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tion 111 of the Workforce Investment Act (29 
U.S.C. 2821) and a local workforce investment 
board established under section 117 of such Act (29 
U.S.C. 2832), respectively. 
(11) SUPPORTIVE SERVICES.—The term ‘‘sup-
portive services’’ has the meaning given such term in 
section 101(46) of the Workforce Investment Act of 
1998 (29 U.S.C. 2801(46)). 
(b) GRANT PRIORITY.—In addition to any grant pri-
orities established under any other provision of this title, 
the Secretary, in awarding grants under this title, shall 
give priority to applications focused on serving low-income, 
nontraditional students who do not have a bachelor’s de-
gree, and who have one or more of the following character-
istics: 
(1) Are the first generation in their family to 
attend college. 
(2) Have delayed enrollment in college. 
(3) Have dependents. 
(4) Are independent students. 
(5) Work at least 25 hours per week. 
(6) Are out-of-school youth without a high 
school diploma. 
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SEC. 503. GRANTS TO ELIGIBLE ENTITIES FOR COMMUNITY 
COLLEGE REFORM. 
(a) PROGRAM AUTHORIZATION.— 
(1) GRANTS AUTHORIZED.— 
(A) IN GENERAL.—Subject to paragraph 
(2), from the amount appropriated to carry out 
this section, the Secretary, in coordination with 
the Secretary of Labor, shall award grants to 
eligible entities, on a competitive basis, to es-
tablish and support programs described in sub-
paragraph (B) at eligible entities described in 
subparagraphs (A) through (D) of section 
502(a)(3). 
(B) PROGRAMS.—The programs to be es-
tablished and supported with grants under sub-
paragraph (A) (and carried out through activi-
ties described in subsection (f)) shall be pro-
grams— 
(i) that are— 
(I) innovative programs; or 
(II) programs of demonstrated 
effectiveness, based on the evaluations 
of similar programs funded by the De-
partment of Education or the Depart-
ment of Labor, or other research of 
similar programs; and 
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(ii) that lead to the completion of a 
postsecondary degree, certificate, or indus-
try-recognized credential leading to a 
skilled occupation in a high-demand indus-
try. 
(2) LIMITATION.—For each fiscal year for 
which funds are appropriated to carry out this sec-
tion, the aggregate amount of the grants awarded to 
eligible entities that are States, or consortia that in-
clude a State, shall be not more than 50 percent of 
the 
total 
amount 
appropriated 
under 
section 
501(b)(1) for such fiscal year. 
(3) PROHIBITION.—The Secretary shall not 
award a grant to an eligible entity for the same ac-
tivities that are being supported by other Federal 
funds. 
(b) GRANT DURATION AND AMOUNT.— 
(1) DURATION.—A grant under this section 
shall be awarded to an eligible entity for a 4-year pe-
riod, except that if the Secretary determines that the 
eligible entity has not made demonstrable progress 
in achieving the benchmarks developed pursuant to 
subsection (g) by the end of the third year of such 
grant period, no further grant funds shall be made 
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available to the entity after the date of such deter-
mination. 
(2) AMOUNT.—The minimum amount of a total 
grant award under this section over the 4-year pe-
riod of the award shall be $750,000. 
(c) PRIORITY.—In awarding grants under this sec-
tion, the Secretary shall give priority to eligible entities 
that— 
(1) enter into partnerships with— 
(A) philanthropic or research organizations 
with expertise in meeting the goals of this sec-
tion; 
(B) businesses or industry or sector part-
nerships that— 
(i) design and implement programs 
described in subsection (a)(1)(B); 
(ii) pay a portion of the costs of such 
programs; and 
(iii) agree to collaborate with one or 
more eligible entities to hire individuals 
who have completed a particular postsec-
ondary degree, certificate, or credential 
program; or 
(C) labor organizations that provide tech-
nical expertise for occupationally specific edu-
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cation necessary for an industry-recognized cre-
dential leading to a skilled occupation in a high- 
demand industry; or 
(2) are institutions of higher education eligible 
for assistance under title III or V of the Higher 
Education Act of 1965, or consortia that include 
such an institution. 
(d) FEDERAL AND NON-FEDERAL SHARE; SUPPLE-
MENT, NOT SUPPLANT.— 
(1) FEDERAL SHARE.—The amount of the Fed-
eral share under this section for a fiscal year shall 
be not greater than 1⁄2 of the costs of the programs, 
services, and policies described in subsection (f) that 
are carried out under the grant. 
(2) NON-FEDERAL SHARE.— 
(A) IN
GENERAL.—The amount of the 
non-Federal share under this section for a fiscal 
year shall be not less than 1⁄2 of the costs of the 
programs, services, and policies described in 
subsection (f) that are carried out under the 
grant. The non-Federal share may be in cash or 
in kind, and may be provided from State re-
sources, local resources, contributions from pri-
vate organizations, or a combination thereof. 
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(B) FINANCIAL HARDSHIP WAIVER.—The 
Secretary may waive or reduce the non-Federal 
share of an eligible entity that has submitted an 
application under this section if the entity dem-
onstrates a need for such waiver or reduction 
due to extreme financial hardship, as defined by 
the Secretary by regulation. 
(3) SUPPLEMENT, NOT SUPPLANT.—The Fed-
eral and non-Federal shares required by this section 
shall be used to supplement, and not supplant, State 
and private resources that would otherwise be ex-
pended to establish and support programs described 
in subsection (a)(1)(B) at eligible entities. 
(e) APPLICATION.—An eligible entity seeking to re-
ceive a grant under this section shall submit to the Sec-
retary an application at such time, in such manner, and 
containing such information as the Secretary may require. 
Such application shall describe the programs under sub-
section (a)(1)(B) that the eligible entity will carry out 
using the grant funds, (including the programs, services, 
and policies under subsection (f)), including— 
(1) the goals of such programs, services, and 
policies; 
(2) how the eligible entity will allocate grant 
funds for such programs, services, and policies; 
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(9) the potential for such programs, services, 
and policies to be replicated at other institutions of 
higher education. 
(f) USES OF FUNDS.—An eligible entity receiving a 
grant under this section shall use the grant funds to carry 
out the programs described in subsection (a)(1)(B), which 
shall include at least 2 of the following activities: 
(1) Developing and implementing policies and 
programs to expand opportunities for students at eli-
gible entities described in subparagraphs (A) 
through (D) of section 502(a)(3) to earn bachelor’s 
degrees by— 
(A) facilitating the transfer of academic 
credits between institutions of higher education, 
including the transfer of academic credits for 
courses in the same field of study; and 
(B) expanding articulation agreements and 
guaranteed transfer agreements between such 
institutions, including through common course 
numbering and general core curriculum. 
(2) Expanding, enhancing, or creating academic 
programs or training programs, which shall be car-
ried out with industry or sector partnerships or in 
partnership with employers and may include other 
relevant partners, that provide relevant job-skill 
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training (including apprenticeships and worksite 
learning and training opportunities) for skilled occu-
pations in high-demand industries. 
(3) Providing student support services, includ-
ing— 
(A) intensive career and academic advising; 
(B) labor market information and job 
counseling; and 
(C) transitional job support, supportive 
services, or assistance in connecting students 
with community resources. 
(4) Creating workforce programs that provide a 
sequence of education and occupational training that 
leads to industry-recognized credentials, including 
programs that— 
(A) blend basic skills and occupational 
training that lead to industry-recognized cre-
dentials; 
(B) integrate developmental education cur-
ricula 
and 
instruction 
with 
for-credit 
coursework toward degree or certificate path-
ways; or 
(C) advance individuals on a career path 
toward high-wage occupations in high-demand 
industries. 
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(5) Building or enhancing linkages, including 
the development of dual enrollment programs and 
early college high schools, between— 
(A) secondary education or adult education 
programs 
(including 
programs 
established 
under the Carl D. Perkins Career and Tech-
nical Education Act of 2006 and title II of the 
Workforce Investment Act of 1998 (29 U.S.C. 
9201 et seq.)); and 
(B) eligible entities described in subpara-
graphs (A) through (D) of section 502(a)(3). 
(6) Implementing other innovative programs, 
services, and policies designed to— 
(A) increase postsecondary degree, certifi-
cate, and industry-recognized credential comple-
tion rates, particularly with respect to groups 
underrepresented in higher education, at eligible 
entities described in subparagraphs (A) through 
(D) of section 502(a)(3); and 
(B) increase the provision of training for 
students to enter skilled occupations in high-de-
mand industries. 
(7) Improving the timeliness of the process for 
creating degree, certificate, and industry-recognized 
credential programs at eligible entities described in 
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subparagraphs (A) through (D) of section 502(a)(3) 
that— 
(A) reflect and respond to regional labor 
market developments and trends; 
(B) effectively address the workforce needs 
of employers in the State; and 
(C) are designed in consultation with such 
employers. 
(g) BENCHMARKS.— 
(1) IN GENERAL.—Each eligible entity receiving 
a grant under this section shall develop quantifiable 
benchmarks on the following indicators (where appli-
cable), to be approved by the Secretary: 
(A) Closing gaps in enrollment and com-
pletion rates for— 
(i) groups underrepresented in higher 
education; and 
(ii) groups of students enrolled at the 
eligible entity (or at an institution of high-
er education under the jurisdiction of the 
eligible entity, in the case of an entity that 
is not an institution) who have the lowest 
enrollment and completion rates. 
(B) Addressing local and regional work-
force needs. 
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(C) Establishing articulation agreements 
between two-year and four-year public institu-
tions of higher education within a State. 
(D) Improving comprehensive employment 
and educational outcomes for postsecondary 
education and training programs, including— 
(i) student persistence from one aca-
demic year to the following academic year; 
(ii) the number of credits students 
earn toward a certificate or an associate’s 
degree; 
(iii) the number of students in devel-
opmental education courses who subse-
quently enroll in credit bearing coursework; 
(iv) transfer of general education 
credits between institutions of higher edu-
cation, as applicable; 
(v) completion of industry-recognized 
credentials or associate’s degrees to work 
in skilled occupations in high-demand in-
dustries; 
(vi) transfers to four-year institutions 
of higher education; and 
(vii) job placement related to skills 
training or associate’s degree completion. 
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(2) REPORT.—The eligible entity receiving such 
a grant shall annually measure and report to the 
Secretary the progress of the entity in achieving the 
benchmarks developed pursuant to paragraph (1). 
(h) PROVISION OF TRANSFER OF CREDIT INFORMA-
TION IN COMMUNITY COLLEGE COURSE SCHEDULES.— 
To the maximum extent practicable, each community col-
lege receiving a grant under this section shall include in 
each electronic and printed publication of the college’s 
course schedule, in a manner of the college’s choosing, for 
each course listed in the college’s course schedule, whether 
such course is transferable for credit toward the comple-
tion of a 4-year baccalaureate degree at a public institu-
tion of higher education in the State in which the college 
is located. 
(i) EVALUATION.—The Secretary shall allocate not 
more than two percent of the funds appropriated under 
section 501(b)(1) to the Institute of Education Sciences 
to conduct evaluations, ending not later than January 30, 
2014, that— 
(1) assess the effectiveness of the grant pro-
grams carried out by each eligible entity receiving 
such a grant in— 
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(A) improving postsecondary education 
completion rates (disaggregated by age, race, 
ethnicity, sex, income, and disability); 
(B) improving employment-related out-
comes for students served by such programs; 
(C) serving high-need populations; and 
(D) building or enhancing working part-
nerships with the State public employment serv-
ice or State or local workforce investment 
boards; and 
(2) include any other information or assess-
ments the Secretary may require. 
(j) REPORT.—The Secretary shall submit to the 
Committee on Health, Education, Labor, and Pensions of 
the Senate and the Committee on Education and Labor 
of the House of Representatives an annual report on 
grants awarded under this section, including— 
(1) the amount awarded to each eligible entity 
under this section; 
(2) a description of the activities conducted by 
each eligible entity receiving a grant under this sec-
tion; and 
(3) a summary of the results of the evaluations 
submitted to the Secretary under subsection (i) and 
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the progress each eligible entity made toward achiev-
ing the benchmarks developed under subsection (g). 
SEC. 504. GRANTS TO ELIGIBLE STATES FOR COMMUNITY 
COLLEGE PROGRAMS. 
(a) PROGRAM AUTHORIZATION.—From the amount 
appropriated to carry out this section, the Secretary, in 
coordination with the Secretary of Labor, shall award 
grants to eligible States, on a competitive basis, to imple-
ment the systematic reform of community colleges located 
in the State by carrying out programs, services, and poli-
cies that demonstrated effectiveness under the evaluation 
described in section 503(i). 
(b) ELIGIBLE STATE.—In this section, the term ‘‘eli-
gible State’’ means a State that demonstrates to the Sec-
retary in the application submitted pursuant to subsection 
(e) that the State— 
(1) has a plan under section 782 of the Higher 
Education Act of 1965 to increase the State’s rate 
of persistence in and completion of postsecondary 
education that takes into consideration and involves 
community colleges located in such State; 
(2) has a statewide longitudinal data system 
that includes data with respect to community col-
leges; 
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(3) has an articulation agreement pursuant to 
section 486A of the Higher Education Act of 1965 
(20 U.S.C. 1093a); 
(4) is in compliance with section 137 of such 
Act (20 U.S.C. 1015f); and 
(5) meets any other requirements the Secretary 
may require. 
(c) GRANT DURATION; RENEWAL.—A grant awarded 
under this section shall be awarded to an eligible State 
for a 6-year period, except that if the Secretary determines 
that the eligible State has not made demonstrable progress 
in achieving the benchmarks developed pursuant to sub-
section (g) by the end of the third year of the grant period, 
no further grant funds shall be made available to the enti-
ty after the date of such determination. 
(d) FEDERAL AND NON-FEDERAL SHARE; SUPPLE-
MENT, NOT SUPPLANT.— 
(1) FEDERAL SHARE.—The amount of the Fed-
eral share under this section for a fiscal year shall 
be not greater than 1⁄2 of the costs of the reform de-
scribed in subsection (f) that is carried out with the 
grant. 
(2) NON-FEDERAL SHARE.— 
(A) IN
GENERAL.—The amount of the 
Non-Federal share under this section for a fis-
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cal year shall be not less than 1⁄2 of the costs 
of the reform described in subsection (f) that is 
carried out with the grant. The non-Federal 
share may be in cash or in kind, and may be 
provided from State resources, local resources, 
contributions from private organizations, or a 
combination thereof. 
(B) FINANCIAL HARDSHIP WAIVER.—The 
Secretary may waive or reduce the non-Federal 
share of an eligible State that has submitted an 
application under this section if the State dem-
onstrates a need for such waiver or reduction 
due to extreme financial hardship, as defined by 
the Secretary by regulation. 
(3) SUPPLEMENT, NOT SUPPLANT.—The Fed-
eral and non-Federal share required by this section 
shall be used to supplement, and not supplant, State 
and private resources that would otherwise be ex-
pended to carry out the systematic reform of com-
munity colleges in a State. 
(e) APPLICATION.—An eligible State desiring to re-
ceive a grant under this section shall submit to the Sec-
retary an application at such time, in such manner, and 
containing such information as the Secretary may require. 
Such application shall describe the programs, service, and 
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policies to be used by the State to achieve the systematic 
reform described in subsection (f), including— 
(1) the goals of such programs, services, and 
policies; 
(2) how the State will allocate grant funds to 
carry out such programs, services, and policies, in-
cluding identifying any State or private entity that 
will administer such programs, services, and policies; 
(3) how such programs, services, and policies 
will enable the State to— 
(A) meet the benchmarks developed pursu-
ant to subsection (g), and how the State will 
track and report the State’s progress in reach-
ing such benchmarks; and 
(B) benefit students attending all commu-
nity colleges within the State; 
(4) how the State will use such programs, serv-
ices, and policies to establish quantifiable targets for 
improving graduation rates and employment-related 
outcomes; 
(5) how the State will serve high-need popu-
lations through such programs, services, and poli-
cies; 
(6) how the State will partner with the State 
public employment service and State or local work-
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