156 
able to respond to emergencies such as acts of 
terrorism, campus violence, and natural disas-
ters. 
(D) Retrofitting necessary to increase the 
energy efficiency of the community college’s fa-
cilities. 
(E) Modifications necessary to make facili-
ties accessible in compliance with the Americans 
with Disabilities Act of 1990 (42 U.S.C. 12101 
et seq.) and section 504 of the Rehabilitation 
Act of 1973 (29 U.S.C. 794). 
(F) Abatement, removal, or interim con-
trols of asbestos, polychlorinated biphenyls, 
mold, mildew, or lead-based hazards, including 
lead-based paint hazards from the community 
college’s facilities. 
(G) Modernization, renovation, or repair 
necessary to reduce the consumption of coal, 
electricity, land, natural gas, oil, or water. 
(H) Modernization, renovation, and repair 
relating to improving science and engineering 
laboratories, libraries, or instructional facilities. 
(I) Installation or upgrading of educational 
technology infrastructure.
157 
(J) Installation or upgrading of renewable 
energy generation and heating systems, includ-
ing solar, photovoltaic, wind, biomass (including 
wood pellet and woody biomass), waste-to-en-
ergy, solar-thermal and geothermal systems, 
and energy audits. 
(K) Expansion or building of computer lab 
facilities, including facilities used to provide in-
formation technology training to students and 
members of the public. 
(L) Other modernization, renovation, or re-
pair projects that are primarily for instruction, 
research, or student housing. 
(M) Required environmental remediation 
related to modernization, renovation, or repair 
described in subparagraphs (A) through (L). 
(2) GREEN SCHOOL REQUIREMENT.—A commu-
nity college receiving assistance through a loan de-
scribed in subsection (a)(1)(A), a capital campaign 
described in subsection (a)(1)(B), or a loan from a 
revolving loan fund described in subsection (a)(1)(C) 
shall use not less than 50 percent of such assistance 
to carry out projects for construction, moderniza-
tion, renovation, or repair that are certified, verified, 
or consistent with the applicable provisions of—
158 
(A) the LEED Green Building Rating Sys-
tem; 
(B) Energy Star; 
(C) the CHPS Criteria, as applicable; 
(D) Green Globes; or 
(E) an equivalent program adopted by the 
State or the State higher education agency that 
includes a verifiable method to demonstrate 
compliance with such program. 
(3) PROHIBITED USES OF FUNDS.— 
(A) IN
GENERAL.—No funds awarded 
under this section may be used for— 
(i) payment of maintenance costs; 
(ii) construction, modernization, ren-
ovation, or repair of stadiums or other fa-
cilities primarily used for athletic contests 
or exhibitions or other events for which ad-
mission is charged to the general public; or 
(iii) construction, modernization, ren-
ovation, or repair of facilities— 
(I) used for sectarian instruction, 
religious worship, or a school or de-
partment of divinity; or
159 
(II) in which a substantial por-
tion of the functions of the facilities 
are subsumed in a religious mission. 
(B) FOUR-YEAR INSTITUTIONS.—No funds 
awarded to a four-year public institution of 
higher education under this section may be 
used for any facility, service, or program of the 
institution that is not available to students who 
are pursuing a degree or certificate that is not 
a bachelor’s, master’s, professional, or other ad-
vanced degree. 
(d) APPLICATION OF GEPA.—The grant program 
authorized in this section is an applicable program (as 
that term is defined in section 400 of the General Edu-
cation Provisions Act (20 U.S.C. 1221)) subject to section 
439 of such Act (20 U.S.C. 1232b). The Secretary shall, 
notwithstanding section 437 of such Act (20 U.S.C. 1232) 
and section 553 of title 5, United States Code, establish 
such program rules as may be necessary to implement 
such grant program by notice in the Federal Register. 
(e) CONCURRENT FUNDING.—Funds made available 
under this section shall not be used to assist any commu-
nity college that receives funding for the construction, 
modernization, renovation, and repair of facilities under 
any other program under this Act.
160 
(f) REPORTS BY THE STATES.—Each State that re-
ceives a grant under this section shall, not later than Sep-
tember 30, 2012, and annually thereafter for each fiscal 
year in which the State expends funds received under this 
section, submit to the Secretary a report that includes— 
(1) a description the projects for which the 
grant funding was, or will be, used; 
(2) a list of the community colleges that have 
received, or will receive, assistance from the grant 
through a loan described in subsection (a)(1)(A), a 
capital campaign described in subsection (a)(1)(B), 
or a loan from a revolving loan fund described in 
subsection (a)(1)(C); and 
(3) a description of the amount and nature of 
the assistance provided to each such college. 
(g) REPORT BY THE SECRETARY.—The Secretary 
shall submit to the authorizing committees (as defined in 
section 103 of the Higher Education Act of 1965) an an-
nual report on the grants made under this section, includ-
ing the information described in subsection (f). 
(h) DEFINITIONS.— 
(1) COMMUNITY
COLLEGE.—As used in this 
section, the term ‘‘community college’’ means—
161 
(A) a junior or community college, as such 
term is defined in section 312(f) of the Higher 
Education Act of 1965 (20 U.S.C. 1085(f)); or 
(B) a four-year public institution of higher 
education (as defined in section 101 of the 
Higher Education Act of 1965) that awards a 
significant number of degrees and certificates 
that are not— 
(i) bachelor’s degrees (or an equiva-
lent); or 
(ii) master’s, professional, or other 
advanced degrees. 
(2) CHPS CRITERIA.—The term ‘‘CHPS Cri-
teria’’ means the green building rating program de-
veloped by the Collaborative for High Performance 
Schools. 
(3) ENERGY STAR.—The term ‘‘Energy Star’’ 
means the Energy Star program of the United 
States Department of Energy and the United States 
Environmental Protection Agency. 
(4) 
GREEN
GLOBES.—The 
term 
‘‘Green 
Globes’’ means the Green Building Initiative envi-
ronmental design and rating system referred to as 
Green Globes.
162 
(5) LEED GREEN BUILDING RATING SYSTEM.— 
The term ‘‘LEED Green Building Rating System’’ 
means the United States Green Building Council 
Leadership in Energy and Environmental Design 
green building rating standard referred to as the 
LEED Green Building Rating System. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
(7) STATE.—The term ‘‘State’’ has the mean-
ing given such term in section 103 of the Higher 
Education Act of 1965 (20 U.S.C. 1003). 
(i) AVAILABILITY OF FUNDS.—There are authorized 
to be appropriated, and there are appropriated, to carry 
out this section (in addition to any other amounts appro-
priated to carry out this section and out of any money 
in 
the 
Treasury 
not 
otherwise 
appropriated), 
$2,500,000,000 for fiscal year 2010, which shall remain 
available until expended. The authority to award grants 
under this section shall expire at the end of fiscal year 
2010. 
TITLE IV—EARLY LEARNING 
CHALLENGE FUND 
SEC. 401. PURPOSE. 
The purpose of this title is to provide grants on a 
competitive basis to States for the following:
163 
(1) To promote standards reform of State early 
learning programs serving children from birth 
through age 5 in order to support the healthy devel-
opment and improve the school readiness outcomes 
of young children. 
(2) To establish a high standard of quality in 
early learning programs that integrates appropriate 
early learning and development standards across 
early learning settings. 
(3) To fund and implement quality initiatives 
that improve the skills and effectiveness of early 
learning providers and the quality of existing early 
learning programs, in order to increase the number 
of disadvantaged children who participate in com-
prehensive and high-quality early learning programs. 
(4) To ensure that a greater number of dis-
advantaged children enter kindergarten with the cog-
nitive, social, emotional, and physical skills and abili-
ties needed to be successful in school. 
(5) To increase parents’ abilities to access com-
prehensive and high quality early learning programs 
across settings for their children. 
SEC. 402. PROGRAMS AUTHORIZED. 
(a) QUALITY PATHWAYS GRANTS.—The Secretary 
shall use funds made available to carry out this title for
164 
a fiscal year to award grants on a competitive basis to 
States in accordance with section 403. 
(b) DEVELOPMENT GRANTS.—The Secretary shall 
use funds made available to carry out this title for a fiscal 
year to award grants in accordance with section 404 on 
a competitive basis to States that demonstrate a commit-
ment to establishing a system of early learning that will 
include the components described in section 403(c)(3) but 
are not— 
(1) eligible to be awarded a grant under sub-
section (a); or 
(2) are not awarded such a grant after applica-
tion. 
(c) RESERVATIONS OF FEDERAL FUNDS.— 
(1) RESEARCH, EVALUATION, AND ADMINISTRA-
TION.—From the amount made available to carry 
out this title for a fiscal year, the Secretary— 
(A) shall reserve up to 2 percent jointly to 
administer this title with the Secretary of 
Health and Human Services; and 
(B) shall reserve up to 3 percent to carry 
out activities under section 405. 
(2) TRIBAL
SCHOOL
READINESS
PLANNING 
DEMONSTRATION.—After making the reservations 
under paragraph (1), the Secretary shall reserve
165 
0.25 percent for a competitive grant program for In-
dian tribes to develop and implement school readi-
ness plans that— 
(A) are coordinated with local educational 
agencies serving children who are members of 
the tribe; and 
(B) include American Indian and Alaska 
Native Head Start and Early Head Start pro-
grams, tribal child care programs, Indian 
Health Service programs, and other tribal pro-
grams serving children, including programs re-
ceiving funds under sections 611(h)(4) and 
643(b) of the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1411(h)(4) and 1443(b)). 
(3) QUALITY PATHWAYS GRANTS.— 
(A) IN GENERAL.—From the amount made 
available to carry out this title for a fiscal year 
and not reserved under paragraph (1) or (2), 
the Secretary shall reserve a percent (which 
shall be not greater than 65 percent for fiscal 
years 2010 through 2012 and not greater than 
85 percent for fiscal year 2013 and each suc-
ceeding fiscal year) determined under subpara-
graph (B) to carry out subsection (a).
166 
(B) DETERMINATION OF AMOUNT.—In de-
termining the amount to reserve under subpara-
graph (A), the Secretary, consistent with sec-
tion 403(e), shall take into account the fol-
lowing: 
(i) The total number of States with an 
approved application for a grant under this 
title for the year. 
(ii) The number of children under age 
5 from low-income families in each State 
with an approved application under section 
403 for the year. 
(C) REALLOCATION.—For fiscal year 2013 
and subsequent fiscal years, the Secretary may 
reallocate funds allocated for development 
grants under subsection (b) for the purpose of 
providing additional grants under subsection 
(a), if the Secretary determines that there is an 
insufficient number of applications that meet 
the requirements for a grant under subsection 
(b). 
(d) STATE APPLICATIONS.—In applying for a grant 
under this title, a State— 
(1) shall designate a State-level entity for ad-
ministration of the grant;
167 
(2) shall coordinate proposed activities with the 
State Advisory Council on Early Childhood Edu-
cation and Care (established pursuant to section 
642B(b)(1)(A) of the Head Start Act (42 U.S.C. 
9837b(b)(1)(A))) and shall incorporate plans and 
recommendations from such Council in the applica-
tion, where applicable; and 
(3) otherwise shall submit the application to the 
Secretary at such time, in such manner, and con-
taining such information as the Secretary may rea-
sonably require. 
(e) PRIORITY IN AWARDING GRANTS.—In awarding 
grants under this title, the Secretary shall give priority 
to States— 
(1) whose applications contain assurances that 
the State will use, in part, funds reserved under sec-
tion 658G of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858e) for activities 
described in section 403(f); and 
(2) that demonstrate efforts to build public-pri-
vate partnerships designed to accomplish the pur-
poses of this title. 
(f) MAINTENANCE OF EFFORT.— 
(1) IN GENERAL.—With respect to each period 
for which a State is awarded a grant under this
168 
title, the aggregate expenditures by the State and its 
political subdivisions on early learning programs and 
services shall be not less than the level of the ex-
penditures for such programs and services by the 
State and its political subdivisions for fiscal year 
2006. 
(2) STATE EXPENDITURES.—For purposes of 
paragraph (1), expenditures by the State on early 
learning programs and services shall include, at a 
minimum, the following: 
(A) State matching and maintenance of ef-
fort funds for the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858 et 
seq.). 
(B) State matching funds for the State 
Advisory Council on Early Childhood Education 
and Care (established pursuant to section 
642B(b)(1)(A) of the Head Start Act (42 
U.S.C. 9837b(b)(1)(A))). 
(C) State expenditures on public pre-kin-
dergarten, Head Start (including Early Head 
Start), and other State early learning programs 
and services dedicated to children (including 
State expenditures under part C of the Individ-
169 
uals with Disabilities Education Act (20 U.S.C. 
1431 et seq.)). 
(g) PROHIBITIONS
ON USE
OF FUNDS.—Funds 
under this title may not be used for any of the following: 
(1) Assessments that provide rewards or sanc-
tions for individual children or teachers. 
(2) A single assessment used as the primary or 
sole method for assessing program effectiveness. 
(3) Evaluating children other than for— 
(A) improving instruction or classroom en-
vironment; 
(B) targeting professional development; 
(C) determining the need for health, men-
tal health, disability, or family support services; 
(D) informing the quality improvement 
process at the State level; 
(E) program evaluation for the purposes of 
program improvement and parent information; 
or 
(F) research conducted as part of the na-
tional evaluation required by section 405(2). 
(h) FEDERAL ADMINISTRATION.— 
(1) IN GENERAL.—With respect to this title, 
the Secretary shall bear responsibility for obligating 
and disbursing funds and ensuring compliance with
170 
applicable laws and administrative requirements, 
subject to paragraph (2). 
(2) INTERAGENCY AGREEMENT.—The Secretary 
of Education and the Secretary of Health and 
Human Services shall jointly administer this title on 
such terms as such secretaries shall set forth in an 
interagency agreement. 
SEC. 403. QUALITY PATHWAYS GRANTS. 
(a) GRANT PERIOD.—Grants under section 402(a)— 
(1) may be awarded for a period not to exceed 
5 years; and 
(2) may be renewed, subject to approval by the 
Secretary, and based on the State’s progress in— 
(A) increasing the percentage of disadvan-
taged children in each age group (infants, tod-
dlers, and preschoolers) who participate in high- 
quality early learning programs; 
(B) increasing the number of high-quality 
early learning programs in low-income commu-
nities; 
(C) implementing an early learning system 
that includes the components described in sub-
section (c)(3); 
(D) incorporating the findings and rec-
ommendations reported by the commission es-
171 
tablished under section 405(1) into the State 
system of early learning; and 
(E) committing State resources for sup-
porting early learning programs and services. 
(b) MATCHING REQUIREMENT.— 
(1) IN GENERAL.—Subject to subsection (g), to 
be eligible to receive a grant under section 402(a), 
a State shall contribute to the activities assisted 
under the grant non-Federal matching funds in an 
amount equal to not less than the applicable percent 
of the amount of the grant. 
(2) APPLICABLE
PERCENT.—For purposes of 
paragraph (1), the applicable percent means— 
(A) 10 percent in the first fiscal year of 
the grant; 
(B) 10 percent in the second fiscal year of 
the grant; 
(C) 15 percent in the third fiscal year of 
the grant; and 
(D) 20 percent in the fourth fiscal year of 
the grant and subsequent fiscal years. 
(3) NON-FEDERAL FUNDS.—A State may use 
the following to satisfy the requirement of paragraph 
(1): 
(A) Cash.
172 
(B) In-kind contributions for the acquisi-
tion, construction, or improvement of early 
learning program facilities serving disadvan-
taged children. 
(C) Technical assistance related to sub-
paragraph (B). 
(4) PRIVATE
CONTRIBUTIONS.—Private con-
tributions made as part of public-private partner-
ships to increase the number of low-income children 
in high-quality early learning programs in a State 
may be used by the State to satisfy the requirement 
of paragraph (1). 
(5) FINANCIAL HARDSHIP WAIVER.—The Sec-
retary may waive or reduce the non-Federal share of 
a State that has submitted an application for a 
grant under section 402(a) if the State demonstrates 
a need for such waiver or reduction due to extreme 
financial hardship, as defined by the Secretary by 
regulation. 
(c) STATE APPLICATIONS.—In order to be considered 
for a grant under section 402(a), a State’s application 
under section 402(d) shall include the following: 
(1) A description of how the State will use the 
grant to implement quality initiatives to improve 
early learning programs serving disadvantaged chil-
173 
dren from birth to age 5 to lead to a greater per-
centage of such children participating in higher 
quality early learning programs. 
(2) A description of the goals and benchmarks 
the State will establish to lead to a greater percent-
age of disadvantaged children participating in higher 
quality early learning programs to improve school 
readiness outcomes, including an established baseline 
of the number of disadvantaged children in high- 
quality early learning programs. 
(3) A description of how the State will imple-
ment a governance structure and a system of early 
learning programs and services that includes the fol-
lowing components: 
(A) Not later than 12 months after receiv-
ing notice of an award of the grant, complete 
State early learning and development standards 
that include social and emotional, cognitive, and 
physical development domains, and approaches 
to learning that are developmentally appro-
priate (including culturally and linguistically 
appropriate) for all children. 
(B) A process to ensure that State early 
learning and development standards are inte-
grated into the instructional and programmatic
174 
practices of early learning programs and serv-
ices, including services provided to children 
under section 619 and part C of the Individuals 
with Disabilities Education Act (20 U.S.C. 
1419, 1431 et seq.). 
(C) A program rating system that builds 
on licensing requirements and other State regu-
latory standards, as appropriate, and that— 
(i) is designed to improve quality and 
effectiveness across different types of early 
learning settings; 
(ii) integrates evidence-based program 
quality standards that reflect standard lev-
els of quality and has progressively higher 
levels of program quality; 
(iii) integrates the State’s early learn-
ing and development standards for the 
purpose of improving instructional and 
programmatic practices; 
(iv) addresses quality and effective in-
clusion of children with disabilities or de-
velopmental delays across different types of 
early learning settings; 
(v) addresses staff qualifications and 
professional development;
175 
(vi) provides financial incentives and 
other supports to help programs meet and 
sustain higher levels of quality; 
(vii) includes mechanisms for evalu-
ating how programs are meeting those 
standards and progressively higher levels 
of quality; and 
(viii) includes a mechanism for public 
awareness and understanding of the pro-
gram rating system, including the rating 
levels of individual programs. 
(D) A system of program review and moni-
toring that is designed to rate early learning 
programs using the system described in sub-
paragraph (C) and to assess and improve pro-
grammatic practices, instructional practices, 
and classroom environment. 
(E) A process to support early learning 
programs integrating instructional and pro-
grammatic practices that— 
(i) include developmentally appro-
priate (including culturally and linguis-
tically appropriate), ongoing, classroom- 
based instructional assessments for each 
domain of child development and learning
176 
(including social and emotional, cognitive, 
and physical development domains and ap-
proaches to learning) to guide and improve 
instructional practice, professional develop-
ment of staff, and services; and 
(ii) are aligned with the curricula used 
in the early learning program and with the 
State early learning and development 
standards or the Head Start Child Out-
comes Framework (as described in the 
Head Start Act), as applicable. 
(F) Minimum preservice early childhood 
development and education training require-
ments for providers in early learning programs. 
(G) A comprehensive plan for supporting 
the professional preparation and the ongoing 
professional development of an effective, well- 
compensated early learning workforce, which 
plan includes training and education that is 
sustained, intensive, and classroom-focused and 
leads toward a credential or degree and is tied 
to improved compensation. 
(H) An outreach strategy to promote un-
derstanding by parents and families of—
177 
(i) how to support their child’s early 
development and learning; 
(ii) the State’s program rating sys-
tem, as described in subparagraph (C); 
and 
(iii) the rating of the early learning 
program in which their child is enrolled. 
(I) A coordinated system to facilitate 
screening, referral, and provision of services re-
lated to health, mental health, dental, develop-
mental delay and disability, and family support 
for children participating in early learning pro-
grams. 
(J) A process for evaluating school readi-
ness in children that reflects all of the major 
domains of development, and that is used to 
guide practice and improve early learning pro-
grams. 
(K) A coordinated data infrastructure that 
facilitates— 
(i) uniform data collection about the 
quality of early learning programs, essen-
tial information about the children and 
families that participate in such programs, 
and the qualifications and compensation of
178 
the early learning workforce in such pro-
grams; and 
(ii) alignment and interoperability be-
tween the data system for early learning 
programs for children and data systems for 
elementary and secondary education. 
(4) A description of how the funds provided 
under the grant will be targeted to prioritize increas-
ing the number and percentage of low-income chil-
dren in high-quality early learning programs, includ-
ing children— 
(A) in each age group (infants, toddlers, 
and preschoolers); 
(B) with developmental delays and disabil-
ities; 
(C) with limited English proficiency; and 
(D) living in rural areas. 
(5) An assurance that the grant will be used to 
improve the quality of early learning programs 
across a range of types of settings and providers of 
such programs. 
(6) A description of the steps the State will 
take to make progress toward including all center- 
based child care programs, family child care pro-
grams, State-funded prekindergarten, Head Start
179 
programs, and other early learning programs, such 
as those funded under title I of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6301 
et seq.) or receiving funds under section 619 or part 
C of the Individuals with Disabilities Education Act 
(20 U.S.C. 1419, 1431 et seq.) in the State program 
rating system described in paragraph (3)(C). 
(7) An assurance that the State, not later than 
18 months after receiving notice of an award of the 
grant, will conduct an analysis of the alignment of 
the State’s early learning and development stand-
ards with— 
(A) appropriate academic content stand-
ards for grades kindergarten through 3; and 
(B) elements of program quality standards 
for early learning programs. 
(8) An assurance that the grant will be used 
only to supplement, and not to supplant, Federal, 
State, and local funds otherwise available to support 
existing early learning programs and services. 
(9) A description of any disparity by age group 
(infants, toddlers, and preschoolers) of available 
high-quality early learning programs in low-income 
communities and the steps the State will take to de-
crease such disparity, if applicable.
180 
(10) A description of how the State early learn-
ing and development standards will address the 
needs of children with limited English proficiency, 
including by incorporating benchmarks related to 
English language development. 
(11) A description of how the State’s profes-
sional development plan will prepare the early learn-
ing workforce to support the early learning needs of 
children with limited English proficiency. 
(12) A description of how the State will im-
prove interagency collaboration and coordinate the 
purposes of this title with the activities funded 
under— 
(A) section 658G of the Child Care and 
Development Block Grant Act of 1990 (42 
U.S.C. 9858e); 
(B) section 619 and part C of the Individ-
uals with Disabilities Education Act (20 U.S.C. 
1419, 1431 et seq.); 
(C) title I of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6301 
et seq.); 
(D) State-funded pre-kindergarten pro-
grams (where applicable); 
(E) Head Start programs; and
181 
(F) other early childhood programs and 
services. 
(13) A description of how the State’s early 
learning policies, including child care policies, facili-
tate access to high-quality early learning programs 
for children from low-income families. 
(14) A description of how the State will imple-
ment a process for improving the quality of early 
learning services to better meet the needs of children 
who have experienced abuse or neglect, been exposed 
to violence, toxic stress, parental substance abuse, 
mental illness, or homelessness, or have had early 
behavioral and peer relationship problems, including 
addressing appropriate professional development, 
programmatic practices, classroom environment, and 
outreach and support to meet the needs of such chil-
dren. 
(15) A description of any disparity by geo-
graphic area (urban and rural) of available high- 
quality early learning programs for low-income chil-
dren and the steps the State will take to decrease 
such disparity, if applicable. 
(16) An assurance that the State will continue 
to participate in part C of the Individuals with Dis-
182 
abilities Education Act (20 U.S.C. 1431 et seq.) for 
the duration of the grant. 
(d) CRITERIA USED
IN AWARDING GRANTS.—In 
awarding grants under section 402(a), the Secretary shall 
evaluate the applications, and award grants under such 
section on a competitive basis, based on— 
(1) the quality of the application submitted pur-
suant to section 402(d); 
(2) the priority factors described in section 
402(e); 
(3) evidence of significant progress in estab-
lishing a system of early learning for children that 
includes the components described in subsection 
(c)(3); and 
(4) the State’s capacity to fully complete imple-
mentation of such a system. 
(e) CRITERION USED IN DETERMINING AMOUNT OF 
AWARD.—In determining the amount to award a State 
under section 402(a), the Secretary shall take into ac-
count— 
(1) the proportion of children under age 5 from 
low-income families in the State relative to such pro-
portion in other States; and
183 
(2) the State plan and capacity to implement 
the criteria described in paragraphs (3) and (4) of 
subsection (d). 
(f) STATE USES OF FUNDS.— 
(1) IN GENERAL.—A State receiving a grant 
under section 402(a) shall use the grant as follows: 
(A) Not less than 65 percent of the grant 
amount shall be used for two or more of the fol-
lowing activities to improve the quality of early 
learning programs serving disadvantaged chil-
dren: 
(i) Initiatives that improve the creden-
tials of early learning providers and are 
tied to increased compensation. 
(ii) Initiatives that help early learning 
programs meet and sustain higher pro-
gram quality standards, such as— 
(I) improving the ratio of early 
learning provider to children in early 
learning settings; 
(II) reducing group size; 
(III) improving the qualifications 
of early learning providers; and 
(IV) supporting effective edu-
cation and training for early learning
184 
providers (which may include estab-
lishing or supporting partnerships 
with institutions of higher education 
(as such term is defined in section 
101 of the Higher Education Act of 
1965 (20 U.S.C. 1001) to support 
such education and training). 
(iii) Implementing classroom observa-
tion assessments and data-driven decisions 
(which may include implementation of a 
research-based prevention and intervention 
framework designed to build social com-
petence and prevent challenging behaviors) 
tied to activities that improve instructional 
practices, programmatic practices, or class-
room environment and promote school 
readiness. 
(iv) Providing financial incentives to 
early learning programs— 
(I) for undertaking quality im-
provements that promote healthy de-
velopment and school readiness; and 
(II) maintaining quality improve-
ments that promote healthy develop-
ment and school readiness.
185 
(v) Integrating State early learning 
and development standards into instruc-
tional and programmatic practices in early 
learning programs. 
(vi) Providing high-quality, sustained, 
intensive, and classroom-focused profes-
sional development that improves the 
knowledge and skills of early learning pro-
viders, including professional development 
related to meeting the needs of diverse 
populations. 
(vii) Building the capacity of early 
learning programs and communities to pro-
mote the understanding of parents and 
families of the State’s early learning sys-
tem and the rating of the early learning 
program in which their child is enrolled 
and to encourage the active involvement 
and engagement of parents and families in 
the learning and development of their chil-
dren. 
(viii) Building the capacity of early 
learning programs and communities to fa-
cilitate screening, referral, and provision of 
services related to health, mental health,
186 
dental, developmental delay and disability, 
and family support for children partici-
pating in early learning programs. 
(ix) Other innovative activities, pro-
posed by the State and approved in ad-
vance by the Secretary that are— 
(I) based on successful practices; 
(II) designed to improve the 
quality of early learning programs and 
services; and 
(III) advance the system compo-
nents described in subsection (c)(3). 
(B) The remainder of the grant amount 
may be used for one or more of the following: 
(i) Implementation or enhancement of 
the State’s data system described in sub-
section (c)(3)(K), including interoperability 
across agencies serving children, and 
unique child and program identifiers. 
(ii) Enhancement of the State’s over-
sight system for early learning programs, 
including the implementation of a program 
rating system. 
(iii) The development and implemen-
tation of measures of school readiness of
187 
children that reflect all of the major do-
mains of child development and that in-
form the quality improvement process. 
(2) PRIORITY.—A State receiving a grant under 
section 402(a) shall use the grant so as to prioritize 
improving the quality of early learning programs 
serving children from low-income families. 
(g) SPECIAL RULE.— 
(1) IN GENERAL.—Beginning with the second 
fiscal year of a grant under section 402(a), a State 
with respect to which the Secretary certifies that the 
State has made sufficient progress in implementing 
the requirements of the grant may apply to the Sec-
retary to reserve up to 25 percent of the amount of 
the grant to expand access for children from low-in-
come families to the highest quality early learning 
programs that offer full-day services (or, if the State 
can demonstrate that it is already meeting the needs 
of such children in such manner, the State may 
apply to expand access for disadvantaged children in 
such manner and the State’s application may not be 
adversely treated due to such request), except that 
the State must agree to contribute for such purpose 
non-Federal matching funds in an amount equal to 
not less than 20 percent of the amount reserved
188 
under this subsection. One-half of such non-Federal 
matching funds may be provided by a private entity. 
(2) NON-FEDERAL FUNDS.—A State may use 
the following to satisfy the matching requirement of 
paragraph (1): 
(A) Cash. 
(B) In-kind contributions for the acquisi-
tion, construction, or improvement of early 
learning program facilities serving disadvan-
taged children. 
(C) Technical assistance related to sub-
paragraph (B). 
(3) FINANCIAL HARDSHIP WAIVER.—The Sec-
retary may waive or reduce the non-Federal share of 
a State under paragraph (1) if the State dem-
onstrates a need for such waiver or reduction due to 
extreme financial hardship, as defined by the Sec-
retary by regulation. 
(h) IMPROVEMENT PLAN.—If the Secretary deter-
mines that a State receiving a grant under section 402(a) 
is encountering barriers to reaching goals described in 
subsection (c)(2), the State shall develop a plan for im-
provement in consultation with, and subject to approval 
by, the Secretary.
189 
SEC. 404. DEVELOPMENT GRANTS. 
(a) GRANT PERIOD.—Grants under section 402(b) 
may be awarded for a period not to exceed 3 years, and 
may not be renewed. 
(b) STATE USES OF FUNDS.— 
(1) IN GENERAL.—A State receiving a grant 
under section 402(b) shall use the grant to under-
take activities that develop the early learning system 
components described in section 403(c)(3) and that 
will improve a State’s competitiveness for a grant 
described in section 402(a). 
(2) PRIORITY.—A State receiving a grant under 
section 402(b) shall use the grant so as to prioritize 
improving the quality of early learning programs 
serving low-income children. 
(c) MATCHING REQUIREMENT.— 
(1) IN GENERAL.—To be eligible to receive a 
grant under section 402(b), a State shall contribute 
to the activities assisted under the grant non-Fed-
eral matching funds in an amount equal to not less 
than the applicable percent of the amount of the 
grant. 
(2) APPLICABLE
PERCENT.—For purposes of 
paragraph (1), the applicable percent means— 
(A) 20 percent in the first fiscal year of 
the grant;
190 
(B) 25 percent in the second fiscal year of 
the grant; and 
(C) 30 percent in the third fiscal year of 
the grant. 
(3) NON-FEDERAL FUNDS.—A State may use 
the following to satisfy the requirement of paragraph 
(1): 
(A) Cash. 
(B) In-kind contributions for the acquisi-
tion, construction, or improvement of early 
learning program facilities serving disadvan-
taged children. 
(C) Technical assistance related to sub-
paragraph (B). 
(4) PRIVATE
CONTRIBUTIONS.—Private con-
tributions made as part of public-private partner-
ships to increase the number of low-income children 
in high-quality early learning programs in a State 
may be used by the State to satisfy the requirement 
of paragraph (1). 
(5) FINANCIAL HARDSHIP WAIVER.—The Sec-
retary may waive or reduce the non-Federal share of 
a State that has submitted an application for a 
grant under section 402(b) if the State demonstrates 
a need for such waiver or reduction due to extreme
191 
financial hardship, as defined by the Secretary by 
regulation. 
SEC. 405. RESEARCH AND EVALUATION. 
From funds reserved under section 402(c)(1), the 
Secretary of Education and the Secretary of Health and 
Human Services, acting jointly, shall carry out the fol-
lowing activities: 
(1) Establishing a national commission whose 
duties shall include— 
(A) reviewing the status of State and Fed-
eral early learning program quality standards 
and early learning and development standards; 
(B) recommending benchmarks for pro-
gram quality standards and early learning and 
development standards, including taking into 
consideration the school readiness needs of chil-
dren with limited English proficiency; and 
(C) reporting to the Secretaries of Edu-
cation and Health and Human Services not 
later than 2 years after the date of the enact-
ment of this Act on the commission’s findings 
and recommendations. 
(2) Conducting a national evaluation of the 
grants made under this title through the Institute of 
Education Science in collaboration with the appro-
192 
priate research divisions within the Department of 
Health and Human Services. 
(3) Supporting a research collaborative among 
the Institute of Education Sciences, the National In-
stitute of Child Health and Human Development, 
the Office of Planning, Research, and Evaluation 
within the Administration for Children and Families 
in the Department of Health and Human Services, 
and, as appropriate, other Federal entities to sup-
port research on early learning that can inform im-
proved State and other standards and licensing re-
quirements and improved child outcomes, which col-
laborative shall— 
(A) biennially prepare and publish for pub-
lic comment a detailed research plan; 
(B) support early learning research activi-
ties that may include— 
(i) examining the characteristics of 
early learning programs that produce posi-
tive developmental outcomes for children; 
(ii) examining the effects of program 
quality standards on child outcomes; 
(iii) examining the relationships be-
tween specific interventions and types of 
child and family outcomes;
193 
(iv) examining the effectiveness of 
early learning provider training in raising 
program quality and improving child out-
comes; 
(v) examining the effectiveness of pro-
fessional development strategies in raising 
program quality and improving child out-
comes; 
(vi) examining how to improve the 
school readiness outcomes of children with 
limited English proficiency, special needs, 
and homeless children, including evaluation 
of professional development programs for 
working with such children; and 
(vii) supporting the development of 
valid and reliable assessments of young 
children and program quality, including in 
domains 
including 
language, 
literacy, 
mathematics, science, social and emotional 
development, and approaches to learning, 
with particular attention to development of 
assessments of domains for which there 
are few appropriate assessments, that 
are—
194 
(I) developmentally, linguistically, 
and culturally appropriate for the 
population served, including children 
with disabilities and children with lim-
ited English proficiency; 
(II) consistent with relevant, na-
tionally recognized professional and 
technical standards related to the as-
sessment of young children; 
(III) consistent with the guide-
lines on assessment for improved 
practice and for accountability in the 
National Research Council Committee 
on Developmental Outcomes and As-
sessments for Young Children; and 
(C) disseminate relevant research findings 
and best practices. 
(4) Not later than 18 months after the date of 
the enactment of this Act, conducting a review of 
the statewide strategic reports developed by the 
State Advisory Councils on Early Care and Edu-
cation 
(established 
pursuant 
to 
section 
642B(b)(1)(A) of the Head Start Act (42 U.S.C. 
9837b(b)(1)(A))) and other relevant information (in-
cluding information reported by States under section
195 
406(b)(9)) to evaluate barriers to increasing access 
to high-quality early learning programs for low-in-
come children, reporting on the findings of such re-
view, and disseminating relevant findings and best 
practices. 
SEC. 406. REPORTING REQUIREMENTS. 
(a) REPORTS TO CONGRESS.—For each year in which 
funding is provided under this title, the Secretary shall 
submit an annual report to the Committee on Education 
and Labor of the House of Representatives and the Com-
mittee on Health, Education, Labor and Pensions of the 
Senate on the activities carried out under this title, includ-
ing, at a minimum, information on the following: 
(1) The activities undertaken by States to in-
crease the availability of high-quality early learning 
programs. 
(2) The number of children in high-quality 
early learning programs, and the change from the 
prior year, disaggregated by State, age, and race. 
(3) The number of early learning providers en-
rolled, with assistance from funds under this title, in 
a program to obtain a credential or degree in early 
childhood education and the settings in which such 
providers work.
198 
early learning setting and the type of credential or 
degree. 
(8) In the case of a State receiving a grant 
under section 402(a), the percentage of children re-
ceiving assistance under the Child Care and Devel-
opment Block Grant Act of 1990 (42 U.S.C. 9858 
et seq.) who participate in the highest quality early 
learning programs, disaggregated by program set-
ting and child age. 
(9) Barriers to expanding access to high-quality 
early learning programs for disadvantaged children. 
SEC. 407. CONSTRUCTION. 
Nothing in this title— 
(1) shall be construed to require a child to par-
ticipate in an early learning program; or 
(2) shall be used to deny entry to kindergarten 
for any individual if the individual is legally eligible, 
as defined by State or local law. 
SEC. 408. DEFINITIONS. 
For purposes of this title: 
(1) CHILD.—The term ‘‘child’’ refers to an in-
dividual from birth through the day the individual 
enters kindergarten. 
(2) DISADVANTAGED.—The term ‘‘disadvan-
taged’’, when used with respect to a child, means a
199 
child whose family income is described in section 
658P(4)(B) of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858n(4)(B)). 
(3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given such term in section 637 of 
the Head Start Act (42 U.S.C. 9832). 
(4) LIMITED ENGLISH PROFICIENT.—The term 
‘‘limited English proficient’’ has the meaning given 
such term in section 637 of the Head Start Act (42 
U.S.C. 9832). 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
(6) STATE.—The term ‘‘State’’ has the mean-
ing given such term in section 9101 of the Elemen-
tary and Secondary Education Act of 1965 (20 
U.S.C. 7801). 
SEC. 409. AVAILABILITY OF FUNDS. 
There are authorized to be appropriated, and there 
are appropriated, to carry out this title (in addition to any 
other amounts appropriated to carry out this title and out 
of any money in the Treasury not otherwise appropriated) 
$1,000,000,000 for each of fiscal years 2010 through 
2017. The authority to award grants under this title shall 
expire at the end of fiscal year 2017.
200 
TITLE V—AMERICAN 
GRADUATION INITIATIVE 
SEC. 501. AUTHORIZATION AND APPROPRIATION. 
(a) AUTHORIZATION
AND APPROPRIATION.—There 
are authorized to be appropriated, and there are appro-
priated, to carry out this title (in addition to any other 
amounts appropriated to carry out this title and out of 
any money in the Treasury not otherwise appropriated), 
$730,000,000 for each of the fiscal years 2010 through 
2013, and $680,000,000 for each of the fiscal years 2014 
through 2019. The authority to award grants under this 
title shall expire at the end of fiscal year 2019. 
(b) ALLOCATIONS.—Of the amount appropriated 
under subsection (a)— 
(1) $630,000,000 shall be made available for 
each of the fiscal years 2010 through 2013 to carry 
out section 503; 
(2) $630,000,000 shall be made available for 
each of the fiscal years 2014 through 2019 to carry 
out section 504; 
(3) $50,000,000 shall be made available for 
each of the fiscal years 2010 through 2019 to carry 
out subsection (a) of section 505; and
201 
(4) $50,000,000 shall be made available for 
each of the fiscal years 2010 through 2013 to carry 
out subsections (b) and (c) of section 505. 
(c) RESPONSIBILITY.— 
(1) IN GENERAL.—With respect to sections 503 
and 504, the Secretary of Education shall bear the 
responsibility for obligating and disbursing funds 
under such sections and ensuring compliance with 
applicable law and administrative requirements, sub-
ject to paragraph (2). 
(2) INTERAGENCY AGREEMENT.—The Secretary 
of Education and the Secretary of Labor shall joint-
ly administer sections 503 and 504 on such terms 
as such Secretaries shall set forth in an interagency 
agreement. 
SEC. 502. DEFINITIONS; GRANT PRIORITY. 
In this title: 
(1) AREA CAREER AND TECHNICAL EDUCATION 
SCHOOL.—The term ‘‘area career and technical edu-
cation school’’ has the meaning given such term in 
section 3 of the Carl D. Perkins Career and Tech-
nical Education Act of 2006 (20 U.S.C. 2302). 
(2) COMMUNITY COLLEGE.—The term ‘‘commu-
nity college’’ means a public institution of higher 
education at which the highest degree that is pre-
202 
dominantly awarded to students is an associate’s de-
gree. 
(3) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a community college or community col-
lege district that has at least one articulation 
agreement with a four-year institution of higher 
education; 
(B) an area career and technical education 
school that has at least one articulation agree-
ment with an institution of higher education; 
(C) a public four-year institution of higher 
education that— 
(i) offers two-year degrees; 
(ii) will use funds provided under this 
section for activities at the certificate and 
associate degree levels; and 
(iii) is not reasonably close, as deter-
mined by the Secretary, to a community 
college; 
(D) a Tribal College or University; 
(E) a public four-year institution of higher 
education that is in partnership with an eligible 
entity described in subparagraph (A), (B), (C), 
or (D);
203 
(F) a State that— 
(i) is in compliance with section 137 
of the Higher Education Act of 1965 (20 
U.S.C. 1015f); 
(ii) has established and implemented a 
comprehensive articulation agreement be-
tween or among public institutions of high-
er education in the State that includes out-
lining the acceptability of community col-
lege courses in transfer for credit at public 
four-year institutions in the State; and 
(iii) is in partnership with an eligible 
entity described in subparagraph (A), (B), 
(C), (D), or (E); 
(G) a consortium of at least 2 entities de-
scribed in subparagraphs (A) through (F). 
(H) at the discretion of the Secretary, a 
private, not-for-profit, two-year institution of 
higher education in Puerto Rico, the District of 
Columbia, Guam, the United States Virgin Is-
lands, American Samoa, the Commonwealth of 
the Northern Mariana Islands, the Republic of 
the Marshall Islands, the Federated States of 
Micronesia, or the Republic of Palau.
204 
(4) INDUSTRY OR SECTOR PARTNERSHIP.—The 
term ‘‘industry or sector partnership’’ has the mean-
ing given such term in section 782(f) of the Higher 
Education Act of 1965. 
(5) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the 
meaning given such term in section 101 of the High-
er Education Act of 1965 (20 U.S.C. 1001). 
(6) PHILANTHROPIC ORGANIZATION.—The term 
‘‘philanthropic organization’’ has the meaning given 
such term in section 781(i) of the Higher Education 
Act of 1965 (20 U.S.C. 1141(i)). 
(7) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
(8) STATE.—The term ‘‘State’’ has the mean-
ing given such term in section 103 of the Higher 
Education Act of 1965 (20 U.S.C. 1003). 
(9) STATE
PUBLIC
EMPLOYMENT
SERVICE.— 
The term ‘‘State public employment service’’ refers 
to a State public employment service established 
under the Wagner-Peyser Act (29 U.S.C. 49 et 
seq.). 
(10) STATE WORKFORCE INVESTMENT BOARD; 
LOCAL
WORKFORCE
INVESTMENT
BOARD.—The 
terms ‘‘State workforce investment board’’ and
205 
‘‘local workforce investment board’’ refer to a State 
workforce investment board established under sec-
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)). 
(12) TRIBAL COLLEGE OR UNIVERSITY.—The 
term ‘‘Tribal College or University’’ has the meaning 
given such term in section 316 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1059c). 
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
206 
subparagraphs (A) through (E) 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 
(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
207 
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 spe-
cific activities that are being supported by other 
Federal grant 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 
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—
208 
(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; 
(C) labor organizations that provide tech-
nical expertise for occupationally specific edu-
cation necessary for an industry-recognized cre-
dential leading to a skilled occupation in a high- 
demand industry; 
(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; 
(3) are focused on serving low-income, non-tra-
ditional students (as defined in section 803(j) of the
210 
sources, local resources, contributions from pri-
vate organizations, or a combination thereof. 
(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. 
(4) EXCEPTION.—This subsection shall not 
apply to Tribal Colleges and Universities. 
(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—
211 
(1) the goals of such programs, services, and 
policies; 
(2) how the eligible entity will allocate grant 
funds for such programs, services, and policies; 
(3) how such programs, services, and policies, 
and the resources of the eligible entity, will enable 
the eligible entity to meet the benchmarks developed 
pursuant to subsection (g), and how the eligible enti-
ty will track and report the entity’s progress in 
reaching such benchmarks; 
(4) how the eligible entity will use such pro-
grams, services, and policies to establish quantifiable 
targets for improving graduation rates and employ-
ment-related outcomes; 
(5) how the eligible entity will serve high-need 
populations through such programs, services, and 
policies; 
(6) how the eligible entity will partner with in-
dustry or sector partnerships in the State, the State 
public employment service, and State or local work-
force investment boards in carrying out such pro-
grams, services, and policies; 
(7) an assurance that the eligible entity will 
share information with the Learning and Earning
212 
Research Center established under section 505(b), 
once such Center is established; 
(8) an assurance that the eligible entity will 
participate in the evaluation of such programs, serv-
ices, and policies under subsection (i); 
(9) the potential for such programs, services, 
and policies to be replicated at other institutions of 
higher education; and 
(10) how the eligible entity will incorporate and 
support faculty and staff of the institution in meet-
ing the goals of such programs, services, and poli-
cies. 
(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 (E) 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
213 
(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 
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; 
(C) transitional job support, supportive 
services, or assistance in connecting students 
with community resources; and 
(D) library services, including information 
literacy activities, to— 
(i) help increase postsecondary degree, 
certificate, and industry-recognized creden-
tial completion rates, particularly with re-
214 
spect to groups underrepresented in higher 
education; and 
(ii) assist individuals with obtaining 
and retaining employment. 
(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, information literacy, 
and occupational training that lead to industry- 
recognized credentials; 
(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. 
(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
215 
Workforce Investment Act of 1998 (29 U.S.C. 
9201 et seq.)); and 
(B) eligible entities described in subpara-
graphs (A) through (E) 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 
(E) of section 502(a)(3); and 
(B) increase the provision of training for 
students, including students who are veterans 
or members of the National Guard or Reserves, 
to enter skilled occupations in high-demand in-
dustries. 
(7) Creating, in a timely and efficient manner, 
degree, certificate, and industry-recognized creden-
tial programs at eligible entities described in sub-
paragraphs (A) through (E) of section 502(a)(3) 
that— 
(A) reflect and respond to regional labor 
market developments and trends;
217 
including occupations within the Department of Vet-
erans Affairs health care system. 
(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 the institution’s use of funds provided under 
this section), 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. 
(C) Establishing articulation agreements 
between two-year and four-year public institu-
tions of higher education within a State.
218 
(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, including education credits earned 
while serving in the Armed Forces, be-
tween institutions of higher education, 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.
219 
(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—
220 
(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
221 
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 
(f) 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;
222 
(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 (h) by the end of the third year of the grant period, 
non further grant funds shall be made available to the en-
tity after the date of such determination. 
(d) PRIORITY.—In awarding grants under this sec-
tion, the Secretary shall give priority to applications fo-
cused on serving low-income, nontraditional students (as 
defined in section 803(j) of the Higher Education Act of 
1965 (20 U.S.C. 1161c(j))), students who are dislocated 
workers, or students who are veterans, who do not have 
a bachelor’s degree. 
(e) FEDERAL AND NON-FEDERAL SHARE; SUPPLE-
MENT, NOT SUPPLANT.—