1342 
shall be provided under paragraphs (3) and (4) of sub-
section (a) for the defined benefit plan component and for 
the composite plan component of the multiemployer 
plan.’’. 
(3) TREATMENT FOR PURPOSES OF PENSION 
BENEFIT STATEMENTS.—Section 105(a) of the Em-
ployee Retirement Income Security Act of 1974 (29 
U.S.C. 1025(a)) is amended by adding at the end 
the following: 
‘‘(4) COMPOSITE PLANS.—For purposes of this 
subsection, a composite plan shall be treated as a 
defined benefit plan to the extent prescribed by the 
Secretary in regulations that take into account the 
differences between a composite plan and a defined 
benefit plan that is a multiemployer plan.’’. 
(b) AMENDMENTS
TO
THE INTERNAL REVENUE 
CODE OF 1986.—Section 6058 of the Internal Revenue 
Code of 1986 is amended by redesignating subsection (f) 
as subsection (g) and by inserting after subsection (e) the 
following: 
‘‘(f) COMPOSITE PLANS.—A multiemployer plan that 
incorporates the features of a composite plan as provided 
in section 437(b) shall be treated as a single plan for pur-
poses of the return required by this section, except that 
separate financial statements shall be provided for the de-
1343 
fined benefit plan component and for the composite plan 
component of the multiemployer plan.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after the 
date of the enactment of this Act. 
SEC. 140004. TREATMENT OF COMPOSITE PLANS UNDER 
TITLE IV. 
(a) DEFINITION.—Section 4001(a) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1301(a)) is amended by striking the period at the end of 
paragraph (21) and inserting a semicolon and by adding 
at the end the following: 
‘‘(22) COMPOSITE PLAN.—The term ‘composite 
plan’ has the meaning set forth in section 801.’’. 
(b) COMPOSITE PLANS DISREGARDED FOR CALCU-
LATING PREMIUMS.—Section 4006(a) of such Act (29 
U.S.C. 1306(a)) is amended by adding at the end the fol-
lowing: 
‘‘(9) The composite plan component of a multi-
employer plan shall be disregarded in determining 
the premiums due under this section from the multi-
employer plan.’’. 
(c) COMPOSITE
PLANS
NOT
COVERED.—Section 
4021(b)(1) of such Act (29 U.S.C. 1321(b)(1)) is amend-
ed by striking ‘‘Act’’ and inserting ‘‘Act, or a composite
1344 
plan, as defined in paragraph (43) of section 3 of this 
Act’’. 
(d) NO WITHDRAWAL LIABILITY.—Section 4201 of 
such Act (29 U.S.C. 1381) is amended by adding at the 
end the following: 
‘‘(c) Contributions by an employer to the composite 
plan component of a multiemployer plan shall not be taken 
into account for any purpose under this title.’’. 
(e) NO
WITHDRAWAL
LIABILITY
FOR
CERTAIN 
PLANS.—Section 4201 of such Act (29 U.S.C. 1381) is 
further amended by adding at the end the following: 
‘‘(d) Contributions by an employer to a multiem-
ployer plan described in the except clause of section 3(35) 
of this Act pursuant to a collective bargaining agreement 
that specifically designates that such contributions shall 
be allocated to the separate defined contribution accounts 
of participants under the plan shall not be taken into ac-
count with respect to the defined benefit portion of the 
plan for any purpose under this title (including the deter-
mination of the employer’s highest contribution rate under 
section 4219), even if, under the terms of the plan, partici-
pants have the option to transfer assets in their separate 
defined contribution accounts to the defined benefit por-
tion of the plan in return for service credit under the de-
1345 
fined benefit portion, at rates established by the plan 
sponsor. 
‘‘(e) A legacy plan created under section 805 shall 
be deemed to have no unfunded vested benefits for pur-
poses of this part, for each plan year following a period 
of 5 consecutive plan years for which— 
‘‘(1) the plan was fully funded within the mean-
ing of section 805 for at least 3 of the plan years 
during that period, ending with a plan year for 
which the plan is fully funded; 
‘‘(2) the plan had no unfunded vested benefits 
for at least 3 of the plan years during that period, 
ending with a plan year for which the plan is fully 
funded; and 
‘‘(3) the plan is projected to be fully funded 
and to have no unfunded vested benefits for the fol-
lowing four plan years.’’. 
(f) NO WITHDRAWAL LIABILITY FOR EMPLOYERS 
CONTRIBUTING TO CERTAIN FULLY FUNDED LEGACY 
PLANS.—Section 4211 of such Act (29 U.S.C. 1382) is 
amended by adding at the end the following: 
‘‘(g) No amount of unfunded vested benefits shall be 
allocated to an employer that has an obligation to con-
tribute to a legacy plan described in subsection (e) of sec-
1346 
tion 4201 for each plan year for which such subsection 
applies.’’. 
(g) NO
OBLIGATION
TO
CONTRIBUTE.—Section 
4212 of such Act (29 U.S.C. 1392) is amended by adding 
at the end the following: 
‘‘(d) NO OBLIGATION TO CONTRIBUTE.—An em-
ployer shall not be treated as having an obligation to con-
tribute to a multiemployer defined benefit plan within the 
meaning of subsection (a) solely because— 
‘‘(1) in the case of a multiemployer plan that 
includes a composite plan component, the employer 
has an obligation to contribute to the composite plan 
component of the plan; 
‘‘(2) the employer has an obligation to con-
tribute to a composite plan that is maintained pur-
suant to one or more collective bargaining agree-
ments under which the multiemployer defined ben-
efit plan is or previously was maintained; or 
‘‘(3) the employer contributes or has contrib-
uted under section 805(d) to a legacy plan associ-
ated with a composite plan pursuant to a collective 
bargaining agreement but employees of that em-
ployer were not eligible to accrue benefits under the 
legacy plan with respect to service with that em-
ployer.’’.
1347 
(h) NO INFERENCE.—Nothing in the amendment 
made by subsection (e) shall be construed to create an in-
ference with respect to the treatment under title IV of the 
Employee Retirement Income Security Act of 1974, as in 
effect before such amendment, of contributions by an em-
ployer to a multiemployer plan described in the except 
clause of section 3(35) of such Act that are made before 
the effective date of subsection (e) specified in subsection 
(h)(2). 
(i) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in sub-
paragraph (2), the amendments made by this section 
shall apply to plan years beginning after the date of 
the enactment of this Act. 
(2) SPECIAL RULE FOR SECTION 414(k) MULTI-
EMPLOYER PLANS.—The amendment made by sub-
section (e) shall apply only to required contributions 
payable for plan years beginning after the date of 
the enactment of this Act. 
SEC. 140005. CONFORMING CHANGES. 
(a) DEFINITIONS.—Section 3 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1002) 
is amended—
1348 
(1) in paragraph (35), by inserting ‘‘or a com-
posite plan’’ after ‘‘other than an individual account 
plan’’; and 
(2) by adding at the end the following: 
‘‘(43) The term ‘composite plan’ has the mean-
ing given the term in section 801(a).’’. 
(b) SPECIAL FUNDING RULE FOR CERTAIN LEGACY 
PLANS.— 
(1) AMENDMENT TO EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.—Section 304(b) of 
the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1084(b)) is amended by adding at 
the end the following: 
‘‘(9) SPECIAL
FUNDING
RULE
FOR
CERTAIN 
LEGACY PLANS.—In the case of a multiemployer de-
fined benefit plan that has adopted an amendment 
under section 801(b), in accordance with which no 
further benefits shall accrue under the multiem-
ployer defined benefit plan, the plan sponsor may 
combine the outstanding balance of all charge and 
credit bases and amortize that combined base in 
level annual installments (until fully amortized) over 
a period of 25 plan years beginning with the plan 
year following the date all benefit accruals ceased.’’.
1349 
(2) AMENDMENT TO INTERNAL REVENUE CODE 
OF 1986.—Section 431(b) of the Internal Revenue 
Code of 1986 is amended by adding at the end the 
following: 
‘‘(9) SPECIAL
FUNDING
RULE
FOR
CERTAIN 
LEGACY PLANS.—In the case of a multiemployer de-
fined benefit plan that has adopted an amendment 
under section 437(b), in accordance with which no 
further benefits shall accrue under the multiem-
ployer defined benefit plan, the plan sponsor may 
combine the outstanding balance of all charge and 
credit bases and amortize that combined base in 
level annual installments (until fully amortized) over 
a period of 25 plan years beginning with the plan 
year following the date on which all benefit accruals 
ceased.’’. 
(c) BENEFITS AFTER MERGER, CONSOLIDATION, OR 
TRANSFER OF ASSETS.— 
(1) AMENDMENT TO EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.—Section 208 of the 
Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1058) is amended— 
(A) by striking so much of the first sen-
tence as precedes ‘‘may not merge’’ and insert-
ing the following:
1350 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a pension plan may not merge, and’’; and 
(B) by striking the second sentence and 
adding at the end the following: 
‘‘(2) SPECIAL REQUIREMENTS FOR MULTIEM-
PLOYER PLANS.—Paragraph (1) shall not apply to 
any transaction to the extent that participants either 
before or after the transaction are covered under a 
multiemployer plan to which title IV of this Act ap-
plies or a composite plan.’’. 
(2) AMENDMENTS
TO
INTERNAL
REVENUE 
CODE OF 1986.— 
(A) QUALIFICATION REQUIREMENT.—Sec-
tion 401(a)(12) of the Internal Revenue Code 
of 1986 is amended— 
(i) by striking ‘‘(12) A trust’’ and in-
serting the following: 
‘‘(12) BENEFITS AFTER MERGER, CONSOLIDA-
TION, OR TRANSFER OF ASSETS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a trust’’; 
(ii) by striking the second sentence; 
and 
(iii) by adding at the end the fol-
lowing:
1351 
‘‘(B) SPECIAL REQUIREMENTS FOR MULTI-
EMPLOYER
PLANS.—Subparagraph (A) shall 
not apply to any multiemployer plan with re-
spect to any transaction to the extent that par-
ticipants either before or after the transaction 
are covered under a multiemployer plan to 
which title IV of the Employee Retirement In-
come Security Act of 1974 applies or a com-
posite plan.’’. 
(B) ADDITIONAL QUALIFICATION REQUIRE-
MENT.—Paragraph (1) of section 414(l) of such 
Code is amended— 
(i) by striking ‘‘(1) IN GENERAL’’ and 
all that follows through ‘‘shall not con-
stitute’’ and inserting the following: 
‘‘(1) BENEFIT
PROTECTIONS: MERGER, CON-
SOLIDATION, TRANSFER.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a trust which forms a part 
of a plan shall not constitute’’; and 
(ii) by striking the second sentence; 
and 
(iii) by adding at the end the fol-
lowing:
1352 
‘‘(B) SPECIAL REQUIREMENTS FOR MULTI-
EMPLOYER PLANS.—Subparagraph (A) does not 
apply to any multiemployer plan with respect to 
any transaction to the extent that participants 
either before or after the transaction are cov-
ered under a multiemployer plan to which title 
IV of the Employee Retirement Income Secu-
rity Act of 1974 applies or a composite plan.’’. 
(d) REQUIREMENTS FOR STATUS AS A QUALIFIED 
PLAN.— 
(1) REQUIREMENT THAT ACTUARIAL ASSUMP-
TIONS BE SPECIFIED.—Section 401(a)(25) of the In-
ternal Revenue Code of 1986 is amended by insert-
ing ‘‘(in the case of a composite plan, benefits objec-
tively calculated pursuant to a formula)’’ after ‘‘defi-
nitely determinable benefits’’. 
(2) MISSING
PARTICIPANTS
IN
TERMINATING 
COMPOSITE PLAN.—Section 401(a)(34) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘, 
a trust’’ and inserting ‘‘or a composite plan, a 
trust’’. 
(e) DEDUCTION FOR CONTRIBUTIONS TO A QUALI-
FIED PLAN.—Section 404(a)(1) of the Internal Revenue 
Code of 1986 is amended by redesignating subparagraph
1353 
(E) as subparagraph (F) and by inserting after subpara-
graph (D) the following: 
‘‘(E) COMPOSITE PLANS.— 
‘‘(i) IN GENERAL.—In the case of a 
composite plan, subparagraph (D) shall 
not apply and the maximum amount de-
ductible for a plan year shall be the excess 
(if any) of— 
‘‘(I) 160 percent of the greater 
of— 
‘‘(aa) the current liability of 
the plan determined in accord-
ance with the principles of sec-
tion 431(c)(6)(D), or 
‘‘(bb) the present value of 
plan liabilities as determined 
under section 438, over 
‘‘(II) the fair market value of the 
plan’s assets, projected to the end of 
the plan year. 
‘‘(ii) SPECIAL
RULES
FOR
PREDE-
CESSOR
MULTIEMPLOYER
PLAN
TO
COM-
POSITE PLAN.— 
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II), if an em-
1354 
ployer contributes to a composite plan 
with respect to its employees, con-
tributions by that employer to a mul-
tiemployer defined benefit plan with 
respect to some or all of the same 
group of employees shall be deductible 
under sections 162 and this section, 
subject to the limits in subparagraph 
(D). 
‘‘(II) 
TRANSITION
CONTRIBU-
TION.—The full amount of a contribu-
tion to satisfy the transition contribu-
tion requirement (as defined in sec-
tion 440A(d)) and allocated to the 
legacy defined benefit plan for the 
plan year shall be deductible for the 
employer’s taxable year ending with or 
within the plan year.’’. 
(f) MINIMUM VESTING STANDARDS.— 
(1) YEARS
OF
SERVICE
UNDER
COMPOSITE 
PLANS.— 
(A) EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974.—Section 203 of the Em-
ployee Retirement Income Security Act of 1974
1355 
(29 U.S.C. 1053) is amended by inserting after 
subsection (f) the following: 
‘‘(g) SPECIAL RULES FOR COMPUTING YEARS OF 
SERVICE UNDER COMPOSITE PLANS.— 
‘‘(1) IN GENERAL.—In determining a qualified 
employee’s years of service under a composite plan 
for purposes of this section, the employee’s years of 
service under a legacy plan shall be treated as years 
of service earned under the composite plan. For pur-
poses of such determination, a composite plan shall 
not be treated as a defined benefit plan pursuant to 
section 801(d). 
‘‘(2) QUALIFIED EMPLOYEE.—For purposes of 
this subsection, an employee is a qualified employee 
if the employee first completes an hour of service 
under the composite plan (determined without re-
gard to the provisions of this subsection) within the 
12-month period immediately preceding or the 24- 
month period immediately following the date the em-
ployee ceased to accrue benefits under the legacy 
plan. 
‘‘(3) CERTIFICATION OF YEARS OF SERVICE.— 
For purposes of paragraph (1), the plan sponsor of 
the composite plan shall rely on a written certifi-
cation by the plan sponsor of the legacy plan of the
1357 
ployee ceased to accrue benefits under the legacy 
plan. 
‘‘(3) CERTIFICATION OF YEARS OF SERVICE.— 
For purposes of paragraph (1), the plan sponsor of 
the legacy plan shall rely on a written certification 
by the plan sponsor of the composite plan of the 
years of service the qualified employee completed 
under the composite plan after the employee satisfies 
the requirements of paragraph (2), disregarding any 
years of service that has been forfeited under the 
rules of the composite plan.’’. 
(B) INTERNAL REVENUE CODE OF 1986.— 
Section 411(a) of the Internal Revenue Code of 
1986 is amended by adding at the end the fol-
lowing: 
‘‘(14) SPECIAL
RULES
FOR
DETERMINING 
YEARS OF SERVICE UNDER COMPOSITE PLANS.— 
‘‘(A) IN
GENERAL.—In determining a 
qualified employee’s years of service under a 
composite plan for purposes of this subsection, 
the employee’s years of service under a legacy 
plan shall be treated as years of service earned 
under the composite plan. For purposes of such 
determination, a composite plan shall not be
1358 
treated as a defined benefit plan pursuant to 
section 437(d). 
‘‘(B) QUALIFIED
EMPLOYEE.—For pur-
poses of this paragraph, an employee is a quali-
fied employee if the employee first completes an 
hour of service under the composite plan (deter-
mined without regard to the provisions of this 
paragraph) within the 12-month period imme-
diately preceding or the 24-month period imme-
diately following the date the employee ceased 
to accrue benefits under the legacy plan. 
‘‘(C) CERTIFICATION OF YEARS OF SERV-
ICE.—For purposes of subparagraph (A), the 
plan sponsor of the composite plan shall rely on 
a written certification by the plan sponsor of 
the legacy plan of the years of service the quali-
fied employee completed under the legacy plan 
as of the date the employee satisfies the re-
quirements of subparagraph (B), disregarding 
any years of service that had been forfeited 
under the rules of the defined benefit plan be-
fore that date. 
‘‘(15) SPECIAL RULES FOR COMPUTING YEARS 
OF SERVICE UNDER LEGACY PLANS.—
1359 
‘‘(A) IN
GENERAL.—In determining a 
qualified employee’s years of service under a 
legacy plan for purposes of this section, and in 
addition to any service under applicable regula-
tions, the employee’s years of service under a 
composite plan shall be treated as years of serv-
ice earned under the legacy plan. For purposes 
of such determination, a composite plan shall 
not be treated as a defined benefit plan pursu-
ant to section 437(d). 
‘‘(B) QUALIFIED
EMPLOYEE.—For pur-
poses of this paragraph, an employee is a quali-
fied employee if the employee first completes an 
hour of service under the composite plan (deter-
mined without regard to the provisions of this 
paragraph) within the 12-month period imme-
diately preceding or the 24-month period imme-
diately following the date the employee ceased 
to accrue benefits under the legacy plan. 
‘‘(C) CERTIFICATION OF YEARS OF SERV-
ICE.—For purposes of subparagraph (A), the 
plan sponsor of the legacy plan shall rely on a 
written certification by the plan sponsor of the 
composite plan of the years of service the quali-
fied employee completed under the composite
1360 
plan after the employee satisfies the require-
ments of subparagraph (B), disregarding any 
years of service that has been forfeited under 
the rules of the composite plan.’’. 
(2) REDUCTION OF BENEFITS.— 
(A) EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974.—Section 203(a)(3)(E)(ii) 
of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1053(a)(3)(E)(ii)) is 
amended— 
(i) in subclause (I) by striking 
‘‘4244A’’ and inserting ‘‘305(e), 803,’’; 
and 
(ii) in subclause (II) by striking 
‘‘4245’’ and inserting ‘‘305(e), 4245,’’. 
(B) INTERNAL REVENUE CODE OF 1986.— 
Section 411(a)(3)(F) of the Internal Revenue 
Code of 1986 is amended— 
(i) in clause (i) by striking ‘‘section 
418D or under section 4281 of the Em-
ployee Retirement Income Security Act of 
1974’’ and inserting ‘‘section 432(e) or 
439 or under section 4281 of the Em-
ployee Retirement Income Security Act of 
1974’’; and
1361 
(ii) in clause (ii) by inserting ‘‘or 
432(e)’’ after ‘‘section 418E’’. 
(3) ACCRUED BENEFIT REQUIREMENTS.— 
(A) EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974.—Section 204(b)(1)(B)(i) 
of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1054(b)(1)(B)(i)) is 
amended by inserting ‘‘, including an amend-
ment reducing or suspending benefits under 
section 305(e), 803, 4245 or 4281,’’ after ‘‘any 
amendment to the plan’’. 
(B) INTERNAL REVENUE CODE OF 1986.— 
Section 411(b)(1)(B)(i) of the Internal Revenue 
Code of 1986 is amended by inserting ‘‘, includ-
ing an amendment reducing or suspending ben-
efits under section 418E, 432(e) or 439, or 
under section 4281 of the Employee Retirement 
Income Security Act of 1974,’’ after ‘‘any 
amendment to the plan’’. 
(4) ADDITIONAL ACCRUED BENEFIT REQUIRE-
MENTS.— 
(A) EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974.—Section 204(b)(1)(H)(v) 
of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1053(b)(1)(H)(v)) is
1362 
amended by inserting before the period at the 
end the following: ‘‘, or benefits are reduced or 
suspended under section 305(e), 803, 4245, or 
4281’’. 
(B) INTERNAL REVENUE CODE OF 1986.— 
Section 411(b)(1)(H)(iv) of the Internal Rev-
enue Code of 1986 is amended— 
(i) in the heading by striking ‘‘BEN-
EFIT’’ and inserting ‘‘BENEFIT AND THE 
SUSPENSION AND REDUCTION OF CERTAIN 
BENEFITS’’; and 
(ii) in the text by inserting before the 
period at the end the following: ‘‘, or bene-
fits are reduced or suspended under sec-
tion 418E, 432(e), or 439, or under sec-
tion 4281 of the Employee Retirement In-
come Security Act of 1974’’. 
(5) ACCRUED BENEFIT NOT TO BE DECREASED 
BY AMENDMENT.— 
(A) EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974.—Section 204(g)(1) of the 
Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1053(g)(1)) is amended by in-
serting after ‘‘302(d)(2)’’ the following: ‘‘, 
305(e), 803, 4245,’’.
1363 
(B) INTERNAL REVENUE CODE OF 1986.— 
Section 411(d)(6)(A) of the Internal Revenue 
Code of 1986 is amended by inserting after 
‘‘412(d)(2),’’ the following: ‘‘418E, 432(e), or 
439,’’. 
(g) CERTAIN FUNDING RULES NOT APPLICABLE.— 
(1) EMPLOYEE RETIREMENT INCOME SECURITY 
ACT OF 1974.—Section 305 of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1085) 
is amended by adding at the end the following: 
‘‘(k) LEGACY PLANS.—Sections 302, 304, and 305 
shall not apply to an employer that has an obligation to 
contribute to a plan that is a legacy plan within the mean-
ing of section 805(a) solely because the employer has an 
obligation to contribute to a composite plan described in 
section 801 that is associated with that legacy plan.’’. 
(2) INTERNAL REVENUE CODE OF 1986.—Sec-
tion 432 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following: 
‘‘(k) LEGACY PLANS.—Sections 412, 431, and 432 
shall not apply to an employer that has an obligation to 
contribute to a plan that is a legacy plan within the mean-
ing of section 440A(a) solely because the employer has an 
obligation to contribute to a composite plan described in 
section 437 that is associated with that legacy plan.’’.
1364 
(h) TERMINATION OF COMPOSITE PLAN.—Section 
403(d) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1103(d) is amended— 
(1) in paragraph (1), by striking ‘‘regulations 
of the Secretary.’’ and inserting ‘‘regulations of the 
Secretary, or as provided in paragraph (3).’’; and 
(2) by adding at the end the following: 
‘‘(3) Section 4044(a) of this Act shall be ap-
plied in the case of the termination of a composite 
plan by— 
‘‘(A) limiting the benefits subject to para-
graph (3) thereof to benefits as defined in sec-
tion 802(b)(3)(B); and 
‘‘(B) including in the benefits subject to 
paragraph (4) all other benefits (if any) of indi-
viduals under the plan that would be guaran-
teed under section 4022A if the plan were sub-
ject to title IV.’’. 
(i) GOOD FAITH COMPLIANCE PRIOR
TO GUID-
ANCE.—Where the implementation of any provision of law 
added or amended by this division is subject to issuance 
of regulations by the Secretary of Labor, the Secretary 
of the Treasury, or the Pension Benefit Guaranty Cor-
poration, a multiemployer plan shall not be treated as fail-
ing to meet the requirements of any such provision prior
1365 
to the issuance of final regulations or other guidance to 
carry out such provision if such plan is operated in accord-
ance with a reasonable, good faith interpretation of such 
provision. 
SEC. 140006. EFFECTIVE DATE. 
Unless otherwise specified, the amendments made by 
this division shall apply to plan years beginning after the 
date of the enactment of this Act. 
DIVISION O—EDUCATION PROVI-
SIONS 
AND 
OTHER 
PRO-
GRAMS 
TITLE I—HIGHER EDUCATION 
PROVISIONS 
SEC. 150101. DEFINITIONS. 
In this title: 
(1) AWARD YEAR.—The term ‘‘award year’’ has 
the meaning given the term in section 481(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1088(a)). 
(2) AUTHORIZING
COMMITTEES.—The term 
‘‘authorizing committees’’ has the meaning given the 
term in section 103 of the Higher Education Act of 
1965 (20 U.S.C. 1003). 
(3) FAFSA.—The term ‘‘FAFSA’’ means an 
application under section 483 of the Higher Edu-
1366 
cation Act of 1965 (20 U.S.C. 1090) for Federal 
student financial aid. 
(4) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the 
meaning given the term in section 102 of the Higher 
Education Act of 1965 (20 U.S.C. 1002). 
(5) 
QUALIFYING
EMERGENCY.—The 
term 
‘‘qualifying emergency’’ has the meaning given the 
term in section 3502 of the CARES Act (Public 
Law 116–136), as amended by this Act. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
Subtitle A—CARES Act 
Amendments 
SEC. 150102. APPLICATION OF WAIVER TO PARTICIPATING 
NONPROFIT EMPLOYERS. 
(a) IN GENERAL.—Section 3503 of the CARES Act 
(Public Law 116–136) is amended— 
(1) by redesignating subsection (b) as sub-
section (c); and 
(2) by inserting after subsection (a) the fol-
lowing: 
‘‘(b) WAIVER OF NON-FEDERAL SHARE REQUIRE-
MENT
FOR NONPROFIT EMPLOYERS.—Notwithstanding 
any other provision of law, with respect to funds made
1367 
available for award years 2019–2020 and 2020–2021, the 
Secretary shall waive any requirement that a nonprofit 
employer provide a non-Federal share to match Federal 
funds provided to such nonprofit employer under an agree-
ment under section 443 of the Higher Education Act of 
1965 (20 U.S.C. 1087–53).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect as if included in the enact-
ment of the CARES Act (Public Law 116–136). 
SEC. 150103. EXTENSION OF FEDERAL WORK-STUDY DUR-
ING A QUALIFYING EMERGENCY. 
(a) IN GENERAL.—Section 3505 of the CARES Act 
(Public Law 116–136) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘(not to exceed one aca-
demic year)’’; and 
(B) by striking ‘‘such academic year’’ and 
inserting ‘‘such period’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by inserting ‘‘first’’ 
before ‘‘occurred’’; and 
(B) in paragraph (3), by striking ‘‘for all 
or part of such academic year’’.
1368 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect as if included in the enact-
ment of the CARES Act (Public Law 116–136). 
SEC. 150104. CONTINUING EDUCATION AT AFFECTED FOR-
EIGN INSTITUTIONS. 
(a) IN GENERAL.—Section 3510 of the CARES Act 
(Public Law 116–136) is amended— 
(1) in subsection (a), by striking ‘‘national 
emergency declared’’ and inserting ‘‘national emer-
gency related to the coronavirus declared’’; 
(2) in subsection (b), by striking ‘‘qualifying 
emergency’’ and inserting ‘‘emergency or disaster af-
fecting the institution as described in subsection 
(a)’’; 
(3) in subsection (c), by striking ‘‘qualifying 
emergency’’ and inserting ‘‘applicable emergency or 
disaster as described in subsection (a)’’; and 
(4) in subsection (d)— 
(A) in paragraph (1)— 
(i) by striking ‘‘for the duration of a 
qualifying emergency and the following 
payment period,’’ and inserting ‘‘with re-
spect to a foreign institution, in the case of 
a public health emergency, major disaster 
or emergency, or national emergency re-
1369 
lated to the coronavirus declared by the 
applicable government authorities in the 
country in which the foreign institution is 
located, or in the case of a qualifying 
emergency,’’; and 
(ii) by inserting ‘‘, for the duration of 
the applicable emergency or disaster and 
the 
following 
payment 
period,’’ 
after 
‘‘1087a et seq.)’’; and 
(B) in paragraph (4)— 
(i) by striking ‘‘qualifying emergency’’ 
and inserting ‘‘applicable emergency or dis-
aster’’; and 
(ii) by striking the period at the end 
and inserting ‘‘, the name of the institution 
of higher education located in the United 
States that has entered into a written ar-
rangement with such foreign institution, 
and information regarding the nature of 
such written arrangement, including which 
coursework or program requirements are 
accomplished at each respective institu-
tion.’’.
1370 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect as if included in the enact-
ment of the CARES Act (Public Law 116–136). 
SEC. 150105. FUNDING FOR HBCU CAPITAL FINANCING. 
(a) IN GENERAL.—Section 3512(d) of the CARES 
Act (Public Law 116–136) is amended by striking 
‘‘$62,000,000’’ and inserting ‘‘such sums as may be nec-
essary’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect as if included in the enact-
ment of the CARES Act (Public Law 116–136). 
SEC. 150106. WAIVER AUTHORITY FOR INSTITUTIONAL AID. 
(a) IN GENERAL.—Section 3517(a)(1)(D) of the 
CARES Act (Public Law 116–136) is amended by striking 
‘‘(b), (c), and (g)’’ and inserting ‘‘(b) and (c)’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect as if included in the enact-
ment of the CARES Act (Public Law 116–136). 
SEC. 150107. SCOPE OF MODIFICATIONS TO REQUIRED AND 
ALLOWABLE USES. 
(a) AMENDMENT TO INCLUDE MINORITY SCIENCE 
AND
ENGINEERING
IMPROVEMENT
PROGRAM.—Sub-
section (a) of section 3518 of the CARES Act (Public Law 
116–136) is amended—
1371 
(1) by striking ‘‘part A or B of title III,’’ and 
inserting ‘‘part A, part B, or subpart 1 of part E 
of title III,’’; and 
(2) by inserting ‘‘1067 et seq.;’’ after ‘‘1060 et 
seq.;’’. 
(b) AMENDMENT TO CLARIFY SCOPE OF AUTHOR-
ITY.—Section 3518 of the CARES Act (Public Law 116– 
136) is amended by adding at the end the following new 
subsection: 
‘‘(d) SCOPE OF AUTHORITY.—Notwithstanding sub-
section (a), the Secretary may not modify the required or 
allowable uses of funds for grants awarded under a statu-
tory provision cited in subsection (a) in a manner that 
deviates from the overall purpose of the grant program, 
as provided in the general authorization, findings, or pur-
pose of the grant program under the applicable statutory 
provision cited in such subsection.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the enact-
ment of the CARES Act (Public Law 116–136). 
Subtitle B—Financial Aid Access 
SEC. 150108. EMERGENCY FINANCIAL AID GRANTS EX-
CLUDED FROM NEED ANALYSIS. 
(a) TREATMENT
OF EMERGENCY FINANCIAL AID 
GRANTS
FOR NEED ANALYSIS.—Notwithstanding any
1372 
provision of the Higher Education Act of 1965 (20 U.S.C. 
1001 et seq.), emergency financial aid grants— 
(1) shall not be included as income or assets 
(including untaxed income and benefits under sec-
tion 480(b) of the Higher Education Act of 1965 
(20 U.S.C. 1807vv(b))) in the computation of ex-
pected family contribution for any program funded 
in whole or in part under the Higher Education Act 
of 1965 (20 U.S.C. 1001 et seq.); and 
(2) shall not be treated as estimated financial 
assistance for the purposes of section 471 or section 
480(j) of the Higher Education Act of 1965 (20 
U.S.C. 1087kk; 1087vv(j)). 
(b) DEFINITION.—In this section, the term ‘‘emer-
gency financial aid grant’’ means— 
(1) an emergency financial aid grant awarded 
by an institution of higher education under section 
3504 of the CARES Act (Public Law 116–136); 
(2) an emergency financial aid grant from an 
institution of higher education made with funds 
made available under section 18004 of the CARES 
Act (Public Law 116–136); and 
(3) any other emergency financial aid grant to 
a student from a Federal agency, a State, an Indian 
tribe, an institution of higher education, or a schol-
1373 
arship-granting organization (including a tribal or-
ganization, as defined in section 4 of the Indian 
Self-Determination and Education Assistance Act 
(25 U.S.C. 5304)) for the purpose of providing fi-
nancial relief to students enrolled at institutions of 
higher education in response to a qualifying emer-
gency. 
SEC. 150109. FACILITATING ACCESS TO FINANCIAL AID FOR 
RECENTLY UNEMPLOYED STUDENTS. 
(a) TREATMENT AS DISLOCATED WORKER.— 
(1) IN
GENERAL.—Notwithstanding section 
479(d)(1) of the Higher Education Act of 1965 (20 
U.S.C. 1087ss(d)(1)), any individual who has ap-
plied for, or who is receiving, unemployment benefits 
at the time of the submission of a FAFSA for a cov-
ered award year shall be treated as a dislocated 
worker for purposes of the need analysis under part 
F of title IV such Act (20 U.S.C. 1087kk et seq.) 
applicable to such award year. 
(2) INFORMATION TO APPLICANTS AND INSTI-
TUTIONS.—The Secretary— 
(A) in consultation with institutions of 
higher education, shall carry out activities to in-
form applicants for Federal student financial
1374 
aid under the Higher Education Act of 1965 
(20 U.S.C. 1001 et seq.)— 
(i) of the treatment of individuals who 
have applied for, or who are receiving, un-
employment benefits as dislocated workers 
under paragraph (1); and 
(ii) of the availability of means-tested 
Federal benefits for which such applicants 
may be eligible; 
(B) shall carry out activities to inform in-
stitutions of higher education of the authority 
of such institutions, with explicit written con-
sent of an applicant for Federal student finan-
cial aid under the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.), to provide infor-
mation collected from such applicant’s FAFSA 
to an organization assisting the applicant in ap-
plying for and receiving Federal, State, local, or 
tribal assistance in accordance with section 312 
of the Department of Defense and Labor, 
Health and Human Services, and Education 
Appropriations Act, 2019 and Continuing Ap-
propriations Act, 2019 (Public Law 115–245); 
and
1375 
(C) in consultation with the Secretary of 
Labor, shall carry out activities to inform appli-
cants for, and recipients of, unemployment ben-
efits of the availability of Federal student finan-
cial aid under the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.) and the treat-
ment of such applicants and recipients as dis-
located workers under paragraph (1). 
(3) IMPLEMENTATION.—The Secretary shall 
implement this subsection not later than 30 days 
after the date of enactment of this Act. 
(4) APPLICABILITY.—Paragraph (1) shall apply 
with respect to a FAFSA submitted on or after the 
earlier of— 
(A) the date on which the Secretary imple-
ments this subsection under paragraph (3); or 
(B) the date that is 30 days after the date 
of enactment of this Act. 
(b) PROFESSIONAL JUDGMENT OF FINANCIAL AID 
ADMINISTRATORS.—The guidance of the Secretary titled 
‘‘Update on the use of ‘Professional Judgment’ by Finan-
cial Aid Administrators’’ (DCL ID: GEN–09–05), as in 
effect on May 8, 2009, shall apply— 
(1) to the exercise of professional judgement by 
financial aid administrators pursuant to section
1376 
479A of the Higher Education Act of 1965 (20 
U.S.C. 1087tt) with respect to any FAFSA for a 
covered award year; and 
(2) to the selection of institutions for program 
reviews pursuant to section 498A of the Higher 
Education Act of 1965 (20 U.S.C. 1099c–1) for a 
covered award year. 
(c) DEFINITIONS.—In this section: 
(1) COVERED AWARD YEAR.—The term ‘‘cov-
ered award year’’ means— 
(A) an award year during which there is a 
qualifying emergency; and 
(B) the first award year beginning after 
the end of such qualifying emergency. 
(2) MEANS-TESTED
FEDERAL
BENEFIT.—The 
term ‘‘means-tested Federal benefit’’ includes the 
following: 
(A) The supplemental security income pro-
gram under title XVI of the Social Security Act 
(42 U.S.C. 1381 et seq.). 
(B) The supplemental nutrition assistance 
program under the Food and Nutrition Act of 
2008 (7 U.S.C. 2011 et seq.). 
(C) The free and reduced price school 
lunch program established under the Richard
1377 
B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.). 
(D) The program of block grants for 
States for temporary assistance for needy fami-
lies established under part A of title IV of the 
Social Security Act (42 U.S.C. 601 et seq.). 
(E) The special supplemental nutrition 
program for women, infants, and children es-
tablished by section 17 of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786). 
(F) The Medicaid program under title XIX 
of the Social Security Act (42 U.S.C. 1396 et 
seq.). 
(G) The tax credits provided under the fol-
lowing sections of the Internal Revenue Code of 
1986 (title 26, United States Code): 
(i) Section 25A (relating to American 
Opportunity and Lifetime Learning cred-
its). 
(ii) Section 32 (relating to earned in-
come). 
(iii) Section 36B (relating to refund-
able credit for coverage under a qualified 
health plan).
1378 
(iv) Section 6428 (relating to 2020 re-
covery rebates for individuals). 
(H) Federal housing assistance programs, 
including tenant-based assistance under section 
8(o) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)), and public housing, as 
defined in section 3(b)(1) of such Act (42 
U.S.C. 1437a(b)(1)). 
(I) Such other Federal means-tested bene-
fits as may be identified by the Secretary. 
SEC. 150110. STUDENT ELIGIBILITY FOR HIGHER EDU-
CATION 
EMERGENCY 
RELIEF 
FUND 
AND 
OTHER HIGHER EDUCATION FUNDS. 
(a) IN GENERAL.—With respect to student eligibility 
for receipt of funds provided under section 18004 of the 
CARES Act (Public Law 116–136) and under title VI of 
division A of this Act— 
(1) the Secretary is prohibited from imposing 
any restriction on, or defining, the populations of 
students who may receive such funds other than a 
restriction based solely on the student’s enrollment 
at the institution of higher education; and 
(2) section 401(a) the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1611(a)) shall not apply.
1379 
(b) EFFECTIVE DATE.—Subsection (a) shall take ef-
fect as if included in the enactment of the CARES Act 
(Public Law 116–136), and an institution of higher edu-
cation that provided funds to a student before the date 
of enactment of this Act shall not be penalized if such 
provision is consistent with such subsection and section 
18004 of the CARES Act (Public Law 116–136). 
SEC. 150111. DEFINITION OF DISTANCE EDUCATION. 
(a) IN GENERAL.—Except as otherwise provided in 
title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.), for purposes of such title, the term ‘‘dis-
tance education’’ means education that uses technology— 
(1) to deliver instruction to students enrolled at 
an institution of higher education who are separated 
from the instructor or instructors; and 
(2) to support regular and substantive inter-
action between the students and the instructor or in-
structors, either synchronously or asynchronously. 
(b) TECHNOLOGY.—For purposes of subsection (a), 
the technologies that may be used to offer distance edu-
cation include— 
(1) the internet; 
(2) one-way and two-way transmissions through 
open broadcast, closed circuit, cable, microwave,
1380 
broadband lines, fiber optics, satellite, or wireless 
communications devices; 
(3) audio conferencing; and 
(4) other media used in a course in conjunction 
with any of the technologies listed in paragraphs (1) 
through (3). 
(c) INSTRUCTOR.—For purposes of subsection (a), an 
instructor is an individual responsible for delivering course 
content and who meets the qualifications for instruction 
established by the institution of higher education’s accred-
iting agency. 
(d) SUBSTANTIVE INTERACTION.—For purposes of 
subsection (a), substantive interaction is engaging stu-
dents in teaching, learning, and assessment, consistent 
with the content under discussion, and also includes at 
least two of the following: 
(1) Providing direct instruction. 
(2) Assessing or providing feedback on a stu-
dent’s coursework. 
(3) Providing information or responding to 
questions about the content of a course or com-
petency. 
(4) Facilitating a group discussion regarding 
the content of a course or competency.
1381 
(5) Other instructional activities approved by 
the institution of higher education’s or program’s ac-
crediting agency. 
(e) REGULAR INTERACTION.—For purposes of sub-
section (a), an institution ensures regular interaction be-
tween a student and an instructor or instructors by, prior 
to the student’s completion of a course or competency— 
(1) providing the opportunity for substantive 
interactions with the student on a predictable and 
regular basis commensurate with the length of time 
and the amount of content in the course or com-
petency; and 
(2) monitoring the student’s academic engage-
ment and success and ensuring that an instructor is 
responsible for promptly and proactively engaging in 
substantive interaction with the student when need-
ed, on the basis of such monitoring, or upon request 
by the student. 
(f) EFFECTIVE DATE.—This section shall be effective 
for any semester (or the equivalent) that begins on or after 
August 15, 2020, and shall cease to be effective at the 
end of the 2020–2021 award year. 
SEC. 150112. INSTITUTIONAL STABILIZATION PROGRAM. 
(a) AUTHORITY TO PARTICIPATE.—Notwithstanding 
paragraph (1) or (2) of section 498(c) of the Higher Edu-
1382 
cation Act of 1965 (20 U.S.C. 1099c(c)), an eligible insti-
tution described in subsection (b) may, in lieu of submit-
ting a letter of credit in accordance with section 
498(c)(3)(A) of such Act, submit an application under 
subsection (c)(1) to enter into a COVID–19 provisional 
program participation agreement in accordance with sub-
section (d) to provide the Secretary with satisfactory evi-
dence of its financial responsibility. 
(b) ELIGIBLE INSTITUTION DESCRIBED.—An eligible 
institution described in this subsection is a private non-
profit institution of higher education that— 
(1) either— 
(A) has a composite score of less than 1.0 
for the institutional fiscal year ending in 2019, 
as determined under section 668.171(b)(1) of 
title 34, Code of Federal Regulations; or 
(B) on the date of an application under 
subsection (c)(1), has (or anticipates having) a 
composite score of less than 1.0 for the institu-
tional fiscal year ending in 2020, as determined 
under section 668.171(b)(1) of title 34, Code of 
Federal Regulations; 
(2) during award year 2018–2019— 
(A) offered on-campus classes; and
1383 
(B) qualified for participation in a pro-
gram under title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1070 et seq.); and 
(3) on the date of the application under sub-
section (c)(1), has a liquidity level of less than or 
equal to 180 days. 
(c) APPLICATION.— 
(1) IN GENERAL.—An eligible institution desir-
ing to enter into a COVID–19 provisional program 
participation agreement under subsection (d), shall, 
not later than December 31, 2020, submit to the 
Secretary an application that includes— 
(A) the estimated liquidity level of the eli-
gible institution on the date of the application 
and an assurance that such liquidity level will 
be attested to in accordance with paragraph 
(2); 
(B) an assurance that such eligible institu-
tion will submit a record-management plan in 
accordance with paragraph (3); and 
(C) an assurance that such eligible institu-
tion will submit a teach-out plan in accordance 
with paragraph (4); and 
(D) an assurance that such eligible institu-
tion will submit reports on teach-out agree-
1384 
ments and sufficient progress made on such 
agreements in accordance with subsection 
(d)(3), as applicable. 
(2) AUDITOR ATTESTATION.—Not later than 60 
days after submitting an application under para-
graph (1), an eligible institution shall submit to the 
Secretary an auditor attestation of the liquidity level 
of such eligible institution on the date such institu-
tion submitted such application pursuant to an audit 
conducted by a qualified independent organization or 
person in accordance with standards established by 
the American Institute of Certified Public Account-
ants. 
(3) RECORD-MANAGEMENT PLAN.— 
(A) IN GENERAL.—Not later than 60 days 
after submitting an application under para-
graph (1), an eligible institution shall submit to 
the Secretary a record-management plan ap-
proved by the accrediting agency of such eligi-
ble institution that includes— 
(i) a plan for the custody, including 
by the State authorizing agency, if applica-
ble, and the disposition of—
1385 
(I) a teach-out plan and teach- 
out agreement records, as applicable; 
and 
(II) student records, including 
student transcripts, billing, and finan-
cial aid records; 
(ii) an estimate of the costs necessary 
to carry out such record-management plan; 
and 
(iii) a financial plan to provide fund-
ing for such costs. 
(B) ASSURANCE.—An eligible institution 
that submits a record-management plan under 
subparagraph (A) shall include an assurance to 
the Secretary that, in the case of the closure of 
such eligible institution, such eligible institu-
tion— 
(i) will release all financial holds 
placed on student records; and 
(ii) for the 3-year period beginning on 
the date of the closure of such eligible in-
stitution, will not require a student en-
rolled in such eligible institution on the 
date of such closure (and students with-
drawn from such eligible institution in the
1386 
120 days prior to such date) who requests 
the student records of such student to pur-
chase such records or otherwise charge 
such student a fee with respect to such 
records. 
(C) REPORT.—Not later than 60 days 
after submitting an application under para-
graph (1), an eligible institution shall submit 
the record-management plan required under 
subparagraph (A) and the assurance under sub-
paragraph (B) to the accrediting agency and, if 
applicable, the State authorizing agency, of 
such eligible institution. 
(4) TEACH-OUT PLAN.—Not later than 60 days 
after submitting an application under paragraph (1), 
an eligible institution shall submit a teach-out plan 
approved by the accrediting agency of such eligible 
institution to the Secretary and, if applicable, the 
State authorizing agency of such eligible institution. 
(5) LETTER OF CREDIT DURING PENDING AP-
PLICATION.—Notwithstanding section 498(c)(3)(A) 
of the Higher Education Act of 1965 (20 U.S.C. 
1099c(c)(3)(A)), the Secretary may not use the com-
posite score of an eligible institution (as determined 
under section 668.171(b)(1) of title 34, Code of
1387 
Federal Regulations) to require the eligible institu-
tion to submit a new letter of credit or increase the 
value of an existing letter of credit while the institu-
tion has an application pending under paragraph 
(1). 
(6) NOTIFICATION OF APPLICATION AND STA-
TUS.—The eligible institution shall notify the accred-
iting agency and, if applicable, the State authorizing 
agency, of such institution— 
(A) that the institution has submitted an 
application under paragraph (1) to the Sec-
retary not later than 10 days after submitting 
such application; and 
(B) of the final acceptance or denial of 
such application not later than 5 days after re-
ceiving a final decision from the Secretary. 
(7) APPLICATION
DECISION.—The Secretary 
shall accept or deny an application under paragraph 
(1) not later than 10 days after the date on which 
an eligible institution completes all of the submission 
requirements under paragraphs (2), (3), and (4). 
(d) COVID–19 PROVISIONAL PROGRAM PARTICIPA-
TION AGREEMENT.— 
(1) AUTHORITY TO ENTER AGREEMENT.—The 
Secretary may enter into a COVID–19 provisional
1388 
program participation agreement under this sub-
section with an eligible institution that submits an 
application under subsection (c)(1) on or before De-
cember 31, 2020, only if the Secretary has re-
ceived— 
(A) an auditor attestation under subsection 
(c)(2) that such eligible institution has a liquid-
ity level of less than or equal to 180 days on 
the date of the application of such eligible insti-
tution under subsection (c)(1); 
(B) a record-management plan with re-
spect to such eligible institution in accordance 
with subsection (c)(3); and 
(C) a teach-out plan with respect to such 
eligible institution in accordance with sub-
section (c)(4). 
(2) PARTICIPATION REQUIREMENTS.—In enter-
ing into a COVID–19 provisional program participa-
tion agreement with an eligible institution under this 
subsection, the Secretary shall require such eligible 
institution— 
(A) if such eligible institution has a liquid-
ity level of less than or equal to 90 days on the 
date of the application of such eligible institu-
tion under subsection (c)(1), to submit a teach-
1389 
out agreement (or teach-out agreements, as ap-
plicable) to the Secretary, to the accrediting 
agency of the institution, and, if applicable, the 
State authorizing agency of the institution, in 
accordance with paragraph (3); 
(B) to report to the Secretary in accord-
ance with paragraph (4); 
(C) to meet the administrative capacity re-
quirements under section 498(d) of the Higher 
Education Act of 1965 (20 U.S.C. 1099c(d)); 
and 
(D) to meet the cash reserves requirements 
under section 498(c)(6)(A) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1099c(c)(6)(A)). 
(3) TEACH-OUT AGREEMENTS.— 
(A) SUFFICIENT
PROGRESS.—Not later 
than 30 days after the date on which an eligible 
institution described in paragraph (2)(A) enters 
into a COVID–19 provisional program partici-
pation agreement under this subsection, such 
eligible institution shall submit to the Secretary 
an interim teach-out agreement that provides 
for the equitable treatment of at least 75 per-
cent of enrolled students and a reasonable op-
1390 
portunity for such students to complete their 
program of study. 
(B) ADDENDUM REPORTS.—Not later than 
15 days after the date on which an eligible in-
stitution submits an interim teach-out agree-
ment in accordance with subparagraph (A), and 
every 15 days thereafter, such eligible institu-
tion shall submit to the Secretary a report that 
includes— 
(i) the percentage of students enrolled 
in such eligible institution that are covered 
by a teach-out agreement; 
(ii) the increase in the percentage of 
students covered by such an agreement, as 
compared to the most recently submitted 
report; and 
(iii) such other information as the 
Secretary or accrediting agency of the eli-
gible institution may require, including the 
progress of such eligible institution in 
meeting any benchmarks set by such ac-
crediting agency related to the percentage 
of students that should be covered by such 
an agreement.
1391 
(C) TEACH-OUT AGREEMENT REQUIRED.— 
On the date agreed to by the eligible institution, 
the accrediting agency of such eligible institu-
tion, and the Secretary under a COVID–19 
provisional program participation agreement 
under this subsection, such eligible institution 
shall submit to the Secretary, to the accrediting 
agency of the institution, and, if applicable, the 
State authorizing agency of the institution, a 
teach-out agreement (or agreements, as applica-
ble) that— 
(i) provides for the equitable treat-
ment of all enrolled students and a reason-
able opportunity for such students to com-
plete their program of study; 
(ii) includes— 
(I) a list of all students enrolled 
in such eligible institution on the date 
such eligible institution submitted an 
application under subsection (c)(1) 
(and students withdrawn from such 
eligible institution in the 120 days 
prior to such date), including the 
name, contact information, program 
of study, program requirements com-
1392 
pleted, and estimated date of program 
completion of each such student; 
(II) the amount of any unearned 
tuition, account balances, student 
fees, and refunds due to each such 
student; 
(III) a plan to notify each such 
student, in the case of the closure of 
such eligible institution, of— 
(aa) the process for obtain-
ing a closed school discharge 
under section 437(c)(1) of the 
Higher Education Act of 1965 
(20 U.S.C. 1087(c)(1)), using 
standard language developed by 
the Secretary under subsection 
(f), and the benefits and con-
sequences of such discharge; 
(bb) if applicable, informa-
tion on institutional and State 
refund policies; 
(cc) the teach-out institution 
or institutions available to enroll 
such student;
1393 
(dd) the tuition and fees of 
the educational program offered 
by each such teach-out institution 
and the number and types of 
credit each such teach-out insti-
tution will accept prior to the en-
rollment of such student; and 
(ee) the record-management 
plan submitted in accordance 
with subsection (c)(3). 
(D) DECREASE IN LIQUIDITY.—In the case 
of an eligible institution that enters into a 
COVID–19 provisional program participation 
agreement under this subsection and has a li-
quidity level of greater than 90 days on the 
date of the application of such eligible institu-
tion under subsection (c)(1), if the Secretary 
determines such eligible institution has declined 
such that the liquidity level of such eligible in-
stitution is consistently less than or equal to 90 
days, the Secretary may require such eligible in-
stitution to submit a teach-out agreement (or 
agreements, as applicable) to the Secretary in 
accordance with subparagraph (C). 
(4) REPORTING REQUIREMENTS.—
1394 
(A) ELIGIBLE INSTITUTIONS WITH A LI-
QUIDITY LEVEL OF LESS THAN OR EQUAL TO 90 
DAYS.—In the case of an eligible institution de-
scribed in paragraph (2)(A), the Secretary shall 
require such eligible institution to report to the 
Secretary the liquidity level and total student 
enrollment of such eligible institution not less 
than once every 15 days, until such eligible in-
stitution closes or no longer participates in a 
COVID–19 provisional program participation 
agreement under this subsection. 
(B) ELIGIBLE INSTITUTIONS WITH A LI-
QUIDITY LEVEL OF GREATER THAN 90 DAYS.— 
In the case of an eligible institution that enters 
into a COVID–19 provisional program partici-
pation agreement under this subsection and has 
a liquidity level of greater than 90 days on the 
date of the application of such eligible institu-
tion under subsection (c)(1), the Secretary shall 
require such eligible institution to report to the 
Secretary the liquidity level and total student 
enrollment of such eligible institution not less 
than once every 30 days, until such eligible in-
stitution closes or no longer participates in a
1395 
COVID–19 provisional program participation 
agreement under this subsection. 
(C) ALL ELIGIBLE INSTITUTIONS.—All eli-
gible institutions that enter into a COVID–19 
provisional program participation agreement 
under this subsection shall comply with the re-
porting requirements under paragraph (2) of 
section 668.175(d) of title 34, Code of Federal 
Regulations (as such paragraph is in effect on 
the date of enactment of this section). 
(5) LETTER OF CREDIT DURING AGREEMENT.— 
The Secretary may not require an eligible institution 
that enters into a COVID–19 provisional program 
participation agreement under this subsection to 
submit a new letter of credit or increase the value 
of an existing letter of credit for the duration of the 
agreement. 
(6) DURATION OF AGREEMENT.—A COVID–19 
provisional program participation agreement under 
this subsection may only be entered into for a period 
less than or equal to the period— 
(A) beginning on the first date of the 
agreement; and
1396 
(B) ending on the last day of the first full 
award year that begins after the date described 
in subparagraph (A). 
(7) RENEWAL.— 
(A) IN
GENERAL.—A COVID–19 provi-
sional program participation agreement under 
this subsection may be renewed for 1 award 
year subsequent to the award year described in 
paragraph (6)(B), and shall expire no later 
than June 30, 2022. 
(B) AUTHORITY TO EXTEND RENEWAL PE-
RIOD.—Notwithstanding subparagraph (A), if 
the Secretary determines that an extension of 
renewal authority is in the best interest of the 
eligible institutions with a COVID–19 provi-
sional program participation agreement under 
this subsection, the Secretary may permit 
COVID–19 provisional program participation 
agreement under this subsection to be renewed, 
on an annual basis, for not more than 3 total 
consecutive award years subsequent to the 
award year described in paragraph (6)(B), pro-
vided that no agreement under this subsection 
shall expire later than June 30, 2024.
1397 
(C) RECALCULATION
OF
LIQUIDITY.—An 
eligible institution desiring to renew a COVID– 
19 provisional program participation agreement 
shall— 
(i) submit to the Secretary the liquid-
ity level of the institution on the last day 
of the most recent fiscal year of the eligible 
institution, to be used for purposes of such 
an agreement; and 
(ii) not later than 60 days after sub-
mitting such liquidity level under clause 
(i), have such liquidity level attested to in 
accordance with subsection (c)(2). 
(8) DISCONTINUATION
OF
AGREEMENT.—The 
participation of an eligible institution in a COVID– 
19 provisional program participation agreement 
under this subsection— 
(A) may be discontinued at any time at the 
request of the eligible institution; 
(B) shall be discontinued by the Secretary 
if such eligible institution receives a composite 
score of 1.0 or greater for the most recent insti-
tutional fiscal year, as determined under section 
668.171(b)(1) of title 34, Code of Federal Reg-
ulations; and
1399 
(e) PARTICIPATION IN TITLE IV PROGRAM.—An eli-
gible institution that enters into a COVID–19 provisional 
program participation agreement under subsection (d) 
may participate in programs under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq.) only if 
such eligible institution submits to the Secretary (and the 
accrediting agency of such eligible institution, as applica-
ble) the agreements and reports applicable to such eligible 
institution under paragraphs (3) and (4) of subsection (d). 
(f) STANDARD LANGUAGE.—Not later than 30 days 
after the date of the enactment of this section, the Sec-
retary shall publish standard language relating to closed 
school 
discharges 
for 
purposes 
of 
subsection 
(d)(3)(C)(ii)(III)(aa). 
(g) REPORTS TO CONGRESS.—Not later than 90 days 
after the date of the enactment of this section and every 
90 days thereafter until the date on which every COVID– 
19 provisional program participation agreement under this 
subsection has expired or been terminated, or until June 
30, 2024, whichever is earlier, the Secretary shall submit 
to the authorizing committees a report that includes a 
summary of each COVID–19 provisional program partici-
pation agreement entered into or renewed in the preceding 
90 days by the Secretary under this section, including the
1400 
name, total student enrollment, and liquidity level of the 
institution. 
(h) AUTOMATIC CLOSED SCHOOL DISCHARGE.— 
(1) AUTOMATIC DISCHARGE REQUIRED.—With 
respect to a borrower described in paragraph (2), 
the Secretary shall, without any further action by 
the borrower, discharge the liability of the borrower 
with respect to each of the borrower’s loans (includ-
ing the interest and collection fees) described in 
paragraph (2)(A) in accordance with this subsection. 
(2) BORROWER
REQUIREMENTS.—A borrower 
described in this subparagraph is a borrower who— 
(A) was enrolled for a period of enrollment 
at an eligible institution that was participating 
in a COVID–19 provisional program participa-
tion agreement under subsection (d), and— 
(i) was unable to complete such period 
of enrollment due to the closure of the in-
stitution; or 
(ii) withdrew from the eligible institu-
tion— 
(I) not more than 120 days be-
fore the closure of the eligible institu-
tion; or
1401 
(II) if the Secretary determines 
an extension of the 120-day period de-
scribed in subclause (I) is necessary 
due to exceptional circumstances re-
lated to the closure of the institution, 
during the extended period deter-
mined by the Secretary; 
(B) has one or more loans— 
(i) made under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et 
seq.) for a program of study at the eligible 
institution described in subparagraph (A); 
and 
(ii) that have not been discharged by 
the 
Secretary 
pursuant 
to 
section 
437(c)(1) or section 464(g)(1) of the High-
er Education Act of 1965 (20 U.S.C. 
1087(c)(1); 1087dd(g)(1)); and 
(C) during the 3-year period beginning on 
the date of the closure of the eligible institution 
described in subparagraph (A), has not enrolled 
in any institution of higher education that par-
ticipates in a program under title IV of the 
Higher Education Act of 1965 (20 U.S.C. 1070 
et seq.).
1402 
(3) REPORT.—Beginning on the date that is 3 
years after the date of enactment of this Act and 
every 180 days thereafter, the Secretary shall report 
to the authorizing committees the number of loans 
discharged in accordance with this subsection, and 
any amounts recovered by the Secretary in accord-
ance with the authority of the Secretary to pursue 
claims under section 437(c)(1) or section 464(g)(1) 
of the Higher Education Act of 1965 (20 U.S.C. 
1087(c)(1); 1087dd(g)(1)). 
(i) DEFINITIONS.—In this section: 
(1) LIQUIDITY
LEVEL.—The term ‘‘liquidity 
level’’ means, with respect to an eligible institution, 
the number of days such eligible institution can op-
erate based on available resources, as determined in 
accordance with the Financial Accounting Standards 
Board update entitled ‘‘No. 2016–14 Not-for-Profit 
Entities (Topic 958)’’ and dated August, 2016. 
(2) 
TEACH-OUT
AGREEMENT.—The 
term 
‘‘teach-out agreement’’ means a written agreement 
between an eligible institution and one or more 
teach-out institutions that is in accordance with the 
requirements in section 496(c)(6) of the Higher 
Education Act of 1965 (20 U.S.C. 1099b(c)(6)) and 
that provides for the equitable treatment of students
1403 
and a reasonable opportunity for students to com-
plete their program of study if such eligible institu-
tion, or an institutional location that provides 100 
percent of at least one program offered by such eli-
gible institution, ceases to operate or plans to cease 
operations before all such enrolled students have 
completed their program of study. 
(3) 
TEACH-OUT
INSTITUTION.—The 
term 
‘‘teach-out institution’’ means an institution of high-
er education that— 
(A) is not subject to a COVID–19 provi-
sional program participation agreement under 
this section; 
(B) shows no evidence of significant prob-
lems (including financial responsibility or ad-
ministrative capability) that affect, as deter-
mined by the Secretary, the institution’s ability 
to administer a program under title IV of the 
Higher Education Act of 1965 (20 U.S.C. 1070 
et seq.); 
(C) is not required to pay any material 
debt, as determined by the Secretary, or incur 
any material liability, as determined by the Sec-
retary, arising from a judgment in a judicial
1404 
proceeding, an administrative proceeding or de-
termination, or settlement; 
(D) is not involved in a lawsuit by a Fed-
eral or State authority for financial relief on 
claims related to the making of loans under 
part D of title IV of the Higher Education Act 
of 1965 (20 U.S.C. 1087a et seq.); 
(E) has the necessary experience, re-
sources, and capacity, including support serv-
ices, to enroll students and provide an edu-
cational program of acceptable quality that is 
reasonably similar in content and delivery, and 
to the extent practicable, scheduling, to that 
provided by the eligible institution that enters 
into an agreement with such teach-out institu-
tion; and 
(F) during the five most recent award 
years, has not been subject to a denial, with-
drawal, suspension, or termination of accredita-
tion by an accrediting agency or association rec-
ognized by the Secretary. 
(4) TEACH-OUT
PLAN.—The term ‘‘teach-out 
plan’’ means a written plan developed by an eligible 
institution that provides for the equitable treatment 
of students if such eligible institution, or an institu-
1405 
tional location that provides 100 percent of at least 
one program offered by the eligible institution, 
ceases to operate or plans to cease operations before 
all enrolled students have completed their program 
of study. 
(j) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $300,000,000 to carry out 
subsection (d)(9). 
Subtitle C—Federal Student Loan 
Relief 
PART A—TEMPORARY RELIEF FOR FEDERAL 
STUDENT BORROWERS UNDER THE CARES ACT 
SEC. 150113. EXPANDING LOAN RELIEF TO ALL FEDERAL 
STUDENT LOAN BORROWERS. 
Section 3502(a) of division A of the Coronavirus Aid, 
Relief, and Economic Security Act (Public Law 116–136) 
is amended— 
(1) by redesignating paragraphs (2) through 
(5) as paragraphs (3) through (6), respectively; and 
(2) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) FEDERAL
STUDENT
LOAN.—The term 
‘Federal student loan’ means a loan— 
‘‘(A) made under part D, part B, or part 
E of title IV of the Higher Education Act of
1406 
1965 (20 U.S.C. 1070 et seq.), and held by the 
Department of Education; 
‘‘(B) made, insured, or guaranteed under 
part B of such title, or made under part E of 
such title, and not held by the Department of 
Education; or 
‘‘(C) made under— 
‘‘(i) subpart II of part A of title VII 
of the Public Health Service Act (42 
U.S.C. 292q et seq.); or 
‘‘(ii) part E of title VIII of the Public 
Health Service Act (42 U.S.C. 297a et 
seq.).’’. 
SEC. 150114. EXTENDING THE LENGTH OF BORROWER RE-
LIEF DUE TO THE CORONAVIRUS EMER-
GENCY. 
Section 3513 of division A of the Coronavirus Aid, 
Relief, and Economic Security Act (Public Law 116–136) 
is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) SUSPENSION OF PAYMENTS.— 
‘‘(1) IN GENERAL.—During the period begin-
ning on March 13, 2020, and ending on September 
30, 2021, the Secretary or, as applicable, the Sec-
1407 
retary of Health and Human Services, shall suspend 
all payments due on Federal student loans. 
‘‘(2) TRANSITION PERIOD.—For one additional 
30-day period beginning on the day after the last 
day of the suspension period described in subsection 
(a), the Secretary or, as applicable, the Secretary of 
Health and Human Services, shall ensure that any 
missed payments on a Federal student loan by a 
borrower during such additional 30-day period— 
‘‘(A) do not result in collection fees or pen-
alties associated with late payments; and 
‘‘(B) are not reported to any consumer re-
porting agency or otherwise impact the bor-
rower’s credit history. 
‘‘(3) DETERMINATION
OF
COMPENSATION.— 
The Secretary or, as applicable, the Secretary of 
Health and Human Services shall— 
‘‘(A) with respect to a holder of a Federal 
student loan defined in subparagraph (B) or 
(C) of section 3502(a)(2)— 
‘‘(i) determine any losses for such 
holder due to the suspension of payments 
on such loan under paragraph (1); and 
‘‘(ii) establish reasonable compensa-
tion for such losses; and
1408 
‘‘(B) not later than 60 days after the date 
of enactment of The Heroes Act, with respect 
to a borrower who made a payment on a Fed-
eral student loan defined in subparagraph (B) 
or (C) of section 3502(a)(2) during the period 
beginning on March 13, 2020, and ending on 
such date of enactment, the Secretary shall pay 
to the borrower, an amount equal to the lower 
of— 
‘‘(i) the amount paid by the borrower 
on such loan during such period; or 
‘‘(ii) the amount that was due on such 
loan during such period. 
‘‘(4) RECERTIFICATION.—A borrower who is re-
paying a Federal student loan pursuant to an in-
come-contingent repayment plan under section 
455(d)(1)(D) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(d)(1)(D)) or an income-based re-
payment plan under section 493C of such Act (20 
U.S.C. 1098e) shall not be required to recertify the 
income or family size of the borrower under such 
plan prior to December 31, 2021.’’; 
(2) in subsection (c), by striking ‘‘part D or B 
of title IV of the Higher Education Act of 1965 (20 
U.S.C. 1087a et seq.; 1071 et seq.)’’ and inserting
1409 
‘‘part B, D, or E of title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1087a et seq.; 1071 et seq.; 
1087aa et seq.)’’; 
(3) in subsection (d), by striking ‘‘During the 
period in which the Secretary suspends payments on 
a loan under subsection (a), the Secretary’’ and in-
serting ‘‘During the period in which payments on a 
Federal student loan are suspended under subsection 
(a), the Secretary or, as applicable, the Secretary of 
Health and Human Services’’; 
(4) in subsection (e), by striking ‘‘During the 
period in which the Secretary suspends payments on 
a loan under subsection (a), the Secretary’’ and in-
serting ‘‘During the period in which payments on a 
Federal student loan are suspended under subsection 
(a), the Secretary or, as applicable, the Secretary of 
Health and Human Services’’; and 
(5) in subsection (f), by striking ‘‘the Sec-
retary’’ and inserting ‘‘the Secretary or, as applica-
ble, the Secretary of Health and Human Services,’’.’’ 
SEC. 150115. NO INTEREST ACCRUAL. 
Section 3513(b) of division A of the Coronavirus Aid, 
Relief, and Economic Security Act (Public Law 116–136) 
is amended to read as follows: 
‘‘(b) PROVIDING INTEREST RELIEF.—
1410 
‘‘(1) NO ACCRUAL OF INTEREST.— 
‘‘(A) IN GENERAL.—During the period de-
scribed in subparagraph (D), interest on a Fed-
eral student loan shall not accrue or shall be 
paid by the Secretary (or the Secretary of 
Health and Human Services) during— 
‘‘(i) the repayment period of such 
loan; 
‘‘(ii) any period excluded from the re-
payment period of such loan (including any 
period of deferment or forbearance); 
‘‘(iii) any period in which the bor-
rower of such loan is in a grace period; or 
‘‘(iv) any period in which the borrower 
of such loan is in default on such loan. 
‘‘(B) DIRECT LOANS AND DEPARTMENT OF 
EDUCATION
HELD
FFEL
AND
PERKINS 
LOANS.—For purposes of subparagraph (A), in-
terest shall not accrue on a Federal student 
loan defined in section 3502(a)(2)(A). 
‘‘(C) FFEL AND
PERKINS
LOANS
NOT 
HELD
BY
THE
DEPARTMENT
OF
EDUCATION 
AND
HHS
LOANS.—For purposes of subpara-
graph (A)—
1411 
‘‘(i) in the case of a Federal student 
loan defined in section 3502(a)(2)(B), the 
Secretary shall pay, on a monthly basis, 
the amount of interest due on the unpaid 
principal of such loan to the holder of such 
loan, except that any payments made 
under this clause shall not affect payment 
calculations under section 438 of the High-
er Education Act of 1965 (20 U.S.C. 
1087–1); and 
‘‘(ii) in the case of a Federal student 
loan defined in section 3502(a)(2)(C), the 
Secretary of Health and Human Services 
shall pay, on a monthly basis, the amount 
of interest due on the unpaid principal of 
such loan to the holder of such loan. 
‘‘(D) PERIOD DESCRIBED.— 
‘‘(i) IN
GENERAL.—The period de-
scribed in this clause is the period begin-
ning on March 13, 2020, and ending on 
the later of— 
‘‘(I) September 30, 2021; or 
‘‘(II) the day following the date 
of enactment of The Heroes Act that 
is 2 months after the national U–5
1412 
measure 
of 
labor 
underutilization 
shows initial signs of recovery. 
‘‘(ii) DEFINITIONS.—In this subpara-
graph: 
‘‘(I) NATIONAL U–5 MEASURE OF 
LABOR
UNDERUTILIZATION.—The 
term ‘national U–5 measure of labor 
underutilization’ means the season-
ally-adjusted, monthly U–5 measure 
of labor underutilization published by 
the Bureau of Labor Statistics. 
‘‘(II) INITIAL SIGNS OF RECOV-
ERY.—The term ‘initial signs of recov-
ery’ means that the average national 
U–5 measure of labor underutilization 
for months in the most recent 3-con-
secutive-month period for which data 
are available— 
‘‘(aa) is lower than the high-
est value of the average national 
U–5 measure of labor under-
utilization for a 3-consecutive- 
month period during the period 
beginning in March 2020 and the 
most recent month for which
1413 
data from the Bureau of Labor 
Statistics are available by an 
amount that is equal to or great-
er than one-third of the dif-
ference between— 
‘‘(AA) the highest value 
of the average national U–5 
measure of labor under-
utilization for a 3-consecu-
tive-month 
period 
during 
such period; and 
‘‘(BB) the value of the 
average national U–5 meas-
ure of labor underutilization 
for the 3-consecutive-month 
period ending in February 
2020; and 
‘‘(bb) has decreased for each 
month during the most recent 2 
consecutive months for which 
data from the Bureau of Labor 
Statistics are available. 
‘‘(E) OTHER DEFINITIONS.—In this para-
graph: 
‘‘(i) DEFAULT.—The term ‘default’—
1414 
‘‘(I) in the case of a Federal stu-
dent loan made, insured, or guaran-
teed under part B or D of the Higher 
Education Act of 1965, has the mean-
ing given such term in section 435(l) 
of the Higher Education Act of 1965 
(20 U.S.C. 1085); 
‘‘(II) in the case of a Federal 
student loan made under part E of 
the Higher Education Act of 1965, 
has the meaning given such term in 
section 674.2 of title 34, Code of Fed-
eral Regulations (or successor regula-
tions); or 
‘‘(III) in the case of a Federal 
student 
loan 
defined 
in 
section 
3502(a)(2)(C), has the meaning given 
such term in section 721 or 835 of 
the Public Health Service Act (42 
U.S.C. 292q, 297a), as applicable. 
‘‘(ii) 
GRACE
PERIOD.—The 
term 
‘grace period’ means— 
‘‘(I) in the case of a Federal stu-
dent loan made, insured, or guaran-
teed under part B or D of the Higher
1415 
Education Act of 1965, the 6-month 
period after the date the student 
ceases to carry at least one-half the 
normal full-time academic workload, 
as described in section 428(b)(7) of 
the Higher Education Act of 1965 (20 
U.S.C. 1078(b)(7)); 
‘‘(II) in the case of a Federal 
student loan made under part E of 
the Higher Education Act of 1965, 
the 9-month period after the date on 
which a student ceases to carry at 
least one-half the normal full-time 
academic workload, as described in 
section 464(c)(1)(A) of the Higher 
Education Act of 1965 (20 U.S.C. 
1087dd(c)(1)(A)); and 
‘‘(III) in the case of a Federal 
student 
loan 
defined 
in 
section 
3502(a)(2)(C), the 1-year period de-
scribed in section 722(c) of the Public 
Health 
Service 
Act 
(42 
U.S.C. 
292r(c)) or the 9-month period de-
scribed in section 836(b)(2) of such
1416 
Act (42 U.S.C. 297b(b)(2)), as appli-
cable. 
‘‘(iii) 
REPAYMENT
PERIOD.—The 
term ‘repayment period’ means— 
‘‘(I) in the case of a Federal stu-
dent loan made, insured, or guaran-
teed under part B or D of the Higher 
Education Act of 1965, the repayment 
period described in section 428(b)(7) 
of the Higher Education Act of 1965 
(20 U.S.C. 1078(b)(7)); 
‘‘(II) in the case of a Federal 
student loan made under part E of 
the Higher Education Act of 1965, 
the repayment period described in sec-
tion 464(c)(4) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 
1087dd(c)(4)); or 
‘‘(III) in the case of a Federal 
student 
loan 
defined 
in 
section 
3502(a)(2)(C), the repayment period 
described 
in 
section 
722(c) 
or 
836(b)(2) of the Public Health Serv-
ice 
Act 
(42 
U.S.C. 
292r(c), 
297b(b)(2)), as applicable.
1417 
‘‘(2) INTEREST REFUND IN LIEU OF RETRO-
ACTIVE APPLICABILITY.—By not later than 60 days 
after the date of enactment of The Heroes Act, the 
Secretary or, as applicable, the Secretary of Health 
and Human Services, shall, for each Federal student 
loan defined in subparagraph (B) or (C) of section 
3502(a)(2) for which interest was not paid by such 
Secretary pursuant to paragraph (1) during the pe-
riod beginning on March 13, 2020 and ending on 
such date of enactment— 
‘‘(A) determine the amount of interest due 
(or that would have been due in the absence of 
being voluntarily paid by the holder of such 
loan) on such loan during the period beginning 
March 13, 2020, and ending on such date of 
enactment; and 
‘‘(B) refund the amount of interest cal-
culated under subparagraph (A), by— 
‘‘(i) paying the holder of the loan the 
amount of the interest calculated under 
subparagraph (A), to be applied to the 
loan balance for the borrower of such loan; 
or 
‘‘(ii) if there is no outstanding balance 
or payment due on the loan as of the date
1418 
on which the refund is to be provided, pro-
viding a payment in the amount of the in-
terest calculated under subparagraph (A) 
directly to the borrower. 
‘‘(3) SUSPENSION
OF
INTEREST
CAPITALIZA-
TION.— 
‘‘(A) IN GENERAL.—With respect to any 
Federal student loan, interest that accrued but 
had not been paid prior to March 13, 2020, and 
had not been capitalized as of such date, shall 
not be capitalized. 
‘‘(B) TRANSITION.—The Secretary or, as 
applicable, the Secretary of Health and Human 
Services, shall ensure that any interest on a 
Federal student loan that had been capitalized 
in violation of subparagraph (A) is corrected 
and the balance of principal and interest due 
for the Federal student loan is adjusted accord-
ingly.’’. 
SEC. 150116. NOTICE TO BORROWERS. 
Section 3513(g) of division A of the Coronavirus Aid, 
Relief, and Economic Security Act (Public Law 116–136) 
is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘the Secretary’’ and inserting ‘‘the Sec-
1419 
retary or, as applicable, the Secretary of Health and 
Human Services,’’; 
(2) in paragraph (1)(D), by striking the period 
and inserting a semicolon; 
(3) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘August 1, 2020’’ and insert-
ing ‘‘August 1, 2021’’; and 
(B) by amending subparagraph (B) to read 
as follows: 
‘‘(B) that— 
‘‘(i) a borrower of a Federal student 
loan made, insured, or guaranteed under 
part B or D of title IV of the Higher Edu-
cation Act of 1965 may be eligible to enroll 
in an income-contingent repayment plan 
under section 455(d)(1)(D) of the Higher 
Education 
Act 
of 
1965 
(20 
U.S.C. 
1087e(d)(1)(D)) or an income-based repay-
ment plan under section 493C of such Act 
(20 U.S.C. 1098e), including a brief de-
scription of such repayment plans; and 
‘‘(ii) in the case of a borrower of a 
Federal student loan defined in section 
3502(a)(2)(C) or made under part E of
1420 
title IV of the Higher Education of 1965, 
the borrower may be eligible to enroll in 
such a repayment plan if the borrower con-
solidates such loan with a loan described in 
clause (i) of this subparagraph, and re-
ceives a Federal Direct Consolidation Loan 
under part D of the Higher Education of 
1965 (20 U.S.C. 1087a et seq.); and’’; and 
(C) by adding at the end the following: 
‘‘(3) in a case in which the accrual of interest 
on Federal student loans is suspended under sub-
section (b)(1) beyond September 30, 2021, during 
the 2-month period beginning on the date on which 
the national U–5 measure of labor underutilization 
shows initial signs of recovery (as such terms are de-
fined in subsection (b)(1)(D)) carry out a program 
to provide not less than 6 notices by postal mail, 
telephone, or electronic communication to bor-
rowers— 
‘‘(A) indicating when the interest on Fed-
eral student loans of the borrower will resume 
accrual and capitalization; and 
‘‘(B) the information described in para-
graph (2)(B).’’.
1421 
SEC. 150117. WRITING DOWN BALANCES FOR FEDERAL STU-
DENT LOAN BORROWERS. 
Section 3513 of division A of the Coronavirus Aid, 
Relief, and Economic Security Act (Public Law 116–136), 
as amended by this part, is further amended by adding 
at the end the following: 
‘‘(h) WRITING DOWN BALANCES FOR FEDERAL STU-
DENT LOAN BORROWERS.— 
‘‘(1) IN
GENERAL.—Not later than 30 days 
after the date of enactment of The Heroes Act, the 
Secretary shall cancel or repay an amount on the 
outstanding balance due (including the unpaid prin-
cipal amount, any accrued interest, and any fees or 
charges) on the Federal student loans defined in 
subparagraphs (A) and (B) of section 3502(a)(2) of 
an economically distressed borrower that is equal to 
the lesser of— 
‘‘(A) $10,000; or 
‘‘(B) the total outstanding balance due on 
such loans of the borrower. 
‘‘(2) ECONOMICALLY
DISTRESSED
BORROWER 
DEFINED.—In this subsection, the term ‘economi-
cally distressed borrower’ means a borrower of a 
Federal student loan defined in subparagraph (A) or 
(B) of section 3502(a)(2) who, as of March 12, 
2020—
1422 
‘‘(A) had a monthly payment due on such 
loan of $0 pursuant to an income-contingent re-
payment plan under section 455(d)(1)(D) of the 
Higher Education Act of 1965 (20 U.S.C. 
1087e(d)(1)(D)) or an income-based repayment 
plan under section 493C of such Act (20 U.S.C. 
1098e); 
‘‘(B) was in default on such loan; 
‘‘(C) had a payment due on such loan that 
was at least 90 days past due; or 
‘‘(D) was, with respect to such loan, in— 
‘‘(i) a deferment due to an economic 
hardship 
described 
in 
section 
427(a)(2)(C)(iii), 
428(b)(1)(M)(iv), 
455(f)(2)(D), or 464(c)(2)(A)(iv) of the 
Higher Education Act of 1965; 
‘‘(ii) a deferment due to unemploy-
ment described in section 427(a)(2)(C)(ii), 
428(b)(1)(M)(ii), 
455(f)(2)(B), 
or 
464(c)(2)(A)(ii) of the Higher Education 
Act of 1965; 
‘‘(iii) a deferment due to cancer treat-
ment described in section 427(a)(2)(C)(iv), 
428(b)(1)(M)(v), 
455(f)(3), 
or
1423 
464(c)(2)(A)(vi) of the Higher Education 
Act of 1965; or 
‘‘(iv) a forbearance described in sub-
paragraph (A)(i)(II) or (B) of section 
428(c)(3) or 464(e)(1) of the Higher Edu-
cation Act of 1965. 
‘‘(3) 
APPLICATION.—Unless 
otherwise 
re-
quested by the borrower in writing, a cancellation or 
repayment under paragraph (1) shall be applied — 
‘‘(A) in the case of a borrower whose loans, 
as of March 12, 2020, had different applicable 
rates of interest, first toward the outstanding 
balance due on the loan with the highest appli-
cable rate of interest among such loans; and 
‘‘(B) in the case of a borrower of loans 
that have the same applicable rates of interest, 
first toward the outstanding balance of prin-
cipal due on the loan with the highest principal 
balance among such loans. 
‘‘(4) DATA TO IMPLEMENT.—Contractors of the 
Secretary, and holders of Federal student loans, 
shall report, to the satisfaction of the Secretary the 
information necessary to carry out this subsection. 
‘‘(5) TAXATION.—For purposes of the Internal 
Revenue Code of 1986, in the case of any cancella-
1424 
tion or repayment of indebtedness under this sub-
section with respect to any borrower: 
‘‘(A) EXCLUSION FROM GROSS INCOME.— 
No amount shall be included in the gross in-
come of such borrower by reason of such can-
cellation or repayment. 
‘‘(B) WAIVER OF INFORMATION REPORT-
ING REQUIREMENTS.—Amounts excluded from 
gross income under subparagraph (A) shall not 
be required to be reported (and shall not be 
taken into account in determining whether any 
reporting requirement applies) under chapter 
61 of such Code.’’. 
SEC. 150118. IMPLEMENTATION. 
Section 3513 of division A of the Coronavirus Aid, 
Relief, and Economic Security Act (Public Law 116–136), 
as amended by this part, is further amended by adding 
at the end the following: 
‘‘(i) IMPLEMENTATION.— 
‘‘(1) INFORMATION VERIFICATION.— 
‘‘(A) IN
GENERAL.—To facilitate imple-
mentation of this section, information for the 
purposes described in subparagraph (B), shall 
be reported—
1425 
‘‘(i) by the holders of Federal student 
loans defined in section 3502(a)(2)(B) to 
the satisfaction of the Secretary; and 
‘‘(ii) by the holders of Federal student 
loans defined in section 3502(a)(2)(C) to 
the satisfaction of the Secretary of Health 
and Human Services. 
‘‘(B) PURPOSES.—The purposes of the in-
formation reported under subparagraph (A) are 
to— 
‘‘(i) verify, at the borrower level, the 
payments that are provided or suspended 
under this section; and 
‘‘(ii) calculate the amount of any in-
terest due to the holder for reimbursement 
of interest under subsection (b). 
‘‘(2) COORDINATION.—The Secretary shall co-
ordinate with the Secretary of Health and Human 
Services to carry out the provisions of this section 
with respect to Federal student loans defined in sec-
tion 3502(a)(2)(C).’’. 
SEC. 150119. EFFECTIVE DATE. 
Except as otherwise provided, this part, and the 
amendments made by this part, shall take effect as if en-
1426 
acted as part of the Coronavirus Aid, Relief, and Eco-
nomic Security Act (Public Law 116–136). 
PART B—CONSOLIDATION LOANS AND PUBLIC 
SERVICE LOAN FORGIVENESS 
SEC. 150120. SPECIAL RULES RELATING TO FEDERAL DI-
RECT CONSOLIDATION LOANS. 
(a) SPECIAL RULES RELATING TO FEDERAL DIRECT 
CONSOLIDATION LOANS AND PSLF.— 
(1) PUBLIC SERVICE LOAN FORGIVENESS OP-
TION ON CONSOLIDATION APPLICATION.— 
(A) IN GENERAL.—During the period de-
scribed in subsection (e), the Secretary shall— 
(i) include, in any application for a 
Federal Direct Consolidation Loan under 
part D of title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1087a et seq,), an 
option for the borrower to indicate that the 
borrower intends to participate in the pub-
lic service loan forgiveness program under 
section 455(m) of such Act (20 U.S.C. 
1087e(m)); and 
(ii) for each borrower who submits an 
application for a Federal Direct Consolida-
tion Loan, without regard to whether the
1427 
borrower indicates the intention described 
in clause (i)— 
(I) request that the borrower 
submit a certification of employment; 
and 
(II) after receiving a complete 
certification of employment— 
(aa) carry out the require-
ments of paragraph (2); and 
(bb) inform the borrower of 
the number of qualifying monthly 
payments made on the compo-
nent loans before consolidation 
that shall be deemed, in accord-
ance with paragraph (2)(D), to 
be qualifying monthly payments 
made on the Federal Direct Con-
solidation Loan. 
(B) HOLD
HARMLESS.—The Secretary 
may not change or otherwise rescind a calcula-
tion made under paragraph (2)(D) after in-
forming the borrower of the results of such cal-
culation under subparagraph (A)(ii)(II)(bb). 
(2) PROCESS TO DETERMINE QUALIFYING PAY-
MENTS FOR PURPOSES OF PSLF.—Upon receipt of a
1428 
complete certification of employment under para-
graph (1)(A)(ii)(II) of a borrower who receives a 
Federal Direct Consolidation Loan described in 
paragraph (1)(A), the Secretary shall— 
(A) review the borrower’s payment history 
to identify each component loan of such Federal 
Direct Consolidation Loan; 
(B) for each such component loan— 
(i) calculate the weighted factor of the 
component loan, which shall be the factor 
that represents the portion of such Federal 
Direct Consolidation Loan that is attrib-
utable to such component loan; and 
(ii) determine the number of quali-
fying monthly payments made on such 
component loan before consolidation; 
(C) calculate the number of qualifying 
monthly payments determined under subpara-
graph (B)(ii) with respect to a component loan 
that shall be deemed as qualifying monthly pay-
ments made on the Federal Direct Consolida-
tion Loan by multiplying— 
(i) the weighted factor of such compo-
nent loan as determined under subpara-
graph (B)(i), by
1429 
(ii) the number of qualifying monthly 
payments made on such component loan as 
determined under subparagraph (B)(ii); 
and 
(D) calculate the total number of quali-
fying monthly payments with respect to the 
component loans of the Federal Direct Consoli-
dation Loan that shall be deemed as qualifying 
monthly payments made on such Federal Direct 
Consolidation Loan by— 
(i) adding together the result of each 
calculation made under subparagraph (C) 
with respect to each such component loan; 
and 
(ii) rounding the number determined 
under clause (i) to the nearest whole num-
ber. 
(3) DEFINITIONS.—For purposes of this sub-
section: 
(A) CERTIFICATION
OF
EMPLOYMENT.— 
The term ‘‘certification of employment’’, used 
with respect to a borrower, means a certifi-
cation of the employment of the borrower in a 
public service job (as defined in section
1430 
455(m)(3)(B) of the Higher Education Act of 
1965) on or after October 1, 2007. 
(B) COMPONENT LOAN.—The term ‘‘com-
ponent loan’’, used with respect to a Federal 
Direct Consolidation Loan, means each loan for 
which the liability has been discharged by the 
proceeds of the Federal Direct Consolidation 
Loan, which— 
(i) may include a loan that is not an 
eligible Federal Direct Loan (as defined in 
section 455(m)(3)(A) of the Higher Edu-
cation Act of 1965); and 
(ii) in the case of a subsequent con-
solidation loan, only includes loans for 
which the liability has been directly dis-
charged by such subsequent consolidation 
loan. 
(C) FEDERAL
DIRECT
CONSOLIDATION 
LOAN.—The term ‘‘Federal Direct Consolida-
tion Loan’’ means a Federal Direct Consolida-
tion Loan made under part D of title IV of the 
Higher Education Act of 1965 (20 U.S.C. 
1087a et seq.). 
(D) QUALIFYING MONTHLY PAYMENT.—
1431 
(i) COMPONENT
LOAN.—The term 
‘‘qualifying monthly payment’’, used with 
respect to a component loan, means a 
monthly payment on such loan made by a 
borrower, during a period of employment 
in a public service job (as defined in sec-
tion 455(m)(3)(B) of the Higher Edu-
cation 
Act 
of 
1965 
(20 
U.S.C. 
1087e(m)(3)(B)) on or after October 1, 
2007, pursuant to— 
(I) a repayment plan under part 
B, D, or E of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 
1071 et seq.; 1087a et seq.; 1087aa et 
seq.); or 
(II) in the case of a loan made 
under subpart II of part A of title VII 
of the Public Health Service Act or 
under part E of title VIII of the Pub-
lic Health Service Act, a repayment 
plan under title VII or VIII of such 
Act. 
(ii) FEDERAL DIRECT CONSOLIDATION 
LOAN.—The term ‘‘qualifying monthly pay-
ment’’, used with respect to a Federal Di-
1432 
rect Consolidation Loan, means a monthly 
payment on such loan that counts as 1 of 
the 120 monthly payments described in 
section 455(m)(1)(A) of the Higher Edu-
cation 
Act 
of 
1965 
(20 
U.S.C. 
1087e(m)(3)(B)). 
(b) SPECIAL RULES RELATING TO FEDERAL DIRECT 
CONSOLIDATION LOANS AND ICR AND IBR.— 
(1) IN GENERAL.—During the period described 
in subsection (e), with respect to a borrower who re-
ceives a Federal Direct Consolidation Loan and who 
intends to repay such loan under an income-contin-
gent repayment plan under section 455(d)(1)(D) of 
the Higher Education Act of 1965 (20 U.S.C. 
1087e(d)(1)(D)) or an income-based repayment plan 
under section 493C of such Act (20 U.S.C. 1098e), 
the Secretary shall— 
(A) review the borrower’s payment history 
to identify each component loan of such Federal 
Direct Consolidation Loan; 
(B) for each such component loan— 
(i) calculate the weighted factor of the 
component loan, which shall be the factor 
that represents the portion of such Federal
1433 
Direct Consolidation Loan that is attrib-
utable to such component loan; and 
(ii) determine the number of quali-
fying monthly payments made on such 
component loan before consolidation; 
(C) calculate the number of qualifying 
monthly payments determined under subpara-
graph (B)(ii) with respect to a component loan 
that shall be deemed as qualifying monthly pay-
ments made on the Federal Direct Consolida-
tion Loan by multiplying— 
(i) the weighted factor of such compo-
nent loan as determined under subpara-
graph (B)(i), by 
(ii) the number of qualifying monthly 
payments made on such component loan as 
determined under subparagraph (B)(ii); 
and 
(D) calculate and inform the borrower of 
the total number of qualifying monthly pay-
ments with respect to the component loans of 
the Federal Direct Consolidation Loan that 
shall be deemed as qualifying monthly payments 
made on such Federal Direct Consolidation 
Loan by—
1434 
(i) adding together the result of each 
calculation made under subparagraph (C) 
with respect to each such component loan; 
and 
(ii) rounding the number determined 
under clause (i) to the nearest whole num-
ber. 
(2) HOLD HARMLESS.—The Secretary may not 
change or otherwise rescind a calculation made 
under paragraph (1)(D) after informing the bor-
rower of the results of such calculation under such 
paragraph. 
(3) DEFINITIONS.—In this subsection: 
(A) COMPONENT LOAN; FEDERAL DIRECT 
CONSOLIDATION LOAN.—The terms ‘‘component 
loan’’ and ‘‘Federal Direct Consolidation Loan’’ 
have the meanings given the terms in sub-
section (a). 
(B) QUALIFYING PAYMENT.— 
(i) COMPONENT
LOANS.—Subject to 
clause (ii), the term ‘‘qualifying monthly 
payment’’, used with respect to a compo-
nent loan, means a monthly payment on 
such loan made by a borrower pursuant 
to—
1435 
(I) a repayment plan under part 
B, D, or E of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 
1071 et seq., 1087a et seq., 1087aa et 
seq.); or 
(II) in the case of a loan made 
under subpart II of part A of title VII 
of the Public Health Service Act (42 
U.S.C. 292q et seq.) or under part E 
of title VIII of the Public Health 
Service Act (42 U.S.C. 297a et seq.), 
a repayment plan under title VII or 
VIII of such Act. 
(ii) CLARIFICATION.— 
(I) ICR.—For purposes of deter-
mining the number of qualifying 
monthly payments made on a compo-
nent loan pursuant to an income-con-
tingent repayment plan under section 
455(d)(1)(D) of the Higher Education 
Act 
of 
1965 
(20 
U.S.C. 
1087e(d)(1)(D)), each month a bor-
rower is determined to meet the re-
quirements of section 455(e)(7)(B)(i) 
of such Act with respect to such loan
1436 
shall be treated as such a qualifying 
monthly payment. 
(II) IBR.—For purposes of de-
termining the number of qualifying 
monthly payments made on a compo-
nent loan pursuant to an income- 
based repayment plan under section 
493C of such Act (20 U.S.C. 1098e), 
each month a borrower was deter-
mined to meet the requirements of 
subsection (b)(7)(B) of such section 
493C with respect to such loan shall 
be treated as such a qualifying month-
ly payment. 
(iii) FEDERAL
DIRECT
CONSOLIDA-
TION
LOANS.—The 
term 
‘‘qualifying 
monthly payment’’, used with respect to a 
Federal Direct Consolidation Loan, means 
a monthly payment on such loan that 
counts as a monthly payment under an in-
come-contingent repayment plan under sec-
tion 455(d)(1)(D) of the Higher Education 
Act of 1965 (20 U.S.C. 1087e(d)(1)(D)), 
or an income-based repayment plan under
1437 
section 493C of the Higher Education Act 
of 1965 (20 U.S.C. 1098e). 
(c) NOTIFICATION TO BORROWERS.— 
(1) IN GENERAL.—During the period described 
in subsection (e), the Secretary and the Secretary of 
Health and Human Services shall undertake a cam-
paign to alert borrowers of a loan described in para-
graph (2)— 
(A) on the benefits of consolidating such 
loans into a Federal Direct Consolidation Loan, 
including the benefits of the special rules under 
subsections (a) and (b) of this section; and 
(B) under which servicers and holders of 
Federal student loans shall provide to bor-
rowers such consumer information, and in such 
manner, as determined appropriate by the Sec-
retaries, based on conducting consumer testing 
to determine how to make the information as 
meaningful to borrowers as possible. 
(2) FEDERAL
STUDENT
LOANS.—A loan de-
scribed in this paragraph is— 
(A) a loan made under subpart II of part 
A of title VII of the Public Health Service Act 
or under part E of title VIII of such Act; or
1438 
(B) a loan made under part E of the High-
er Education Act of 1965. 
(d) SPECIAL RULE FOR INTEREST ON FEDERAL DI-
RECT CONSOLIDATION LOANS.—Any Federal Direct Con-
solidation Loan for which the application is received dur-
ing the period described in subsection (e), shall bear inter-
est at an annual rate as calculated under section 
455(b)(8)(D) of the Higher Education Act of 1965 (20 
U.S.C. 1087e(b)(8)(D)), without regard to the require-
ment to round the weighted average of the interest rate 
to the nearest higher one-eighth of one percent. 
(e) PERIOD.—The period described in this clause is 
the period beginning on the date of enactment of this Act, 
and ending on the later of— 
(1) September 30, 2021; or 
(2) the day following the date of enactment of 
this Act that is 2 months after the national U–5 
measure of labor underutilization shows initial signs 
of recovery (as such terms are defined in section 
3513(b) of the Coronavirus Aid, Relief, and Eco-
nomic Security Act (Public Law 116–136), as 
amended by this Act)). 
(f) GAO STUDY ON IMPLEMENTATION OF SPECIAL 
RULES ON CONSOLIDATION.—Not later than 6 months 
after the date of enactment of this Act, the Comptroller
1439 
General of the United States shall submit a report to the 
authorizing committees (defined in section 103 of the 
Higher Education Act of 1965 (20 U.S.C. 1003) on the 
implementation of this section, which shall include— 
(1) information on borrowers who apply for or 
receive a Federal Direct Consolidation Loan under 
part D of the Higher Education Act of 1965 during 
the 
period 
described 
in 
subsection 
(e), 
disaggregated— 
(A) by borrowers who intend to participate 
in the public service loan forgiveness program 
under section 455(m) of such Act (20 U.S.C. 
1087e(m)); and 
(B) by borrowers who intend to repay such 
loans on an income-contingent repayment plan 
under section 455(d)(1)(D) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087e(d)(1)(D)) 
or an income-based repayment plan under sec-
tion 493C of such Act (20 U.S.C. 1098e); 
(2) the extent to which the Secretary has estab-
lished procedures for carrying out subsections (a) 
and (b); 
(3) the extent to which the Secretary and the 
Secretary of Health and Human Services have car-
1440 
ried out the notification to borrowers required under 
subsection (c); and 
(4) recommendations on improving the imple-
mentation of this section to ensure increased bor-
rower participation. 
SEC. 150121. TREATMENT OF PSLF. 
(a) EXCEPTION
FOR PURPOSES
OF PSLF LOAN 
FORGIVENESS.—Section 455(m)(1)(B) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(m)(1)(B)) shall 
apply as if clause (i) were struck. 
(b) HEALTH
CARE
PRACTITIONER.—In section 
455(m)(3)(B)(i) of the Higher Education Act of 1965 (20 
U.S.C. 1087e(m)(3)(B)(i)), the term ‘‘full-time profes-
sionals engaged in health care practitioner occupations’’ 
includes an individual who— 
(1) has a full-time job as a health care practi-
tioner; 
(2) provides medical services in such full-time 
job at a nonprofit hospital or public hospital or other 
nonprofit or public health care facility; and 
(3) is prohibited by State law from being em-
ployed directly by such hospital or other health care 
facility.
1441 
PART C—EMERGENCY RELIEF FOR DEFRAUDED 
BORROWERS 
SEC. 150122. EMERGENCY RELIEF FOR DEFRAUDED BOR-
ROWERS. 
(a) EMERGENCY RELIEF.—An eligible borrower shall 
be entitled to relief on an eligible loan pursuant to this 
section. 
(b) DEFINITIONS.—In this section: 
(1) ELIGIBLE BORROWER.—The term ‘‘eligible 
borrower’’ means an individual— 
(A) who— 
(i) borrowed an eligible loan to fi-
nance the cost of enrollment at an institu-
tion of higher education that, according to 
findings by the Department of Education 
made on or before the date of enactment 
of this Act, made a false or misleading rep-
resentation with the respect to the job 
placement rates of such institution of high-
er education; and 
(ii) has not received the relief de-
scribed in subsection (c)(1) on such eligible 
loan; or 
(B) who— 
(i) borrowed an eligible loan to fi-
nance the cost of enrollment at an institu-
1442 
tion of higher education that, according to 
findings by the Department of Education 
made on or before the date of enactment 
of this Act, made a false or misleading rep-
resentation with respect to guaranteed em-
ployment or transferability of credits of 
such institution of higher education; 
(ii) in an application to the Secretary 
for a defense to repayment of such eligible 
loan, has asserted that the borrower (or 
the dependent student on whose behalf the 
eligible borrowed such eligible loan) relied 
on such false or misleading representation 
in deciding to enroll in such institution of 
higher education; and 
(iii) has not received the relief de-
scribed in subsection (c)(1) on such eligible 
loan. 
(2) ELIGIBLE LOAN.—The term ‘‘eligible loan’’ 
means a loan made, insured, or guaranteed under 
part B or D of title IV of the Higher Education Act 
of 1965 (20 U.S.C. 1071 et seq.; 1087a et seq.). 
(c) RELIEF.—With respect to each eligible borrower, 
the Secretary shall—
1443 
(1) not later than 45 days after the date of en-
actment of this Act, with respect to each eligible 
loan of the borrower described in subsection (b)(1)— 
(A) cancel or repay the full balance of in-
terest 
and 
principal 
(including 
fees 
and 
charges) due on such loan; and 
(B) return to the borrower an amount 
equal to the total amount of payments (includ-
ing voluntary and involuntary payments) made 
on the loan by the borrower; 
(2) not later than 60 days after the date of en-
actment of this section, report the cancellation or re-
payment under paragraph (1)(A) of each eligible 
loan to each consumer reporting agency to which the 
Secretary previously reported the status of the loan, 
so as to delete all adverse credit history assigned to 
the loan; and 
(3) not later than 60 days after the date of en-
actment of this Act, no longer consider a borrower 
who has defaulted on a loan cancelled or repaid 
under this subsection to be in default on such loan. 
(d) NOTIFICATION.—Not later than 30 days after the 
date of enactment of this section, the Secretary shall no-
tify (in writing) each eligible borrower of—
1444 
(1) the relief to which the borrower is entitled 
pursuant to subsection (c), and when the borrower 
will receive such relief; 
(2) the borrower’s eligibility to receive assist-
ance under title IV of the Higher Education Act of 
1965 (20 U.S.C. 1070 et seq.) after receiving relief 
pursuant to subsection (c); and 
(3) any further relief to such borrower as the 
Secretary determines is appropriate. 
(e) EXPEDIENT ADJUDICATION OF STATE ATTORNEY 
GENERAL CLAIMS RELATING TO DEFENSE TO REPAY-
MENT OF A LOAN.— 
(1) IN
GENERAL.—The Secretary shall carry 
out the existing requirement to adjudicate claims 
from State attorneys general, and the requirements 
of paragraph (2) with respect to each claim sub-
mitted to the Secretary on or before the date of en-
actment of this Act by a State attorney general on 
behalf of one or more individuals who— 
(A) allege that the individual borrowed an 
eligible loan to finance the cost of enrollment at 
an institution of higher education whose act or 
omission is a defense to repayment on such loan 
under the Higher Education Act of 1965 (20
1445 
U.S.C. 1001 et seq.) or under applicable State 
law; and 
(B) has not received the relief described in 
paragraph (2)(B) on such eligible loan. 
(2) REQUIREMENTS.—The Secretary shall carry 
out the following with respect to each claim de-
scribed in paragraph (1): 
(A) Not later than 180 days after the date 
of enactment of this Act, adjudicate each such 
claim. 
(B) For each claim for which the Secretary 
finds that an act or omission of the institution 
of higher education is a defense to repayment 
of an eligible loan of the individuals on whose 
behalf the claim was submitted, with respect to 
each such individual, provide the following: 
(i) Not later than 45 days after the 
date on which such claim is adjudicated, 
with respect to each eligible loan described 
in paragraph (1) of the individual— 
(I) cancel or repay the full bal-
ance of interest and principal (includ-
ing fees and charges) due on such 
loan; and
1446 
(II) return to the borrower an 
amount equal to the total amount of 
payments (including voluntary and in-
voluntary payments) made on the loan 
by the borrower. 
(ii) Not later than 60 days after the 
date on which such claim is adjudicated, 
report the cancellation or repayment under 
clause (i) of each eligible loan to each con-
sumer reporting agency to which the Sec-
retary previously reported the status of the 
loan, so as to delete all adverse credit his-
tory assigned to the loan. 
(iii) Not later than 60 days after the 
date on which such claim is adjudicated, 
no longer consider a borrower who has de-
faulted on a loan cancelled or repaid under 
this subparagraph to be in default on such 
loan. 
(C) Not later than 10 days after the date 
of adjudication under subparagraph (A), with 
respect to each claim submitted on behalf of not 
less than 20 individuals, provide detailed re-
ports to the authorizing committees, which shall 
include—
1447 
(i) any evidence submitted by the 
State attorney general, which the Secretary 
relied upon in adjudicating the claim; 
(ii) any evidence submitted by the 
State attorney general, which the Secretary 
did not rely upon in adjudicating the 
claim; 
(iii) any other evidence the Secretary 
relied upon in adjudicating the claim; 
(iv) a summary of all efforts to co-
ordinate with the State attorney general to 
ensure a fair adjudication; and 
(v) a detailed legal rationale for the 
Secretary’s adjudication. 
(D) For the duration of the adjudication of 
each claim, the Secretary shall fulfill the Sec-
retary’s obligation to— 
(i) suspend any payments owed on 
any eligible loan that is the subject of such 
claim, including a suspension of any cap-
italization of interest; 
(ii) suspend any involuntary collec-
tions on such loan, including collections 
under—
1448 
(I) a wage garnishment author-
ized under section 488A of the Higher 
Education Act of 1965 (20 U.S.C. 
1095a) or section 3720D of title 31, 
United States Code; 
(II) a reduction of tax refund by 
amount of debt authorized under sec-
tion 3720A of title 31, United States 
Code, or section 6402(d) of the Inter-
nal Revenue Code of 1986; 
(III) a reduction of any other 
Federal benefit payment by adminis-
trative offset authorized under section 
3716 of title 31, United States Code 
(including a benefit payment due to 
an individual under the Social Secu-
rity Act (42 U.S.C. 301 et seq.) or 
any other provision described in sub-
section (c)(3)(A)(i) of such section); 
or 
(IV) any other involuntary collec-
tion activity by the Secretary; and 
(iii) suspend any interest accrual on 
such loan.
1449 
(E) Not later than 10 days after the date 
of adjudication for which relief is provided 
under subparagraph (B), notify (in writing) 
each individual with respect to whom relief is 
provided of— 
(i) the relief to which the individual is 
entitled pursuant to subparagraph (B), 
and when the individual will receive such 
relief; 
(ii) the individual’s eligibility to re-
ceive assistance under title IV of the High-
er Education Act of 1965 (20 U.S.C. 1070 
et seq.) after receiving relief pursuant to 
subparagraph (B); and 
(iii) any further relief to such bor-
rower as the Secretary determines is ap-
propriate. 
(f) INSTITUTIONAL ACCOUNTABILITY.—With respect 
to each loan cancelled or repaid under this section, the 
Secretary shall initiate an appropriate proceeding to re-
quire the institution of higher education whose act or 
omission resulted in such cancellation or repayment to 
repay to the Secretary the amount so cancelled or repaid.
1450 
(g) TAXATION.—For purposes of the Internal Rev-
enue Code of 1986, in the case of any relief provided under 
subsection (c)(1) or (e)(2)(B) with respect to a borrower: 
(1) EXCLUSION FROM GROSS INCOME; NO RE-
CAPTURE OF TAX BENEFITS.—No amount shall be 
included in the gross income of such borrower by 
reason of such relief and section 111(b) such Code 
shall not apply with respect to such relief. 
(2) WAIVER OF INFORMATION REPORTING RE-
QUIREMENTS.—Amounts excluded from gross in-
come under paragraph (1) shall not be required to 
be reported (and shall not be taken into account in 
determining whether any reporting requirement ap-
plies) under chapter 61 of such Code. 
Subtitle D—Notifications and 
Reporting 
SEC. 150123. NOTIFICATIONS AND REPORTING RELATING 
TO HIGHER EDUCATION. 
(a) NOTIFICATION OF NON-CARES ACT FLEXIBILI-
TIES.— 
(1) NOTICE TO CONGRESS.— 
(A) IN
GENERAL.—Not later than two 
days before the date on which the Secretary 
grants a flexibility described in paragraph (4), 
the Secretary shall—
1451 
(i) submit to the authorizing commit-
tees a written notification of the Sec-
retary’s intent to grant such flexibility; and 
(ii) publish the notification on a pub-
licly accessible website of the Department 
of Education. 
(B) ELEMENTS.—Each notification under 
subparagraph (A) shall— 
(i) identify the provision of law, regu-
lation, or subregulatory guidance to which 
the flexibility will apply; 
(ii) identify any limitations on the 
flexibility, including any time limits; 
(iii) identify the statutory authority 
under which the flexibility is provided; 
(iv) identify the class of covered enti-
ties to which the flexibility will apply; 
(v) identify whether a covered entity 
will need to request the flexibility or 
whether the flexibility will be applied with-
out request; 
(vi) in the case of a flexibility that re-
quires a covered entity to request the flexi-
bility, identify the factors the Secretary
1452 
will consider in approving or denying the 
flexibility; 
(vii) explain how the flexibility is ex-
pected to benefit the covered entity or class 
of covered entities to which it applies; and 
(viii) explain the reasons the flexibility 
is necessary and appropriate due to 
COVID–19. 
(2) QUARTERLY REPORTS.—Not later than 10 
days after the end of each fiscal quarter for the du-
ration of the qualifying emergency through the end 
of the first fiscal year beginning after the conclusion 
of such qualifying emergency, the Secretary shall 
submit to the authorizing committees a report that 
includes, with respect to flexibilities described in 
paragraph (4) that have been issued by the Sec-
retary in the most recently ended fiscal quarter, the 
following: 
(A) In the case of a flexibility that was 
issued by the Secretary without request from a 
covered entity, an explanation of all require-
ments, including reporting requirements, that 
the Secretary imposed on the covered entity as 
a condition of the flexibility.
1453 
(B) In the case of a flexibility for which a 
covered entity requested and received specific 
approval from the Secretary— 
(i) identification of the covered entity 
that received the flexibility; 
(ii) an explanation of the specific rea-
sons for approval of the request; 
(iii) a detailed description of the 
terms of the flexibility, including— 
(I) a description of any limita-
tions on the flexibility; and 
(II) identification of each provi-
sion of law (including regulation and 
subregulatory guidance) that is waived 
or modified and, for each such provi-
sion, the statutory authority under 
which the flexibility was provided; and 
(iv) a copy of the final document 
granting the flexibility. 
(C) In the case of any request for a flexi-
bility that was denied by the Secretary— 
(i) identification of the covered entity 
or entities that were denied a flexibility; 
(ii) a detailed description of the terms 
of the request for the flexibility; and
1454 
(iii) an explanation of the specific rea-
sons for denial of the request. 
(3) REPORT ON FLEXIBILITIES GRANTED BE-
FORE ENACTMENT.—Not later than 30 days after 
the date of enactment of this Act, the Secretary 
shall submit to the authorizing committees a report 
that— 
(A) identifies each flexibility described in 
paragraph (4) that was granted by the Sec-
retary between March 13, 2020, and the date 
of enactment of this Act; and 
(B) with respect to each such flexibility, 
provides the information specified in paragraph 
(1)(B). 
(4) FLEXIBILITY DESCRIBED.—A flexibility de-
scribed in this paragraph is modification or waiver 
of any provision of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.) (including any regu-
lation or subregulatory guidance issued under such 
a provision) that the Secretary determines to be nec-
essary and appropriate to modify or waive due to 
COVID–19, other than a provision of the Higher 
Education Act of 1965 that the Secretary is specifi-
cally authorized to modify or waive pursuant to the 
CARES Act (Public Law 116–136).
1455 
(5) PRIVACY.—The Secretary shall ensure that 
any report or notification submitted under this sub-
section does not reveal personally identifiable infor-
mation about an individual student. 
(6) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to authorize the Sec-
retary to waive or modify any provision of law. 
(b) REPORTS ON EXERCISE OF CARES ACT WAIV-
ERS
BY INSTITUTIONS
OF HIGHER EDUCATION.—Not 
later than 30 days after the date of enactment of this Act, 
each institution of higher education that exercises an au-
thority provided under section 3503(c) (as redesignated 
by section 150102 of this Act), section 3504, section 3505, 
section 3508(d), section 3509, or section 3517(b) of the 
CARES Act (Public Law 116–136) shall submit to the 
Secretary a report that describes the nature and extent 
of the institution’s exercise of such authorities, including 
the number of students and amounts of aid provided under 
title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.) affected by the exercise of such authorities, 
as applicable. 
(c) REPORTS
ON CHANGES
TO CONTRACTS
AND 
AGREEMENTS.—Not later than 10 days after the end of 
each fiscal quarter for the duration of the qualifying emer-
gency through the end of the first fiscal year beginning
1456 
after the conclusion of such qualifying emergency, the Sec-
retary shall submit to the authorizing committees a report 
that includes, for the most recently ended fiscal quarter— 
(1) a summary of all modifications to any con-
tracts with Department of Education contractors re-
lating to Federal student loans, including— 
(A) the contractual provisions that were 
modified; 
(B) the names of all contractors affected 
by the modifications; and 
(C) estimates of any costs or savings re-
sulting from the modifications; 
(2) a summary of all amendments, addendums, 
or other modifications to program participation 
agreements with institutions of higher education 
under section 487 of the Higher Education Act of 
1965 (20 U.S.C. 1094), any provisional program 
participation agreements entered into under such 
section, and any COVID–19 provisional program 
participation agreements entered into under section 
150112 of this Act, including— 
(A) any provisions of such agreements that 
were modified by the Department of Education; 
and
1457 
(B) the number of institutions of higher 
education that received such modifications or 
entered into such provisional agreements, 
disaggregated by— 
(i) status as a four-year, two-year, or 
less-than-two-year public institution, pri-
vate nonprofit institution, or proprietary 
institution; and 
(ii) each category of minority-serving 
institution described in section 371(a) of 
the Higher Education Act (20 U.S.C. 
1067q); and 
(3) sample copies of program participation 
agreements (including provisional agreements), se-
lected at random from among the agreements de-
scribed in paragraph (2), including at least one 
agreement from each type of institution (whether a 
public institution, private nonprofit institution, or 
proprietary institution) that received a modified or 
provisional agreement. 
(d) REPORT TO CONGRESS.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of enactment of this Act, the Secretary 
shall submit to the authorizing committees a report 
that includes the following:
1458 
(A) A summary of the reports received by 
the Secretary under subsection (b). 
(B) A description of— 
(i) the Secretary’s use of the authority 
under section 3506 of the CARES Act 
(Public Law 116–136) to adjust subsidized 
loan usage limits, including the total num-
ber of students and the total amount of 
subsidized loans under title IV of the 
Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.) affected by the Secretary’s 
use of such authority; 
(ii) the Secretary’s use of the author-
ity under section 3507 of the CARES Act 
(Public Law 116–136) to exclude certain 
periods from the Federal Pell Grant dura-
tion limit, including the total number of 
students and the total amount of Federal 
Pell Grants under section 401 of the High-
er Education Act of 1965 (20 U.S.C. 
1070a) affected by the Secretary’s use of 
such authority; 
(iii) the Secretary’s use of the author-
ity under section 3508 of the CARES Act 
(Public Law 116–136) to waive certain re-
1459 
quirements for the return of Federal 
funds, including— 
(I) in the case of waivers issued 
to students under such section, the 
total number of students and the total 
amount of aid under title IV of the 
Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.) affected by the 
Secretary’s use of such authority; and 
(II) in the case of waivers issued 
to institutions of higher education 
under such section, the total number 
of students and the total amount of 
aid under title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070 
et seq.) affected by the Secretary’s 
use of such authority. 
(C) A summary of the information re-
quired to be reported to the authorizing com-
mittees under sections 3510 and 3512 of the 
CARES Act (Public Law 116–136), as amend-
ed by this Act, regardless of whether such infor-
mation has previously been reported to such 
committees as of the date of the report under 
this subsection.
1460 
(D) Information relating to the temporary 
relief for Federal student loan borrowers pro-
vided under section 3513 of the CARES Act 
(Public Law 116–136), including— 
(i) with respect to the notifications re-
quired under subsection (g)(1) of such sec-
tion— 
(I) the total number of individual 
notifications sent to borrowers in ac-
cordance 
with 
such 
subsection, 
disaggregated by electronic, postal, 
and telephonic notifications; 
(II) the total number of notifica-
tions described in clause (i) that were 
sent within the 15-day period speci-
fied in such subsection; and 
(III) the actual costs to the De-
partment of Education of making the 
notifications under such subsection; 
(ii) the projected costs to the Depart-
ment of Education of making the notifica-
tions required under subsection (g)(2) of 
such section; 
(iii) the number of Federal student 
loan borrowers who have affirmatively
1461 
opted-out of payment suspension under 
subsection (a) of such section; 
(iv) the number of individual notifica-
tions sent to employers directing the em-
ployers to halt wage garnishment pursuant 
to 
subsection 
(e) 
of 
such 
section, 
disaggregated by electronic, postal, and tel-
ephonic notifications; 
(v) the number of Federal student 
loan borrowers who have had their wages 
garnished pursuant to section 488A of the 
Higher Education Act of 1965 (20 U.S.C. 
1095a) or section 3720D of title 31, 
United States Code, between March 13, 
2020, and the date of the date of enact-
ment of this Act; 
(vi) the number of Federal student 
loan borrowers subject to interest capital-
ization as a result of consolidating Federal 
student loans since March 13, 2020, and 
the total amount of such interest capital-
ization; 
(vii) the average daily call wait times 
and call drop rates, disaggregated by stu-
dent loan servicer, for the period between
1462 
March 13, 2020, and the date of enact-
ment of this Act; and 
(viii) the estimated or projected sav-
ings to the Department of Education for 
student loan servicing activities for the pe-
riod beginning on March 13, 2020, and 
ending on September 30, 2020, due to 
lower reimbursement or contract costs per 
account for student loan servicers and pri-
vate collection agencies resulting from the 
suspension of Federal student loan pay-
ments and halt to collection activities 
under the CARES Act (Public Law 116– 
136). 
(E) Information relating to the special 
rules relating to Federal Direct Consolidation 
Loans under section 150120 of this Act, includ-
ing— 
(i) the number of borrowers who sub-
mitted an application for a Federal Direct 
Consolidation Loan; 
(ii) the number of borrowers who re-
ceived a Federal Direct Consolidation 
Loan; and
1463 
(iii) the wait time between submitting 
an application and receiving a Federal Di-
rect Consolidation Loan. 
(F) A summary of the information re-
quired to be reported to the authorizing com-
mittees under section 3517(c) and section 
3518(c) of the CARES Act (Public Law 116– 
136), as amended by this Act, regardless of 
whether such information has previously been 
reported to such committees as of the date of 
the report under this subsection. 
(G) A copy of any communication from the 
Department of Education to grantees and Fed-
eral student loan borrowers eligible for rights 
and benefits under section 3519 of the CARES 
Act (Public Law 116–136) to inform such 
grantees and borrowers of their eligibility for 
such rights and benefits. 
(2) DUTY OF HHS.—The Secretary of Health 
and Human Services shall provide to the Secretary 
of Education the information necessary for the Sec-
retary of Education to comply with paragraph 
(1)(D). 
(e) AMENDMENTS TO CARES ACT REPORTING RE-
QUIREMENTS.—
1464 
(1) REPORTING REQUIREMENT FOR HBCU CAP-
ITAL
FINANCING
LOAN
DEFERMENT.—Section 
3512(c) of the CARES Act (Public Law 116–136) 
is amended by striking the period at the end and in-
serting ‘‘, the terms of the loans deferred, and the 
schedule for repayment of the deferred loan 
amount.’’ 
(2) REPORTING
REQUIREMENT
FOR
INSTITU-
TIONAL
AID
MODIFICATIONS.—Section 3517(c) of 
the CARES Act (Public Law 116–136) is amended 
by striking the period at the end and inserting ‘‘, 
identifies the statutory provision waived or modified, 
and describes the terms of the waiver or modifica-
tion received by the institution.’’ 
(3) REPORTING
REQUIREMENT
FOR
GRANT 
MODIFICATIONS.—Section 3518(c) of the CARES 
Act (Public Law 116–136) is amended by striking 
the period at the end and inserting ‘‘and describes 
the terms of the modification received by the institu-
tion or other grant recipient.’’ 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘covered entity’’ means an insti-
tution of higher education, a Federal contractor, a 
student, or any other entity that is subject to the
1465 
Higher Education Act of 1965 (20 U.S.C. 1001 et 
seq.). 
(2) The term ‘‘Federal student loan’’ means a 
loan described in section 3502(a)(2) of the CARES 
Act (Public Law 116–136), as amended by this Act. 
TITLE II—OTHER PROGRAMS 
Subtitle A—Carl D. Perkins Career 
and Technical Education Act of 
2006 and Adult Education and 
Literacy 
COVID–19 
National 
Emergency Response 
SEC. 150201. DEFINITIONS. 
In this subtitle: 
(1) APPRENTICESHIP; APPRENTICESHIP
PRO-
GRAM.—The terms ‘‘apprenticeship’’ and ‘‘appren-
ticeship program’’ mean an apprenticeship program 
registered under the Act of August 16, 1937 (com-
monly known as the ‘‘National Apprenticeship Act’’) 
(50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.), 
including any requirement, standard, or rule promul-
gated under such Act, as such requirement, stand-
ard, or rule was in effect on December 30, 2019. 
(2) CORONAVIRUS.—The term ‘‘coronavirus’’ 
means coronavirus as defined in section 506 of the 
Coronavirus Preparedness and Response Supple-
1466 
mental Appropriations Act, 2020 (Public Law 116– 
123). 
(3) COVID–19 NATIONAL
EMERGENCY.—The 
term ‘‘COVID–19 national emergency’’ means the 
national emergency declared by the President under 
the National Emergencies Act (50 U.S.C. 1601 et 
seq.) on March 13, 2020, with respect to the 
coronavirus. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
SEC. 150202. COVID–19 CAREER AND TECHNICAL EDU-
CATION RESPONSE FLEXIBILITY. 
(a) RETENTION OF FUNDS.—Notwithstanding sec-
tion 133(b)(1) of the Carl D. Perkins Career and Tech-
nical Education Act of 2006 (29 U.S.C. 2353(b)(1)), with 
respect to an eligible recipient that, due to the COVID– 
19 national emergency, does not expend all of the amounts 
that the eligible recipient is allocated for academic year 
2019–2020 under section 131 or 132 of the Carl D. Per-
kins Career and Technical Education Act of 2006 (20 
U.S.C. 2351; 2352), the eligible agency that allocated 
such funds to the eligible recipient— 
(1) may authorize the eligible recipient to retain 
such amounts to carry out, during academic year 
2020–2021, any activities described in the applica-
1467 
tion of eligible recipient submitted under section 
134(b) of such Act (29 U.S.C. 2354(b)) that such 
eligible recipient had intended to carry out during 
academic year 2019–2020; and 
(2) shall ensure that a retention of amounts by 
an eligible recipient under paragraph (1) has no im-
pact on the allocation of amounts to such eligible re-
cipient under section 131 or 132 of the Carl D. Per-
kins Career and Technical Education Act of 2006 
(20 U.S.C. 2351; 2352) for academic year 2020– 
2021. 
(b) POOLING OF FUNDS.—An eligible recipient may, 
in accordance with section 135(c) of the Carl D. Perkins 
Career and Technical Education Act of 2006 (20 U.S.C. 
2355(c)), pool a portion of funds received under such Act 
with a portion of funds received under such Act available 
to one or more eligible recipients to support the transition 
from secondary education to postsecondary education or 
employment for CTE participants whose academic year 
was interrupted by the COVID–19 national emergency. 
(c) PROFESSIONAL
DEVELOPMENT.—During the 
COVID–19 national emergency, section 3(40)(B) of the 
Carl D. Perkins Career and Technical Education Act of 
2006 (20 U.S.C. 2302(40)(B)) shall apply as if ‘‘sustained 
(not stand-alone, 1-day, or short-term workshops), inten-
1468 
sive, collaborative, job-embedded, data-driven, and class-
room-focused,’’ were struck. 
(d) DEFINITIONS.—Except as otherwise provided, the 
terms in this section have the meanings given the terms 
in section 3 of the Carl D. Perkins Career and Technical 
Education Act of 2006 (20 U.S.C. 2302). 
SEC. 150203. ADULT EDUCATION AND LITERACY RESPONSE 
ACTIVITIES. 
(a) ONLINE SERVICE DELIVERY OF ADULT EDU-
CATION
AND
LITERACY
ACTIVITIES.—During 
the 
COVID–19 national emergency, an eligible agency may 
use funds available to such agency under paragraphs (2) 
and (3) of section 222(a) of the Workforce Innovation and 
Opportunity Act (20 U.S.C. 3302(a)) for the administra-
tive expenses of the eligible agency related to transitions 
to online service delivery of adult education and literacy 
activities. 
(b) SECRETARIAL
RESPONSIBILITIES.—Not later 
than 30 days after the date of enactment of this Act, the 
Secretary shall, in carrying out section 242(c)(2)(G) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 
3332(c)(2)(G)), identify and disseminate to States strate-
gies and virtual proctoring tools to—
1469 
(1) assess the progress of learners in adult edu-
cation programs based upon valid research, as ap-
propriate, and; 
(2) measure the progress of such programs in 
meeting the State adjusted levels of performance de-
scribed in section 116(b)(3) of the Workforce Inno-
vation and Opportunity Act (29 U.S.C. 3141(b)(3)). 
(c) DEFINITIONS.—Except as otherwise provided, the 
terms in this section have the meanings given the terms 
in section 203 of the Workforce Innovation and Oppor-
tunity Act (29 U.S.C. 3272). 
SEC. 150204. GENERAL PROVISIONS. 
Notwithstanding any other provision of law, if deter-
mined necessary and appropriate due to the COVID–19 
national emergency by the Secretary, the Secretary may 
waive, for a period not to exceed academic year 2019– 
2020— 
(1) upon the request of a State or Indian Tribe 
receiving funds under title I of the Carl D. Perkins 
Career and Technical Education Act of 2006 (20 
U.S.C. 2321 et seq.), the requirements under section 
421(b) of the General Education Provisions Act (20 
U.S.C. 1225(b)) for the State or Indian Tribe with 
respect to such funds; and
1470 
(2) upon the request of an eligible agency re-
ceiving funds under the Adult Education and Family 
Literacy Act (29 U.S.C. 3271 et seq.), the require-
ments under section 421(b) of the General Edu-
cation Provisions Act (20 U.S.C. 1225(b)) for that 
eligible agency with respect to such funds. 
Subtitle B—Corporation for Na-
tional and Community Service 
COVID–19 Response Activities 
SEC. 150205. CORPORATION FOR NATIONAL AND COMMU-
NITY SERVICE PROVISIONS. 
Section 3514(a)(2)(B) of the CARES Act is amended 
by inserting ‘‘, or the full value of the stipend under sec-
tion 105(a) of title I of the Domestic Volunteer Service 
Act of 1973 (42 U.S.C. 4955), as amended,’’ after ‘‘such 
subtitle’’. 
SEC. 150206. NATIONAL SERVICE EXPANSION FEASIBILITY 
STUDY. 
(a) STUDY REQUIRED.—The Corporation for Na-
tional and Community Service shall conduct a study on 
the feasibility of increasing the capacity of national service 
programs across the country to respond to the COVID– 
19 national emergency, the corresponding public health 
crisis, and the economic and social impact to communities 
across the country.
1471 
(b) SCOPE OF STUDY.—The Corporation for National 
and Community Service shall examine new and existing 
programs, partnerships, organizations and grantees that 
could be utilized to respond to the COVID–19 national 
emergency as described in subsection (a), including— 
(1) service opportunities related to food secu-
rity, education, economic opportunity, and disaster 
or emergency response; 
(2) partnerships with the Department of Health 
and Human Services, the Centers for Disease Con-
trol and Prevention, and public health departments 
in all 50 states and territories to respond to public 
health needs related to COVID–19 such as testing, 
contact tracing, or related activities; and 
(3) the capacity and ability of the State Com-
missions on National and Community Service to re-
spond to the needs of state and local governments in 
each state or territory in which such State Commis-
sion is in operation. 
(c) REQUIRED ASPECTS OF THE STUDY.—In per-
forming the study described in this section, the Corpora-
tion for National and Community Service shall examine 
the following aspects for each of the new or existing pro-
grams, partnerships, organizations and grantees as de-
scribed in subsection (b), including—
1472 
(1) the cost and resources necessary related to 
expansion as described in paragraphs (1), (2) and 
(3) of subsection (b); 
(2) the timeline for implementation of any ex-
panded partnerships or expanded capacity as de-
scribed in paragraphs (1), (2) and (3) of subsection 
(b); 
(3) options to use existing corps programs over-
seen by the Corporation for National and Commu-
nity Service for expanding such capacity, and the 
role of programs, such as AmeriCorps, AmeriCorps 
VISTA, AmeriCorps National Civilian Community 
Corps, or Senior Corps, for expanding capacity as 
described in paragraphs (1), (2) and (3) of sub-
section (b); 
(4) the ability to increase diversity, including 
economic, racial, ethnic, and gender diversity, 
amongst national service volunteers and programs as 
part of any expansion activities; 
(5) the geographic distribution of demand by 
state due to the economic or health related impacts 
of COVID–19 for national service volunteer opportu-
nities across the country and the additional volun-
teer capacity needed to meet this demand, com-
paring existing demand for volunteer opportunities
1473 
to expected or realized increases as a result of 
COVID–19; and 
(6) whether any additional administrative ca-
pacity is needed to respond to increases in demand 
as described in paragraph (5), including through 
grantee organizational capacity or at the Corpora-
tion for National and Community Service. 
(d) REPORTS TO CONGRESSIONAL COMMITTEES.— 
Not later than 30 days after the date of enactment of this 
Act, the Chief Executive Officer of the Corporation for 
National and Community Service shall prepare and submit 
a report to the Committee on Education and Labor and 
the Committee on Appropriations of the House of Rep-
resentatives, and the Committee on Health, Education, 
Labor, and Pensions and the Committee on Appropria-
tions of the Senate, with recommendations on the role for 
the Corporation for National and Community Service in 
responding to the COVID–19 national emergency, includ-
ing any recommendations for legislative, regulatory, and 
administrative changes based on findings related to the 
topics identified under subsection (b). 
SEC. 150207. DEFINITIONS. 
In this subtitle, the following definitions apply: 
(1) DVSA TERMS.—The terms ‘‘Director’’ and 
‘‘poverty line for a single individual’’ have the mean-
1474 
ing given such terms in section 421 of the Domestic 
Volunteer Service Act of 1973 (42 U.S.C. 5061). 
(2) COVID–19 NATIONAL
EMERGENCY.—The 
term ‘‘COVID–19 national emergency’’ means the 
national emergency declared by the President under 
the National Emergencies Act (50 U.S.C. 1601 et 
seq.) on March 13, 2020, with respect to COVID– 
19. 
(3) GRANTEE.—The term ‘‘grantee’’ means a 
recipient of a grant under the Domestic Volunteer 
Service Act of 1973 (42 U.S.C. 4950 et seq.) or the 
National and Community Service Act of 1990 (42 
U.S.C. 12501 et seq.) to run a program. 
(4) PROGRAM.—The term ‘‘program’’ means a 
program funded under the Domestic Volunteer Serv-
ice Act of 1973 (42 U.S.C. 4950 et seq.) or the Na-
tional and Community Service Act of 1990 (42 
U.S.C. 12501 et seq.). 
(5) STATE
COMMISSION
ON
NATIONAL
AND 
COMMUNITY
SERVICE.—The term ‘‘State Commis-
sion on National and Community Service’’ has the 
meaning given such term in section 101 of the Na-
tional and Community Service Act (42 U.S.C. 
12511).
1475 
DIVISION P—ACCESS ACT 
SEC. 160001. SHORT TITLE; TABLE OF CONTENTS. 
This Act may be cited as the ‘‘American Coronavirus/ 
COVID–19 Election Safety and Security Act’’ or the ‘‘AC-
CESS Act’’. 
SEC. 160002. REQUIREMENTS FOR FEDERAL ELECTION 
CONTINGENCY PLANS IN RESPONSE TO NAT-
URAL DISASTERS AND EMERGENCIES. 
(a) IN GENERAL.— 
(1) ESTABLISHMENT.—Not later than 30 days 
after the date of the enactment of this Act, each 
State and each jurisdiction in a State which is re-
sponsible for administering elections for Federal of-
fice shall establish and make publicly available a 
contingency plan to enable individuals to vote in 
elections for Federal office during a state of emer-
gency, public health emergency, or national emer-
gency which has been declared for reasons includ-
ing— 
(A) a natural disaster; or 
(B) an infectious disease. 
(2) UPDATING.—Each State and jurisdiction 
shall update the contingency plan established under 
this subsection not less frequently than every 5 
years.
1476 
(b) REQUIREMENTS RELATING
TO SAFETY.—The 
contingency plan established under subsection (a) shall in-
clude initiatives to provide equipment and resources need-
ed to protect the health and safety of poll workers and 
voters when voting in person. 
(c) REQUIREMENTS RELATING TO RECRUITMENT OF 
POLL
WORKERS.—The contingency plan established 
under subsection (a) shall include initiatives by the chief 
State election official and local election officials to recruit 
poll workers from resilient or unaffected populations, 
which may include— 
(1) employees of other State and local govern-
ment offices; and 
(2) in the case in which an infectious disease 
poses significant increased health risks to elderly in-
dividuals, students of secondary schools and institu-
tions of higher education in the State. 
(d) ENFORCEMENT.— 
(1) ATTORNEY GENERAL.—The Attorney Gen-
eral may bring a civil action against any State or ju-
risdiction in an appropriate United States District 
Court for such declaratory and injunctive relief (in-
cluding a temporary restraining order, a permanent 
or temporary injunction, or other order) as may be
1477 
necessary to carry out the requirements of this sec-
tion. 
(2) PRIVATE RIGHT OF ACTION.— 
(A) IN GENERAL.—In the case of a viola-
tion of this section, any person who is aggrieved 
by such violation may provide written notice of 
the violation to the chief election official of the 
State involved. 
(B) RELIEF.—If the violation is not cor-
rected within 20 days after receipt of a notice 
under subparagraph (A), or within 5 days after 
receipt of the notice if the violation occurred 
within 120 days before the date of an election 
for Federal office, the aggrieved person may, in 
a civil action, obtain declaratory or injunctive 
relief with respect to the violation. 
(C) SPECIAL RULE.—If the violation oc-
curred within 5 days before the date of an elec-
tion for Federal office, the aggrieved person 
need not provide notice to the chief election of-
ficial of the State involved under subparagraph 
(A) before bringing a civil action under sub-
paragraph (B). 
(e) DEFINITIONS.—
1478 
(1) ELECTION
FOR
FEDERAL
OFFICE.—For 
purposes of this section, the term ‘‘election for Fed-
eral office’’ means a general, special, primary, or 
runoff election for the office of President or Vice 
President, or of Senator or Representative in, or 
Delegate or Resident Commissioner to, the Con-
gress. 
(2) STATE.—For purposes of this section, the 
term ‘‘State’’ includes the District of Columbia, the 
Commonwealth of Puerto Rico, Guam, American 
Samoa, the United States Virgin Islands, and the 
Commonwealth of the Northern Mariana Islands. 
(f) EFFECTIVE DATE.—This section shall apply with 
respect to the regularly scheduled general election for Fed-
eral office held in November 2020 and each succeeding 
election for Federal office. 
SEC. 160003. EARLY VOTING AND VOTING BY MAIL. 
(a) REQUIREMENTS.—Title III of the Help America 
Vote Act of 2002 (52 U.S.C. 21081 et seq.) is amended 
by adding at the end the following new subtitle: 
‘‘Subtitle C—Other Requirements 
‘‘SEC. 321. EARLY VOTING. 
‘‘(a) REQUIRING ALLOWING VOTING PRIOR TO DATE 
OF ELECTION.—
1479 
‘‘(1) IN GENERAL.—Each State shall allow indi-
viduals to vote in an election for Federal office dur-
ing an early voting period which occurs prior to the 
date of the election, in the same manner as voting 
is allowed on such date. 
‘‘(2) LENGTH
OF
PERIOD.—The early voting 
period required under this subsection with respect to 
an election shall consist of a period of consecutive 
days (including weekends) which begins on the 15th 
day before the date of the election (or, at the option 
of the State, on a day prior to the 15th day before 
the date of the election) and ends on the date of the 
election. 
‘‘(b) MINIMUM EARLY VOTING REQUIREMENTS.— 
Each polling place which allows voting during an early vot-
ing period under subsection (a) shall— 
‘‘(1) allow such voting for no less than 10 hours 
on each day; 
‘‘(2) have uniform hours each day for which 
such voting occurs; and 
‘‘(3) allow such voting to be held for some pe-
riod of time prior to 9:00 a.m (local time) and some 
period of time after 5:00 p.m. (local time). 
‘‘(c) LOCATION OF POLLING PLACES.—
1480 
‘‘(1) 
PROXIMITY
TO
PUBLIC
TRANSPOR-
TATION.—To the greatest extent practicable, a State 
shall ensure that each polling place which allows vot-
ing during an early voting period under subsection 
(a) is located within walking distance of a stop on 
a public transportation route. 
‘‘(2) AVAILABILITY
IN
RURAL
AREAS.—The 
State shall ensure that polling places which allow 
voting during an early voting period under sub-
section (a) will be located in rural areas of the State, 
and shall ensure that such polling places are located 
in communities which will provide the greatest op-
portunity for residents of rural areas to vote during 
the early voting period. 
‘‘(d) STANDARDS.— 
‘‘(1) IN GENERAL.—The Commission shall issue 
standards for the administration of voting prior to 
the day scheduled for a Federal election. Such 
standards shall include the nondiscriminatory geo-
graphic placement of polling places at which such 
voting occurs. 
‘‘(2) DEVIATION.—The standards described in 
paragraph (1) shall permit States, upon providing 
adequate public notice, to deviate from any require-
ment in the case of unforeseen circumstances such
1481 
as a natural disaster, terrorist attack, or a change 
in voter turnout. 
‘‘(e) BALLOT PROCESSING AND SCANNING REQUIRE-
MENTS.— 
‘‘(1) IN GENERAL.—The State shall begin proc-
essing and scanning ballots cast during early voting 
for tabulation at least 14 days prior to the date of 
the election involved. 
‘‘(2) LIMITATION.—Nothing in this subsection 
shall be construed to permit a State to tabulate bal-
lots in an election before the closing of the polls on 
the date of the election. 
‘‘(f) EFFECTIVE DATE.—This section shall apply 
with respect to the regularly scheduled general election for 
Federal office held in November 2020 and each succeeding 
election for Federal office. 
‘‘SEC. 322. PROMOTING ABILITY OF VOTERS TO VOTE BY 
MAIL. 
‘‘(a) UNIFORM AVAILABILITY OF ABSENTEE VOTING 
TO ALL VOTERS.— 
‘‘(1) IN GENERAL.—If an individual in a State 
is eligible to cast a vote in an election for Federal 
office, the State may not impose any additional con-
ditions or requirements on the eligibility of the indi-
1482 
vidual to cast the vote in such election by absentee 
ballot by mail. 
‘‘(2) ADMINISTRATION OF VOTING BY MAIL.— 
‘‘(A) PROHIBITING
IDENTIFICATION
RE-
QUIREMENT AS CONDITION OF OBTAINING BAL-
LOT.—A State may not require an individual to 
provide any form of identification as a condition 
of obtaining an absentee ballot, except that 
nothing in this paragraph may be construed to 
prevent a State from requiring a signature of 
the individual or similar affirmation as a condi-
tion of obtaining an absentee ballot. 
‘‘(B) PROHIBITING REQUIREMENT TO PRO-
VIDE
NOTARIZATION
OR
WITNESS
SIGNATURE 
AS CONDITION OF OBTAINING OR CASTING BAL-
LOT.—A State may not require notarization or 
witness signature or other formal authentica-
tion (other than voter attestation) as a condi-
tion of obtaining or casting an absentee ballot. 
‘‘(C) DEADLINE
FOR
RETURNING
BAL-
LOT.—A State may impose a deadline for re-
questing the absentee ballot and related voting 
materials from the appropriate State or local 
election official and for returning the ballot to 
the appropriate State or local election official.
1483 
‘‘(3) APPLICATION
FOR
ALL
FUTURE
ELEC-
TIONS.—At the option of an individual, a State shall 
treat the individual’s application to vote by absentee 
ballot by mail in an election for Federal office as an 
application to vote by absentee ballot by mail in all 
subsequent Federal elections held in the State. 
‘‘(b) DUE PROCESS REQUIREMENTS
FOR STATES 
REQUIRING SIGNATURE VERIFICATION.— 
‘‘(1) REQUIREMENT.— 
‘‘(A) IN GENERAL.—A State may not im-
pose a signature verification requirement as a 
condition of accepting and counting an absentee 
ballot submitted by any individual with respect 
to an election for Federal office unless the 
State meets the due process requirements de-
scribed in paragraph (2). 
‘‘(B) SIGNATURE VERIFICATION REQUIRE-
MENT DESCRIBED.—In this subsection, a ‘sig-
nature verification requirement’ is a require-
ment that an election official verify the identi-
fication of an individual by comparing the indi-
vidual’s signature on the absentee ballot with 
the individual’s signature on the official list of 
registered voters in the State or another official