892 
(1) in subsection (a)(2), by striking subpara-
graph (A) and inserting the following: 
‘‘(A) institutions with an adjusted cohort 
default rate for loans under part D in excess of 
18 percent or which places such institutions in 
the highest 25 percent of such institutions;’’; 
(2) by redesignating subsections (c) through (e) 
as subsections (d) through (f), respectively; and 
(3) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) UNDERCOVER OPERATIONS.—In carrying out 
paragraphs (1) and (2) of subsection (a) and any other rel-
evant provisions of this subpart, the Secretary— 
‘‘(1) shall conduct undercover and secret shopper 
operations for the purpose of encouraging the ethical 
treatment of students and prospective students and 
detecting fraud and abuse in the Federal student aid 
programs, including— 
‘‘(A) 
violations 
described 
in 
section 
487(c)(3); 
‘‘(B) violations of section 487(a)(20); and 
‘‘(C) violations by any entity with which 
the institution has contracted for student recruit-
ment or admission activity; 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00892
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
893 
‘‘(2) shall develop written guidelines for the con-
duct of activities under paragraph (1) in accordance 
with commonly-accepted Federal practices for under-
cover operations and in consultation with other rel-
evant agencies, including the Department of Justice, 
Federal Trade Commission, Consumer Financial Pro-
tection Bureau, and the Department of Education’s 
Office of Inspector General; and 
‘‘(3) shall provide an annual report on the re-
sults of activities under paragraph (1) to the author-
izing committees, and thereafter shall make the report 
available to the public.’’. 
Subpart 4—Strengthening Institutional Quality 
SEC. 4731. STRENGTHENING INSTITUTIONAL QUALITY. 
Part H of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1099a et seq.) is amended by adding at the end 
the following: 
‘‘Subpart 4—Strengthening Institutional Quality 
‘‘SEC. 498C. ASSISTANCE TO PROGRESS PERIOD INSTITU-
TIONS. 
‘‘(a) IN GENERAL.—The Secretary shall provide grants 
and technical assistance to covered progress period institu-
tions in accordance with this section. 
‘‘(b) AUTHORIZED ACTIVITIES.—Grants and assist-
ance provided under this section shall be used to improve 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00893
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
894 
student achievement (as described in section 496(a)(5)(A)) 
at covered progress period institutions. 
‘‘(c) DURATION.—Grants and assistance may be pro-
vided under this section for a period of not less than one 
year and not more than three years. 
‘‘(d) CONDITIONS.— 
‘‘(1) BENCHMARKS.— 
‘‘(A) IN GENERAL.—To continue to receive 
support under this section after the first year in 
which such support is provided, an institution 
must show progress, as determined by the Sec-
retary, toward meeting the standards for student 
achievement established by the relevant accred-
iting agency or association pursuant to section 
496(a)(5)(A). 
‘‘(B) 
CONSIDERATIONS.—In 
determining 
the progress of an institution under subpara-
graph (A), the Secretary may take into consider-
ation extenuating circumstances that may have 
contributed to the poor performance of the insti-
tution in the first year of the review period. 
‘‘(2) DEADLINE FOR COMPLIANCE.—An institu-
tion that does not achieve an adjusted cohort default 
rate of less than 10 percent after receiving support 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00894
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
895 
under this section for three consecutive years shall be 
ineligible to receive further support under this section. 
‘‘(3) PROHIBITION.—An institution shall be in-
eligible to receive further support under this section if, 
while the institution was receiving such support, the 
total enrollment of low-income students (as such term 
is defined in section 419N(b)(7)) at the institution de-
creased by 10 percent or more. 
‘‘(e) COVERED PROGRESS PERIOD INSTITUTION.—In 
this section, the term ‘covered progress period institution’ 
means— 
‘‘(1) a public institution of higher education that 
is determined to be in progress period status; 
‘‘(2) a part B institution (as defined in section 
322) that is determined to be in progress period sta-
tus; or 
‘‘(3) a private, nonprofit institution of higher 
education— 
‘‘(A) that is determined to be in progress 
period status; and 
‘‘(B) at which not less than 45 percent of 
the total student enrollment consists of low-in-
come students (as such term is defined in section 
419N(b)(7)). 
‘‘(f) FUNDING.— 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00895
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
896 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated, and there are appropriated, such funds 
as the Secretary, using the formula described in para-
graph (2), determines necessary to meet the needs of 
all eligible institutions under this subsection, except 
that such funds shall not exceed $100,000,000 for fis-
cal year 2021 and each succeeding fiscal year. Such 
funds shall be available until expended. 
‘‘(2) FORMULA.—Not later than 1 year after the 
date of the enactment of this section, the Secretary 
shall establish through negotiated rulemaking a for-
mula to determine the— 
‘‘(A) proportional amount of institutional 
need under this section; and 
‘‘(B) total amount of institutional need 
under this section. 
‘‘(3) SPECIAL
RULE.—Such formula must at 
minimum take into consideration the severity of the 
problem, size of the institution, institutional re-
sources, historical underfunding, and the number of 
low-income students (as such term is defined in sec-
tion 419N(b)(7)) being served. 
‘‘SEC. 498D. RESTRICTIONS ON CERTAIN EXPENDITURES. 
‘‘(a) ESTABLISHING DEFINITIONS.— 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00896
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
897 
‘‘(1) IN GENERAL.—For purposes of each survey 
conducted under the Integrated Postsecondary Edu-
cation Data System after the date of enactment of the 
College Affordability Act and this Act, the Secretary 
shall define the following terms: 
‘‘(A) Marketing. 
‘‘(B) Recruitment. 
‘‘(C) Advertising. 
‘‘(D) Lobbying. 
‘‘(E) Student services. 
‘‘(2) EXCLUSION
OF
CERTAIN
ACTIVITIES.—In 
defining the term ‘student services’ under paragraph 
(1)(E), the Secretary shall ensure that such term does 
not include marketing, recruitment, advertising, or 
lobbying. 
‘‘(b) LIMITATION ON EXPENDITURES.—In a case in 
which the Secretary determines with respect to an institu-
tion of higher education participating in any program 
under this title that, for any of the 3 most recent institu-
tional fiscal years after the promulgation of regulations by 
the Secretary defining the terms in subsection (a)(1) for 
which the institution submits to the Secretary disclosures 
on the expenditures of the institution on instruction for 
purposes of section 132(i)(1)(AA), the amount expended by 
such institution on instruction for such fiscal year is less 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00897
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
898 
than an amount equal to 1⁄3 of institution’s revenues de-
rived from tuition and fees— 
‘‘(1) for any institutional fiscal year after such 
determination is made, the sum of the amount ex-
pended by the institution on marketing, recruitment, 
advertising, and lobbying may not exceed the amount 
of the institution’s revenues derived from sources other 
than Federal education assistance funds; and 
‘‘(2) in a case in which the institution fails to 
meet the requirements of paragraph (1) for 2 consecu-
tive institutional fiscal years, the institution shall be 
ineligible to participate in the programs authorized 
by this title for a period of not less than two institu-
tional fiscal years. 
‘‘(c) PUBLICATION ON WEBSITE.—The Secretary shall, 
on an annual basis, publicly disclose on the Department’s 
website, information with respect to any institution of high-
er education that is subject to the requirements of subsection 
(b)(1), including— 
‘‘(1) the quotient of the amount that the institu-
tion expends on instruction divided by the institu-
tion’s revenues derived from tuition and fees, ex-
pressed as a percentage; 
‘‘(2) the sum of such institution’s expenditures 
on advertising, recruiting, marketing, and lobbying; 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00898
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
899 
‘‘(3) the amount of such institution’s revenues re-
ceived from sources outside of Federal education as-
sistance funds; and 
‘‘(4) the difference between paragraphs (2) and 
(3). 
‘‘SEC. 498E. INSTITUTIONAL DISCLOSURE SYSTEM. 
‘‘(a) DEPARTMENTAL DISCLOSURE.—The Secretary 
shall make available, on a publicly accessible website of the 
Department of Education, a list of institutions of higher 
education that— 
‘‘(1) have failed to meet the requirements for ac-
creditation by an agency or association recognized by 
the Secretary pursuant to section 496(a); or 
‘‘(2) have failed to meet the requirements for 
participation in programs under this title. 
‘‘(b) INSTITUTIONAL DISCLOSURE.— 
‘‘(1) IN GENERAL.—To be eligible to participate 
in programs under this title, an institution of higher 
education shall, using the template developed by the 
Secretary under subsection (c), disclose the accredita-
tion status of the institution on a publicly accessible 
website of the institution. 
‘‘(2) UPDATES.—Any change in the accredita-
tion status of an institution of higher education shall 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00899
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
900 
be disclosed in accordance with paragraph (1) not 
later than 30 days after such change occurs. 
‘‘(c) TEMPLATE.—The Secretary shall develop a tem-
plate that shall be used by institutions of higher education 
to make the disclosures required under subsection (b). The 
Secretary shall ensure that the template— 
‘‘(1) clearly identifies the information to be dis-
closed; and 
‘‘(2) is in a format that is easily understood by 
consumers.’’. 
PART I—AMERICA’S COLLEGE PROMISE FEDERAL- 
STATE PARTNERSHIP 
SEC. 4801. PROGRAM AUTHORIZED. 
Title IV of the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.) is amended by adding at the end the 
following: 
‘‘PART J—AMERICA’S COLLEGE PROMISE 
FEDERAL-STATE PARTNERSHIP 
‘‘Subpart 1—State and Indian Tribe Grants for 
Community Colleges 
‘‘SEC. 499A. IN GENERAL. 
‘‘From amounts appropriated under section 499G for 
any fiscal year, the Secretary shall award grants to eligible 
States and Indian tribes to pay the Federal share of expend-
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00900
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
901 
itures needed to carry out the activities and services de-
scribed in section 499E. 
‘‘SEC. 499B. FEDERAL SHARE; NON-FEDERAL SHARE. 
‘‘(a) FEDERAL SHARE.— 
‘‘(1) FORMULA.—Subject to paragraph (2), the 
Federal share of a grant under this subpart shall be 
based on a formula, determined by the Secretary, 
that— 
‘‘(A) accounts for the State or Indian tribe’s 
share of eligible students; 
‘‘(B) accounts for the ratio between a State 
or Indian tribe’s funding per full-time equivalent 
(FTE) student at public colleges and universities 
and the average net price at State public four- 
year colleges and universities, in such a way as 
to reward States that keep net prices for students 
low while maintaining their investment in high-
er education; and 
‘‘(C) 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 2021–2022 award year, the 
average resident community college tuition 
and fees per student in all States for the 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00901
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
902 
most recent year for which data are avail-
able; and 
‘‘(ii) for each subsequent award year, 
the amount determined under this subpara-
graph for the preceding award year, in-
creased by the lesser of— 
‘‘(I) a percentage equal to the esti-
mated percentage increase in the Con-
sumer Price Index (as determined by 
the Secretary) since the date of such 
determination; or 
‘‘(II) 3 percent. 
‘‘(2) EXCEPTION FOR CERTAIN INDIAN TRIBES.— 
In any case in which not less than 75 percent of the 
students at the community colleges operated or con-
trolled 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 stu-
dents enrolled in such community colleges. 
‘‘(b) STATE OR TRIBAL SHARE.— 
‘‘(1) FORMULA.— 
‘‘(A) IN
GENERAL.—The State or tribal 
share of a grant under this subpart for each fis-
cal year shall be the amount needed to pay 25 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00902
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
903 
percent of the average community college resident 
tuition and fees per student in all States in the 
2021–2022 award year for all eligible students 
in the State or Indian tribe, respectively, for 
such fiscal year, except as provided in subpara-
graph (B). 
‘‘(B) EXCEPTION
FOR
CERTAIN
INDIAN 
TRIBES.—In the case of an Indian tribe de-
scribed in subsection (a)(2), the amount of such 
Indian tribe’s tribal share shall not exceed 5 per-
cent of the total amount needed to waive tuition 
and fees for all eligible students enrolled in such 
community colleges. 
‘‘(2) NEED-BASED AID.—A State or Indian tribe 
may include, as part of the State or tribal share, any 
need-based financial aid that— 
‘‘(A) is provided from State or tribal funds 
to an eligible student; and 
‘‘(B) may be used by such student to pay 
costs of attendance other than tuition and fees. 
‘‘(3) NO IN-KIND CONTRIBUTIONS.—A State or 
Indian tribe shall not include in-kind contributions 
for purposes of the State or tribal share described in 
paragraph (1). 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00903
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
904 
‘‘(c) DETERMINING
NUMBER
OF
ELIGIBLE
STU-
DENTS.— 
‘‘(1) IN GENERAL.—The Secretary of Education 
shall develop and implement a process for accurately 
estimating the number of eligible students in a State 
or Indian tribe for purposes of subsection (a) and (b). 
‘‘(2) INITIAL
DETERMINATION.—For the first 
year for which grants are awarded under this sub-
part, the number of eligible students in a State or In-
dian tribe shall be considered to be equal to the num-
ber of eligible students that were in the State or tribe 
for the preceding school year. 
‘‘(d) ADJUSTMENT
OF GRANT AMOUNT.—Not later 
than 180 days after the date on which a State or Indian 
tribe receives a grant under this subpart, the Secretary 
shall— 
‘‘(1) in consultation with the State or tribe con-
cerned, determine whether the actual number of eligi-
ble 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 
‘‘(2) if it is determined under paragraph (1) 
that the actual number of eligible students in the 
State or Tribe is higher than such estimate, issue a 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00904
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
905 
supplementary grant payment to the State or tribe in 
an amount that ensures that the total amount of the 
grant funds received by the State or tribe under this 
subpart for the year covered by the grant accurately 
reflects the higher number of eligible students. 
‘‘SEC. 499C. APPLICATIONS. 
‘‘(a) SUBMISSION.—In order to receive a grant under 
this subpart, a State or tribe shall submit an application 
to the Secretary at such time, in such manner, and con-
taining such information as the Secretary may require. 
‘‘(b) CONTENTS.—Each application under subsection 
(a) shall include, at a minimum— 
‘‘(1) an estimate of the number of eligible stu-
dents in the State or Indian tribe and the cost of 
waiving community college resident tuition and fees 
for all eligible students for each fiscal year covered by 
the grant; 
‘‘(2) an assurance that all community colleges in 
the State or under the jurisdiction of the Indian tribe, 
respectively, will waive resident tuition and fees for 
eligible students in accordance with section 499D(a); 
‘‘(3) a description of the promising and evidence- 
based institutional reforms and innovative practices 
to improve student outcomes, including transfer and 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00905
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
906 
completion rates, that have been or will be adopted by 
the participating community colleges, 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 underrepresented in higher education; 
‘‘(B) the provision of direct support services 
such as— 
‘‘(i) childcare, transportation, emer-
gency financial assistance, and mental 
health and substance use disorder treatment; 
‘‘(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 partici-
pation in means-tested Federal benefit pro-
grams (as defined in section 479(d)); 
‘‘(C) providing accelerated learning oppor-
tunities, such as dual or concurrent enrollment 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00906
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
907 
programs, including early college high school 
programs; 
‘‘(D) strengthening and reforming remedial 
and developmental education, especially for low- 
income, first-generation, and adult students, and 
other students belonging to racial and other 
groups that are underrepresented in higher edu-
cation, including through the use of multiple 
measures (such as a student’s college entrance ex-
amination score, grade point average, high school 
course list, or a placement examination) to iden-
tify students in need of remedial education; or 
‘‘(E) utilizing career pathways, including 
through building capacity for career and tech-
nical education as defined in section 3(5) of the 
Carl D. Perkins Career and Technical Education 
Act of 2006 (20 U.S.C. 2302(5)) and programs 
of study as defined in section 3(41) of such Act 
(20 U.S.C. 2302(41)), or degree pathways; 
‘‘(4) a description of how the State or Indian 
tribe will ensure that programs leading to a recog-
nized postsecondary credential meet the quality cri-
teria established by the State under section 123(a) of 
the Workforce Innovation and Opportunity Act (29 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00907
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
908 
U.S.C. 3153(a)) or other quality criteria determined 
appropriate by the State or Indian tribe; 
‘‘(5) an assurance that all participating commu-
nity colleges in the State or under the authority of the 
Indian tribe have entered into program participation 
agreements under section 487; 
‘‘(6) an assurance that the State or Indian tribe 
will, to the extent practicable, assist eligible students 
in obtaining information about and accessing means- 
tested Federal benefit programs (as defined in section 
479(d)) for which such students may be eligible; 
‘‘(7) an assurance that, for each year of the 
grant, the State or Indian tribe will notify each eligi-
ble student of the student’s remaining eligibility for 
assistance under this subpart; and 
‘‘(8) if the application is submitted by a State— 
‘‘(A) an assurance that the State will, to the 
extent practicable, consider changes to State law 
that will enable more community college students 
to be eligible for means-tested Federal benefit 
programs (as defined in section 479(d)); 
‘‘(B) an assurance that the State will meet 
the requirements of section 499D(b)(1) relating 
to the alignment of secondary and postsecondary 
education; and 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00908
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
909 
‘‘(C) an assurance that the State will meet 
the requirements of section 499D(b)(2) relating 
to the improvement of transfer pathways between 
institutions of higher education. 
‘‘SEC. 499D. PROGRAM REQUIREMENTS. 
‘‘(a) GENERAL REQUIREMENTS FOR STATES AND IN-
DIAN TRIBES.—As a condition of receiving a grant under 
this subpart a State or Indian tribe shall meet the following 
requirements: 
‘‘(1) For each year of the grant the total amount 
of community college resident tuition and fees charged 
to an eligible student in the State or Indian tribe 
shall be $0. 
‘‘(2) For each year of the grant no amount of fi-
nancial assistance for which an eligible student quali-
fies may be applied to such tuition or fees. 
‘‘(b) STATE REQUIREMENTS.—As a condition of re-
ceiving a grant under this subpart a State shall meet the 
following requirements: 
‘‘(1) ALIGNMENT
OF
K–12
AND
HIGHER
EDU-
CATION.— 
‘‘(A) IN GENERAL.—The State shall— 
‘‘(i) submit a plan to align the require-
ments for receiving a regular high school di-
ploma from public high schools in the State 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00909
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
910 
with the requirements for entering credit- 
bearing coursework at participating com-
munity colleges in such State; and 
‘‘(ii) not later than three years after 
the date on which the State first receives a 
grant under this subpart, certify to the Sec-
retary that such alignment has been 
achieved. 
‘‘(B) FAILURE TO CERTIFY.— If a State 
does not provide the certification required under 
subparagraph (A) by the date specified in such 
subparagraph, the State shall submit to the Sec-
retary, at such time and in such manner as the 
Secretary may require— 
‘‘(i) a written explanation for the 
delay in making the certification; and 
‘‘(ii) a plan that will enable the State 
to make the certification by not later than 
5 years after the date on which the State 
first received a grant under this subpart. 
‘‘(2) TRANSFER PATHWAYS.— 
‘‘(A) IN GENERAL.—The State shall— 
‘‘(i) submit a plan, developed in col-
laboration with faculty from institutions of 
higher education in the State, to improve 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00910
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
912 
subparagraph, the State shall submit to the Sec-
retary, at such time and in such manner as the 
Secretary may require— 
‘‘(i) a written explanation for the 
delay in making the certification; and 
‘‘(ii) a plan that will enable the State 
to make the certification by not later than 
5 years after the date on which the State 
first received a grant under this subpart. 
‘‘(3) APPLICABILITY.—The Secretary may not 
apply the requirements under this subsection to an 
Indian tribe. 
‘‘SEC. 499E. ALLOWABLE USES OF FUNDS. 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(b), a State or Indian tribe shall use a grant under this 
subpart only to provide funds to participating community 
colleges to enable such community colleges to waive resident 
tuition and fees for eligible students as required under sec-
tion 499D(a). 
‘‘(b) ADDITIONAL USES.—If a State or Indian tribe 
demonstrates to the Secretary that it has grant funds re-
maining after meeting the demand for activities described 
in subsection (a), the State or Indian tribe may use those 
funds to carry out one or more of the following: 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00912
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
913 
‘‘(1) Enhancing the quality of public higher edu-
cation to improve student outcomes, including trans-
fer and completion rates, which may include invest-
ing in the academic workforce. 
‘‘(2) Expanding the scope and capacity of high- 
quality academic and occupational skills training 
programs at community colleges, which may include 
collaboration with one or more industry or sector 
partnership (as defined in section 3 of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3201)). 
‘‘(3) Improving postsecondary education readi-
ness in the State or Indian tribe, including through 
outreach and early intervention. 
‘‘(4) Expanding access to dual or concurrent en-
rollment programs, including early college high school 
programs. 
‘‘(5) Improving affordability at 4-year public in-
stitutions of higher education. 
‘‘(c) USE
OF FUNDS
FOR ADMINISTRATIVE PUR-
POSES.—A State or Indian tribe that receives a grant 
under this subpart may not use any funds provided under 
this subpart for administrative purposes relating to the 
grant under this subpart. 
‘‘(d) MAINTENANCE OF EFFORT.—A State or Indian 
tribe receiving a grant under this subpart is entitled to re-
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00913
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
914 
ceive its full allotment of funds under this subpart for a 
fiscal year only if, for each year of the grant, the State or 
Indian tribe provides— 
‘‘(1) financial support for public higher edu-
cation at a level equal to or exceeding the average 
amount provided per full-time equivalent student for 
public institutions of higher education for the three 
consecutive preceding fiscal years. In making the cal-
culation under this subsection, the State or Indian 
tribe shall— 
‘‘(A) exclude capital expenses and research 
and development costs; and 
‘‘(B) include need-based financial aid for 
students who attend public institutions of higher 
education; 
‘‘(2) financial support for operational expenses 
for public, four-year colleges and universities at a 
level equal to or exceeding the average amount pro-
vided for the three consecutive preceding State or In-
dian tribe fiscal years; and 
‘‘(3) financial support for need-based financial 
aid at a level equal to or exceeding the average 
amount provided for the three consecutive preceding 
State or Indian tribe fiscal years. 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00914
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
915 
‘‘(e) ANNUAL REPORT.—A State or Indian tribe re-
ceiving a grant under this subpart shall submit an annual 
report to the Secretary describing the uses of grant funds 
under this subpart, the progress made in fulfilling the re-
quirements of the grant, and rates of transfer, graduation, 
and attainment of recognized postsecondary credentials at 
participating community colleges, including such rates 
disaggregated by race, income, and age, and including any 
other information as the Secretary may require. 
‘‘(f) REPORTING BY SECRETARY.—The Secretary an-
nually shall— 
‘‘(1) compile and analyze the information de-
scribed in subsection (e); and 
‘‘(2) prepare and submit a report to the Com-
mittee on Health, Education, Labor, and Pensions of 
the Senate and the Committee on Education and 
Labor of the House of Representatives containing the 
analysis described in paragraph (1) and an identi-
fication of State and Indian tribe best practices for 
achieving the purpose of this subpart. 
‘‘(g) TECHNICAL ASSISTANCE.—The Secretary shall 
provide technical assistance to eligible States and Indian 
tribes concerning best practices regarding the promising 
and evidence-based institutional reforms and innovative 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00915
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
916 
practices to improve student outcomes and shall dissemi-
nate such best practices among the States and Indian tribes. 
‘‘(h) CONTINUATION OF FUNDING.— 
‘‘(1) IN GENERAL.—A State or Indian tribe re-
ceiving a grant under this subpart for a fiscal year 
may continue to receive funding under this subpart 
for future fiscal years conditioned on the availability 
of budget authority and on meeting the requirements 
of the grant, as determined by the Secretary. 
‘‘(2) DISCONTINUATION.—The Secretary may 
discontinue funding of the Federal share of a grant 
under this subpart if the State or Indian tribe has 
violated the terms of the grant or is not making ade-
quate progress in implementing the reforms described 
in the application submitted under section 499C. 
‘‘(i) SUPPLEMENT, NOT SUPPLANT.—Funds made 
available under this subpart 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. 499F. DEFINITIONS. 
‘‘In this subpart: 
‘‘(1) CAREER PATHWAY.—The term ‘career path-
way’ has the meaning given the term in section 3 of 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00916
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
917 
the Workforce Innovation and Opportunity Act (29 
U.S.C. 3102). 
‘‘(2) COMMUNITY COLLEGE.—The term ‘commu-
nity college’ means a public institution of higher edu-
cation at which the highest degree that is predomi-
nantly awarded to students is an associate’s degree, 
including 2-year tribally controlled colleges under sec-
tion 316 and public 2-year State institutions of high-
er education. 
‘‘(3) DUAL OR CONCURRENT ENROLLMENT PRO-
GRAM.—The term ‘dual or concurrent enrollment pro-
gram’ has the meaning given the term in section 8101 
of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7801). 
‘‘(4) EARLY COLLEGE HIGH SCHOOL.—The term 
‘early college high school’ has the meaning given the 
term in section 8101 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 7801). 
‘‘(5) ELIGIBLE STUDENT.— 
‘‘(A) DEFINITION.—The term ‘eligible stu-
dent’ means a student who— 
‘‘(i) attends the community college on 
not less than a half-time basis; 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00917
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
918 
‘‘(ii) 
is 
maintaining 
satisfactory 
progress (as defined in section 484(c)) in 
the student’s course of study; 
‘‘(iii) is enrolled in an eligible pro-
gram (as defined in section 481(b)); and 
‘‘(iv) either— 
‘‘(I) qualifies for in-State resident 
community college tuition, as deter-
mined by the State or Indian tribe; or 
‘‘(II) would qualify for such in- 
State resident community college tui-
tion, but for the immigration status of 
such student. 
‘‘(B) SPECIAL RULE.—An otherwise eligible 
student shall lose eligibility 3 calendar years 
after first receiving benefits under this subpart. 
‘‘(6) INDIAN TRIBE.—The term ‘Indian tribe’ has 
the meaning given the term in section 102 of the Fed-
erally Recognized Indian Tribe List Act of 1994 (25 
U.S.C. 479a). 
‘‘(7) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘institution of higher education’ has the meaning 
given the term in section 101. 
‘‘(8) RECOGNIZED
POSTSECONDARY
CREDEN-
TIAL.—The term ‘recognized postsecondary credential’ 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00918
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
919 
has the meaning as described in section 3 of the 
Workforce Innovation and Opportunity Act (29 
U.S.C. 3102). 
‘‘(9) STATE.—The term ‘State’ has the meaning 
given the term in section 103. 
‘‘SEC. 499G. APPROPRIATIONS. 
‘‘(a) AUTHORIZATION AND APPROPRIATIONS.—For the 
purpose of making grants under this subpart there are au-
thorized to be appropriated, and there are appropriated— 
‘‘(1) $1,569,700,000 for fiscal year 2021; 
‘‘(2) $3,472,880,000 for fiscal year 2022; 
‘‘(3) $4,431,950,000 for fiscal year 2023; 
‘‘(4) $6,204,030,000 for fiscal year 2024; 
‘‘(5) $8,119,870,000 for fiscal year 2025; 
‘‘(6) $9,297,430,000 for fiscal year 2026; 
‘‘(7) $11,708,890,000 for fiscal year 2027; 
‘‘(8) $14,971,330,000 for fiscal year 2028; 
‘‘(9) $15,619,910,000 for fiscal year 2029; and 
‘‘(10) $16,296,080,000 for fiscal year 2030 and 
each succeeding fiscal year. 
‘‘(b) AVAILABILITY.—Funds appropriated under sub-
section (a) shall remain available to the Secretary until ex-
pended. 
‘‘(c) INSUFFICIENT FUNDS.—If the amount appro-
priated under subsection (a) for a fiscal year is not suffi-
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00919
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
920 
cient to award each participating State and Indian tribe 
a grant under this subpart that is equal to the minimum 
amount of the Federal share described in section 499B, 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. 4802. STUDENT SUCCESS FUND. 
Part J of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070 et seq.), as added by section 4801, is fur-
ther amended by adding at the end the following: 
‘‘Subpart 2—Student Success Fund 
‘‘SEC. 499H. IN GENERAL. 
‘‘From amounts appropriated under section 499N for 
any fiscal year, the Secretary shall carry out a grant pro-
gram (to be known as the Student Success Fund) to make 
grants to eligible entities to carry out the activities and 
services described in section 499L. 
‘‘SEC. 499I. ALLOCATION. 
‘‘(a) FEDERAL SHARE ALLOCATION.—The Federal 
share of a grant under this subpart shall be determined 
using the formula determined under section 499B(1). 
‘‘(b) MATCHING FUNDS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), an eligible entity participating in the pro-
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00920
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
921 
gram under this subpart shall provide, from non-Fed-
eral sources, in cash or in-kind— 
‘‘(A) in each of the first, second, third, and 
fourth year of participation in the program, an 
amount equal to 25 percent of the amount such 
entity received under subsection (a) with respect 
to such year; 
‘‘(B) in each of the fifth and sixth year of 
participation in the program, an amount equal 
to 50 percent of the amount such entity received 
under subsection (a) with respect to such year; 
‘‘(C) in each of the seventh and eighth year 
of participation in the program, an amount 
equal to 75 percent of the amount such entity re-
ceived under subsection (a) with respect to such 
year; and 
‘‘(D) in each ninth year and each subse-
quent year thereafter of participation in the pro-
gram, an amount equal to 100 percent of the 
amount such entity received under subsection (a) 
with respect to such year. 
‘‘(2) EXCEPTION FOR CERTAIN INDIAN TRIBES.— 
The Secretary may waive the matching fund require-
ments under paragraph (1) in the case of an eligible 
entity that is an Indian tribe if at least 75 percent 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00921
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
922 
of the students at the institutions of higher education 
operated or controlled by such Indian tribe are low- 
income students. 
‘‘(3) REALLOTMENT.—If an eligible entity re-
turns to the Secretary any portion of the sums allo-
cated to such eligible entity under this section for any 
fiscal year, the Secretary shall reallot such excess as 
part of the available appropriated amount for the 
succeeding fiscal year. 
‘‘(c) SUPPLEMENT, NOT SUPPLANT.—Grant funds 
awarded under this subpart shall be used to supplement, 
and not supplant, other Federal, State, and local funds that 
would otherwise be expended to carry out activities assisted 
under this subpart. 
‘‘(d) LIMITATION.—An eligible entity may only par-
ticipate in the program under this subpart in a year in 
which such entity receives a grant under subpart 1. 
‘‘SEC. 499J. APPLICATIONS. 
‘‘(a) IN GENERAL.—To be eligible to participate in the 
program under this subpart, an eligible entity shall submit 
an application to the Secretary at such time, in such man-
ner, and containing such information as the Secretary may 
require, including— 
‘‘(1) a plan that includes— 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00922
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
923 
‘‘(A) the amount of funds requested by the 
eligible entity under this subpart and the in-
tended use of such funds; 
‘‘(B) how the eligibility entity will use the 
requested funds to implement promising and evi-
dence-based institutional reforms and innovative 
practices to improve student outcomes, including 
those identified by such entity under section 
499C(b)(3), and including annual implementa-
tion benchmarks that the entity will use to track 
progress in implementing such reforms and prac-
tices; 
‘‘(C) how the eligible entity will meet its 
matching 
fund 
requirements 
under 
section 
499I(b); 
‘‘(D) if the eligible entity is a State, how 
such eligible entity will prioritize spending on 
the public institutions of higher education speci-
fied in paragraph (2)(B); and 
‘‘(E) the improvements the eligible entity 
anticipates in student outcomes, including im-
provements in transfer rates or completion rates, 
or both. 
‘‘(2) if the eligible entity is a State, an analysis 
that includes— 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00923
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
924 
‘‘(A) with respect to each public institution 
of higher education of the eligible entity— 
‘‘(i) the total per-student funding; 
‘‘(ii) the amount of per-student fund-
ing from State-appropriated funds; 
‘‘(iii) the student demographics (in-
cluding, data on race, income, disability 
status, and remediation); and 
‘‘(iv) transfer and completion rates, in-
cluding such rates among low-income stu-
dents, students of color, students with dis-
abilities, and students in need of remedi-
ation; and 
‘‘(B) an analysis of whether, of the public 
institutions of higher education of the eligible en-
tity, the public institutions of higher education 
that received less funding on a per-student basis 
described in clause (i) or (ii), or both, of sub-
paragraph (A), are serving disproportionately 
high shares of low-income students, students of 
color, students with disabilities, or students in 
need of remediation. 
‘‘(b) APPROVAL.— 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00924
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
925 
‘‘(1) IN
GENERAL.—Not later than 180 days 
after receiving a plan under subsection (a), the Sec-
retary shall— 
‘‘(A) approve the plan; or 
‘‘(B) require revisions to such plan. 
‘‘(2) REVISIONS REQUIRED.—An eligible entity 
shall make such revisions as required by the Secretary 
under paragraph (1)(B). 
‘‘(c) PUBLICATION.—The Secretary shall make each 
plan approved under subsection (b)(1)(A) and each plan 
revised under subsection (b)(2) available to the public on 
the website of the Department. 
‘‘SEC. 499K. PROGRAM REQUIREMENTS. 
‘‘(a) GENERAL REQUIREMENTS.— 
‘‘(1) REPORT ON DEMONSTRATED PROGRESS.— 
For the third year in which an eligible entity partici-
pates in the program under this subpart, and every 
2 years thereafter, the eligible entity shall submit a 
report to the Secretary, in such manner and con-
taining such information as the Secretary may re-
quire, that includes— 
‘‘(A) the progress in meeting the annual im-
plementation benchmarks included in the appli-
cation of such eligible entity under section 
499J(a)(1)(B); 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00925
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
926 
‘‘(B) the progress in improving the student 
outcomes identified by the entity under section 
499(J)(a)(1)(E); and 
‘‘(C) with respect to the 2 years after such 
report is submitted— 
‘‘(i) a plan for the use of funds under 
this subpart; and 
‘‘(ii) the amount of funds requested by 
the eligible entity under this subpart . 
‘‘(2) APPROVAL.—Not later than 180 days after 
receiving a plan under paragraph (1)(C)(i), the Sec-
retary shall— 
‘‘(A) approve the plan; or 
‘‘(B) require revisions to such plan. 
‘‘(3) REVISIONS REQUIRED.—An eligible entity 
shall make such revisions as required by the Secretary 
under paragraph (2)(B). 
‘‘(b) FAILURE TO MEET REQUIREMENTS.— If an eligi-
ble entity does not meet the annual implementation bench-
marks included in the application of such eligible entity 
under section 499J(a)(1)(B), as required to be reported 
under subsection (a)(1)(A), such eligible entity shall submit 
to the Secretary, at such time and in such manner as the 
Secretary may require— 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00926
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
927 
‘‘(1) a written explanation for the delay in meet-
ing such requirements; and 
‘‘(2) a plan that will enable such eligible entity 
to meet such requirements not later than 1 year after 
the date on which the eligible entity submitted the 
written explanation under paragraph (1). 
‘‘(c) PUBLICATION.—The Secretary shall make each 
plan approved under subsection (a)(2)(A), each plan revised 
under subsection (a)(3), and each plan submitted under 
subsection (b)(2) available to the public on the website of 
the Department. 
‘‘SEC. 499L. ALLOWABLE USES OF FUNDS. 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(b), an eligible entity shall use a grant under this subpart 
only to allocate funds in accordance with the plan sub-
mitted for such year under section 499J(a)(1). 
‘‘(b) USE
OF FUNDS
FOR ADMINISTRATIVE PUR-
POSES.—An eligible entity that receives a grant under this 
subpart may use not more than 10 percent of such grant 
for administrative purposes relating to the grant under this 
subpart. 
‘‘SEC. 499M. ELIGIBLE ENTITY DEFINED. 
‘‘In this subpart, the term ‘eligible entity’ means a 
State or Indian tribe that received a grant under subpart 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00927
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
928 
1 for the fiscal year in which such State or Indian tribe 
receives a grant under this subpart. 
‘‘SEC. 499N. APPROPRIATIONS. 
‘‘(a) AUTHORIZATION AND APPROPRIATIONS.—For the 
purpose of making grants under this subpart there are au-
thorized to be appropriated and there are appropriated 
$500,000,000 for fiscal year 2021 and each succeeding fiscal 
year. 
‘‘(b) AVAILABILITY.—Funds appropriated under sub-
section (a) shall remain available to the Secretary until ex-
pended.’’. 
SEC. 4803. PATHWAYS TO STUDENT SUCCESS FOR HISTORI-
CALLY BLACK COLLEGES AND UNIVERSITIES, 
TRIBAL COLLEGES AND UNIVERSITIES, AND 
MINORITY-SERVING INSTITUTIONS. 
Part J of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070 et seq.), as added and amended by this 
part, is further amended by adding at the end the following: 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00928
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
929 
‘‘Subpart 3—Grants to Historically Black Colleges 
and Universities, Tribal Colleges and Univer-
sities, and Minority-Serving Institutions 
‘‘SEC. 499O. PATHWAYS TO STUDENT SUCCESS FOR HIS-
TORICALLY BLACK COLLEGES AND UNIVER-
SITIES. 
‘‘(a) IN
GENERAL.—From amounts appropriated 
under section 499S(a) for any fiscal year, the Secretary 
shall award grants to participating 4-year historically 
black colleges or universities that meet the requirements of 
subsection (b) to— 
‘‘(1) encourage students to enroll and successfully 
complete a bachelor’s degree at participating institu-
tions; 
‘‘(2) provide incentives to community college stu-
dents to transfer to participating institutions through 
strong transfer pathways to complete a bachelor’s de-
gree program; and 
‘‘(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) ELIGIBILITY.—To be eligible to receive a grant 
under the program under this section, an institution shall 
be a historically black college or university that— 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00929
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
930 
‘‘(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 underrepresented in higher education; 
‘‘(B) providing direct support services such 
as— 
‘‘(i) childcare, transportation, emer-
gency financial assistance, and mental 
health and substance use disorder treatment; 
‘‘(ii) assistance in obtaining health in-
surance coverage; 
‘‘(iii) assistance securing affordable 
housing; 
‘‘(iv) efforts to address food insecurity 
and campus hunger; and 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00930
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
931 
‘‘(v) efforts to facilitate student partici-
pation in means-tested Federal benefit pro-
grams (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 programs; 
or 
‘‘(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 student’s 
college entrance examination score, grade point 
average, high school course list, or a placement 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00931
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
932 
examination) to identify students in need of re-
medial 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 level 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 eligible institution shall receive a grant in an 
amount based on the product of— 
‘‘(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 enrolled 
in the eligible institution for the preceding year. 
‘‘(2) SUBSEQUENT
INCREASES.—For each suc-
ceeding year after the first year of the grant program 
under this section, each participating eligible institu-
tion shall receive a grant in the amount determined 
under paragraph (1) for such year, except that in no 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00932
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
933 
case shall the amount of the per-student rebate for an 
eligible institution increase by more than 3 percent as 
compared to the amount of such rebate for the pre-
ceding 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 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 sec-
tion to a participating eligible institution shall be used to 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00933
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
934 
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. 499P. PATHWAYS TO STUDENT SUCCESS FOR TRIBAL 
COLLEGES AND UNIVERSITIES. 
‘‘(a) IN
GENERAL.—From amounts appropriated 
under section 499S(a) for any fiscal year, the Secretary 
shall award grants to participating 4-year Tribal Colleges 
or Universities that meet the requirements of subsection (b) 
to— 
‘‘(1) encourage students to enroll and successfully 
complete a bachelor’s degree at participating institu-
tions; 
‘‘(2) provide incentives to community college stu-
dents to transfer to participating institutions through 
strong transfer pathways to complete a bachelor’s de-
gree program; and 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00934
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
935 
‘‘(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) ELIGIBILITY.—To be eligible to receive a grant 
under the program under this section, an institution shall 
be a Tribal College or University 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 underrepresented in higher education; 
‘‘(B) providing direct support services such 
as— 
‘‘(i) childcare, transportation, emer-
gency financial assistance, and mental 
health and substance use disorder treatment; 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00935
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
936 
‘‘(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 partici-
pation in means-tested Federal benefit pro-
grams (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 programs; 
or 
‘‘(E) strengthening remedial education, es-
pecially for low-income, first-generation, and 
adult students, and other students belonging to 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00936
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
937 
racial and other groups that are underrep-
resented in higher education, including through 
the use of multiple measures (such as a student’s 
college entrance examination score, grade point 
average, high school course list, or a placement 
examination) to identify students in need of re-
medial 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 level 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 eligible institution shall receive a grant in an 
amount based on the product of— 
‘‘(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 enrolled 
in the eligible institution for the preceding year. 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00937
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
938 
‘‘(2) SUBSEQUENT
INCREASES.—For each suc-
ceeding year after the first year of the grant program 
under this section, each participating eligible institu-
tion shall receive a grant in the amount determined 
under paragraph (1) for such year, except that in no 
case shall the amount of the per-student rebate for an 
eligible institution increase by more than 3 percent as 
compared to the amount of such rebate for the pre-
ceding 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 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. 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00938
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
939 
‘‘(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 sec-
tion 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. 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00939
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
940 
‘‘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-serv-
ing institutions to— 
‘‘(1) encourage students to enroll and successfully 
complete a bachelor’s degree at participating institu-
tions; 
‘‘(2) provide incentives to community college stu-
dents to transfer to participating institutions through 
strong transfer pathways to complete a bachelor’s de-
gree program; and 
‘‘(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. 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00940
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
941 
‘‘(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 
health and substance use disorder treatment; 
‘‘(ii) assistance in obtaining health in-
surance coverage; 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00941
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
942 
‘‘(iii) assistance securing affordable 
housing; 
‘‘(iv) efforts to address food insecurity 
and campus hunger; and 
‘‘(v) efforts to facilitate student partici-
pation in means-tested Federal benefit pro-
grams (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 programs; 
or 
‘‘(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 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00942
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
943 
the use of multiple measures (such as a student’s 
college entrance examination score, grade point 
average, high school course list, or a placement 
examination) to identify students in need of re-
medial 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 receive a 
grant in an amount based on the product of— 
‘‘(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 enrolled 
in the eligible institution for the preceding year. 
‘‘(2) SUBSEQUENT
INCREASES.—For each suc-
ceeding year after the first year of the grant program 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00943
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
944 
under this section, each participating eligible institu-
tion shall receive a grant in the amount determined 
under paragraph (1) for such year, except that in no 
case shall the amount of the per-student rebate in-
crease 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-
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. 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00944
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
945 
‘‘(e) USE OF FUNDS.—Funds awarded under this sec-
tion 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— 
‘‘(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; 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00945
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
946 
‘‘(ii) attends the historically black col-
lege or university, Tribal College or Univer-
sity, 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 eli-
gible student shall lose eligibility 3 calendar 
years after first receiving benefits under this 
title. 
‘‘(ii) SPECIAL RULE FOR CERTAIN STU-
DENTS.—Notwithstanding 
subparagraph 
(A)(i), an otherwise eligible student whose 
parent or guardian was denied a Federal 
Direct PLUS loan under part D after No-
vember 1, 2011, and before March 29, 2015, 
and who subsequently withdrew from a his-
torically black college or university, Tribal 
College or University, or minority-serving 
institution, and has not yet completed a 
program of study at such historically black 
college or university or minority-serving in-
stitution, shall be eligible to participate 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00946
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
947 
under sections 499O, 499P, or 499Q in 
order to complete such program of study, 
subject to all other requirements of sections 
499O, 499P, or 499Q (as the case may be). 
‘‘(2) HISTORICALLY BLACK COLLEGE OR UNIVER-
SITY.—The term ‘historically black college or univer-
sity’ means a part B institution described in section 
322(2). 
‘‘(3) LOW-INCOME STUDENT.—The term ‘low-in-
come 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 de-
termined by the institution to be a low-income 
student based on an analysis of the student’s 
ability to afford the cost of attendance at the in-
stitution. 
‘‘(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 insti-
tution by the Secretary. 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00947
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
948 
‘‘(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 car-
rying out sections 499O, 499P, and 499Q there are author-
ized to be appropriated, and there are appropriated— 
‘‘(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; 
‘‘(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 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00948
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
949 
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 J of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070 et seq.), as added and amended by this 
part, 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.— 
‘‘(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 para-
graph (3) to pay the Federal share of expenditures 
needed to carry out the activities and services de-
scribed in subsection (d). 
‘‘(2) LIMITATION.—The Secretary may not make 
grants under paragraph (1) in fiscal year unless all 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00949
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
950 
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 fis-
cal 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- 
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 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00950
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
951 
‘‘(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 determination; 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 In-
dian 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 Pell 
Grant recipients enrolled in such institutions of 
higher education. 
‘‘(2) STATE OR TRIBAL SHARE.— 
‘‘(A) FORMULA.— 
‘‘(i) IN GENERAL.—The State or tribal 
share of a grant under this section for each 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00951
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
952 
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 recipi-
ents in the State or Indian tribe, respec-
tively, for such fiscal year, except as pro-
vided in clause (ii). 
‘‘(ii) EXCEPTION FOR CERTAIN INDIAN 
TRIBES.—In the case of an Indian tribe de-
scribed in paragraph (1)(B), the amount of 
such Indian tribe’s tribal share shall not ex-
ceed 5 percent of the total amount needed to 
pay the average unmet need for all Pell 
Grant recipients enrolled in the institutions 
of higher education described in such para-
graph. 
‘‘(B) NEED-BASED AID.—A State or Indian 
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. 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00952
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
953 
‘‘(3) DETERMINING NUMBER OF PELL GRANT RE-
CIPIENTS.— 
‘‘(A) IN GENERAL.—The Secretary shall de-
velop and implement a process for accurately es-
timating 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 recipients 
in a State or Indian tribe shall be considered to 
be equal to the number of Pell Grant recipients 
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 number 
of Pell Grant recipients 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 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00953
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
954 
‘‘(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 es-
timate, issue a supplementary grant payment to 
the State or tribe in an amount that ensures that 
the total amount of the grant funds received by 
the State or tribe under this section for the year 
covered by the grant accurately reflects the higher 
number of Pell Grant recipients. 
‘‘(c) APPLICATIONS.—In order to receive a grant under 
this section, a State or tribe shall submit an application 
to the Secretary at such time, in such manner, and con-
taining 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 
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 submit 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 recognized 
postsecondary credentials at institutions of higher 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00954
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
955 
education in the State or Indian tribe, including such 
rates disaggregated by race, income, and age, and in-
cluding any other information as the Secretary may 
require. 
‘‘(3) REPORTING BY THE SECRETARY.—The Sec-
retary 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 Represent-
atives containing the analysis described in sub-
paragraph (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 regarding 
the promising and evidence-based institutional re-
forms and innovative practices to improve student 
outcomes and shall disseminate such best practices 
among the States and Indian tribes. 
‘‘(5) CONTINUATION OF FUNDING.— 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00955
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
956 
‘‘(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 conditioned 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, 
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 Fed-
erally 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.— 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00956
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
957 
‘‘(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— 
‘‘(I) qualifies for in-State resident 
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— 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00957
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
958 
‘‘(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 credential’ 
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 meaning 
given the term in section 103. 
‘‘(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, 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00958
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
959 
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 fiscal 
year 2021 and each succeeding fiscal year. 
‘‘(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. 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00959
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
960 
‘‘(4) TRANSFER AVAILABILITY.—The Secretary is 
authorized, subject to the availability of appropria-
tions, to transfer amounts authorized to be appro-
priated to carry out subpart 1 for a fiscal year to 
make grants under this section if all grants eligible 
to be made under such subpart have been made for 
such fiscal year.’’. 
SEC. 4805. UNMET NEED FOR STUDENTS. 
Subpart 4 of part J of title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1070 et seq.), as added and amended 
by this part, is further amended by adding at the end the 
following: 
‘‘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 para-
graph (3) to pay the Federal share of expenditures 
needed to carry out the activities and services de-
scribed in subsection (d). 
‘‘(2) LIMITATION.—The Secretary may not make 
grants under paragraph (1) in fiscal year unless— 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00960
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
961 
‘‘(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 fis-
cal year if such State or Indian tribe received— 
‘‘(A) a grant under subpart 1 for such fiscal 
year; and 
‘‘(B) a grant under 499T 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 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-
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 00961
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
1006 
technical training fields and international, cross-cul-
tural, and foreign language skills; and 
‘‘(3) provide appropriate services to or partner-
ships with the corporate, government, and nonprofit 
communities in order to expand knowledge and ca-
pacity for global engagement and competitiveness and 
provide internship or employment opportunities for 
students and graduates with international skills. 
‘‘(c) MANDATORY ACTIVITIES.—An eligible entity that 
receives a grant under this section shall use the grant to 
carry out the following: 
‘‘(1) With respect to undergraduate or graduate 
professional education and technical training cur-
ricula, incorporating— 
‘‘(A) foreign language programs that lead to 
proficiency, including immersion opportunities; 
‘‘(B) international, area, or global studies 
programs; 
‘‘(C) education, internships, or other inno-
vative or technological linkages abroad; and 
‘‘(D) global business, economic, and trade 
studies, where appropriate. 
‘‘(2) Innovating and improving international, 
global, and foreign language education curricula to 
serve the needs of business and other professional and 
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 01006
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674
1018 
award grants, on a competitive basis, to eligible institutions 
to enable the eligible institutions to carry out the activities 
described in section 727. 
‘‘(b) AWARD OF GRANT FUNDS.—Of the funds appro-
priated to carry out this subpart for a fiscal year, the Sec-
retary— 
‘‘(1) shall reserve— 
‘‘(A) not less than one-third of such funds to 
award grants to carry out the activities de-
scribed in section 727(b); and 
‘‘(B) not less than one-third of such funds 
to award grants to carry out the activities de-
scribed in section 727(c); and 
‘‘(2) may use the amount of funds remaining 
after the reservation required under paragraph (1) to 
award grants to carry out the activities described in 
subsections (b) and (c) of section 727. 
‘‘(c) DURATION.—Grants under this subpart shall be 
awarded for a period not to exceed five years. 
‘‘(d) LIMITATION ON NUMBER OF AWARDS.—The Sec-
retary may not award more than one grant under this sub-
part in any fiscal year to any Asian American and Native 
American Pacific Islander-serving institutions. 
‘‘(e) APPLICATION.—Any eligible institution may 
apply for a grant under this subpart by submitting an ap-
VerDate Sep 11 2014 
21:17 Dec 28, 2020
Jkt 019200
PO 00000
Frm 01018
Fmt 6652
Sfmt 6203
E:\BILLS\H4674.RH
H4674