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‘‘(i) 60 percent of the allocable 
amount for such fiscal year shall be avail-
able to eligible institutions described in 
subsection (a)(3) and shall be made avail-
able as grants under section 316, treating 
such 60 percent of the allocable amount as 
part of the amount appropriated for such 
fiscal year in a regular or supplemental ap-
propriation Act to carry out such section, 
and using such 60 percent for purposes de-
scribed in subsection (c) of such section; 
‘‘(ii) 30 percent of the allocable 
amount for such fiscal year shall be avail-
able to eligible institutions described in 
subsection (a)(4) and shall be made avail-
able as grants under section 317, treating 
such 30 percent of the allocable amount as 
part of the amount appropriated for such 
fiscal year in a regular or supplemental ap-
propriation Act to carry out such section 
and using such 60 percent for purposes de-
scribed in subsection (a) of such section; 
and 
‘‘(iii) 10 percent of the allocable 
amount for such fiscal year shall be avail-
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able to eligible institutions described in 
subsection (a)(6) for activities described in 
section 311(c). 
‘‘(c) DEFINITIONS.— 
‘‘(1) PREDOMINANTLY BLACK INSTITUTION.— 
The term ‘Predominantly Black institution’ means 
an institution of higher education that— 
‘‘(A) has an enrollment of needy under-
graduate students as required and defined by 
paragraph (2); 
‘‘(B) has an average educational and gen-
eral expenditure which is low, per full-time 
equivalent undergraduate student in comparison 
with the average educational and general ex-
penditure 
per 
full-time 
equivalent 
under-
graduate student of institutions that offer simi-
lar instruction, except that the Secretary may 
apply the waiver requirements described in sec-
tion 392(b) to this subparagraph in the same 
manner as the Secretary applies the waiver re-
quirements to section 312(b)(1)(B); 
‘‘(C) has an enrollment of undergraduate 
students— 
‘‘(i) that is at least 40 percent Black 
American students;
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‘‘(ii) that is at least 1,000 under-
graduate students; 
‘‘(iii) of which not less than 50 per-
cent of the undergraduate students en-
rolled at the institution are low-income in-
dividuals or first-generation college stu-
dents (as that term is defined in section 
402A(g)); and 
‘‘(iv) of which not less than 50 per-
cent of the undergraduate students are en-
rolled in an educational program leading to 
a bachelor’s or associate’s degree that the 
institution is licensed to award by the 
State in which it is located; 
‘‘(D) is legally authorized to provide, and 
provides within the State, an educational pro-
gram for which the institution of higher edu-
cation awards a bachelors degree, or in the case 
of a junior or community college, an associate’s 
degree; 
‘‘(E) is accredited by a nationally recog-
nized accrediting agency or association deter-
mined by the Secretary to be a reliable author-
ity as to the quality of training offered, or is, 
according to such an agency or association,
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making reasonable progress toward accredita-
tion; and 
‘‘(F) is not receiving assistance under part 
B of title III. 
‘‘(2) ENROLLMENT
OF
NEEDY
STUDENTS.— 
The term ‘enrollment of needy students’ means the 
enrollment at an eligible institution with respect to 
which not less than 50 percent of the undergraduate 
students enrolled in an academic program leading to 
a degree— 
‘‘(A) in the second fiscal year preceding 
the fiscal year for which the determination is 
made, were Federal Pell Grant recipients for 
such year; 
‘‘(B) come from families that receive bene-
fits under a means-tested Federal benefits pro-
gram (as defined in paragraph (4)); 
‘‘(C) attended a public or nonprofit private 
secondary school— 
‘‘(i) that is in the school district of a 
local educational agency that was eligible 
for assistance under part A of title I of the 
Elementary and Secondary Education Act 
of 1965 for any year during which the stu-
dent attended such secondary school; and
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‘‘(ii) which for the purpose of this 
paragraph and for that year was deter-
mined by the Secretary (pursuant to regu-
lations and after consultation with the 
State educational agency of the State in 
which the school is located) to be a school 
in which the enrollment of children counted 
under section 1113(a)(5) of such Act ex-
ceeds 30 percent of the total enrollment of 
such school; or 
‘‘(D) are first-generation college students 
(as that term is defined in section 402A(g)), 
and a majority of such first-generation college 
students are low-income individuals. 
‘‘(3) LOW-INCOME
INDIVIDUAL.—The term 
‘low-income individual’ has the meaning given such 
term in section 402A(g). 
‘‘(4) MEANS-TESTED FEDERAL BENEFIT PRO-
GRAM.—The term ‘means-tested Federal benefit pro-
gram’ means a program of the Federal Government, 
other than a program under title IV, in which eligi-
bility for the programs’ benefits, or the amount of 
such benefits, or both, are determined on the basis 
of income or resources of the individual or family 
seeking the benefit.
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‘‘(5) ASIAN AMERICAN AND PACIFIC ISLANDER- 
SERVING INSTITUTION.—The term ‘Asian American 
and Pacific Islander-serving institution’ means an 
institution of higher education that— 
‘‘(A) is an eligible institution under section 
312(b); and 
‘‘(B) at the time of application, has an en-
rollment of undergraduate students that is at 
least 10 percent Asian American and Pacific Is-
lander students. 
‘‘(6) ASIAN
AMERICAN.—The term ‘Asian 
American’ has the meaning given the term ‘Asian’ in 
the Office of Management and Budget’s Standards 
for Maintaining, Collecting, and Presenting Federal 
Data on Race and Ethnicity as published on October 
30, 1997 (62 Fed. Reg. 58789). 
‘‘(7) PACIFIC ISLANDER.—The term ‘Pacific Is-
lander’ has the meaning given the term ‘Native Ha-
waiian’ or ‘Other Pacific Islander’ in such Standards 
for Maintaining, Collecting, and Presenting Federal 
Data on Race and Ethnicity. 
‘‘(d) TERMINATION OF AUTHORITY.—The authority 
to carry out this section expires at the end of fiscal year 
2012.’’.
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PART B—COLLEGE ACCESS CHALLENGE GRANTS 
SEC. 411. COLLEGE ACCESS CHALLENGE GRANTS. 
(a) CHALLENGE GRANT PROGRAM ESTABLISHED.— 
(1) PROGRAM
ESTABLISHED.—The Secretary 
shall establish a program to award matching grants 
to increase the number of eligible students from un-
derserved populations who enter and complete col-
lege by providing grants to philanthropic organiza-
tions who are members of eligible consortia to carry 
out the activities of the consortia to achieve this pur-
pose, including— 
(A) providing need-based grants to eligible 
students; 
(B) providing support to eligible students 
through school- or institution-based mentoring 
programs; and 
(C) conducting outreach programs to en-
courage eligible students to pursue higher edu-
cation. 
(2) GRANT
PERIOD; RENEWABILITY.—Grants 
under this section shall be awarded for one 5-year 
period, and may not be renewed. 
(3) GRANT AMOUNTS.— 
(A) IN GENERAL.—A grant awarded under 
this part for a given fiscal year to a philan-
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thropic organization shall be in an amount 
equal to the lesser of— 
(i) 200 percent of the amount of char-
itable gifts received in the preceding fiscal 
year by the eligible consortia, including 
charitable gifts received by the individual 
members of the consortia with which the 
philanthropic organization is associated; or 
(ii) the maximum grant amount estab-
lished by the Secretary by regulation, pur-
suant to subsection (f). 
(B) GIFTS
PROVIDED
IN
CASH
OR
IN- 
KIND.—For the purposes of subparagraph (A), 
the charitable gifts received by an eligible con-
sortia and its members may be provided in cash 
or in-kind, including physical non-cash con-
tributions of monetary value such as property, 
facilities, and equipment, but excluding services. 
(b) USES OF GRANT.— 
(1) IN GENERAL.—A philanthropic organization 
receiving a grant under this section shall— 
(A) provide grants to eligible students; and 
(B) distribute grants to members of the 
consortia with which the philanthropic organiza-
tion is affiliated, in accordance with the plan
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described in subsection (c)(2)(A), to fund the 
activities of such consortia in accordance with 
the application under subsection (c). 
(2) LIMITATION.—Not more than 15 percent of 
the funds made available annually through a grant 
under this section may be used for administrative 
purposes. 
(c) APPLICATIONS.—A philanthropic organization de-
siring a grant under this section shall submit an applica-
tion to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require. 
Such application shall include the following: 
(1) A description of an eligible consortia that 
meets the requirements of subsection (d), with which 
the philanthropic organization is affiliated, in ac-
cordance with subsection (g). 
(2) A detailed description of— 
(A) the philanthropic organization’s plans 
for distributing the matching grant funds 
among the members of the eligible consortia; 
and 
(B) the eligible consortia’s plans for using 
the matching grant funds, including how the 
funds will be used to provide financial aid, men-
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•HR 2669 EH1S 
toring, and outreach programs to eligible stu-
dents. 
(3) A plan to ensure the viability of the eligible 
consortia and the work of the consortia beyond the 
grant period. 
(4) A detailed description of the activities that 
carry out this section that are conducted by the eli-
gible consortia at the time of the application, and 
how the matching grant funds will assist the eligible 
consortia with expanding and enhancing such activi-
ties. 
(5) A description of the organizational structure 
that will be used to administer the activities carried 
out under the plan, including a description of the 
system used to track the participation of students 
who receive grants to degree completion. 
(6) A description of the strategies that will be 
used to identify eligible students who are enrolled in 
secondary school and who may benefit from the ac-
tivities of the eligible consortia. 
(d) ELIGIBLE CONSORTIA.—An eligible consortia 
with which a philanthropic organization is affiliated for 
the program under this section shall—
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(1) be a partnership of mulitple entities that 
have agreed to work together to carry out this sec-
tion, including— 
(A) such philanthropic organization, which 
shall serve as the manager of the consortia; 
(B) a State that demonstrates a commit-
ment to ensuring the creation of a Statewide 
system to address the issues of early interven-
tion and financial support for eligible students 
to enter and remain in college; and 
(C) at the discretion of the philanthropic 
organization described in subparagraph (A), ad-
ditional partners, including other non-profit or-
ganizations, government entities (including local 
municipalities, school districts, cities, and coun-
ties), institutions of higher education, and other 
public or private programs that provide men-
toring or outreach programs; and 
(2) conduct activities to assist eligible students 
with entering and remaining in college, which in-
clude— 
(A) providing need-based grants to eligible 
students; 
(B) providing early notification to low-in-
come students of their potential eligibility for
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Federal financial aid (which may include assist-
ing students and families with filling out 
FAFSA forms), as well as financial aid and 
other support available from the eligible con-
sortia; 
(C) encouraging increased eligible student 
participation in higher education through men-
toring or outreach programs; and 
(D) conducting marketing and outreach ef-
forts that are designed to— 
(i) encourage full participation of eli-
gible students in the activities of the con-
sortia that carry out this section; and 
(ii) provide the communities impacted 
by the activities of the consortia with a 
general knowledge about the efforts of the 
consortia. 
(e) REGULATIONS.—The Secretary shall promulgate 
regulations to carry out this section. Such regulations 
shall include— 
(1) the maximum grant amount that may be 
awarded to a philanthropic organization under this 
section; 
(2) the minimum amount of chartable gifts an 
eligible consortia (including its members) shall re-
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•HR 2669 EH1S 
ceive in a fiscal year for the philanthropic organiza-
tion affiliated with such consortia to be eligible for 
a grant under this section. 
(f) DEFINITIONS.—For the purposes of this section: 
(1) ELIGIBLE
STUDENT.—The term ‘‘eligible 
student’’ means an individual who— 
(A) is a member of an underserved popu-
lation; 
(B) is enrolled— 
(i) in a secondary school pursuing a 
high school diploma; or 
(ii) in an institution of higher edu-
cation or is planning to attend an institu-
tion of higher education; and 
(C) either— 
(i) is receiving, or has received, finan-
cial assistance or support services from the 
consortium; or 
(ii) meets 2 or more of the following 
criteria: 
(I) Has an expected family con-
tribution equal to zero (as described 
in section 479 of the Higher Edu-
cation Act of 1965) or a comparable 
alternative based upon the State’s ap-