Federal Work-Study Improvement Act

To amend the Higher Education Act of 1965 to treat all institutions of higher education equally for purposes of determining the Federal share under the Federal work-study programs, and for other purposes. 1. Short title This Act may be cited as the Federal Work-Study Improvement Act 2. Federal work-study programs (a) Authorization of appropriations; work-Based learning defined Section 441 of part C of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087–51 (1) in subsection (a), by striking community service activities work-based learning (2) by striking subsections (b) and (c) and inserting the following: (b) Authorization of appropriations There are authorized to be appropriated to carry out this part, $1,520,000 for fiscal year 2023 and each of the 5 succeeding fiscal years. (c) Work-Based learning defined For purposes of this part, the term work-based learning (d) Secretarial requirement The Secretary may not award funds under this part based on whether an institution of higher education meets the definition of section 101 or 102(a)(1)(A). . (b) Allocation of funds Section 442(d)(1) of part C of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087–52(d)(1) community service work-based learning (c) Grants for Federal work-Study program Section 443 of part C of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087–53 (1) in subsection (b)— (A) in paragraph (1), by striking community service work-based learning (B) by striking paragraph (2) and inserting the following: (2) provide that funds granted an institution of higher education, pursuant to this section, may be used only to make payments to students participating in work-study programs, except that an institution may use a portion of the sums granted to it to meet administrative expenses in accordance with section 489 of this Act, may use a portion of the sums granted to it to meet the cost of a job location and development program in accordance with section 446 of this part, and may transfer funds in accordance with the provisions of section 488 of this Act; ; (C) by amending paragraph (5) to read as follows: (5) provide that the Federal share of the compensation of students employed in the work-study program in accordance with the agreement shall not exceed— (A) 75 percent for the first fiscal year after the date of the enactment of the Federal Work-Study Improvement Act; (B) 65 percent for the second fiscal year after such date; (C) 60 percent for the third fiscal year after such date; (D) 55 percent for the fourth fiscal year after such date; and (E) 50 percent each succeeding fiscal year, except that the Federal share may exceed 50 percent if the Secretary determines, pursuant to regulations promulgated by the Secretary establishing objective criteria for such determinations, that a Federal share in excess of such amounts is required in furtherance of the purpose of this part; ; and (D) by striking paragraph (8)(B) and inserting the following: (B) in work-based learning; ; (2) in subsection (c)— (A) by striking paragraphs (2) and (3); and (B) by redesignating paragraphs (4) and (5) as paragraphs (2) and (3), respectively; (3) by striking subsection (d)(3); and (4) by striking subsection (e)(3). (d) Job location and development programs Section 446 of part C of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087–56 (1) in subsection (a)(1)— (A) by striking 10 percent or $75,000 20 percent or $150,000 (B) by striking community service jobs career and technical job placement (2) in subsection (b)(1), by striking 80 50 (e) Additional funds; work colleges Sections 447 and 448 of part C of title IV of the Higher Education Act of 1965 is amended ( 20 U.S.C. 1087–57 community service work-based learning 3. Federal Supplemental Educational Opportunity Grants (a) Repeal Subpart 3 of part A of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070b et seq. (b) Effective date The repeal made by subsection (a) shall take effect on June 30, 2022. (c) Appropriations Notwithstanding subsections (a) and (b), sums appropriated under section 413A for fiscal year 2022 shall be available for payments to institutions of higher education under such section (as in effect on June 29, 2022) through the end of fiscal year 2023.

Summary: Federal Work-Study Improvement Act This bill reauthorizes through FY2028 and otherwise revises the Federal Work-Study Program, including by removing a provision that prohibits a participating institution of higher education from using more than 25% of program funds for wages for students employed with private for-profit organizations.