111TH CONGRESS 

1ST SESSION H. R. 3221 

AN ACT 

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, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Student Aid and Fiscal 

3 Responsibility Act of 2009’’. 

4 SEC. 2. TABLE OF CONTENTS. 

5 The table of contents is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. References. 

Sec. 4. Prohibition on earmarks. 

Sec. 5. Use of savings for debt reduction. 

TITLE I—INVESTING IN STUDENTS AND FAMILIES 

Subtitle A—Increasing College Access and Completion 

Sec. 101. Federal Pell Grants. 

Sec. 102. College Access and Completion Innovation Fund. 

Sec. 103. Investment in historically Black colleges and universities and other 

minority-serving institutions. 

Sec. 104. Investment in cooperative education. 

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

Sec. 106. Veterans Resource Officer Grants. 

Sec. 107. Officer Daniel Faulkner Children of Fallen Heroes Scholarship. 

Sec. 108. Teacher Excellence. 

Subtitle B—Student Financial Aid Form Simplification 

Sec. 121. General effective date. 

Sec. 122. Treatment of assets in need analysis. 

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

TITLE II—STUDENT LOAN REFORM 

Subtitle A—Stafford Loan Reform 

Sec. 201. Federal Family Education Loan appropriations. 

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

Sec. 203. Applicable interest rates. 

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

Sec. 205. Federal PLUS Loans. 

Sec. 206. Federal Consolidation Loan. 

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

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

Sec. 209. Special allowances. 

Sec. 210. Revised special allowance calculation. 

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

States. 

Sec. 212. Agreements with institutions. 

Sec. 213. Terms and conditions of loans. 

Sec. 214. Contracts. 

Sec. 215. Interest rates. 
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Sec. 216. Technical assistance to institutions of higher education. 

Sec. 217. Outreach Efforts. 

Subtitle B—Perkins Loan Reform 

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

Sec. 222. Authorization of appropriations. 

Sec. 223. Allocation of funds. 

Sec. 224. Federal Direct Perkins Loan allocation. 

Sec. 225. Agreements with institutions of higher education. 

Sec. 226. Student loan information by eligible institutions. 

Sec. 227. Terms of loans. 

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

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

Sec. 230. Administrative expenses. 

TITLE III—MODERNIZATION, RENOVATION, AND REPAIR 

Subtitle A—Elementary and Secondary Education 

Sec. 301. Definitions. 

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

PUBLIC SCHOOL FACILITIES

Sec. 311. Purpose. 

Sec. 312. Allocation of funds. 

Sec. 313. Allowable uses of funds. 

Sec. 314. Priority projects. 

CHAPTER 2—SUPPLEMENTAL GRANTS FOR LOUISIANA, MISSISSIPPI, AND

ALABAMA

Sec. 321. Purpose. 

Sec. 322. Allocation to local educational agencies. 

Sec. 323. Allowable uses of funds. 

CHAPTER 3—GENERAL PROVISIONS

Sec. 331. Impermissible uses of funds. 

Sec. 332. Supplement, not supplant. 

Sec. 333. Prohibition regarding State aid. 

Sec. 334. Maintenance of effort. 

Sec. 335. Special rule on contracting. 

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

Sec. 337. Labor standards. 

Sec. 338. Charter schools. 

Sec. 339. Green schools. 

Sec. 340. Reporting. 

Sec. 341. Special rules. 

Sec. 342. Promotion of employment experiences. 

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

Sec. 344. Education regarding projects. 

Sec. 345. Availability of funds. 

Subtitle B—Higher Education 
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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—AMERICAN GRADUATION INITIATIVE 

Sec. 501. Authorization and appropriation. 

Sec. 502. Definitions; grant priority. 

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

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

Sec. 505. National activities. 

TITLE VI—DEFUND ACORN ACT 

Sec. 601. Short title. 

Sec. 602. Prohibitions on Federal funds and other activities with respect to certain indicted organizations. 

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 SEC. 4. PROHIBITION ON EARMARKS. 

9 None of the funds appropriated pursuant to this Act 

10 may be used for a Congressional earmark as defined in 

11 clause 9(d) of rule XXI of the Rules of the House of Rep12 resentatives. 
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1 SEC. 5. USE OF SAVINGS FOR DEBT REDUCTION. 

2 All savings in Federal expenditures not otherwise ex3 pended as a result of the enactment of this Act shall be 

4 made available for the reduction of the Federal deficit. 

5 TITLE I—INVESTING IN 

6 STUDENTS AND FAMILIES 

7 Subtitle A—Increasing College 

8 Access and Completion 

9 SEC. 101. FEDERAL PELL GRANTS. 

10 (a) AMOUNT OF GRANTS.—Section 401(b) (20 

11 U.S.C. 1070a(b)) is amended— 

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

13 follows: 

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

15 Grant for a student eligible under this part 

16 shall be— 

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

18 as specified in the last enacted appropria19 tion Act applicable to that award year, 

20 plus 

21 ‘‘(ii) the amount of the increase cal22 culated under paragraph (8)(B) for that 

23 year, less 

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

25 determined to be the expected family con-
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1 tribution with respect to that student for 

2 that year.’’; and 

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

4 the Higher Education Opportunity Act (Public Law 

5 110–315), to read as follows: 

6 ‘‘(8) ADDITIONAL FUNDS.— 

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

8 to be appropriated, and there are appropriated, 

9 to carry out subparagraph (B) of this para10 graph (in addition to any other amounts appro11 priated to carry out this section and out of any 

12 money in the Treasury not otherwise appro13 priated) the following amounts— 

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

15 2008; 

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

17 2009; and 

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

19 for fiscal year 2010 and each subsequent 

20 fiscal year to provide the amount of in21 crease of the maximum Federal Pell Grant 

22 required by clauses (ii) and (iii) of sub23 paragraph (B). 

24 ‘‘(B) INCREASE IN FEDERAL PELL

25 GRANTS.—The amounts made available pursu-
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1 ant to subparagraph (A) shall be used to in2 crease the amount of the maximum Federal 

3 Pell Grant for which a student shall be eligible 

4 during an award year, as specified in the last 

5 enacted appropriation Act applicable to that 

6 award year, by— 

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

8 2008–2009 and 2009–2010; 

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

10 2011; and 

11 ‘‘(iii) the amount determined under 

12 subparagraph (C) for each succeeding 

13 award year. 

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

15 ‘‘(i) AWARD YEAR 2011–2012.—For 

16 award year 2011–2012, the amount deter17 mined under this subparagraph for pur18 poses of subparagraph (B)(iii) shall be 

19 equal to— 

20 ‘‘(I) $5,550 or the total max21 imum Federal Pell Grant for the pre22 ceding award year (as determined 

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

24 greater, increased by a percentage 

25 equal to the annual adjustment per-
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1 centage for award year 2011–2012; 

2 reduced by 

3 ‘‘(II) $4,860 or the maximum 

4 Federal Pell Grant for which a stu5 dent was eligible for the preceding 

6 award year, as specified in the last en7 acted appropriation Act applicable to 

8 that year, whichever is greater; and 

9 ‘‘(III) rounded to the nearest $5. 

10 ‘‘(ii) SUBSEQUENT AWARD YEARS.— 

11 For award year 2012–2013 and each of 

12 the subsequent award years, the amount 

13 determined under this subparagraph for 

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

15 equal to— 

16 ‘‘(I) the total maximum Federal 

17 Pell Grant for the preceding award 

18 year (as determined under clause 

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

20 equal to the annual adjustment per21 centage for the award year for which 

22 the amount under this subparagraph 

23 is being determined; reduced by 

24 ‘‘(II) $4,860 or the maximum 

25 Federal Pell Grant for which a stu-
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1 dent was eligible for the preceding 

2 award year, as specified in the last en3 acted appropriation Act applicable to 

4 that year, whichever is greater; and 

5 ‘‘(III) rounded to the nearest $5. 

6 ‘‘(iii) LIMITATION ON DECREASES.— 

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

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

9 for an award year is less than the amount 

10 determined under this paragraph for the 

11 preceding award year, the amount deter12 mined under such clause for such award 

13 year shall be the amount determined under 

14 this paragraph for the preceding award 

15 year. 

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

17 this subparagraph— 

18 ‘‘(I) the term ‘annual adjustment 

19 percentage’ as it applies to an award 

20 year is equal to the sum of— 

21 ‘‘(aa) the estimated percent22 age change in the Consumer 

23 Price Index (as determined by 

24 the Secretary, using the defini25 tion in section 478(f)) for the 
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1 most recent calendar year ending 

2 prior to the beginning of that 

3 award year; and 

4 ‘‘(bb) one percentage point; 

5 and 

6 ‘‘(II) the term ‘total maximum 

7 Federal Pell Grant’ as it applies to a 

8 preceding award year is equal to the 

9 sum of— 

10 ‘‘(aa) the maximum Federal 

11 Pell Grant for which a student is 

12 eligible during an award year, as 

13 specified in the last enacted ap14 propriation Act applicable to that 

15 preceding award year; and 

16 ‘‘(bb) the amount of the in17 crease in the maximum Federal 

18 Pell Grant required by this para19 graph for that preceding award 

20 year. 

21 ‘‘(D) PROGRAM REQUIREMENTS AND OP22 ERATIONS OTHERWISE UNAFFECTED.—Except 

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

24 nothing in this paragraph shall be construed to 

25 alter the requirements and operations of the 
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1 Federal Pell Grant Program as authorized 

2 under this section, or to authorize the imposi3 tion of additional requirements or operations 

4 for the determination and allocation of Federal 

5 Pell Grants under this section. 

6 ‘‘(E) AVAILABILITY OF FUNDS.—The 

7 amounts made available by subparagraph (A) 

8 for any fiscal year shall be available beginning 

9 on October 1 of that fiscal year, and shall re10 main available through September 30 of the 

11 succeeding fiscal year.’’. 

12 (b) MULTIPLE PELL GRANT AWARDS.—Section 

13 401(b)(5) (20 U.S.C. 1070a(b)(5)) is amended— 

14 (1) in subparagraph (A)— 

15 (A) by inserting ‘‘who is making satisfac16 tory academic progress according to the institu17 tion’s standards’’ after ‘‘award a student’’; and 

18 (B) by striking ‘‘to permit such student to 

19 accelerate the student’s progress toward a de20 gree or certificate’’ and inserting ‘‘to permit 

21 such student to accelerate the student’s gradua22 tion date, whether making full- or part-time 

23 progress toward a degree or certificate,’’; and 

24 (2) by adding at the end the following new sub25 paragraph: 
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1 (C) A student may not receive a combina2 tion of first and second scheduled award funds 

3 under this paragraph that exceeds the amount 

4 the student would otherwise be eligible to re5 ceive for the payment period. 

6 (c) CONFORMING AMENDMENTS.—Title IV (20 

7 U.S.C. 1070 et seq.) is further amended— 

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

9 Higher Education Opportunity Act (Public Law 

10 110–315), by striking ‘‘the grant level specified in 

11 the appropriate Appropriation Act for this subpart 

12 for such year’’ and inserting ‘‘the Federal Pell Grant 

13 amount, determined under paragraph (2)(A), for 

14 which a student is eligible during such award year’’; 

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

16 the maximum appropriated Pell Grant’’ and insert17 ing ‘‘exceed the Federal Pell Grant amount, deter18 mined under section 401(b)(2)(A), for which a stu19 dent is eligible’’; 

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

21 ‘‘one-half the maximum Federal Pell Grant award 

22 for which a student would be eligible’’ and inserting 

23 ‘‘one-half the Federal Pell Grant amount, deter24 mined under section 401(b)(2)(A), for which a stu25 dent would be eligible’’; 
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1 (4) in section 483(e)(3)(A)(ii), by striking 

2 ‘‘based on the maximum Federal Pell Grant award 

3 at the time of application’’ and inserting ‘‘based on 

4 the Federal Pell Grant amount, determined under 

5 section 401(b)(2)(A), for which a student is eligible 

6 at the time of application’’; 

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

8 such students’ potential eligibility for a maximum 

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

10 inserting ‘‘of such students’ potential eligibility for 

11 the Federal Pell Grant amount, determined under 

12 section 401(b)(2)(A), for which the student would be 

13 eligible’’; and 

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

15 ‘‘the maximum Federal Pell Grant for each award 

16 year’’ and inserting ‘‘the Federal Pell Grant 

17 amount, determined under section 401(b)(2)(A), for 

18 which a student may be eligible for each award 

19 year’’. 

20 (d) EFFECTIVE DATE.—The amendments made by 

21 subsections (a) and (c) of this section shall take effect on 

22 July 1, 2010. 
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1 SEC. 102. COLLEGE ACCESS AND COMPLETION INNOVA2 TION FUND. 

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

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

5 and inserting the following: 

6 ‘‘PART E—COLLEGE ACCESS AND COMPLETION 

7 INNOVATION FUND’’. 

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

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

10 the following: 

11 ‘‘SEC. 780. PURPOSES. 

12 ‘‘The purposes of this part are— 

13 ‘‘(1) to promote innovation in postsecondary 

14 education practices and policies by institutions of 

15 higher education, States, and nonprofit organiza16 tions to improve student success, completion, and 

17 post-completion employment, particularly for stu18 dents from groups that are underrepresented in 

19 postsecondary education; and 

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

21 data systems, common metrics, and reporting sys22 tems to enhance the quality and availability of infor23 mation about student success, completion, and post24 completion employment.’’. 

25 (c) AUTHORIZATION AND APPROPRIATION.—Section 

26 781(a) (20 U.S.C. 1141(a)) is amended to read as follows: 
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1 ‘‘(a) AUTHORIZATION AND APPROPRIATION.— 

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

3 appropriated, and there are appropriated, to carry 

4 out this part (in addition to any other amounts ap5 propriated to carry out this part and out of any 

6 money in the Treasury not otherwise appropriated), 

7 $600,000,000 for each of the fiscal years 2010 

8 through 2014. 

9 ‘‘(2) ALLOCATIONS.—Of the amount appro10 priated for any fiscal year under paragraph (1)— 

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

12 carry out section 781; 

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

14 carry out section 782; 

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

16 carry out section 783; and 

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

18 carry out section 784. 

19 ‘‘(3) EXPIRATION OF AUTHORITY.—The author20 ity to award grants under this part shall expire at 

21 the end of fiscal year 2014.’’. 

22 (d) STATE GRANTS AND GRANTS TO ELIGIBLE ENTI23 TIES.—Part E of title VII (20 U.S.C. 1141 et seq.) is 

24 further amended by adding at the end the following: 
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1 ‘‘SEC. 782. STATE INNOVATION COMPLETION GRANTS. 

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

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

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

5 competitive basis to promote student persistence in, and 

6 completion of, postsecondary education. 

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

8 ‘‘(1) FEDERAL SHARE.—The amount of the 

9 Federal share under this section for a fiscal year 

shall be equal to 2 10 ⁄3 of the costs of the activities and 

11 services described in subsection (d)(1) that are car12 ried out under the grant. 

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

14 the non-Federal share under this section shall be 

equal to 1 15 ⁄3 of the costs of the activities and services 

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

17 share may be in cash or in kind, and may be pro18 vided from State resources, contributions from pri19 vate organizations, or both. 

20 ‘‘(3) SUPPLEMENT, NOT SUPPLANT.—The Fed21 eral and non-Federal shares required by this para22 graph shall be used to supplement, and not sup23 plant, State and private resources that would other24 wise be expended to carry out activities and services 

25 to promote student persistence in and completion of 

26 postsecondary education. 
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1 ‘‘(c) APPLICATION AND SELECTION.— 

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

3 fiscal year for which a State desires to receive a 

4 grant under this section, the State agency with ju5 risdiction over higher education, or another agency 

6 designated by the Governor or chief executive of the 

7 State to administer the grant program under this 

8 section, shall submit an application to the Secretary 

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

10 information as the Secretary may require. Such ap11 plication shall include— 

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

13 to administer the grant under this section; 

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

15 using the grant funds for activities described in 

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

17 State will make special efforts to provide bene18 fits to students in the State who are from 

19 groups that are underrepresented in postsec20 ondary education; 

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

22 provide for the non-Federal share from State 

23 resources, private contributions, or both; 

24 ‘‘(D) a description of— 
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1 ‘‘(i) the administrative system that 

2 the State has in place to administer the ac3 tivities and services described in subsection 

4 (d)(1); or 

5 ‘‘(ii) the plan to develop such adminis6 trative system; 

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

8 State has or will have in place to measure the 

9 performance and progress toward the State’s 

10 goals included in the Access and Completion 

11 Plan submitted, or that will be submitted, 

12 under paragraph (2)(A); and 

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

14 ‘‘(2) STATE ASSURANCES.—The assurances re15 quired in paragraph (1)(F) shall include an assur16 ance of each of the following: 

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

18 than July 1, 2011, an Access and Completion 

19 Plan to increase the State’s rate of persistence 

20 in and completion of postsecondary education. 

21 Such plan shall include— 

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

23 quantifiable goals with respect to— 

24 ‘‘(I) the rates of postsecondary 

25 enrollment, persistence, and comple-
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1 tion, disaggregated by income, race, 

2 ethnicity, sex, disability, and age of 

3 students; 

4 ‘‘(II) closing gaps in enrollment, 

5 persistence, and completion rates for 

6 students from groups that are under7 represented in postsecondary edu8 cation; 

9 ‘‘(III) targeting education and 

10 training programs to address labor 

11 market needs in the State, as such 

12 needs are determined by the State, or 

13 the State in coordination with the 

14 State public employment service, the 

15 State workforce investment board, or 

16 industry or sector partnerships in the 

17 State; and 

18 ‘‘(IV) improving coordination be19 tween public two-year and public four20 year institutions of higher education 

21 in the State, including supporting 

22 comprehensive articulation agreements 

23 between such institutions in consulta24 tion with faculty from participating 

25 institutions; and 
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1 ‘‘(ii) the State’s plan to develop an 

2 interoperable statewide longitudinal data 

3 system that— 

4 ‘‘(I) can be linked to other data 

5 systems, as applicable, including ele6 mentary and secondary education and 

7 workforce data systems; 

8 ‘‘(II) will collect, maintain, 

9 disaggregate (by institution, income, 

10 race, ethnicity, sex, disability, and age 

11 of students), and analyze postsec12 ondary education and workforce infor13 mation, including— 

14 ‘‘(aa) postsecondary edu15 cation enrollment, persistence, 

16 and completion information; 

17 ‘‘(bb) post-completion em18 ployment outcomes of students 

19 who enrolled in postsecondary 

20 programs and training programs 

21 offered by eligible training pro22 viders under the Workforce In23 vestment Act of 1998 (29 U.S.C. 

24 2801 et seq.); 
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1 ‘‘(cc) postsecondary edu2 cation and employment outcomes 

3 of students who move out of the 

4 State; and 

5 ‘‘(dd) postsecondary instruc6 tional workforce information; and 

7 ‘‘(III) makes 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 practices that 

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

21 of, postsecondary education; 

22 ‘‘(iii) encourages State policies that 

23 are designed to improve rates of enroll24 ment and re-enrollment of dislocated work25 ers in postsecondary education; 
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1 ‘‘(iv) encourages the full use of State 

2 resources in support of financial literacy 

3 programs; 

4 ‘‘(v) considers the postsecondary edu5 cation needs of students from groups that 

6 are underrepresented in postsecondary 

7 education; and 

8 ‘‘(vi) provides for direct, equitable, 

9 and active participation in the comprehen10 sive planning or policy formulation process 

11 or processes, through membership on State 

12 planning commissions, State advisory 

13 councils, or other State entities established 

14 by the State and consistent with State law, 

15 by representatives of— 

16 ‘‘(I) institutions of higher edu17 cation, including at least one member 

18 from a junior or community college 

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

20 ‘‘(II) students; 

21 ‘‘(III) other providers of postsec22 ondary education services (including 

23 organizations providing access to such 

24 services); 
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1 ‘‘(IV) the general public in the 

2 State; and 

3 ‘‘(V) postsecondary education 

4 faculty members, including at least 

5 one faculty member whose primary re6 sponsibilities are teaching and schol7 arship. 

8 ‘‘(C) That the State will incorporate poli9 cies and practices that, through the activities 

10 funded under this section, are determined to be 

11 effective in improving rates of postsecondary 

12 education enrollment, persistence, and comple13 tion into the future postsecondary education 

14 policies and practices of the State to ensure 

15 that the benefits achieved through the activities 

16 funded under this section continue beyond the 

17 period of the grant. 

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

19 evaluation required under section 784. 

20 ‘‘(3) SUBGRANTS TO NONPROFIT ORGANIZA21 TIONS.— 

22 ‘‘(A) IN GENERAL.—A State receiving a 

23 payment under this section may elect to make 

24 a subgrant to one or more nonprofit organiza25 tions in the State, or a partnership of such or-
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1 ganizations, to carry out activities and services 

2 described in subsection (d)(1), if the nonprofit 

3 organization or partnership— 

4 ‘‘(i) was in existence on the day before 

5 the date of the enactment of the Student 

6 Aid and Fiscal Responsibility Act of 2009; 

7 and 

8 ‘‘(ii) as of such day, was participating 

9 in activities and services related to pro10 moting persistence in, and completion of, 

11 postsecondary education, such as the ac12 tivities and services described in subsection 

13 (d)(1). 

14 ‘‘(B) NONPROFIT ORGANIZATIONS.—For 

15 the purposes of this section, nonprofit organiza16 tions in a State include— 

17 ‘‘(i) agencies with agreements with 

18 the Secretary under subsections (b) and (c) 

19 of section 428 on the date of the enact20 ment of the Student Aid and Fiscal Re21 sponsibility Act of 2009; 

22 ‘‘(ii) nonprofit subsidiaries of agencies 

23 described in clause (i), if such subsidiaries 

24 were established, pursuant to the law of 
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1 such State, on or before January 1, 1998; 

2 and 

3 ‘‘(iii) eligible not-for-profit servicers, 

4 as defined in section 456(d), with an 

5 agreement with the Secretary under sub6 section (a)(3) of section 456, except that 

7 such a servicer shall only be eligible for a 

8 subgrant from the State for which the 

9 servicer is receiving an allocation under 

10 such agreement. 

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

12 section, the Secretary shall give priority to States 

13 that enter into a partnership with one of the fol14 lowing entities to carry out the activities and serv15 ices described in subsection (d)(1): 

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

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

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

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

20 section 428 on the date of the enactment of 

21 Student Aid and Fiscal Responsibility Act of 

22 2009. 

23 ‘‘(C) A nonprofit subsidiary of agencies de24 scribed in subparagraph (B), if such subsidiary 
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1 was established, pursuant to the law of such 

2 State, on or before January 1, 1998. 

3 ‘‘(d) USES OF FUNDS.— 

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

5 grant under this section shall use the grant funds 

6 to— 

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

8 increase persistence in, and completion of, post9 secondary education, which may include— 

10 ‘‘(i) assisting institutions of higher 

11 education in providing financial literacy, 

12 education, and counseling to enrolled stu13 dents; 

14 ‘‘(ii) assisting students enrolled in an 

15 institution of higher education to reduce 

16 the amount of loan debt incurred by such 

17 students; 

18 ‘‘(iii) providing loan counseling, loan 

19 delinquency, and default aversion assist20 ance to student loan borrowers and institu21 tions of higher education; 

22 ‘‘(iv) providing grants to students de23 scribed in section 415A(a)(1), in accord24 ance with the terms of that section; 
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1 ‘‘(v) carrying out the activities de2 scribed in section 415E(a), in accordance 

3 with such section; 

4 ‘‘(vi) assisting institutions of higher 

5 education institute programs of persistence 

6 focused on students at risk of not com7 pleting; and 

8 ‘‘(vii) programs to provide financial 

9 literacy education and counseling to ele10 mentary, secondary, and postsecondary 

11 students that include an examination of 

12 how financial planning may impact a stu13 dent’s ability to pursue postsecondary edu14 cation; and 

15 ‘‘(B) support the development and imple16 mentation of a statewide longitudinal data sys17 tem, as described in subsection (c)(2)(A)(ii). 

18 ‘‘(2) PROHIBITED USES.—Funds made avail19 able under this section shall not be used to promote 

20 any lender’s loans. 

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

22 State— 

‘‘(A) shall use not less than 1 23 ⁄3 of the sum 

24 of the Federal and non-Federal share used for 

25 paragraph (1)(A) on activities that benefit stu-
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1 dents enrolled in junior or community colleges 

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

3 institutions, or two-year programs of instruc4 tion at four-year public institutions; 

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

6 the sum of the Federal and non-Federal share 

7 under this section for activities described in 

8 paragraph (1)(B); and 

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

10 the sum of the Federal and non-Federal share 

11 under this section for administrative purposes 

12 relating to the grant under this section. 

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

14 grant under this section shall submit to the Secretary an 

15 annual report on— 

16 ‘‘(1) the activities and services described in sub17 section (d)(1) that are carried out with such grant; 

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

19 services in increasing postsecondary persistence and 

20 completion, as determined by measurable progress in 

21 achieving the State’s goals for persistence and com22 pletion described in the Access and Completion Plan 

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

24 if such plan has been submitted; and 
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1 ‘‘(3) any other information or assessments the 

2 Secretary may require. 

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

4 ‘‘(1) DISLOCATED WORKER.—The term ‘dis5 located worker’ has the meaning given such term in 

6 section 101(9) of the Workforce Investment Act of 

7 1998 (29 U.S.C. 2801(9)). 

8 ‘‘(2) INDUSTRY OR SECTOR PARTNERSHIP.— 

9 The term ‘industry or sector partnership’ means a 

10 workforce collaborative that organizes key stake11 holders in a targeted industry cluster into a working 

12 group that focuses on the human capital needs of a 

13 targeted industry cluster and that includes— 

14 ‘‘(A) representatives of multiple firms or 

15 employers (including workers) in a targeted in16 dustry cluster, including small- and medium17 sized employers when practicable; 

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

19 labor organizations, trade unions or consortia of 

20 trade unions, or other labor organizations; 

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

22 workforce investment boards; 

23 ‘‘(D) 1 or more representatives of postsec24 ondary educational institutions or other train25 ing providers; and 
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1 ‘‘(E) 1 or more representatives of State 

2 workforce agencies or other entities providing 

3 employment services. 

4 ‘‘(3) STATE PUBLIC EMPLOYMENT SERVICE.— 

5 The term ‘State public employment service’ has the 

6 meaning given such term in section 502(a)(9) of the 

7 Student Aid and Fiscal Responsibility Act of 2009. 

8 ‘‘(4) STATE WORKFORCE INVESTMENT BOARD; 

9 LOCAL WORKFORCE INVESTMENT BOARD.—The 

10 terms ‘State workforce investment board’ and ‘local 

11 workforce investment board’ have the meanings 

12 given such terms in section 502(a)(10) of the Stu13 dent Aid and Fiscal Responsibility Act of 2009. 

14 ‘‘SEC. 783. INNOVATION IN COLLEGE ACCESS AND COMPLE15 TION NATIONAL ACTIVITIES. 

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

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

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

19 basis, to eligible entities in accordance with this section 

20 to conduct innovative programs that advance knowledge 

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

22 the number of individuals with postsecondary degrees or 

23 certificates. 

24 ‘‘(b) ELIGIBLE ENTITIES.—The Secretary is author25 ized to award grants under subsection (a) to— 
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1 ‘‘(1) institutions of higher education; 

2 ‘‘(2) States; 

3 ‘‘(3) nonprofit organizations with demonstrated 

4 experience in the support, improvement, or operation 

5 of programs to increase postsecondary completion, 

6 including— 

7 ‘‘(A) agencies with agreements with the 

8 Secretary under subsections (b) and (c) of sec9 tion 428 on the date of the enactment of the 

10 Student Aid and Fiscal Responsibility Act of 

11 2009; 

12 ‘‘(B) nonprofit subsidiaries of agencies de13 scribed in subparagraph (A), if such subsidi14 aries were established, pursuant to State law, 

15 on or before January 1, 1998; and 

16 ‘‘(C) eligible not-for-profit servicers, as de17 fined in section 456(d), with an agreement with 

18 the Secretary under subsection (a)(3) of section 

19 456, except that such a servicer shall only be el20 igible for a subgrant from the State for which 

21 the servicer is receiving an allocation under 

22 such agreement; 

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

24 is defined in section 781(i)(1)); 
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1 ‘‘(5) entities receiving a grant under chapter 1 

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

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

4 in paragraphs (1) through (5). 

5 ‘‘(c) INNOVATION GRANTS.— 

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

7 under subsection (a) shall be not less than 

8 $1,000,000. 

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

10 to award grants under subsection (a) includes— 

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

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

13 of the amount of funds received by such entity 

14 from philanthropic organizations (as such term 

15 is defined in section 781(i)(1)) to conduct inno16 vative programs that advance knowledge about, 

17 and adoption of, policies and practices that in18 crease the number of individuals with postsec19 ondary degrees or certificates; and 

20 ‘‘(B) the authority to award an eligible en21 tity a grant to develop 2-year programs that 

22 provide supplemental grant or loan benefits to 

23 students that— 

24 ‘‘(i) are designed to improve student 

25 outcomes, including degree completion, 
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1 graduation without student loan debt, and 

2 post-completion employment; 

3 ‘‘(ii) are in addition to the student fi4 nancial aid available under title IV of this 

5 Act; and 

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

7 the amount of that aid or any other stu8 dent financial aid for which a student is 

9 otherwise eligible under Federal law. 

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

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

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

13 and containing such information as the Secretary 

14 shall require. 

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

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

17 applications that— 

18 ‘‘(A) are from an eligible entity with dem19 onstrated experience in serving students from 

20 groups that are underrepresented in postsec21 ondary education, including institutions of high22 er education that are eligible for assistance 

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

24 that includes an eligible entity with such experi25 ence; 
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1 ‘‘(B) are from an eligible entity that is a 

2 public institution of higher education that does 

3 not predominantly provide an educational pro4 gram for which it awards a bachelor’s degree 

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

6 that includes at least one such institution; 

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

8 certificate completion in the fields of science, 

9 technology, engineering, and mathematics, in10 cluding preparation for, or entry into, 

11 postbaccaluareate study, especially for women 

12 and other groups of students who are underrep13 resented in such fields; 

14 ‘‘(D) include activities to increase degree 

15 or certificate completion for students who are 

16 veterans; 

17 ‘‘(E) include activities that enhance the fi18 nancial literacy and awareness of students who 

19 are potentially eligible for assistance under this 

20 Act, especially those students from groups that 

21 are traditionally underrepresented in postsec22 ondary education; 

23 ‘‘(F) include activities to encourage dis24 located workers (as such term is defined in sec25 tion 101(9) of the Workforce Investment Act of 
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1 1998 (29 U.S.C. 2801(9)) to complete postsec2 ondary education opportunities; 

3 ‘‘(G) are from an eligible entity that is a 

4 philanthropic organization with the primary 

5 purpose of providing scholarships and support 

6 services to students from groups that are 

7 underrepresented in postsecondary education, or 

8 are from a consortium that includes such an or9 ganization; or 

10 ‘‘(H) are from an eligible entity that en11 courages partnerships between institutions of 

12 higher education with high degree-completion 

13 rates and institutions of higher education with 

14 low degree-completion rates from the same cat15 egory of institutions described in section 132(d) 

16 to facilitate the sharing of information relating 

17 to, and the implementation of, best practices for 

18 increasing postsecondary completion. 

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

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

21 grants and contracts to provide technical assistance 

22 to eligible entities receiving a grant under subsection 

23 (a), including technical assistance on the evaluation 

24 conducted in accordance with section 784 and estab-
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1 lishing networks of eligible entities receiving grants 

2 under such subsection. 

3 ‘‘(d) REPORTS.— 

4 ‘‘(1) ANNUAL REPORTS BY ENTITIES.—Each el5 igible entity receiving a grant under subsection (a) 

6 shall submit to the Secretary an annual report on— 

7 ‘‘(A) the effectiveness of the program car8 ried out with such grant in increasing postsec9 ondary completion, as determined by measur10 able progress in achieving the goals of the pro11 gram, as described in the application for such 

12 grant; and 

13 ‘‘(B) any other information or assessments 

14 the Secretary may require. 

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

16 Secretary shall submit to the authorizing committees 

17 an annual report on grants awarded under sub18 section (a), including— 

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

20 entity receiving a grant under such subsection; 

21 and 

22 ‘‘(B) a description of the activities con23 ducted by each such eligible entity. 
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1 ‘‘SEC. 784. EVALUATION. 

2 ‘‘From the amount appropriated under section 

3 781(a)(2)(D), the Director of the Institute of Education 

4 Sciences shall evaluate the programs funded under this 

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

6 issue a final report on such evaluation to the authorizing 

7 committees and the Secretary, and shall make such report 

8 available to the public. 

9 ‘‘SEC. 785. PARTICIPATION OF PRIVATE, NONPROFIT INSTI10 TUTIONS OF HIGHER EDUCATION. 

11 ‘‘(a) VOLUNTARY PARTICIPATION.—A private, non12 profit institution of higher education may voluntarily elect 

13 to participate in a State’s efforts under this part to in14 crease postsecondary enrollment, persistence, and comple15 tion. A State— 

16 ‘‘(1) shall not require any private, nonprofit in17 stitution to participate in such efforts; and 

18 ‘‘(2) may require such an institution that volun19 tarily elects to participate in such efforts to provide 

20 appropriate information to allow the State to assess 

21 the institution’s progress towards the goals described 

22 in subclauses (I) and (II) of section 782(c)(2)(A)(i). 

23 ‘‘(b) RULE OF CONSTRUCTION.—Nothing in this 

24 part, including voluntary participation described in sub25 section (a), shall be construed to— 
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1 ‘‘(1) authorize the Secretary, a State, or an of2 ficer or employee of the Department or of a State 

3 to exercise any direction, supervision, or control 

4 other than that is currently granted over a private, 

5 nonprofit institution of higher education, including 

6 control over curriculum, program of instruction, ad7 ministration, governance, personnel, articulation, the 

8 awarding of credit, graduation or degree require9 ments, or admissions; 

10 ‘‘(2) authorize the Secretary, a State, or an of11 ficer or employee of the Department or of a State 

12 to require a private, nonprofit institution of higher 

13 education to participate in a longitudinal data sys14 tem; or 

15 ‘‘(3) limit the application of the General Edu16 cation Provisions Act. 

17 ‘‘(c) ENFORCEMENT.—If any State fails or refuses 

18 to comply with any provision of this section, the State 

19 shall no longer be eligible for assistance under this part.’’. 

20 SEC. 103. INVESTMENT IN HISTORICALLY BLACK COL21 LEGES AND UNIVERSITIES AND OTHER MI22 NORITY-SERVING INSTITUTIONS. 

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

24 (1) in subsection (a)— 
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1 (A) in paragraph (2), by striking ‘‘section 

2 502’’ and inserting ‘‘section 502(a)’’; 

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

4 316’’ and inserting ‘‘section 316(b)’’; 

5 (C) in paragraph (5), by striking ‘‘in sub6 section (c)’’ and inserting ‘‘in section 318(b)’’; 

7 (D) in paragraph (6), by striking ‘‘in sub8 section (c)’’ and inserting ‘‘in section 320(b)’’; 

9 and 

10 (E) in paragraph (7), by striking ‘‘in sub11 section (c)’’ and inserting ‘‘in section 319(b)’’; 

12 (2) in subsection (b)— 

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

14 ‘‘$255,000,000’’ and all that follows and insert15 ing ‘‘$255,000,000 for each of the fiscal years 

16 2008 through 2019. The authority to award 

17 grants under this section shall expire at the end 

18 of fiscal year 2019.’’; and 

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

20 as follows: 

21 ‘‘(B) STEM AND ARTICULATION PRO22 GRAMS.—From the amount made available for 

23 allocation under this subparagraph by subpara24 graph (A)(i) for any fiscal year— 
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1 ‘‘(i) 90 percent shall be available for 

2 Hispanic-serving institutions for activities 

3 described in sections 503 and 513, with a 

4 priority given to applications that pro5 pose— 

6 ‘‘(I) to increase the number of 

7 Hispanic and other low-income stu8 dents attaining degrees in the fields of 

9 science, technology, engineering, or 

10 mathematics; and 

11 ‘‘(II) to develop model transfer 

12 and articulation agreements between 

13 2-year Hispanic-serving institutions 

14 and 4-year institutions in such fields; 

15 and 

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

17 grants under section 355.’’; 

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

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

20 all that follows and inserting ‘‘and shall be 

21 made available as grants under section 318 and 

22 allotted among such institutions under section 

23 318(e), treating such amount, plus the amount 

24 appropriated for such fiscal year in a regular or 

25 supplemental appropriation Act to carry out 
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1 section 318, as the amount appropriated to 

2 carry out section 318 for purposes of allotments 

3 under section 318(e).’’; and 

4 (D) in paragraph (2)(D)— 

5 (i) in clause (iii), by striking ‘‘for ac6 tivities described in section 311(c)’’ and in7 serting ‘‘and shall be made available as 

8 grants under section 320, treating such 

9 $5,000,000 as part of the amount appro10 priated for such fiscal year in a regular or 

11 supplemental appropriation Act to carry 

12 out such section and using such 

13 $5,000,000 for purposes described in sub14 section (c) of such section’’; and 

15 (ii) in clause (iv), by striking ‘‘de16 scribed in subsection (a)(7)—’’ and all that 

17 follows and inserting ‘‘and shall be made 

18 available as grants under section 319, 

19 treating such $5,000,000 as part of the 

20 amount appropriated for such fiscal year 

21 in a regular or supplemental appropriation 

22 Act to carry out such section and using 

23 such $5,000,000 for purposes described in 

24 subsection (c) of such section.’’; and 

25 (3) by striking subsection (c). 
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1 SEC. 104. INVESTMENT IN COOPERATIVE EDUCATION. 

2 There are authorized to be appropriated, and there 

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

4 Higher Education Act of 1965 (20 U.S.C. 1161n) (in ad5 dition to any other amounts appropriated to carry out 

6 such part and out of any money in the Treasury not other7 wise appropriated), $10,000,000 for fiscal year 2010. The 

8 authority to award grants under part N of title VIII of 

9 such Act shall expire at the end of fiscal year 2010. 

10 SEC. 105. LOAN FORGIVENESS FOR SERVICEMEMBERS AC11 TIVATED FOR DUTY. 

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

13 1091b(b)(2)) is amended by adding at the end the fol14 lowing: 

15 ‘‘(F) TUITION RELIEF FOR STUDENTS

16 CALLED TO MILITARY SERVICE.— 

17 ‘‘(i) WAIVER OF REPAYMENT BY STU18 DENTS CALLED TO MILITARY SERVICE.—In 

19 addition to the waivers authorized by sub20 paragraphs (D) and (E), the Secretary 

21 shall waive the amounts that students are 

22 required to return under this section if the 

23 withdrawals on which the returns are 

24 based are withdrawals necessitated by rea25 son of service in the uniformed services. 
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1 ‘‘(ii) LOAN FORGIVENESS AUTHOR2 IZED.—Whenever a student’s withdrawal 

3 from an institution of higher education is 

4 necessitated by reason of service in the 

5 uniformed services, the Secretary shall, 

6 with respect to the payment period or pe7 riod of enrollment for which such student 

8 did not receive academic credit as a result 

9 of such withdrawal, carry out a program— 

10 ‘‘(I) through the holder of the 

11 loan, to assume the obligation to 

12 repay— 

13 ‘‘(aa) the outstanding prin14 cipal and accrued interest on any 

15 loan assistance first disbursed to 

16 the student before July 1, 2010, 

17 under part B (including to a par18 ent on behalf of the student 

19 under section 428B) for such 

20 payment period or period of en21 rollment; minus 

22 ‘‘(bb) any amount of such 

23 loan assistance returned by the 

24 institution in accordance with 

25 paragraph (1) of this subsection 
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1 for such payment period or pe2 riod of enrollment; and 

3 ‘‘(II) to cancel— 

4 ‘‘(aa) the outstanding prin5 cipal and accrued interest on the 

6 loan assistance disbursed to the 

7 student under part D (including 

8 a Federal Direct PLUS loan dis9 bursed to a parent on behalf of 

10 the student), or first disbursed to 

11 the student under part E before 

12 July 1, 2010, for such payment 

13 period or period of enrollment; 

14 minus 

15 ‘‘(bb) any amount of such 

16 loan assistance returned by the 

17 institution in accordance with 

18 paragraph (1) of this subsection 

19 for such payment period or pe20 riod of enrollment. 

21 ‘‘(iii) REIMBURSEMENT FOR CAN22 CELLATION OF PERKINS LOANS.—The Sec23 retary shall pay to each institution for 

24 each fiscal year an amount equal to the ag25 gregate of the amounts of Federal Perkins 
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1 loans in such institutions’s student loan 

2 fund which are cancelled pursuant to 

3 clause (iii)(II) for such fiscal year, minus 

4 an amount equal to the aggregate of the 

5 amounts of any such loans so canceled 

6 which were made from Federal capital con7 tributions to its student loan fund provided 

8 by the Secretary under section 468. None 

9 of the funds appropriated pursuant to sec10 tion 461(b) shall be available for payments 

11 pursuant to this paragraph. To the extent 

12 feasible, the Secretary shall pay the 

13 amounts for which any institution qualifies 

14 under this paragraph not later than 3 

15 months after the institution files an insti16 tutional application for campus-based 

17 funds. 

18 ‘‘(iv) LOAN ELIGIBILITY AND LIMITS

19 FOR STUDENTS.—Any amounts that are 

20 returned by an institution in accordance 

21 with paragraph (1), or forgiven or waived 

22 by the Secretary under this subparagraph, 

23 with respect to a payment period or period 

24 of enrollment for which a student did not 

25 receive academic credit as a result of with-
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1 drawal necessitated by reason of service in 

2 the uniformed services, shall not be in3 cluded in the calculation of the student’s 

4 annual or aggregate loan limits for assist5 ance under this title, or otherwise affect 

6 the student’s eligibility for grants or loans 

7 under this title. 

8 ‘‘(v) DEFINITION.—In this subpara9 graph, the term ‘service in the uniformed 

10 services’ has the meaning given such term 

11 in section 484C(a).’’. 

12 (b) EFFECTIVE DATE.— 

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

14 this section shall take effect for periods of service in 

15 the uniformed services beginning after the date of 

16 the enactment of this Act. 

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

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

19 the period beginning 30 days prior to the date a stu20 dent is required to report to service in the uniformed 

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

22 Education Act of 1965 (20 U.S.C. 1091c(a)) and 

23 ending upon termination of the deployment of such 

24 student for such service. 
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1 SEC. 106. VETERANS RESOURCE OFFICER GRANTS. 

2 Section 873 (20 U.S.C. 1161t) is amended— 

3 (1) by amending the header to read as follows: 

4 ‘‘MODEL PROGRAMS FOR CENTERS OF EXCEL5 LENCE FOR VETERAN STUDENT SUCCESS; VET6 ERANS RESOURCE OFFICERS’’; 

7 (2) in subsection (a), by inserting ‘‘, or Vet8 erans Resource Officers,’’ after ‘‘model programs’’; 

9 (3) by amending subsection (b) to read as fol10 lows: 

11 ‘‘(b) GRANT AUTHORIZED.— 

12 ‘‘(1) IN GENERAL.—Subject to the availability 

13 of appropriations under subsection (f), the Secretary 

14 shall award grants to institutions of higher edu15 cation to— 

16 ‘‘(A) develop model programs to support 

17 veteran student success in postsecondary edu18 cation; or 

19 ‘‘(B) hire a Veterans Resource Officer to 

20 increase the college completion rates for veteran 

21 students enrolled at such institutions of higher 

22 education. 

23 ‘‘(2) GRANT PERIOD.—A grant awarded under 

24 this section shall be awarded for a period of 3 

25 years.’’; and 

26 (4) in subsection (c)— 
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1 (A) in paragraph (1)— 

2 (i) by amending the header to read as 

3 follows: ‘‘MODEL PROGRAM REQUIRED AC4 TIVITIES’’; and 

5 (ii) in the matter preceding subpara6 graph (A), by striking ‘‘under this section’’ 

7 and inserting ‘‘for the purpose described in 

8 subsection (b)(1)(A)’’; 

9 (B) by redesignating paragraph (2) as 

10 paragraph (3); and 

11 (C) by inserting after paragraph (1) the 

12 following: 

13 ‘‘(2) VETERANS RESOURCE OFFICER REQUIRED

14 ACTIVITIES.—An institution of higher education re15 ceiving a grant for the purpose described in sub16 section (b)(1)(B) shall use such grant to hire a Vet17 erans Resource Officer whose duties shall include— 

18 ‘‘(A) serving as a liaison between— 

19 ‘‘(i) veteran students; 

20 ‘‘(ii) the faculty and staff of the insti21 tution; 

22 ‘‘(iii) local facilities of the Department 

23 of Veterans Affairs; and 

24 ‘‘(iv) mental healthcare providers at 

25 the Department of Veterans Affairs to en-
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1 sure that veteran students are referred to 

2 such providers if needed; and 

3 ‘‘(B) organizing and advising veteran stu4 dent organizations and hosting veterans-ori5 ented group functions on campus; 

6 ‘‘(C) distributing news and information to 

7 all veteran students, including through main8 taining newsletters and listserves; and 

9 ‘‘(D) assisting in the training of Depart10 ment of Veterans Affairs certifying officials, 

11 when applicable.’’. 

12 SEC. 107. OFFICER DANIEL FAULKNER CHILDREN OF FALL13 EN HEROES SCHOLARSHIP. 

14 (a) SHORT TITLE.—This section may be cited as the 

15 ‘‘Officer Daniel Faulkner Children of Fallen Heroes 

16 Scholarship Act of 2009’’. 

17 (b) CALCULATION OF ELIGIBILITY.—Section 473(b) 

18 (20 U.S.C. 1087mm(b)(2)) is amended— 

19 (1) in paragraph (2)— 

20 (A) in the matter preceding subparagraph 

21 (A), by inserting ‘‘(in the case of a student who 

22 meets the requirement of subparagraph (B)(i)), 

23 or academic year 2010–2011 (in the case of a 

24 student who meets the requirement of subpara-
50 

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1 graph (B)(ii)),’’ after ‘‘academic year 2009– 

2 2010’’; and 

3 (B) by amending subparagraph (B) to read 

4 as follows: 

5 ‘‘(B) whose parent or guardian was— 

6 ‘‘(i) a member of the Armed Forces of 

7 the United States and died as a result of 

8 performing military service in Iraq or Af9 ghanistan after September 11, 2001; or 

10 ‘‘(ii) was actively serving as a public 

11 safety officer and died in the line of duty 

12 while performing as a public safety officer; 

13 and’’; 

14 (2) in paragraph (3)— 

15 (A) by striking ‘‘Notwithstanding’’ and in16 serting the following: 

17 ‘‘(A) ARMED FORCES.—Notwithstanding’’; 

18 (B) by striking ‘‘paragraph (2)’’ and in19 serting ‘‘subparagraphs (A), (B)(i), and (C) of 

20 paragraph (2)’’; and 

21 (C) by adding at the end the following: 

22 ‘‘(B) PUBLIC SAFETY OFFICERS.—Not23 withstanding any other provision of law, unless 

24 the Secretary establishes an alternate method 

25 to adjust the expected family contribution, a fi-
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1 nancial aid administrator shall adjust the ex2 pected family contribution in accordance with 

3 this subsection for each student who meets the 

4 requirements of subparagraphs (A), (B)(ii), and 

5 (C) of paragraph (2).’’; and 

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

7 ‘‘(4) TREATMENT OF PELL AMOUNT.—Notwith8 standing section 1212 of the Omnibus Crime Control 

9 and Safe Streets Act of 1968, in the case of a stu10 dent who receives an increased Federal Pell Grant 

11 amount under this section, the total amount of such 

12 Federal Pell Grant, including the increase under 

13 subparagraph (A), shall not be considered in calcu14 lating that student’s educational assistance benefits 

15 under the Public Safety Officer’s Benefits program. 

16 ‘‘(5) DEFINITIONS.—For purposes of this sub17 section— 

18 ‘‘(A) the term ‘public safety officer’ means 

19 an individual serving a public agency in an offi20 cial capacity, with or without compensation, as 

21 a law enforcement officer, as a firefighter, or as 

22 a member of a rescue squad or ambulance crew; 

23 ‘‘(B) the term ‘law enforcement officer’ 

24 means an individual who— 
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1 ‘‘(i) is authorized by law to engage in 

2 or supervise the prevention, detection, in3 vestigation, or prosecution of, or the incar4 ceration of any person for, any violation of 

5 law; and 

6 ‘‘(ii) has statutory powers of arrest or 

7 apprehension; 

8 ‘‘(C) the term ‘firefighter’ means an indi9 vidual who is trained in the suppression of fire 

10 or hazardous-materials response and has the 

11 legal authority to engage in these duties; 

12 ‘‘(D) the term ‘member of a rescue squad 

13 or ambulance crew’ means an individual who is 

14 an officially recognized or designated public em15 ployee member of a rescue squad or ambulance 

16 crew; and 

17 ‘‘(E) the term ‘public agency’ means the 

18 United States, any State of the United States, 

19 the District of Columbia, the Commonwealth of 

20 Puerto Rico, the Virgin Islands of the United 

21 States, Guam, American Samoa, the Trust Ter22 ritory of the Pacific Islands, the Commonwealth 

23 of the Northern Mariana Islands, any territory 

24 or possession of the United States, or any unit 

25 of local government, department, agency, or in-
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1 strumentality of any of the foregoing, and the 

2 Amtrak Police and Federal Reserve Police de3 partments.’’. 

4 SEC. 108. TEACHER EXCELLENCE. 

5 (a) ESTABLISHMENT.—The Secretary of Education 

6 may make grants to local educational agencies for the pur7 pose of improving teacher excellence in public elementary 

8 and secondary schools. 

9 (b) USE OF FUNDS.—Grants under this section shall 

10 be used for the establishment, expansion, or improvement 

11 of— 

12 (1) professional development activities that are 

13 aligned to the curriculum and student academic 

14 needs; 

15 (2) mentoring and induction programs for new 

16 teachers and principals; or 

17 (3) career ladders that allow teachers to take 

18 on new professional roles, such as career teachers, 

19 mentor teachers, and master teachers. 

20 (c) APPLICATION.—A local educational agency desir21 ing a grant under this section shall submit to the Sec22 retary of Education an application at such time, in such 

23 manner, and accompanied by such information as the Sec24 retary may reasonably require. 
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1 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to carry out this section 

3 such sums as may be necessary for fiscal year 2010 and 

4 each of the 5 succeeding fiscal years. 

5 Subtitle B—Student Financial Aid 

6 Form Simplification 

7 SEC. 121. GENERAL EFFECTIVE DATE. 

8 Except as otherwise provided in this subtitle, amend9 ments made by this subtitle shall be effective with respect 

10 to determinations of need for assistance under title IV of 

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

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

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

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

15 1087kk) is amended— 

16 (1) by striking ‘‘Except’’ and inserting the fol17 lowing: 

18 ‘‘(a) IN GENERAL.—Except’’; 

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

20 after ‘‘therein’’; and 

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

22 ‘‘(b) ASSET CAP FOR NEED-BASED AID.—Notwith23 standing any other provision of this title, a student shall 

24 not be eligible to receive a Federal Pell Grant or a Federal 

25 Direct Stafford Loan under this title if— 
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1 ‘‘(1) in the case of a dependent student, the 

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

3 parents are equal to an amount greater than 

4 $150,000 (or a successor amount prescribed by the 

5 Secretary under section 478(c)); or 

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

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

8 if applicable) are equal to an amount greater than 

9 $150,000 (or a successor amount prescribed by the 

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

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

12 1087nn(b)) is amended— 

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

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

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

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

17 U.S.C. 1087oo) is amended— 

18 (1) in subsection (a)— 

19 (A) in paragraph (1)— 

20 (i) by striking ‘‘adjusted’’; and 

21 (ii) by inserting ‘‘and’’ after the semi22 colon; 

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

24 and inserting a period; and 

25 (C) by striking paragraph (3); 
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1 (2) in subsection (b)— 

2 (A) in the header, by striking ‘‘AD3 JUSTED’’; 

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

5 by striking ‘‘adjusted’’; 

6 (C) by striking paragraph (1); 

7 (D) by redesignating paragraphs (2) and 

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

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

10 subparagraph (D) of this paragraph), by strik11 ing ‘‘adjusted’’; and 

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

13 subparagraph (D) of this paragraph), by strik14 ing ‘‘paragraph (2)’’ and inserting ‘‘paragraph 

15 (1)’’; 

16 (3) by repealing subsection (d); 

17 (4) in subsection (e)— 

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

19 and inserting ‘‘The available’’; 

20 (B) by striking ‘‘to as ‘AAI’)’’ and insert21 ing ‘‘to as ‘AI’)’’; 

22 (C) by striking ‘‘From Adjusted Available 

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

24 Income (AI)’’; and 

25 (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. CHANGES TO TOTAL INCOME; AID ELIGIBILITY. 

23 (a) DEFINITION OF UNTAXED INCOME AND BENE24 FITS.—Section 480(b)(1) (20 U.S.C. 1087vv(b)(1)), as 
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1 amended by the Higher Education Opportunity Act (Pub2 lic Law 110–315), is amended— 

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

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

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

6 and (H) as subparagraphs (A), (B), and (C), respec7 tively; 

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

9 paragraph (2)), by inserting ‘‘and’’ after the semi10 colon; and 

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

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

13 period. 

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

15 U.S.C. 1087vv(f)(2)) is amended— 

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

17 (B); 

18 (2) by striking the period at the end of sub19 paragraph (C) and inserting ‘‘; or’’; and 

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

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

22 defined in section 3(2) of the Employee Retire23 ment Income Security Act of 1974 (29 U.S.C. 

24 1002(2))).’’. 
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1 (c) FINANCIAL ADMINISTRATOR DISCRETION.—Sec2 tion 479A(b) (20 U.S.C. 1087tt) is amended in the sub3 section heading, by striking ‘‘TO ASSETS’’. 

4 (d) SUSPENSION OF ELIGIBILITY FOR DRUG-RE5 LATED OFFENSES.—Section 484(r)(1) (20 U.S.C. 

6 1091(r)(1)) is amended to read as follows: 

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

8 of any offense under any Federal or State law in9 volving the sale of a controlled substance for conduct 

10 that occurred during a period of enrollment for 

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

12 work assistance under this title shall not be eligible 

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

14 this title from the date of that conviction for the pe15 riod of time specified in the following subpara16 graphs: 

17 ‘‘(A) For a first offense, the period of in18 eligibility shall be 2 years. 

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

20 ineligibility shall be indefinite.’’. 
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1 TITLE II—STUDENT LOAN 

2 REFORM 

3 Subtitle A—Stafford Loan Reform 

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

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

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

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

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

10 to loans under this part for which the first disburse11 ment would be made after such date’’ after ‘‘ex12 pended’’; and 

13 (2) by adding at the end the following new sub14 section: 

15 ‘‘(d) TERMINATION OF AUTHORITY TO MAKE OR IN16 SURE NEW LOANS.—Notwithstanding paragraphs (1) 

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

18 law— 

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

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

21 June 30, 2010; and 

22 ‘‘(2) no funds are authorized to be appro23 priated, or may be expended, under this Act or any 

24 other Act to make or insure loans under this part 
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1 (including consolidation loans) for which the first 

2 disbursement would be made after June 30, 2010, 

3 except as expressly authorized by an Act of Congress en4 acted after the date of enactment of the Student Aid and 

5 Fiscal Responsibility Act of 2009.’’. 

6 SEC. 202. SCOPE AND DURATION OF FEDERAL LOAN INSUR7 ANCE PROGRAM. 

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

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

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

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

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

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

14 SEC. 203. APPLICABLE INTEREST RATES. 

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

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

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

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

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

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

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

22 2006,’’; and 

23 (4) in paragraph (4)— 
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1 (A) in the matter preceding subparagraph 

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

3 ‘‘July 1, 2010’’; and 

4 (B) by repealing subparagraphs (D) and 

5 (E). 

6 SEC. 204. FEDERAL PAYMENTS TO REDUCE STUDENT IN7 TEREST COSTS. 

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

9 (20 U.S.C. 1078) is amended— 

10 (1) in subsection (a)— 

11 (A) in paragraph (1), in the matter pre12 ceding subparagraph (A), by inserting ‘‘for 

13 which the first disbursement is made before 

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

15 and 

16 (B) in paragraph (5), by striking ‘‘Sep17 tember 30, 2014,’’ and all that follows through 

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

19 (2) in subsection (b)(1)— 

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

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

22 2006,’’; and 

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

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

25 2010,’’ after ‘‘July 1, 2006,’’; 
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1 (3) in subsection (f)(1)(A)(ii)— 

2 (A) by striking ‘‘during fiscal years begin3 ning’’; and 

4 (B) by inserting ‘‘and first disbursed be5 fore July 1, 2010,’’ after ‘‘October 1, 2003,’’; 

6 and 

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

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

9 Act shall’’. 

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

11 Section 303 of the College Cost Reduction and Access Act 

12 (Public Law 110–84) is repealed. 

13 SEC. 205. FEDERAL PLUS LOANS. 

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

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

16 to July 1, 2010, a graduate’’. 

17 SEC. 206. FEDERAL CONSOLIDATION LOAN. 

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

19 3) is amended— 

20 (1) in subsection (a)(4)(A), by inserting ‘‘, and 

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

22 this part’’; 

23 (2) in subsection (b)— 
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1 (A) in paragraph (1)(E), by inserting be2 fore the semicolon ‘‘, and before July 1, 2010’’; 

3 and 

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

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

6 2010,’’; 

7 (3) in subsection (c)(1)— 

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

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

10 after ‘‘2006,’’; and 

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

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

13 ‘‘1994,’’; and 

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

15 30, 2014.’’ and inserting ‘‘June 30, 2010. No loan 

16 may be made under this section for which the first 

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

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

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

20 30, 2010. 

21 SEC. 207. UNSUBSIDIZED STAFFORD LOANS FOR MIDDLE22 INCOME BORROWERS. 

23 Section 428H (20 U.S.C. 1078–8) is amended— 
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1 (1) in subsection (a), by inserting ‘‘that are 

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

3 this part’’; 

4 (2) in subsection (b)— 

5 (A) by striking ‘‘Any student’’ and insert6 ing ‘‘Prior to July 1, 2010, any student’’; and 

7 (B) by inserting ‘‘for which the first dis8 bursement is made before such date’’ after ‘‘un9 subsidized Federal Stafford Loan’’; and 

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

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

12 2006,’’. 

13 SEC. 208. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE 

14 ATTORNEYS. 

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

16 12(b)(2)(A)) is amended— 

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

18 ‘‘(i) subject to clause (ii)— 

19 ‘‘(I) a loan made, insured, or 

20 guaranteed under this part, and that 

21 is first disbursed before July 1, 2010; 

22 or 

23 ‘‘(II) a loan made under part D 

24 or part E; and’’; and 

25 (2) in clause (ii)— 
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1 (A) by striking ‘‘428C or 455(g)’’ and in2 serting ‘‘428C that is disbursed before July 1, 

3 2010, or section 455(g)’’; and 

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

5 which the first disbursement is made before 

6 July 1, 2010’’ after ‘‘or 428H’’. 

7 SEC. 209. SPECIAL ALLOWANCES. 

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

9 (1) in subsection (b)(2)(I)— 

10 (A) in the header, by inserting ‘‘, AND BE11 FORE JULY 1, 2010’’ after ‘‘2000’’; 

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

13 July 1, 2010,’’ after ‘‘2000,’’; 

14 (C) in clause (ii)(II), by inserting ‘‘and be15 fore July 1, 2010,’’ after ‘‘2006,’’; 

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

17 July 1, 2010,’’ after ‘‘2000,’’; 

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

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

20 ‘‘2000,’’; 

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

23 (G) in clause (vi)— 

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

25 BEFORE JULY 1, 2010’’ after ‘‘2007’’; and 
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1 (ii) in the matter preceding subclause 

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

3 2010,’’ after ‘‘2007,’’; 

4 (2) in subsection (c)— 

5 (A) in paragraph (2)(B)— 

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

7 after the semicolon; 

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

9 and inserting a period; and 

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

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

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

13 ‘‘1992,’’; and 

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

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

16 SEC. 210. REVISED SPECIAL ALLOWANCE CALCULATION. 

17 (a) REVISED CALCULATION RULE.—Section 

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

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

20 the following new clause: 

21 ‘‘(vii) REVISED CALCULATION RULE

22 TO REFLECT FINANCIAL MARKET CONDI23 TIONS.— 

24 ‘‘(I) CALCULATION BASED ON

25 LIBOR.—For the calendar quarter be-
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1 ginning on October 1, 2009, and each 

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

5 to loans described in subclause (II), 

6 clause (i)(I) of this subparagraph 

7 shall be applied by substituting ‘of the 

8 1-month London Inter Bank Offered 

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

11 such quarter as compiled and released 

12 by the British Bankers Association’ 

13 for ‘of the quotes of the 3-month com14 mercial paper (financial) rates in ef15 fect for each of the days in such quar16 ter as reported by the Federal Reserve 

17 in Publication H–15 (or its successor) 

18 for such 3-month period’. 

19 ‘‘(II) LOANS ELIGIBLE FOR

20 LIBOR-BASED CALCULATION.—The 

21 special allowance paid pursuant to 

22 this subsection shall be calculated as 

23 described in subclause (I) with respect 

24 to special allowance payments for the 

25 3-month period ending December 31, 
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1 2009, and each succeeding 3-month 

2 period, on loans for which the first 

3 disbursement is made— 

4 ‘‘(aa) on or after the date of 

5 enactment of the Student Aid 

6 and Fiscal Responsibility Act of 

7 2009, and before July 1, 2010; 

8 or 

9 ‘‘(bb) on or after January 1, 

10 2000, and before the date of en11 actment of the Student Aid and 

12 Fiscal Responsibility Act of 

13 2009, if, not later than the last 

14 day of the second full fiscal quar15 ter after the date of enactment of 

16 such Act, the holder of the loan 

17 (or, if the holder acts as eligible 

18 lender trustee for the beneficial 

19 owner of the loan, the beneficial 

20 owner of the loan), affirmatively 

21 and permanently waives all con22 tractual, statutory or other legal 

23 rights to a special allowance paid 

24 pursuant to this subsection that 

25 is calculated using the formula in 
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1 effect at the time the loans were 

2 first disbursed. 

3 ‘‘(III) TERMS OF WAIVER.— 

4 ‘‘(aa) IN GENERAL.—A 

5 waiver pursuant to subclause 

6 (II)(bb) shall be in a form (print7 ed or electronic) prescribed by 

8 the Secretary, and shall be appli9 cable to— 

10 ‘‘(AA) all loans de11 scribed in such subclause 

12 that the lender holds solely 

13 in its own right under any 

14 lender identification number 

15 associated with the holder 

16 (pursuant to section 487B); 

17 ‘‘(BB) all loans de18 scribed in such subclause for 

19 which the beneficial owner 

20 has the authority to make 

21 an election of a waiver under 

22 such subclause, regardless of 

23 the lender identification 

24 number associated with the 

25 loan or the lender that holds 
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1 the loan as eligible lender 

2 trustee on behalf of such 

3 beneficial owner; and 

4 ‘‘(CC) all future cal5 culations of the special al6 lowance on loans that, on 

7 the date of such waiver, are 

8 loans described in subitem 

9 (AA) or (BB), or that, after 

10 such date, become loans de11 scribed in subitem (AA) or 

12 (BB). 

13 ‘‘(bb) EXCEPTIONS.—Any 

14 waiver pursuant to subclause 

15 (II)(bb) that is elected for loans 

16 described in subitem (AA) or 

17 (BB) of item (aa) shall not apply 

18 to any loan described in such 

19 subitem for which the lender or 

20 beneficial owner of the loan dem21 onstrates to the satisfaction of 

22 the Secretary that— 

23 ‘‘(AA) in accordance 

24 with an agreement entered 

25 into before the date of en-
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1 actment of the Student Aid 

2 and Fiscal Responsibility 

3 Act of 2009 by which such 

4 lender or owner is governed 

5 and that applies to such 

6 loans, such lender or owner 

7 is not legally permitted to 

8 make an election of such 

9 waiver with respect to such 

10 loans without the approval 

11 of one or more third parties 

12 with an interest in the loans, 

13 and that the lender or owner 

14 followed all available options 

15 under such agreement to ob16 tain such approval, and was 

17 unable to do so; or 

18 ‘‘(BB) such lender or 

19 beneficial owner presented 

20 the proposal of electing such 

21 a waiver applicable to such 

22 loans associated with an ob23 ligation rated by a nationally 

24 recognized statistical rating 

25 organization (as defined in 
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1 section 3(a)(62) of the Secu2 rities Exchange Act of 

3 1934), and such rating orga4 nization provided a written 

5 opinion that the agency 

6 would downgrade the rating 

7 applicable to such obligation 

8 if the lender or owner elect9 ed such a waiver. 

10 ‘‘(IV) PARTICIPANT’S YIELD.— 

11 For the calendar quarter beginning on 

12 October 1, 2009, and each subsequent 

13 calendar quarter, the Secretary’s par14 ticipant yield in any loan in which the 

15 Secretary has purchased a participa16 tion interest and for which the first 

17 disbursement is made on or after Jan18 uary 1, 2000, and before October 1, 

19 2009, shall be determined by using 

20 the LIBOR-based rate described in 

21 subclause (I) as the substitute rate 

22 (for the commercial paper rate) re23 ferred to in the participation agree24 ment between the Secretary and such 

25 lender.’’. 
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1 (b) CONFORMING AMENDMENT.—Section 

2 438(b)(2)(I) (20 U.S.C. 1087–1(b)(2)(I)) is further 

3 amended— 

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

5 bond equivalent rate’’ and inserting ‘‘the rate deter6 mined under subclause (I)’’; and 

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

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

9 SEC. 211. ORIGINATION OF DIRECT LOANS AT INSTITU10 TIONS LOCATED OUTSIDE THE UNITED 

11 STATES. 

12 (a) LOANS FOR STUDENTS ATTENDING INSTITU13 TIONS LOCATED OUTSIDE THE UNITED STATES.—Sec14 tion 452 (20 U.S.C. 1087b) is amended by adding at the 

15 end the following: 

16 ‘‘(d) INSTITUTIONS LOCATED OUTSIDE THE UNITED

17 STATES.—Loan funds for students (and parents of stu18 dents) attending institutions located outside the United 

19 States shall be disbursed through a financial institution 

20 located in the United States and designated by the Sec21 retary to serve as the agent of such institutions with re22 spect to the receipt of the disbursements of such loan 

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

24 To be eligible to receive funds under this part, an other25 wise eligible institution located outside the United States 
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1 shall make arrangements, subject to regulations by the 

2 Secretary, with the agent designated by the Secretary 

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

4 (b) CONFORMING AMENDMENTS.— 

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

6 1002), as amended by section 102 of the Higher 

7 Education Opportunity Act (Public Law 110–315) 

8 and section 101 of Public Law 111–39, is amend9 ed— 

10 (A) by striking ‘‘part B’’ each place it ap11 pears and inserting ‘‘part D’’; 

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

13 consistent with the requirements of section 

14 452(d)’’ before the period at the end; and 

15 (C) in subsection (a)(2)(A)— 

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

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

18 and inserting ‘‘made’’; and 

19 (ii) in clause (iii)— 

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

21 ‘‘only Federal Stafford’’ and all that 

22 follows through ‘‘section 428B’’ and 

23 inserting ‘‘only Federal Direct Staf24 ford Loans under section 

25 455(a)(2)(A), Federal Direct Unsub-
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1 sidized Stafford Loans under section 

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

3 PLUS Loans under section 

4 455(a)(2)(B)’’; and 

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

6 ‘‘a Federal Stafford’’ and all that fol7 lows through ‘‘section 428B’’ and in8 serting ‘‘a Federal Direct Stafford 

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

10 Federal Direct Unsubsidized Stafford 

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

12 Federal Direct PLUS Loan under 

13 section 455(a)(2)(B)’’. 

14 (2) EFFECTIVE DATE.—The amendments made 

15 by subparagraph (C) of paragraph (1) shall be effec16 tive as if enacted as part of section 102(a)(1) of the 

17 Higher Education Opportunity Act, in accordance 

18 with section 102(e) of such Act, as amended by sec19 tion 101(a)(2) of Public Law 111–39. 

20 SEC. 212. AGREEMENTS WITH INSTITUTIONS. 

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

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

23 and redesignating the succeeding paragraphs accord24 ingly; and 
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1 (2) in subsection (b)(2), by striking ‘‘(5), (6), 

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

3 SEC. 213. TERMS AND CONDITIONS OF LOANS. 

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

5 is amended— 

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

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

8 sections 428’’; and 

9 (2) in subsection (g)— 

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

11 made under part B and first disbursed before 

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

13 (B) by striking the third sentence. 

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

15 subsection (a)(1) shall apply with respect to loans first dis16 bursed under part D of title IV of the Higher Education 

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

18 1, 2010. 

19 SEC. 214. CONTRACTS. 

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

21 (1) in subsection (a)— 

22 (A) in paragraph (1)— 

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

24 GENERAL’’ and inserting ‘‘AWARDING OF

25 CONTRACTS’’; 
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1 (ii) by striking ‘‘The Secretary’’ and 

2 inserting the following: 

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

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

6 ‘‘(B) AWARDING CONTRACTS FOR SERV7 ICING LOANS.—The Secretary shall, if prac8 ticable, award multiple contracts, through a 

9 competitive bidding process, to entities, includ10 ing eligible not-for-profit servicers, to service 

11 loans originated under this part. The competi12 tive bidding process shall take into account 

13 price, servicing capacity, and capability, and 

14 may take into account the capacity and capa15 bility to provide default aversion activities and 

16 outreach services. 

17 ‘‘(C) JOB RETENTION INCENTIVE PAY18 MENT.—(i) In a contract with an entity under 

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

20 Secretary shall provide a job retention incentive 

21 payment, in an amount and manner determined 

22 by the Secretary, if such entity agrees to give 

23 priority for hiring for positions created as a re24 sult of such a contract to those geographical lo25 cations located in the United States at which 
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1 the entity performed student loan origination or 

2 servicing activities under the Federal Family 

3 Education Loan Program as of the date of en4 actment of the Student Aid and Fiscal Respon5 sibility Act of 2009. 

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

7 to be serviced by an entity awarded such a con8 tract, the Secretary shall consider the retention 

9 of highly qualified employees (employed in the 

10 United States) of such entity a positive factor 

11 in determining such allocation.’’; 

12 (B) in paragraph (2)— 

13 (i) in the first sentence, by inserting 

14 ‘‘, including eligible not-for-profit 

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

16 (ii) by amending the third sentence to 

17 read as follows: ‘‘The entities with which 

18 the Secretary may enter into such con19 tracts shall include, where practicable, 

20 agencies with agreements with the Sec21 retary under sections 428(b) and (c) on 

22 the date of the enactment of the Student 

23 Aid and Fiscal Responsibility Act of 2009, 

24 nonprofit subsidiaries of such an agency, 

25 and eligible not-for-profit servicers, if such 
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1 agencies, subsidiaries, or servicers meet the 

2 qualifications as determined by the Sec3 retary under this subsection and if those 

4 agencies, subsidiaries, or servicers have 

5 such experience and demonstrated effec6 tiveness.’’; and 

7 (iii) by striking the last sentence and 

8 inserting the following: ‘‘In awarding con9 tracts to such agencies, subsidiaries, and 

10 such eligible not-for-profit servicers, the 

11 Secretary shall, to the extent practicable 

12 and consistent with the purposes of this 

13 part, give special consideration to such 

14 agencies, subsidiaries, and servicers with a 

15 history of high quality performance and 

16 demonstrated integrity in conducting oper17 ations with institutions of higher education 

18 and the Secretary.’’; 

19 (C) by redesignating paragraph (3) as 

20 paragraph (4), and by inserting in such para21 graph ‘‘, or of any eligible not-for-profit servicer 

22 to enter into an agreement for the purposes of 

23 this section as a member of a consortium of 

24 such entities’’ before the period at the end; and 
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1 (D) by inserting after paragraph (2) the 

2 following new paragraph: 

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

4 SERVICERS.— 

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

6 other provision of this section, in each State 

7 where at least one eligible not-for-profit servicer 

8 has its principal place of business, the Secretary 

9 shall contract with each such servicer to service 

10 loans originated under this part on behalf of 

11 borrowers attending institutions located within 

12 such State, provided that the servicer dem13 onstrates that it meets the standards for serv14 icing Federal assets and providing quality serv15 ice and agrees to service the loans at a competi16 tive market rate, as determined by the Sec17 retary. In determining such a competitive mar18 ket rate, the Secretary shall set such rate so 

19 that (i) the rate is commercially reasonable in 

20 relation to the volume of loans being serviced by 

21 the eligible not-for-profit servicers, and (ii) in 

22 the Secretary’s judgment, the eligible not-for23 profit servicers can reasonably provide any ad24 ditional services, such as default aversion or 

25 outreach, provided for in the contracts awarded 
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1 under this paragraph. Contracts awarded under 

2 this paragraph shall be subject to the same re3 quirements for quality, performance, and ac4 countability as contracts awarded under para5 graph (2) for similar activities. 

6 ‘‘(B) ALLOCATIONS.—(i) ONE

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

8 one eligible not-for-profit servicer with a con9 tract described in subparagraph (A), the Sec10 retary shall, at a minimum, allocate to such 

11 servicer, each year and subject to such contract, 

12 the servicing 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) the loans of all the borrowers at19 tending institutions located within the 

20 State. 

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

22 of a State with more than one eligible not-for23 profit servicer with a contract described in sub24 paragraph (A), the Secretary shall, at a min25 imum, allocate to each such servicer, each year 
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1 and subject to such contract, the servicing 

2 rights for the lesser of— 

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

4 (including borrowers who borrowed loans 

5 in a prior year that were serviced by the 

6 servicer) attending institutions located 

7 within the State; or 

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

9 borrowers attending institutions located 

10 within the State, except the Secretary shall 

11 adjust such shares as necessary to ensure 

12 that the loans of any single borrower re13 main with a single servicer. 

14 ‘‘(iii) ADDITIONAL ALLOCATION.—The Sec15 retary may allocate additional servicing rights 

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

17 the performance of such servicer, as determined 

18 by the Secretary, including performance in the 

19 areas of customer service and default aversion. 

20 ‘‘(C) LOAN SERVICING RETENTION.— 

21 ‘‘(i) IN GENERAL.—In addition to any 

22 new loans allocated to a servicers under 

23 subparagraph (B)(ii), an eligible not-for24 profit servicer shall retain the servicing of 

25 loans allocated to such servicer in previous 
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1 years, except as provided in clause (ii), or 

2 as otherwise provided for in accordance 

3 with the terms of a contract under this 

4 paragraph. 

5 ‘‘(ii) TRANSFERS FOR MULTIPLE

6 LOANS.—Notwithstanding clause (i) and 

7 the allocations required by subparagraph 

8 (B), the Secretary may transfer loans 

9 among servicers who are awarded contracts 

10 to service loans pursuant to this section to 

11 ensure that the loans of any single bor12 rower remain with a single servicer.’’; 

13 (2) in subsection (b)— 

14 (A) in the subsection header, by striking 

15 ‘‘ORIGINATION, SERVICING, AND DATA SYS16 TEMS’’ and inserting ‘‘ORIGINATION, SERV17 ICING, DELINQUENCY PREVENTION AND DE18 FAULT AVERSION SERVICES, DEFAULT COL19 LECTIONS, OUTREACH, AND DATA SYSTEMS’’; 

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

21 by striking ‘‘The Secretary may’’ and inserting 

22 ‘‘(1) IN GENERAL.—The Secretary may’’; 

23 (C) by redesignating paragraphs (1) 

24 through (4) as subparagraphs (A) through (D), 
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1 and moving such subparagraphs two ems to the 

2 right; 

3 (D) in subparagraph (C) (as redesignated 

4 by subparagraph (C) of this paragraph), by 

5 striking ‘‘and’’ after the semicolon; 

6 (E) by redesignating subparagraph (D) (as 

7 redesignated by subparagraph (C) of this para8 graph) as subparagraph (E); 

9 (F) by inserting after subparagraph (C) 

10 (as so redesignated) the following new subpara11 graph: 

12 ‘‘(D) delinquency prevention and default 

13 aversion services, default collections, financial 

14 aid counseling, career and education counseling, 

15 financial literacy, guidance counselor and finan16 cial aid officer training services, and other out17 reach services; and’’; and 

18 (G) by adding at the end the following: 

19 ‘‘(2) LIMITATION.—The Secretary may enter into 

20 contracts for the services described in paragraph (1)(D) 

21 with— 

22 ‘‘(A) agencies with agreements with the Sec23 retary under subsections (b) and (c) of section 428 

24 on the date of enactment of the Student Aid and 

25 Fiscal Responsibility Act of 2009, that are providing 
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1 such services on such date and that meet the quali2 fications determined by the Secretary; or 

3 ‘‘(B) nonprofit subsidiaries of agencies de4 scribed in subparagraph (A), if such subsidiaries 

5 were established, pursuant to State law, on or before 

6 January 1, 1998, and meet the qualifications deter7 mined by the Secretary.’’; and 

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

9 ‘‘(c) REPORT TO CONGRESS.—Not later than 5 years 

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

11 Fiscal Responsibility Act of 2009, the Secretary shall pre12 pare and submit to the authorizing committees, a report 

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

14 servicers awarded a contract under this section to service 

15 loans originated under this part. Such report shall give 

16 consideration to— 

17 ‘‘(1) customer satisfaction of borrowers and in18 stitutions with respect to the loan servicing provided 

19 by the servicers; 

20 ‘‘(2) compliance with applicable regulations by 

21 the servicers; and 

22 ‘‘(3) the effectiveness of default aversion activi23 ties, and outreach services, including financial lit24 eracy programs, (if any), provided by the servicers. 

25 ‘‘(d) DEFINITIONS.—In this section: 
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1 ‘‘(1) DEFAULT AVERSION ACTIVITIES.—The 

2 term ‘default aversion activities’ means activities 

3 that are directly related to providing collection as4 sistance to the Secretary on a delinquent loan, prior 

5 to the loan being legally in a default status. 

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

7 ‘‘(A) IN GENERAL.—The term ‘eligible not8 for-profit servicer’ means an entity— 

9 ‘‘(i) that is not owned or controlled in 

10 whole or in part by— 

11 ‘‘(I) a for profit entity; or 

12 ‘‘(II) a nonprofit entity having its 

13 principal place of business in another 

14 State; and 

15 ‘‘(ii) that— 

16 ‘‘(I) as of July 1, 2009— 

17 ‘‘(aa) meets the definition of 

18 an eligible not-for-profit holder 

19 under section 435(p), except that 

20 such term does not include eligi21 ble lenders described in para22 graph (1)(D) of such section; and 

23 ‘‘(bb) was performing, or 

24 had entered into a contract with 

25 a third party servicer (as such 
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1 term is defined in section 481(c)) 

2 who was performing, student 

3 loan servicing functions for loans 

4 made under part B of this title; 

5 ‘‘(II) notwithstanding subclause 

6 (I), as of July 1, 2009— 

7 ‘‘(aa) is the sole beneficial 

8 owner of a loan for which the 

9 special allowance rate is cal10 culated under section 

11 438(b)(2)(I)(vi)(II) because the 

12 loan is held by an eligible lender 

13 trustee that is an eligible not-for14 profit holder as defined under 

15 section 435(p)(1)(D); and 

16 ‘‘(bb) was performing, or 

17 had entered into a contract with 

18 a third party servicer (as such 

19 term is defined in section 481(c)) 

20 who was performing, student 

21 loan servicing functions for loans 

22 made under part B of this title; 

23 or 
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1 ‘‘(III) is an affiliated entity of an 

2 eligible not-for-profit servicer de3 scribed in subclause (I) or (II) that— 

4 ‘‘(aa) directly employs, or 

5 will directly employ (on or before 

6 the date the entity begins serv7 icing loans under a contract 

8 awarded by the Secretary pursu9 ant to subsection (a)(3)(A)), the 

10 majority of individuals who per11 form borrower-specific student 

12 loan servicing functions; and 

13 ‘‘(bb) as of July 1, 2009, 

14 was performing, or had entered 

15 into a contract with a third party 

16 servicer (as such term is defined 

17 in section 481(c)) who was per18 forming, student loan servicing 

19 functions for loans made under 

20 part B of this title. 

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

23 entity’— 
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1 ‘‘(i) means an entity contracted to 

2 perform services for an eligible not-for3 profit servicer that— 

4 ‘‘(I) is a nonprofit entity or is 

5 wholly owned by a nonprofit entity; 

6 and 

7 ‘‘(II) is not owned or controlled, 

8 in whole or in part, by— 

9 ‘‘(aa) a for-profit entity; or 

10 ‘‘(bb) an entity having its 

11 principal place of business in an12 other State; and 

13 ‘‘(ii) may include an affiliated entity 

14 that is established by an eligible not-for15 profit servicer after the date of enactment 

16 of the Student Aid and Fiscal Responsi17 bility Act of 2009, if such affiliated entity 

18 is otherwise described in subparagraph 

19 (A)(ii)(III) and clause (i) of this subpara20 graph. 

21 ‘‘(3) OUTREACH SERVICES.—The term ‘out22 reach services’ means programs offered to students 

23 and families, including programs delivered in coordi24 nation with institutions of higher education that— 

25 ‘‘(A) encourage— 
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1 ‘‘(i) students to attend and complete a 

2 degree or certification program at an insti3 tution of higher education; and 

4 ‘‘(ii) students and families to obtain 

5 financial aid, but minimize the borrowing 

6 of education loans; and 

7 ‘‘(B) deliver a wide range of financial lit8 eracy and counseling tools to equip students 

9 with the information necessary to make prudent 

10 decisions concerning their educational success 

11 and financial well-being.’’. 

12 SEC. 215. INTEREST RATES. 

13 Section 455(b)(7) (20 U.S.C. 1087e(b)(7)) is amend14 ed by adding at the end the following new subparagraph: 

15 ‘‘(E) REDUCED RATES FOR UNDER16 GRADUATE FDSL ON AND AFTER JULY 1, 

17 2012.—Notwithstanding the preceding para18 graphs of this subsection and subparagraph (A) 

19 of this paragraph, for Federal Direct Stafford 

20 Loans made to undergraduate students for 

21 which the first disbursement is made on or 

22 after July 1, 2012, the applicable rate of inter23 est shall, during any 12-month period beginning 

24 on July 1 and ending on June 30, be deter-
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1 mined on the preceding June 1 and be equal 

2 to— 

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

4 day Treasury bills auctioned at the final 

5 auction held prior to such June 1; plus 

6 ‘‘(ii) 2.5 percent, 

7 except that such rate shall not exceed 6.8 per8 cent.’’. 

9 SEC. 216. TECHNICAL ASSISTANCE TO INSTITUTIONS OF 

10 HIGHER EDUCATION. 

11 Section 458(a) (20 U.S.C. 1087h(a)) is amended— 

12 (1) by redesignating paragraph (5) as para13 graph (6); and 

14 (2) by inserting after paragraph (4) the fol15 lowing new paragraph: 

16 ‘‘(5) TECHNICAL ASSISTANCE TO INSTITUTIONS

17 OF HIGHER EDUCATION.— 

18 ‘‘(A) PROVISION OF ASSISTANCE.—The 

19 Secretary shall provide institutions of higher 

20 education participating, or seeking to partici21 pate, in the loan programs under this part with 

22 technical assistance in establishing and admin23 istering such programs, including assistance for 

24 an institution of higher education during such 

25 institution’s transition into such programs. 
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1 Such assistance may include technical support, 

2 training for personnel, customized assistance to 

3 individual institutions of higher education, de4 velopment of informational materials, and other 

5 services the Secretary determines to be appro6 priate. 

7 ‘‘(B) FUNDS.—There are— 

8 ‘‘(i) authorized to be appropriated, 

9 and there are appropriated, to carry out 

10 this paragraph (in addition to any other 

11 amounts appropriated to carry out this 

12 subparagraph and out of any money in the 

13 Treasury not otherwise appropriated), 

14 $50,000,000 for fiscal year 2010; and 

15 ‘‘(ii) authorized to be appropriated 

16 such sums as may be necessary to carry 

17 out this paragraph for fiscal years 2011 

18 through 2014.’’. 

19 SEC. 217. OUTREACH EFFORTS. 

20 (a) OUTREACH ACTIVITIES REQUIRED.—The Sec21 retary of Education shall conduct outreach activities in ac22 cordance with this section to inform and educate students 

23 and their families about the transition to Federal Direct 

24 lending under the amendments made by this title to title 

25 IV of the Higher Education Act of 1965. 
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1 (b) REQUIRED COMPONENTS OF OUTREACH.—The 

2 Secretary shall provide for the broad dissemination of in3 formation on such amendments and shall— 

4 (1) operate and maintain an Internet website 

5 through which individuals may obtain information 

6 on changes made to the Federal Family Education 

7 Loan programs and the Federal Direct Loan pro8 grams; 

9 (2) develop and disseminate information to high 

10 school seniors and their parents concerning student 

11 loans and student aid; 

12 (3) provide assistance to institutions of higher 

13 education to educate students on the repayment of 

14 Federal Direct loans; and 

15 (4) ensure that all outreach efforts are devel16 oped using plain language and are culturally- and 

17 language-appropriate. 

18 (c) USE OF OTHER ENTITIES.—In carrying out this 

19 subsection, the Secretary may work with other appropriate 

20 entities to facilitate the dissemination of information 

21 under this section and to provide assistance as described 

22 in this section. 
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1 Subtitle B—Perkins Loan Reform 

2 SEC. 221. FEDERAL DIRECT PERKINS LOANS TERMS AND 

3 CONDITIONS. 

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

5 amended by inserting after section 455 the following new 

6 section: 

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

8 ‘‘(a) DESIGNATION OF LOANS.—Loans made to bor9 rowers under this section shall be known as ‘Federal Di10 rect Perkins Loans’. 

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

12 to authorize loans to be awarded by institutions of higher 

13 education through agreements established under section 

14 463(f). Unless otherwise specified in this section, all terms 

15 and conditions and other requirements applicable to Fed16 eral Direct Unsubsidized Stafford loans established under 

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

18 to this section. 

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

20 the requirements for student eligibility under section 

21 464(b) (including graduate and professional students as 

22 defined in regulations promulgated by the Secretary) shall 

23 be eligible to borrow a Federal Direct Perkins Loan, pro24 vided the student attends an eligible institution with an 

25 agreement with the Secretary under section 463(f), and 
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1 the institution uses its authority under that agreement to 

2 award the student a loan. 

3 ‘‘(d) LOAN LIMITS.—The annual and aggregate lim4 its for loans under this section shall be the same as those 

5 established under section 464, and aggregate limits shall 

6 include loans made by institutions under agreements 

7 under section 463(a). 

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

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

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

11 year.’’. 

12 SEC. 222. AUTHORIZATION OF APPROPRIATIONS. 

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

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

15 1, 2010,’’ after ‘‘The Secretary shall’’; 

16 (2) in subsection (b)— 

17 (A) in paragraph (1)— 

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

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

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

21 five succeeding fiscal years’’; and 

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

23 (3) by striking subsection (c). 

24 SEC. 223. ALLOCATION OF FUNDS. 

25 Section 462 (20 U.S.C. 1087bb) is amended— 
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1 (1) in subsection (a)(1), by striking ‘‘From’’ 

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

3 2010, from’’; and 

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

6 fiscal year 2010,’’. 

7 SEC. 224. FEDERAL DIRECT PERKINS LOAN ALLOCATION. 

8 Part E of title IV is further amended by inserting 

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

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

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

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

14 section), the authority to make Federal Direct Per15 kins Loans under section 455A with a portion of the 

16 annual loan authority described in subsection (b); 

17 and 

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

19 with section 452, to each participating institution 

20 from a portion of the annual loan authority de21 scribed in subsection (b), in an amount not to exceed 

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

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

24 to enable each such institution to make Federal Di-
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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 (except as provided in para11 graphs (3) and (4)): 

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

than 1 13 ⁄2 of such funds for each award year by 

14 allocating to each participating institution an 

15 amount equal to the adjusted self-help need 

16 amount of the institution, as determined in ac17 cordance with subsection (c) for such award 

18 year. 

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

than 1 20 ⁄4 of such funds for each award year by 

21 allocating to each participating institution an 

22 amount equal to the low tuition incentive 

23 amount of the institution, as determined in ac24 cordance with subsection (d). 
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1 ‘‘(C) The Secretary shall allocate not more 

than 1 2 ⁄4 of such funds for each award year by 

3 allocating to each participating institution an 

4 amount which bears the same ratio to the funds 

5 allocated under this subparagraph as the ratio 

6 determined in accordance with subsection (e) 

7 for the calculation of the Federal Pell Grant 

8 and degree recipient amount of the institution. 

9 ‘‘(2) NO FUNDS TO NON-PARTICIPATING INSTI10 TUTIONS.—The Secretary shall not make funds 

11 available under this subsection to any eligible insti12 tution that is not a participating institution. The ad13 justed self-help need amount (determined in accord14 ance with subsection (c)) of an eligible institution 

15 that is not a participating institution shall not be 

16 made available to any other institution. 

17 ‘‘(3) REQUIRED MINIMUM AMOUNT.—Notwith18 standing paragraph (1), in no case shall the sum of 

19 a participating institution’s allocation of loan au20 thority computed under subsections (c), (d), and (e) 

21 be less than the average of the institution’s total 

22 principal amount of loans made under this part for 

23 each of the academic years 2003–2004 through 

24 2007–2008. 
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1 ‘‘(4) ADDITIONAL ADJUSTMENTS.—If the Sec2 retary determines that the sum of a participating in3 stitution’s allocation of loan authority under sub4 sections (c), (d), and (e) is below the minimum 

5 amount required under paragraph (3), the Secretary 

6 shall— 

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

8 minimum amount under paragraph (3) is not 

9 satisfied, increase the amount of such sum to 

10 the amount of the required minimum under 

11 such paragraph; and 

12 ‘‘(B) ratably reduce the amount of the sum 

13 of such loan authority of all participating insti14 tutions not described in subparagraph (A). 

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 ‘‘(d) LOW TUITION INCENTIVE AMOUNT.— 

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

25 (b)(1)(B), the Secretary shall determine the low tui-
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1 tion incentive amount for each participating institu2 tion for each award year, by calculating for each 

3 such institution the sum of— 

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

5 than zero), by which— 

6 ‘‘(i) the average tuition and required 

7 fees for the institution’s sector for the sec8 ond preceding award year; exceeds 

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

10 the second preceding award year for each 

11 undergraduate and graduate student at12 tending the institution who had financial 

13 need (as determined under part F); plus 

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

15 than zero), by which— 

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

17 preceding award year of non-Federal grant 

18 aid provided to meet the financial need of 

19 all undergraduate students attending the 

20 institution (as determined without regard 

21 to financial aid not received under this 

22 title); exceeds 

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

24 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 in para-
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1 graph (2) of such section, the Secretary shall sus2 pend or terminate the institution’s eligibility to make 

3 Federal Direct Perkins Loans under section 455A 

4 unless and until the institution would qualify for a 

5 resumption 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 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 

26 the quarter ending September 30, 2010, the Sec-
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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. IMPLEMENTATION OF NON-TITLE IV REVENUE 

2 REQUIREMENT. 

3 Section 487(d) (20 U.S.C. 1094(d)) is amended— 

4 (1) in paragraph (1)(E), by striking ‘‘July 1, 

5 2011’’ and inserting ‘‘July 1, 2012’’; 

6 (2) in paragraph (1)(F)— 

7 (A) by redesignating clauses (iii), (iv), and 

8 (v) as clauses (iv), (v), and (vi), respectively; 

9 and 

10 (B) by inserting after clause (ii) the fol11 lowing new clause: 

12 ‘‘(iii) for the period beginning July 1, 

13 2010, and ending July 1, 2012, the 

14 amount of funds the institution received 

15 from loans disbursed under section 

16 455A;’’; and 

17 (3) in paragraph (2), by adding at the end the 

18 following new subparagraph: 

19 ‘‘(C) EXCEPTION.—Notwithstanding sub20 paragraphs (A) and (B), an institution that 

21 fails to meet the requirements of subsection 

22 (a)(24) for two consecutive institutional fiscal 

23 years, and the second such institutional fiscal 

24 year ends after July 1, 2008, and before July 

25 1, 2011, shall not be determined ineligible in 

26 accordance with subparagraph (A) unless the 
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1 institution fails to meet the requirements of 

2 subsection (a)(24) for a third consecutive insti3 tutional fiscal year.’’. 

4 SEC. 230. ADMINISTRATIVE EXPENSES. 

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

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

7 under part E of this title’’; and 

8 (2) in the third sentence— 

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

10 part A,’’; and 

11 (B) by striking ‘‘compensation of stu12 dents,’’ and all that follows through the period 

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

14 TITLE III—MODERNIZATION, 

15 RENOVATION, AND REPAIR 

16 Subtitle A—Elementary and 

17 Secondary Education 

18 SEC. 301. DEFINITIONS. 

19 In this subtitle: 

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

21 meaning given such term in section 1141 of the 

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

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

24 given such term in section 5210 of the Elementary 
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1 and Secondary Education Act of 1965 (20 U.S.C. 

2 7221i). 

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

4 green building rating program developed by the Col5 laborative for High Performance Schools. 

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

7 Star program of the United States Department of 

8 Energy and the United States Environmental Pro9 tection Agency. 

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

11 Building Initiative environmental design and rating 

12 system referred to as Green Globes. 

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

14 System’’ means the United States Green Building 

15 Council Leadership in Energy and Environmental 

16 Design green building rating standard referred to as 

17 LEED Green Building Rating System. 

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

19 (A) has the meaning given such term in 

20 section 9101 of the Elementary and Secondary 

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

22 (B) includes any public charter school that 

23 constitutes a local educational agency under 

24 State law; and 
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1 (C) includes the Recovery School District 

2 of Louisiana. 

3 (8) The term ‘‘outlying area’’— 

4 (A) means the United States Virgin Is5 lands, Guam, American Samoa, and the Com6 monwealth of the Northern Mariana Islands; 

7 and 

8 (B) includes the Republic of Palau. 

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

10 existing public elementary or secondary school facili11 ties, including public charter school facilities and 

12 other existing facilities planned for adaptive reuse as 

13 public charter school facilities. 

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

15 of Education. 

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

17 States, the District of Columbia, and the Common18 wealth of Puerto Rico. 

19 CHAPTER 1—GRANTS FOR MODERNIZA20 TION, RENOVATION, OR REPAIR OF 

21 PUBLIC SCHOOL FACILITIES 

22 SEC. 311. PURPOSE. 

23 Grants under this chapter shall be for the purpose 

24 of modernizing, renovating, or repairing public school fa25 cilities (including early learning facilities, as appropriate), 
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1 based on the need of the facilities for such improvements, 

2 to ensure that public school facilities are safe, healthy, 

3 high-performing, and technologically up-to-date. 

4 SEC. 312. ALLOCATION OF FUNDS. 

5 (a) RESERVATION.— 

6 (1) IN GENERAL.—From the amount appro7 priated to carry out this chapter for each fiscal year 

8 pursuant to section 345(a), the Secretary shall re9 serve 2 percent of such amount, consistent with the 

10 purpose described in section 311— 

11 (A) to provide assistance to the outlying 

12 areas; and 

13 (B) for payments to the Secretary of the 

14 Interior to provide assistance to Bureau-funded 

15 schools. 

16 (2) USE OF RESERVED FUNDS.—In each fiscal 

17 year, the amount reserved under paragraph (1) shall 

18 be divided between the uses described in subpara19 graphs (A) and (B) of such paragraph in the same 

20 proportion as the amount reserved under section 

21 1121(a) of the Elementary and Secondary Edu22 cation Act of 1965 (20 U.S.C. 6331(a)) is divided 

23 between the uses described in paragraphs (1) and 

24 (2) of such section 1121(a) in such fiscal year. 
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1 (3) DISTRESSED AREAS AND NATURAL DISAS2 TERS.—From the amount appropriated to carry out 

3 this chapter for each fiscal year pursuant to section 

4 345(a), the Secretary shall reserve 5 percent of such 

5 amount for grants to— 

6 (A) local educational agencies serving geo7 graphic areas with significant economic distress, 

8 to be used consistent with the purpose de9 scribed in section 311 and the allowable uses of 

10 funds described in section 313; 

11 (B) local educational agencies serving geo12 graphic areas recovering from a natural dis13 aster, to be used consistent with the purpose 

14 described in section 321 and the allowable uses 

15 of funds described in section 323; and 

16 (C) local educational agencies serving geo17 graphic areas that contain a military installa18 tion selected for closure under the base closure 

19 and realignment process pursuant to the De20 fense Base Closure and Realignment Act of 

21 1990 (part A of title XXIX of Public Law 101– 

22 510; 10 U.S.C. 2687 note). 

23 (b) ALLOCATION TO STATES.— 

24 (1) STATE-BY-STATE ALLOCATION.—Of the 

25 amount appropriated to carry out this chapter for 
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1 each fiscal year pursuant to section 345(a), and not 

2 reserved under subsection (a), each State shall be al3 located an amount in proportion to the amount re4 ceived by all local educational agencies in the State 

5 under part A of title I of the Elementary and Sec6 ondary Education Act of 1965 (20 U.S.C. 6311 et 

7 seq.) for the previous fiscal year relative to the total 

8 amount received by all local educational agencies in 

9 every State under such part for such fiscal year. 

10 (2) STATE ADMINISTRATION.—A State may re11 serve up to 1 percent of its allocation under para12 graph (1) to carry out its responsibilities under this 

13 chapter, which include— 

14 (A) providing technical assistance to local 

15 educational agencies; 

16 (B) developing an online, publicly search17 able database that includes an inventory of pub18 lic school facilities in the State, including for 

19 each such facility, its design, condition, mod20 ernization, renovation and repair needs, utiliza21 tion, energy use, and carbon footprint; and 

22 (C) creating voluntary guidelines for high23 performing school buildings, including guide24 lines concerning the following: 
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1 (i) Site location, storm water manage2 ment, outdoor surfaces, outdoor lighting, 

3 and transportation, including public transit 

4 and pedestrian and bicycle accessability. 

5 (ii) Outdoor water systems, land6 scaping to minimize water use, including 

7 elimination of irrigation systems for land8 scaping, and indoor water use reduction. 

9 (iii) Energy efficiency (including min10 imum and superior standards, such as for 

11 heating, ventilation, and air conditioning 

12 systems), use of alternative energy sources, 

13 commissioning, and training. 

14 (iv) Use of durable, sustainable mate15 rials, including life-cycle cost effectiveness, 

16 and waste reduction. 

17 (v) Indoor environmental quality, such 

18 as day lighting in classrooms, lighting 

19 quality, indoor air quality (including with 

20 reference to reducing the incidence and ef21 fects of asthma and other respiratory ill22 nesses), acoustics, and thermal comfort. 

23 (vi) Operations and management, 

24 such as use of energy-efficient equipment, 
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1 indoor environmental management plan, 

2 maintenance plan, and pest management. 

3 (3) GRANTS TO LOCAL EDUCATIONAL AGEN4 CIES.—From the amount allocated to a State under 

5 paragraph (1), each eligible local educational agency 

6 in the State shall receive an amount in proportion 

7 to the amount received by such local educational 

8 agency under part A of title I of the Elementary and 

9 Secondary Education Act of 1965 (20 U.S.C. 6311 

10 et seq.) for the previous fiscal year relative to the 

11 total amount received by all local educational agen12 cies in the State under such part for such fiscal 

13 year, except that no local educational agency that re14 ceived funds under such part for such fiscal year 

15 shall receive a grant of less than $5,000 in any fiscal 

16 year under this chapter. 

17 (4) SPECIAL RULE.—Section 1122(c)(3) of the 

18 Elementary and Secondary Education Act of 1965 

19 (20 U.S.C. 6332(c)(3)) shall not apply to paragraph 

20 (1) or (3). 

21 (c) SPECIAL RULES.— 

22 (1) DISTRIBUTIONS BY SECRETARY.—The Sec23 retary shall make and distribute the reservations 

24 and allocations described in subsections (a) and (b) 
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1 not later than 120 days after an appropriation of 

2 funds for this chapter is made. 

3 (2) DISTRIBUTIONS BY STATES.—A State shall 

4 make and distribute the allocations described in sub5 section (b)(3) within 90 days of receiving such funds 

6 from the Secretary. 

7 SEC. 313. ALLOWABLE USES OF FUNDS. 

8 A local educational agency receiving a grant under 

9 this chapter shall use the grant for modernization, renova10 tion, or repair of public school facilities (including early 

11 learning facilities, as appropriate), including— 

12 (1) repair, replacement, or installation of roofs, 

13 including extensive, intensive or semi-intensive green 

14 roofs, electrical wiring, water supply and plumbing 

15 systems, sewage systems, storm water runoff sys16 tems, lighting systems, building envelope, windows, 

17 ceilings, flooring, or doors, including security doors; 

18 (2) repair, replacement, or installation of heat19 ing, ventilation, or air conditioning systems, includ20 ing insulation, and conducting indoor air quality as21 sessments; 

22 (3) compliance with fire, health, seismic, and 

23 safety codes, including professional installation of 

24 fire and life safety alarms, and modernizations, ren25 ovations, and repairs that ensure that schools are 
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1 prepared for emergencies, such as improving build2 ing infrastructure to accommodate security measures 

3 and installing or upgrading technology to ensure 

4 that schools are able to respond to emergencies such 

5 as acts of terrorism, campus violence, and natural 

6 disasters; 

7 (4) retrofitting necessary to increase the energy 

8 efficiency and water efficiency of public school facili9 ties; 

10 (5) modifications necessary to make facilities 

11 accessible in compliance with the Americans with 

12 Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) 

13 and section 504 of the Rehabilitation Act of 1973 

14 (29 U.S.C. 794); 

15 (6) abatement, removal, or interim controls of 

16 asbestos, polychlorinated biphenyls, mold, mildew, 

17 lead-based hazards, including lead-based paint haz18 ards, or a proven carcinogen; 

19 (7) measures designed to reduce or eliminate 

20 human exposure to classroom noise and environ21 mental noise pollution; 

22 (8) modernization, renovation, or repair nec23 essary to reduce the consumption of coal, electricity, 

24 land, natural gas, oil, or water; 
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1 (9) installation or upgrading of educational 

2 technology infrastructure; 

3 (10) modernization, renovation, or repair of 

4 science and engineering laboratories, libraries, and 

5 career and technical education facilities, and im6 provements to building infrastructure to accommo7 date bicycle and pedestrian access; 

8 (11) installation or upgrading of renewable en9 ergy generation and heating systems, including 

10 solar, photovoltaic, wind, biomass (including wood 

11 pellet and woody biomass), waste-to-energy, and 

12 solar-thermal and geothermal systems, and for en13 ergy audits; 

14 (12) measures designed to reduce or eliminate 

15 human exposure to airborne particles such as dust, 

16 sand, and pollens; 

17 (13) creating greenhouses, gardens (including 

18 trees), and other facilities for environmental, sci19 entific, or other educational purposes, or to produce 

20 energy savings; 

21 (14) modernizing, renovating, or repairing 

22 physical education facilities for students, including 

23 upgrading or installing recreational structures made 

24 from post-consumer recovered materials in accord25 ance with the comprehensive procurement guidelines 
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1 prepared by the Administrator of the Environmental 

2 Protection Agency under section 6002(e) of the 

3 Solid Waste Disposal Act (42 U.S.C. 6962(e)); 

4 (15) other modernization, renovation, or repair 

5 of public school facilities to— 

6 (A) improve teachers’ ability to teach and 

7 students’ ability to learn; 

8 (B) ensure the health and safety of stu9 dents and staff; 

10 (C) make them more energy efficient; or 

11 (D) reduce class size; and 

12 (16) required environmental remediation related 

13 to modernization, renovation, or repair described in 

14 paragraphs (1) through (15). 

15 SEC. 314. PRIORITY PROJECTS. 

16 In selecting a project under section 313, a local edu17 cational agency may give priority to projects involving the 

18 abatement, removal, or interim controls of asbestos, poly19 chlorinated biphenyls, mold, mildew, lead-based hazards, 

20 including lead-based paint hazards, or a proven car21 cinogen. 
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1 CHAPTER 2—SUPPLEMENTAL GRANTS 

2 FOR LOUISIANA, MISSISSIPPI, AND 

3 ALABAMA 

4 SEC. 321. PURPOSE. 

5 Grants under this chapter shall be for the purpose 

6 of modernizing, renovating, repairing, or constructing 

7 public school facilities, (including early learning facilities, 

8 as appropriate), based on the need for such improvements 

9 or construction, to ensure that public school facilities are 

10 safe, healthy, high-performing, and technologically up-to11 date. 

12 SEC. 322. ALLOCATION TO LOCAL EDUCATIONAL AGEN13 CIES. 

14 (a) IN GENERAL.—Of the amount appropriated to 

15 carry out this chapter for each fiscal year pursuant to sec16 tion 345(b), the Secretary shall allocate to local edu17 cational agencies in Louisiana, Mississippi, and Alabama 

18 an amount equal to the infrastructure damage inflicted on 

19 public school facilities in each such district by Hurricane 

20 Katrina or Hurricane Rita in 2005 relative to the total 

21 of such infrastructure damage so inflicted in all such dis22 tricts, combined. 

23 (b) DISTRIBUTION BY SECRETARY.—The Secretary 

24 shall determine and distribute the allocations described in 
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1 subsection (a) not later than 120 days after an appropria2 tion of funds for this chapter is made. 

3 SEC. 323. ALLOWABLE USES OF FUNDS. 

4 A local educational agency receiving a grant under 

5 this chapter shall use the grant for one or more of the 

6 activities described in section 313, except that an agency 

7 receiving a grant under this chapter also may use the 

8 grant for the construction of new public school facilities. 

9 CHAPTER 3—GENERAL PROVISIONS 

10 SEC. 331. IMPERMISSIBLE USES OF FUNDS. 

11 No funds received under this subtitle may be used 

12 for— 

13 (1) payment of maintenance costs, including 

14 routine repairs classified as current expenditures 

15 under State or local law; 

16 (2) stadiums or other facilities primarily used 

17 for athletic contests or exhibitions or other events 

18 for which admission is charged to the general public; 

19 (3) improvement or construction of facilities the 

20 purpose of which is not the education of children, in21 cluding central office administration or operations or 

22 logistical support facilities; or 

23 (4) purchasing carbon offsets. 
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1 SEC. 332. SUPPLEMENT, NOT SUPPLANT. 

2 A local educational agency receiving a grant under 

3 this subtitle shall use such Federal funds only to supple4 ment and not supplant the amount of funds that would, 

5 in the absence of such Federal funds, be available for mod6 ernization, renovation, repair, and construction of public 

7 school facilities. 

8 SEC. 333. PROHIBITION REGARDING STATE AID. 

9 A State shall not take into consideration payments 

10 under this subtitle in determining the eligibility of any 

11 local educational agency in that State for State aid, or 

12 the amount of State aid, with respect to free public edu13 cation of children. 

14 SEC. 334. MAINTENANCE OF EFFORT. 

15 (a) IN GENERAL.—A local educational agency may 

16 receive a grant under this subtitle for any fiscal year only 

17 if either the combined fiscal effort per student or the ag18 gregate expenditures of the agency and the State involved 

19 with respect to the provision of free public education by 

20 the agency for the preceding fiscal year was not less than 

21 90 percent of the combined fiscal effort or aggregate ex22 penditures for the second preceding fiscal year. 

23 (b) REDUCTION IN CASE OF FAILURE TO MEET

24 MAINTENANCE OF EFFORT REQUIREMENT.— 

25 (1) IN GENERAL.—The State educational agen26 cy shall reduce the amount of a local educational 
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1 agency’s grant in any fiscal year in the exact propor2 tion by which a local educational agency fails to 

3 meet the requirement of subsection (a) by falling 

4 below 90 percent of both the combined fiscal effort 

5 per student and aggregate expenditures (using the 

6 measure most favorable to the local agency). 

7 (2) SPECIAL RULE.—No such lesser amount 

8 shall be used for computing the effort required 

9 under subsection (a) for subsequent years. 

10 (c) WAIVER.—The Secretary shall waive the require11 ments of this section if the Secretary determines that a 

12 waiver would be equitable due to— 

13 (1) exceptional or uncontrollable circumstances, 

14 such as a natural disaster; or 

15 (2) a precipitous decline in the financial re16 sources of the local educational agency. 

17 SEC. 335. SPECIAL RULE ON CONTRACTING. 

18 Each local educational agency receiving a grant under 

19 this subtitle shall ensure that, if the agency carries out 

20 modernization, renovation, repair, or construction through 

21 a contract, the process for any such contract ensures the 

22 maximum number of qualified bidders, including local, 

23 small, minority, and women- and veteran-owned busi24 nesses, through full and open competition. 
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1 SEC. 336. USE OF AMERICAN IRON, STEEL, AND MANUFAC2 TURED GOODS. 

3 (a) IN GENERAL.—None of the funds appropriated 

4 or otherwise made available by this subtitle may be used 

5 for a project for the modernization, renovation, repair, or 

6 construction of a public school facility unless all of the 

7 iron, steel, and manufactured goods used in the project 

8 are produced in the United States. 

9 (b) EXCEPTIONS.—Subsection (a) shall not apply in 

10 any case or category of cases in which the Secretary finds 

11 that— 

12 (1) applying subsection (a) would be incon13 sistent with the public interest; 

14 (2) iron, steel, and the relevant manufactured 

15 goods are not produced in the United States in suffi16 cient and reasonably available quantities and of a 

17 satisfactory quality; or 

18 (3) inclusion of iron, steel, and manufactured 

19 goods produced in the United States will increase 

20 the cost of the overall project by more than 25 per21 cent. 

22 (c) PUBLICATION OF JUSTIFICATION.—If the Sec23 retary determines that it is necessary to waive the applica24 tion of subsection (a) based on a finding under subsection 

25 (b), the Secretary shall publish in the Federal Register 

26 a detailed written justification of the determination. 
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1 (d) CONSTRUCTION.—This section shall be applied in 

2 a manner consistent with United States obligations under 

3 international agreements. 

4 SEC. 337. LABOR STANDARDS. 

5 The grant programs under this subtitle are applicable 

6 programs (as that term is defined in section 400 of the 

7 General Education Provisions Act (20 U.S.C. 1221)) sub8 ject to section 439 of such Act (20 U.S.C. 1232b). 

9 SEC. 338. CHARTER SCHOOLS. 

10 (a) IN GENERAL.—A local educational agency receiv11 ing an allocation under this subtitle shall reserve an 

12 amount of that allocation for charter schools within its ju13 risdiction for modernization, renovation, repair, and con14 struction of charter school facilities (including early learn15 ing facilities, as appropriate). 

16 (b) DETERMINATION OF RESERVED AMOUNT.—The 

17 amount to be reserved by a local educational agency under 

18 subsection (a) shall be determined based on the combined 

19 percentage of students counted under section 1113(a)(5) 

20 of the Elementary and Secondary Education Act of 1965 

21 (20 U.S.C. 6313(a)(5)) in the schools of the agency who— 

22 (1) are enrolled in charter schools; and 

23 (2) the local educational agency, in consultation 

24 with the authorized public chartering agency, ex25 pects to be enrolled, during the year with respect to 
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1 which the reservation is made, in charter schools 

2 that are scheduled to commence operation during 

3 such year. 

4 (c) SCHOOL SHARE.—Individual charter schools shall 

5 receive a share of the amount reserved under subsection 

6 (a) based on the need of each school for modernization, 

7 renovation, repair, or construction, as determined by the 

8 local educational agency in consultation with charter 

9 school administrators. 

10 (d) EXCESS FUNDS.—After the consultation de11 scribed in subsection (c), if the local educational agency 

12 determines that the amount of funds reserved under sub13 section (a) exceeds the modernization, renovation, repair, 

14 and construction needs of charter schools within the local 

15 educational agency’s jurisdiction, the agency may use the 

16 excess funds for other public school facility modernization, 

17 renovation, repair, or construction consistent with this 

18 subtitle and is not required to carry over such funds to 

19 the following fiscal year for use for charter schools. 

20 SEC. 339. GREEN SCHOOLS. 

21 (a) IN GENERAL.—Of the funds appropriated for a 

22 given fiscal year and made available to a local educational 

23 agency to carry out this subtitle, the local educational 

24 agency shall use not less than the applicable percentage 

25 (described in subsection (b)) of such funds for public 
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1 school modernization, renovation, repair, or construction 

2 that are certified, verified, or consistent with any applica3 ble provisions of— 

4 (1) the LEED Green Building Rating System; 

5 (2) Energy Star; 

6 (3) the CHPS Criteria; 

7 (4) Green Globes; or 

8 (5) an equivalent program adopted by the 

9 State, or another jurisdiction with authority over the 

10 local educational agency, that includes a verifiable 

11 method to demonstrate compliance with such pro12 gram. 

13 (b) APPLICABLE PERCENTAGES.—The applicable 

14 percentage described in subsection (a) is— 

15 (1) for funds appropriated in fiscal year 2010, 

16 50 percent; and 

17 (2) for funds appropriated in fiscal year 2011, 

18 75 percent. 

19 (c) RULE OF CONSTRUCTION.—Nothing in this sec20 tion shall be construed to prohibit a local educational 

21 agency from using sustainable, domestic hardwood lumber 

22 as ascertained through the forest inventory and analysis 

23 program of the Forest Service of the Department of Agri24 culture under the Forest and Rangeland Renewable Re25 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 counted under section 

21 1113(a)(5) of the Elementary and Secondary Edu22 cation Act of 1965 (20 U.S.C. 6313(a)(5)); 

23 (2) the total amount of funds received by the 

24 local educational agency under this subtitle, and for 

25 each public school in the agency, including each 
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1 charter school, the amount of such funds expended, 

2 and the types of modernization, renovation, repair, 

3 or construction projects for which such funds were 

4 used; 

5 (3) the number of students impacted by such 

6 projects, including the number of students so im7 pacted who are counted under section 1113(a)(5) of 

8 the Elementary and Secondary Education Act of 

9 1965 (20 U.S.C. 6313(a)(5)); 

10 (4) the number of public schools in the agency 

11 with a metro-centric locale code of 41, 42, or 43 as 

12 determined by the National Center for Education 

13 Statistics and the percentage of funds received by 

14 the agency under chapter 1 or chapter 2 of this sub15 title that were used for projects at such schools; 

16 (5) the number of public schools in the agency 

17 that are eligible for schoolwide programs under sec18 tion 1114 of the Elementary and Secondary Edu19 cation Act of 1965 (20 U.S.C. 6314) and the per20 centage of funds received by the agency under chap21 ter 1 or chapter 2 of this subtitle that were used for 

22 projects at such schools; 

23 (6) for each project— 

24 (A) the cost; 
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1 (B) the standard described in section 

2 339(a) with which the use of the funds com3 plied or, if the use of funds did not comply with 

4 a standard described in section 339(a), the rea5 son such funds were not able to be used in com6 pliance with such standards and the agency’s 

7 efforts to use such funds in an environmentally 

8 sound manner; and 

9 (C) any demonstrable or expected benefits 

10 as a result of the project (such as energy sav11 ings, improved indoor environmental quality, 

12 student and staff health, including the reduc13 tion of the incidence and effects of asthma and 

14 other respiratory illnesses, and improved cli15 mate for teaching and learning); and 

16 (7) the total number and amount of contracts 

17 awarded, and the number and amount of contracts 

18 awarded to local, small, minority, women, and vet19 eran-owned businesses. 

20 (b) AVAILABILITY OF REPORTS.—A local educational 

21 agency shall— 

22 (1) submit the report described in subsection 

23 (a) to the State educational agency, which shall com24 pile such information and report it annually to the 

25 Secretary; and 
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1 (2) make the report described in subsection (a) 

2 publicly available, including on the agency’s website. 

3 (c) REPORTS BY SECRETARY.—Not later than March 

4 31 of each fiscal year, the Secretary shall submit to the 

5 Committee on Education and Labor of the House of Rep6 resentatives and the Committee on Health, Education, 

7 Labor and Pensions of the Senate, and make available on 

8 the Department of Education’s website, a report on grants 

9 made under this subtitle, including the information from 

10 the reports described in subsection (b)(1). 

11 SEC. 341. SPECIAL RULES. 

12 Notwithstanding any other provision of this subtitle, 

13 none of the funds authorized by this subtitle may be— 

14 (1) used to employ workers in violation of sec15 tion 274A of the Immigration and Nationality Act 

16 (8 U.S.C. 1324a); or 

17 (2) distributed to a local educational agency 

18 that does not have a policy that requires a criminal 

19 background check on all employees of the agency. 

20 SEC. 342. PROMOTION OF EMPLOYMENT EXPERIENCES. 

21 The Secretary of Education, in consultation with the 

22 Secretary of Labor, shall work with recipients of funds 

23 under this subtitle to promote appropriate opportunities 

24 to gain employment experience working on modernization, 
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1 renovation, repair, and construction projects funded under 

2 this subtitle for— 

3 (1) participants in a YouthBuild program (as 

4 defined in section 173A of the Workforce Investment 

5 Act of 1998 (29 U.S.C. 2918a)); 

6 (2) individuals enrolled in the Job Corps pro7 gram carried out under subtitle C of title I of the 

8 Workforce Investment Act of 1998 (29 U.S.C. 2881 

9 et seq.); 

10 (3) individuals enrolled in a junior or commu11 nity college (as defined in section 312(f) of the 

12 Higher Education Act of 1965 (20 U.S.C. 1088(f))) 

13 certificate or degree program relating to projects de14 scribed in section 339(a); and 

15 (4) participants in preapprenticeship programs 

16 that have direct linkages with apprenticeship pro17 grams that are registered with the Department of 

18 Labor or a State Apprenticeship Agency under the 

19 National Apprenticeship Act of 1937 (29 U.S.C. 50 

20 et seq.). 

21 SEC. 343. ADVISORY COUNCIL ON GREEN, HIGH-PER22 FORMING PUBLIC SCHOOL FACILITIES. 

23 (a) ESTABLISHMENT OF ADVISORY COUNCIL.—The 

24 Secretary shall establish an advisory council to be known 

25 as the ‘‘Advisory Council on Green, High-Performing Pub-
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1 lic School Facilities’’ (in this section referred to as the 

2 ‘‘Advisory Council’’) which shall be composed of— 

3 (1) appropriate officials from the Department 

4 of Education; 

5 (2) representatives of the academic, architec6 tural, business, education, engineering, environ7 mental, labor, and scientific communities; and 

8 (3) such other representatives as the Secretary 

9 deems appropriate. 

10 (b) DUTIES OF ADVISORY COUNCIL.— 

11 (1) ADVISORY DUTIES.—The Advisory Council 

12 shall advise the Secretary on the impact of green, 

13 high-performing schools, on— 

14 (A) teaching and learning; 

15 (B) health; 

16 (C) energy costs; 

17 (D) environmental impact; and 

18 (E) other areas that the Secretary and the 

19 Advisory Council deem appropriate. 

20 (2) OTHER DUTIES.—The Advisory Council 

21 shall assist the Secretary in— 

22 (A) making recommendations on Federal 

23 policies to increase the number of green, high24 performing schools; 
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1 (B) identifying Federal policies that are 

2 barriers to helping States and local educational 

3 agencies make green, high-performing schools; 

4 (C) providing technical assistance and out5 reach to States and local educational agencies 

6 under section 339(d); and 

7 (D) providing the Secretary such other as8 sistance as the Secretary deems appropriate. 

9 (c) CONSULTATION.—In carrying out its duties under 

10 subsection (b), the Advisory Council shall consult with the 

11 Chair of the Council on Environmental Quality and the 

12 heads of appropriate Federal agencies, including the Sec13 retary of Commerce, the Secretary of Energy, the Sec14 retary of Health and Human Services, the Secretary of 

15 Labor, the Administrator of the Environmental Protection 

16 Agency, and the Administrator of the General Services 

17 Administration (through the Office of Federal High-Per18 formance Green Buildings). 

19 (d) TERMINATION.—The authority to establish and 

20 maintain the Advisory Council under this section shall ex21 pire at the close of September 30, 2011. 

22 SEC. 344. EDUCATION REGARDING PROJECTS. 

23 A local educational agency receiving funds under this 

24 subtitle may encourage schools at which projects are un25 dertaken with such funds to educate students about the 
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1 project, including, as appropriate, the functioning of the 

2 project and its environmental, energy, sustainability, and 

3 other benefits. 

4 SEC. 345. AVAILABILITY OF FUNDS. 

5 (a) CHAPTER 1.—There are authorized to be appro6 priated, and there are appropriated, to carry out chapter 

7 1 of this subtitle (in addition to any other amounts appro8 priated to carry out such chapter and out of any money 

9 in the Treasury not otherwise appropriated), 

10 $2,020,000,000 for each of fiscal years 2010 and 2011. 

11 (b) CHAPTER 2.—There are authorized to be appro12 priated, and there are appropriated, to carry out chapter 

13 2 of this subtitle (in addition to any other amounts appro14 priated to carry out such chapter and out of any money 

15 in the Treasury not otherwise appropriated), $30,000,000 

16 for each of fiscal years 2010 and 2011. 

17 (c) PROHIBITION ON EARMARKS.—None of the funds 

18 appropriated under this section may be used for a Con19 gressional earmark as defined in clause 9(d) of rule XXI 

20 of the Rules of the House of Representatives. 

21 (d) SUNSET.—The authority to award grants under 

22 this subtitle shall expire at the end of fiscal year 2011. 
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1 Subtitle B—Higher Education 

2 SEC. 351. FEDERAL ASSISTANCE FOR COMMUNITY COL3 LEGE MODERNIZATION AND CONSTRUCTION. 

4 (a) IN GENERAL.— 

5 (1) GRANT PROGRAM.—From the amounts 

6 made available under subsection (i), the Secretary 

7 shall award grants to States for the purposes of con8 structing new community college facilities and mod9 ernizing, renovating, and repairing existing commu10 nity college facilities. Grants awarded under this sec11 tion shall be used by a State for one or more of the 

12 following: 

13 (A) To reduce financing costs of loans for 

14 new construction, modernization, renovation, or 

15 repair projects at community colleges (such as 

16 paying interest or points on such loans). 

17 (B) To provide matching funds for a com18 munity college capital campaign to attract pri19 vate donations of funds for new construction, 

20 modernization, renovation, or repair projects at 

21 the community college. 

22 (C) To capitalize a revolving loan fund to 

23 finance new construction, modernization, ren24 ovation, and repair projects at community col25 leges. 
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1 (2) ALLOCATION.— 

2 (A) DETERMINATION OF AVAILABLE

3 AMOUNT.—The Secretary shall determine the 

4 amount available for allocation to each State by 

5 determining the amount equal to the total num6 ber of students in the State who are enrolled in 

7 community colleges and who are pursuing a de8 gree or certificate that is not a bachelor’s, mas9 ter’s, professional, or other advanced degree, 

10 relative to the total number of such students in 

11 all States, combined. 

12 (B) ALLOCATION.—The Secretary shall al13 locate to each State selected by the Secretary to 

14 receive a grant under this section an amount 

15 equal to the amount determined to be available 

16 for allocation to such State under subparagraph 

17 (A), less any portion of that amount that is 

18 subject to a limitation under paragraph (3). 

19 (C) REALLOCATION.—Amounts not allo20 cated under this section to a State because— 

21 (i) the State did not submit an appli22 cation under subsection (b); 

23 (ii) the State submitted an application 

24 that the Secretary determined did not meet 

25 the requirements of such subsection; or 
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1 (iii) the State is subject to a limita2 tion under paragraph (3) that prevents the 

3 State from using a portion of the alloca4 tion, 

5 shall be proportionately reallocated under this 

6 paragraph to the States that are not described 

7 in clause (i), (ii), or (iii) of this subparagraph. 

8 (3) GRANT AMOUNT LIMITATIONS.—A grant 

9 awarded to a State under this section— 

10 (A) to reduce financing costs of loans for 

11 new construction, modernization, renovation, or 

12 repair projects at community colleges under 

13 paragraph (1)(A) shall be for an amount that 

14 is not more than 25 percent of the total prin15 cipal amount of the loans for which financing 

16 costs are being reduced; and 

17 (B) to provide matching funds for a com18 munity college capital campaign under para19 graph (1)(B) shall be for an amount that is not 

20 more than 25 percent of the total amount of 

21 the private donations of funds raised through 

22 such campaign over the duration of such cam23 paign, as such duration is determined by the 

24 State in the application submitted under sub25 section (b). 
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1 (4) SUPPLEMENT, NOT SUPPLANT.—Funds 

2 made available under this section shall be used to 

3 supplement, and not supplant, other Federal, State, 

4 and local funds that would otherwise be expended to 

5 construct new community college facilities or mod6 ernize, renovate, or repair existing community col7 lege facilities. 

8 (b) APPLICATION.—A State that desires to receive a 

9 grant under this section shall submit an application to the 

10 Secretary at such time, in such manner, and containing 

11 such information and assurances as the Secretary may re12 quire. Such application shall include a certification by the 

13 State that the funds provided under this section for the 

14 construction of new community college facilities and the 

15 modernization, renovation, and repair of existing commu16 nity college facilities will improve instruction at such col17 leges and will improve the ability of such colleges to edu18 cate and train students to meet the workforce needs of 

19 employers in the State. 

20 (c) USE OF FUNDS BY COMMUNITY COLLEGES.— 

21 (1) PERMISSIBLE USES OF FUNDS.—Funds 

22 made available to community colleges through a loan 

23 described in subsection (a)(1)(A), a capital campaign 

24 described in subsection (a)(1)(B), or a loan from a 

25 revolving loan fund described in subsection (a)(1)(C) 
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1 shall be used only for the construction, moderniza2 tion, renovation, or repair of community college fa3 cilities that are primarily used for instruction, re4 search, or student housing, which may include any 

5 of the following: 

6 (A) Repair, replacement, or installation of 

7 roofs, including extensive, intensive, or semi-in8 tensive green roofs, electrical wiring, water sup9 ply and plumbing systems, sewage systems, 

10 storm water runoff systems, lighting systems, 

11 building envelope, windows, ceilings, flooring, or 

12 doors, including security doors. 

13 (B) Repair, replacement, or installation of 

14 heating, ventilation, or air conditioning systems, 

15 including insulation, and conducting indoor air 

16 quality assessments. 

17 (C) Compliance with fire, health, seismic, 

18 and safety codes, including professional installa19 tion of fire and life safety alarms, and mod20 ernizations, renovations, and repairs that en21 sure that the community college’s facilities are 

22 prepared for emergencies, such as improving 

23 building infrastructure to accommodate security 

24 measures and installing or upgrading tech25 nology to ensure that the community college is 
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1 able to respond to emergencies such as acts of 

2 terrorism, campus violence, and natural disas3 ters. 

4 (D) Retrofitting necessary to increase the 

5 energy efficiency of the community college’s fa6 cilities. 

7 (E) Modifications necessary to make facili8 ties accessible in compliance with the Americans 

9 with Disabilities Act of 1990 (42 U.S.C. 12101 

10 et seq.) and section 504 of the Rehabilitation 

11 Act of 1973 (29 U.S.C. 794). 

12 (F) Abatement, removal, or interim con13 trols of asbestos, polychlorinated biphenyls, 

14 mold, mildew, or lead-based hazards, including 

15 lead-based paint hazards from the community 

16 college’s facilities. 

17 (G) Modernization, renovation, or repair 

18 necessary to reduce the consumption of coal, 

19 electricity, land, natural gas, oil, or water. 

20 (H) Modernization, renovation, and repair 

21 relating to improving science and engineering 

22 laboratories, libraries, or instructional facilities. 

23 (I) Installation or upgrading of educational 

24 technology infrastructure. 
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1 (J) Installation or upgrading of renewable 

2 energy generation and heating systems, includ3 ing solar, photovoltaic, wind, biomass (including 

4 wood pellet and woody biomass), waste-to-en5 ergy, solar-thermal and geothermal systems, 

6 and energy audits. 

7 (K) Expansion or building of computer lab 

8 facilities, including facilities used to provide in9 formation technology training to students and 

10 members of the public. 

11 (L) Other modernization, renovation, or re12 pair projects that are primarily for instruction, 

13 research, or student housing. 

14 (M) Required environmental remediation 

15 related to modernization, renovation, or repair 

16 described in subparagraphs (A) through (L). 

17 (2) GREEN SCHOOL REQUIREMENT.—A commu18 nity college receiving assistance through a loan de19 scribed in subsection (a)(1)(A), a capital campaign 

20 described in subsection (a)(1)(B), or a loan from a 

21 revolving loan fund described in subsection (a)(1)(C) 

22 shall use not less than 50 percent of such assistance 

23 to carry out projects for construction, moderniza24 tion, renovation, or repair that are certified, verified, 

25 or consistent with the applicable provisions of— 
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1 (A) the LEED Green Building Rating Sys2 tem; 

3 (B) Energy Star; 

4 (C) the CHPS Criteria, as applicable; 

5 (D) Green Globes; or 

6 (E) an equivalent program adopted by the 

7 State or the State higher education agency that 

8 includes a verifiable method to demonstrate 

9 compliance with such program. 

10 (3) PROHIBITED USES OF FUNDS.— 

11 (A) IN GENERAL.—No funds awarded 

12 under this section may be used for— 

13 (i) payment of maintenance costs; 

14 (ii) construction, modernization, ren15 ovation, or repair of stadiums or other fa16 cilities primarily used for athletic contests 

17 or exhibitions or other events for which ad18 mission is charged to the general public; or 

19 (iii) construction, modernization, ren20 ovation, or repair of facilities— 

21 (I) used for sectarian instruction, 

22 religious worship, or a school or de23 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. 
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1 (f) REPORTS BY THE STATES.—Each State that re2 ceives a grant under this section shall, not later than Sep3 tember 30, 2012, and annually thereafter for each fiscal 

4 year in which the State expends funds received under this 

5 section, submit to the Secretary a report that includes— 

6 (1) a description the projects for which the 

7 grant funding was, or will be, used; 

8 (2) a list of the community colleges that have 

9 received, or will receive, assistance from the grant 

10 through a loan described in subsection (a)(1)(A), a 

11 capital campaign described in subsection (a)(1)(B), 

12 or a loan from a revolving loan fund described in 

13 subsection (a)(1)(C); and 

14 (3) a description of the amount and nature of 

15 the assistance provided to each such college. 

16 (g) REPORT BY THE SECRETARY.—The Secretary 

17 shall submit to the authorizing committees (as defined in 

18 section 103 of the Higher Education Act of 1965) an an19 nual report on the grants made under this section, includ20 ing the information described in subsection (f). 

21 (h) DEFINITIONS.— 

22 (1) COMMUNITY COLLEGE.—As used in this 

23 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 (7) STATE.—The term ‘‘State’’ has the mean10 ing given such term in section 103 of the Higher 

11 Education Act of 1965 (20 U.S.C. 1003). 

12 (i) AVAILABILITY OF FUNDS.—There are authorized 

13 to be appropriated, and there are appropriated, to carry 

14 out this section (in addition to any other amounts appro15 priated to carry out this section and out of any money 

16 in the Treasury not otherwise appropriated), 

17 $2,500,000,000 for fiscal year 2010, which shall remain 

18 available until expended. The authority to award grants 

19 under this section shall expire at the end of fiscal year 

20 2010. 

21 TITLE IV—EARLY LEARNING 

22 CHALLENGE FUND 

23 SEC. 401. PURPOSE. 

24 The purpose of this title is to provide grants on a 

25 competitive basis to States for the following: 
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1 (1) To promote standards reform of State early 

2 learning programs serving children from birth 

3 through age 5 in order to support the healthy devel4 opment and improve the school readiness outcomes 

5 of young children. 

6 (2) To establish a high standard of quality in 

7 early learning programs that integrates appropriate 

8 early learning and development standards across 

9 early learning settings. 

10 (3) To fund and implement quality initiatives 

11 that improve the skills and effectiveness of early 

12 learning providers and the quality of existing early 

13 learning programs, in order to increase the number 

14 of disadvantaged children who participate in com15 prehensive and high-quality early learning programs. 

16 (4) To ensure that a greater number of dis17 advantaged children enter kindergarten with the cog18 nitive, social, emotional, and physical skills and abili19 ties needed to be successful in school. 

20 (5) To increase parents’ abilities to access com21 prehensive and high quality early learning programs 

22 across settings for their children. 

23 SEC. 402. PROGRAMS AUTHORIZED. 

24 (a) QUALITY PATHWAYS GRANTS.—The Secretary 

25 shall use funds made available to carry out this title for 
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1 a fiscal year to award grants on a competitive basis to 

2 States in accordance with section 403. 

3 (b) DEVELOPMENT GRANTS.—The Secretary shall 

4 use funds made available to carry out this title for a fiscal 

5 year to award grants in accordance with section 404 on 

6 a competitive basis to States that demonstrate a commit7 ment to establishing a system of early learning that will 

8 include the components described in section 403(c)(3) but 

9 are not— 

10 (1) eligible to be awarded a grant under sub11 section (a); or 

12 (2) are not awarded such a grant after applica13 tion. 

14 (c) RESERVATIONS OF FEDERAL FUNDS.— 

15 (1) RESEARCH, EVALUATION, AND ADMINISTRA16 TION.—From the amount made available to carry 

17 out this title for a fiscal year, the Secretary— 

18 (A) shall reserve up to 2 percent jointly to 

19 administer this title with the Secretary of 

20 Health and Human Services; and 

21 (B) shall reserve up to 3 percent to carry 

22 out activities under section 405. 

23 (2) TRIBAL SCHOOL READINESS PLANNING

24 DEMONSTRATION.—After making the reservations 

25 under paragraph (1), the Secretary shall reserve 
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1 0.25 percent for a competitive grant program for In2 dian tribes to develop and implement school readi3 ness plans that— 

4 (A) are coordinated with local educational 

5 agencies serving children who are members of 

6 the tribe; and 

7 (B) include American Indian and Alaska 

8 Native Head Start and Early Head Start pro9 grams, tribal child care programs, Indian 

10 Health Service programs, and other tribal pro11 grams serving children, including programs re12 ceiving funds under sections 611(h)(4) and 

13 643(b) of the Individuals with Disabilities Edu14 cation Act (20 U.S.C. 1411(h)(4) and 1443(b)). 

15 (3) QUALITY PATHWAYS GRANTS.— 

16 (A) IN GENERAL.—From the amount made 

17 available to carry out this title for a fiscal year 

18 and not reserved under paragraph (1) or (2), 

19 the Secretary shall reserve a percent (which 

20 shall be not greater than 65 percent for fiscal 

21 years 2010 through 2012 and not greater than 

22 85 percent for fiscal year 2013 and each suc23 ceeding fiscal year) determined under subpara24 graph (B) to carry out subsection (a). 
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1 (B) DETERMINATION OF AMOUNT.—In de2 termining the amount to reserve under subpara3 graph (A), the Secretary, consistent with sec4 tion 403(e), shall take into account the fol5 lowing: 

6 (i) The total number of States with an 

7 approved application for a grant under this 

8 title for the year. 

9 (ii) The number of children under age 

10 5 from low-income families in each State 

11 with an approved application under section 

12 403 for the year. 

13 (C) REALLOCATION.—For fiscal year 2013 

14 and subsequent fiscal years, the Secretary may 

15 reallocate funds allocated for development 

16 grants under subsection (b) for the purpose of 

17 providing additional grants under subsection 

18 (a), if the Secretary determines that there is an 

19 insufficient number of applications that meet 

20 the requirements for a grant under subsection 

21 (b). 

22 (d) STATE APPLICATIONS.—In applying for a grant 

23 under this title, a State— 

24 (1) shall designate a State-level entity for ad25 ministration of the grant; 
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1 (2) shall coordinate proposed activities with the 

2 State Advisory Council on Early Childhood Edu3 cation and Care (established pursuant to section 

4 642B(b)(1)(A) of the Head Start Act (42 U.S.C. 

5 9837b(b)(1)(A))) and shall incorporate plans and 

6 recommendations from such Council in the applica7 tion, where applicable; and 

8 (3) otherwise shall submit the application to the 

9 Secretary at such time, in such manner, and con10 taining such information as the Secretary may rea11 sonably require. 

12 (e) PRIORITY IN AWARDING GRANTS.—In awarding 

13 grants under this title, the Secretary shall give priority 

14 to States— 

15 (1) whose applications contain assurances that 

16 the State will use, in part, funds reserved under sec17 tion 658G of the Child Care and Development Block 

18 Grant Act of 1990 (42 U.S.C. 9858e) for activities 

19 described in section 403(f); and 

20 (2) that demonstrate efforts to build public-pri21 vate partnerships designed to accomplish the pur22 poses of this title. 

23 (f) MAINTENANCE OF EFFORT.— 

24 (1) IN GENERAL.—With respect to each period 

25 for which a State is awarded a grant under this 
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1 title, the aggregate expenditures by the State and its 

2 political subdivisions on early learning programs and 

3 services shall be not less than the level of the ex4 penditures for such programs and services by the 

5 State and its political subdivisions for fiscal year 

6 2006. 

7 (2) STATE EXPENDITURES.—For purposes of 

8 paragraph (1), expenditures by the State on early 

9 learning programs and services shall include, at a 

10 minimum, the following: 

11 (A) State matching and maintenance of ef12 fort funds for the Child Care and Development 

13 Block Grant Act of 1990 (42 U.S.C. 9858 et 

14 seq.). 

15 (B) State matching funds for the State 

16 Advisory Council on Early Childhood Education 

17 and Care (established pursuant to section 

18 642B(b)(1)(A) of the Head Start Act (42 

19 U.S.C. 9837b(b)(1)(A))). 

20 (C) State expenditures on public pre-kin21 dergarten, Head Start (including Early Head 

22 Start), and other State early learning programs 

23 and services dedicated to children (including 

24 State expenditures under part C of the Individ-
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1 uals with Disabilities Education Act (20 U.S.C. 

2 1431 et seq.)). 

3 (g) PROHIBITIONS ON USE OF FUNDS.—Funds 

4 under this title may not be used for any of the following: 

5 (1) Assessments that provide rewards or sanc6 tions for individual children or teachers. 

7 (2) A single assessment used as the primary or 

8 sole method for assessing program effectiveness. 

9 (3) Evaluating children other than for— 

10 (A) improving instruction or classroom en11 vironment; 

12 (B) targeting professional development; 

13 (C) determining the need for health, men14 tal health, disability, or family support services; 

15 (D) informing the quality improvement 

16 process at the State level; 

17 (E) program evaluation for the purposes of 

18 program improvement and parent information; 

19 or 

20 (F) research conducted as part of the na21 tional evaluation required by section 405(2). 

22 (h) FEDERAL ADMINISTRATION.— 

23 (1) IN GENERAL.—With respect to this title, 

24 the Secretary shall bear responsibility for obligating 

25 and disbursing funds and ensuring compliance with 
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1 applicable laws and administrative requirements, 

2 subject to paragraph (2). 

3 (2) INTERAGENCY AGREEMENT.—The Secretary 

4 of Education and the Secretary of Health and 

5 Human Services shall jointly administer this title on 

6 such terms as such secretaries shall set forth in an 

7 interagency agreement. 

8 SEC. 403. QUALITY PATHWAYS GRANTS. 

9 (a) GRANT PERIOD.—Grants under section 402(a)— 

10 (1) may be awarded for a period not to exceed 

11 5 years; and 

12 (2) may be renewed, subject to approval by the 

13 Secretary, and based on the State’s progress in— 

14 (A) increasing the percentage of disadvan15 taged children in each age group (infants, tod16 dlers, and preschoolers) who participate in high17 quality early learning programs; 

18 (B) increasing the number of high-quality 

19 early learning programs in low-income commu20 nities; 

21 (C) implementing an early learning system 

22 that includes the components described in sub23 section (c)(3); 

24 (D) incorporating the findings and rec25 ommendations reported by the commission es-
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1 tablished under section 405(1) into the State 

2 system of early learning; and 

3 (E) committing State resources for sup4 porting early learning programs and services. 

5 (b) MATCHING REQUIREMENT.— 

6 (1) IN GENERAL.—Subject to subsection (g), to 

7 be eligible to receive a grant under section 402(a), 

8 a State shall contribute to the activities assisted 

9 under the grant non-Federal matching funds in an 

10 amount equal to not less than the applicable percent 

11 of the amount of the grant. 

12 (2) APPLICABLE PERCENT.—For purposes of 

13 paragraph (1), the applicable percent means— 

14 (A) 10 percent in the first fiscal year of 

15 the grant; 

16 (B) 10 percent in the second fiscal year of 

17 the grant; 

18 (C) 15 percent in the third fiscal year of 

19 the grant; and 

20 (D) 20 percent in the fourth fiscal year of 

21 the grant and subsequent fiscal years. 

22 (3) NON-FEDERAL FUNDS.—A State may use 

23 the following to satisfy the requirement of paragraph 

24 (1): 

25 (A) Cash. 
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1 (B) In-kind contributions for the acquisi2 tion, construction, or improvement of early 

3 learning program facilities serving disadvan4 taged children. 

5 (C) Technical assistance related to sub6 paragraph (B). 

7 (4) PRIVATE CONTRIBUTIONS.—Private con8 tributions made as part of public-private partner9 ships to increase the number of low-income children 

10 in high-quality early learning programs in a State 

11 may be used by the State to satisfy the requirement 

12 of paragraph (1). 

13 (5) FINANCIAL HARDSHIP WAIVER.—The Sec14 retary may waive or reduce the non-Federal share of 

15 a State that has submitted an application for a 

16 grant under section 402(a) if the State demonstrates 

17 a need for such waiver or reduction due to extreme 

18 financial hardship, as defined by the Secretary by 

19 regulation. 

20 (c) STATE APPLICATIONS.—In order to be considered 

21 for a grant under section 402(a), a State’s application 

22 under section 402(d) shall include the following: 

23 (1) A description of how the State will use the 

24 grant to implement quality initiatives to improve 

25 early learning programs serving disadvantaged chil-
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1 dren from birth to age 5 to lead to a greater per2 centage of such children participating in higher 

3 quality early learning programs. 

4 (2) A description of the goals and benchmarks 

5 the State will establish to lead to a greater percent6 age of disadvantaged children participating in higher 

7 quality early learning programs to improve school 

8 readiness outcomes, including an established baseline 

9 of the number of disadvantaged children in high10 quality early learning programs. 

11 (3) A description of how the State will imple12 ment a governance structure and a system of early 

13 learning programs and services that includes the fol14 lowing components: 

15 (A) Not later than 12 months after receiv16 ing notice of an award of the grant, complete 

17 State early learning and development standards 

18 that include social and emotional, cognitive, and 

19 physical development domains, and approaches 

20 to learning that are developmentally appro21 priate (including culturally and linguistically 

22 appropriate) for all children. 

23 (B) A process to ensure that State early 

24 learning and development standards are inte25 grated into the instructional and programmatic 
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1 practices of early learning programs and serv2 ices, including services provided to children 

3 under section 619 and part C of the Individuals 

4 with Disabilities Education Act (20 U.S.C. 

5 1419, 1431 et seq.). 

6 (C) A program rating system that builds 

7 on licensing requirements and other State regu8 latory standards, as appropriate, and that— 

9 (i) is designed to improve quality and 

10 effectiveness across different types of early 

11 learning settings; 

12 (ii) integrates evidence-based program 

13 quality standards that reflect standard lev14 els of quality and has progressively higher 

15 levels of program quality; 

16 (iii) integrates the State’s early learn17 ing and development standards for the 

18 purpose of improving instructional and 

19 programmatic practices; 

20 (iv) addresses quality and effective in21 clusion of children with disabilities or de22 velopmental delays across different types of 

23 early learning settings; 

24 (v) addresses staff qualifications and 

25 professional development; 
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1 (vi) provides financial incentives and 

2 other supports to help programs meet and 

3 sustain higher levels of quality; 

4 (vii) includes mechanisms for evalu5 ating how programs are meeting those 

6 standards and progressively higher levels 

7 of quality; and 

8 (viii) includes a mechanism for public 

9 awareness and understanding of the pro10 gram rating system, including the rating 

11 levels of individual programs. 

12 (D) A system of program review and moni13 toring that is designed to rate early learning 

14 programs using the system described in sub15 paragraph (C) and to assess and improve pro16 grammatic practices, instructional practices, 

17 and classroom environment. 

18 (E) A process to support early learning 

19 programs integrating instructional and pro20 grammatic practices that— 

21 (i) include developmentally appro22 priate (including culturally and linguis23 tically appropriate), ongoing, classroom24 based instructional assessments for each 

25 domain of child development and learning 
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1 (including social and emotional, cognitive, 

2 and physical development domains and ap3 proaches to learning) to guide and improve 

4 instructional practice, professional develop5 ment of staff, and services; and 

6 (ii) are aligned with the curricula used 

7 in the early learning program and with the 

8 State early learning and development 

9 standards or the Head Start Child Out10 comes Framework (as described in the 

11 Head Start Act), as applicable. 

12 (F) Minimum preservice early childhood 

13 development and education training require14 ments for providers in early learning programs. 

15 (G) A comprehensive plan for supporting 

16 the professional preparation and the ongoing 

17 professional development of an effective, well18 compensated early learning workforce, which 

19 plan includes training and education that is 

20 sustained, intensive, and classroom-focused and 

21 leads toward a credential or degree and is tied 

22 to improved compensation. 

23 (H) An outreach strategy to promote un24 derstanding by parents and families of— 
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1 (i) how to support their child’s early 

2 development and learning; 

3 (ii) the State’s program rating sys4 tem, as described in subparagraph (C); 

5 and 

6 (iii) the rating of the early learning 

7 program in which their child is enrolled. 

8 (I) A coordinated system to facilitate 

9 screening, referral, and provision of services re10 lated to health, mental health, dental, develop11 mental delay and disability, and family support 

12 for children participating in early learning pro13 grams. 

14 (J) A process for evaluating school readi15 ness in children that reflects all of the major 

16 domains of development, and that is used to 

17 guide practice and improve early learning pro18 grams. 

19 (K) A coordinated data infrastructure that 

20 facilitates— 

21 (i) uniform data collection about the 

22 quality of early learning programs, essen23 tial information about the children and 

24 families that participate in such programs, 

25 and the qualifications and compensation of 
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1 the early learning workforce in such pro2 grams; and 

3 (ii) alignment and interoperability be4 tween the data system for early learning 

5 programs for children and data systems for 

6 elementary and secondary education. 

7 (4) A description of how the funds provided 

8 under the grant will be targeted to prioritize increas9 ing the number and percentage of low-income chil10 dren in high-quality early learning programs, includ11 ing children— 

12 (A) in each age group (infants, toddlers, 

13 and preschoolers); 

14 (B) with developmental delays and disabil15 ities; 

16 (C) with limited English proficiency; and 

17 (D) living in rural areas. 

18 (5) An assurance that the grant will be used to 

19 improve the quality of early learning programs 

20 across a range of types of settings and providers of 

21 such programs. 

22 (6) A description of the steps the State will 

23 take to make progress toward including all center24 based child care programs, family child care pro25 grams, State-funded prekindergarten, Head Start 
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1 programs, and other early learning programs, such 

2 as those funded under title I of the Elementary and 

3 Secondary Education Act of 1965 (20 U.S.C. 6301 

4 et seq.) or receiving funds under section 619 or part 

5 C of the Individuals with Disabilities Education Act 

6 (20 U.S.C. 1419, 1431 et seq.) in the State program 

7 rating system described in paragraph (3)(C). 

8 (7) An assurance that the State, not later than 

9 18 months after receiving notice of an award of the 

10 grant, will conduct an analysis of the alignment of 

11 the State’s early learning and development stand12 ards with— 

13 (A) appropriate academic content stand14 ards for grades kindergarten through 3; and 

15 (B) elements of program quality standards 

16 for early learning programs. 

17 (8) An assurance that the grant will be used 

18 only to supplement, and not to supplant, Federal, 

19 State, and local funds otherwise available to support 

20 existing early learning programs and services. 

21 (9) A description of any disparity by age group 

22 (infants, toddlers, and preschoolers) of available 

23 high-quality early learning programs in low-income 

24 communities and the steps the State will take to de25 crease such disparity, if applicable. 
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1 (10) A description of how the State early learn2 ing and development standards will address the 

3 needs of children with limited English proficiency, 

4 including by incorporating benchmarks related to 

5 English language development. 

6 (11) A description of how the State’s profes7 sional development plan will prepare the early learn8 ing workforce to support the early learning needs of 

9 children with limited English proficiency. 

10 (12) A description of how the State will im11 prove interagency collaboration and coordinate the 

12 purposes of this title with the activities funded 

13 under— 

14 (A) section 658G of the Child Care and 

15 Development Block Grant Act of 1990 (42 

16 U.S.C. 9858e); 

17 (B) section 619 and part C of the Individ18 uals with Disabilities Education Act (20 U.S.C. 

19 1419, 1431 et seq.); 

20 (C) title I of the Elementary and Sec21 ondary Education Act of 1965 (20 U.S.C. 6301 

22 et seq.); 

23 (D) State-funded pre-kindergarten pro24 grams (where applicable); 

25 (E) Head Start programs; and 
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1 (F) other early childhood programs and 

2 services. 

3 (13) A description of how the State’s early 

4 learning policies, including child care policies, facili5 tate access to high-quality early learning programs 

6 for children from low-income families. 

7 (14) A description of how the State will imple8 ment a process for improving the quality of early 

9 learning services to better meet the needs of children 

10 who have experienced abuse or neglect, been exposed 

11 to violence, toxic stress, parental substance abuse, 

12 mental illness, or homelessness, or have had early 

13 behavioral and peer relationship problems, including 

14 addressing appropriate professional development, 

15 programmatic practices, classroom environment, and 

16 outreach and support to meet the needs of such chil17 dren. 

18 (15) A description of any disparity by geo19 graphic area (urban and rural) of available high20 quality early learning programs for low-income chil21 dren and the steps the State will take to decrease 

22 such disparity, if applicable. 

23 (16) An assurance that the State will continue 

24 to participate in part C of the Individuals with Dis-
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1 abilities Education Act (20 U.S.C. 1431 et seq.) for 

2 the duration of the grant. 

3 (d) CRITERIA USED IN AWARDING GRANTS.—In 

4 awarding grants under section 402(a), the Secretary shall 

5 evaluate the applications, and award grants under such 

6 section on a competitive basis, based on— 

7 (1) the quality of the application submitted pur8 suant to section 402(d); 

9 (2) the priority factors described in section 

10 402(e); 

11 (3) evidence of significant progress in estab12 lishing a system of early learning for children that 

13 includes the components described in subsection 

14 (c)(3); and 

15 (4) the State’s capacity to fully complete imple16 mentation of such a system. 

17 (e) CRITERION USED IN DETERMINING AMOUNT OF

18 AWARD.—In determining the amount to award a State 

19 under section 402(a), the Secretary shall take into ac20 count— 

21 (1) the proportion of children under age 5 from 

22 low-income families in the State relative to such pro23 portion in other States; and 
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1 (2) the State plan and capacity to implement 

2 the criteria described in paragraphs (3) and (4) of 

3 subsection (d). 

4 (f) STATE USES OF FUNDS.— 

5 (1) IN GENERAL.—A State receiving a grant 

6 under section 402(a) shall use the grant as follows: 

7 (A) Not less than 65 percent of the grant 

8 amount shall be used for two or more of the fol9 lowing activities to improve the quality of early 

10 learning programs serving disadvantaged chil11 dren: 

12 (i) Initiatives that improve the creden13 tials of early learning providers and are 

14 tied to increased compensation. 

15 (ii) Initiatives that help early learning 

16 programs meet and sustain higher pro17 gram quality standards, such as— 

18 (I) improving the ratio of early 

19 learning provider to children in early 

20 learning settings; 

21 (II) reducing group size; 

22 (III) improving the qualifications 

23 of early learning providers; and 

24 (IV) supporting effective edu25 cation and training for early learning 
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1 providers (which may include estab2 lishing or supporting partnerships 

3 with institutions of higher education 

4 (as such term is defined in section 

5 101 of the Higher Education Act of 

6 1965 (20 U.S.C. 1001) to support 

7 such education and training). 

8 (iii) Implementing classroom observa9 tion assessments and data-driven decisions 

10 (which may include implementation of a 

11 research-based prevention and intervention 

12 framework designed to build social com13 petence and prevent challenging behaviors) 

14 tied to activities that improve instructional 

15 practices, programmatic practices, or class16 room environment and promote school 

17 readiness. 

18 (iv) Providing financial incentives to 

19 early learning programs— 

20 (I) for undertaking quality im21 provements that promote healthy de22 velopment and school readiness; and 

23 (II) maintaining quality improve24 ments that promote healthy develop25 ment and school readiness. 
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1 (v) Integrating State early learning 

2 and development standards into instruc3 tional and programmatic practices in early 

4 learning programs. 

5 (vi) Providing high-quality, sustained, 

6 intensive, and classroom-focused profes7 sional development that improves the 

8 knowledge and skills of early learning pro9 viders, including professional development 

10 related to meeting the needs of diverse 

11 populations. 

12 (vii) Building the capacity of early 

13 learning programs and communities to pro14 mote the understanding of parents and 

15 families of the State’s early learning sys16 tem and the rating of the early learning 

17 program in which their child is enrolled 

18 and to encourage the active involvement 

19 and engagement of parents and families in 

20 the learning and development of their chil21 dren. 

22 (viii) Building the capacity of early 

23 learning programs and communities to fa24 cilitate screening, referral, and provision of 

25 services related to health, mental health, 
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1 dental, developmental delay and disability, 

2 and family support for children partici3 pating in early learning programs. 

4 (ix) Other innovative activities, pro5 posed by the State and approved in ad6 vance by the Secretary that are— 

7 (I) based on successful practices; 

8 (II) designed to improve the 

9 quality of early learning programs and 

10 services; and 

11 (III) advance the system compo12 nents described in subsection (c)(3). 

13 (B) The remainder of the grant amount 

14 may be used for one or more of the following: 

15 (i) Implementation or enhancement of 

16 the State’s data system described in sub17 section (c)(3)(K), including interoperability 

18 across agencies serving children, and 

19 unique child and program identifiers. 

20 (ii) Enhancement of the State’s over21 sight system for early learning programs, 

22 including the implementation of a program 

23 rating system. 

24 (iii) The development and implemen25 tation of measures of school readiness of 
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1 children that reflect all of the major do2 mains of child development and that in3 form the quality improvement process. 

4 (2) PRIORITY.—A State receiving a grant under 

5 section 402(a) shall use the grant so as to prioritize 

6 improving the quality of early learning programs 

7 serving children from low-income families. 

8 (g) SPECIAL RULE.— 

9 (1) IN GENERAL.—Beginning with the second 

10 fiscal year of a grant under section 402(a), a State 

11 with respect to which the Secretary certifies that the 

12 State has made sufficient progress in implementing 

13 the requirements of the grant may apply to the Sec14 retary to reserve up to 25 percent of the amount of 

15 the grant to expand access for children from low-in16 come families to the highest quality early learning 

17 programs that offer full-day services (or, if the State 

18 can demonstrate that it is already meeting the needs 

19 of such children in such manner, the State may 

20 apply to expand access for disadvantaged children in 

21 such manner and the State’s application may not be 

22 adversely treated due to such request), except that 

23 the State must agree to contribute for such purpose 

24 non-Federal matching funds in an amount equal to 

25 not less than 20 percent of the amount reserved 
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1 under this subsection. One-half of such non-Federal 

2 matching funds may be provided by a private entity. 

3 (2) NON-FEDERAL FUNDS.—A State may use 

4 the following to satisfy the matching requirement of 

5 paragraph (1): 

6 (A) Cash. 

7 (B) In-kind contributions for the acquisi8 tion, construction, or improvement of early 

9 learning program facilities serving disadvan10 taged children. 

11 (C) Technical assistance related to sub12 paragraph (B). 

13 (3) FINANCIAL HARDSHIP WAIVER.—The Sec14 retary may waive or reduce the non-Federal share of 

15 a State under paragraph (1) if the State dem16 onstrates a need for such waiver or reduction due to 

17 extreme financial hardship, as defined by the Sec18 retary by regulation. 

19 (h) IMPROVEMENT PLAN.—If the Secretary deter20 mines that a State receiving a grant under section 402(a) 

21 is encountering barriers to reaching goals described in 

22 subsection (c)(2), the State shall develop a plan for im23 provement in consultation with, and subject to approval 

24 by, the Secretary. 
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1 SEC. 404. DEVELOPMENT GRANTS. 

2 (a) GRANT PERIOD.—Grants under section 402(b) 

3 may be awarded for a period not to exceed 3 years, and 

4 may not be renewed. 

5 (b) STATE USES OF FUNDS.— 

6 (1) IN GENERAL.—A State receiving a grant 

7 under section 402(b) shall use the grant to under8 take activities that develop the early learning system 

9 components described in section 403(c)(3) and that 

10 will improve a State’s competitiveness for a grant 

11 described in section 402(a). 

12 (2) PRIORITY.—A State receiving a grant under 

13 section 402(b) shall use the grant so as to prioritize 

14 improving the quality of early learning programs 

15 serving low-income children. 

16 (c) MATCHING REQUIREMENT.— 

17 (1) IN GENERAL.—To be eligible to receive a 

18 grant under section 402(b), a State shall contribute 

19 to the activities assisted under the grant non-Fed20 eral matching funds in an amount equal to not less 

21 than the applicable percent of the amount of the 

22 grant. 

23 (2) APPLICABLE PERCENT.—For purposes of 

24 paragraph (1), the applicable percent means— 

25 (A) 20 percent in the first fiscal year of 

26 the grant; 
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1 (B) 25 percent in the second fiscal year of 

2 the grant; and 

3 (C) 30 percent in the third fiscal year of 

4 the grant. 

5 (3) NON-FEDERAL FUNDS.—A State may use 

6 the following to satisfy the requirement of paragraph 

7 (1): 

8 (A) Cash. 

9 (B) In-kind contributions for the acquisi10 tion, construction, or improvement of early 

11 learning program facilities serving disadvan12 taged children. 

13 (C) Technical assistance related to sub14 paragraph (B). 

15 (4) 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 (5) 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, including taking into 

16 consideration the school readiness needs of chil17 dren with limited English proficiency; and 

18 (C) reporting to the Secretaries of Edu19 cation and Health and Human Services not 

20 later than 2 years after the date of the enact21 ment of this Act on the commission’s findings 

22 and recommendations. 

23 (2) Conducting a national evaluation of the 

24 grants made under this title through the Institute of 

25 Education Science in collaboration with the appro-
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1 priate research divisions within the Department of 

2 Health and Human Services. 

3 (3) Supporting a research collaborative among 

4 the Institute of Education Sciences, the National In5 stitute of Child Health and Human Development, 

6 the Office of Planning, Research, and Evaluation 

7 within the Administration for Children and Families 

8 in the Department of Health and Human Services, 

9 and, as appropriate, other Federal entities to sup10 port research on early learning that can inform im11 proved State and other standards and licensing re12 quirements and improved child outcomes, which col13 laborative shall— 

14 (A) biennially prepare and publish for pub15 lic comment a detailed research plan; 

16 (B) support early learning research activi17 ties that may include— 

18 (i) examining the characteristics of 

19 early learning programs that produce posi20 tive developmental outcomes for children; 

21 (ii) examining the effects of program 

22 quality standards on child outcomes; 

23 (iii) examining the relationships be24 tween specific interventions and types of 

25 child and family outcomes; 
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1 (iv) examining the effectiveness of 

2 early learning provider training in raising 

3 program quality and improving child out4 comes; 

5 (v) examining the effectiveness of pro6 fessional development strategies in raising 

7 program quality and improving child out8 comes; 

9 (vi) examining how to improve the 

10 school readiness outcomes of children with 

11 limited English proficiency, special needs, 

12 and homeless children, including evaluation 

13 of professional development programs for 

14 working with such children; and 

15 (vii) supporting the development of 

16 valid and reliable assessments of young 

17 children and program quality, including in 

18 domains including language, literacy, 

19 mathematics, science, social and emotional 

20 development, and approaches to learning, 

21 with particular attention to development of 

22 assessments of domains for which there 

23 are few appropriate assessments, that 

24 are— 
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1 (I) developmentally, linguistically, 

2 and culturally appropriate for the 

3 population served, including children 

4 with disabilities and children with lim5 ited English proficiency; 

6 (II) consistent with relevant, na7 tionally recognized professional and 

8 technical standards related to the as9 sessment of young children; 

10 (III) consistent with the guide11 lines on assessment for improved 

12 practice and for accountability in the 

13 National Research Council Committee 

14 on Developmental Outcomes and As15 sessments for Young Children; and 

16 (C) disseminate relevant research findings 

17 and best practices. 

18 (4) Not later than 18 months after the date of 

19 the enactment of this Act, conducting a review of 

20 the statewide strategic reports developed by the 

21 State Advisory Councils on Early Care and Edu22 cation (established pursuant to section 

23 642B(b)(1)(A) of the Head Start Act (42 U.S.C. 

24 9837b(b)(1)(A))) and other relevant information (in25 cluding information reported by States under section 
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1 406(b)(9)) to evaluate barriers to increasing access 

2 to high-quality early learning programs for low-in3 come children, reporting on the findings of such re4 view, and disseminating relevant findings and best 

5 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 Committee on Education 

10 and Labor of the House of Representatives and the Com11 mittee on Health, Education, Labor and Pensions of the 

12 Senate on the activities carried out under this title, includ13 ing, at a minimum, information on the following: 

14 (1) The activities undertaken by States to in15 crease the availability of high-quality early learning 

16 programs. 

17 (2) The number of children in high-quality 

18 early learning programs, and the change from the 

19 prior year, disaggregated by State, age, and race. 

20 (3) The number of early learning providers en21 rolled, with assistance from funds under this title, in 

22 a program to obtain a credential or degree in early 

23 childhood education and the settings in which such 

24 providers work. 
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1 (4) A summary of State progress in imple2 menting a system of early learning with the compo3 nents described in section 403(c)(3). 

4 (5) A summary of the research activities being 

5 conducted under section 405 and the findings of 

6 such research. 

7 (b) REPORTS TO SECRETARY.—Each State that re8 ceives a grant under this title shall submit to the Secretary 

9 an annual report that includes, at a minimum, information 

10 on the activities carried out by the State under this title, 

11 including the following: 

12 (1) The State’s progress on fully implementing 

13 and integrating into a system of early learning each 

14 of the components described in section 403(c)(3). 

15 (2) The State’s progress in meeting its goals 

16 for increasing the number of disadvantaged children 

17 participating in high-quality early learning pro18 grams, disaggregated by child age. 

19 (3) The number and percentage of disadvan20 taged children participating in early learning pro21 grams at each level of quality, disaggregated by 

22 race, family income, child age, disability, and limited 

23 English proficiency status. 

24 (4) The number of early learning programs par25 ticipating in the State quality rating system, 
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1 disaggregated by setting, rating, and the number of 

2 high-quality early learning programs available in 

3 low-income communities. 

4 (5) Information on how the funds provided 

5 under this title were used to increase the availability 

6 of high-quality early learning programs for each age 

7 group, disaggregated by race and limited English 

8 proficiency status, to the maximum extent prac9 ticable. 

10 (6) Information on professional development 

11 and training expenditures, including— 

12 (A) the number of early learning providers 

13 and early learning programs engaged in such 

14 activities; and 

15 (B) the number of early learning providers 

16 enrolled in programs to obtain a credential or 

17 degree in early childhood education, 

18 disaggregated by the type of credential and de19 gree. 

20 (7) The change in the number and percentage 

21 of early learning providers with credentials or de22 grees in early childhood education, including the 

23 change in compensation given to such providers, in 

24 comparison to the prior fiscal year, disaggregated by 
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1 early learning setting and the type of credential or 

2 degree. 

3 (8) In the case of a State receiving a grant 

4 under section 402(a), the percentage of children re5 ceiving assistance under the Child Care and Devel6 opment Block Grant Act of 1990 (42 U.S.C. 9858 

7 et seq.) who participate in the highest quality early 

8 learning programs, disaggregated by program set9 ting and child age. 

10 (9) Barriers to expanding access to high-quality 

11 early learning programs for disadvantaged children. 

12 SEC. 407. CONSTRUCTION. 

13 Nothing in this title— 

14 (1) shall be construed to require a child to par15 ticipate in an early learning program; or 

16 (2) shall be used to deny entry to kindergarten 

17 for any individual if the individual is legally eligible, 

18 as defined by State or local law. 

19 SEC. 408. DEFINITIONS. 

20 For purposes of this title: 

21 (1) CHILD.—The term ‘‘child’’ refers to an in22 dividual from birth through the day the individual 

23 enters kindergarten. 

24 (2) DISADVANTAGED.—The term ‘‘disadvan25 taged’’, when used with respect to a child, means a 
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1 child whose family income is described in section 

2 658P(4)(B) of the Child Care and Development 

3 Block Grant Act of 1990 (42 U.S.C. 9858n(4)(B)). 

4 (3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

5 has the meaning given such term in section 637 of 

6 the Head Start Act (42 U.S.C. 9832). 

7 (4) LIMITED ENGLISH PROFICIENT.—The term 

8 ‘‘limited English proficient’’ has the meaning given 

9 such term in section 637 of the Head Start Act (42 

10 U.S.C. 9832). 

11 (5) SECRETARY.—The term ‘‘Secretary’’ means 

12 the Secretary of Education. 

13 (6) STATE.—The term ‘‘State’’ has the mean14 ing given such term in section 9101 of the Elemen15 tary and Secondary Education Act of 1965 (20 

16 U.S.C. 7801). 

17 SEC. 409. AVAILABILITY OF FUNDS. 

18 There are authorized to be appropriated, and there 

19 are appropriated, to carry out this title (in addition to any 

20 other amounts appropriated to carry out this title and out 

21 of any money in the Treasury not otherwise appropriated) 

22 $1,000,000,000 for each of fiscal years 2010 through 

23 2017. The authority to award grants under this title shall 

24 expire at the end of fiscal year 2017. 
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1 TITLE V—AMERICAN 

2 GRADUATION INITIATIVE 

3 SEC. 501. AUTHORIZATION AND APPROPRIATION. 

4 (a) AUTHORIZATION AND APPROPRIATION.—There 

5 are authorized to be appropriated, and there are appro6 priated, to carry out this title (in addition to any other 

7 amounts appropriated to carry out this title and out of 

8 any money in the Treasury not otherwise appropriated), 

9 $730,000,000 for each of the fiscal years 2010 through 

10 2013, and $680,000,000 for each of the fiscal years 2014 

11 through 2019. The authority to award grants under this 

12 title shall expire at the end of fiscal year 2019. 

13 (b) ALLOCATIONS.—Of the amount appropriated 

14 under subsection (a)— 

15 (1) $630,000,000 shall be made available for 

16 each of the fiscal years 2010 through 2013 to carry 

17 out section 503; 

18 (2) $630,000,000 shall be made available for 

19 each of the fiscal years 2014 through 2019 to carry 

20 out section 504; 

21 (3) $50,000,000 shall be made available for 

22 each of the fiscal years 2010 through 2019 to carry 

23 out subsection (a) of section 505; and 
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1 (4) $50,000,000 shall be made available for 

2 each of the fiscal years 2010 through 2013 to carry 

3 out subsections (b) and (c) of section 505. 

4 (c) RESPONSIBILITY.— 

5 (1) IN GENERAL.—With respect to sections 503 

6 and 504, the Secretary of Education shall bear the 

7 responsibility for obligating and disbursing funds 

8 under such sections and ensuring compliance with 

9 applicable law and administrative requirements, sub10 ject to paragraph (2). 

11 (2) INTERAGENCY AGREEMENT.—The Secretary 

12 of Education and the Secretary of Labor shall joint13 ly administer sections 503 and 504 on such terms 

14 as such Secretaries shall set forth in an interagency 

15 agreement. 

16 SEC. 502. DEFINITIONS; GRANT PRIORITY. 

17 In this title: 

18 (1) AREA CAREER AND TECHNICAL EDUCATION

19 SCHOOL.—The term ‘‘area career and technical edu20 cation school’’ has the meaning given such term in 

21 section 3 of the Carl D. Perkins Career and Tech22 nical Education Act of 2006 (20 U.S.C. 2302). 

23 (2) COMMUNITY COLLEGE.—The term ‘‘commu24 nity college’’ means a public institution of higher 

25 education at which the highest degree that is pre-
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1 dominantly awarded to students is an associate’s de2 gree. 

3 (3) ELIGIBLE ENTITY.—The term ‘‘eligible enti4 ty’’ means— 

5 (A) a community college or community col6 lege district that has at least one articulation 

7 agreement with a four-year institution of higher 

8 education; 

9 (B) an area career and technical education 

10 school that has at least one articulation agree11 ment with an institution of higher education; 

12 (C) a public four-year institution of higher 

13 education that— 

14 (i) offers two-year degrees; 

15 (ii) will use funds provided under this 

16 section for activities at the certificate and 

17 associate degree levels; and 

18 (iii) is not reasonably close, as deter19 mined by the Secretary, to a community 

20 college; 

21 (D) a Tribal College or University; 

22 (E) a public four-year institution of higher 

23 education that is in partnership with an eligible 

24 entity described in subparagraph (A), (B), (C), 

25 or (D); 
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1 (F) a State that— 

2 (i) is in compliance with section 137 

3 of the Higher Education Act of 1965 (20 

4 U.S.C. 1015f); 

5 (ii) has established and implemented a 

6 comprehensive articulation agreement be7 tween or among public institutions of high8 er education in the State that includes out9 lining the acceptability of community col10 lege courses in transfer for credit at public 

11 four-year institutions in the State; and 

12 (iii) is in partnership with an eligible 

13 entity described in subparagraph (A), (B), 

14 (C), (D), or (E); 

15 (G) a consortium of at least 2 entities de16 scribed in subparagraphs (A) through (F). 

17 (H) at the discretion of the Secretary, a 

18 private, not-for-profit, two-year institution of 

19 higher education in Puerto Rico, the District of 

20 Columbia, Guam, the United States Virgin Is21 lands, American Samoa, the Commonwealth of 

22 the Northern Mariana Islands, the Republic of 

23 the Marshall Islands, the Federated States of 

24 Micronesia, or the Republic of Palau. 
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1 (4) INDUSTRY OR SECTOR PARTNERSHIP.—The 

2 term ‘‘industry or sector partnership’’ has the mean3 ing given such term in section 782(f) of the Higher 

4 Education Act of 1965. 

5 (5) INSTITUTION OF HIGHER EDUCATION.—The 

6 term ‘‘institution of higher education’’ has the 

7 meaning given such term in section 101 of the High8 er Education Act of 1965 (20 U.S.C. 1001). 

9 (6) PHILANTHROPIC ORGANIZATION.—The term 

10 ‘‘philanthropic organization’’ has the meaning given 

11 such term in section 781(i) of the Higher Education 

12 Act of 1965 (20 U.S.C. 1141(i)). 

13 (7) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of Education. 

15 (8) 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 (9) 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 (10) 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 (29 

4 U.S.C. 2821) and a local workforce investment 

5 board established under section 117 of such Act (29 

6 U.S.C. 2832), respectively. 

7 (11) 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 (29 U.S.C. 2801(46)). 

11 (12) TRIBAL COLLEGE OR UNIVERSITY.—The 

12 term ‘‘Tribal College or University’’ has the meaning 

13 given such term in section 316 of the Higher Edu14 cation Act of 1965 (20 U.S.C. 1059c). 

15 SEC. 503. GRANTS TO ELIGIBLE ENTITIES FOR COMMUNITY 

16 COLLEGE REFORM. 

17 (a) PROGRAM AUTHORIZATION.— 

18 (1) GRANTS AUTHORIZED.— 

19 (A) IN GENERAL.—Subject to paragraph 

20 (2), from the amount appropriated to carry out 

21 this section, the Secretary, in coordination with 

22 the Secretary of Labor, shall award grants to 

23 eligible entities, on a competitive basis, to es24 tablish and support programs described in sub25 paragraph (B) at eligible entities described in 
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1 subparagraphs (A) through (E) of section 

2 502(a)(3). 

3 (B) PROGRAMS.—The programs to be es4 tablished and supported with grants under sub5 paragraph (A) (and carried out through activi6 ties described in subsection (f)) shall be pro7 grams— 

8 (i) that are— 

9 (I) innovative programs; or 

10 (II) programs of demonstrated 

11 effectiveness, based on the evaluations 

12 of similar programs funded by the De13 partment of Education or the Depart14 ment of Labor, or other research of 

15 similar programs; and 

16 (ii) that lead to the completion of a 

17 postsecondary degree, certificate, or indus18 try-recognized credential leading to a 

19 skilled occupation in a high-demand indus20 try. 

21 (2) LIMITATION.—For each fiscal year for 

22 which funds are appropriated to carry out this sec23 tion, the aggregate amount of the grants awarded to 

24 eligible entities that are States, or consortia that in25 clude a State, shall be not more than 50 percent of 
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1 the total amount appropriated under section 

2 501(b)(1) for such fiscal year. 

3 (3) PROHIBITION.—The Secretary shall not 

4 award a grant to an eligible entity for the same spe5 cific activities that are being supported by other 

6 Federal grant funds. 

7 (b) GRANT DURATION AND AMOUNT.— 

8 (1) DURATION.—A grant under this section 

9 shall be awarded to an eligible entity for a 4-year pe10 riod, except that if the Secretary determines that the 

11 eligible entity has not made demonstrable progress 

12 in achieving the benchmarks developed pursuant to 

13 subsection (g) by the end of the third year of such 

14 grant period, no further grant funds shall be made 

15 available to the entity after the date of such deter16 mination. 

17 (2) AMOUNT.—The minimum amount of a total 

18 grant award under this section over the 4-year pe19 riod of the award shall be $750,000. 

20 (c) PRIORITY.—In awarding grants under this sec21 tion, the Secretary shall give priority to eligible entities 

22 that— 

23 (1) enter into partnerships with— 
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1 (A) philanthropic or research organizations 

2 with expertise in meeting the goals of this sec3 tion; 

4 (B) businesses or industry or sector part5 nerships that— 

6 (i) design and implement programs 

7 described in subsection (a)(1)(B); 

8 (ii) pay a portion of the costs of such 

9 programs; and 

10 (iii) agree to collaborate with one or 

11 more eligible entities to hire individuals 

12 who have completed a particular postsec13 ondary degree, certificate, or credential 

14 program; 

15 (C) labor organizations that provide tech16 nical expertise for occupationally specific edu17 cation necessary for an industry-recognized cre18 dential leading to a skilled occupation in a high19 demand industry; 

20 (2) are institutions of higher education eligible 

21 for assistance under title III or V of the Higher 

22 Education Act of 1965, or consortia that include 

23 such an institution; 

24 (3) are focused on serving low-income, non-tra25 ditional students (as defined in section 803(j) of the 
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1 Higher Education Act of 1965 (20 U.S.C. 

2 1161c(j))), students who are dislocated workers, or 

3 students who are veterans, who do not have a bach4 elor’s degree; 

5 (4) are focused on serving low-income, non6 traditional students (as defined in section 803(j) of 

7 the Higher Education Act of 1965 (20 U.S.C. 

8 1161c(j))), who do not have a bachelor’s degree; or 

9 (5) are community colleges located in areas 

10 with high unemployment rates. 

11 (d) FEDERAL AND NON-FEDERAL SHARE; SUPPLE12 MENT, NOT SUPPLANT.— 

13 (1) FEDERAL SHARE.—The amount of the Fed14 eral share under this section for a fiscal year shall 

be not greater than 1 15 ⁄2 of the costs of the programs, 

16 services, and policies described in subsection (f) that 

17 are carried out under the grant. 

18 (2) NON-FEDERAL SHARE.— 

19 (A) IN GENERAL.—The amount of the 

20 non-Federal share under this section for a fiscal 

year shall be not less than 1 21 ⁄2 of the costs of the 

22 programs, services, and policies described in 

23 subsection (f) that are carried out under the 

24 grant. The non-Federal share may be in cash or 

25 in kind, and may be provided from State re-
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1 sources, local resources, contributions from pri2 vate organizations, or a combination thereof. 

3 (B) FINANCIAL HARDSHIP WAIVER.—The 

4 Secretary may waive or reduce the non-Federal 

5 share of an eligible entity that has submitted an 

6 application under this section if the entity dem7 onstrates a need for such waiver or reduction 

8 due to extreme financial hardship, as defined by 

9 the Secretary by regulation. 

10 (3) SUPPLEMENT, NOT SUPPLANT.—The Fed11 eral and non-Federal shares required by this section 

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

13 and private resources that would otherwise be ex14 pended to establish and support programs described 

15 in subsection (a)(1)(B) at eligible entities. 

16 (4) EXCEPTION.—This subsection shall not 

17 apply to Tribal Colleges and Universities. 

18 (e) APPLICATION.—An eligible entity seeking to re19 ceive a grant under this section shall submit to the Sec20 retary an application at such time, in such manner, and 

21 containing such information as the Secretary may require. 

22 Such application shall describe the programs under sub23 section (a)(1)(B) that the eligible entity will carry out 

24 using the grant funds, (including the programs, services, 

25 and policies under subsection (f)), including— 
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1 (1) the goals of such programs, services, and 

2 policies; 

3 (2) how the eligible entity will allocate grant 

4 funds for such programs, services, and policies; 

5 (3) how such programs, services, and policies, 

6 and the resources of the eligible entity, will enable 

7 the eligible entity to meet the benchmarks developed 

8 pursuant to subsection (g), and how the eligible enti9 ty will track and report the entity’s progress in 

10 reaching such benchmarks; 

11 (4) how the eligible entity will use such pro12 grams, services, and policies to establish quantifiable 

13 targets for improving graduation rates and employ14 ment-related outcomes; 

15 (5) how the eligible entity will serve high-need 

16 populations through such programs, services, and 

17 policies; 

18 (6) how the eligible entity will partner with in19 dustry or sector partnerships in the State, the State 

20 public employment service, and State or local work21 force investment boards in carrying out such pro22 grams, services, and policies; 

23 (7) an assurance that the eligible entity will 

24 share information with the Learning and Earning 
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1 Research Center established under section 505(b), 

2 once such Center is established; 

3 (8) an assurance that the eligible entity will 

4 participate in the evaluation of such programs, serv5 ices, and policies under subsection (i); 

6 (9) the potential for such programs, services, 

7 and policies to be replicated at other institutions of 

8 higher education; and 

9 (10) how the eligible entity will incorporate and 

10 support faculty and staff of the institution in meet11 ing the goals of such programs, services, and poli12 cies. 

13 (f) USES OF FUNDS.—An eligible entity receiving a 

14 grant under this section shall use the grant funds to carry 

15 out the programs described in subsection (a)(1)(B), which 

16 shall include at least 2 of the following activities: 

17 (1) Developing and implementing policies and 

18 programs to expand opportunities for students at eli19 gible entities described in subparagraphs (A) 

20 through (E) of section 502(a)(3) to earn bachelor’s 

21 degrees by— 

22 (A) facilitating the transfer of academic 

23 credits between institutions of higher education, 

24 including the transfer of academic credits for 

25 courses in the same field of study; and 
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1 (B) expanding articulation agreements and 

2 guaranteed transfer agreements between such 

3 institutions, including through common course 

4 numbering and general core curriculum. 

5 (2) Expanding, enhancing, or creating academic 

6 programs or training programs, which shall be car7 ried out with industry or sector partnerships or in 

8 partnership with employers and may include other 

9 relevant partners, that provide relevant job-skill 

10 training (including apprenticeships and worksite 

11 learning and training opportunities) for skilled occu12 pations in high-demand industries. 

13 (3) Providing student support services, includ14 ing— 

15 (A) intensive career and academic advising; 

16 (B) labor market information and job 

17 counseling; 

18 (C) transitional job support, supportive 

19 services, or assistance in connecting students 

20 with community resources; and 

21 (D) library services, including information 

22 literacy activities, to— 

23 (i) help increase postsecondary degree, 

24 certificate, and industry-recognized creden25 tial completion rates, particularly with re-
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1 spect to groups underrepresented in higher 

2 education; and 

3 (ii) assist individuals with obtaining 

4 and retaining employment. 

5 (4) Creating workforce programs that provide a 

6 sequence of education and occupational training that 

7 leads to industry-recognized credentials, including 

8 programs that— 

9 (A) blend basic skills, information literacy, 

10 and occupational training that lead to industry11 recognized credentials; 

12 (B) integrate developmental education cur13 ricula and instruction with for-credit 

14 coursework toward degree or certificate path15 ways; or 

16 (C) advance individuals on a career path 

17 toward high-wage occupations in high-demand 

18 industries. 

19 (5) Building or enhancing linkages, including 

20 the development of dual enrollment programs and 

21 early college high schools, between— 

22 (A) secondary education or adult education 

23 programs (including programs established 

24 under the Carl D. Perkins Career and Tech25 nical Education Act of 2006 and title II of the 
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1 Workforce Investment Act of 1998 (29 U.S.C. 

2 9201 et seq.)); and 

3 (B) eligible entities described in subpara4 graphs (A) through (E) of section 502(a)(3). 

5 (6) Implementing other innovative programs, 

6 services, and policies designed to— 

7 (A) increase postsecondary degree, certifi8 cate, and industry-recognized credential comple9 tion rates, particularly with respect to groups 

10 underrepresented in higher education, at eligible 

11 entities described in subparagraphs (A) through 

12 (E) of section 502(a)(3); and 

13 (B) increase the provision of training for 

14 students, including students who are veterans 

15 or members of the National Guard or Reserves, 

16 to enter skilled occupations in high-demand in17 dustries. 

18 (7) Creating, in a timely and efficient manner, 

19 degree, certificate, and industry-recognized creden20 tial programs at eligible entities described in sub21 paragraphs (A) through (E) of section 502(a)(3) 

22 that— 

23 (A) reflect and respond to regional labor 

24 market developments and trends; 
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1 (B) effectively address the workforce needs 

2 of employers in the State; and 

3 (C) are designed in consultation with such 

4 employers. 

5 (8) Providing information technology training 

6 for students and members of the public seeking to 

7 improve their computer literacy and information 

8 technology skills through public accessibility to— 

9 (A) community college computer labs; and 

10 (B) information technology training pro11 vided on weeknights and weekends by an em12 ployee of a community college who is capable of 

13 basic computer instruction. 

14 (9) Expanding, enhancing, or creating academic 

15 programs or training programs that focus on pre16 paring students for skilled occupations in energy-re17 lated fields, which may be carried out in partnership 

18 with employers and may include other relevant part19 ners, that provide relevant job-skill training (includ20 ing apprenticeships and worksite learning and train21 ing opportunities) for skilled occupations in high-de22 mand industries. 

23 (10) Expanding, enhancing, or creating aca24 demic programs or training programs that prepare 

25 students for occupations critical to serving veterans, 
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1 including occupations within the Department of Vet2 erans Affairs health care system. 

3 (g) BENCHMARKS.— 

4 (1) IN GENERAL.—Each eligible entity receiving 

5 a grant under this section shall develop quantifiable 

6 benchmarks on the following indicators (where appli7 cable to the institution’s use of funds provided under 

8 this section), to be approved by the Secretary: 

9 (A) Closing gaps in enrollment and com10 pletion rates for— 

11 (i) groups underrepresented in higher 

12 education; and 

13 (ii) groups of students enrolled at the 

14 eligible entity (or at an institution of high15 er education under the jurisdiction of the 

16 eligible entity, in the case of an entity that 

17 is not an institution) who have the lowest 

18 enrollment and completion rates. 

19 (B) Addressing local and regional work20 force needs. 

21 (C) Establishing articulation agreements 

22 between two-year and four-year public institu23 tions of higher education within a State. 
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1 (D) Improving comprehensive employment 

2 and educational outcomes for postsecondary 

3 education and training programs, including— 

4 (i) student persistence from one aca5 demic year to the following academic year; 

6 (ii) the number of credits students 

7 earn toward a certificate or an associate’s 

8 degree; 

9 (iii) the number of students in devel10 opmental education courses who subse11 quently enroll in credit bearing coursework; 

12 (iv) transfer of general education 

13 credits, including education credits earned 

14 while serving in the Armed Forces, be15 tween institutions of higher education, as 

16 applicable; 

17 (v) completion of industry-recognized 

18 credentials or associate’s degrees to work 

19 in skilled occupations in high-demand in20 dustries; 

21 (vi) transfers to four-year institutions 

22 of higher education; and 

23 (vii) job placement related to skills 

24 training or associate’s degree completion. 
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1 (2) REPORT.—The eligible entity receiving such 

2 a grant shall annually measure and report to the 

3 Secretary the progress of the entity in achieving the 

4 benchmarks developed pursuant to paragraph (1). 

5 (h) PROVISION OF TRANSFER OF CREDIT INFORMA6 TION IN COMMUNITY COLLEGE COURSE SCHEDULES.— 

7 To the maximum extent practicable, each community col8 lege receiving a grant under this section shall include in 

9 each electronic and printed publication of the college’s 

10 course schedule, in a manner of the college’s choosing, for 

11 each course listed in the college’s course schedule, whether 

12 such course is transferable for credit toward the comple13 tion of a 4-year baccalaureate degree at a public institu14 tion of higher education in the State in which the college 

15 is located. 

16 (i) EVALUATION.—The Secretary shall allocate not 

17 more than two percent of the funds appropriated under 

18 section 501(b)(1) to the Institute of Education Sciences 

19 to conduct evaluations, ending not later than January 30, 

20 2014, that— 

21 (1) assess the effectiveness of the grant pro22 grams carried out by each eligible entity receiving 

23 such a grant in— 
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1 (A) improving postsecondary education 

2 completion rates (disaggregated by age, race, 

3 ethnicity, sex, income, and disability); 

4 (B) improving employment-related out5 comes for students served by such programs; 

6 (C) serving high-need populations; and 

7 (D) building or enhancing working part8 nerships with the State public employment serv9 ice or State or local workforce investment 

10 boards; and 

11 (2) include any other information or assess12 ments the Secretary may require. 

13 (j) REPORT.—The Secretary shall submit to the 

14 Committee on Health, Education, Labor, and Pensions of 

15 the Senate and the Committee on Education and Labor 

16 of the House of Representatives an annual report on 

17 grants awarded under this section, including— 

18 (1) the amount awarded to each eligible entity 

19 under this section; 

20 (2) a description of the activities conducted by 

21 each eligible entity receiving a grant under this sec22 tion; and 

23 (3) a summary of the results of the evaluations 

24 submitted to the Secretary under subsection (i) and 
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1 the progress each eligible entity made toward achiev2 ing the benchmarks developed under subsection (g). 

3 SEC. 504. GRANTS TO ELIGIBLE STATES FOR COMMUNITY 

4 COLLEGE PROGRAMS. 

5 (a) PROGRAM AUTHORIZATION.—From the amount 

6 appropriated to carry out this section, the Secretary, in 

7 coordination with the Secretary of Labor, shall award 

8 grants to eligible States, on a competitive basis, to imple9 ment the systematic reform of community colleges located 

10 in the State by carrying out programs, services, and poli11 cies that demonstrated effectiveness under the evaluation 

12 described in section 503(i). 

13 (b) ELIGIBLE STATE.—In this section, the term ‘‘eli14 gible State’’ means a State that demonstrates to the Sec15 retary in the application submitted pursuant to subsection 

16 (f) that the State— 

17 (1) has a plan under section 782 of the Higher 

18 Education Act of 1965 to increase the State’s rate 

19 of persistence in and completion of postsecondary 

20 education that takes into consideration and involves 

21 community colleges located in such State; 

22 (2) has a statewide longitudinal data system 

23 that includes data with respect to community col24 leges; 
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1 (3) has an articulation agreement pursuant to 

2 section 486A of the Higher Education Act of 1965 

3 (20 U.S.C. 1093a); 

4 (4) is in compliance with section 137 of such 

5 Act (20 U.S.C. 1015f); and 

6 (5) meets any other requirements the Secretary 

7 may require. 

8 (c) GRANT DURATION; RENEWAL.—A grant awarded 

9 under this section shall be awarded to an eligible State 

10 for a 6-year period, except that if the Secretary determines 

11 that the eligible State has not made demonstrable progress 

12 in achieving the benchmarks developed pursuant to sub13 section (h) by the end of the third year of the grant period, 

14 non further grant funds shall be made available to the en15 tity after the date of such determination. 

16 (d) PRIORITY.—In awarding grants under this sec17 tion, the Secretary shall give priority to applications fo18 cused on serving low-income, nontraditional students (as 

19 defined in section 803(j) of the Higher Education Act of 

20 1965 (20 U.S.C. 1161c(j))), students who are dislocated 

21 workers, or students who are veterans, who do not have 

22 a bachelor’s degree. 

23 (e) FEDERAL AND NON-FEDERAL SHARE; SUPPLE24 MENT, NOT SUPPLANT.— 
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1 (1) FEDERAL SHARE.—The amount of the Fed2 eral share under this section for a fiscal year shall 

be not greater than 1 3 ⁄2 of the costs of the reform de4 scribed in subsection (g) that is carried out with the 

5 grant. 

6 (2) NON-FEDERAL SHARE.— 

7 (A) IN GENERAL.—The amount of the 

8 Non-Federal share under this section for a fiscal year shall be not less than 1 9 ⁄2 of the costs 

10 of the reform described in subsection (g) that is 

11 carried out with the grant. The non-Federal 

12 share may be in cash or in kind, and may be 

13 provided from State resources, local resources, 

14 contributions from private organizations, or a 

15 combination thereof. 

16 (B) FINANCIAL HARDSHIP WAIVER.—The 

17 Secretary may waive or reduce the non-Federal 

18 share of an eligible State that has submitted an 

19 application under this section if the State dem20 onstrates a need for such waiver or reduction 

21 due to extreme financial hardship, as defined by 

22 the Secretary by regulation. 

23 (3) SUPPLEMENT, NOT SUPPLANT.—The Fed24 eral and non-Federal share required by this section 

25 shall be used to supplement, and not supplant, State 
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1 and private resources that would otherwise be ex2 pended to carry out the systematic reform of com3 munity colleges in a State. 

4 (f) APPLICATION.—An eligible State desiring to re5 ceive a grant under this section shall submit to the Sec6 retary an application at such time, in such manner, and 

7 containing such information as the Secretary may require. 

8 Such application shall describe the programs, service, and 

9 policies to be used by the State to achieve the systematic 

10 reform described in subsection (g), including— 

11 (1) the goals of such programs, services, and 

12 policies; 

13 (2) how the State will allocate grant funds to 

14 carry out such programs, services, and policies, in15 cluding identifying any State or private entity that 

16 will administer such programs, services, and policies; 

17 (3) how such programs, services, and policies 

18 will enable the State to— 

19 (A) meet the benchmarks developed pursu20 ant to subsection (h), and how the State will 

21 track and report the State’s progress in reach22 ing such benchmarks; and 

23 (B) benefit students attending all commu24 nity colleges within the State; 
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1 (4) how the State will use such programs, serv2 ices, and policies to establish quantifiable targets for 

3 improving graduation rates and employment-related 

4 outcomes; 

5 (5) how the State will serve high-need popu6 lations through such programs, services, and poli7 cies; 

8 (6) how the State will partner with the State 

9 public employment service and State or local work10 force investment boards in carrying out such pro11 grams, services, and policies; 

12 (7) how the State will evaluate such programs, 

13 services, and policies, which may include participa14 tion in national evaluations; and 

15 (8) how the State will involve community col16 leges and community college faculty in the planning, 

17 implementation, and evaluation of such programs, 

18 services, and policies. 

19 (g) USES OF FUNDS.—An eligible State receiving a 

20 grant under this section shall use the grant funds to im21 plement the systematic reform of community colleges lo22 cated in the State by carrying out programs, services, and 

23 policies that the Secretary has determined to have dem24 onstrated effectiveness based on the results of the evalua25 tion described in section 503(i). States shall allocate not 
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1 less than 90 percent of such grant funds to community 

2 colleges within the State. 

3 (h) BENCHMARKS.— 

4 (1) IN GENERAL.—Each eligible State receiving 

5 a grant under this section shall, in consultation with 

6 the Secretary, develop quantifiable benchmarks on 

7 the indicators identified in section 503(g)(1). 

8 (2) PROGRESS.—An eligible State receiving 

9 such a grant shall annually measure and report to 

10 the Secretary progress in achieving the benchmarks 

11 developed pursuant to paragraph (1). 

12 (i) REPORT.— 

13 (1) REPORTS TO THE SECRETARY.—Each eligi14 ble State receiving a grant under this section shall 

15 annually submit to the Secretary and the Secretary 

16 of Labor a report on such grant, including— 

17 (A) a description of the systematic reform 

18 carried out by the State using such grant; and 

19 (B) the outcome of such reform, including 

20 the State’s progress in achieving the bench21 marks developed under subsection (h). 

22 (2) REPORTS TO CONGRESS.—Not later than 6 

23 months after the end of the grant period, the Sec24 retary shall submit to the Committee on Health, 

25 Education, Labor, and Pensions of the Senate and 
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1 the Committee on Education and Labor of the 

2 House of Representatives a summary of the reports 

3 submitted under paragraph (1) with respect to such 

4 grant period. 

5 (j) SENSE OF CONGRESS.—It is the sense of Con6 gress that— 

7 (1) community colleges play an important role 

8 in preparing and training students seeking to enter 

9 the workforce; 

10 (2) it is vital that all States have access to the 

11 resources and assistance needed to compete for 

12 grants authorized under this section; and 

13 (3) in executing the grant program authorized 

14 under this section, the Secretary should make avail15 able any and all assistance, guidance, and support to 

16 States seeking to compete for grants authorized 

17 under this section and should work to ensure that 

18 such grants are distributed in a fair and equitable 

19 manner. 

20 SEC. 505. NATIONAL ACTIVITIES. 

21 (a) OPEN ONLINE EDUCATION.—From the amount 

22 appropriated to carry out this section, the Secretary is au23 thorized to make competitive grants to, or enter into con24 tracts with, institutions of higher education, philanthropic 

25 organizations, and other appropriate entities to develop, 
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1 evaluate, and disseminate freely-available high-quality on2 line courses, including instructional materials, for training 

3 and postsecondary education readiness and success. Enti4 ties receiving funds under this subsection shall ensure that 

5 electronic and information technology activities meet the 

6 access standards established under section 508 of the Re7 habilitation Act of 1973 (29 U.S.C. 794d). 

8 (b) LEARNING AND EARNING RESEARCH CENTER.— 

9 (1) IN GENERAL.—From the amount appro10 priated to carry out this section, the Director of the 

11 Institute of Education Sciences is authorized to 

12 award a grant to, or enter into a contract with, an 

13 organization with demonstrated expertise in the re14 search and evaluation of community colleges to es15 tablish and operate the Learning and Earning Re16 search Center (in this section referred to as the 

17 ‘‘Center’’). 

18 (2) GRANT TERM.—The grant or contract 

19 awarded under this section shall be awarded for a 

20 period of not more than 4 years. 

21 (3) BOARD.—The Center shall have an inde22 pendent advisory board of 9 individuals who— 

23 (A) are appointed by the Secretary, based 

24 on recommendations from the organization re-
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1 ceiving the grant or contract under this section; 

2 and 

3 (B) who have demonstrated expertise in— 

4 (i) data collection; 

5 (ii) data analysis; and 

6 (iii) econometrics, postsecondary edu7 cation, and workforce development re8 search. 

9 (4) CENTER ACTIVITIES.—The Center shall— 

10 (A) develop— 

11 (i) peer-reviewed metrics to help con12 sumers make sound education and training 

13 choices, and to help students, faculty, 

14 workers, schools, businesses, researchers, 

15 and policymakers assess the effectiveness 

16 of community colleges, and courses of 

17 study at such colleges, in meeting edu18 cation and employment objectives and serv19 ing groups that are underrepresented in 

20 postsecondary education; 

21 (ii) common metrics and data ele22 ments to measure the education and em23 ployment outcomes of students attending 

24 community colleges; 
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1 (B) coordinate with the Institute of Edu2 cation Sciences and States receiving a grant 

3 under subsection (c) to develop— 

4 (i) standardized data elements, defini5 tions, and data-sharing protocols to make 

6 it possible for data systems related to post7 secondary education to be linked and inter8 operable, and for best practices to be 

9 shared among States; 

10 (ii) standards and processes for facili11 tating sharing of data in a manner that 

12 safeguards student privacy; 

13 (C) develop and make widely available ma14 terials analyzing best practices and research on 

15 successful postsecondary education and training 

16 efforts; 

17 (D) make the data and metrics developed 

18 pursuant to subparagraph (A) available to the 

19 public in a transparent, user-friendly format 

20 that is accessible to individuals with disabilities; 

21 and 

22 (E) consult with representatives from 

23 States with respect to the activities of the Cen24 ter. 

25 (c) STATE SYSTEMS.— 
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1 (1) IN GENERAL.—From the amount appro2 priated to carry out this section, the Secretary is au3 thorized to award grants to States or consortia of 

4 States to establish cooperative agreements to de5 velop, implement, and expand interoperable state6 wide longitudinal data systems that— 

7 (A) collect, maintain, disaggregate (by in8 stitution, income, race, ethnicity, sex, disability, 

9 and age), and analyze student data from com10 munity colleges, including data on the programs 

11 of study and education and employment out12 comes for particular students, tracked over 

13 time; and 

14 (B) can be linked to other data systems, as 

15 applicable, including elementary and secondary 

16 education and workforce data systems. 

17 (2) SUPPLEMENT, NOT SUPPLANT.—Funds ap18 propriated to carry out this subsection shall be used 

19 to supplement, and not supplant, other Federal and 

20 State resources that would otherwise be expended to 

21 carry out statewide longitudinal data systems, in22 cluding funding appropriated for State Longitudinal 

23 Data Systems in the American Recovery and Rein24 vestment Act of 2009 (Public Law 111–5; 123 Stat. 

25 115). 
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1 (3) PRIVACY AND ACCESS TO DATA.— 

2 (A) IN GENERAL.—Each State or consortia 

3 that receives a grant under this subsection or 

4 any other provision of this Act shall implement 

5 measures to— 

6 (i) ensure that the statewide longitu7 dinal data system under this subsection 

8 and any other data system the State or 

9 consortia is operating for the purposes of 

10 this Act meet the requirements of section 

11 444 of the General Education Provisions 

12 Act (20 U.S.C. 1232g) (commonly known 

13 as the ‘‘Family Educational Rights and 

14 Privacy Act of 1974’’); 

15 (ii) limit the use of information in any 

16 such data system by governmental agencies 

17 in the State, including State agencies, 

18 State educational authorities, local edu19 cational agencies, community colleges, and 

20 institutions of higher education, to edu21 cation and workforce related activities 

22 under this Act or education and workforce 

23 related activities otherwise permitted by 

24 Federal or State law; 
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1 (iii) prohibit the disclosure of person2 ally identifiable information except as per3 mitted under section 444 of the General 

4 Education Provisions Act and any addi5 tional limitations set forth in State law; 

6 (iv) keep an accurate accounting of 

7 the date, nature, and purpose of each dis8 closure of personally identifiable informa9 tion in any such data system, a description 

10 of the information disclosed, and the name 

11 and address of the person, agency, institu12 tion, or entity to whom the disclosure is 

13 made, which accounting shall be made 

14 available on request to parents of any stu15 dent whose information has been disclosed; 

16 (v) notwithstanding section 444 of the 

17 General Education Provisions Act, require 

18 any non-governmental party obtaining per19 sonally identifiable information to sign a 

20 data use agreement prior to disclosure 

21 that— 

22 (I) prohibits the party from fur23 ther disclosing the information; 

24 (II) prohibits the party from 

25 using the information for any purpose 
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1 other than the purpose specified in 

2 the agreement; and 

3 (III) requires the party to de4 stroy the information when the pur5 pose for which the disclosure was 

6 made is accomplished; 

7 (vi) maintain adequate security meas8 ures to ensure the confidentiality and in9 tegrity of any such data system, such as 

10 protecting a student record from identifica11 tion by a unique identifier; 

12 (vii) where rights are provided to par13 ents under this clause, provide those rights 

14 to the student instead of the parent if the 

15 student has reached the age of 18 or is en16 rolled in a postsecondary educational insti17 tution; and 

18 (viii) ensure adequate enforcement of 

19 the requirements of this paragraph. 

20 (B) USE OF UNIQUE IDENTIFIERS.—It 

21 shall be unlawful for any Federal, State, or 

22 local governmental agency to— 

23 (i) use the unique identifiers employed 

24 in such data systems for any purpose other 
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1 than as authorized by Federal or State 

2 law; or 

3 (ii) deny any individual any right, 

4 benefit, or privilege provided by law be5 cause of such individual’s refusal to dis6 close the individual’s unique identifier. 

7 (d) EVALUATION.—From the amounts appropriated 

8 to carry out this section, the Secretary shall, not later 

9 than 30 days after the date of the enactment of this Act, 

10 allocate not less than $1,000,000 for the contract with, 

11 and report by, the National Research Council required 

12 under section 1107(c)(2) of the Higher Education Oppor13 tunity Act (Public Law 110–315). 

14 (e) MODEL TO DETERMINE CREDIT TRANSFER15 ABILITY.—From the amounts appropriated to carry out 

16 this section, the Secretary may develop a model, which 

17 leverages existing technologies if appropriate, of a service 

18 that enables students to determine the transferability of 

19 credits between institutions of higher education voluntarily 

20 participating in such service. 

21 (f) REPORT.—The Secretary shall submit to the 

22 Committee on Health, Education, Labor, and Pensions of 

23 the Senate and the Committee on Education and Labor 

24 of the House of Representatives an annual report on the 

25 amounts awarded to entities receiving grants or contracts 
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1 under this section, and the activities carried out by such 

2 entities under such grants and contracts. 

3 TITLE VI—DEFUND ACORN ACT 

4 SEC. 601. SHORT TITLE. 

5 This title may be cited as the ‘‘Defund ACORN Act’’. 

6 SEC. 602. PROHIBITIONS ON FEDERAL FUNDS AND OTHER 

7 ACTIVITIES WITH RESPECT TO CERTAIN IN8 DICTED ORGANIZATIONS. 

9 (a) PROHIBITIONS.—With respect to any covered or10 ganization, the following prohibitions apply: 

11 (1) No Federal contract, grant, cooperative 

12 agreement, or any other form of agreement (includ13 ing a memorandum of understanding) may be 

14 awarded to or entered into with the organization. 

15 (2) No Federal funds in any other form may be 

16 provided to the organization. 

17 (3) No Federal employee or contractor may 

18 promote in any way (including recommending to a 

19 person or referring to a person for any purpose) the 

20 organization. 

21 (b) COVERED ORGANIZATION.—In this section, the 

22 term ‘‘covered organization’’ means any of the following: 

23 (1) Any organization that has been indicted for 

24 a violation under any Federal or State law governing 

25 the financing of a campaign for election for public 
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1 office or any law governing the administration of an 

2 election for public office, including a law relating to 

3 voter registration. 

4 (2) Any organization that had its State cor5 porate charter terminated due to its failure to com6 ply with Federal or State lobbying disclosure re7 quirements. 

8 (3) Any organization that has filed a fraudulent 

9 form with any Federal or State regulatory agency. 

10 (4) Any organization that— 

11 (A) employs any applicable individual, in a 

12 permanent or temporary capacity; 

13 (B) has under contract or retains any ap14 plicable individual; or 

15 (C) has any applicable individual acting on 

16 the organization’s behalf or with the express or 

17 apparent authority of the organization. 

18 (c) ADDITIONAL DEFINITIONS.—In this section: 

19 (1) The term ‘‘organization’’ includes the Asso20 ciation of Community Organizations for Reform 

21 Now (in this subsection referred to as ‘‘ACORN’’) 

22 and any ACORN-related affiliate. 

23 (2) The term ‘‘ACORN-related affiliate’’ means 

24 any of the following: 
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1 (A) Any State chapter of ACORN reg2 istered with the Secretary of State’s office in 

3 that State. 

4 (B) Any organization that shares directors, 

5 employees, or independent contractors with 

6 ACORN. 

7 (C) Any organization that has a financial 

8 stake in ACORN. 

9 (D) Any organization whose finances, 

10 whether federally funded, donor-funded, or 

11 raised through organizational goods and serv12 ices, are shared or controlled by ACORN. 

13 (3) The term ‘‘applicable individual’’ means an 

14 individual who has been indicted for a violation 

15 under Federal or State law relating to an election 

16 for Federal or State office. 

17 (d) REVISION OF FEDERAL ACQUISITION REGULA18 TION.—The Federal Acquisition Regulation shall be re19 vised to carry out the provisions of this title relating to 

20 contracts. 

Passed the House of Representatives September 17, 

2009. 

Attest: 

Clerk. 

111TH CONGRESS 

1ST SESSION H. R. 3221 

AN ACT 

To amend the Higher Education Act of 1965, and 

for other purposes.