911 
‘‘(A) MAXIMUM PER-STUDENT REBATE.— 
No eligible institution participating in the grant 
program under this section shall receive a per- 
student rebate amount for any year that is 
greater than the national average of annual tui-
tion and fees at public 4-year institutions of 
higher education for such year, as determined 
by the Secretary. 
‘‘(B) FIRST-YEAR
TUITION
AND
FEES.— 
During the first year of participation in the 
grant program under this section, no eligible in-
stitution may increase tuition and fees at a rate 
greater than any annual increase at the eligible 
institution in the previous 5 years. 
‘‘(d) APPLICATION.—An eligible institution that de-
sires a grant under this section shall submit an application 
to the Secretary at such time, in such manner, and con-
taining such information as the Secretary may require. 
‘‘(e) USE OF FUNDS.—Funds awarded under this 
section to a participating eligible institution shall be used 
to waive or significantly reduce tuition and fees for eligible 
students in an amount of not more than up to the annual 
per-student rebate amount for each student, for not more 
than the first 60 credits an eligible student enrolls in the 
participating eligible institution. 
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‘‘(f) SUPPLEMENT, NOT SUPPLANT.—Funds made 
available under section 499S to carry out this section shall 
be used to supplement, and not supplant, other Federal, 
State, and local funds that would otherwise be expended 
to carry out activities under this section. 
‘‘SEC. 499Q. PATHWAYS TO STUDENT SUCCESS FOR HIS-
PANIC-SERVING INSTITUTIONS, ASIAN AMER-
ICAN AND NATIVE AMERICAN PACIFIC IS-
LANDER-SERVING INSTITUTIONS, ALASKA NA-
TIVE-SERVING INSTITUTIONS, NATIVE HAWAI-
IAN-SERVING 
INSTITUTIONS, 
PREDOMI-
NANTLY BLACK INSTITUTIONS, AND NATIVE 
AMERICAN-SERVING 
NONTRIBAL 
INSTITU-
TIONS. 
‘‘(a) IN GENERAL.—From amounts appropriated 
under section 499S(a) for any fiscal year, the Secretary 
shall award grants to participating 4-year minority-serving 
institutions to— 
‘‘(1) encourage students to enroll and success-
fully complete a bachelor’s degree at participating 
institutions; 
‘‘(2) provide incentives to community college 
students to transfer to participating institutions 
through strong transfer pathways to complete a 
bachelor’s degree program; and 
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913 
‘‘(3) support participating institutions to better 
serve new and existing students by engaging in re-
forms and innovations designed to improve comple-
tion rates and other student outcomes. 
‘‘(b) INSTITUTIONAL ELIGIBILITY.—To be eligible to 
participate and receive a grant under this section, an insti-
tution shall be a minority-serving institution that— 
‘‘(1) has a student body of which not less than 
35 percent are low-income students; 
‘‘(2) commits to maintaining or adopting and 
implementing promising and evidence-based institu-
tional reforms and innovative practices to improve 
the completion rates and other student outcomes, 
such as— 
‘‘(A) providing comprehensive academic 
and student support services, including men-
toring and advising, especially for low-income, 
first-generation, and adult students, and other 
students belonging to racial and other groups 
that are historically underrepresented in higher 
education; 
‘‘(B) providing direct support services such 
as— 
‘‘(i) childcare, transportation, emer-
gency financial assistance, and mental 
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914 
health and substance use disorder treat-
ment; 
‘‘(ii) assistance in obtaining health in-
surance coverage; 
‘‘(iii) assistance securing affordable 
housing; 
‘‘(iv) efforts to address food insecurity 
and campus hunger; and 
‘‘(v) efforts to facilitate student par-
ticipation in means-tested Federal benefit 
programs (as defined in section 479(d)); 
‘‘(C) providing accelerated learning oppor-
tunities and degree pathways, such as dual en-
rollment and pathways to graduate and profes-
sional degree programs; 
‘‘(D) partnering with employers, industry, 
not-for-profit associations, and other groups to 
provide opportunities to advance learning out-
side the classroom, including work-based learn-
ing opportunities such as internships or appren-
ticeships or programs designed to improve 
inter-cultural development and personal growth, 
such as foreign exchange and study abroad pro-
grams; or 
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915 
‘‘(E) strengthening remedial education, es-
pecially for low-income, first-generation, and 
adult students, and other students belonging to 
racial and other groups that are underrep-
resented in higher education, including through 
the use of multiple measures (such as a stu-
dent’s college entrance examination score, grade 
point average, high school course list, or a 
placement examination) to identify students in 
need of remedial education; 
‘‘(3) sets performance goals for improving stu-
dent outcomes for the duration of the grant; and 
‘‘(4) if receiving a grant for transfer students, 
has articulation agreements with community colleges 
at the national, State, or local levels to ensure that 
community college credits can fully transfer to the 
participating institution. 
‘‘(c) GRANT AMOUNT.— 
‘‘(1) INITIAL AMOUNT.—For the first year that 
an eligible institution participates in the grant pro-
gram under this section and subject to paragraph 
(3), such participating eligible institution shall re-
ceive a grant in an amount based on the product 
of— 
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916 
‘‘(A) the actual cost of tuition and fees at 
the eligible institution in such year (referred to 
in this section as the per-student rebate); and 
‘‘(B) the number of eligible students en-
rolled in the eligible institution for the pre-
ceding year. 
‘‘(2) SUBSEQUENT INCREASES.—For each suc-
ceeding year after the first year of the grant pro-
gram under this section, each participating eligible 
institution shall receive a grant in the amount deter-
mined under paragraph (1) for such year, except 
that in no case shall the amount of the per-student 
rebate increase by more than 3 percent as compared 
to the amount of such rebate for the preceding year. 
‘‘(3) LIMITATIONS.— 
‘‘(A) MAXIMUM PER-STUDENT REBATE.— 
No eligible institution participating in the grant 
program under this section shall receive a per- 
student rebate amount for a grant year greater 
than the national average of public four-year in-
stitutional tuition and fees, as determined by 
the Secretary. 
‘‘(B) FIRST-YEAR
TUITION
AND
FEES.— 
During the first year of participation in the 
grant program under this section, no eligible in-
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917 
stitution may increase tuition and fees at a rate 
greater than any annual increase made by the 
institution in the previous 5 years. 
‘‘(d) APPLICATION.—An eligible institution shall sub-
mit an application to the Secretary at such time, in such 
a manner, and containing such information as determined 
by the Secretary. 
‘‘(e) USE OF FUNDS.—Funds awarded under this 
section to a participating eligible institution shall be used 
to waive or significantly reduce tuition and fees for eligible 
students in an amount of not more than up to the annual 
per-student rebate amount for each student, for not more 
than the first 60 credits an eligible student enrolls in the 
participating eligible institution. 
‘‘(f) SUPPLEMENT, NOT SUPPLANT.—Funds made 
available under section 499S to carry out this section shall 
be used to supplement, and not supplant, other Federal, 
State, and local funds that would otherwise be expended 
to carry out activities under this section. 
‘‘SEC. 499R. DEFINITIONS. 
‘‘In this subpart: 
‘‘(1) ELIGIBLE STUDENT.— 
‘‘(A) DEFINITION.—The term ‘eligible stu-
dent’ means a student, regardless of age, who— 
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918 
‘‘(i)(I) enrolls in a historically black 
college or university, Tribal College or Uni-
versity, or minority-serving institution; or 
‘‘(II) transfers from a community col-
lege into a historically black college or uni-
versity, Tribal College or University, or mi-
nority-serving institution; 
‘‘(ii) attends the historically black col-
lege or university, Tribal College or Uni-
versity, or minority-serving institution, on 
at least a half-time basis; 
‘‘(iii) maintains satisfactory academic 
progress; and 
‘‘(iv) is a low-income student. 
‘‘(B) SPECIAL RULES.— 
‘‘(i) FIRST 3 YEARS.—An otherwise el-
igible student shall lose eligibility 3 cal-
endar years after first receiving benefits 
under this title. 
‘‘(ii) SPECIAL
RULE
FOR
CERTAIN 
STUDENTS.—Notwithstanding 
subpara-
graph (A)(i), an otherwise eligible student 
whose parent or guardian was denied a 
Federal Direct PLUS loan under part D 
after November 1, 2011, and before March 
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919 
29, 2015, and who subsequently withdrew 
from a historically black college or univer-
sity, Tribal College or University, or mi-
nority-serving institution, and has not yet 
completed a program of study at such his-
torically black college or university or mi-
nority-serving institution, shall be eligible 
to participate under sections 499O, 499P, 
or 499Q in order to complete such pro-
gram of study, subject to all other require-
ments of sections 499O, 499P, or 499Q 
(as the case may be). 
‘‘(2) HISTORICALLY BLACK COLLEGE OR UNI-
VERSITY.—The term ‘historically black college or 
university’ means a part B institution described in 
section 322(2). 
‘‘(3) LOW-INCOME STUDENT.—The term ‘low- 
income student’— 
‘‘(A) shall include any student eligible for 
a Federal Pell Grant under section 401; and 
‘‘(B) may include a student ineligible for a 
Federal Pell Grant under section 401 who is 
determined by the institution to be a low-in-
come student based on an analysis of the stu-
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920 
dent’s ability to afford the cost of attendance at 
the institution. 
‘‘(4) MINORITY-SERVING
INSTITUTION.—The 
term ‘minority-serving institution’ means any public 
or not-for-profit institution of higher education— 
‘‘(A) described in paragraph (2) and para-
graphs (4) through (7) of section 371(a); and 
‘‘(B) designated as a minority-serving in-
stitution by the Secretary. 
‘‘(5) TRIBAL COLLEGE OR UNIVERSITY.—The 
term ‘Tribal College or University’ has the meaning 
given the term in section 316. 
‘‘SEC. 499S. APPROPRIATIONS. 
‘‘(a) AUTHORIZATION
AND APPROPRIATIONS
FOR 
HBCU, TCU, AND MSI GRANTS.—For the purpose of 
carrying out sections 499O, 499P, and 499Q there are 
authorized to be appropriated, and there are appro-
priated— 
‘‘(1) $63,250,000 for fiscal year 2021; 
‘‘(2) $206,990,000 for fiscal year 2022; 
‘‘(3) $1,232,760,000 for fiscal year 2023; 
‘‘(4) $1,282,210,000 for fiscal year 2024; 
‘‘(5) $1,333,950,000 for fiscal year 2025; 
‘‘(6) $1,386,850,000 for fiscal year 2026; 
‘‘(7) $1,408,700,000 for fiscal year 2027; 
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921 
‘‘(8) $1,501,850,000 for fiscal year 2028; 
‘‘(9) $1,562,800,000 for fiscal year 2029; and 
‘‘(10) $1,626,040,000 for fiscal year 2030 and 
each succeeding fiscal year. 
‘‘(b) AVAILABILITY.—Funds appropriated under sub-
section (a) are to remain available to the Secretary until 
expended. 
‘‘(c) INSUFFICIENT FUNDS.—If the amount appro-
priated under subsection (a) for a fiscal year is not suffi-
cient to award each participating institution in the grant 
programs under sections 499O, 499P, and 499Q a grant 
under this part equal to 100 percent of the grant amount 
determined under section 499O(c), 499P(c), or 499Q(c), 
as appropriate, the Secretary may ratably reduce the 
amount of each such grant or take other actions necessary 
to ensure an equitable distribution of such amount.’’. 
SEC. 4804. UNMET NEED FOR FEDERAL PELL GRANT RE-
CIPIENTS. 
Part I of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1070 et seq.), as added by section 4801, 
is further amended by adding at the end the following: 
‘‘Subpart 4—Additional College Affordability Grants 
‘‘SEC. 499T. UNMET NEED FOR FEDERAL PELL GRANT RE-
CIPIENTS. 
‘‘(a) IN GENERAL.— 
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922 
‘‘(1) GRANT PROGRAM.—Subject to paragraph 
(2), from amounts appropriated under subsection (f) 
for any fiscal year, the Secretary may award grants 
to eligible States and Indian tribes described in 
paragraph (3) to pay the Federal share of expendi-
tures needed to carry out the activities and services 
described in subsection (d). 
‘‘(2) LIMITATION.—The Secretary may not 
make grants under paragraph (1) in fiscal year un-
less all grants eligible to be made under subpart 1 
have been made for such fiscal year. 
‘‘(3) ELIGIBILITY.—A State or Indian tribe 
may only be eligible for a grant under this section 
in a fiscal year if such State or Indian tribe received 
a grant under subpart 1 for such fiscal year. 
‘‘(b) FEDERAL SHARE; NON-FEDERAL SHARE.— 
‘‘(1) FEDERAL SHARE.— 
‘‘(A) FORMULA.—Subject to paragraph 
(2), the Federal share of a grant under this 
section shall be based on a formula, determined 
by the Secretary, that— 
‘‘(i) accounts for the State or Indian 
tribe’s share of Pell Grant recipients; 
‘‘(ii) provides, for each Pell Grant re-
cipient in the State or Indian tribe, a per- 
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923 
student amount that is at least 75 percent 
of— 
‘‘(I) for the first award year for 
which grants are made under this sec-
tion, the average unmet need of Pell 
Grant recipients in all States for the 
most recent year for which data are 
available; and 
‘‘(II) for each subsequent award 
year, the amount determined under 
this subparagraph for the preceding 
award year, increased by the lesser 
of— 
‘‘(aa) a percentage equal to 
the estimated percentage increase 
in the Consumer Price Index (as 
determined by the Secretary) 
since the date of such determina-
tion; or 
‘‘(bb) 3 percent. 
‘‘(B) EXCEPTION
FOR
CERTAIN
INDIAN 
TRIBES.—In any case in which not less than 75 
percent of the students at the institutions of 
higher education operated or controlled by an 
Indian tribe are low-income students, the 
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924 
amount of the Federal share for such Indian 
tribe shall be not less than 95 percent of the 
total amount needed to waive tuition and fees 
for all Pell Grant recipients enrolled in such in-
stitutions of higher education. 
‘‘(2) STATE OR TRIBAL SHARE.— 
‘‘(A) FORMULA.— 
‘‘(i) IN GENERAL.—The State or trib-
al share of a grant under this section for 
each fiscal year shall be the amount needed 
to pay 25 percent of the average unmet 
need of Pell Grant recipients in all States 
in the first award year for which grants 
are made under this section for all Pell 
Grant recipients in the State or Indian 
tribe, respectively, for such fiscal year, ex-
cept as provided in clause (ii). 
‘‘(ii) EXCEPTION
FOR
CERTAIN
IN-
DIAN TRIBES.—In the case of an Indian 
tribe described in paragraph (1)(B), the 
amount of such Indian tribe’s tribal share 
shall not exceed 5 percent of the total 
amount needed to pay the average unmet 
need for all Pell Grant recipients enrolled 
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925 
in the institutions of higher education de-
scribed in such paragraph. 
‘‘(B) NEED-BASED AID.—A State or In-
dian tribe may include, as part of the State or 
tribal share, any need-based financial aid 
that— 
‘‘(i) is provided from State or tribal 
funds to a Pell Grant recipient; and 
‘‘(ii) may be used by such student to 
pay costs of attendance other than tuition 
and fees. 
‘‘(3) DETERMINING NUMBER OF PELL GRANT 
RECIPIENTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
develop and implement a process for accurately 
estimating the number of Pell Grant recipients 
in a State or Indian tribe for purposes of para-
graphs (1) and (2). 
‘‘(B) INITIAL
DETERMINATION.—For the 
first year for which grants are awarded under 
this section, the number of Pell Grant recipi-
ents in a State or Indian tribe shall be consid-
ered to be equal to the number of Pell Grant 
recipients that were in the State or tribe for the 
preceding school year. 
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926 
‘‘(4) ADJUSTMENT OF GRANT AMOUNT.—Not 
later than 180 days after the date on which a State 
or Indian tribe receives a grant under this section, 
the Secretary shall— 
‘‘(A) in consultation with the State or tribe 
concerned, determine whether the actual num-
ber of Pell Grant recipients in the State or 
Tribe for the year covered by the grant is great-
er than the estimated number of such students 
that was used to determine the amount of the 
grant; and 
‘‘(B) if it is determined under paragraph 
(1) that the actual number of Pell Grant recipi-
ents in the State or Tribe is higher than such 
estimate, issue a supplementary grant payment 
to the State or tribe in an amount that ensures 
that the total amount of the grant funds re-
ceived by the State or tribe under this section 
for the year covered by the grant accurately re-
flects the higher number of Pell Grant recipi-
ents. 
‘‘(c) APPLICATIONS.—In order to receive a grant 
under this section, a State or tribe shall submit an appli-
cation to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require. 
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927 
‘‘(d) ALLOWABLE USES OF FUNDS.— 
‘‘(1) IN
GENERAL.—A State or Indian tribe 
shall use a grant under this section only to provide 
to each Pell Grant recipient a grant that equals the 
unmet need of such recipient. 
‘‘(2) ANNUAL
REPORT.—A State or Indian 
tribe receiving a grant under this section shall sub-
mit an annual report to the Secretary describing the 
uses of grant funds under this section, the progress 
made in fulfilling the requirements of the grant, and 
rates of transfer, graduation, and attainment of rec-
ognized postsecondary credentials at institutions of 
higher education in the State or Indian tribe, includ-
ing such rates disaggregated by race, income, and 
age, and including any other information as the Sec-
retary may require. 
‘‘(3) REPORTING
BY
THE
SECRETARY.—The 
Secretary annually shall— 
‘‘(A) compile and analyze the information 
described in paragraph (2); and 
‘‘(B) prepare and submit a report to the 
Committee on Health, Education, Labor, and 
Pensions of the Senate and the Committee on 
Education and Labor of the House of Rep-
resentatives containing the analysis described in 
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928 
subparagraph (A) and an identification of State 
and Indian tribe best practices for achieving the 
purpose of this section. 
‘‘(4) TECHNICAL ASSISTANCE.—The Secretary 
shall provide technical assistance to eligible States 
and Indian tribes concerning best practices regard-
ing the promising and evidence-based institutional 
reforms and innovative practices to improve student 
outcomes and shall disseminate such best practices 
among the States and Indian tribes. 
‘‘(5) CONTINUATION OF FUNDING.— 
‘‘(A) IN
GENERAL.—A State or Indian 
tribe receiving a grant under this section for a 
fiscal year may continue to receive funding 
under this section for future fiscal years condi-
tioned on the availability of budget authority 
and on meeting the requirements of the grant, 
as determined by the Secretary. 
‘‘(B) DISCONTINUATION.—The Secretary 
may discontinue funding of the Federal share of 
a grant under this section if the State or Indian 
tribe has violated the terms of the grant. 
‘‘(6) SUPPLEMENT, NOT
SUPPLANT.—Funds 
made available under this section shall be used to 
supplement, and not supplant, other Federal, State, 
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929 
and local funds that would otherwise be expended to 
carry out activities under this section. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’ 
has the meaning given the term in section 102 of the 
Federally Recognized Indian Tribe List Act of 1994 
(25 U.S.C. 479a). 
‘‘(2) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
meaning given the term in section 101. 
‘‘(3) PELL GRANT RECIPIENT.— 
‘‘(A) DEFINITION.—The term ‘Pell Grant 
recipient’ means a student who— 
‘‘(i) attends a public institution of 
higher education on not less than a half- 
time basis; 
‘‘(ii) is a recipient of a Federal Pell 
Grant under subpart 1 of part A of title 
IV of this Act; 
‘‘(iii) 
is 
maintaining 
satisfactory 
progress (as defined in section 484(c)) in 
the student’s course of study; 
‘‘(iv) is enrolled in an eligible program 
(as defined in section 481(b)); and 
‘‘(v) either— 
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‘‘(I) qualifies for in-State resi-
dent institution of higher education 
tuition, as determined by the State or 
Indian tribe; or 
‘‘(II) would qualify for such in- 
State tuition, but for the immigration 
status of such student. 
‘‘(B) SPECIAL RULE.—An otherwise Pell 
Grant recipient shall lose eligibility under this 
section— 
‘‘(i) after 3 years of receiving benefits 
under this section for enrollment at a com-
munity college (as defined in section 
499F); and 
‘‘(ii) after 6 years of receiving benefits 
under this section for enrollment in a 4- 
year institution of higher education. 
‘‘(4) RECOGNIZED
POSTSECONDARY
CREDEN-
TIAL.—The term ‘recognized postsecondary creden-
tial’ has the meaning as described in section 3 of the 
Workforce Innovation and Opportunity Act (29 
U.S.C. 3102). 
‘‘(5) STATE.—The term ‘State’ has the mean-
ing given the term in section 103. 
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931 
‘‘(6) UNMET NEED.—The term ‘unmet need’ 
means, with respect to a Pell Grant recipient, the 
amount determined by calculating the difference be-
tween— 
‘‘(A) the institution’s cost of attendance 
(as defined in section 472) for the year for 
which the determination is made; and 
‘‘(B) the sum of— 
‘‘(i) the total amount of need-based 
grant aid and merit-based grant aid, from 
Federal, State, and institutional sources, 
provided to such Pell Grant recipient for 
the year for which the determination is 
made; and 
‘‘(ii) the expected family contribution 
for such Pell Grant recipient for the year 
for which the determination is made. 
‘‘(f) APPROPRIATIONS.— 
‘‘(1) AUTHORIZATION AND APPROPRIATIONS.— 
For the purpose of making grants under this section 
there are authorized to be appropriated such sums 
as may be necessary to carry out this section for fis-
cal year 2021 and each succeeding fiscal year. 
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932 
‘‘(2) 
AVAILABILITY.—Funds 
appropriated 
under paragraph (1) shall remain available to the 
Secretary until expended. 
‘‘(3) INSUFFICIENT FUNDS.—If the amount ap-
propriated under paragraph (1) for a fiscal year is 
not sufficient to award each participating State and 
Indian tribe a grant under this section that is equal 
to the minimum amount of the Federal share de-
scribed in subsection (b), the Secretary may ratably 
reduce the amount of each such grant or take other 
actions necessary to ensure an equitable distribution 
of such amount. 
‘‘(4) TRANSFER AVAILABILITY.—The Secretary 
is authorized, subject to the availability of appro-
priations, to transfer amounts authorized to be ap-
propriated to carry out subpart 1 for a fiscal year 
to make grants under this section if all grants eligi-
ble to be made under such subpart have been made 
for such fiscal year.’’. 
SEC. 4805. UNMET NEED FOR STUDENTS. 
Subpart 4 of part I of title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070 et seq.), as added 
by section 4804, is further amended by adding at the end 
the following: 
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933 
‘‘SEC. 499U. UNMET NEED FOR STUDENTS. 
‘‘(a) IN GENERAL.— 
‘‘(1) GRANT PROGRAM.—Subject to paragraph 
(2), from amounts appropriated under subsection (f) 
for any fiscal year, the Secretary may award grants 
to eligible States and Indian tribes described in 
paragraph (3) to pay the Federal share of expendi-
tures needed to carry out the activities and services 
described in subsection (d). 
‘‘(2) LIMITATION.—The Secretary may not 
make grants under paragraph (1) in fiscal year un-
less— 
‘‘(A) all grants eligible to be made under 
subpart 1 have been made for such fiscal year; 
and 
‘‘(B) all grants eligible to be made under 
section 499T have been made for such fiscal 
year. 
‘‘(3) ELIGIBILITY.—A State or Indian tribe 
may only be eligible for a grant under this section 
in a fiscal year if such State or Indian tribe re-
ceived— 
‘‘(A) a grant under subpart 1 for such fis-
cal year; and 
‘‘(B) a grant under 499T for such fiscal 
year. 
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‘‘(b) FEDERAL SHARE; NON-FEDERAL SHARE.— 
‘‘(1) FEDERAL SHARE.— 
‘‘(A) FORMULA.—Subject to paragraph 
(2), the Federal share of a grant under this 
section shall be based on a formula, determined 
by the Secretary, that— 
‘‘(i) accounts for the State or Indian 
tribe’s share of eligible students; 
‘‘(ii) provides, for each eligible student 
in the State or Indian tribe, a per-student 
amount that is at least 75 percent of— 
‘‘(I) for the first award year for 
which grants are made under this sec-
tion, the average unmet need of eligi-
ble students in all States for the most 
recent year for which data are avail-
able; and 
‘‘(II) for each subsequent award 
year, the amount determined under 
this subparagraph for the preceding 
award year, increased by the lesser 
of— 
‘‘(aa) a percentage equal to 
the estimated percentage increase 
in the Consumer Price Index (as 
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935 
determined by the Secretary) 
since the date of such determina-
tion; or 
‘‘(bb) 3 percent. 
‘‘(B) EXCEPTION
FOR
CERTAIN
INDIAN 
TRIBES.—In any case in which not less than 75 
percent of the students at the institutions of 
higher education operated or controlled by an 
Indian tribe are low-income students, the 
amount of the Federal share for such Indian 
tribe shall be not less than 95 percent of the 
total amount needed to waive tuition and fees 
for all eligible students enrolled in such institu-
tions of higher education. 
‘‘(2) STATE OR TRIBAL SHARE.— 
‘‘(A) FORMULA.— 
‘‘(i) IN GENERAL.—The State or trib-
al share of a grant under this section for 
each fiscal year shall be the amount needed 
to pay 25 percent of the average unmet 
need of eligible students in all States in 
the first award year for which grants are 
made under this section for all eligible stu-
dents in the State or Indian tribe, respec-
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936 
tively, for such fiscal year, except as pro-
vided in clause (ii). 
‘‘(ii) EXCEPTION
FOR
CERTAIN
IN-
DIAN TRIBES.—In the case of an Indian 
tribe described in paragraph (1)(B), the 
amount of such Indian tribe’s tribal share 
shall not exceed 5 percent of the total 
amount needed to pay the average unmet 
need for all eligible students enrolled in the 
institutions of higher education described 
in such subparagraph. 
‘‘(B) NEED-BASED AID.—A State or In-
dian tribe may include, as part of the State or 
tribal share, any need-based financial aid 
that— 
‘‘(i) is provided from State or tribal 
funds to an eligible student; and 
‘‘(ii) may be used by such student to 
pay costs of attendance other than tuition 
and fees. 
‘‘(3) DETERMINING NUMBER OF ELIGIBLE STU-
DENTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
develop and implement a process for accurately 
estimating the number of eligible students in a 
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State or Indian tribe for purposes of para-
graphs (1) and (2). 
‘‘(B) INITIAL
DETERMINATION.—For the 
first year for which grants are awarded under 
this section, the number of eligible students in 
a State or Indian tribe shall be considered to be 
equal to the number of eligible students that 
were in the State or tribe for the preceding 
school year. 
‘‘(4) ADJUSTMENT OF GRANT AMOUNT.—Not 
later than 180 days after the date on which a State 
or Indian tribe receives a grant under this section, 
the Secretary shall— 
‘‘(A) in consultation with the State or tribe 
concerned, determine whether the actual num-
ber of eligible students in the State or Tribe for 
the year covered by the grant is greater than 
the estimated number of such students that was 
used to determine the amount of the grant; and 
‘‘(B) if it is determined under paragraph 
(1) that the actual number of eligible students 
in the State or Tribe is higher than such esti-
mate, issue a supplementary grant payment to 
the State or tribe in an amount that ensures 
that the total amount of the grant funds re-
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938 
ceived by the State or tribe under this section 
for the year covered by the grant accurately re-
flects the higher number of eligible students. 
‘‘(c) APPLICATIONS.—In order to receive a grant 
under this section, a State or tribe shall submit an appli-
cation to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require. 
‘‘(d) ALLOWABLE USES OF FUNDS.— 
‘‘(1) IN
GENERAL.—A State or Indian tribe 
shall use a grant under this section only to provide 
to each eligible student a grant that equals the 
unmet need of such recipient. 
‘‘(2) ANNUAL
REPORT.—A State or Indian 
tribe receiving a grant under this section shall sub-
mit an annual report to the Secretary describing the 
uses of grant funds under this section, the progress 
made in fulfilling the requirements of the grant, and 
rates of transfer, graduation, and attainment of rec-
ognized postsecondary credentials at institutions of 
higher education in the State or Indian tribe, includ-
ing such rates disaggregated by race, income, and 
age, and including any other information as the Sec-
retary may require. 
‘‘(3) REPORTING
BY
THE
SECRETARY.—The 
Secretary annually shall— 
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‘‘(A) compile and analyze the information 
described in paragraph (2); and 
‘‘(B) prepare and submit a report to the 
Committee on Health, Education, Labor, and 
Pensions of the Senate and the Committee on 
Education and Labor of the House of Rep-
resentatives containing the analysis described in 
subparagraph (A) and an identification of State 
and Indian tribe best practices for achieving the 
purpose of this section. 
‘‘(4) TECHNICAL ASSISTANCE.—The Secretary 
shall provide technical assistance to eligible States 
and Indian tribes concerning best practices regard-
ing the promising and evidence-based institutional 
reforms and innovative practices to improve student 
outcomes and shall disseminate such best practices 
among the States and Indian tribes. 
‘‘(5) CONTINUATION OF FUNDING.— 
‘‘(A) IN
GENERAL.—A State or Indian 
tribe receiving a grant under this section for a 
fiscal year may continue to receive funding 
under this section for future fiscal years condi-
tioned on the availability of budget authority 
and on meeting the requirements of the grant, 
as determined by the Secretary. 
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‘‘(B) DISCONTINUATION.—The Secretary 
may discontinue funding of the Federal share of 
a grant under this section if the State or Indian 
tribe has violated the terms of the grant. 
‘‘(6) SUPPLEMENT, NOT
SUPPLANT.—Funds 
made available under this section shall be used to 
supplement, and not supplant, other Federal, State, 
and local funds that would otherwise be expended to 
carry out activities under this section. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE STUDENT.— 
‘‘(A) DEFINITION.—The term ‘eligible stu-
dent’ means a student who— 
‘‘(i) attends a public institution of 
higher education on not less than a half- 
time basis; 
‘‘(ii) is not a recipient of a Federal 
Pell Grant under subpart 1 of part A of 
title IV of this Act; 
‘‘(iii) 
is 
maintaining 
satisfactory 
progress (as defined in section 484(c)) in 
the student’s course of study; 
‘‘(iv) is enrolled in an eligible program 
(as defined in section 481(b)); and 
‘‘(v) either— 
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‘‘(I) qualifies for in-State resi-
dent institution of higher education 
tuition, as determined by the State or 
Indian tribe; or 
‘‘(II) would qualify for such in- 
State tuition, but for the immigration 
status of such student. 
‘‘(B) SPECIAL RULE.—An otherwise eligi-
ble student shall lose eligibility under this sec-
tion— 
‘‘(i) after 3 years of receiving benefits 
under this section for enrollment at a com-
munity college (as defined in section 
499F); and 
‘‘(ii) after 6 years of receiving benefits 
under this section for enrollment in a 4- 
year institution of higher education. 
‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ 
has the meaning given the term in section 102 of the 
Federally Recognized Indian Tribe List Act of 1994 
(25 U.S.C. 479a). 
‘‘(3) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
meaning given the term in section 101. 
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‘‘(4) ADJUSTMENT OF GRANT AMOUNT.—Not 
later than 180 days after the date on which a State 
or Indian tribe receives a grant under this section, 
the Secretary shall— 
‘‘(A) in consultation with the State or tribe 
concerned, determine whether the actual num-
ber of eligible students in the State or Tribe for 
the year covered by the grant is greater than 
the estimated number of such students that was 
used to determine the amount of the grant; and 
‘‘(B) if it is determined under paragraph 
(1) that the actual number of eligible students 
in the State or Tribe is higher than such esti-
mate, issue a supplementary grant payment to 
the State or tribe in an amount that ensures 
that the total amount of the grant funds re-
ceived by the State or tribe under this section 
for the year covered by the grant accurately re-
flects the higher number of eligible students. 
‘‘(c) APPLICATIONS.—In order to receive a grant 
under this section, a State or tribe shall submit an appli-
cation to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require. 
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