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calaureate degree, associate’s degree, or certificate 
program of study at an eligible institution, to award 
such students not more than two Pell grants during 
an award year to permit such students to accelerate 
progress toward their degree or certificate objectives 
by enrolling in courses for more than 2 semesters, 
or 3 quarters, or the equivalent, in a given academic 
year.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall be effective July 1, 2009. 
(f) ACADEMIC COMPETITIVENESS GRANTS.—Section 
401A (as amended by section 8003 of Public Law 109– 
171) is amended— 
(1) in subsection (c)(3)(A)(ii), by inserting ‘‘, 
except as part of a secondary school program of 
study’’ before the semicolon; 
(2) by redesignating subsection (g) as sub-
section (h); and 
(3) by inserting after subsection (f) the fol-
lowing new subsection: 
‘‘(g) DETERMINATION OF ACADEMIC YEAR.—Not-
withstanding section 481(a)(2), for the purpose of deter-
mining eligibility for a grant under this section, a student 
shall be considered to be enrolled or accepted for enroll-
ment in the first, second, third, or fourth academic year 
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of a program of undergraduate education based on the 
student’s class standing, as determined by the institution 
of higher education at which the student is enrolled or ac-
cepted for enrollment.’’. 
(g) ELIGIBILITY FOR ACADEMIC COMPETITIVENESS 
GRANTS.—Section 401A is further amended— 
(1) in subsection (c)— 
(A) by striking ‘‘full–time’’; and 
(B) by amending paragraph (1) to read as 
follows: 
‘‘(1) is an eligible student under section 484, 
including being enrolled or accepted for enrollment 
in a degree, certificate, or other eligible program 
leading to a recognized educational credential at an 
institution of higher education;’’; and 
(2) in subsection (d), by adding at the end the 
following new paragraph: 
‘‘(3) ADJUSTMENT FOR LESS THAN FULL-TIME 
ENROLLMENT.—A grant awarded under this section 
to an eligible student who attends an eligible institu-
tion on a less than full-time (but at least half-time 
or more) basis shall be reduced in the same propor-
tion as would a Federal Pell Grant pursuant to sec-
tion 401(b)(2)(B).’’. 
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SEC. 102. SUPPORT FOR WORKING STUDENTS. 
(a) DEPENDENT STUDENTS.—Subparagraph (D) of 
section 475(g)(2) (20 U.S.C. 1087oo)(g)(2)(D)) is amend-
ed to read as follows: 
‘‘(D) an income protection allowance of 
$3,750 (or a successor amount prescribed by 
the Secretary under section 478);’’. 
(b) INDEPENDENT STUDENTS WITHOUT DEPEND-
ENTS OTHER THAN A SPOUSE.—Clause (iv) of section 
476(b)(1)(A) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended 
to read as follows: 
‘‘(iv) an income protection allowance 
of the following amount (or a successor 
amount prescribed by the Secretary under 
section 478)— 
‘‘(I) for single or separated stu-
dents, or married students where both 
are enrolled pursuant to subsection 
(a)(2), $6,690; and 
‘‘(II) for married students where 
1 is enrolled pursuant to subsection 
(a)(2), $10,720;’’. 
(c) UPDATED
TABLES
AND
AMOUNTS.—Section 
478(b) (20 U.S.C. 1087rr(b)) is amended— 
(1) in paragraph (1)— 
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(A) by striking ‘‘REVISED TABLES.—For 
each’’ and inserting ‘‘REVISED TABLES.— 
‘‘(A) IN GENERAL.—For each’’; 
(B) in subparagraph (A) (as designated by 
subparagraph (A)), in the third sentence— 
(i) by striking ‘‘preceding sentence’’ 
and inserting ‘‘subparagraph (A)’’; and 
(ii) by striking ‘‘For the 2007–2008’’ 
and inserting the following: 
‘‘(B) SPECIAL RULE FOR 2007–2008 ACA-
DEMIC YEAR.—For the 2007–2008’’; and 
(C) by adding at the end the following: 
‘‘(C) 
SPECIAL
RULE
FOR
2009–2010 
THROUGH
2012–2013
ACADEMIC
YEARS.—For 
the 2009–2010 academic year, and for each of 
the 3 succeeding academic years, the Secretary 
shall revise the tables in accordance with this 
paragraph, except that, for the table in section 
477(b)(4), the Secretary shall revise such table 
by increasing the amounts contained in such 
table for the preceding academic year by 10 
percent.’’; and 
(2) in paragraph (2), by striking ‘‘shall be de-
veloped’’ and all that follows through the period at 
the end and inserting ‘‘shall be developed— 
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‘‘(A) for academic year 2008–2009, by in-
creasing each of the dollar amounts contained 
in such section as such section was in effect on 
the day before the date of enactment of the Col-
lege Cost Reduction Act of 2007 by a percent-
age equal to the estimated percentage increase 
in the Consumer Price Index (as defined in sec-
tion 478(f)) between December 2006 and the 
December next preceding the beginning of such 
academic year, and rounding the result to the 
nearest $10; 
‘‘(B) for each of the academic years 2010– 
2011 and 2011–2012, by increasing each of the 
amounts determined under this paragraph for 
the preceding academic year by 10 percent; and 
‘‘(C) for each academic year after 2012– 
2013, by increasing each of the dollar amounts 
determined under this paragraph for academic 
year 2012–2013 by a percentage equal to the 
estimated percentage increase in the Consumer 
Price Index (as defined in section 478(f)) be-
tween December 2011 and the December next 
preceding the beginning of such academic year, 
and rounding the result to the nearest $10.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall take effect on July 1, 2009, 
and the amendment made by subsection (c) shall take ef-
fect on July 1, 2008. 
SEC. 103. SIMPLIFIED NEEDS TEST AND AUTOMATIC ZERO 
IMPROVEMENTS. 
(a) SIMPLIFIED NEEDS TEST.—Section 479 (20 
U.S.C. 1087ss) is amended— 
(1) in subsection (b)— 
(A) in paragraph (1)(A)(i)— 
(i) in subclause (II), by striking ‘‘or’’ 
after the semicolon; 
(ii) by redesignating subclause (III) as 
subclause (IV); 
(iii) by inserting after subclause (II) 
the following: 
‘‘(III) 1 of whom is a dislocated 
worker; or’’; and 
(iv) in subclause (IV) (as redesignated 
by clause (ii)), by striking ‘‘12-month’’ and 
inserting ‘‘24-month’’; and 
(B) in paragraph (1)(B)(i)— 
(i) in subclause (II), by striking ‘‘or’’ 
after the semicolon; 
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