‘‘(E) Compensating part-time faculty for 
work done outside of the classroom relating to 
instruction, such as holding office hours. 
‘‘(F) Strengthening and ensuring all stu-
dents have access to student support services 
such as academic advising, counseling, and tu-
toring. 
‘‘(G) Expanding access to dual or concur-
rent enrollment programs and early college high 
school programs. 
‘‘(H) Establishing prison education pro-
grams in partnership with local or State correc-
tional facilities. 
‘‘(I) Any other additional activities that 
improve instructional quality and academic out-
comes for students as approved by the Sec-
retary through a peer review process. 
‘‘(3) PROHIBITION.—A State or eligible Indian 
entity that receives a grant under this section may 
not use grant funds or non-Federal share funds re-
quired under this section— 
‘‘(A) for the construction of a nonacademic 
facility, such as a student center or stadium; 
‘‘(B) for merit-based student financial aid; 
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‘‘(C) for need-based student financial aid 
(except to the extent funds available under sub-
section (c)(5) are used to carry out paragraph 
(2)(A)); 
‘‘(D) to pay the salaries or benefits of 
school administrators; 
‘‘(E) for capital outlays or deferred main-
tenance; or 
‘‘(F) for expenditures on athletics other 
than activities open to all members of the cam-
pus community. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated, and there are appropriated, to carry 
out this section— 
‘‘(A) such sums as may be necessary for 
the fourth quarter of fiscal year 2021; and 
‘‘(B) such sums as may be necessary for 
each of the fiscal years 2022 through 2030. 
‘‘(2) AVAILABILITY OF FUNDS.—Funds made 
available pursuant to paragraph (1)(A) shall be 
available for obligation from October 1, 2021 to Sep-
tember 30, 2022. Funds made available pursuant to 
subparagraph (B) or (C) of paragraph (1) shall be 
available for obligation through September 30 of the 
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fiscal year succeeding the fiscal year for which such 
sums were appropriated. 
‘‘SEC. 902. GRANT PROGRAM FOR PRIVATE HISTORICALLY 
BLACK COLLEGES AND UNIVERSITIES AND 
PRIVATE MINORITY-SERVING INSTITUTIONS. 
‘‘(a) DEFINITIONS.—Except as otherwise provided, in 
this section: 
‘‘(1) COMMUNITY COLLEGE.—The term ‘com-
munity college’ has the meaning given the term in 
section 901. 
‘‘(2) ELIGIBLE INSTITUTION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (D), the term ‘eligible institution’ 
means a private, nonprofit 2-year institution or 
4-year institution that— 
‘‘(i) is— 
‘‘(I) a part B institution (as de-
fined in section 322); 
‘‘(II) a Hispanic-serving institu-
tion (as defined in section 502); 
‘‘(III) a Tribal College or Univer-
sity (as defined in section 316) whose 
entity responsible for the governance, 
operation, or control of the College or 
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University has not received a grant 
under section 901; 
‘‘(IV) an Alaska Native-serving 
institution or a Native Hawaiian-serv-
ing institution (as defined in section 
317(b)); 
‘‘(V) a Predominantly Black in-
stitution 
(as 
defined 
in 
section 
371(c)); 
‘‘(VI) an Asian American and 
Native American Pacific Islander- 
serving institution (as defined in sec-
tion 371(c)); or 
‘‘(VII) a Native American-serving 
nontribal institution (as defined in 
section 371(c)); 
‘‘(ii) ensures that tuition and required 
fees for eligible students enrolled in the in-
stitution are eliminated during any period 
for which the institution receives a grant 
under this section; 
‘‘(iii) maintains expenditures on in-
struction per a full-time equivalent eligible 
student at levels that meet or exceed the 
expenditures on instruction per a full-time 
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equivalent eligible student for award year 
2019–2020; 
‘‘(iv) maintains expenditures on need- 
based financial aid programs for students 
enrolled at the institution at a level that 
meets or exceeds the level of such support 
for award year 2019–2020; 
‘‘(v) provides an assurance that the 
institution will increase the amount of in-
struction provided by tenured or tenure- 
track faculty; and 
‘‘(vi) does not adopt policies to reduce 
enrollment. 
‘‘(B) 2-YEAR INSTITUTION.—The term ‘2- 
year institution’ means an institution at which 
the credential that is predominantly awarded to 
students is at the sub-baccalaureate level. 
‘‘(C) 4-YEAR INSTITUTION.—The term ‘4- 
year institution’ means an institution that is 
not a 2-year institution. 
‘‘(D) EXCEPTION.— 
‘‘(i) IN GENERAL.—An eligible institu-
tion as described in subparagraph (A) shall 
not be an eligible institution for purposes 
of this section for the period described in 
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clause (ii) if such institution was a for- 
profit institution at any time that con-
verted to a nonprofit institution. 
‘‘(ii) PERIOD OF INELIGIBILITY.—An 
institution described under clause (i) shall 
not be an eligible institution for purposes 
of this section for a period of 25 years 
from the date the institution converted 
from a for-profit institution to a nonprofit 
institution or 25 years after the date of en-
actment of this Act, whichever period is 
longer. 
‘‘(3) ELIGIBLE STUDENT.— 
‘‘(A) IN GENERAL.—The term ‘eligible stu-
dent’ means a student enrolled in an eligible in-
stitution who has not obtained a baccalaureate 
degree or a higher degree and— 
‘‘(i) for the first award year of the 
program under this section, if the stu-
dent— 
‘‘(I) is a dependent student, the 
student’s parents’ adjusted gross in-
come for the taxable year that is 1 
year prior to the taxable year that 
ends immediately prior to the begin-
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ning of the award year is equal to or 
less than $125,000; or 
‘‘(II) is an independent student, 
the student’s adjusted gross income 
for the taxable year that is 1 year 
prior to the taxable year that ends im-
mediately prior to the beginning of 
the award year is equal to or less than 
$125,000; and 
‘‘(ii) for each award year after the 
first award year of the program under this 
section, if the student— 
‘‘(I) is a dependent student, the 
student’s parents’ adjusted gross in-
come for the taxable year that is 1 
year prior to the taxable year that 
ends immediately prior to the begin-
ning of the award year is equal to or 
less than the applicable amount; and 
‘‘(II) is an independent student, 
the student’s adjusted gross income 
for the taxable year that is 1 year 
prior to the taxable year that ends im-
mediately prior to the beginning of 
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the award year is equal to or less than 
the applicable amount. 
‘‘(B) APPLICABLE AMOUNT.— 
‘‘(i) IN GENERAL.—In this paragraph, 
the term ‘applicable amount’ means an 
amount equal to, for any award year be-
ginning after the calendar year that pre-
cedes the calendar year in which the first 
award year of the program under this sec-
tion begins, the greater of— 
‘‘(I) 
the 
amount 
determined 
under this subparagraph for the pre-
ceding award year, or 
‘‘(II) an amount equal to the 
product of— 
‘‘(aa) $125,000, and 
‘‘(bb) the ratio of— 
‘‘(AA) the national av-
erage wage index (as defined 
in section 209(k)(1) of the 
Social 
Security 
Act 
(42 
U.S.C. 409(k)(1))) for the 
calendar year preceding the 
calendar year in which the 
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applicable award year be-
gins, to 
‘‘(BB) the national av-
erage wage index (as so de-
fined) for 2020. 
‘‘(ii) ROUNDED.—If any amount de-
termined under clause (i) is not a multiple 
of $100, such amount shall be rounded to 
the nearest multiple of $100. 
‘‘(4) FULL-TIME EQUIVALENT ELIGIBLE STU-
DENTS.—The term ‘full-time equivalent eligible stu-
dents’ means the sum of the number of eligible stu-
dents projected to enroll full time at an institution 
for an award year, plus the full-time equivalent of 
the number of eligible students projected to be en-
rolled part time (determined on the basis of the 
quotient of the sum of the credit hours of all part- 
time eligible students divided by 12) at such institu-
tion, for such award year. 
‘‘(5) PUBLIC 4-YEAR INSTITUTION OF HIGHER 
EDUCATION.—The term ‘public 4-year institution of 
higher education’ has the meaning given the term in 
section 901. 
‘‘(b) AUTHORIZATION OF GRANT PROGRAM.— 
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‘‘(1) IN
GENERAL.—From amounts appro-
priated under subsection (e), the Secretary shall 
award grants, from allotments under paragraph (2), 
to eligible institutions having applications approved 
under subsection (c), to enable the eligible institu-
tions to eliminate tuition and required fees for eligi-
ble students. 
‘‘(2) ALLOTMENTS.—Subject to paragraph (3), 
the Secretary shall allot, for each award year, to 
each eligible institution having an application ap-
proved under subsection (c), an amount that is equal 
to the product of— 
‘‘(A) tuition and required fees for eligible 
students at the eligible institution for the award 
year, and 
‘‘(B) the number of full-time equivalent eli-
gible students projected to enroll in the eligible 
institution for the award year. 
‘‘(3) LIMITATIONS.— 
‘‘(A) LIMITATIONS ON INSTITUTIONAL AL-
LOTMENTS.—In making allotments under para-
graph (2) for an award year, the Secretary 
shall not award an allotment that is— 
‘‘(i) with respect to an eligible institu-
tion that operates in a State that has 
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eliminated tuition and required fees as de-
scribed in paragraphs (2) and (3) of sec-
tion 901(d) for the preceding award year, 
more than the amount equal to the product 
of— 
‘‘(I) the number of projected full- 
time equivalent eligible students for 
the award year; and 
‘‘(II) the expenditures per full- 
time equivalent eligible student, in-
cluding the Federal allotment and 
non-Federal share, under section 901 
for the preceding award year for the 
State (or, in the case of a State that 
did not receive a grant under such 
section for the preceding award year, 
the amount needed to eliminate tui-
tion and required fees for full-time 
equivalent eligible students in the 
State, calculated in the same manner 
as such amount is calculated under 
section 901(c) for the preceding 
award year for the State), at— 
‘‘(aa) if the eligible institu-
tion is a 2-year institution, com-
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munity colleges in the State in 
which the institution operates; or 
‘‘(bb) if the eligible institu-
tion is a 4-year institution, public 
4-year institutions of higher edu-
cation in the State in which the 
institution operates; and 
‘‘(ii) with respect to an eligible insti-
tution that operates in a State that has 
not eliminated tuition and required fees as 
described in paragraphs (2) and (3) of sec-
tion 901(d) for the preceding award year, 
more than the amount equal to the product 
of— 
‘‘(I) the number of projected full- 
time equivalent eligible students for 
the award year; and 
‘‘(II) the average tuition and re-
quired fees for the preceding award 
year at— 
‘‘(aa) if the eligible institu-
tion is a 2-year institution, public 
2-year institutions of higher edu-
cation in the State in which the 
institution operates; or 
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‘‘(bb) if the eligible institu-
tion is a 4-year institution, public 
4-year institutions of higher edu-
cation in the State in which the 
institution operates. 
‘‘(B) LIMITATIONS ON TUITION HIKES.— 
‘‘(i) FIRST
AWARD
YEAR.—For the 
first award year for which an eligible insti-
tution applies for a grant under this sec-
tion, such eligible institution shall not in-
crease tuition and required fees at a rate 
that is greater than any annual increase in 
tuition and required fees at the eligible in-
stitution for the 5 years preceding such 
first award year. 
‘‘(ii) SUCCEEDING AWARD YEARS.— 
‘‘(I) IN
GENERAL.—For each 
award year after the first award year 
for which an eligible institution re-
ceives a grant under this section, such 
eligible institution shall not increase 
tuition and required fees for eligible 
students from the preceding award 
year at a rate that is greater than the 
percentage increase in the Employ-
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ment Cost Index for the award year 
for which the grant is received, as 
compared to the Employment Cost 
Index for the award year preceding 
the award year for which the grant is 
received. 
‘‘(II) 
EMPLOYMENT
COST 
INDEX.—In this subparagraph, the 
term ‘Employment Cost Index’, when 
used with respect to an award year, 
means the Employment Cost Index 
for total compensation for private in-
dustry workers by bargaining status 
and census region and division (not 
seasonally adjusted) of the division in 
which the eligible entity is located, as 
provided by the Bureau of Labor Sta-
tistics of the Department of Labor, 
that is provided for the December 
that immediately precedes the start of 
the award year. 
‘‘(4) ACTUAL ENROLLMENT FIGURES.— 
‘‘(A) IN GENERAL.—By not later than No-
vember 1 of the second award year for which an 
eligible institution receives a grant under this 
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section, such eligible institution shall report to 
the Secretary its actual full-time equivalent eli-
gible students figure for the preceding award 
year. 
‘‘(B) ADJUSTMENTS.—If the actual full- 
time equivalent eligible students figure for the 
preceding award year reported under subpara-
graph (A)— 
‘‘(i) exceeds the projected enrollment 
that was used for determining the allot-
ment under subparagraph (2)(B) for the 
preceding award year, notwithstanding any 
other provision of this Act, the allotment 
for the award year in which the November 
1 date falls for the eligible institution shall 
be increased to reflect such actual enroll-
ment, which figure shall be increased by 
the Gross Domestic Product Price Index of 
the State in which the eligible institution 
operates; or 
‘‘(ii) is below the projected enrollment 
that was used for determining the allot-
ment under subparagraph (2)(B) for the 
preceding award year, notwithstanding any 
other provision of this Act, the allotment 
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for the award year in which the November 
1 date falls for the eligible institution shall 
be decreased to reflect such actual enroll-
ment, which figure shall be increased by 
the average interest rate on 5-year United 
States Treasury securities issued during 
the preceding award year. 
‘‘(c) APPLICATION.—An eligible institution that de-
sires to receive a grant under this section shall submit to 
the Secretary an application at such time, in such manner, 
and containing such information as the Secretary may re-
quire. 
‘‘(d) PROHIBITION.—An eligible institution that re-
ceives a grant under this section may not use grant funds 
under this section— 
‘‘(1) for the construction of a nonacademic fa-
cility, such as a student center or stadium; 
‘‘(2) for merit-based or need-based student fi-
nancial aid; 
‘‘(3) to pay the salaries or benefits of school ad-
ministrators; 
‘‘(4) for capital outlays or deferred mainte-
nance; or 
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‘‘(5) for expenditures on athletics other than 
activities open to all members of the campus com-
munity. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated, and there are appro-
priated, to carry out this section— 
‘‘(1) such sums as may be necessary for the 
fourth quarter of fiscal year 2021; and 
‘‘(2) such sums as may be necessary for each 
of the fiscal years 2022 through 2031.’’. 
TITLE II—FEDERAL PELL GRANT 
IMPROVEMENTS 
SEC. 201. FEDERAL PELL GRANT IMPROVEMENTS. 
(a) MANDATORY FUNDING.—Section 401 of the 
Higher Education Act of 1965 (20 U.S.C. 1070a) is 
amended— 
(1) in subsection (a)(1), by striking ‘‘through 
fiscal year 2017’’; 
(2) in subsection (b)— 
(A) by striking paragraph (1); 
(B) by striking subparagraph (A) of para-
graph (2); 
(C) by redesignating subparagraph (B) of 
paragraph (2) as paragraph (2); 
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(D) by inserting before paragraph (2) (as 
redesignated by subparagraph (C)) the fol-
lowing: 
‘‘(1) AMOUNT.—The amount of the Federal Pell 
Grant for a student eligible under this subpart shall be— 
‘‘(A) the maximum Federal Pell Grant de-
scribed in paragraph (7); less 
‘‘(B) the amount equal to the amount deter-
mined to be the expected family contribution with 
respect to such student for such year.’’; 
(E) in paragraph (4), by striking ‘‘max-
imum amount of a Federal Pell Grant award 
determined under paragraph (2)(A)’’ and in-
serting ‘‘maximum Federal Pell Grant described 
in paragraph (7)’’; 
(F) in paragraph (5), by striking ‘‘max-
imum amount of a Federal Pell Grant award 
determined under paragraph (2)(A)’’ and in-
serting ‘‘maximum amount of a Federal Pell 
Grant award described in paragraph (7)’’; 
(G) by striking paragraph (7) and insert-
ing the following: 
‘‘(7) MAXIMUM FEDERAL PELL GRANT.— 
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‘‘(A) AWARD YEAR 2021–2022.—For award 
year 2021–2022, the maximum Federal Pell 
Grant shall be— 
‘‘(i) in the case of an eligible student 
who is in attendance at an institution of 
higher education described in section 101 
or a Tribal College or University described 
in section 316(b)(3), $12,990; or 
‘‘(ii) in the case of an eligible student 
who is in attendance at an institution of 
higher education not described in clause 
(i), $6,495. 
‘‘(B) SUBSEQUENT
AWARD
YEAR.—For 
award year 2022–2023, the maximum Federal 
Pell Grant shall be equal to the total maximum 
Federal Pell Grant for award year 2021–2022 
(applicable to the institution at which the eligi-
ble student is in attendance) under this para-
graph— 
‘‘(i) increased by the annual adjust-
ment percentage for the award year for 
which the amount under this subparagraph 
is being determined; and 
‘‘(ii) rounded to the nearest $5. 
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‘‘(C) DEFINITION
OF
ANNUAL
ADJUST-
MENT
PERCENTAGE.—In this paragraph, the 
term ‘annual adjustment percentage,’ as applied 
to an award year, is equal to the estimated per-
centage increase in the Consumer Price Index 
(as determined by the Secretary, using the defi-
nition in section 478(f)) for the most recent cal-
endar year ending prior to the beginning of that 
award year.’’; and 
(H) in paragraph (8)(B), by striking ‘‘may 
exceed’’ and all that follows through the period 
and inserting ‘‘may exceed the maximum Fed-
eral Pell Grant available for an award year.’’; 
(3) in subsection (c)(5)— 
(A) by striking ‘‘shall not exceed 12 semes-
ters, or the equivalent of 12 semesters, as de-
termined by the Secretary by regulation’’ and 
inserting ‘‘shall not exceed 7 years and 6 
months’’; and 
(B) by striking ‘‘only that same fraction of 
such semester or equivalent’’ and inserting 
‘‘only that same fraction of such year’’; 
(4) in subsection (e), by striking ‘‘Any disburse-
ment allowed to be made by crediting the student’s 
account shall be limited to tuition and fees and, in 
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the case of institutionally owned housing, room and 
board. The student may elect to have the institution 
provide other such goods and services by crediting 
the student’s account.’’ and inserting ‘‘Payments 
under this section may be used by the student for 
living and non-tuition expenses.’’; 
(5) in subsection (f)— 
(A) in paragraph (1), by striking the mat-
ter preceding subparagraph (A) and inserting 
the following: ‘‘After receiving an application 
for a Federal Pell Grant under this subpart, the 
Secretary (including any contractor of the Sec-
retary processing applications for Federal Pell 
Grants under this subpart) shall, in a timely 
manner, furnish to the student financial aid ad-
ministrator at each institution of higher edu-
cation that a student awarded a Federal Pell 
Grant under this subpart is attending, the ex-
pected family contribution for each such stu-
dent. Each such student financial administrator 
shall—’’; and 
(B) in paragraph (3)— 
(i) by striking ‘‘after academic year 
1986–1987’’; and 
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(ii) in paragraph (3), by striking ‘‘the 
Committee on Appropriations of the Sen-
ate, the Committee on Appropriations of 
the House of Representatives, and’’; 
(6) by striking subsections (g) and (h); 
(7) by redesignating subsections (i) and (j) as 
subsections (g) and (h), respectively; and 
(8) by adding at the end the following: 
‘‘(k) APPROPRIATION OF FUNDS.—There are author-
ized to be appropriated, and there are appropriated, out 
of any money in the Treasury not otherwise appropriated, 
such sums as may be necessary for fiscal year 2021 and 
each subsequent fiscal year to provide the maximum Fed-
eral Pell Grant for which a student shall be eligible under 
this section during an award year.’’. 
(b) REPEAL OF SCORING REQUIREMENT.—Section 
406 of H. Con. Res. 95 (109th Congress) is amended— 
(1) by striking subsection (b); and 
(2) by striking ‘‘(a) IN GENERAL.—Upon’’ and 
inserting the following: ‘‘Upon’’. 
(c) AMENDMENT TO THE FAFSA SIMPLIFICATION 
ACT.— 
(1) IN GENERAL.—Section 401 of the Higher 
Education Act of 1965, as amended by section 703 
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of the FAFSA Simplification Act (title VII of divi-
sion FF of Public Law 116–260), is amended— 
(A) in subsection (b), by striking para-
graphs (5), (6), and (7) and inserting the fol-
lowing: 
‘‘(5) MAXIMUM FEDERAL PELL GRANT.— 
‘‘(A) IN GENERAL.—For award year 2023– 
2024, and each subsequent award year, the 
total maximum Federal Pell Grant shall be 
equal to the total maximum Federal Pell Grant 
for the preceding award year (applicable to the 
institution at which the eligible student is in at-
tendance)— 
‘‘(i) increased by the annual adjust-
ment percentage for the award year for 
which the amount under this subparagraph 
is being determined; and 
‘‘(ii) rounded to the nearest $5. 
‘‘(B) DEFINITION
OF
ANNUAL
ADJUST-
MENT
PERCENTAGE.—In this paragraph, the 
term ‘annual adjustment percentage,’ as applied 
to an award year, is equal to the estimated per-
centage increase in the Consumer Price Index 
(as determined by the Secretary, using the defi-
nition in section 478(f)) for the most recent cal-
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endar year ending prior to the beginning of that 
award year. 
‘‘(6) APPROPRIATION
OF
FUNDS.—There are 
authorized to be appropriated, and there are appro-
priated, out of any money in the Treasury not other-
wise appropriated, such sums as may be necessary 
for fiscal year 2023 and each subsequent fiscal year 
to provide the maximum Federal Pell Grant for 
which a student shall be eligible under this section 
during an award year. 
‘‘(7) NO
EFFECT
ON
PREVIOUS
APPROPRIA-
TIONS.—The amendments made to this section by 
the FAFSA Simplification Act shall not— 
‘‘(A) increase or decrease the amounts that 
have been appropriated or are available to carry 
out this section for fiscal year 2017, 2018, 
2019, 2020, 2021, or 2022 as of the day before 
the effective date of such Act; or 
‘‘(B) extend the period of availability for 
obligation that applied to any such amount, as 
of the day before such effective date.’’; 
(B) in subsection (d)(5)(A), by striking 
‘‘shall not exceed 12 semesters, or the equiva-
lent of 12 semesters, as determined by the Sec-
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retary by regulation’’ and inserting ‘‘shall not 
exceed 7 years and 6 months’’; 
(C) in subsection (f), by striking ‘‘Any dis-
bursement allowed to be made by crediting the 
student’s account shall be limited to tuition and 
fees, and food and housing if that food and 
housing is institutionally owned or operated. 
The student may elect to have the institution 
provide other such goods and services by cred-
iting the student’s account.’’ and inserting 
‘‘Payments under this section may be used by 
the student for living and non-tuition ex-
penses.’’; 
(D) by striking subsections (g) and (h); 
and 
(E) by redesignating subsections (i) and (j) 
as subsections (g) and (h), respectively. 
(2) EFFECTIVE DATE.—The amendments made 
by paragraph (1) shall take effect as if included in 
section 703 of the FAFSA Simplification Act (title 
VII of division FF of Public Law 116–260) and sub-
ject to the effective date of section 701(b) of such 
Act. 
(d) FEDERAL
PELL
GRANT
ELIGIBILITY
FOR 
DREAMER STUDENTS.— 
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