HR 2669 PCS
SEC. 202. COOPERATIVE EDUCATION REWARDS FOR INSTI-
TUTIONS 
THAT 
RESTRAIN 
TUITION 
IN-
CREASES. 
The Higher Education Act of 1965 (20 U.S.C. 1001 
et seq.) is amended by adding at the end the following 
title: 
‘‘TITLE VIII—RESTRAINING 
TUITION INCREASES 
‘‘PART A—COOPERATIVE EDUCATION 
‘‘SEC. 801. DEFINITION OF COOPERATIVE EDUCATION. 
‘‘For the purpose of this title the term ‘cooperative 
education’ means the provision of alternating or parallel 
periods of academic study and public or private employ-
ment in order to give students work experiences related 
to their academic or occupational objectives and an oppor-
tunity to earn the funds necessary for continuing and com-
pleting their education. 
‘‘SEC. 802. AUTHORIZATION OF APPROPRIATIONS; RES-
ERVATIONS. 
‘‘(a) APPROPRIATIONS.—There shall be available to 
the Secretary to carry out this title from funds not other-
wise appropriated $15,000,000 for each of the fiscal years 
2008 through 2012. 
‘‘(b) RESERVATIONS.—Of the amount appropriated 
for each such fiscal year— 
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‘‘(1) not less than 50 percent shall be available 
for carrying out grants to institutions of higher edu-
cation and combinations of such institutions de-
scribed in section 803(a)(1)(A) for cooperative edu-
cation under section 803; 
‘‘(2) not less than 25 percent shall be available 
for carrying out grants to institutions of higher edu-
cation described in section 803(a)(1)(B) for coopera-
tive education under section 803; 
‘‘(3) not more than 11 percent shall be avail-
able for demonstration projects under paragraph (1) 
of section 804(a); 
‘‘(4) not more than 11 percent shall be avail-
able for training and resource centers under para-
graph (2) of section 804(a); and 
‘‘(5) not more than 3 percent shall be available 
for research under paragraph (3) of section 804(a). 
‘‘(c) AVAILABILITY
OF APPROPRIATIONS.—Appro-
priations under this title shall not be available for the pay-
ment of compensation of students for employment by em-
ployers under arrangements pursuant to this title. 
‘‘(d) SUNSET.—The authority to carry out this title 
shall expire at the end of fiscal year 2012. 
‘‘SEC. 803. GRANTS FOR COOPERATIVE EDUCATION. 
‘‘(a) GRANTS AUTHORIZED.— 
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‘‘(1) IN GENERAL.—The Secretary is author-
ized— 
‘‘(A) from the amount available under sec-
tion 802(b)(1) in each fiscal year and in accord-
ance with the provisions of this title, to make 
grants to institutions of higher education or 
combinations of such institutions that have not 
previously received a grant under this para-
graph to pay the Federal share of the cost of 
planning, establishing, expanding, or carrying 
out programs of cooperative education by such 
institutions or combinations of institutions; and 
‘‘(B) from the amount available under sec-
tion 802(b)(2) in each fiscal year and in accord-
ance with the provisions of this title, to make 
grants to institutions of higher education that 
are operating an existing cooperative education 
program (as determined by the Secretary) to 
pay the cost of planning, establishing, expand-
ing, or carrying out programs of cooperative 
education by such institutions. 
‘‘(2) PROGRAM
REQUIREMENT.—Cooperative 
education programs assisted under this section shall 
provide alternating or parallel periods of academic 
study and of public or private employment, giving 
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students work experience related to their academic 
or occupational objectives and the opportunity to 
earn the funds necessary for continuing and com-
pleting their education. 
‘‘(3) AMOUNT OF GRANTS.— 
‘‘(A) The amount of each grant awarded 
pursuant to paragraph (1)(A) to any institution 
of higher education or combination of such in-
stitutions in any fiscal year shall not exceed 
$500,000. 
‘‘(B)(i) Except as provided in clauses (ii) 
and (iii), the Secretary shall award grants in 
each fiscal year to each institution of higher 
education described in paragraph (1)(B) that 
has an application approved under subsection 
(b) in an amount which bears the same ratio to 
the amount reserved pursuant to section 
802(b)(2) for such fiscal year as the number of 
unduplicated students placed in cooperative 
education jobs during the preceding fiscal year 
(other than cooperative education jobs under 
section 804 and as determined by the Sec-
retary) by such institution of higher education 
bears to the total number of all such students 
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placed in such jobs during the preceding fiscal 
year by all such institutions. 
‘‘(ii) No institution of higher education 
shall receive a grant pursuant to paragraph 
(1)(B) in any fiscal year in an amount which 
exceeds 25 percent of such institution’s cooper-
ative education program’s personnel and oper-
ating budget for the preceding fiscal year. 
‘‘(iii) The minimum annual grant amount 
which an institution of higher education is eligi-
ble to receive under paragraph (1)(B) is $1,000 
and the maximum annual grant amount is 
$75,000. 
‘‘(4) LIMITATION.—The Secretary shall not 
award grants pursuant to paragraphs (1)(A) and 
(1)(B) to the same institution of higher education or 
combination of such institution in any one fiscal 
year. 
‘‘(5) USES.—Grants under paragraph (1)(B) 
shall be used exclusively— 
‘‘(A) to expand the quality and participa-
tion of a cooperative education program; 
‘‘(B) for outreach in new curricular areas; 
and 
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‘‘(C) for outreach to potential participants 
including underrepresented and nontraditional 
populations. 
‘‘(b) APPLICATIONS.—Each institution of higher edu-
cation or combination of such institutions desiring to re-
ceive a grant under this section shall submit an application 
to the Secretary at such time and in such manner as the 
Secretary shall prescribe. Each such application shall— 
‘‘(1) set forth the program or activities for 
which a grant is authorized under this section; 
‘‘(2) specify each portion of such program or 
activities which will be performed by a nonprofit or-
ganization or institution other than the applicant, 
and the compensation to be paid for such perform-
ance; 
‘‘(3) provide that the applicant will expend dur-
ing such fiscal year for the purpose of such program 
or activities not less than the amount expended for 
such purpose during the previous fiscal year; 
‘‘(4) describe the plans which the applicant will 
carry out to assure, and contain a formal statement 
of the institution’s commitment which assures, that 
the applicant will continue the cooperative education 
program beyond the 5-year period of Federal assist-
ance described in subsection (c)(1) at a level which 
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is not less than the total amount expended for such 
program during the first year such program was as-
sisted under this section; 
‘‘(5) provide that, in the case of an institution 
of higher education that provides a 2-year program 
which is acceptable for full credit toward a bach-
elor’s degree, the cooperative education program will 
be available to students who are certificate or asso-
ciate degree candidates and who carry at least one- 
half the normal full-time academic workload; 
‘‘(6) provide that the applicant will— 
‘‘(A) for each fiscal year for which the ap-
plicant receives a grant, make such reports with 
respect to the impact of the cooperative edu-
cation program in the previous fiscal year as 
may be essential to ensure that the applicant is 
complying with the provisions of this section, 
including— 
‘‘(i) the number of unduplicated stu-
dent applicants in the cooperative edu-
cation program; 
‘‘(ii) the number of unduplicated stu-
dents placed in cooperative education jobs; 
‘‘(iii) the number of employers who 
have hired cooperative education students; 
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‘‘(iv) the average income for students 
derived from working in cooperative edu-
cation jobs; and 
‘‘(v) the increase or decrease in the 
number of unduplicated students placed in 
cooperative education jobs in each fiscal 
year compared to the previous fiscal year; 
and 
‘‘(B) keep such records as are essential to 
ensure that the applicant is complying with the 
provisions of this title, including the notation of 
cooperative education employment on the stu-
dent’s transcript; 
‘‘(7) describe the extent to which programs in 
the academic discipline for which the application is 
made have had a favorable reception by public and 
private sector employers; 
‘‘(8) describe the extent to which the institution 
is committed to extending cooperative education on 
an institution-wide basis for all students who can 
benefit; 
‘‘(9) describe the plans that the applicant will 
carry out to evaluate the applicant’s cooperative edu-
cation program at the end of the grant period; 
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‘‘(10) provide for such fiscal control and fund 
accounting procedures as may be necessary to assure 
proper disbursement of, and accounting for, Federal 
funds paid to the applicant under this title; 
‘‘(11) demonstrate a commitment to serving all 
underserved populations; and 
‘‘(12) include such other information as is es-
sential to carry out the provisions of this title. 
‘‘(c) DURATION OF GRANTS; FEDERAL SHARE.— 
‘‘(1) DURATION OF GRANTS.—No individual in-
stitution of higher education may receive, individ-
ually or as a participant in a combination of such in-
stitutions— 
‘‘(A) a grant pursuant to subsection 
(a)(1)(A) for more than 5 fiscal years; or 
‘‘(B) a grant pursuant to subsection 
(a)(1)(B) for more than 5 fiscal years. 
‘‘(2) FEDERAL SHARE.—The Federal share of a 
grant under section 803(a)(1)(A) may not exceed— 
‘‘(A) 85 percent of the cost of carrying out 
the program or activities described in the appli-
cation in the first year the applicant receives a 
grant under this section; 
‘‘(B) 70 percent of such cost in the second 
such year; 
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‘‘(C) 55 percent of such cost in the third 
such year; 
‘‘(D) 40 percent of such cost in the fourth 
such year; and 
‘‘(E) 25 percent of such cost in the fifth 
such year. 
‘‘(3) SPECIAL RULE.—Any provision of law to 
the contrary notwithstanding, the Secretary shall not 
waive the provisions of this subsection. 
‘‘(d) MAINTENANCE OF EFFORT.—If the Secretary 
determines that a recipient of funds under this section has 
failed to maintain the fiscal effort described in subsection 
(b)(3), then the Secretary may elect not to make grant 
payments under this section to such recipient. 
‘‘SEC. 804. DEMONSTRATION AND INNOVATION PROJECTS; 
TRAINING AND RESOURCE CENTERS; AND RE-
SEARCH. 
‘‘(a) AUTHORIZATION.—The Secretary is authorized, 
in accordance with the provisions of this section, to make 
grants and enter into contracts— 
‘‘(1) from the amounts available in each fiscal 
year under section 802(b)(3), for the conduct of 
demonstration projects designed to demonstrate or 
determine the feasibility or value of innovative meth-
ods of cooperative education; 
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‘‘(2) from the amounts available in each fiscal 
year under section 802(b)(4), for the conduct of 
training and resource centers designed to— 
‘‘(A) train personnel in the field of cooper-
ative education; 
‘‘(B) improve materials used in cooperative 
education programs if such improvement is con-
ducted in conjunction with other activities de-
scribed in this paragraph; 
‘‘(C) furnish technical assistance to institu-
tions of higher education to increase the poten-
tial of the institution to continue to conduct a 
cooperative education program without Federal 
assistance; 
‘‘(D) encourage model cooperative edu-
cation programs which furnish education and 
training in occupations in which there is a na-
tional need; 
‘‘(E) support partnerships under which an 
institution carrying out a comprehensive cooper-
ative education program joins with one or more 
institutions of higher education in order to— 
‘‘(i) assist the institutions other than 
the comprehensive cooperative education 
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institution to develop and expand an exist-
ing program of cooperative education; or 
‘‘(ii) establish and improve or expand 
comprehensive cooperative education pro-
grams; and 
‘‘(F) encourage model cooperative edu-
cation programs in the fields of science and 
mathematics for women and minorities who are 
underrepresented in such fields; and 
‘‘(3) from the amounts available in each fiscal 
year under section 802(b)(5), for the conduct of re-
search relating to cooperative education. 
‘‘(b) ADMINISTRATIVE PROVISION.— 
‘‘(1) IN GENERAL.—To carry out this section, 
the Secretary may— 
‘‘(A) make grants to or contracts with in-
stitutions of higher education, or combinations 
of such institutions; and 
‘‘(B) make grants to or contracts with 
other public or private nonprofit agencies or or-
ganizations, whenever such grants or contracts 
will make an especially significant contribution 
to attaining the objectives of this section. 
‘‘(2) LIMITATION.— 
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‘‘(A) The Secretary may not use more than 
3 percent of the amount appropriated to carry 
out this section in each fiscal year to make 
grants or enter into contracts described in para-
graph (1)(A). 
‘‘(B) The Secretary may use not more 
than 3 percent of the amount appropriated to 
carry out this section in each fiscal year to 
make grants or enter into contracts described in 
paragraph (1)(B). 
‘‘(c) SUPPLEMENT NOT SUPPLANT.—A recipient of 
a grant or contract under this section may use the funds 
provided only to supplement and, to the extent possible, 
increase the level of funds that would, in the absence of 
such funds, be made available from non-Federal sources 
to carry out the activities supported by such grant or con-
tract, and in no case to supplant such funds from non- 
Federal sources. 
‘‘PART B—LOW TUITION 
‘‘SEC. 811. INCENTIVES AND REWARDS FOR LOW TUITION. 
‘‘(a) REWARDS FOR LOW TUITION.— 
‘‘(1) COMPETITIVE
GRANTS.—The Secretary 
shall award grants on a competitive basis to institu-
tions of higher education that, for academic year 
2008–2009 or any succeeding academic year, have 
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