MADE BEFORE JULY 1, 2010’’ after 

14 ‘‘AGREEMENTS’’; 

15 (B) in paragraph (3)(A), by inserting ‘‘be16 fore July 1, 2010’’ after ‘‘students’’; 

17 (C) in paragraph (4), by striking ‘‘there18 on—’’ and all that follows and inserting ‘‘there19 on, if the institution has failed to maintain an 

20 acceptable collection record with respect to such 

21 loan, as determined by the Secretary in accord22 ance with criteria established by regulation, the 

23 Secretary may require the institution to assign 

24 such note or agreement to the Secretary, with25 out recompense;’’; and 


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1 (D) in paragraph (5), by striking ‘‘and the 

2 Secretary shall apportion’’ and all that follows 

3 through ‘‘in accordance with section 462’’ and 

4 inserting ‘‘and the Secretary shall return a por5 tion of funds from loan repayments to the insti6 tution as specified in section 466(b)’’; 

7 (2) by amending subsection (b) to read as fol8 lows: 

9 ‘‘(b) ADMINISTRATIVE EXPENSES.—An institution 

10 that has entered into an agreement under subsection (a) 

11 shall be entitled, for each fiscal year during which it serv12 ices student loans from a student loan fund established 

13 under such agreement, to a payment in lieu of reimburse14 ment for its expenses in servicing student loans made be15 fore July 1, 2010. Such payment shall be equal to 0.50 

16 percent of the outstanding principal and interest balance 

17 of such loans being serviced by the institution as of Sep18 tember 30 of each fiscal year.’’; and 

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

20 ‘‘(f) CONTENTS OF AGREEMENTS FOR LOANS MADE

21 ON OR AFTER JULY 1, 2010.—An agreement with any 

22 institution of higher education that elects to participate 

23 in the Federal Direct Perkins Loan program under section 

24 455A shall provide— 


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1 ‘‘(1) for the establishment and maintenance of 

2 a Direct Perkins Loan program at the institution 

3 under which the institution shall use loan authority 

4 allocated under section 462A to make loans to eligi5 ble students attending the institution; 

6 ‘‘(2) that the institution, unless otherwise speci7 fied in this subsection, shall operate the program 

8 consistent with the requirements of agreements es9 tablished under section 454; 

10 ‘‘(3) that the institution will pay matching 

11 funds, quarterly, in an amount agreed to by the in12 stitution and the Secretary, to an escrow account 

13 approved by the Secretary, for the purpose of pro14 viding loan benefits to borrowers; 

15 ‘‘(4) that if the institution fails to meet the re16 quirements of paragraph (3), the Secretary shall 

17 suspend or terminate the institution’s eligibility to 

18 make Federal Direct Perkins Loans under section 

19 455A until such time as the Secretary determines, 

20 in accordance with section 498, that the institution 

21 has met the requirements of such paragraph; and 

22 ‘‘(5) that if the institution ceases to be an eligi23 ble institution within the meaning of section 435(a) 

24 by reason of having a cohort default rate that ex25 ceeds the threshold percentage specified paragraph 


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1 (2) of such section, the Secretary shall suspend or 

2 terminate the institution’s eligibility to make Fed3 eral Direct Perkins Loans under section 455A un4 less and until the institution would qualify for a re5 sumption of eligible institution status under such 

6 section.’’. 

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

8 paragraph (2) of subsection (a) shall take effect on Octo9 ber 1, 2010. 

10 SEC. 226. STUDENT LOAN INFORMATION BY ELIGIBLE IN11 STITUTIONS. 

12 Section 463A (20 U.S.C. 1087cc–1) is amended— 

13 (1) in subsection (a), by striking ‘‘Each institu14 tion’’ and inserting ‘‘For loans made before July 1, 

15 2010, each institution’’; and 

16 (2) in subsection (b), by striking ‘‘Each institu17 tion’’ and inserting ‘‘For loans made before July 1, 

18 2010, each institution’’. 

19 SEC. 227. TERMS OF LOANS. 

20 (a) Section 464 (20 U.S.C. 1087dd) is amended— 

21 (1) in subsection (a)(1), by striking ‘‘section 

22 463’’ and inserting ‘‘section 463(a)’’; 

23 (2) in subsection (b)(1), by inserting ‘‘made be24 fore July 1, 2010,’’ after ‘‘A loan’’; 

25 (3) in subsection (c)— 


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1 (A) in paragraph (1), by inserting ‘‘made 

2 before July 1, 2010,’’ after ‘‘a loan’’; 

3 (B) in paragraph (2)— 

4 (i) in subparagraph (A), by inserting 

5 ‘‘made before July 1, 2010,’’ after ‘‘any 

6 loan’’; and 

7 (ii) in subparagraph (B), by inserting 

8 ‘‘made before July 1, 2010,’’ after ‘‘any 

9 loan’’; 

10 (C) in paragraph (3)(B), by inserting ‘‘for 

11 a loan made before July 1, 2010,’’ after ‘‘dur12 ing the repayment period’’; 

13 (D) in paragraph (4), by inserting ‘‘before 

14 July 1, 2010,’’ after ‘‘for a loan made’’; 

15 (E) in paragraph (5), by striking ‘‘The in16 stitution’’ and inserting ‘‘For loans made before 

17 July 1, 2010, the institution’’; and 

18 (F) in paragraph (6), by inserting ‘‘made 

19 before July 1, 2010,’’ after ‘‘of loans’’; 

20 (4) in subsection (d), by inserting ‘‘made before 

21 July 1, 2010,’’ before ‘‘from the student loan fund’’; 

22 (5) in subsection (e), by inserting ‘‘with respect 

23 to loans made before July 1, 2010, and’’ before ‘‘as 

24 documented in accordance with paragraph (2),’’; 

25 (6) by repealing subsection (f); 


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1 (7) in subsection (g)(1), by inserting ‘‘and be2 fore July 1, 2010,’’ after ‘‘January 1, 1986,’’; 

3 (8) in subsection (h)— 

4 (A) in paragraph (1)(A) by inserting ‘‘be5 fore July 1, 2010,’’ after ‘‘made under this 

6 part’’; and 

7 (B) in paragraph (2), by inserting ‘‘before 

8 July 1, 2010,’’ after ‘‘under this part’’; and 

9 (9) in subsection (j)(1), by inserting ‘‘before 

10 July 1, 2010,’’ after ‘‘under this part’’. 

11 SEC. 228. DISTRIBUTION OF ASSETS FROM STUDENT LOAN 

12 FUNDS. 

13 (a) Section 465 (20 U.S.C. 1087ee) is amended— 

14 (1) in subsection (a), by inserting ‘‘and before 

15 July 1, 2010,’’ after ‘‘June 30, 1972,’’; and 

16 (2) by amending subsection (b) to read as fol17 lows: 

18 ‘‘(b) REIMBURSEMENT FOR CANCELLATIONS.— 

19 ‘‘(1) ASSIGNED LOANS.—In the case of loans 

20 made under this part before July 1, 2010, and that 

21 are assigned to the Secretary, the Secretary shall, 

22 from amounts repaid each quarter on assigned Per23 kins Loans made before July 1, 2010, pay to each 

24 institution for each quarter 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 

3 pursuant 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 

7 to its student loan fund. 

8 ‘‘(2) RETAINED LOANS.—In the case of loans 

9 made under this part before July 1, 2010, and that 

10 are retained by the institution for servicing, the in11 stitution shall deduct from loan repayments owed to 

12 the Secretary under section 466, an amount equal 

13 to— 

14 ‘‘(A) the aggregate of the amounts of loans 

15 from its student loan fund that are canceled 

16 pursuant to this section for such quarter, minus 

17 ‘‘(B) an amount equal to the aggregate of 

18 the amounts of any such loans so canceled that 

19 were made from Federal capital contributions 

20 to its student loan fund.’’. 

21 (b) Section 466 (20 U.S.C. 1087ff) is amended to 

22 read as follows: 


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1 ‘‘SEC. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN 

2 FUNDS. 

3 ‘‘(a) CAPITAL DISTRIBUTION.—Beginning July 1, 

4 2010, there shall be a capital distribution of the balance 

5 of the student loan fund established under this part by 

6 each institution of higher education as follows: 

7 ‘‘(1) For the quarter beginning July 1, 2010, 

8 the Secretary shall first be paid, no later than Sep9 tember 30, 2010, an amount that bears the same 

10 ratio to the cash balance in such fund at the close 

11 of June 30, 2010, as the total amount of the Fed12 eral capital contributions to such fund by the Sec13 retary under this part bears to— 

14 ‘‘(A) the sum of such Federal contribu15 tions and the institution’s capital contributions 

16 to such fund, less 

17 ‘‘(B) an amount equal to— 

18 ‘‘(i) the institution’s outstanding ad19 ministrative costs as calculated under sec20 tion 463(b), 

21 ‘‘(ii) outstanding charges assessed 

22 under section 464(c)(1)(H), and 

23 ‘‘(iii) outstanding loan cancellation 

24 costs incurred under section 465. 

25 ‘‘(2) At the end of each quarter subsequent to 

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1 retary shall first be paid an amount that bears the 

2 same ratio to the cash balance in such fund at the 

3 close of the preceding quarter, as the total amount 

4 of the Federal capital contributions to such fund by 

5 the Secretary under this part bears to— 

6 ‘‘(A) the sum of such Federal contribu7 tions and the institution’s capital contributions 

8 to such fund, less 

9 ‘‘(B) an amount equal to— 

10 ‘‘(i) the institution’s administrative 

11 costs incurred for that quarter as cal12 culated under section 463(b), 

13 ‘‘(ii) charges assessed for that quarter 

14 under section 464(c)(1)(H), and 

15 ‘‘(iii) loan cancellation costs incurred 

16 for that quarter under section 465. 

17 ‘‘(3)(A) The Secretary shall calculate the 

18 amounts due to the Secretary under paragraph (1) 

19 (adjusted in accordance with subparagraph (B), as 

20 appropriate) and paragraph (2) and shall promptly 

21 inform the institution of such calculated amounts. 

22 ‘‘(B) In the event that, prior to the date of en23 actment of the Student Aid and Fiscal Responsi24 bility Act of 2009, an institution made a short-term, 

25 interest-free loan to the institution’s student loan 


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1 fund established under this part in anticipation of 

2 collections or receipt of Federal capital contribu3 tions, and the institution demonstrates to the Sec4 retary, on or before June 30, 2010, that such loan 

5 will still be outstanding after June 30, 2010, the 

6 Secretary shall subtract the amount of such out7 standing loan from the cash balance of the institu8 tion’s student loan fund that is used to calculate the 

9 amount due to the Secretary under paragraph (1). 

10 An adjustment of an amount due to the Secretary 

11 under this subparagraph shall be made by the Sec12 retary on a case-by-case basis. 

13 ‘‘(4) Any remaining balance at the end of a 

14 quarter after a payment under paragraph (1) or (2) 

15 shall be retained by the institution for use at its dis16 cretion. Any balance so retained shall be withdrawn 

17 from the student loan fund and shall not be counted 

18 in calculating amounts owed to the Secretary for 

19 subsequent quarters. 

20 ‘‘(5) Each institution shall make the quarterly 

21 payments to the Secretary described in paragraph 

22 (2) until all outstanding Federal Perkins Loans at 

23 that institution have been assigned to the Secretary 

24 and there are no funds remaining in the institution’s 

25 student loan fund. 


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1 ‘‘(6) In the event that the institution’s adminis2 trative costs, charges, and cancellation costs de3 scribed in paragraph (2) for a quarter exceed the 

4 amount owed to the Secretary under paragraphs (1) 

5 and (2) for that quarter, no payment shall be due 

6 to the Secretary from the institution for that quarter 

7 and the Secretary shall pay the institution, from 

8 funds realized from the collection of assigned Fed9 eral Perkins Loans made before July 1, 2010, an 

10 amount that, when combined with the amount re11 tained by the institution under paragraphs (1) and 

12 (2), equals the full amount of such administrative 

13 costs, charges, and cancellation costs. 

14 ‘‘(b) ASSIGNMENT OF OUTSTANDING LOANS.—Be15 ginning July 1, 2010, an institution of higher education 

16 may assign all outstanding loans made under this part be17 fore July 1, 2010, to the Secretary, consistent with the 

18 requirements of section 463(a)(5). In collecting loans so 

19 assigned, the Secretary shall pay an institution an amount 

20 that constitutes the same fraction of such collections as 

21 the fraction of the cash balance that the institution retains 

22 under subsection (a)(2), but determining such fraction 

23 without regard to subparagraph (B)(i) of such sub24 section.’’. 


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1 SEC. 229. ADMINISTRATIVE EXPENSES. 

2 Section 489(a) (20 U.S.C. 1096(a)) is amended— 

3 (1) in the second sentence, by striking ‘‘or 

4 under part E of this title’’; and 

5 (2) in the third sentence— 

6 (A) by inserting ‘‘and’’ after ‘‘subpart 3 of 

7 part A,’’; and 

8 (B) by striking ‘‘compensation of stu9 dents,’’ and all that follows through the period 

10 and inserting ‘‘compensation of students.’’. 

11 TITLE III—MODERNIZATION, 

12 RENOVATION, AND REPAIR 

13 Subtitle A—Elementary and 

14 Secondary Education 

15 SEC. 301. DEFINITIONS. 

16 In this subtitle: 

17 (1) The term ‘‘Bureau-funded school’’ has the 

18 meaning given such term in section 1141 of the 

19 Education Amendments of 1978 (25 U.S.C. 2021). 

20 (2) The term ‘‘charter school’’ has the meaning 

21 given such term in section 5210 of the Elementary 

22 and Secondary Education Act of 1965 (20 U.S.C. 

23 7221i). 

24 (3) The term ‘‘CHPS Criteria’’ means the 

25 green building rating program developed by the Col26 laborative for High Performance Schools. 


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1 (4) The term ‘‘Energy Star’’ means the Energy 

2 Star program of the United States Department of 

3 Energy and the United States Environmental Pro4 tection Agency. 

5 (5) The term ‘‘Green Globes’’ means the Green 

6 Building Initiative environmental design and rating 

7 system referred to as Green Globes. 

8 (6) The term ‘‘LEED Green Building Rating 

9 System’’ means the United States Green Building 

10 Council Leadership in Energy and Environmental 

11 Design green building rating standard referred to as 

12 LEED Green Building Rating System. 

13 (7) The term ‘‘local educational agency’’— 

14 (A) has the meaning given such term in 

15 section 9101 of the Elementary and Secondary 

16 Education Act of 1965 (20 U.S.C. 7801); 

17 (B) includes any public charter school that 

18 constitutes a local educational agency under 

19 State law; and 

20 (C) includes the Recovery School District 

21 of Louisiana. 

22 (8) The term ‘‘outlying area’’— 

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1 monwealth of the Northern Mariana Islands; 

2 and 

3 (B) includes the Republic of Palau. 

4 (9) The term ‘‘public school facilities’’ means 

5 existing public elementary or secondary school facili6 ties, including public charter school facilities and 

7 other existing facilities planned for adaptive reuse as 

8 public charter school facilities. 

9 (10) The term ‘‘Secretary’’ means the Secretary 

10 of Education. 

11 (11) The term ‘‘State’’ means each of the 50 

12 States, the District of Columbia, and the Common13 wealth of Puerto Rico. 

14 CHAPTER 1—GRANTS FOR MODERNIZA15 TION, RENOVATION, OR REPAIR OF 

16 PUBLIC SCHOOL FACILITIES 

17 SEC. 311. PURPOSE. 

18 Grants under this chapter shall be for the purpose 

19 of modernizing, renovating, or repairing public school fa20 cilities (including early learning facilities, as appropriate), 

21 based on the need of the facilities for such improvements, 

22 to ensure safe, healthy, high-performing, and techno23 logically up-to-date public school facilities. 

24 SEC. 312. ALLOCATION OF FUNDS. 

25 (a) RESERVATION.— 


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1 (1) IN GENERAL.—From the amount appro2 priated to carry out this chapter for each fiscal year 

3 pursuant to section 345(a), the Secretary shall re4 serve 2 percent of such amount, consistent with the 

5 purpose described in section 311— 

6 (A) to provide assistance to the outlying 

7 areas; and 

8 (B) for payments to the Secretary of the 

9 Interior to provide assistance to Bureau-funded 

10 schools. 

11 (2) USE OF RESERVED FUNDS.—In each fiscal 

12 year, the amount reserved under paragraph (1) shall 

13 be divided between the uses described in subpara14 graphs (A) and (B) of such paragraph in the same 

15 proportion as the amount reserved under section 

16 1121(a) of the Elementary and Secondary Edu17 cation Act of 1965 (20 U.S.C. 6331(a)) is divided 

18 between the uses described in paragraphs (1) and 

19 (2) of such section 1121(a) in such fiscal year. 

20 (3) DISTRESSED AREAS AND NATURAL DISAS21 TERS.—From the amount appropriated to carry out 

22 this chapter for each fiscal year pursuant to section 

23 345(a), the Secretary shall reserve 5 percent of such 

24 amount for grants to— 


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1 (A) local educational agencies serving geo2 graphic areas with significant economic distress, 

3 to be used consistent with the purpose de4 scribed in section 311 and the allowable uses of 

5 funds described in section 313; and 

6 (B) local educational agencies serving geo7 graphic areas recovering from a natural dis8 aster, to be used consistent with the purpose 

9 described in section 321 and the allowable uses 

10 of funds described in section 323. 

11 (b) ALLOCATION TO STATES.— 

12 (1) STATE-BY-STATE ALLOCATION.—Of the 

13 amount appropriated to carry out this chapter for 

14 each fiscal year pursuant to section 345(a), and not 

15 reserved under subsection (a), each State shall be al16 located an amount in proportion to the amount re17 ceived by all local educational agencies in the State 

18 under part A of title I of the Elementary and Sec19 ondary Education Act of 1965 (20 U.S.C. 6311 et 

20 seq.) for the previous fiscal year relative to the total 

21 amount received by all local educational agencies in 

22 every State under such part for such fiscal year. 

23 (2) STATE ADMINISTRATION.—A State may re24 serve up to 1 percent of its allocation under paraVerDate Nov 24 2008 02:20 Jul 16, 2009 Jkt 079200 PO 00000 Frm 00092 Fmt 6652 Sfmt 6201 E:\BILLS\H3221.IH H3221

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1 graph (1) to carry out its responsibilities under this 

2 chapter, which include— 

3 (A) providing technical assistance to local 

4 educational agencies; 

5 (B) developing an online, publicly search6 able database that includes an inventory of pub7 lic school facilities in the State, including for 

8 each such facility, its design, condition, mod9 ernization, renovation and repair needs, utiliza10 tion, energy use, and carbon footprint; and 

11 (C) creating voluntary guidelines for high12 performing school buildings, including guide13 lines concerning the following: 

14 (i) Site location, storm water manage15 ment, outdoor surfaces, outdoor lighting, 

16 and transportation, including public transit 

17 and pedestrian and bicycle accessability. 

18 (ii) Outdoor water systems, land19 scaping to minimize water use, including 

20 elimination of irrigation systems for land21 scaping, and indoor water use reduction. 

22 (iii) Energy efficiency (including min23 imum and superior standards, such as for 

24 heating, ventilation, and air conditioning 


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1 systems), use of alternative energy sources, 

2 commissioning, and training. 

3 (iv) Use of durable, sustainable mate4 rials and waste reduction. 

5 (v) Indoor environmental quality, such 

6 as day lighting in classrooms, lighting 

7 quality, indoor air quality (including with 

8 reference to reducing the incidence and ef9 fects of asthma and other respiratory ill10 nesses), acoustics, and thermal comfort. 

11 (vi) Operations and management, 

12 such as use of energy-efficient equipment, 

13 indoor environmental management plan, 

14 maintenance plan, and pest management. 

15 (3) GRANTS TO LOCAL EDUCATIONAL AGEN16 CIES.—From the amount allocated to a State under 

17 paragraph (1), each eligible local educational agency 

18 in the State shall receive an amount in proportion 

19 to the amount received by such local educational 

20 agency under part A of title I of the Elementary and 

21 Secondary Education Act of 1965 (20 U.S.C. 6311 

22 et seq.) for the previous fiscal year relative to the 

23 total amount received by all local educational agen24 cies in the State under such part for such fiscal 

25 year, except that no local educational agency that reVerDate Nov 24 2008 02:20 Jul 16, 2009 Jkt 079200 PO 00000 Frm 00094 Fmt 6652 Sfmt 6201 E:\BILLS\H3221.IH H3221

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1 ceived funds under such part for such fiscal year 

2 shall receive a grant of less than $5,000 in any fiscal 

3 year under this chapter. 

4 (4) SPECIAL RULE.—Section 1122(c)(3) of the 

5 Elementary and Secondary Education Act of 1965 

6 (20 U.S.C. 6332(c)(3)) shall not apply to paragraph 

7 (1) or (3). 

8 (c) SPECIAL RULES.— 

9 (1) DISTRIBUTIONS BY SECRETARY.—The Sec10 retary shall make and distribute the reservations 

11 and allocations described in subsections (a) and (b) 

12 not later than 120 days after an appropriation of 

13 funds for this chapter is made. 

14 (2) DISTRIBUTIONS BY STATES.—A State shall 

15 make and distribute the allocations described in sub16 section (b)(3) within 60 days of receiving such funds 

17 from the Secretary. 

18 SEC. 313. ALLOWABLE USES OF FUNDS. 

19 A local educational agency receiving a grant under 

20 this chapter shall use the grant for modernization, renova21 tion, or repair of public school facilities (including early 

22 learning facilities, as appropriate), including— 

23 (1) repair, replacement, or installation of roofs, 

24 including extensive, intensive or semi-intensive green 

25 roofs, electrical wiring, water supply and plumbing 


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1 systems, sewage systems, storm water runoff sys2 tems, lighting systems, building envelope, windows, 

3 ceilings, flooring, or doors, including security doors; 

4 (2) repair, replacement, or installation of heat5 ing, ventilation, or air conditioning systems, includ6 ing insulation, and conducting indoor air quality as7 sessments; 

8 (3) compliance with fire, health, seismic, and 

9 safety codes, including professional installation of 

10 fire and life safety alarms, and modernizations, ren11 ovations, and repairs that ensure that schools are 

12 prepared for emergencies, such as improving build13 ing infrastructure to accommodate security measures 

14 and installing or upgrading technology to ensure 

15 that schools are able to respond to emergencies such 

16 as acts of terrorism, campus violence, and natural 

17 disasters; 

18 (4) retrofitting necessary to increase the energy 

19 efficiency of public school facilities; 

20 (5) modifications necessary to make facilities 

21 accessible in compliance with the Americans with 

22 Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) 

23 and section 504 of the Rehabilitation Act of 1973 

24 (29 U.S.C. 794); 


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1 (6) abatement, removal, or interim controls of 

2 asbestos, polychlorinated biphenyls, mold, mildew, 

3 lead-based hazards, including lead-based paint haz4 ards, or a proven carcinogen; 

5 (7) measures designed to reduce or eliminate 

6 human exposure to classroom noise and environ7 mental noise pollution; 

8 (8) modernization, renovation, or repair nec9 essary to reduce the consumption of coal, electricity, 

10 land, natural gas, oil, or water; 

11 (9) installation or upgrading of educational 

12 technology infrastructure; 

13 (10) modernization, renovation, or repair of 

14 science and engineering laboratories, libraries, and 

15 career and technical education facilities, and im16 provements to building infrastructure to accommo17 date bicycle and pedestrian access; 

18 (11) installation or upgrading of renewable en19 ergy generation and heating systems, including 

20 solar, photovoltaic, wind, biomass (including wood 

21 pellet and woody biomass), waste-to-energy, solar22 thermal and geothermal systems, and energy audits; 

23 (12) measures designed to reduce or eliminate 

24 human exposure to airborne particles such as dust, 

25 sand, and pollens; 


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1 (13) creating greenhouses, gardens (including 

2 trees), and other facilities for environmental, sci3 entific, or other educational purposes, or to produce 

4 energy savings; 

5 (14) upgrading or installing recreational struc6 tures, including physical education facilities for stu7 dents, made from post-consumer recovered materials 

8 in accordance with the comprehensive procurement 

9 guidelines prepared by the Administrator of the En10 vironmental Protection Agency under section 

11 6002(e) of the Solid Waste Disposal Act (42 U.S.C. 

12 6962(e)); 

13 (15) other modernization, renovation, or repair 

14 of public school facilities to— 

15 (A) improve teachers’ ability to teach and 

16 students’ ability to learn; 

17 (B) ensure the health and safety of stu18 dents and staff; 

19 (C) make them more energy efficient; or 

20 (D) reduce class size; and 

21 (16) required environmental remediation related 

22 to modernization, renovation, or repair described in 

23 paragraphs (1) through (15). 


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1 SEC. 314. PRIORITY PROJECTS. 

2 In selecting a project under section 313, a local edu3 cational agency may give priority to projects involving the 

4 abatement, removal, or interim controls of asbestos, poly5 chlorinated biphenyls, mold, mildew, lead-based hazards, 

6 including lead-based paint hazards, or a proven car7 cinogen. 

8 CHAPTER 2—SUPPLEMENTAL GRANTS 

9 FOR LOUISIANA, MISSISSIPPI, AND 

10 ALABAMA 

11 SEC. 321. PURPOSE. 

12 Grants under this chapter shall be for the purpose 

13 of modernizing, renovating, repairing, or constructing 

14 public school facilities, including, where applicable, early 

15 learning facilities, based on the need for such improve16 ments or construction, to ensure safe, healthy, high-per17 forming, and technologically up-to-date public school fa18 cilities. 

19 SEC. 322. ALLOCATION TO LOCAL EDUCATIONAL AGEN20 CIES. 

21 (a) IN GENERAL.—Of the amount appropriated to 

22 carry out this chapter for each fiscal year pursuant to sec23 tion 345(b), the Secretary shall allocate to local edu24 cational agencies in Louisiana, Mississippi, and Alabama 

25 an amount equal to the infrastructure damage inflicted on 

26 public school facilities in each such district by Hurricane 


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1 Katrina or Hurricane Rita in 2005 relative to the total 

2 of such infrastructure damage so inflicted in all such dis3 tricts, combined. 

4 (b) DISTRIBUTION BY SECRETARY.—The Secretary 

5 shall determine and distribute the allocations described in 

6 subsection (a) not later than 120 days after an appropria7 tion of funds for this chapter is made. 

8 SEC. 323. ALLOWABLE USES OF FUNDS. 

9 A local educational agency receiving a grant under 

10 this chapter shall use the grant for one or more of the 

11 activities described in section 313, except that an agency 

12 receiving a grant under this chapter also may use the 

13 grant for the construction of new public school facilities. 

14 CHAPTER 3—GENERAL PROVISIONS 

15 SEC. 331. IMPERMISSIBLE USES OF FUNDS. 

16 No funds received under this subtitle may be used 

17 for— 

18 (1) payment of maintenance costs; 

19 (2) stadiums or other facilities primarily used 

20 for athletic contests or exhibitions or other events 

21 for which admission is charged to the general public; 

22 (3) improvement or construction of facilities the 

23 purpose of which is not the education of children, in24 cluding central office administration or operations or 

25 logistical support facilities; or 


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1 (4) purchasing carbon offsets. 

2 SEC. 332. SUPPLEMENT, NOT SUPPLANT. 

3 A local educational agency receiving a grant under 

4 this subtitle shall use such Federal funds only to supple5 ment and not supplant the amount of funds that would, 

6 in the absence of such Federal funds, be available for mod7 ernization, renovation, repair, and construction of public 

8 school facilities. 

9 SEC. 333. PROHIBITION REGARDING STATE AID. 

10 A State shall not take into consideration payments 

11 under this subtitle in determining the eligibility of any 

12 local educational agency in that State for State aid, or 

13 the amount of State aid, with respect to free public edu14 cation of children. 

15 SEC. 334. MAINTENANCE OF EFFORT. 

16 (a) IN GENERAL.—A local educational agency may 

17 receive a grant under this subtitle for any fiscal year only 

18 if either the combined fiscal effort per student or the ag19 gregate expenditures of the agency and the State involved 

20 with respect to the provision of free public education by 

21 the agency for the preceding fiscal year was not less than 

22 90 percent of the combined fiscal effort or aggregate ex23 penditures for the second preceding fiscal year. 

24 (b) REDUCTION IN CASE OF FAILURE TO MEET

25 MAINTENANCE OF EFFORT REQUIREMENT.— 


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1 (1) IN GENERAL.—The State educational agen2 cy shall reduce the amount of a local educational 

3 agency’s grant in any fiscal year in the exact propor4 tion by which a local educational agency fails to 

5 meet the requirement of subsection (a) by falling 

6 below 90 percent of both the combined fiscal effort 

7 per student and aggregate expenditures (using the 

8 measure most favorable to the local agency). 

9 (2) SPECIAL RULE.—No such lesser amount 

10 shall be used for computing the effort required 

11 under subsection (a) for subsequent years. 

12 (c) WAIVER.—The Secretary shall waive the require13 ments of this section if the Secretary determines that a 

14 waiver would be equitable due to— 

15 (1) exceptional or uncontrollable circumstances, 

16 such as a natural disaster; or 

17 (2) a precipitous decline in the financial re18 sources of the local educational agency. 

19 SEC. 335. SPECIAL RULE ON CONTRACTING. 

20 Each local educational agency receiving a grant under 

21 this subtitle shall ensure that, if the agency carries out 

22 modernization, renovation, repair, or construction through 

23 a contract, the process for any such contract ensures the 

24 maximum number of qualified bidders, including local, 


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1 small, minority, and women- and veteran-owned busi2 nesses, through full and open competition. 

3 SEC. 336. USE OF AMERICAN IRON, STEEL, AND MANUFAC4 TURED GOODS. 

5 (a) IN GENERAL.—None of the funds appropriated 

6 or otherwise made available by this subtitle may be used 

7 for a project for the modernization, renovation, repair, or 

8 construction of a public school facility unless all of the 

9 iron, steel, and manufactured goods used in the project 

10 are produced in the United States. 

11 (b) EXCEPTIONS.—Subsection (a) shall not apply in 

12 any case or category of cases in which the Secretary finds 

13 that— 

14 (1) applying subsection (a) would be incon15 sistent with the public interest; 

16 (2) iron, steel, and the relevant manufactured 

17 goods are not produced in the United States in suffi18 cient and reasonably available quantities and of a 

19 satisfactory quality; or 

20 (3) inclusion of iron, steel, and manufactured 

21 goods produced in the United States will increase 

22 the cost of the overall project by more than 25 per23 cent. 

24 (c) PUBLICATION OF JUSTIFICATION.—If the Sec25 retary determines that it is necessary to waive the applicaVerDate Nov 24 2008 02:20 Jul 16, 2009 Jkt 079200 PO 00000 Frm 00103 Fmt 6652 Sfmt 6201 E:\BILLS\H3221.IH H3221

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1 tion of subsection (a) based on a finding under subsection 

2 (b), the Secretary shall publish in the Federal Register 

3 a detailed written justification of the determination. 

4 (d) CONSTRUCTION.—This section shall be applied in 

5 a manner consistent with United States obligations under 

6 international agreements. 

7 SEC. 337. LABOR STANDARDS. 

8 The grant programs under this subtitle are applicable 

9 programs (as that term is defined in section 400 of the 

10 General Education Provisions Act (20 U.S.C. 1221)) sub11 ject to section 439 of such Act (20 U.S.C. 1232b). 

12 SEC. 338. CHARTER SCHOOLS. 

13 (a) IN GENERAL.—A local educational agency receiv14 ing an allocation under this subtitle shall reserve an 

15 amount of that allocation for charter schools within its ju16 risdiction for modernization, renovation, repair, and con17 struction of charter school facilities. 

18 (b) DETERMINATION OF RESERVED AMOUNT.—The 

19 amount to be reserved by a local educational agency under 

20 subsection (a) shall be determined based on the combined 

21 percentage of students counted under section 1113(a)(5) 

22 of the Elementary and Secondary Education Act of 1965 

23 (20 U.S.C. 6313(a)(5)) in the schools of the agency who— 

24 (1) are enrolled in charter schools; and 


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1 (2) the local educational agency, in consultation 

2 with the authorized public chartering agency, ex3 pects to be enrolled, during the year with respect to 

4 which the reservation is made, in charter schools 

5 that are scheduled to commence operation during 

6 such year. 

7 (c) SCHOOL SHARE.—Individual charter schools shall 

8 receive a share of the amount reserved under subsection 

9 (a) based on the need of each school for modernization, 

10 renovation, repair, or construction, as determined by the 

11 local educational agency in consultation with charter 

12 school administrators. 

13 (d) EXCESS FUNDS.—After the consultation de14 scribed in subsection (c), if the local educational agency 

15 determines that the amount of funds reserved under sub16 section (a) exceeds the modernization, renovation, repair, 

17 and construction needs of charter schools within the local 

18 educational agency’s jurisdiction, the agency may use the 

19 excess funds for other public school facility modernization, 

20 renovation, repair, or construction consistent with this 

21 subtitle and is not required to carry over such funds to 

22 the following fiscal year for use for charter schools. 

23 SEC. 339. GREEN SCHOOLS. 

24 (a) IN GENERAL.—In a given fiscal year, a local edu25 cational agency shall use not less than the applicable perVerDate Nov 24 2008 02:20 Jul 16, 2009 Jkt 079200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\H3221.IH H3221

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1 centage (described in subsection (b)) of funds received 

2 under this subtitle for public school modernization, ren3 ovation, repair, or construction that are certified, verified, 

4 or consistent with any applicable provisions of— 

5 (1) the LEED Green Building Rating System; 

6 (2) Energy Star; 

7 (3) the CHPS Criteria; 

8 (4) Green Globes; or 

9 (5) an equivalent program adopted by the 

10 State, or another jurisdiction with authority over the 

11 local educational agency, that includes a verifiable 

12 method to demonstrate compliance with such pro13 gram. 

14 (b) APPLICABLE PERCENTAGES.—The applicable 

15 percentage described in subsection (a) is— 

16 (1) in fiscal year 2010, 50 percent; and 

17 (2) in fiscal year 2011, 75 percent. 

18 (c) RULE OF CONSTRUCTION.—Nothing in this sec19 tion shall be construed to prohibit a local educational 

20 agency from using sustainable, domestic hardwood lumber 

21 as ascertained through the forest inventory and analysis 

22 program of the Forest Service of the Department of Agri23 culture under the Forest and Rangeland Renewable Re24 sources Research Act of 1978 (16 U.S.C. 1641 et seq.) 


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1 for public school modernization, renovation, repairs, or 

2 construction. 

3 (d) TECHNICAL ASSISTANCE.—The Secretary, in 

4 consultation with the Secretary of Energy and the Admin5 istrator of the Environmental Protection Agency, shall 

6 provide outreach and technical assistance to States and 

7 local educational agencies concerning the best practices in 

8 school modernization, renovation, repair, and construc9 tion, including those related to student academic achieve10 ment, student and staff health, energy efficiency, and envi11 ronmental protection. 

12 SEC. 340. REPORTING. 

13 (a) REPORTS BY LOCAL EDUCATIONAL AGENCIES.— 

14 Local educational agencies receiving a grant under this 

15 subtitle shall annually compile a report describing the 

16 projects for which such funds were used, including— 

17 (1) the number and identity of public schools in 

18 the agency, including the number of charter schools, 

19 and for each school, the total number of students, 

20 and the number of students from low-income fami21 lies; 

22 (2) the total amount of funds received by the 

23 local educational agency under this subtitle, and for 

24 each public school in the agency, including each 

25 charter school, the amount of such funds expended, 


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1 and the types of modernization, renovation, repair, 

2 or construction projects for which such funds were 

3 used; 

4 (3) the number of students impacted by such 

5 projects, including the number of students counted 

6 under section 1113(a)(5) of the Elementary and 

7 Secondary Education Act of 1965 (20 U.S.C. 

8 6313(a)(5)); 

9 (4) the number of public schools in the agency 

10 with a metro-centric locale code of 41, 42, or 43 as 

11 determined by the National Center for Education 

12 Statistics and the percentage of funds received by 

13 the agency under chapter 1 or chapter 2 of this sub14 title that were used for projects at such schools; 

15 (5) the number of public schools in the agency 

16 that are eligible for schoolwide programs under sec17 tion 1114 of the Elementary and Secondary Edu18 cation Act of 1965 (20 U.S.C. 6314) and the per19 centage of funds received by the agency under chap20 ter 1 or chapter 2 of this subtitle that were used for 

21 projects at such schools; 

22 (6) for each project— 

23 (A) the cost; 

24 (B) the standard described in section 

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1 plied or, if the use of funds did not comply with 

2 a standard described in section 339(a), the rea3 son such funds were not able to be used in com4 pliance with such standards and the agency’s 

5 efforts to use such funds in an environmentally 

6 sound manner; and 

7 (C) any demonstrable or expected benefits 

8 as a result of the project (such as energy sav9 ings, improved indoor environmental quality, 

10 student and staff health, including the reduc11 tion of the incidence and effects of asthma and 

12 other respiratory illnesses, and improved cli13 mate for teaching and learning); and 

14 (7) the total number and amount of contracts 

15 awarded, and the number and amount of contracts 

16 awarded to local, small, minority, women, and vet17 eran-owned businesses. 

18 (b) AVAILABILITY OF REPORTS.—A local educational 

19 agency shall— 

20 (1) submit the report described in subsection 

21 (a) to the State educational agency, which shall com22 pile such information and report it annually to the 

23 Secretary; and 

24 (2) make the report described in subsection (a) 

25 publicly available, including on the agency’s website. 


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1 (c) REPORTS BY SECRETARY.—Not later than De2 cember 31 of each fiscal year, the Secretary shall submit 

3 to the Committee on Education and Labor of the House 

4 of Representatives and the Committee on Health, Edu5 cation, Labor and Pensions of the Senate, and make avail6 able on the Department of Education’s website, a report 

7 on grants made under this subtitle, including the informa8 tion from the reports described in subsection (b)(1). 

9 SEC. 341. SPECIAL RULES. 

10 Notwithstanding any other provision of this subtitle, 

11 none of the funds authorized by this subtitle may be— 

12 (1) used to employ workers in violation of sec13 tion 274A of the Immigration and Nationality Act 

14 (8 U.S.C. 1324a); or 

15 (2) distributed to a local educational agency 

16 that does not have a policy that requires a criminal 

17 background check on all employees of the agency. 

18 SEC. 342. PROMOTION OF EMPLOYMENT EXPERIENCES. 

19 The Secretary of Education, in consultation with the 

20 Secretary of Labor, shall work with recipients of funds 

21 under this subtitle to promote appropriate opportunities 

22 to gain employment experience working on modernization, 

23 renovation, repair, and construction projects funded under 

24 this subtitle for— 


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1 (1) participants in a YouthBuild program (as 

2 defined in section 173A of the Workforce Investment 

3 Act of 1998 (29 U.S.C. 2918a)); 

4 (2) individuals enrolled in the Job Corps pro5 gram carried out under subtitle C of title I of the 

6 Workforce Investment Act of 1998 (29 U.S.C. 2881 

7 et seq.); and 

8 (3) individuals enrolled in a junior or commu9 nity college (as defined in section 312(f) of the 

10 Higher Education Act of 1965 (20 U.S.C. 1088(f))) 

11 certificate or degree program relating to projects de12 scribed in section 339(a). 

13 SEC. 343. ADVISORY COUNCIL ON GREEN, HIGH-PER14 FORMING SCHOOLS. 

15 (a) ESTABLISHMENT OF ADVISORY COUNCIL.—The 

16 Secretary shall establish an advisory council to be known 

17 as the ‘‘Advisory Council on Green, High-Performing 

18 Schools’’ (in this section referred to as the ‘‘Advisory 

19 Council’’) which shall be composed of— 

20 (1) appropriate officials from the Department 

21 of Education; 

22 (2) representatives of the academic, architec23 tural, business, education, engineering, environ24 mental, labor, and scientific communities; and 


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1 (3) such other representatives as the Secretary 

2 deems appropriate. 

3 (b) DUTIES OF ADVISORY COUNCIL.— 

4 (1) ADVISORY DUTIES.—The Advisory Council 

5 shall advise the Secretary on the impact of green, 

6 high-performing schools, on— 

7 (A) teaching and learning; 

8 (B) health; 

9 (C) energy costs; 

10 (D) environmental impact; and 

11 (E) other areas that the Secretary and the 

12 Advisory Council deem appropriate. 

13 (2) OTHER DUTIES.—The Advisory Council 

14 shall assist the Secretary in— 

15 (A) making recommendations on Federal 

16 policies to increase the number of green, high17 performing schools; 

18 (B) identifying Federal policies that are 

19 barriers to helping States and local educational 

20 agencies make green, high-performing schools; 

21 (C) providing technical assistance and out22 reach to States and local educational agencies 

23 under section 339(d); and 

24 (D) providing the Secretary such other as25 sistance as the Secretary deems appropriate. 


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1 (c) CONSULTATION.—In carrying out its duties under 

2 subsection (b), the Advisory Council shall consult with the 

3 Chair of the Council on Environmental Quality and the 

4 heads of appropriate Federal agencies, including the Sec5 retary of Commerce, the Secretary of Energy, the Sec6 retary of Health and Human Services, the Secretary of 

7 Labor, the Administrator of the Environmental Protection 

8 Agency, and the Administrator of the General Services 

9 Administration (through the Office of Federal High-Per10 formance Green Buildings). 

11 SEC. 344. EDUCATION REGARDING PROJECTS. 

12 A local educational agency receiving funds under this 

13 subtitle may encourage schools at which projects are un14 dertaken with such funds to educate students about the 

15 project, including, as appropriate, the functioning of the 

16 project and its environmental, energy, sustainability, and 

17 other benefits. 

18 SEC. 345. AVAILABILITY OF FUNDS. 

19 (a) CHAPTER 1.—There are authorized to be appro20 priated, and there are appropriated, to carry out chapter 

21 1 of this subtitle (in addition to any other amounts appro22 priated to carry out such chapter and out of any money 

23 in the Treasury not otherwise appropriated), 

24 $2,465,000,000 for each of fiscal years 2010 and 2011. 


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1 (b) CHAPTER 2.—There are authorized to be appro2 priated, and there are appropriated, to carry out chapter 

3 2 of this subtitle (in addition to any other amounts appro4 priated to carry out such chapter and out of any money 

5 in the Treasury not otherwise appropriated), $35,000,000 

6 for each of fiscal years 2010 and 2011. 

7 (c) PROHIBITION ON EARMARKS.—None of the funds 

8 appropriated under this section may be used for a Con9 gressional earmark as defined in clause 9(d) of rule XXI 

10 of the Rules of the House of Representatives. 

11 Subtitle B—Higher Education 

12 SEC. 351. FEDERAL ASSISTANCE FOR COMMUNITY COL13 LEGE MODERNIZATION AND CONSTRUCTION. 

14 (a) IN GENERAL.— 

15 (1) GRANT PROGRAM.—From the amounts 

16 made available under subsection (i), the Secretary 

17 shall award grants to States for the purposes of con18 structing new community college facilities and mod19 ernizing, renovating, and repairing existing commu20 nity college facilities. Grants awarded under this sec21 tion shall be used by a State for one or more of the 

22 following: 

23 (A) To reduce financing costs of loans for 

24 new construction, modernization, renovation, or 


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1 repair projects at community colleges (such as 

2 paying interest or points on such loans). 

3 (B) To provide matching funds for a com4 munity college capital campaign to attract pri5 vate donations of funds for new construction, 

6 modernization, renovation, or repair projects at 

7 the community college. 

8 (C) To capitalize a revolving loan fund to 

9 finance new construction, modernization, ren10 ovation, and repair projects at community col11 leges. 

12 (2) ALLOCATION.— 

13 (A) DETERMINATION OF AVAILABLE

14 AMOUNT.—The Secretary shall determine the 

15 amount available for allocation to each State by 

16 determining the amount equal to the total num17 ber of students in the State who are enrolled in 

18 community colleges and who are pursuing a de19 gree or certificate that is not a bachelor’s, mas20 ter’s, professional, or other advanced degree, 

21 relative to the total number of such students in 

22 all States, combined. 

23 (B) ALLOCATION.—The Secretary shall al24 locate to each State selected by the Secretary to 

25 receive a grant under this section an amount 


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1 equal to the amount determined to be available 

2 for allocation to such State under subparagraph 

3 (A), less any portion of that amount that is 

4 subject to a limitation under paragraph (3). 

5 (C) REALLOCATION.—Amounts not allo6 cated under this section to a State because— 

7 (i) the State did not submit an appli8 cation under subsection (b); 

9 (ii) the State submitted an application 

10 that the Secretary determined did not meet 

11 the requirements of such subsection; or 

12 (iii) the State is subject to a limita13 tion under paragraph (3) that prevents the 

14 State from using a portion of the alloca15 tion, 

16 shall be proportionately reallocated under this 

17 paragraph to the States that are not described 

18 in clause (i), (ii), or (iii) of this subparagraph. 

19 (3) GRANT AMOUNT LIMITATIONS.—A grant 

20 awarded to a State under this section— 

21 (A) to reduce financing costs of loans for 

22 new construction, modernization, renovation, or 

23 repair projects at community colleges under 

24 paragraph (1)(A) shall be for an amount that 

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1 cipal amount of the loans for which financing 

2 costs are being reduced; and 

3 (B) to provide matching funds for a com4 munity college capital campaign under para5 graph (1)(B) shall be for an amount that is not 

6 more than 25 percent of the total amount of 

7 the private donations of funds raised through 

8 such campaign over the duration of such cam9 paign, as such duration is determined by the 

10 State in the application submitted under sub11 section (b). 

12 (b) APPLICATION.—A State that desires to receive a 

13 grant under this section shall submit an application to the 

14 Secretary at such time, in such manner, and containing 

15 such information and assurances as the Secretary may re16 quire. Such application shall include a certification by the 

17 State that the funds provided under this section for the 

18 construction of new community college facilities and the 

19 modernization, renovation, and repair of existing commu20 nity college facilities will improve instruction at such col21 leges and will improve the ability of such colleges to edu22 cate and train students to meet the workforce needs of 

23 employers in the State. 

24 (c) USE OF FUNDS BY COMMUNITY COLLEGES.— 


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1 (1) PERMISSIBLE USES OF FUNDS.—Funds 

2 made available to community colleges through a loan 

3 described in subsection (a)(1)(A), a capital campaign 

4 described in subsection (a)(1)(B), or a loan from a 

5 revolving loan fund described in subsection (a)(1)(C) 

6 shall be used only for the construction, moderniza7 tion, renovation, or repair of community college fa8 cilities that are primarily used for instruction, re9 search, or student housing, which may include any 

10 of the following: 

11 (A) Repair, replacement, or installation of 

12 roofs, including extensive, intensive, or semi-in13 tensive green roofs, electrical wiring, water sup14 ply and plumbing systems, sewage systems, 

15 storm water runoff systems, lighting systems, 

16 building envelope, windows, ceilings, flooring, or 

17 doors, including security doors. 

18 (B) Repair, replacement, or installation of 

19 heating, ventilation, or air conditioning systems, 

20 including insulation, and conducting indoor air 

21 quality assessments. 

22 (C) Compliance with fire, health, seismic, 

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1 sure that the community college’s facilities are 

2 prepared for emergencies, such as improving 

3 building infrastructure to accommodate security 

4 measures and installing or upgrading tech5 nology to ensure that the community college is 

6 able to respond to emergencies such as acts of 

7 terrorism, campus violence, and natural disas8 ters. 

9 (D) Retrofitting necessary to increase the 

10 energy efficiency of the community college’s fa11 cilities. 

12 (E) Modifications necessary to make facili13 ties accessible in compliance with the Americans 

14 with Disabilities Act of 1990 (42 U.S.C. 12101 

15 et seq.) and section 504 of the Rehabilitation 

16 Act of 1973 (29 U.S.C. 794). 

17 (F) Abatement, removal, or interim con18 trols of asbestos, polychlorinated biphenyls, 

19 mold, mildew, or lead-based hazards, including 

20 lead-based paint hazards from the community 

21 college’s facilities. 

22 (G) Modernization, renovation, or repair 

23 necessary to reduce the consumption of coal, 

24 electricity, land, natural gas, oil, or water. 


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1 (H) Modernization, renovation, and repair 

2 relating to improving science and engineering 

3 laboratories, libraries, or instructional facilities. 

4 (I) Installation or upgrading of educational 

5 technology infrastructure. 

6 (J) Installation or upgrading of renewable 

7 energy generation and heating systems, includ8 ing solar, photovoltaic, wind, biomass (including 

9 wood pellet and woody biomass), waste-to-en10 ergy, solar-thermal and geothermal systems, 

11 and energy audits. 

12 (K) Other modernization, renovation, or 

13 repair projects that are primarily for instruc14 tion, research, or student housing. 

15 (L) Required environmental remediation 

16 related to modernization, renovation, or repair 

17 described in subparagraphs (A) through (K). 

18 (2) GREEN SCHOOL REQUIREMENT.—A commu19 nity college receiving assistance through a loan de20 scribed in subsection (a)(1)(A), a capital campaign 

21 described in subsection (a)(1)(B), or a loan from a 

22 revolving loan fund described in subsection (a)(1)(C) 

23 shall use not less than 50 percent of such assistance 

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1 tion, renovation, or repair that are certified, verified, 

2 or consistent with the applicable provisions of— 

3 (A) the LEED Green Building Rating Sys4 tem; 

5 (B) Energy Star; 

6 (C) the CHPS Criteria, as applicable; 

7 (D) Green Globes; or 

8 (E) an equivalent program adopted by the 

9 State or the State higher education agency that 

10 includes a verifiable method to demonstrate 

11 compliance with such program. 

12 (3) PROHIBITED USES OF FUNDS.— 

13 (A) IN GENERAL.—No funds awarded 

14 under this section may be used for— 

15 (i) payment of maintenance costs; 

16 (ii) construction, modernization, ren17 ovation, or repair of stadiums or other fa18 cilities primarily used for athletic contests 

19 or exhibitions or other events for which ad20 mission is charged to the general public; or 

21 (iii) construction, modernization, ren22 ovation, or repair of facilities— 

23 (I) used for sectarian instruction, 

24 religious worship, or a school or de25 partment of divinity; or 


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1 (II) in which a substantial por2 tion of the functions of the facilities 

3 are subsumed in a religious mission. 

4 (B) FOUR-YEAR INSTITUTIONS.—No funds 

5 awarded to a four-year public institution of 

6 higher education under this section may be 

7 used for any facility, service, or program of the 

8 institution that is not available to students who 

9 are pursuing a degree or certificate that is not 

10 a bachelor’s, master’s, professional, or other ad11 vanced degree. 

12 (d) APPLICATION OF GEPA.—The grant program 

13 authorized in this section is an applicable program (as 

14 that term is defined in section 400 of the General Edu15 cation Provisions Act (20 U.S.C. 1221)) subject to section 

16 439 of such Act (20 U.S.C. 1232b). The Secretary shall, 

17 notwithstanding section 437 of such Act (20 U.S.C. 1232) 

18 and section 553 of title 5, United States Code, establish 

19 such program rules as may be necessary to implement 

20 such grant program by notice in the Federal Register. 

21 (e) CONCURRENT FUNDING.—Funds made available 

22 under this section shall not be used to assist any commu23 nity college that receives funding for the construction, 

24 modernization, renovation, and repair of facilities under 

25 any other program under this Act, the Higher Education 


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1 Act of 1965, or the American Recovery and Reinvestment 

2 Act of 2009. 

3 (f) REPORTS BY THE STATES.—Each State that re4 ceives a grant under this section shall, not later than Sep5 tember 30, 2012, and annually thereafter for each fiscal 

6 year in which the State expends funds received under this 

7 section, submit to the Secretary a report that includes— 

8 (1) a description the projects for which the 

9 grant funding was, or will be, used; 

10 (2) a list of the community colleges that have 

11 received, or will receive, assistance from the grant 

12 through a loan described in subsection (a)(1)(A), a 

13 capital campaign described in subsection (a)(1)(B), 

14 or a loan from a revolving loan fund described in 

15 subsection (a)(1)(C); and 

16 (3) a description of the amount and nature of 

17 the assistance provided to each such college. 

18 (g) REPORT BY THE SECRETARY.—The Secretary 

19 shall submit to the authorizing committees (as defined in 

20 section 103 of the Higher Education Act of 1965) an an21 nual report on the grants made under this section, includ22 ing the information described in subsection (f). 

23 (h) DEFINITIONS.— 

24 (1) COMMUNITY COLLEGE.—As used in this 

25 section, 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 

6 Higher Education Act of 1965) that awards a 

7 significant number of degrees and certificates 

8 that are not— 

9 (i) bachelor’s degrees (or an equiva10 lent); or 

11 (ii) master’s, professional, or other 

12 advanced 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 

19 States Department of Energy and the United States 

20 Environmental Protection Agency. 

21 (4) GREEN GLOBES.—The term ‘‘Green 

22 Globes’’ means the Green Building Initiative envi23 ronmental design and rating system referred to as 

24 Green Globes. 


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1 (5) LEED GREEN BUILDING RATING SYSTEM.— 

2 The term ‘‘LEED Green Building Rating System’’ 

3 means the United States Green Building Council 

4 Leadership in Energy and Environmental Design 

5 green building rating standard referred to as the 

6 LEED Green Building Rating System. 

7 (6) SECRETARY.—The term ‘‘Secretary’’ means 

8 the Secretary of Education. 

9 (i) AVAILABILITY OF FUNDS.—There are authorized 

10 to be appropriated, and there are appropriated, to carry 

11 out this section (in addition to any other amounts appro12 priated to carry out this section and out of any money 

13 in the Treasury not otherwise appropriated), 

14 $2,500,000,000 for fiscal year 2011, which shall remain 

15 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 

20 competitive basis to States for the following: 

21 (1) To promote standards reform of State early 

22 learning programs serving children from birth to age 

23 5 in order to support the healthy development and 

24 improve the school readiness outcomes of young chil25 dren. 


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1 (2) To establish a high standard of quality that 

2 integrates appropriate early learning and develop3 ment standards across early learning settings. 

4 (3) To fund and implement quality initiatives 

5 that improve the skills and effectiveness of early 

6 learning providers, and improve the quality of exist7 ing early learning programs, in order to increase the 

8 number of disadvantaged children who participate in 

9 comprehensive and high-quality early learning pro10 grams. 

11 (4) To ensure that a greater number of dis12 advantaged children enter kindergarten with the cog13 nitive, social, emotional, and physical skills and abili14 ties needed to be successful in school. 

15 (5) To increase parent’s ability to access com16 prehensive and high quality early learning programs 

17 across settings for their children. 

18 SEC. 402. PROGRAMS AUTHORIZED. 

19 (a) QUALITY PATHWAYS GRANTS.—The Secretary 

20 shall use funds made available to carry out this title for 

21 a fiscal year to award grants on a competitive basis to 

22 States in accordance with section 403. 

23 (b) DEVELOPMENT GRANTS.—The Secretary shall 

24 use funds made available to carry out this title for a fiscal 

25 year to award grants in accordance with section 404 on 


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1 a competitive basis to States that demonstrate a commit2 ment to establishing a system of early learning that will 

3 include the components described in section 403(c)(3) but 

4 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 

12 out this title for a fiscal year, the Secretary— 

13 (A) shall reserve 2 percent jointly to ad14 minister this title with the Secretary of Health 

15 and Human Services; and 

16 (B) shall reserve 3 percent to carry out ac17 tivities under section 405. 

18 (2) TRIBAL SCHOOL READINESS PLANNING

19 DEMONSTRATION.—After making the reservations 

20 under paragraph (1), the Secretary shall reserve 

21 0.25 percent for a competitive grant program for In22 dian tribes to develop and implement school readi23 ness plans that— 


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1 (A) are coordinated with local educational 

2 agencies serving children who are members of 

3 the 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), 

13 the Secretary shall reserve a percent (which 

14 shall be not greater than 65 percent for fiscal 

15 years 2010 through 2012 and not greater than 

16 85 percent for fiscal year 2013 and each suc17 ceeding fiscal year) determined under subpara18 graph (B) to carry out subsection (a). 

19 (B) DETERMINATION OF AMOUNT.—In de20 termining the amount to reserve under subpara21 graph (A), the Secretary shall take into account 

22 the following: 

23 (i) The total number of States with 

24 approved applications under this title for 

25 the year. 


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1 (ii) The number of low-income chil2 dren under age 5 in each State with an ap3 proved application under section 403 for 

4 the year. 

5 (C) REALLOCATION.—For fiscal year 2013 

6 and subsequent fiscal years, the Secretary may 

7 reallocate funds allocated for development 

8 grants under subsection (b) for the purpose of 

9 providing additional grants under subsection 

10 (a), if the Secretary determines that there are 

11 insufficient applications for a grant under sub12 section (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 

22 recommendations from such Council in the applica23 tion, where applicable; and 

24 (3) otherwise shall submit the application to the 

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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 

5 to 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 

10 described in section 403(f); 

11 (2) that dedicate a significant increase, in com12 parison to recent fiscal years, in State expenditures 

13 on early learning programs and services; and 

14 (3) that demonstrate efforts to build public-pri15 vate partnerships designed to accomplish the pur16 poses of this title. 

17 (f) MAINTENANCE OF EFFORT.— 

18 (1) IN GENERAL.—With respect to each period 

19 for which a State is awarded a grant under this 

20 title, the aggregate expenditures by the State and its 

21 political subdivisions on early learning programs and 

22 services shall be not less than the level of the ex23 penditures for such programs and services by the 

24 State and its political subdivisions for fiscal year 

25 2009. 


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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 

10 Advisory Council on Early Childhood Education 

11 and Care (established pursuant to section 

12 642B(b)(1)(A) of the Head Start Act (42 

13 U.S.C. 9837b(b)(1)(A))). 

14 (C) State expenditures on public pre-kin15 dergarten, 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 

22 under 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, men8 tal 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, 

18 the Secretary shall bear responsibility for obligating 

19 and disbursing funds and ensuring compliance with 

20 applicable laws and administrative requirements, 

21 subject 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 number of disadvan10 taged children who participate in high-quality 

11 early learning programs; 

12 (B) implementing an early learning system 

13 that meets the components described in sub14 section (c)(3); and 

15 (C) incorporating the program quality 

16 findings and recommendations reported by the 

17 commission established under section 405(1) 

18 into the State system of early learning. 

19 (b) MATCHING REQUIREMENT.— 

20 (1) IN GENERAL.—Subject to subsection (g), to 

21 be eligible to receive a grant under section 402(a), 

22 a State shall contribute to the activities assisted 

23 under the grant non-Federal matching funds in an 

24 amount equal to not less than the applicable percent 

25 of the amount of the grant. 


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1 (2) APPLICABLE PERCENT.—For purposes of 

2 paragraph (1), the applicable percent means— 

3 (A) 10 percent in the first fiscal year of 

4 the grant; 

5 (B) 10 percent in the second fiscal year of 

6 the grant; 

7 (C) 15 percent in the third fiscal year of 

8 the grant; and 

9 (D) 20 percent in the fourth fiscal year of 

10 the grant and subsequent fiscal years. 

11 (3) PRIVATE CONTRIBUTIONS.—Private con12 tributions made as part of public-private partner13 ships to increase the number of low-income children 

14 in high-quality early learning programs in a State 

15 may be used by the State to satisfy the requirement 

16 of paragraph (1). 

17 (4) FINANCIAL HARDSHIP WAIVER.—The Sec18 retary may waive or reduce the non-Federal share of 

19 a State that has submitted an application for a 

20 grant under section 402(a) if the State demonstrates 

21 a need for such waiver or reduction due to extreme 

22 financial hardship, as defined by the Secretary by 

23 regulation. 


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1 (c) STATE APPLICATIONS.—In order to receive a 

2 grant under section 402(a), a State’s application under 

3 section 402(d) shall include the following: 

4 (1) A description of how the State will use the 

5 grant to implement quality initiatives to improve 

6 early learning programs serving disadvantaged chil7 dren from birth to age 5 to lead to a greater per8 centage of such children participating in higher 

9 quality early learning programs. 

10 (2) A description of the goals and benchmarks 

11 the State will establish to lead to a greater number 

12 or percentage of disadvantaged children partici13 pating in higher quality early learning programs to 

14 improve school readiness outcomes, including an es15 tablished baseline of the number of disadvantaged 

16 children in high-quality early learning programs. 

17 (3) A description of how the State will imple18 ment a governance structure and a system of early 

19 learning programs and services that includes the fol20 lowing components: 

21 (A) State early learning and development 

22 standards that include social and emotional, 

23 cognitive, and physical development domains, 

24 and approaches to learning that are develop25 mentally appropriate for all children and are 


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1 aligned with academic content standards for 

2 grades kindergarten through 3. 

3 (B) A process to ensure that State early 

4 learning and development standards are inte5 grated into the instructional and programmatic 

6 practices of early learning programs and serv7 ices, including services provided to children 

8 under section 619 and part C of the Individuals 

9 with Disabilities Education Act (20 U.S.C. 

10 1419, 1431 et seq.). 

11 (C) A program rating system that builds 

12 on licensing requirements and other State regu13 latory standards and that— 

14 (i) is designed to improve quality and 

15 effectiveness across different types of early 

16 learning settings; 

17 (ii) integrates evidence-based program 

18 quality standards that reflect standard lev19 els of quality and has progressively higher 

20 levels of program quality; 

21 (iii) integrates the State’s early learn22 ing and development standards for the 

23 purpose of improving instructional and 

24 programmatic practices; 


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1 (iv) addresses staff qualifications and 

2 professional development; 

3 (v) provides financial incentives and 

4 other supports to help programs meet and 

5 sustain higher levels of quality; 

6 (vi) includes mechanisms for evalu7 ating how programs are meeting those 

8 standards and progressively higher levels 

9 of quality; and 

10 (vii) includes a mechanism for public 

11 awareness of program levels. 

12 (D) A system of program review and moni13 toring that is designed to rate providers using 

14 the system described in subparagraph (C) and 

15 to assess and improve programmatic practices, 

16 instructional practices, and classroom environ17 ment. 

18 (E) A process to support early learning 

19 programs integrating instructional and pro20 grammatic practices that— 

21 (i) include developmentally appro22 priate, ongoing, classroom-based instruc23 tional assessments for each domain of child 

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1 prove instructional practice, professional 

2 development of staff, and services; and 

3 (ii) are aligned with the curricula used 

4 in the early learning program and with the 

5 State early learning and development 

6 standards or the Head Start Child Out7 comes Framework (as described in the 

8 Head Start Act), as applicable. 

9 (F) Minimum preservice early childhood 

10 development and education training require11 ments for providers in early learning programs. 

12 (G) A comprehensive plan for supporting 

13 the professional preparation and the ongoing 

14 professional development of an effective, well15 compensated early learning workforce, which 

16 plan includes training and education that is 

17 sustained, intensive, and classroom-focused and 

18 leads toward a credential or degree and is tied 

19 to improved compensation. 

20 (H) An outreach strategy to promote un21 derstanding by parents and families of— 

22 (i) their child’s early development and 

23 learning; 


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1 (ii) the State’s program rating sys2 tem, as described in subparagraph (C); 

3 and 

4 (iii) the rating of the program in 

5 which their child is enrolled. 

6 (I) A coordinated system to facilitate 

7 screening, referral, and provision of services re8 lated to health, mental health, disability, and 

9 family support for children participating in 

10 early learning programs. 

11 (J) A process for evaluating school readi12 ness in children that reflects all of the major 

13 domains of development, and that is used to 

14 guide practice and improve early learning pro15 grams. 

16 (K) A coordinated data infrastructure that 

17 facilitates— 

18 (i) uniform data collection about the 

19 quality of early learning programs, essen20 tial information about the children and 

21 families that participate in such programs, 

22 and the qualifications and compensation of 

23 the early learning workforce in such pro24 grams; and 


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1 (ii) alignment and interoperability be2 tween the data system for early learning 

3 programs for children and data systems for 

4 elementary and secondary education. 

5 (4) A description of how the funds provided 

6 under the grant will be targeted to prioritize increas7 ing the number and percentage of low-income chil8 dren in high-quality early learning programs, includ9 ing children— 

10 (A) in each age group (infants, toddlers, 

11 and preschoolers); 

12 (B) with developmental delays and disabil13 ities; 

14 (C) with limited English proficiency; and 

15 (D) living in rural areas. 

16 (5) An assurance that the grant will be used to 

17 improve the quality of early learning programs 

18 across a range of types of settings and providers of 

19 such programs. 

20 (6) A description of the steps the State will 

21 take to encourage center-based child care programs, 

22 family child care programs, State-funded prekinder23 garten, Head Start programs, and other early learn24 ing programs, such as those funded under title I of 

25 the Elementary and Secondary Education Act of 


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1 1965 (20 U.S.C. 6301 et seq.) or section 619 of the 

2 Individuals with Disabilities Education Act (20 

3 U.S.C. 1419) to participate in the State program 

4 rating system described in paragraph (3)(C). 

5 (7) An assurance that the grant will be used 

6 only to supplement, and not to supplant, Federal, 

7 State, and local funds otherwise available to support 

8 existing early learning programs and services. 

9 (8) A description of any disparity by age group 

10 (infants, toddlers, and preschoolers) of available 

11 high-quality early learning programs in low-income 

12 communities and the steps the State will take to de13 crease such disparity, if applicable. 

14 (9) A description of how the State early learn15 ing and development standards will be appropriate 

16 for children who are limited English proficient. 

17 (10) A description of how the State will coordi18 nate the purposes of this title with the activities 

19 funded under— 

20 (A) section 658G of the Child Care and 

21 Development Block Grant Act of 1990 (42 

22 U.S.C. 9858e); 

23 (B) section 619 and part C of the Individ24 uals with Disabilities Education Act (20 U.S.C. 

25 1419, 1431 et seq.); 


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1 (C) title I of the Elementary and Sec2 ondary Education Act of 1965 (20 U.S.C. 6301 

3 et seq.); 

4 (D) State-funded pre-kindergarten pro5 grams (where applicable); 

6 (E) Head Start programs; and 

7 (F) other early childhood programs and 

8 services. 

9 (11) A description of how the State will use the 

10 grant to increase the number of disadvantaged chil11 dren in high-quality early learning settings propor12 tionally across infants, toddlers, and preschoolers. 

13 (12) An assurance that the State will continue 

14 to participate in part C of the Individuals with Dis15 abilities Education Act (20 U.S.C. 1431 et seq.) for 

16 the duration of the grant. 

17 (d) CRITERIA USED IN AWARDING GRANTS.—In 

18 awarding grants under section 402(a), the Secretary shall 

19 evaluate the applications, and award grants under such 

20 section on a competitive basis, based on— 

21 (1) compliance with section 402(d) and sub22 section (c); 

23 (2) the priority factors described in section 

24 402(e); 


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1 (3) evidence of significant progress in estab2 lishing a system of early learning for children that 

3 includes the components described in subsection 

4 (c)(3); and 

5 (4) the State’s capacity to fully complete imple6 mentation of such a system. 

7 (e) CRITERION USED IN DETERMINING AMOUNT OF

8 AWARD.—In determining the amount to award a State 

9 under section 402(a), the Secretary shall take into ac10 count— 

11 (1) the number of low-income children under 

12 age 5 in the State; and 

13 (2) the State plan and capacity to implement 

14 the criteria described in paragraphs (3) and (4) of 

15 subsection (d). 

16 (f) STATE USES OF FUNDS.— 

17 (1) IN GENERAL.—A State receiving a grant 

18 under section 402(a) shall use the grant as follows: 

19 (A) Not less than 65 percent of the grant 

20 amount shall be used to implement quality ini21 tiatives that increase the number of disadvan22 taged children in high-quality early learning 

23 programs. Such funds shall be used for two or 

24 more of the following activities: 


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1 (i) Initiatives that improve the creden2 tials of early learning providers and are 

3 tied to compensation. 

4 (ii) Initiatives that help early learning 

5 programs meet and sustain higher pro6 gram quality standards, such as— 

7 (I) improving teacher-child ra8 tios; 

9 (II) improving group size; 

10 (III) improving the qualifications 

11 of early learning providers; and 

12 (IV) supporting effective edu13 cation and training for early learning 

14 providers. 

15 (iii) Implementing classroom observa16 tion assessments and data-driven decisions 

17 tied to activities that improve instructional 

18 practices, programmatic practices, or class19 room environment and promote school 

20 readiness. 

21 (iv) Providing financial incentives to 

22 early learning programs— 

23 (I) for undertaking quality im24 provements that promote healthy de25 velopment and school readiness; and 


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1 (II) maintaining quality improve2 ments that promote healthy develop3 ment and school readiness. 

4 (v) Integrating State early learning 

5 and development standards into instruc6 tional and programmatic practices in early 

7 learning programs. 

8 (vi) Providing high-quality, sustained, 

9 intensive, and classroom-focused profes10 sional development that improves the 

11 knowledge and skills of early learning pro12 viders. 

13 (vii) Building the capacity of early 

14 learning programs and communities to pro15 mote understanding of the State’s early 

16 learning system and the rating of the pro17 gram in which their child is enrolled and 

18 encourage the active involvement and en19 gagement of parents and families in the 

20 learning and development of their children. 

21 (viii) Building the capacity of early 

22 learning programs and communities to fa23 cilitate screening, referral, and provision of 

24 services related to health, mental health, 


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1 disability, and family support for children 

2 participating in early learning programs. 

3 (ix) Other innovative activities, pro4 posed by the State and approved in ad5 vance by the Secretary that are— 

6 (I) based on successful practices; 

7 (II) designed to improve the 

8 quality of early learning programs and 

9 services; and 

10 (III) advance the system compo11 nents described in subsection (c)(3). 

12 (B) The remainder of the grant amount 

13 may be used for one or more of the following: 

14 (i) Implementation or enhancement of 

15 the State’s data system, including inter16 operability across agencies serving chil17 dren, and unique child and program identi18 fiers. 

19 (ii) Enhancement of the State’s over20 sight system for early learning programs, 

21 including the implementation of a quality 

22 rating system. 

23 (iii) The development and implemen24 tation of measures of school readiness of 

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1 mains of child development and that in2 form the quality improvement process. 

3 (2) PRIORITY.—A State receiving a grant under 

4 section 402(a) shall use the grant so as to prioritize 

5 improving the quality of early learning programs 

6 serving low-income children. 

7 (g) SPECIAL RULE.— 

8 (1) IN GENERAL.—Beginning with the second 

9 fiscal year of a grant under section 402(a), a State 

10 with respect to which the Secretary certifies that the 

11 State has made sufficient progress in implementing 

12 the requirements of the grant may apply to the Sec13 retary to reserve up to 25 percent of the amount of 

14 the grant to expand access for low-income children 

15 to the highest quality early learning programs that 

16 offer full-day services, except that the State must 

17 agree to contribute for such purpose non-Federal 

18 matching funds in an amount equal to not less than 

19 50 percent of the amount reserved under this sub20 section. One-half of such non-Federal matching 

21 funds may be provided by a private entity. 

22 (2) FINANCIAL HARDSHIP WAIVER.—The Sec23 retary may waive or reduce the non-Federal share of 

24 a State under paragraph (1) if the State dem25 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 deter4 mines that a State receiving a grant under section 402(a) 

5 is encountering barriers to reaching goals described in 

6 subsection (c)(2), the State shall develop a plan for im7 provement in consultation with, and subject to approval 

8 by, the Secretary. 

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 under16 take activities to develop the components of an early 

17 learning programs and services system described in 

18 section 403(c)(3) and that will allow a State to be19 come eligible and competitive for a grant described 

20 in section 402(a). 

21 (2) PRIORITY.—A State receiving a grant under 

22 section 402(b) shall use the grant so as to prioritize 

23 improving the quality of early learning programs 

24 serving low-income children. 

25 (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 

3 to the activities assisted under the grant non-Fed4 eral matching funds in an amount equal to not less 

5 than the applicable percent of the amount of the 

6 grant. 

7 (2) APPLICABLE PERCENT.—For purposes of 

8 paragraph (1), the applicable percent means— 

9 (A) 20 percent in the first fiscal year of 

10 the grant; 

11 (B) 25 percent in the second fiscal year of 

12 the grant; and 

13 (C) 30 percent in the third fiscal year of 

14 the grant. 

15 (3) PRIVATE CONTRIBUTIONS.—Private con16 tributions made as part of public-private partner17 ships to increase the number of low-income children 

18 in high-quality early learning programs in a State 

19 may be used by the State to satisfy the requirement 

20 of paragraph (1). 

21 (4) FINANCIAL HARDSHIP WAIVER.—The Sec22 retary may waive or reduce the non-Federal share of 

23 a State that has submitted an application for a 

24 grant under section 402(b) if the State demonstrates 

25 a need for such waiver or reduction due to extreme 


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1 financial hardship, as defined by the Secretary by 

2 regulation. 

3 SEC. 405. RESEARCH AND EVALUATION. 

4 From funds reserved under section 402(c)(1), the 

5 Secretary of Education and the Secretary of Health and 

6 Human Services, acting jointly, shall carry out the fol7 lowing activities: 

8 (1) Establishing a national commission whose 

9 duties shall include— 

10 (A) reviewing the status of State and Fed11 eral early learning program quality standards 

12 and early learning and development standards; 

13 (B) recommending benchmarks for pro14 gram quality standards and early learning and 

15 development standards; and 

16 (C) reporting to the Secretaries of Edu17 cation and Health and Human Services not 

18 later than 3 years after the date of the enact19 ment of this Act on the commission’s findings 

20 and recommendations. 

21 (2) Conducting a national evaluation of the 

22 grants made under this title through the Institute of 

23 Education Science in collaboration with the appro24 priate research divisions within the Department of 

25 Health and Human Services. 


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1 (3) Supporting a research collaborative among 

2 the Institute of Education Sciences, the National In3 stitute of Child Health and Human Development, 

4 the Office of Planning, Research, and Evaluation 

5 within the Administration for Children and Families 

6 in the Department of Health and Human Services, 

7 and other appropriate Federal entities to support re8 search on early learning that can inform improved 

9 State standards and licensing requirements and im10 proved child outcomes, which collaborative shall— 

11 (A) biennially prepare and publish for pub12 lic comment a detailed research plan; 

13 (B) support early learning research activi14 ties that could include determining— 

15 (i) the characteristics of early learning 

16 programs that produce positive develop17 mental outcomes for children; 

18 (ii) the effects of program quality 

19 standards on child outcomes; 

20 (iii) the relationships between specific 

21 interventions and types of child and family 

22 outcomes; 

23 (iv) the effectiveness of early learning 

24 provider training in raising program qual25 ity and improving child outcomes; and 


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1 (v) the effectiveness of professional 

2 development strategies in raising program 

3 quality and improving child outcomes; and 

4 (C) disseminate relevant research findings 

5 and best practices. 

6 SEC. 406. REPORTING REQUIREMENTS. 

7 (a) REPORTS TO CONGRESS.—For each year in which 

8 funding is provided under this title, the Secretary shall 

9 submit an annual report to the Congress on the activities 

10 carried out under this title, including, at a minimum, in11 formation on the following: 

12 (1) The activities undertaken by States to in13 crease the availability of high-quality early learning 

14 programs. 

15 (2) The number of children in high-quality 

16 early learning programs, and the change from the 

17 prior year, disaggregated by State, age, and race. 

18 (3) The number of early learning providers en19 rolled, with assistance from funds under this title, in 

20 a program to obtain a credential or degree in early 

21 childhood education and the settings in which such 

22 providers work. 

23 (4) A summary of State progress in imple24 menting a system of early learning with the compo25 nents described in section 403(c)(3). 


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1 (5) A summary of the research activities being 

2 conducted under section 405 and the findings of 

3 such research. 

4 (b) REPORTS TO SECRETARY.—Each State that re5 ceives a grant under this title shall submit to the Secretary 

6 an annual report that includes, at a minimum, information 

7 on the activities carried out by the State under this title, 

8 including the following: 

9 (1) The progress on fully implementing and in10 tegrating into a system of early learning each of the 

11 components described in section 403(c)(3). 

12 (2) The State’s progress in meeting its goals 

13 for increasing the number of disadvantaged children 

14 participating in high-quality early learning pro15 grams, disaggregated by child age. 

16 (3) The number and percentage of disadvan17 taged children participating in early learning pro18 grams at each level of quality, disaggregated by 

19 race, family income, child age, disability, and limited 

20 English proficiency status. 

21 (4) The number of providers participating in 

22 the State quality rating system, disaggregated by 

23 setting, rating, and the number of high-quality pro24 viders available in low-income communities. 


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1 (5) Information on how the funds provided 

2 under this title were used to increase the availability 

3 of high-quality early learning programs for each age 

4 group. 

5 (6) Information on professional development 

6 and training expenditures, including— 

7 (A) the number of early learning providers 

8 engaged in such activities; and 

9 (B) the number of early learning providers 

10 enrolled in programs to obtain a credential or 

11 degree in early childhood education, 

12 disaggregated by the type of credential and de13 gree. 

14 (7) The change in the number and percentage 

15 of early learning providers with appropriate creden16 tial or degrees in early childhood education in com17 parison to the prior fiscal year, disaggregated by 

18 early learning setting. 

19 (8) In the case of a State receiving a grant 

20 under section 402(a), the percentage of children re21 ceiving assistance under the Child Care and Devel22 opment Block Grant Act of 1990 (42 U.S.C. 9858 

23 et seq.) who participate in the highest quality early 

24 learning programs, disaggregated by program set25 ting and child age. 


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1 SEC. 407. CONSTRUCTION. 

2 Nothing in this title— 

3 (1) shall be construed to require a child to par4 ticipate in an early learning program; or 

5 (2) shall be used to deny entry to kindergarten 

6 for any individual if the individual is legally eligible, 

7 as defined by State or local law. 

8 SEC. 408. DEFINITIONS. 

9 For purposes of this title: 

10 (1) CHILD.—The term ‘‘child’’ refers to an in11 dividual from birth through the day the individual 

12 enters kindergarten. 

13 (2) DISADVANTAGED.—The term ‘‘disadvan14 taged’’, when used with respect to a child, means a 

15 child whose family income is described in section 

16 658P(4)(B) of the Child Care and Development 

17 Block Grant Act of 1990 (42 U.S.C. 9858n(4)(B)). 

18 (3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

19 means any tribe, band, nation, pueblo, or other orga20 nized group or community of Indians, including any 

21 Native village described in section 3(c) of the Alaska 

22 Native Claims Settlement Act (43 U.S.C. 1602(c)) 

23 or established pursuant to such Act (43 U.S.C. 1601 

24 et seq.), that is recognized as eligible for the special 

25 programs and services provided by the United States 

26 to Indians because of their status as Indians. 


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1 (4) LIMITED ENGLISH PROFICIENT.—The term 

2 ‘‘limited English proficient’’ has the meaning given 

3 such term in section 637 of the Head Start Act (42 

4 U.S.C. 9832). 

5 (5) SECRETARY.—The term ‘‘Secretary’’ means 

6 the Secretary of Education. 

7 (6) STATE.—The term ‘‘State’’ has the mean8 ing given such term in section 9101 of the Elemen9 tary and Secondary Education Act of 1965 (20 

10 U.S.C. 7801). 

11 SEC. 409. AVAILABILITY OF FUNDS. 

12 There are authorized to be appropriated, and there 

13 are appropriated, to carry out this title (in addition to any 

14 other amounts appropriated to carry out this title and out 

15 of any money in the Treasury not otherwise appropriated) 

16 $1,000,000,000 for each of fiscal years 2010 through 

17 2019. 

18 TITLE V—COMMUNITY COLLEGE 

19 INITIATIVE 

20 SEC. 501. AUTHORIZATION AND APPROPRIATION. 

21 (a) AUTHORIZATION AND APPROPRIATION.—There 

22 are authorized to be appropriated, and there are appro23 priated, to carry out this title (in addition to any other 

24 amounts appropriated to carry out this title and out of 

25 any money in the Treasury not otherwise appropriated), 


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1 $730,000,000 for each of the fiscal years 2010 through 

2 2013, and $680,000,000 for each of the fiscal years 2014 

3 through 2019. 

4 (b) ALLOCATIONS.—Of the amount appropriated 

5 under subsection (a)— 

6 (1) $630,000,000 shall be made available for 

7 each of the fiscal years 2010 through 2013 to carry 

8 out section 503; 

9 (2) $630,000,000 shall be made available for 

10 each of the fiscal years 2014 through 2019 to carry 

11 out section 504; 

12 (3) $50,000,000 shall be made available for 

13 each of the fiscal years 2010 through 2019 to carry 

14 out subsection (a) of section 505; and 

15 (4) $50,000,000 shall be made available for 

16 each of the fiscal years 2010 through 2013 to carry 

17 out subsections (b) and (c) of section 505. 

18 SEC. 502. DEFINITIONS. 

19 In this title: 

20 (1) AREA CAREER AND TECHNICAL EDUCATION

21 SCHOOL.—The term ‘‘area career and technical edu22 cation school’’ has the meaning given such term in 

23 section 3 of the Carl D. Perkins Career and Tech24 nical Education Act of 2006 (20 U.S.C. 2302). 


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1 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti2 ty’’ means— 

3 (A) a junior or community college or com4 munity college district; 

5 (B) an area career and technical education 

6 school; 

7 (C) a public four-year institution of higher 

8 education that offers two-year degrees; 

9 (D) a public four-year institution of higher 

10 education that is in partnership with an eligible 

11 entity described in subparagraph (A), (B), or 

12 (C); 

13 (E) a State that— 

14 (i) is in compliance with section 137 

15 of the Higher Education Act of 1965 (20 

16 U.S.C. 1015f); 

17 (ii) has an articulation agreement 

18 pursuant to section 486A of such Act (20 

19 U.S.C. 1093a); and 

20 (iii) is in partnership with an eligible 

21 entity described in subparagraph (A), (B), 

22 (C), or (D); or 

23 (F) a consortium of at least 2 entities de24 scribed in subparagraphs (A) through (E). 


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1 (3) INSTITUTION OF HIGHER EDUCATION.—The 

2 term ‘‘institution of higher education’’ has the 

3 meaning given such term in section 101 of the High4 er Education Act of 1965 (20 U.S.C. 1001). 

5 (4) JUNIOR OR COMMUNITY COLLEGE.—The 

6 term ‘‘junior or community college’’ has the meaning 

7 given such term in section 312(f) of the Higher 

8 Education Act of 1965 (20 U.S.C. 1058(f)). 

9 (5) PHILANTHROPIC ORGANIZATION.—The term 

10 ‘‘philanthropic organization’’ has the meaning given 

11 such term in section 781 of the Higher Education 

12 Act of 1965 (20 U.S.C. 1141). 

13 (6) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of Education. 

15 (7) STATE.—The term ‘‘State’’ has the mean16 ing given such term in section 103 of the Higher 

17 Education Act of 1965 (20 U.S.C. 1003). 

18 (8) STATE PUBLIC EMPLOYMENT SERVICE.— 

19 The term ‘‘State public employment service’’ refers 

20 to a State public employment service established 

21 under the Wagner-Peyser Act (29 U.S.C. 49 et 

22 seq.). 

23 (9) STATE WORKFORCE INVESTMENT BOARD; 

24 LOCAL WORKFORCE INVESTMENT BOARD.—The 

25 terms ‘‘State workforce investment board’’ and 


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1 ‘‘local workforce investment board’’ refer to a State 

2 workforce investment board established under sec3 tion 111 of the Workforce Investment Act (20 

4 U.S.C. 2821) and a local workforce investment 

5 board established under section 117 of such Act (20 

6 U.S.C. 2832), respectively. 

7 (10) SUPPORTIVE SERVICES.—The term ‘‘sup8 portive services’’ has the meaning given such term in 

9 section 101(46) of the Workforce Investment Act of 

10 1998 (20 U.S.C. 2801(46)). 

11 SEC. 503. GRANTS TO ELIGIBLE ENTITIES FOR COMMUNITY 

12 COLLEGE REFORM. 

13 (a) PROGRAM AUTHORIZATION.— 

14 (1) GRANTS AUTHORIZED.— 

15 (A) IN GENERAL.—Subject to paragraph 

16 (2), from the amount appropriated to carry out 

17 this section, the Secretary, in coordination with 

18 the Secretary of Labor, shall award grants to 

19 eligible entities, on a competitive basis, to es20 tablish and support programs described in sub21 paragraph (B) at eligible entities described in 

22 subparagraphs (A) through (D) of section 

23 502(2). 

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1 paragraph (A) (and carried out through activi2 ties described in subsection (f)) shall be pro3 grams— 

4 (i) that are— 

5 (I) innovative programs; or 

6 (II) programs of demonstrated 

7 effectiveness, based on the evaluations 

8 of similar programs funded by the De9 partment of Education or the Depart10 ment of Labor, or other research of 

11 similar programs; and 

12 (ii) that lead to the completion of a 

13 postsecondary degree, certificate, or indus14 try-recognized credential leading to a 

15 skilled occupation in a high-demand indus16 try. 

17 (2) LIMITATION.—For each fiscal year for 

18 which funds are appropriated to carry out this sec19 tion, the aggregate amount of the grants awarded to 

20 eligible entities that are States, or consortia that in21 clude a State, shall be not more than 50 percent of 

22 the total amount appropriated under section 

23 501(b)(1) for such fiscal year. 

24 (3) INTERAGENCY AGREEMENT.—The Secretary 

25 and the Secretary of Labor shall jointly administer 


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1 this section on such terms as such Secretaries shall 

2 set forth in an interagency agreement. Such agree3 ment shall ensure compliance with applicable law 

4 and administrative requirements. 

5 (4) PROHIBITION.—The Secretary shall not 

6 award a grant to an eligible entity for the same ac7 tivities that are being fully supported by other Fed8 eral funds. 

9 (b) GRANT DURATION AND AMOUNT.— 

10 (1) DURATION.—A grant under this section 

11 shall be awarded to an eligible entity for a 4-year pe12 riod, except that if the Secretary determines that the 

13 eligible entity has not made demonstrable progress 

14 in achieving the benchmarks developed pursuant to 

15 subsection (g) by the third year of such grant pe16 riod, no further grant funds shall be made available 

17 to the entity after the date of such determination. 

18 (2) AMOUNT.—The minimum amount of a 

19 grant award under this section shall be $1,000,000. 

20 (c) PRIORITY.—In awarding grants under this sec21 tion, the Secretary shall give priority to eligible entities 

22 that enter into partnerships with— 

23 (1) philanthropic or research organizations with 

24 expertise in meeting the goals of this section; or 

25 (2) businesses that— 


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1 (A) design and implement programs de2 scribed in subsection (a)(1)(B); 

3 (B) pay a portion of the costs of such pro4 grams; and 

5 (C) agree to collaborate with one or more 

6 eligible entities to hire individuals who have 

7 completed a particular postsecondary degree, 

8 certificate, or credential program. 

9 (d) FEDERAL AND NON-FEDERAL SHARE; SUPPLE10 MENT, NOT SUPPLANT.— 

11 (1) FEDERAL SHARE.—The amount of the Fed12 eral share under this section for a fiscal year shall 

be not greater than 1 13 ⁄2 of the costs of the programs, 

14 services, and policies described in subsection (f) that 

15 are carried out under the grant. 

16 (2) NON-FEDERAL SHARE.— 

17 (A) IN GENERAL.—The amount of the 

18 non-Federal share under this section for a fiscal 

year shall be not less than 1 19 ⁄2 of the costs of the 

20 programs, services, and policies described in 

21 subsection (f) that are carried out under the 

22 grant. The non-Federal share may be in cash or 

23 in kind, and may be provided from State re24 sources, local resources, contributions from pri25 vate organizations, or a combination thereof. 


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1 (B) FINANCIAL HARDSHIP WAIVER.—The 

2 Secretary may waive or reduce the non-Federal 

3 share of an eligible entity that has submitted an 

4 application under this section if the entity dem5 onstrates a need for such waiver or reduction 

6 due to extreme financial hardship, as defined by 

7 the Secretary by regulation. 

8 (3) SUPPLEMENT, NOT SUPPLANT.—The Fed9 eral and non-Federal shares required by this section 

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

11 and private resources that would otherwise be ex12 pended to establish and support programs described 

13 in subsection (a)(1)(B) at eligible entities. 

14 (e) APPLICATION.—An eligible entity seeking to re15 ceive a grant under this section shall submit to the Sec16 retary an application at such time, in such manner, and 

17 containing such information as the Secretary may require. 

18 Such application shall describe the programs under sub19 section (a)(1)(B) that the eligible entity will carry out 

20 using the grant funds, (including the programs, services, 

21 and policies under subsection (f)), including— 

22 (1) the goals of such programs, services, and 

23 policies; 

24 (2) how the eligible entity will allocate grant 

25 funds for such programs, services, and policies; 


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1 (3) how such programs, services, and policies, 

2 and the resources of the eligible entity, will enable 

3 the eligible entity to meet the benchmarks developed 

4 pursuant to subsection (g), and how the eligible enti5 ty will track and report the entity’s progress in 

6 reaching such benchmarks; 

7 (4) how the eligible entity will use such pro8 grams, services, and policies to establish quantifiable 

9 targets for improving graduation rates and employ10 ment-related outcomes; 

11 (5) how the eligible entity will serve high-need 

12 populations through such programs, services, and 

13 policies; 

14 (6) how the eligible entity will partner with the 

15 State public employment service and State or local 

16 workforce investment boards in carrying out such 

17 programs, services, and policies; 

18 (7) how the eligible entity will share informa19 tion with the Learning and Earning Center estab20 lished under section 505; 

21 (8) how the eligible entity will participate in the 

22 rigorous evaluation of such programs, services, and 

23 policies under subsection (i); and 


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1 (9) the potential for such programs, services, 

2 and policies to be replicated at other institutions of 

3 higher education. 

4 (f) USES OF FUNDS.—An eligible entity receiving a 

5 grant under this section shall use the grant funds to carry 

6 out the programs described in subsection (a)(1)(B), which 

7 shall include at least 2 of the following activities: 

8 (1) Developing and implementing policies and 

9 programs to expand opportunities for students at eli10 gible entities described in subparagraphs (A) 

11 through (D) of section 502(2) to earn bachelor’s de12 grees by— 

13 (A) facilitating the transfer of academic 

14 credits between institutions of higher education, 

15 including the transfer of academic credits for 

16 courses in the same field of study; and 

17 (B) expanding articulation agreements and 

18 guaranteed transfer agreements between such 

19 institutions, including through common course 

20 numbering and general core curriculum. 

21 (2) Expanding, enhancing, or creating academic 

22 programs or training programs, which may be car23 ried out in partnership with employers, that provide 

24 relevant job-skill training (including apprenticeships 


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1 and worksite learning and training opportunities) for 

2 high-wage occupations in high-demand industries. 

3 (3) Providing student support services, includ4 ing— 

5 (A) intensive career and academic advising; 

6 (B) labor market information and job 

7 counseling; and 

8 (C) assistance in connecting students with 

9 community resources, transitional job support, 

10 or supportive services. 

11 (4) Creating workforce programs that provide a 

12 sequence of education and occupational training that 

13 lead to industry-recognized credentials, including 

14 programs that— 

15 (A) blend basic skills and occupational 

16 training that lead to industry-recognized cre17 dentials; 

18 (B) integrate developmental education cur19 ricula and instruction with for-credit 

20 coursework toward degree or certificate path21 ways; or 

22 (C) advance individuals on a career path 

23 toward high-wage occupations in high-demand 

24 industries. 


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1 (5) Building or enhancing linkages, including 

2 the development of dual enrollment programs and 

3 early college high schools between— 

4 (A) secondary education or adult education 

5 programs (including programs established 

6 under the Carl D. Perkins Career and Tech7 nical Education Act of 2006 and title II of the 

8 Workforce Investment Act (20 U.S.C. 9201 et 

9 seq.)); and 

10 (B) eligible entities described in subpara11 graphs (A) through (D) of section 502(2). 

12 (6) Implementing other innovative programs, 

13 services, and policies designed to— 

14 (A) increase postsecondary degree, certifi15 cate, and industry-recognized credential comple16 tion rates, particularly with respect to groups 

17 underrepresented in higher education, at eligible 

18 entities described in subparagraphs (A) through 

19 (D) of section 502(2); and 

20 (B) increase the provision of training for 

21 students to enter high-wage occupations in 

22 high-demand industries. 

23 (g) BENCHMARKS.— 

24 (1) IN GENERAL.—Each eligible entity receiving 

25 a grant under this section shall develop quantifiable 


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1 benchmarks on the following indicators (where appli2 cable), to be approved by the Secretary: 

3 (A) Closing gaps in enrollment and com4 pletion rates for— 

5 (i) groups underrepresented in higher 

6 education; and 

7 (ii) groups of students enrolled at the 

8 eligible entity (or at an institution of high9 er education under the jurisdiction of the 

10 eligible entity, in the case of an entity that 

11 is not an institution) who have the lowest 

12 enrollment and completion rates. 

13 (B) Addressing local and regional work14 force needs. 

15 (C) Establishing articulation agreements 

16 between two-year and four-year public institu17 tions of higher education within a State. 

18 (D) Improving comprehensive employment 

19 and educational outcomes for postsecondary 

20 education and training programs, including— 

21 (i) student persistence from one aca22 demic year to the following academic year; 

23 (ii) the number of credits students 

24 earn toward a certificate or an associate’s 

25 degree; 


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1 (iii) number of students in develop2 mental education courses who subsequently 

3 enroll in credit bearing coursework; 

4 (iv) transfer of general education 

5 credits between institutions of higher edu6 cation, as applicable; 

7 (v) completion of industry-recognized 

8 credentials or associate’s degrees to work 

9 in high-wage occupations in high-demand 

10 industries; 

11 (vi) transfers to four-year institutions 

12 of higher education; and 

13 (vii) job placement related to skills 

14 training or associate’s degree completion. 

15 (2) REPORT.—The eligible entity receiving such 

16 a grant shall annually measure and report to the 

17 Secretary progress in achieving the benchmarks de18 veloped pursuant to paragraph (1). 

19 (h) PROVISION OF TRANSFER OF CREDIT INFORMA20 TION IN COMMUNITY COLLEGE COURSE SCHEDULES.— 

21 To the maximum extent practicable, each junior or com22 munity college receiving a grant under this section shall 

23 include in each electronic and printed publication of the 

24 college’s course schedule, in a manner of the college’s 

25 choosing, for each course listed in the college’s course 


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1 schedule, whether such course is transferable for credit to2 ward the completion of a 4-year baccalaureate degree at 

3 a public institution of higher education in the State in 

4 which the college is located. 

5 (i) EVALUATION.—The Secretary shall allocate not 

6 more than two percent of the funds appropriated under 

7 section 501(b)(1) to the Institute of Education Sciences 

8 to conduct a rigorous evaluation, ending not later than 

9 January 30, 2014, that— 

10 (1) assesses the effectiveness of the grant pro11 grams carried out by each eligible entity receiving 

12 such a grant in— 

13 (A) improving postsecondary education 

14 completion rates (disaggregated by age, race, 

15 ethnicity, gender, income, and disability); 

16 (B) improving employment-related out17 comes for students served by such programs; 

18 (C) serving high-need populations; and 

19 (D) building or enhancing working part20 nerships with State or local workforce invest21 ment boards; and 

22 (2) includes any other information or assess23 ments the Secretary may require. 

24 (j) REPORT.—The Secretary shall submit to the 

25 Committee on Health, Education, Labor, and Pensions of 


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1 the Senate and the Committee on Education and Labor 

2 of the House of Representatives an annual report on 

3 grants awarded under this section, including— 

4 (1) the amount awarded to each eligible entity 

5 under this section; 

6 (2) a description of the activities conducted by 

7 each eligible entity receiving a grant under this sec8 tion; and 

9 (3) a summary of the results of the evaluations 

10 submitted to the Secretary under subsection (i) and 

11 the progress each eligible entity made toward achiev12 ing the benchmarks developed under subsection (g). 

13 SEC. 504. GRANTS TO ELIGIBLE STATES FOR COMMUNITY 

14 COLLEGE PROGRAMS. 

15 (a) PROGRAM AUTHORIZATION.—From the amount 

16 appropriated to carry out this section, the Secretary, in 

17 coordination with the Secretary of Labor, shall award 

18 grants to eligible States, on a competitive basis, to imple19 ment the systematic reform of junior and community col20 leges located in the State by carrying out programs, serv21 ices, and policies that demonstrated effectiveness under 

22 the evaluation described in section 503(i). 

23 (b) ELIGIBLE STATE.—In this section, the term ‘‘eli24 gible State’’ means a State that demonstrates to the SecVerDate Nov 24 2008 02:20 Jul 16, 2009 Jkt 079200 PO 00000 Frm 00172 Fmt 6652 Sfmt 6201 E:\BILLS\H3221.IH H3221

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1 retary in the application submitted pursuant to subsection 

2 (e) that the State— 

3 (1) has a plan under section 782 of the Higher 

4 Education Act of 1965 to increase the State’s rate 

5 of persistence in and completion of postsecondary 

6 education that takes into consideration and involves 

7 junior and community colleges located in such State; 

8 (2) has a statewide longitudinal data system 

9 that includes data with respect to junior or commu10 nity colleges; 

11 (3) has an articulation agreement pursuant to 

12 section 486A of the Higher Education Act of 1965 

13 (20 U.S.C. 1093a); 

14 (4) is in compliance with section 137 of such 

15 Act (20 U.S.C. 1015f); and 

16 (5) meets any other requirements the Secretary 

17 may require. 

18 (c) GRANT DURATION; RENEWAL.—A grant awarded 

19 under this section shall be awarded to an eligible State 

20 for a 6-year period, except that if the Secretary determines 

21 that the eligible State has not made demonstrable progress 

22 in achieving the benchmarks developed pursuant to sub23 section (g) by the third year of the grant period, no fur24 ther grant funds shall be made available to the entity after 

25 the date of such determination. 


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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 reform de6 scribed in subsection (f) that is carried out with the 

7 grant. 

8 (2) NON-FEDERAL SHARE.— 

9 (A) IN GENERAL.—The amount of the 

10 Non-Federal share under this section for a fiscal year shall be not less than 1 11 ⁄2 of the costs 

12 of the reform described in subsection (f) that is 

13 carried out with the grant. The non-Federal 

14 share may be in cash or in-kind, and may be 

15 provided from State resources, local resources, 

16 contributions from private organizations, or a 

17 combination thereof. 

18 (B) FINANCIAL HARDSHIP WAIVER.—The 

19 Secretary may waive or reduce the non-Federal 

20 share of an eligible State that has submitted an 

21 application under this section if the State dem22 onstrates a need for such waiver or reduction 

23 due to extreme financial hardship, as defined by 

24 the Secretary by regulation. 


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1 (3) SUPPLEMENT, NOT SUPPLANT.—The Fed2 eral and non-Federal share required by this section 

3 shall be used to supplement, and not supplant, 

4 State, and private resources that would otherwise be 

5 expended to carry out the systematic reform of jun6 ior or community colleges in a State. 

7 (e) APPLICATION.—An eligible State desiring to re8 ceive a grant under this section shall submit to the Sec9 retary an application at such time, in such manner, and 

10 containing such information as the Secretary may require. 

11 Such application shall describe the programs, service, and 

12 policies to be used by the State to achieve the systematic 

13 reform described 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; 

18 (3) how such programs, services, and policies 

19 will enable the State to meet the benchmarks devel20 oped pursuant to subsection (g), and how the State 

21 will track and report the State’s progress in reach22 ing such benchmarks; 

23 (4) how the State will use such programs, serv24 ices, and policies to establish quantifiable targets for 


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1 improving graduation rates and employment-related 

2 outcomes; 

3 (5) how the State will serve high-need popu4 lations through such programs, services, and poli5 cies; 

6 (6) how the State will partner with the State 

7 public employment service and State or local work8 force investment boards in carrying out such pro9 grams, services, and policies; and 

10 (7) how the State will rigorously evaluate such 

11 programs, services, and policies, which may include 

12 participation in national evaluations. 

13 (f) USES OF FUNDS.—An eligible State receiving a 

14 grant under this section shall use the grant funds to im15 plement the systematic reform of junior and community 

16 colleges located in the State by carrying out programs, 

17 services, and policies that demonstrated effectiveness 

18 under the evaluation described in section 503(i). 

19 (g) BENCHMARKS.— 

20 (1) IN GENERAL.—Each eligible State receiving 

21 a grant under this section shall, in consultation with 

22 the Secretary, develop quantifiable benchmarks on 

23 the indicators identified in section 503(f)(1). 

24 (2) PROGRESS.—An eligible State receiving 

25 such a grant shall annually measure and report to 


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1 the Secretary progress in achieving the benchmarks 

2 developed pursuant to paragraph (1). 

3 (h) REPORT.— 

4 (1) REPORTS TO THE SECRETARY.—Each eligi5 ble State receiving a grant under this section shall 

6 annually submit to the Secretary and the Secretary 

7 of Labor a report on such grant, including— 

8 (A) a description of the systematic reform 

9 carried out by the State using such grant; and 

10 (B) the outcome of such reform, including 

11 the State’s progress in achieving the bench12 marks developed under subsection (g). 

13 (2) REPORTS TO CONGRESS.—Not later than 6 

14 months after the end of the grant period, the Sec15 retary shall submit to the Committee on Health, 

16 Education, Labor, and Pensions of the Senate and 

17 the Committee on Education and Labor of the 

18 House of Representatives a summary of the reports 

19 submitted under paragraph (1) with respect to such 

20 grant period. 

21 SEC. 505. NATIONAL ACTIVITIES. 

22 (a) OPEN ONLINE EDUCATION.—From the amount 

23 appropriated to carry out this section, the Secretary is au24 thorized to make competitive grants to, or enter into con25 tracts with, institutions of higher education, philanthropic 


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1 organizations, and other appropriate entities to develop, 

2 evaluate, and disseminate free high-quality online training, 

3 high school courses, and postsecondary education courses. 

4 (b) LEARNING AND EARNING RESEARCH CENTER.— 

5 (1) IN GENERAL.—From the amount appro6 priated to carry out this section, the Secretary is au7 thorized to award a grant to, or enter into a con8 tract with, a nonprofit organization with dem9 onstrated expertise in the research and evaluation of 

10 junior or community colleges to establish and oper11 ate the Learning and Earning Research Center (in 

12 this section referred to as the ‘‘Center’’). 

13 (2) GRANT TERM.—The grant or contract 

14 awarded under this section shall be awarded for a 

15 period of not more than 4 years. 

16 (3) BOARD.—The Center shall be comprised of 

17 an independent board of 9 individuals who— 

18 (A) are appointed by the Secretary, based 

19 on recommendations from the nonprofit organi20 zation receiving the grant or contract under 

21 this section; and 

22 (B) who have demonstrated expertise in— 

23 (i) data collection; 

24 (ii) data analysis; and 


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1 (iii) econometrics, postsecondary edu2 cation, and workforce development re3 search. 

4 (4) CENTER ACTIVITIES.—The Center shall— 

5 (A) develop— 

6 (i) peer-reviewed metrics to help con7 sumers make sound education and training 

8 choices, and to help students, workers, 

9 schools, businesses, researchers, and pol10 icymakers assess the effectiveness of junior 

11 or community colleges, and courses of 

12 study at such colleges, in meeting edu13 cation and employment objectives and serv14 ing groups that are underrepresented in 

15 postsecondary education; 

16 (ii) standardized data elements, defi17 nitions, and data-sharing protocols to 

18 make it possible for data systems related 

19 to postsecondary education to be linked 

20 and interoperable, and for best practices to 

21 be shared among States; 

22 (iii) standards and processes for facili23 tating sharing of data in a manner that 

24 safeguards student privacy; and 


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1 (iv) common metrics and data ele2 ments to measure the education and em3 ployment outcomes of students attending 

4 junior or community colleges; 

5 (B) develop and make widely available ma6 terials analyzing best practices and research on 

7 successful postsecondary education and training 

8 efforts; 

9 (C) make the data and metrics developed 

10 pursuant to subparagraph (A) available to the 

11 public in a transparent, user-friendly format; 

12 and 

13 (D) consult with representatives from 

14 States with respect to the activities of the Cen15 ter. 

16 (c) STATE SYSTEMS.— 

17 (1) IN GENERAL.—From the amount appro18 priated to carry out this section, the Secretary is au19 thorized to award grants to States to establish coop20 erative agreements among States to develop, imple21 ment, and expand longitudinal data systems that 

22 collect, maintain, disaggregate (by income, race, eth23 nicity, gender, disability, and age), and analyze stu24 dent data from junior and community colleges, in25 cluding data on the programs of study and eduVerDate Nov 24 2008 02:20 Jul 16, 2009 Jkt 079200 PO 00000 Frm 00180 Fmt 6652 Sfmt 6201 E:\BILLS\H3221.IH H3221

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1 cation and employment outcomes for particular stu2 dents, tracked over time. 

3 (2) SUPPLEMENT, NOT SUPPLANT.—Funds ap4 propriated to carry out this subsection shall be used 

5 to supplement, and not supplant, other Federal and 

6 State resources that would otherwise be expended to 

7 carry out statewide longitudinal data systems, in8 cluding funding appropriated for State Longitudinal 

9 Data Systems in the American Recovery and Rein10 vestment Act of 2009 (26 U.S.C. 1). 

11 (d) REPORT.—The Secretary shall submit to the 

12 Committee on Health, Education, Labor, and Pensions of 

13 the Senate and the Committee on Education and Labor 

14 of the House of Representatives an annual report on the 

15 amounts awarded to entities receiving grants or contracts 

16 under this section, and the activities carried out by such 

17 entities under such grants and contracts. 

Æ 


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