II 
109TH CONGRESS 
1ST SESSION H. R. 3863 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 28, 2005 
Received 
AN ACT 
To provide the Secretary of Education with waiver authority 
for the reallocation rules in the Campus-Based Aid pro-
grams, and to extend the deadline by which funds have 
to be reallocated to institutions of higher education due 
to a natural disaster.
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; REFERENCES. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Natural Disaster Student Aid Fairness Act’’. 
(b) REFERENCES.—References in this Act to ‘‘the 
Act’’ are references to the Higher Education Act of 1965 
(20 U.S.C. 1001 et seq.). 
SEC. 2. ALLOCATION AND USE OF CAMPUS-BASED HIGHER 
EDUCATION ASSISTANCE. 
(a) WAIVER OF MATCHING REQUIREMENTS.—Not-
withstanding 
sections 
413C(a)(2), 
443(b)(5), 
and 
463(a)(2) of the Act (20 U.S.C. 1070b–2(a)(2); 42 U.S.C. 
2753(b)(5); 20 U.S.C. 1087cc(a)(2)), with respect to 
funds made available for academic years 2004–2005 and 
2005–2006— 
(1) in the case of an institution of higher edu-
cation located in an area affected by a Gulf hurri-
cane disaster, the Secretary shall waive the require-
ment that a participating institution of higher edu-
cation provide a non-Federal share or a capital con-
tribution, as the case may be, to match Federal 
funds provided to the institution for the programs 
authorized pursuant to subpart 3 of part A, part C, 
and part E of title IV of the Act; and
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(2) in the case of an institution of higher edu-
cation that has accepted for enrollment any affected 
students, the Secretary may waive that matching re-
quirement after considering the institution’s student 
population and existing resources, using consistent 
and objective criteria. 
(b) WAIVER OF REALLOCATION RULES.— 
(1) AUTHORITY
TO
REALLOCATE.—Notwith-
standing sections 413D(d), 442(d), and 462(I) of 
the Act (20 U.S.C. 1070b–3(d); 42 U.S.C. 2752(d); 
20 U.S.C. 1087bb(I)), the Secretary shall— 
(A) reallocate any funds returned under 
any of those sections that were allocated to in-
stitutions of higher education for award year 
2004–2005 to an institution of higher education 
that is eligible under paragraph (2) of this sub-
section; and 
(B) waive the allocation reduction for 
award year 2006–2007 for an institution re-
turning more than 10 percent of its allocation 
under any of those sections. 
(2) ELIGIBLE
INSTITUTIONS
FOR
REALLOCA-
TION.—An institution of higher education may re-
ceive a reallocation of excess allocations under this 
subsection if the institution—
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(A) participates in the program for which 
excess allocations are being reallocated; and 
(B)(I) is located in an area affected by a 
Gulf hurricane disaster; or 
(ii) has accepted for enrollment any af-
fected students in academic year 2005–2006. 
(3) BASIS OF REALLOCATION.—The Secretary 
shall determine the manner in which excess alloca-
tions shall be reallocated to institutions under para-
graph (1), and shall give additional consideration to 
the needs of institutions located in an area affected 
by a Gulf hurricane disaster. 
(4) ADDITIONAL
WAIVER
AUTHORITY.—Not-
withstanding any other provision of law, in order to 
carry out this subsection, the Secretary may waive 
or modify any statutory or regulatory provision re-
lating to the reallocation of excess allocations under 
subpart 3 of part A, part C, or part E of title IV 
of the Act in order to ensure that assistance is re-
ceived by affected institutions for affected students. 
(c) AVAILABILITY OF FUNDS DATE EXTENSION.— 
Notwithstanding any other provision of law— 
(1) any funds available to the Secretary under 
sections 413A, 441, and 461 of the Act (20 U.S.C. 
1070b; 42 U.S.C. 2751; 20 U.S.C. 1087aa) for