in the State or at 2-year Tribal Colleges and 
Universities of the eligible Indian entity; and 
‘‘(B) to eliminate tuition and required fees 
for working class and middle class eligible stu-
dents, as described in subsection (d)(3), at pub-
lic 4-year institutions of higher education in the 
State or 4-year Tribal Colleges and Universities 
of the eligible Indian entity. 
‘‘(2) ADDITIONAL FUNDING.—Once tuition and 
required fees have been eliminated pursuant to para-
graph (1), a State or eligible Indian entity that re-
ceives a grant under this section shall use any re-
maining grant funds and non-Federal share funds 
required under this section to reduce the cost of at-
tendance and increase the quality of instruction and 
student support services at public institutions of 
higher education in the State or at Tribal Colleges 
and Universities of the eligible Indian entity by car-
rying out any of the following: 
‘‘(A) Providing additional non-loan aid to 
students, which may include need-based student 
financial aid, to reduce or eliminate the cost of 
attendance for a public institution of higher 
education or a Tribal College or University be-
yond eliminating tuition and required fees. 
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‘‘(B) Expanding academic course offerings 
and high-quality occupational skills training 
programs to students. 
‘‘(C) Increasing the number and percent-
age of full-time instructional faculty, including 
full-time tenure and tenure-track instructional 
faculty. 
‘‘(D) Providing all faculty with profes-
sional supports to help students succeed, such 
as professional development opportunities, office 
space, and shared governance in the institution. 
‘‘(E) Compensating part-time faculty for 
work done outside of the classroom relating to 
instruction, such as holding office hours. 
‘‘(F) Strengthening and ensuring all stu-
dents have access to student support services 
such as academic advising, counseling, and tu-
toring. 
‘‘(G) Expanding access to dual or concur-
rent enrollment programs and early college high 
school programs. 
‘‘(H) Any other additional activities that 
improve instructional quality and academic out-
comes for students as approved by the Sec-
retary through a peer review process. 
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‘‘(3) PROHIBITION.—A State or eligible Indian 
entity that receives a grant under this section may 
not use grant funds or non-Federal share funds re-
quired under this section— 
‘‘(A) for the construction of a nonacademic 
facility, such as a student center or stadium; 
‘‘(B) for merit-based student financial aid; 
‘‘(C) for need-based student financial aid 
(except to the extent funds available under sub-
section (c)(5) are used to carry out paragraph 
(2)(A)); 
‘‘(D) to pay the salaries or benefits of 
school administrators; 
‘‘(E) for capital outlays or deferred main-
tenance; or 
‘‘(F) for expenditures on athletics other 
than activities open to all members of the cam-
pus community. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated, and there are appropriated, to carry 
out this section— 
‘‘(A) such sums as may be necessary for 
the fourth quarter of fiscal year 2017; 
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‘‘(B) $41,000,000,000 for fiscal year 2018; 
and 
‘‘(C) such sums as may be necessary for 
each of the fiscal years 2019 through 2027. 
‘‘(2) AVAILABILITY OF FUNDS.—Funds made 
available pursuant to paragraph (1)(A) shall be 
available for obligation from October 1, 2016 to Sep-
tember 30, 2017. Funds made available pursuant to 
subparagraph (B) or (C) of paragraph (1) shall be 
available for obligation through September 30 of the 
fiscal year succeeding the fiscal year for which such 
sums were appropriated. 
‘‘SEC. 902. GRANT PROGRAM FOR PRIVATE HISTORICALLY 
BLACK COLLEGES AND UNIVERSITIES AND 
PRIVATE MINORITY-SERVING INSTITUTIONS. 
‘‘(a) DEFINITIONS.—Except as otherwise provided, in 
this section: 
‘‘(1) COMMUNITY COLLEGE.—The term ‘com-
munity college’ has the meaning given the term in 
section 901. 
‘‘(2) ELIGIBLE INSTITUTION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (D), the term ‘eligible institution’ 
means a private, nonprofit 2-year institution or 
4-year institution that— 
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‘‘(i) is— 
‘‘(I) a part B institution (as de-
fined in section 322); 
‘‘(II) a Hispanic-serving institu-
tion (as defined in section 502); 
‘‘(III) a Tribal College or Univer-
sity (as defined in section 316) whose 
entity responsible for the governance, 
operation, or control of the College or 
University has not received a grant 
under section 901; 
‘‘(IV) an Alaska Native-serving 
institution or a Native Hawaiian-serv-
ing institution (as defined in section 
317(b)); 
‘‘(V) a Predominantly Black in-
stitution 
(as 
defined 
in 
section 
371(c)); 
‘‘(VI) an Asian American and 
Native American Pacific Islander- 
serving institution (as defined in sec-
tion 371(c)); or 
‘‘(VII) a Native American-serving 
nontribal institution (as defined in 
section 371(c)); 
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‘‘(ii) has a student body of which not 
less than 35 percent are low-income stu-
dents; 
‘‘(iii) ensures that tuition and re-
quired fees for eligible students enrolled in 
the institution are eliminated or signifi-
cantly reduced during any period for which 
the institution receives a grant under this 
section; 
‘‘(iv) maintains expenditures on in-
struction per a full-time equivalent eligible 
student at levels that meet or exceed the 
expenditures on instruction per a full-time 
equivalent eligible student for award year 
2015–2016; 
‘‘(v) will invest institutional funds and 
seek additional funding to reduce or elimi-
nate tuition and required fees for all stu-
dents; 
‘‘(vi) maintains expenditures on need- 
based financial aid programs for students 
enrolled at the institution at a level that 
meets or exceeds the level of such support 
for award year 2015–2016; 
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‘‘(vii) provides an assurance that the 
institution will increase the amount of in-
struction provided by tenured or tenure- 
track faculty; and 
‘‘(viii) does not adopt policies to re-
duce enrollment. 
‘‘(B) 2-YEAR INSTITUTION.—The term ‘2- 
year institution’ means an institution at which 
the credential that is predominantly awarded to 
students is at the sub-baccalaureate level. 
‘‘(C) 4-YEAR INSTITUTION.—The term ‘4- 
year institution’ means an institution that is 
not a 2-year institution. 
‘‘(D) EXCEPTION.— 
‘‘(i) IN GENERAL.—An eligible institu-
tion as described in subparagraph (A) shall 
not be an eligible institution for purposes 
of this section for the period described in 
clause (ii) if such institution was a for- 
profit institution at any time that con-
verted to a nonprofit institution. 
‘‘(ii) PERIOD OF INELIGIBILITY.—An 
institution described under clause (i) shall 
not be an eligible institution for purposes 
of this section for a period of 25 years 
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from the date the institution converted 
from a for-profit institution to a nonprofit 
institution or 25 years after the date of en-
actment of this Act, whichever period is 
longer. 
‘‘(3) ELIGIBLE STUDENT.—The term ‘eligible 
student’ means a low-income student enrolled in an 
eligible institution who has not obtained a bacca-
laureate degree or a higher degree. 
‘‘(4) FULL-TIME EQUIVALENT ELIGIBLE STU-
DENTS.—The term ‘full-time equivalent eligible stu-
dents’ means the sum of the number of eligible stu-
dents projected to enroll full time at an institution 
for an award year, plus the full-time equivalent of 
the number of eligible students projected to be en-
rolled part time (determined on the basis of the 
quotient of the sum of the credit hours of all part- 
time eligible students divided by 12) at such institu-
tion, for such award year. 
‘‘(5) LOW-INCOME STUDENT.—The term ‘low- 
income student’ has the meaning given such term by 
the Secretary, except that such term shall not ex-
clude any student eligible for a Federal Pell Grant 
under section 401. 
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‘‘(6) PUBLIC 4-YEAR INSTITUTION OF HIGHER 
EDUCATION.—The term ‘public 4-year institution of 
higher education’ has the meaning given the term in 
section 901. 
‘‘(b) AUTHORIZATION OF GRANT PROGRAM.— 
‘‘(1) IN
GENERAL.—From amounts appro-
priated under subsection (e), the Secretary shall 
award grants, from allotments under paragraph (2), 
to eligible institutions having applications approved 
under subsection (c), to enable the eligible institu-
tions to eliminate or significantly reduce tuition and 
required fees for eligible students. 
‘‘(2) ALLOTMENTS.—Subject to paragraph (3), 
the Secretary shall allot, for each award year, to 
each eligible institution having an application ap-
proved under subsection (c), an amount that is equal 
to the product of— 
‘‘(A) tuition and required fees for eligible 
students at the eligible institution for the award 
year, and 
‘‘(B) the number of full-time equivalent eli-
gible students projected to enroll in the eligible 
institution for the award year. 
‘‘(3) LIMITATIONS.— 
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‘‘(A) LIMITATIONS ON INSTITUTIONAL AL-
LOTMENTS.—In making allotments under para-
graph (2) for an award year, the Secretary 
shall not award an allotment that is— 
‘‘(i) with respect to an eligible institu-
tion that operates in a State that has 
eliminated tuition and required fees as de-
scribed in paragraphs (2) and (3) of sec-
tion 901(d) for the preceding award year, 
more than the amount equal to the product 
of— 
‘‘(I) the number of projected full- 
time equivalent eligible students for 
the award year; and 
‘‘(II) the expenditures per full- 
time equivalent eligible student, in-
cluding the Federal allotment and 
non-Federal share, under section 901 
for the preceding award year for the 
State (or, in the case of a State that 
did not receive a grant under such 
section for the preceding award year, 
the amount needed to eliminate tui-
tion and required fees for full-time 
equivalent eligible students in the 
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State, calculated in the same manner 
as such amount is calculated under 
section 901(c) for the preceding 
award year for the State), at— 
‘‘(aa) if the eligible institu-
tion is a 2-year institution, com-
munity colleges in the State in 
which the institution operates; or 
‘‘(bb) if the eligible institu-
tion is a 4-year institution, public 
4-year institutions of higher edu-
cation in the State in which the 
institution operates; and 
‘‘(ii) with respect to an eligible insti-
tution that operates in a State that has 
not eliminated tuition and required fees as 
described in paragraphs (2) and (3) of sec-
tion 901(d) for the preceding award year, 
more than the amount equal to the product 
of— 
‘‘(I) the number of projected full- 
time equivalent eligible students for 
the award year; and 
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‘‘(II) the average tuition and re-
quired fees for the preceding award 
year at— 
‘‘(aa) if the eligible institu-
tion is a 2-year institution, public 
2-year institutions of higher edu-
cation in the State in which the 
institution operates; or 
‘‘(bb) if the eligible institu-
tion is a 4-year institution, public 
4-year institutions of higher edu-
cation in the State in which the 
institution operates. 
‘‘(B) LIMITATIONS ON TUITION HIKES.— 
‘‘(i) FIRST
AWARD
YEAR.—For the 
first award year for which an eligible insti-
tution applies for a grant under this sec-
tion, such eligible institution shall not in-
crease tuition and required fees at a rate 
that is greater than any annual increase in 
tuition and required fees at the eligible in-
stitution for the 5 years preceding such 
first award year. 
‘‘(ii) SUCCEEDING AWARD YEARS.— 
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‘‘(I) IN
GENERAL.—For each 
award year after the first award year 
for which an eligible institution re-
ceives a grant under this section, such 
eligible institution shall not increase 
tuition and required fees for eligible 
students from the preceding award 
year at a rate that is greater than the 
percentage increase in the Employ-
ment Cost Index for the award year 
for which the grant is received, as 
compared to the Employment Cost 
Index for the award year preceding 
the award year for which the grant is 
received. 
‘‘(II) 
EMPLOYMENT
COST 
INDEX.—In this subparagraph, the 
term ‘Employment Cost Index’, when 
used with respect to an award year, 
means the Employment Cost Index 
for total compensation for private in-
dustry workers by bargaining status 
and census region and division (not 
seasonally adjusted) of the division in 
which the eligible entity is located, as 
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