I
107TH CONGRESS
1ST SESSION
H. R. 589
To provide for the full funding of the Pell Grant Program.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 13, 2001
Mrs. MINK of Hawaii introduced the following bill; which was referred to the
Committee on Education and the Workforce
A BILL
To provide for the full funding of the Pell Grant Program.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Pell Grant Full Fund-
ing Act’’.
SEC. 2. FULL FUNDING OF PELL GRANT AWARDS.
Subsection (g) of section 401 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070a(g) is amended to
read as follows:
‘‘(g) ADJUSTMENTS FOR INSUFFICIENT APPROPRIA-
TIONS.—
‘‘(1) FISCAL YEARS 2002 AND 2003.—(A) If, for
fiscal years 2002 and 2003, the funds appropriated
for payments under this subpart are insufficient to
satisfy fully all entitlements, as calculated under
subsection (b), the amount paid with respect to each
entitlement shall be—
‘‘(i) the full amount for any student whose
expected family contribution is $400 or less; or
‘‘(ii) a percentage of that entitlement, as
determined in accordance with a schedule of re-
ductions established by the Secretary for this
purpose, for any student whose expected family
contribution is more than $400.
‘‘(B) Any schedule established by the Secretary
for the purpose of subparagraph (A)(ii) of this sub-
section shall contain a single linear reduction for-
mula in which the percentage reduction increases
uniformly as the entitlement decreases, and shall
provide that if an entitlement is reduced to less than
$200, no payment shall be made.
‘‘(2) SUCCEEDING FISCAL YEARS.—(A) For fis-
cal year 2004 or any succeeding fiscal year, each in-
stitution of higher education which has an agree-
ment with the Secretary under subparagraph (C) of
this paragraph—
‘‘(i) shall make awards to its eligible stu-
dents in the full amount to which such student
is entitled under this subpart;
‘‘(ii) shall, except as provided in subpara-
graph (E), credit the amounts of such awards
toward the tuition, fees, room and board, and
other expenses incurred by the eligible student;
and
‘‘(iii) shall submit vouchers for reimburse-
ment of such awards at such time, in such
form, and containing or accompanied by such
information as the Secretary may require by
regulation.
‘‘(B) The Secretary shall reimburse each insti-
tution submitting a voucher under subparagraph
(A)(iii) for the full amount of the awards credited by
such institution to eligible students as required by
subparagraph (A)(ii).
‘‘(C) Each institution desiring to provide grants
under this subpart to its eligible students shall enter
into an agreement with the Secretary for purposes
of this subsection. Such agreement shall—
‘‘(i) specify the conditions with which the
institution shall comply to obtain reimburse-
ments under this subsection;
‘‘(ii) specify the obligations of the Sec-
retary with respect to such reimbursements;
and
‘‘(iii) contain such additional terms and
conditions as the Secretary may require by reg-
ulation.
‘‘(D) An institution which—
‘‘(i) has entered into an agreement with
the Secretary under subparagraph (C);
‘‘(ii) has awarded grants to eligible stu-
dents in accordance with this subpart; and
‘‘(iii) credited such awards in accordance
with subparagraph (A)(ii) of this subsection;
shall be deemed to have a contractual right against
the United States to receive reimbursement accord-
ing to the provisions of this subsection. Such reim-
bursements shall, for purposes of chapter 39 of title
31, United States Code, be considered to be pay-
ments made for the acquisition of services by con-
tract with the Department.
‘‘(E) In the case of a student who does not re-
side in institutionally owned or operated housing and
whose basic grant exceeds the amount of the tuition
and fees owed by that student, the institution shall
pay such excess to such student in accordance with