‘‘(cc) institutions of higher 
education not accredited by an 
agency or association recognized 
by the Secretary pursuant to sec-
tion 496; 
‘‘(II) financial aid to students 
awarded predominantly or signifi-
cantly on the basis of merit; 
‘‘(III) research and development; 
or 
‘‘(IV) 
hospitals, 
athletics, 
or 
other auxiliary enterprises; 
‘‘(vii) corporate or other private dona-
tions directed to 1 or more institutions of 
higher education permitted to be expended 
by the State; and 
‘‘(viii) any other funds that the Sec-
retary determines shall not be included in 
the calculation of State fiscal support for 
higher education for such State. 
‘‘(C) ADJUSTMENTS FOR BIENNIAL APPRO-
PRIATIONS.—The Secretary shall make adjust-
ments to the calculations under this paragraph 
to accurately reflect State fiscal support for 
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higher education in States with 2-year appro-
priation cycles. 
‘‘(14) STATE
FISCAL
SUPPORT
FOR
HIGHER 
EDUCATION
PER
FULL-TIME
EQUIVALENT
STU-
DENT.—The term ‘State fiscal support for higher 
education per full-time equivalent student’, when 
used with respect to a State for a fiscal year, means 
the amount that is equal to— 
‘‘(A) the State fiscal support for higher 
education for the applicable fiscal year; divided 
by 
‘‘(B) the number of full-time equivalent 
students enrolled in public institutions of higher 
education in such State for such fiscal year. 
‘‘(15) TRIBAL COLLEGE OR UNIVERSITY.—The 
term ‘Tribal College or University’ has the meaning 
given the term in section 316(b)(3). 
‘‘(16) 2-YEAR
TRIBAL
COLLEGE
OR
UNIVER-
SITY.—The term ‘2-year Tribal College or Univer-
sity’ means— 
‘‘(A) a 2-year Tribal College or University; 
or 
‘‘(B) a degree-granting Tribal College or 
University— 
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‘‘(i) at which the highest degree 
awarded is an associate degree; or 
‘‘(ii) at which an associate degree is 
the most frequently awarded degree. 
‘‘SEC. 785. GRANT AWARDS. 
‘‘Beginning with award year 2026–2027, from 
amounts appropriated under section 791 to carry out this 
subpart for any fiscal year, the Secretary shall award 
grants to States and Tribal College and Universities with 
applications approved under section 789, to enable the 
States and Tribal Colleges and Universities, through a 
Federal-State partnership, to fully eliminate tuition and 
required fees for all eligible students. 
‘‘SEC. 786. FEDERAL SHARE; STATE SHARE. 
‘‘(a) FEDERAL SHARE.— 
‘‘(1) IN GENERAL.— 
‘‘(A) AMOUNT.—Subject to paragraph (2), 
the amount of the Federal share of a grant 
under this subpart shall be based on a formula 
that provides, for each eligible student enrolled 
in a community college operated or controlled 
by a State, a Tribal College or University, or a 
public 4-year institution of higher education in 
a State, a per-student amount (based on full- 
time equivalent enrollment) that is equal to the 
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applicable percentage described in subpara-
graph (B), or the percentage described in para-
graph (2) with respect to a Tribal College or 
University, of— 
‘‘(i) for the 2026–2027 award year, 
not less than the sum of the product of 
$5,110 multiplied by the number of eligible 
students enrolled at such a community col-
lege or 2-year Tribal College or University 
and the product of $11,610 multiplied by 
the number of eligible students enrolled at 
such a public 4-year institution of higher 
education or 4-year Tribal College or Uni-
versity; and 
‘‘(ii) for each subsequent award year, 
the amount determined under this para-
graph for the preceding award year, in-
creased by the lesser of— 
‘‘(I) a percentage equal to the es-
timated percentage increase in the 
Consumer Price Index (as determined 
by the Secretary) since the date of 
such determination; or 
‘‘(II) 3 percent. 
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‘‘(B) APPLICABLE PERCENT.—The appli-
cable percent for a State receiving a grant 
under this subpart shall be— 
‘‘(i) for the 2026–2027 award year, 
100 percent; 
‘‘(ii) for the 2027–2028 award year, 
95 percent; 
‘‘(iii) for the 2028–2029 award year, 
90 percent; 
‘‘(iv) for the 2029–2030 award year, 
85 percent; and 
‘‘(v) for the 2030–2031 award year 
and each subsequent award year, 80 per-
cent. 
‘‘(2) TRIBAL COLLEGES AND UNIVERSITIES.— 
The amount of the Federal share for a Tribal Col-
lege or University receiving a grant under this sub-
part shall be the greater of— 
‘‘(A) 100 percent of the amount deter-
mined in accordance with clause (i) or (ii) of 
subparagraph (1)(A), as applicable, with re-
spect to eligible students enrolled in such Tribal 
College or University; or 
‘‘(B) the amount that is 100 percent of the 
total amount needed to fully eliminate tuition 
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and fees for all eligible students enrolled in 
such Tribal College or University for the 2026– 
2027 award year, increased by the percentage 
increase in the Consumer Price Index (as deter-
mined by the Secretary) between July 1, 2026, 
and the applicable award year, and adjusted to 
reflect the enrollment in such Tribal College or 
University for such applicable award year. 
‘‘(b) STATE SHARE.— 
‘‘(1) FORMULA.— 
‘‘(A) IN
GENERAL.—The amount of the 
State share of a grant under this subpart for 
each award year shall be equal to the applicable 
percent described in subparagraph (B) of the 
total amount determined under subsection 
(a)(1)(A) with respect to the State for the 
award year. 
‘‘(B) APPLICABLE PERCENT.—The appli-
cable percentage shall be— 
‘‘(i) for the 2026–2027 award year, 0 
percent; 
‘‘(ii) for the 2027–2028 award year, 5 
percent; 
‘‘(iii) for the 2028–2029 award year, 
10 percent; 
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‘‘(iv) for the 2029–2030 award year, 
15 percent; and 
‘‘(v) for the 2030–2031 award year 
and each subsequent award year, 20 per-
cent. 
‘‘(C) OBLIGATION TO PROVIDE SHARE.— 
The State shall provide the State share even if 
the State is able, without such State share, to 
fully eliminate tuition and required fees charged 
to eligible students attending community col-
leges operated or controlled by the State or 
public 4-year institutions of higher education in 
the State. 
‘‘(D) NO
DOUBLE
COUNTING
FUNDS.— 
States shall not count any funds that count to-
ward the maintenance of effort requirement in 
section 787(b) to also count toward the State 
share under this subsection. 
‘‘(E) SPECIAL RULE FOR OUTLYING AREAS 
AND TERRITORIES.— 
‘‘(i) IN
GENERAL.—If the Secretary 
determines that requiring an outlying area 
or territory to provide a State share in ac-
cordance with this subsection would rep-
resent a substantial hardship for the out-
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lying area or territory, the Secretary shall 
reduce or waive the State share for such 
area or territory. If the Secretary so re-
duces or waives the amount of the State 
share of an outlying area or territory, the 
Secretary shall increase the applicable per-
centage used to calculate the Federal share 
under subsection (a) for such area or terri-
tory, in proportion to the reduction in the 
applicable percentage used to calculate 
such State share. 
‘‘(ii) DEFINITION.—In this subpara-
graph, the term ‘outlying area or territory’ 
means the Commonwealth of Puerto Rico, 
the District of Columbia, Guam, American 
Samoa, the United States Virgin Islands, 
the Commonwealth of the Northern Mar-
iana Islands, and the Freely Associated 
States. 
‘‘(2) INCLUSION OF STATE FINANCIAL AID AND 
LOCAL FUNDS.—In the case of a State that dem-
onstrates to the satisfaction of the Secretary that 
community colleges operated or controlled by the 
State and 4-year public institutions of higher edu-
cation in the State will not experience a net reduc-
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tion in total per-student revenue (including revenue 
derived from tuition and fees) as compared to that 
revenue for the preceding State fiscal year in such 
State, a State may include, as part of the State 
share— 
‘‘(A) any financial aid that is provided 
from State funds to eligible students for such 
students’ cost of attendance at community col-
leges operated or controlled by the State and 4- 
year public institutions of higher education in 
the State that is not awarded predominantly on 
the basis of merit; and 
‘‘(B) any funds provided to community col-
leges operated or controlled by the State and 4- 
year public institutions of higher education in 
the State by local governments in such State 
for the purpose of carrying out this subpart, in-
cluding for the purpose of eliminating tuition 
and fees for eligible students. 
‘‘(3) NO
IN-KIND
CONTRIBUTIONS.—A State 
shall not include in-kind contributions for purposes 
of the State share described in paragraph (1). 
‘‘(c) DETERMINATION
OF NUMBER
OF ELIGIBLE 
STUDENTS.— 
‘‘(1) IN GENERAL.— 
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‘‘(A) DETERMINATION.—For purposes of 
subsections (a) and (b), the Secretary shall, in 
consultation with the State or Tribal College or 
University concerned, determine the estimated 
number of eligible students enrolled in the com-
munity colleges operated or controlled by the 
State and in the public 4-year institutions of 
higher education in the State or in such Tribal 
College or University for the applicable award 
year. 
‘‘(B) PROJECTED
ENROLLMENT.—If the 
estimated number of eligible students figure of 
a State or Tribal College or University under 
subparagraph (A) is more than 25 percent larg-
er than the eligible students figure for the pre-
ceding year, the Secretary shall use an alter-
native enrollment estimate which shall be used 
in the formula under subsection (a) for deter-
mining the allotment. 
‘‘(2) ADJUSTMENT
OF
GRANT
AMOUNT.—For 
each year for which a State or Tribal College or 
University receives a grant under this subpart, the 
Secretary shall, once final enrollment data for such 
year are available— 
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‘‘(A) in consultation with the State or 
Tribal College or University concerned, deter-
mine the actual number of eligible students en-
rolled in the community colleges operated or 
controlled by the State and the public 4-year in-
stitutions of higher education in the State or in 
such Tribal College or University for the year 
covered by the grant; and 
‘‘(B) adjust the Federal share of the grant 
amount received by the State or Tribal College 
or University and the State share under sub-
section (b) to reflect the actual number of eligi-
ble students by applying the relevant adjust-
ment to such Federal share or the State share, 
or both, in the subsequent award year. 
‘‘(3) ADDITIONAL FUNDS.—If a State or Tribal 
College or University provides additional funds to-
ward reducing the cost of attendance and improving 
instruction beyond the cost of eliminating tuition 
and required fees as described in paragraphs (2) and 
(3) of section 787(a) for any award year, and, with 
respect to a State, such funds amount to more than 
the State share requirement under subsection (b) 
and the maintenance of effort requirements in sec-
tion 787, the Secretary shall provide the State or 
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Tribal College or University an amount equal to 
such additional funds provided by the State or Trib-
al College or University, which amount provided by 
the Secretary may be used for the activities de-
scribed in section 790. 
‘‘SEC. 787. PROGRAM REQUIREMENTS. 
‘‘(a) GENERAL REQUIREMENTS.—In order to receive 
a grant under this subpart in each award year, a State 
or Tribal College or University shall comply with the fol-
lowing: 
‘‘(1) With respect to a State, ensure that public 
institutions of higher education in the State main-
tain expenditures on instruction per full-time equiva-
lent student at levels that are equal to or exceed the 
expenditures on instruction per full-time equivalent 
student provided for the 3 most recent consecutive 
State fiscal years for which data are available. 
‘‘(2) Ensure that the total amount of tuition 
and required fees charged to an eligible student— 
‘‘(A) at community colleges in the State 
are fully eliminated; or 
‘‘(B) if the Tribal College or University is 
a 2-year Tribal College or University, at such 
Tribal College or University are fully elimi-
nated. 
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‘‘(3) Ensure that the total amount of tuition 
and required fees charged to an eligible student at 
public 4-year institutions of higher education in the 
State, or, if the Tribal College or University is a 4- 
year Tribal College or University, at such Tribal 
College or University, are fully eliminated as follows: 
‘‘(A) For award year 2026–2027, the State 
or Tribal College or University shall fully elimi-
nate tuition and required fees for such stu-
dents— 
‘‘(i) who are dependent students— 
‘‘(I) in a single parent household, 
whose parent’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 
$150,000; or 
‘‘(II) 
with 
married 
parents, 
whose parents’ 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 
$300,000; and 
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‘‘(ii) who are— 
‘‘(I) single independent students, 
whose adjusted gross income for the 
taxable year that is 1 year prior to 
the taxable year that ends imme-
diately prior to the beginning of the 
award year is equal to or less than 
$150,000; or 
‘‘(II) married independent stu-
dents, whose 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 
$300,000. 
‘‘(B) For each award year after award 
year 2026–2027, the State or a 4-year Tribal 
College or University shall fully eliminate tui-
tion and required fees for such students in ac-
cordance with clauses (i) and (ii) of subpara-
graph (A), except the gross income amount 
shall be adjusted for each subsequent year in 
the same manner as income is adjusted under 
section 478(b). 
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‘‘(4) Not apply financial assistance for which an 
eligible student qualifies to tuition or required fees. 
‘‘(5) Not use any funds provided under this 
subpart for administrative purposes. 
‘‘(b) STATE MAINTENANCE OF EFFORT.—In order to 
receive a grant under this subpart in each award year, 
a State shall— 
‘‘(1) provide State fiscal support for higher edu-
cation per full-time equivalent student at a level 
equal to or exceeding the average amount of State 
fiscal support for higher education per full-time 
equivalent student provided for the 3 most recent 
consecutive State fiscal years for which data are 
available; 
‘‘(2) maintain State operating expenditures per 
full-time equivalent student for public 2- and 4-year 
institutions of higher education in the State, exclud-
ing capital expenses and research and development 
costs, at a level equal to or greater than the average 
amount provided for the 3 most recent consecutive 
State fiscal years for which data are available; and 
‘‘(3) maintain State expenditures for need- 
based financial aid programs for enrollment in insti-
tutions of higher education (as defined in section 
101) in the State at a level that is equal to or great-
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er than the average amount provided for the 3 most 
recent consecutive State fiscal years for which data 
are available. 
‘‘(c) REQUIREMENTS OF STATES AND SOME TRIBAL 
COLLEGES AND UNIVERSITIES.—In order to receive a 
grant under this subpart in each award year, a State or 
(when applicable) a Tribal College or University shall— 
‘‘(1) provide an assurance that not later than 5 
years after the first award year for which the grant 
is awarded, not less than 75 percent of instruction 
at public institutions of higher education in the 
State is provided by tenure-track or tenured faculty; 
‘‘(2) provide an assurance that public institu-
tions of higher education in the State make it a pri-
ority to hire from the existing adjunct, contract, con-
tingent, and non-tenure track or tenured faculty 
pool for tenure-track or tenured faculty positions or 
other full-time non-contingent instructional posi-
tions; 
‘‘(3) require that public institutions of higher 
education in the State provide, for each student en-
rolled at the institution who receives the maximum 
Federal Pell Grant award under subpart 1 of part 
A of title IV, institutional student financial aid (ex-
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cluding student loans) in an amount equal to the net 
price owed by such student; 
‘‘(4) ensure that public institutions of higher 
education in the State or the Tribal College or Uni-
versity not adopt policies to reduce enrollment; 
‘‘(5) provide an assurance that public institu-
tions of higher education in the State will not charge 
out-of-State students an amount that exceeds the 
marginal cost (as determined by the Secretary) of 
attending institutions of higher education in the 
State; 
‘‘(6) provide an assurance that public institu-
tions of higher education in the State that charge 
non-eligible in-State students tuition and required 
fees, will not charge such students a rate that is nec-
essary to continue to fully eliminate tuition and re-
quired fees for eligible students; and 
‘‘(7) provide an assurance that public institu-
tions of higher education in the State maintain a 
ratio of 1 to 150 of disability services full-time em-
ployees to registered students with disabilities, and 
that such employees be specifically dedicated to serv-
ing students with disabilities. 
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‘‘(d) ALIGNMENT OF SECONDARY AND HIGHER EDU-
CATION.—In order to receive a grant under this subpart, 
a State shall— 
‘‘(1) submit and implement a plan to align the 
requirements for receiving a regular high school di-
ploma from public schools in the State with the re-
quirements for entering credit-bearing coursework at 
community colleges in such State; and 
‘‘(2) not later than 3 years after the date on 
which the State first receives a grant under this sub-
part, certify to the Secretary that such alignment 
has been achieved. 
‘‘(e) TRANSFER PATHWAYS.—In order to receive a 
grant under this subpart, a State shall— 
‘‘(1) submit a plan to improve transfer path-
ways among public institutions of higher education 
in the State, including by— 
‘‘(A) ensuring that associate degrees 
awarded by community colleges in the State are 
fully transferable to, and credited as, the first 
2 years of related baccalaureate programs at 
public institutions of higher education in such 
State; and 
‘‘(B) increasing the transferability of indi-
vidual courses within the certificate or associate 
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programs offered by community colleges in the 
State to related baccalaureate programs offered 
by public institutions of higher education in 
such State to maximize the transferability of 
credits for students who transfer before com-
pleting an associate degree and facilitate re-
verse transfer policies; and 
‘‘(2) not later than 3 years after the date on 
which the State first receives a grant under this sub-
part, certify to the Secretary that the State is car-
rying out the plan submitted in accordance with 
paragraph (1) and is meeting the requirements of 
subparagraphs (A) and (B) of such paragraph. 
‘‘(f) 
NO
ADDITIONAL
ELIGIBILITY
REQUIRE-
MENTS.—No individual shall be determined by a State, a 
Tribal College or University, or the Secretary, to be ineli-
gible for benefits provided under this subpart (including 
eliminating tuition and fees, and other aid provided under 
this subpart), except on the basis of eligibility require-
ments under this subpart. 
‘‘SEC. 788. AUTOMATIC STABILIZER. 
‘‘(a) MAINTENANCE OF EFFORT RELIEF.—A State 
that receives a grant under this subpart may request a 
waiver of the requirements under section 787(b). Upon re-
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quest by such a State, the Secretary shall waive the re-
quirements of section 787(b) for the State as follows: 
‘‘(1) TIER I.—With respect to each State eligi-
ble for relief under tier I, such requirements shall be 
waived for the fiscal year succeeding the fiscal year 
for which the determination of the State’s eligibility 
for such relief is made. 
‘‘(2) TIERS II THROUGH V.—With respect to 
each State eligible for relief under tier II, III, IV, 
or V, such requirements shall be waived, in accord-
ance with subsection (c), for— 
‘‘(A) the fiscal year for which the deter-
mination of the State’s eligibility for such relief 
is made; 
‘‘(B) the fiscal year succeeding the fiscal 
year described in subparagraph (A); or 
‘‘(C) both such fiscal years. 
‘‘(b) STATE SHARE RELIEF.— 
‘‘(1) STATE
SHARE
RELIEF.—A State that 
meets the qualifying spending requirement and is el-
igible for relief under tier II, III, IV, or V may re-
quest relief with respect to the requirement of sec-
tion 786(b)(1)(B). Upon request by such a State, 
the Secretary shall provide relief from the require-
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ments of section 786(b)(1)(B), for the applicable 
award year or years, for the State as follows: 
‘‘(A) TIER
II.—With respect to a State 
that is eligible for relief under tier II, the Sec-
retary shall apply— 
‘‘(i) section 786(a)(1)(B)(v), by sub-
stituting ‘85 percent’ for ‘80 percent’; and 
‘‘(ii) section 786(b)(1)(B)(v), by sub-
stituting ‘15 percent’ for ‘20 percent’. 
‘‘(B) TIER III.—With respect to a State 
that is eligible for relief under tier III, the Sec-
retary shall apply— 
‘‘(i) section 786(a)(1)(B)(iv), by sub-
stituting ‘90 percent’ for ‘85 percent’; 
‘‘(ii) section 786(a)(1)(B)(v), by sub-
stituting ‘90 percent’ for ‘80 percent’; 
‘‘(iii) section 786(b)(1)(B)(iv), by sub-
stituting ‘10 percent’ for ‘15 percent’; and 
‘‘(iv) section 786(b)(1)(B)(v), by sub-
stituting ‘10 percent’ for ‘20 percent’. 
‘‘(C) TIER IV.—With respect to a State 
that is eligible for relief under tier IV, the Sec-
retary shall apply— 
‘‘(i) section 786(a)(1)(B)(iii), by sub-
stituting ‘95 percent’ for ‘90 percent’; 
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‘‘(ii) section 786(a)(1)(B)(iv), by sub-
stituting ‘95 percent’ for ‘85 percent’; 
‘‘(iii) section 786(a)(1)(B)(v), by sub-
stituting ‘95 percent’ for ‘80 percent’; 
‘‘(iv) section 786(b)(1)(B)(iii), by sub-
stituting ‘5 percent’ for ‘10 percent’; 
‘‘(v) section 786(b)(1)(B)(iv), by sub-
stituting ‘5 percent’ for ‘15 percent’; and 
‘‘(vi) section 786(b)(1)(B)(v), by sub-
stituting ‘5 percent’ for ‘20 percent’. 
‘‘(D) TIER
V.—With respect to a State 
that is eligible for relief under tier V, the Sec-
retary shall apply— 
‘‘(i) section 786(a)(1)(B)(ii), by sub-
stituting ‘100 percent’ for ‘95 percent’; 
‘‘(ii) section 786(a)(1)(B)(iii), by sub-
stituting ‘100 percent’ for ‘90 percent’; 
‘‘(iii) section 786(a)(1)(B)(iv), by sub-
stituting ‘100 percent’ for ‘85 percent’; 
‘‘(iv) section 786(a)(1)(B)(v), by sub-
stituting ‘100 percent’ for ‘80 percent’; 
‘‘(v) section 786(b)(1)(B)(ii), by sub-
stituting ‘0 percent’ for ‘5 percent’; 
‘‘(vi) section 786(b)(1)(B)(iii), by sub-
stituting ‘0 percent’ for ‘10 percent’; 
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‘‘(vii) section 786(b)(1)(B)(iv), by 
substituting ‘0 percent’ for ‘15 percent’; 
and 
‘‘(viii) section 786(b)(1)(B)(v), by 
substituting ‘0 percent’ for ‘20 percent’. 
‘‘(2) APPLICABLE AWARD YEARS.—With respect 
to each State eligible for relief under tier II, III, IV, 
or V, the Secretary shall provide the relief under 
paragraph (1) in accordance with subsection (c) 
for— 
‘‘(A) the award year for which the deter-
mination of the State’s eligibility for such relief 
is made; 
‘‘(B) the award year succeeding the award 
year described in subparagraph (A); or 
‘‘(C) both such award years. 
‘‘(3) STATE ELIGIBILITY.—A State’s eligibility 
for relief under this section shall be determined as 
follows: 
‘‘(A) TIER I.—A State shall be eligible for 
relief under tier I for a fiscal year for which— 
‘‘(i) the State is in an elevated unem-
ployment period at any point in the fiscal 
year; and 
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‘‘(ii) the State is not eligible for relief 
under any other tier. 
‘‘(B) TIER II.—A State shall be eligible for 
relief under tier II for a fiscal or award year, 
as applicable, for which— 
‘‘(i)(I) the State average unemploy-
ment rate is equal to or greater than 6.5 
percent, but less than 7.5 percent, at any 
point in the fiscal or award year; or 
‘‘(II) the national average unemploy-
ment rate is equal to or greater than 6.5 
percent, but less than 7.5 percent, at any 
point in the fiscal or award year; and 
‘‘(ii) the State is not eligible for relief 
under tier III, IV, or V. 
‘‘(C) TIER III.—A State shall be eligible 
for relief under tier III for a fiscal or award 
year, as applicable, for which— 
‘‘(i)(I) the State average unemploy-
ment rate is equal to or greater than 7.5 
percent, but less than 8.5 percent, at any 
point in the fiscal or award year; or 
‘‘(II) the national average unemploy-
ment rate is equal to or greater than 7.5 
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percent, but less than 8.5 percent, at any 
point in the fiscal or award year; and 
‘‘(ii) the State is not eligible for relief 
under tier IV or V. 
‘‘(D) TIER IV.—A State shall be eligible 
for relief under tier IV for a fiscal or award 
year, as applicable, for which— 
‘‘(i)(I) the State average unemploy-
ment rate is equal to or greater than 8.5 
percent, but less than 9.5 percent, at any 
point in the fiscal or award year; or 
‘‘(II) the national average unemploy-
ment rate is equal to or greater than 8.5 
percent, but less than 9.5 percent, at any 
point in the fiscal or award year; and 
‘‘(ii) the State is not eligible for relief 
under tier V. 
‘‘(E) TIER V.—A State shall be eligible for 
relief under tier V for a fiscal or award year, 
as applicable, for which— 
‘‘(i) the State average unemployment 
rate is equal to or greater than 9.5 percent 
at any point in the fiscal or award year; or 
‘‘(ii) the national average unemploy-
ment rate is equal to or greater than 9.5 
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percent at any point in the fiscal or award 
year. 
‘‘(c) DISCRETION IN THE PROVISION OF RELIEF.— 
In determining the fiscal years for which to provide relief 
in accordance with subsection (a)(2), or the award years 
for which to provide relief in accordance with subsection 
(b), to a State that is eligible under tier II, III, IV or 
V, the Secretary shall take into account the following: 
‘‘(1) In the case of a State that requests relief 
under subsection (a)(2), the fiscal years for which 
the State requests such relief, including— 
‘‘(A) if the State requests such relief for 
the fiscal year for which the determination of 
the State’s eligibility for such relief is made, the 
amount by which the State is unable to meet 
the requirements of section 787(b) for such fis-
cal year; and 
‘‘(B) if the State requests such relief for 
the fiscal year succeeding the year described in 
subparagraph (A), the amount by which the 
State anticipates being unable to meet such re-
quirements for such succeeding fiscal year. 
‘‘(2) In the case of a State that requests relief 
under subsection (b), the award years for which the 
State requests such relief, including— 
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‘‘(A) if the State requests such relief for 
the award year for which the determination of 
the State’s eligibility for such relief is made, the 
extent to which the State is unable to meet the 
requirements of section 786(b)(1)(B) for such 
award year; and 
‘‘(B) if the State requests such relief for 
the award year succeeding the year described in 
subparagraph (A), the extent to which the State 
anticipates being unable to meet such require-
ments for such succeeding award year. 
‘‘(3) The actual or anticipated timing, severity, 
and duration of the unemployment rate increase 
during— 
‘‘(A) the fiscal or award year, as applica-
ble, for which the determination of the State’s 
eligibility for such relief is made; 
‘‘(B) the fiscal or award year, as applica-
ble, succeeding the fiscal or award year de-
scribed in subparagraph (A); and 
‘‘(C) the fiscal or award year, as applica-
ble, preceding the fiscal or award year described 
in subparagraph (A). 
‘‘(4) Other factors determined to be relevant by 
the Secretary. 
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‘‘(d) CONTINUED PAYMENT
TO EMPLOYEES.—A 
State that receives relief under subsection (a) or sub-
section (b) shall, to the greatest extent practicable, con-
tinue to pay its employees of, and contractors with, public 
institutions of higher education in the State during the 
period in which the State is receiving such relief. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) ELEVATED
UNEMPLOYMENT
PERIOD.— 
The term ‘elevated unemployment period’ means a 
consecutive 3-month period in a fiscal year in which 
the State average unemployment rate is not less 
than 0.5 percentage points above the lowest State 
average unemployment rate for the 12-month period 
preceding such 3-month period. 
‘‘(2) 
NATIONAL
AVERAGE
UNEMPLOYMENT 
RATE.—The term ‘national average unemployment 
rate’ means the average (seasonally adjusted) rate of 
total unemployment in all States for a consecutive 3- 
month period in a fiscal year, based on data from 
the Bureau of Labor Statistics of the Department of 
Labor. 
‘‘(3) QUALIFYING SPENDING REQUIREMENT.— 
The term ‘qualifying spending requirement’ means 
the requirement that a State not disproportionately 
decrease spending for any of the categories described 
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in subparagraphs (1) through (3) of section 787(b) 
relative to such State’s overall, average decrease in 
spending for the 3 consecutive preceding fiscal years. 
‘‘(4) STATE AVERAGE UNEMPLOYMENT RATE.— 
The term ‘State average unemployment rate’ means 
the average (seasonally adjusted) rate of total unem-
ployment in a State for a consecutive 3-month pe-
riod in a fiscal year. 
‘‘SEC. 789. APPLICATIONS. 
‘‘In order to receive a grant under this subpart, a 
State or Tribal College or University shall submit an ap-
plication to the Secretary at such time, in such manner, 
and containing such information as the Secretary may re-
quire. In the case of a State, such application shall be 
submitted by the State agency with jurisdiction over high-
er education or another agency designated by the Gov-
ernor or chief executive of the State to administer the pro-
gram under this subpart. 
‘‘SEC. 790. USE OF FUNDS. 
‘‘(a) IN GENERAL.—A State or Tribal College or Uni-
versity that receives a grant under this subpart shall use 
the grant funds and the State share funds required under 
this subpart— 
‘‘(1) to fully eliminate tuition and required fees 
for all eligible students at community colleges in the 
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State or at the Tribal College or University, if the 
Tribal College or University is a 2-year Tribal Col-
lege or University; and 
‘‘(2) to fully eliminate tuition and required fees 
for eligible students, as described in section 
787(a)(3), at public 4-year institutions of higher 
education in the State or at the Tribal College or 
University, if the Tribal College or University is a 
4-year Tribal College or University. 
‘‘(b) REMAINING FUNDS.—Once tuition and required 
fees have been fully eliminated pursuant to subsection (a), 
a State or Tribal College or University that receives a 
grant under this subpart shall use any remaining grant 
funds to reduce the cost of attendance and increase the 
quality of instruction and student support services at pub-
lic institutions of higher education in the State or at the 
Tribal College or University by carrying out any of the 
following: 
‘‘(1) Providing additional non-loan financial aid 
to students to help reduce unmet need, which may 
include need-based student financial aid or emer-
gency financial aid grants to students attending a 
public institution of higher education in such State, 
or such Tribal College or University, for any compo-
nent of such students’ cost of attendance. 
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‘‘(2) Implementing evidence-based reforms or 
practices at public institutions of higher education in 
such State or at such Tribal College or University 
that are described in section 804 or that meet evi-
dence tier 1 or evidence tier 2 (as defined in section 
800) to improve the enrollment, retention, transfer, 
or completion rates or labor market outcomes among 
the students described in section 802(b). 
‘‘(3) Expanding academic course offerings and 
providing high-quality occupational skills training 
programs to students. 
‘‘(4) Increasing the number and percentage of 
tenure or tenure-track faculty. 
‘‘(5) Providing all faculty with professional sup-
ports to help students succeed, such as professional 
development opportunities, including providing— 
‘‘(A) culturally inclusive and identity-safe 
learning environments; 
‘‘(B) work spaces; and 
‘‘(C) shared governance in the institution. 
‘‘(6) Compensating part-time faculty for work 
done outside of the classroom relating to supporting 
student success, such as holding office hours. 
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‘‘(7) Strengthening, and ensuring all students 
have access to, student support services, such as 
academic advising, counseling, and tutoring. 
‘‘(8) Expanding access to dual or concurrent 
enrollment programs and early college high school 
programs. 
‘‘(9) Establishing prison education programs in 
partnership with local or State correctional facilities. 
‘‘(10) Carrying out any other additional activi-
ties that improve instructional quality and academic 
outcomes for students as approved by the Secretary 
through a peer review process. 
‘‘(c) PROHIBITION.—A State or Tribal College or 
University that receives a grant under this subpart may 
not use grant funds or State share funds required under 
this subpart— 
‘‘(1) for the construction of a nonacademic fa-
cility, such as a student center or stadium; 
‘‘(2) for merit-based student financial aid; 
‘‘(3) for need-based student financial aid (ex-
cept to the extent funds are available under section 
786(c)(3)); 
‘‘(4) to pay the salaries or benefits of school ad-
ministrators; 
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‘‘(5) for capital outlays or deferred mainte-
nance; or 
‘‘(6) for expenditures on athletics other than 
activities open to all members of the campus com-
munity. 
‘‘(d) SUPPLEMENT, NOT SUPPLANT.—Except as pro-
vided in section 786(b)(2)(A), funds made available under 
this subpart shall be used to supplement, and not sup-
plant, other Federal, State, Tribal, local, and institutional 
funds that would otherwise be expended to carry out ac-
tivities described in this subpart. 
‘‘(e) CONTINUATION OF FUNDING.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a State or a Tribal College or University 
receiving a grant under this subpart for an award 
year may continue to receive funding under this sub-
part for subsequent award years conditioned on 
meeting the requirements of the grant, as deter-
mined by the Secretary. 
‘‘(2) DISCONTINUATION.—The Secretary shall 
discontinue or reduce funding of the Federal share 
of a grant under this subpart if the State or Tribal 
College or University has violated the terms of the 
grant. 
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‘‘(f) RULE
OF CONSTRUCTION REGARDING BIE 
FUNDS.—Nothing in this subpart shall be construed to 
impact the availability of funds from, or uses of funds pro-
vided by, the Bureau of Indian Education for Tribal Col-
leges and Universities. 
‘‘SEC. 791. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated, and there are appropriated, to carry out this 
subpart— 
‘‘(1) such sums as may be necessary for the 
fourth quarter of fiscal year 2026; and 
‘‘(2) such sums as may be necessary for each 
of the fiscal years 2027 through 2035. 
‘‘(b) SUPPLEMENTAL FUNDS.— 
‘‘(1) IN
GENERAL.—In addition to amounts 
otherwise available, there is appropriated for fiscal 
year 2026, out of any money in the Treasury not 
otherwise appropriated, not more than $9,844 per 
student enrolled at 4-year public institutions of high-
er education and not more than $6,073 per student 
enrolled at community colleges, to remain available 
until September 30, 2031, for the Secretary to 
award grants to all States that have resident tuition 
and fees at community colleges or public 4-year in-
stitutions of higher education that are higher than 
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the national average tuition and fees at community 
colleges or public 4-year institutions of higher edu-
cation in award year 2026–2027, for the purpose of 
supporting such States’ ability to participate in the 
program under this subpart. 
‘‘(2) 
STATE
SHARE.—Notwithstanding 
any 
other provision of this subpart, a State receiving 
grant funds under paragraph (1) shall use such 
funds to meet the State share requirement under 
section 786(b) and to fully eliminate tuition and fees 
for eligible students as required under paragraphs 
(2) and (3) of section 787(a).’’. 
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TITLE II—GRANT PROGRAM TO 
ELIMINATE 
TUITION 
AND 
FEES 
FOR 
ELIGIBLE 
STU-
DENTS 
AT 
PRIVATE 
NON-
PROFIT 
HISTORICALLY 
BLACK COLLEGES AND UNI-
VERSITIES 
AND 
MINORITY- 
SERVING INSTITUTIONS 
SEC. 201. GRANT PROGRAM TO ELIMINATE TUITION AND 
FEES FOR ELIGIBLE STUDENTS AT PRIVATE 
NONPROFIT 
HISTORICALLY 
BLACK 
COL-
LEGES AND UNIVERSITIES AND MINORITY- 
SERVING INSTITUTIONS. 
Part F of title VII of the Higher Education Act of 
1965, as added by section 101, is further amended by add-
ing at the end the following: 
‘‘Subpart 2—Grant Program To Eliminate Tuition 
and Fees for Eligible Students at Private Non-
profit Historically Black Colleges and Univer-
sities and Minority-Serving Institutions 
‘‘SEC. 795. DEFINITIONS. 
‘‘In this subpart: 
‘‘(1) ELIGIBLE INSTITUTION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (E), the term ‘eligible institution’ 
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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) an Alaska Native-serving 
institution (as defined in section 
317(b)); 
‘‘(IV) a Native Hawaiian-serving 
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)); and 
‘‘(ii) has not received funds under 
subpart 1. 
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‘‘(B) CONTINUING ELIGIBILITY.—The Sec-
retary shall determine whether an institution is 
an ‘eligible institution’ under subparagraph (A) 
based on the most recent data available, and 
shall review such determination annually to en-
sure that the institution continues to meet the 
requirements for participation under this sub-
part. 
‘‘(C) 2-YEAR INSTITUTION.—The term ‘2- 
year institution’ means an institution at which 
an associate degree is the most frequently 
awarded degree. 
‘‘(D) 4-YEAR INSTITUTION.—The term ‘4- 
year institution’ means an institution of higher 
education (as defined under section 101(a)) 
that is not a 2-year institution. 
‘‘(E) 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 
clause (ii) if such institution was a for- 
profit institution at any time that con-
verted to a nonprofit institution. 
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‘‘(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 being a for-profit institution to a 
nonprofit institution or 25 years after the 
date of enactment of this subpart, which-
ever period is longer. 
‘‘(2) 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 subpart, if the stu-
dent— 
‘‘(I) is a dependent student— 
‘‘(aa) in a single parent 
household, the student’s parent’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 
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of the award year is equal to or 
less than $150,000; or 
‘‘(bb) with married parents, 
the student’s parents’ adjusted 
gross income for the taxable year 
that is 1 year prior to the taxable 
year that ends immediately prior 
to the beginning of the award 
year is equal to or less than 
$300,000; and 
‘‘(II) is a— 
‘‘(aa) 
single 
independent 
student, the student’s adjusted 
gross income for the taxable year 
that is 1 year prior to the taxable 
year that ends immediately prior 
to the beginning of the award 
year is equal to or less than 
$150,000; or 
‘‘(bb) married independent 
student, the student’s adjusted 
gross income for the taxable year 
that is 1 year prior to the taxable 
year that ends immediately prior 
to the beginning of the award 
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year is equal to or less than 
$300,000; and 
‘‘(ii) for each award year after the 
first award year of the program under this 
subpart, 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 
the award year is equal to or less than 
the applicable amount. 
‘‘(B) APPLICABLE AMOUNT.—In this para-
graph, the term ‘applicable amount’ means an 
amount equal to, for any award year beginning 
after the first award year of the program under 
this subpart, the income amount determined 
under this paragraph for the preceding award 
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year adjusted in the same manner as income is 
adjusted under section 478(b). 
‘‘(3) 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. 
‘‘SEC. 796. AUTHORIZATION OF GRANT PROGRAM. 
‘‘Beginning with award year 2026–2027, from 
amounts appropriated to carry out this subpart for any 
fiscal year, the Secretary shall award grants to eligible in-
stitutions to enable the eligible institutions to eliminate 
tuition and required fees for eligible students. 
‘‘SEC. 797. GRANT TERMS. 
‘‘(a) GRANT AMOUNT.— 
‘‘(1) IN GENERAL.—For each year for which an 
eligible institution participates in the grant program 
under this subpart, such eligible institution shall re-
ceive a grant in an amount equal to— 
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‘‘(A) in the case of an eligible institution 
that is a 2-year institution, the product of the 
number of eligible students enrolled in such in-
stitution multiplied by— 
‘‘(i) for the 2026–2027 award year, 
$5,110; and 
‘‘(ii) for each subsequent award year, 
the amount determined under this sub-
paragraph for the preceding award year, 
increased by the lesser of— 
‘‘(I) a percentage equal to the es-
timated percentage increase in the 
Consumer Price Index (as determined 
by the Secretary) since the date of 
such determination; or 
‘‘(II) 3 percent; or 
‘‘(B) in the case of an eligible institution 
that is a 4-year institution, the product of the 
number of eligible students enrolled in such in-
stitution multiplied by— 
‘‘(i) for the 2026–2027 award year, 
$11,610; and 
‘‘(ii) for each subsequent award year, 
the amount determined under this sub-
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paragraph for the preceding award year, 
increased by the lesser of— 
‘‘(I) a percentage equal to the es-
timated percentage increase in the 
Consumer Price Index (as determined 
by the Secretary) since the date of 
such determination; or 
‘‘(II) 3 percent. 
‘‘(2) LIMITATIONS ON TUITION HIKES.— 
‘‘(A) FIRST AWARD YEAR.—For the first 
award year for which an eligible institution ap-
plies for a grant under this subpart, such eligi-
ble institution shall not increase tuition and re-
quired fees at a rate that is greater than any 
annual increase in tuition and required fees at 
the eligible institution for the 5 years preceding 
such first award year. 
‘‘(B) SUCCEEDING AWARD YEARS.— 
‘‘(i) IN
GENERAL.—For each award 
year after the first award year for which 
an eligible institution receives a grant 
under this subpart, such eligible institution 
shall not increase tuition and required fees 
from the preceding award year at a rate 
that is greater than the percentage in-
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crease in the Employment Cost Index for 
the award year for which the grant is re-
ceived, as compared to the Employment 
Cost Index for the award year preceding 
the award year for which the grant is re-
ceived. 
‘‘(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 eligi-
ble institution is located, as provided by 
the Bureau of Labor Statistics of the De-
partment of Labor, that is provided for the 
December that immediately precedes the 
start of the award year. 
‘‘(3) DATA ADJUSTMENTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
establish a process through which each eligible 
institution that participates in the program 
under this subpart— 
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‘‘(i) provides the necessary eligible 
student enrollment data at the start of the 
award year; and 
‘‘(ii) initially receives grant funds, as 
calculated under this subsection, based on 
such data. 
‘‘(B) ADJUSTMENT OF GRANT AMOUNT.— 
For each year for which an eligible institution 
receives a grant under this subpart, the Sec-
retary shall, once final enrollment data for such 
year are available— 
‘‘(i) in consultation with the eligible 
institution concerned, determine the actual 
number of full-time equivalent eligible stu-
dents for the year covered by the grant; 
and 
‘‘(ii) adjust the grant amount received 
by the eligible institution to reflect the ac-
tual number of full-time equivalent eligible 
students by applying the relevant adjust-
ment to such grant amount in the subse-
quent award year in accordance with sub-
paragraph (C). 
‘‘(C) CALCULATION OF ADJUSTMENTS.—If 
the actual full-time equivalent eligible students 
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figure for the preceding award year reported 
under subparagraph (B)— 
‘‘(i) exceeds the projected enrollment 
that was used for determining the allot-
ment under paragraph (1) for the pre-
ceding award year, notwithstanding any 
other provision of this Act, the grant 
amount for the subsequent award year for 
the eligible institution shall be increased to 
reflect such actual enrollment, which figure 
shall be increased by the Gross Domestic 
Product Price Index of the State in which 
the eligible institution is located; or 
‘‘(ii) is below the projected enrollment 
that was used for determining the allot-
ment under paragraph (1) for the pre-
ceding award year, notwithstanding any 
other provision of this Act, the grant 
amount for the subsequent award year for 
the eligible institution shall be decreased to 
reflect such actual enrollment, which figure 
shall be increased by the average interest 
rate on 5-year United States Treasury se-
curities issued during the preceding award 
year. 
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‘‘(b) APPLICATION.—An eligible institution that de-
sires to receive a grant under this subpart shall submit 
to the Secretary an application at such time, in such man-
ner, and containing such information as the Secretary may 
require. 
‘‘(c) TRANSFER REQUIREMENT.—In the case of an 
eligible institution that is a 4-year institution that receives 
a grant under this subpart and enrolls students who trans-
fer from another institution, the institution shall— 
‘‘(1) commit to increasing the transferability of 
individual courses within certificate or associate pro-
grams offered by community colleges in the State to 
related baccalaureate programs offered by such insti-
tution to maximize the transferability of credits for 
students who transfer before completing an associate 
degree; and 
‘‘(2) maintain a formal, statewide articulation 
agreement with community colleges in the State in 
which such institution operates that, at a minimum, 
ensures that associate degrees awarded by commu-
nity colleges in the State are fully transferable to, 
and credited as the first 2 years of related bacca-
laureate programs at, such institution. 
‘‘(d) USE OF FUNDS.— 
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‘‘(C) to pay the salaries or benefits of 
school administrators; 
‘‘(D) for capital outlays or deferred main-
tenance; or 
‘‘(E) for expenditures on athletics other 
than activities open to all members of the cam-
pus community. 
‘‘(3) EXCEPTION.—An eligible institution that 
receives a grant under this subpart and that does 
not have authority to set the tuition and required 
fees for eligible students enrolled in the eligible insti-
tution shall provide tuition assistance to eligible stu-
dents enrolled in the eligible institution during any 
period for which the institution receives a grant 
under this subpart in an amount equal to the grant 
amount determined under subsection (a)(1). 
‘‘(e) ASSURANCES.—An eligible institution that re-
ceives a grant under this subpart shall provide an assur-
ance to the Secretary that the institution will— 
‘‘(1) increase, to the extent practicable, the 
amount of instruction provided by tenured or tenure- 
track faculty; and 
‘‘(2) not adopt policies to reduce enrollment. 
‘‘(f) SUPPLEMENT, NOT SUPPLANT.—Funds made 
available to carry out this subpart shall be used to supple-
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ment, and not supplant, other Federal, State, Tribal, 
local, and institutional funds that would otherwise be ex-
pended to carry out activities under this subpart. 
‘‘(g) 
NO
ADDITIONAL
ELIGIBILITY
REQUIRE-
MENTS.—No individual shall be determined, by an eligible 
institution or the Secretary, to be ineligible for benefits 
provided under this subpart except on the basis of eligi-
bility requirements under this subpart. 
‘‘SEC. 798. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated, and there 
are appropriated, to carry out this subpart— 
‘‘(1) such sums as may be necessary for the 
fourth quarter of fiscal year 2026; and 
‘‘(2) such sums as may be necessary for each 
of the fiscal years 2027 through 2035.’’. 
SEC. 
202. 
NORTHERN 
MARIANA 
ISLANDS, 
AMERICAN 
SAMOA, UNITED STATES VIRGIN ISLANDS, 
GUAM, AND FREELY ASSOCIATED STATES 
COLLEGE ACCESS. 
Part F of title VII of the Higher Education Act of 
1965, as added by section 101 and amended by section 
201, is further amended by adding at the end the fol-
lowing: 
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‘‘Subpart 3—College Access for Students in Outlying 
Areas 
‘‘SEC. 
799. 
NORTHERN 
MARIANA 
ISLANDS, 
AMERICAN 
SAMOA, UNITED STATES VIRGIN ISLANDS, 
GUAM, AND FREELY ASSOCIATED STATES 
COLLEGE ACCESS. 
‘‘(a) GRANTS.— 
‘‘(1) GRANT AMOUNTS.— 
‘‘(A) IN GENERAL.—Beginning with award 
year 2026–2027, from amounts appropriated to 
carry out this section, the Secretary shall award 
grants to the Governors of each outlying area 
for such Governors to award grants to eligible 
institutions that enroll eligible students to pay 
the difference between the tuition and fees 
charged for in-State students and the tuition 
and fees charged for out-of-State students on 
behalf of each eligible student enrolled in the el-
igible institution. 
‘‘(B) MAXIMUM STUDENT AMOUNTS.—The 
amount paid on behalf of an eligible student 
under this section shall be— 
‘‘(i) not more than $15,950 for any 
one award year (as defined in section 
481(a)(1)); and 
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‘‘(ii) not more than $79,750 in the 
aggregate. 
‘‘(C) PRORATION.—The Governor shall 
prorate payments under this section with re-
spect to eligible students who attend an eligible 
institution on less than a full-time basis. 
‘‘(2) AGREEMENT.—Each Governor desiring a 
grant under this section shall enter into an agree-
ment with the Secretary for the purposes of admin-
istering the grant program. 
‘‘(b) 
NO
ADDITIONAL
ELIGIBILITY
REQUIRE-
MENTS.—No individual shall be determined, by a Gov-
ernor, an eligible institution, or the Secretary, to be ineli-
gible for benefits provided under this section except on the 
basis of eligibility requirements under this section. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE INSTITUTION.—The term ‘eligi-
ble institution’ means an institution that— 
‘‘(A) is a public 4-year institution of higher 
education located in 1 of the several States of 
the United States, the District of Columbia, the 
Commonwealth of Puerto Rico, or an outlying 
area; 
‘‘(B) enters into an agreement with the 
Governor of an outlying area, or with 2 or more 
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of such Governors (except that such institution 
may not enter into an agreement with the Gov-
ernor of the outlying area in which such institu-
tion is located), to carry out the grant program 
under this section; and 
‘‘(C) submits an assurance to the Governor 
and to the Secretary that the institution shall 
use funds made available under this section to 
supplement, and not supplant, assistance that 
otherwise would be provided to eligible students 
from outlying areas. 
‘‘(2) ELIGIBLE STUDENT.—The term ‘eligible 
student’ means a student who— 
‘‘(A) was domiciled in an outlying area for 
not less than 12 consecutive months preceding 
the commencement of the freshman year at an 
institution of higher education; 
‘‘(B) has not completed an undergraduate 
baccalaureate course of study; and 
‘‘(C) is enrolled as an undergraduate stu-
dent in an eligible program (as defined in sec-
tion 481(b)) on at least a half-time basis. 
‘‘(3) GOVERNOR.—The term ‘Governor’ means 
the chief executive of an outlying area. 
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