dents within participating States of the oppor-
tunity to participate in the demonstration pro-
gram and of the participation requirements.’’
(C) by striking subsection (b); 
(D) by redesignating subsections (c), (d), 
and (e) as subsections (b), (c), and (d), respec-
tively. 
(2) MASTER CALENDAR.—Section 482(a)(1)(B) 
(20 U.S.C. 1089) is amended to read as follows: 
‘‘(B) by March 1: proposed modifications, 
updates, and notices pursuant to sections 
479(c)(2)(C), 478, and 483(a)(6) published in 
the Federal Register;’’. 
(c) INCREASING ACCESS TO TECHNOLOGY.—Section 
483 (20 U.S.C. 1087ss) is further amended by adding at 
the end the following: 
‘‘(e) ADDRESSING THE DIGITAL DIVIDE.—The Sec-
retary shall utilize savings accrued by moving more appli-
cants to the electronic forms described in subsection (a)(4) 
to improve access to the electronic forms described in sub-
section (a)(4) for applicants meeting the requirements of 
section 479(c).’’
(d) SIMPLIFY THE TREATMENT OF INCOME: REDUC-
ING UNTAXED INCOME AND BENEFITS.—Subsection (b)
of section 480 (20 U.S.C. 1087vv(b)) is amended to read 
as follows: 
‘‘(b) UNTAXED INCOME AND BENEFITS.—
‘‘(1) The term ‘untaxed income and benefits’ 
means—
‘‘(A) child support received; 
‘‘(B) workman’s compensation; 
‘‘(C) veteran’s benefits such as death pen-
sion, dependency, and indemnity compensation, 
but excluding veterans’ education benefits as 
defined in subsection (c); 
‘‘(D) interest on tax-free bonds; 
‘‘(E) housing, food, and other allowances 
(excluding rent subsidies for low-income hous-
ing) for military, clergy, and others (including 
cash payments and cash value of benefits); 
‘‘(F) cash support or any money paid on 
the student‘s behalf, except, for dependent stu-
dents, funds provided by the student’s parents; 
‘‘(G) untaxed portion of pensions; 
‘‘(H) payments to individual retirement ac-
counts and Keogh accounts excluded from in-
come for Federal income tax purposes; and 
‘‘(I) any other untaxed income and bene-
fits, such as Black Lung Benefits, Refugee As-
sistance, railroad retirement benefits, or Job 
Training Partnership Act noneducational bene-
fits or benefits received through participation in 
employment and training activities under title I 
of the Workforce Investment Act of 1998. 
‘‘(2) The term ‘untaxed income and benefits’ 
shall not include the amount of additional child tax 
credit claimed for Federal income tax purposes.’’. 
(e) REDUCING THE NUMBER OF QUESTIONS.—Sec-
tion 484 (20 U.S.C. 1091) is amended by striking sub-
section (r). 
(f) ALLOWANCE FOR STATE AND OTHER TAXES.—
(1) ALLOWANCE
FOR
STATE
AND
LOCAL 
TAXES.—Section 478 (20 U.S.C. 1087rr) is amend-
ed—
(A) by striking subsection (g); and 
(B) by redesignating subsection (h) as sub-
section (g). 
(2) HOLDING STUDENTS HARMLESS.—Section 
475(c) (20 U.S.C. 1087oo(c)) is amended—
(A) in paragraph (1): 
(i) by striking subparagraph (B); and 
(ii) by redesignating subparagraphs 
(C), (D), (E), and (F) as subparagraphs 
(B), (C), (D), and (E), respectively;
(B) by striking paragraph (2); 
(C) by striking paragraph (4) and insert-
ing the following: 
‘‘(4) INCOME
PROTECTION
ALLOWANCE.—The 
income protection allowance is determined by the fol-
lowing table (or a successor table prescribed by the 
Secretary under section 478):
‘‘Income Protection Allowance 
Family Size 
Number in College 
(including 
student) 
For each 
additional 
subtract: 
$15,207
$12,599
................
................
................
$3,641
18,937
16,350
$13,742
................
................
..................
23,388
20,779
18,193
$15,596
................
..................
27,595
24,986
22,400
19,802
$17,216
..................
32,268
29,670
27,084
24,487
21,900
..................
For each ad-
ditional add: 
2,586
2,586
2,586
2,586
2,586
’’; 
and 
(D) by redesignating paragraphs (3), (4) 
and (5) as paragraphs (2), (3) and (4), respec-
tively. 
(3) DEPENDENT
STUDENT
INCREASE
IN
IN-
COME
PROTECTION
ALLOWANCE.—Section 475(g) 
(20 U.S.C. 1087oo(g)) is amended—
(A) in paragraph (2)—
(i) by striking subparagraph (B); 
(ii) by striking subparagraph (D) and 
inserting the following: