942 
‘‘(4) RECOGNIZED
POSTSECONDARY
CREDEN-
TIAL.—The term ‘recognized postsecondary creden-
tial’ 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 mean-
ing given the term in section 103. 
‘‘(6) UNMET NEED.—The term ‘unmet need’ 
means, with respect to an eligible student, 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, 
provided to such eligible student for the 
year for which the determination is made; 
and 
‘‘(ii) the expected family contribution 
for such eligible student for the year for 
which the determination is made. 
‘‘(f) APPROPRIATIONS.— 
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‘‘(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 fis-
cal 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. 
‘‘(4) TRANSFER AVAILABILITY.—The Secretary 
is authorized, subject to the availability of appro-
priations, to transfer amounts authorized to be ap-
propriated to carry out subpart 1 or to carry out 
section 499T for a fiscal year to make grants under 
this section if— 
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944 
‘‘(A) all grants eligible to be made under 
such subpart have been made for such fiscal 
year; and 
‘‘(B) all grants eligible to be made under 
such section have been made for such fiscal 
year.’’. 
SEC. 4806. TUITION WAIVERS. 
Subpart 4 of part I of title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070 et seq.), as added 
by section 4804, is further amended by adding at the end 
the following: 
‘‘SEC. 499V. TUITION WAIVERS. 
‘‘(a) IN GENERAL.— 
‘‘(1) GRANT PROGRAM.—Subject to paragraph 
(2), from amounts appropriated under subsection (g) 
for any fiscal year, the Secretary may award grants 
to eligible States and Indian tribes to pay the Fed-
eral share of expenditures needed to carry out the 
activities and services described in subsection (d). 
‘‘(2) LIMITATION.—The Secretary may not 
make grants under paragraph (1) in fiscal year un-
less— 
‘‘(A) all grants eligible to be made under 
subpart 1 have been made for such fiscal year; 
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‘‘(B) all grants eligible to be made under 
499T have been made for such fiscal year; and 
‘‘(C) all grants eligible to be made under 
499U 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 fiscal year if such State or Indian tribe re-
ceived— 
‘‘(A) a grant under subpart 1 for such fis-
cal year; 
‘‘(B) a grant under section 499T for such 
fiscal year; and 
‘‘(C) a grant under 499U 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— 
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‘‘(I) for the first award year for 
which grants are made under this sec-
tion, the average resident public 4- 
year institutions of higher education 
tuition and fees per student in all 
States for the most recent year for 
which data are available; and 
‘‘(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 determina-
tion; 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 
Indian tribe are low-income students, the 
amount of the Federal share for such Indian 
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tribe shall be not less than 95 percent of the 
total amount needed to waive tuition and fees 
for all eligible students enrolled in such institu-
tions of higher education. 
‘‘(2) STATE OR TRIBAL SHARE.— 
‘‘(A) FORMULA.— 
‘‘(i) IN GENERAL.—The State or trib-
al share of a grant under this section for 
each fiscal year shall be the amount needed 
to pay 25 percent of the average resident 
public 4-year institutions of higher edu-
cation tuition and fees for eligible students 
in all States in first award year for which 
grants are made under this section for all 
eligible students in the State or Indian 
tribe, respectively, for such fiscal year, ex-
cept as provided in clause (ii). 
‘‘(ii) EXCEPTION
FOR
CERTAIN
IN-
DIAN TRIBES.—In the case of an Indian 
tribe described in paragraph (1)(B), the 
amount of such Indian tribe’s tribal share 
shall not exceed 5 percent of the total 
amount needed to waive tuition and fees 
for all eligible students enrolled in the in-
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948 
stitutions of higher education described in 
such paragraph. 
‘‘(B) NEED-BASED AID.—A State or In-
dian 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 an eligible student; and 
‘‘(ii) may be used by such student to 
pay costs of attendance other than tuition 
and fees. 
‘‘(3) DETERMINING NUMBER OF ELIGIBLE STU-
DENTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
develop and implement a process for accurately 
estimating the number of eligible students 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 eligible students in 
a State or Indian tribe shall be considered to be 
equal to the number of eligible students that 
were in the State or tribe for the preceding 
school year. 
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950 
‘‘(d) GENERAL REQUIREMENTS.—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 public 4-year institution of higher edu-
cation resident tuition and fees charged to an eligi-
ble student in the State or Indian tribe shall be $0. 
‘‘(2) For each year of the grant no amount of 
financial assistance for which an eligible student 
qualifies may be applied to such tuition or fees. 
‘‘(e) ALLOWABLE USES OF FUNDS.— 
‘‘(1) IN
GENERAL.—A State or Indian tribe 
shall use a grant under this section only to provide 
funds to participating public 4-year institutions to 
enable such public 4-year institutions to waive resi-
dent tuition and fees for eligible students as required 
under subsection (d). 
‘‘(2) ANNUAL
REPORT.—A State or Indian 
tribe receiving a grant under this section shall sub-
mit 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 rec-
ognized postsecondary credentials at institutions of 
higher education in the State or Indian tribe, includ-
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951 
ing such rates disaggregated by race, income, and 
age, and including any other information as the Sec-
retary may require. 
‘‘(3) REPORTING
BY
THE
SECRETARY.—The 
Secretary 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 Rep-
resentatives containing the analysis described in 
subparagraph (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 regard-
ing the promising and evidence-based institutional 
reforms and innovative practices to improve student 
outcomes and shall disseminate such best practices 
among the States and Indian tribes. 
‘‘(5) CONTINUATION OF FUNDING.— 
‘‘(A) IN
GENERAL.—A State or Indian 
tribe receiving a grant under this section for a 
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952 
fiscal year may continue to receive funding 
under this section for future fiscal years condi-
tioned 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. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE STUDENT.— 
‘‘(A) DEFINITION.—The term ‘eligible stu-
dent’ means a student who— 
‘‘(i) attends a public institution of 
higher education on not less than a half- 
time basis; 
‘‘(ii) 
is 
maintaining 
satisfactory 
progress (as defined in section 484(c)) in 
the student’s course of study; 
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953 
‘‘(iii) is enrolled in an eligible pro-
gram (as defined in section 481(b)); and 
‘‘(iv) either— 
‘‘(I) qualifies for in-State resi-
dent 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 eligi-
ble student shall lose eligibility under this sec-
tion after 6 years of receiving benefits under 
this section. 
‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ 
has the meaning given the term in section 102 of the 
Federally Recognized Indian Tribe List Act of 1994 
(25 U.S.C. 479a). 
‘‘(3) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
meaning given the term in section 101. 
‘‘(4) RECOGNIZED
POSTSECONDARY
CREDEN-
TIAL.—The term ‘recognized postsecondary creden-
tial’ has the meaning as described in section 3 of the 
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954 
Workforce Innovation and Opportunity Act (29 
U.S.C. 3102). 
‘‘(5) STATE.—The term ‘State’ has the mean-
ing given the term in section 103. 
‘‘(g) 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 fis-
cal 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. 
‘‘(4) TRANSFER AVAILABILITY.—The Secretary 
is authorized, subject to the availability of appro-
priations, to transfer amounts authorized to be ap-
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955 
propriated to carry out subpart 1, to carry out 
499T, and to carry out 499U for a fiscal year to 
make grants under this section if— 
‘‘(A) all grants eligible to be made under 
such subpart have been made for such fiscal 
year; 
‘‘(B) all grants eligible to be made under 
499T have been made for such year; and 
‘‘(C) all grants eligible to be made under 
499U have been made for such fiscal year.’’. 
SEC. 4807. EXPANSION FOR PRIVATE INSTITUTIONS. 
Subpart 4 of part I of title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070 et seq.), as added 
by section 4804, is further amended by adding at the end 
the following: 
‘‘SEC. 499W. EXPANSION FOR PRIVATE INSTITUTIONS. 
‘‘(a) AUTHORITY.—The Secretary may establish a 
program under which— 
‘‘(1) a State that participates in section 499T 
may elect to carry out the grant programs under 
such section to students who— 
‘‘(A) meet the requirements under clauses 
(i) through (iv) of subparagraph (A) and sub-
paragraph (B) of subsection (e)(3) of such sec-
tion; and 
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956 
‘‘(B) are enrolled in nonprofit private insti-
tution of higher education in such State; and 
‘‘(2) a State that participates in section 499U 
may elect to carry out the grant programs under 
such section to students who— 
‘‘(A) meet the requirements under clauses 
(i) through (iv) of subparagraph (A) and sub-
paragraph (B) of subsection (e)(1) of such sec-
tion; and 
‘‘(B) and are enrolled in nonprofit private 
institution of higher education in such States. 
‘‘(b) PROGRAM
REQUIREMENTS.—The Secretary 
shall set eligibility standards for nonprofit private institu-
tions of higher education which shall, at a minimum, in-
clude— 
‘‘(1) benchmarks for the enrollment of low-in-
come students; 
‘‘(2) a requirement that any nonprofit private 
institution of higher education that participates in a 
grant program pursuant to this section may not re-
duce the funding for institutional need-based aid; or 
‘‘(3) a requirement that grant amounts for stu-
dents at such institutions of higher education shall 
not exceed grants for students with similar levels of 
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957 
financial need (as measured by expected family con-
tribution) at public institutions of higher education. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—For the 
purpose of making grants under this section there are au-
thorized to be appropriated such sums as may be nec-
essary to carry out this section for fiscal year 2021 and 
each succeeding fiscal year.’’. 
TITLE V—DEVELOPING 
INSTITUTIONS 
SEC. 5001. HISPANIC-SERVING INSTITUTIONS. 
(a) AUTHORIZED ACTIVITIES.—Section 503(b) of the 
Higher Education Act of 1965 (20 U.S.C. 1101b(b)) is 
amended— 
(1) by redesignating paragraph (16) as para-
graph (17); and 
(2) by inserting after paragraph (15) the fol-
lowing: 
‘‘(16) Promoting opportunities for international 
education, including through the development of 
partnerships with institutions of higher education 
outside the United States.’’. 
(b) ENDOWMENT FUNDING LIMITATIONS.—Section 
503(c) of the Higher Education Act of 1965 (20 U.S.C. 
1101b(c)) is amended— 
(1) in paragraph (2)— 
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958 
(A) by striking ‘‘non-Federal funds’’ and 
inserting ‘‘non-Federal funds (which may in-
clude gifts to the endowment fund restricted for 
a specific purpose)’’; and 
(B) by striking ‘‘equal to or greater than’’ 
and inserting ‘‘equal to 50 percent of’’; and 
(2) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) SCHOLARSHIPS.—An eligible institution 
that uses grant funds provided under this title to es-
tablish or increase an endowment fund may use the 
interest proceeds from such endowment to provide 
scholarships to students for the purposes of attend-
ing such institution.’’. 
SEC. 5002. PROMOTING POSTBACCALAUREATE OPPORTUNI-
TIES FOR HISPANIC AMERICANS. 
(a) PROGRAM
AUTHORITY.—Section 512 of the 
Higher Education Act of 1965 (20 U.S.C. 1102a) is 
amended by adding at the end the following: 
‘‘(c) MINIMUM GRANTS AWARDED.—Of the funds ap-
propriated to carry out this part for a fiscal year, the Sec-
retary— 
‘‘(1) shall— 
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959 
‘‘(A) use not less than one-third of such 
funds to award grants to carry out the activities 
described in section 513(b); and 
‘‘(B) use not less than one-third of such 
funds to award grants to carry out the activities 
described in section 513(c); and 
‘‘(2) may use any funds remaining (after using 
the funds in accordance with paragraph (1)) to 
award grants to carry out activities described in sub-
section (b) or (c) of section 513.’’. 
(b) AUTHORIZED ACTIVITIES.—Section 513 of the 
Higher Education Act of 1965 (20 U.S.C. 1102b) is 
amended to read as follows: 
‘‘SEC. 513. AUTHORIZED ACTIVITIES. 
‘‘(a) REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Grants awarded under this 
part shall be used for— 
‘‘(A) one or more of the activities described 
in subsection (b); or 
‘‘(B) one or more of the activities de-
scribed in subsection (c). 
‘‘(2) PROHIBITION.—A grant awarded under 
this part may not be used for activities under both 
subsections (b) and (c). 
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960 
‘‘(b) PROMOTING POSTBACCALAUREATE OPPORTUNI-
TIES
FOR HISPANIC AMERICANS ACTIVITIES.—Grants 
awarded under this part may be used for one or more of 
the following activities promoting postbaccalaureate op-
portunities for Hispanic Americans: 
‘‘(1) Purchase, rental, or lease of scientific or 
laboratory equipment for educational purposes, in-
cluding instructional and research purposes. 
‘‘(2) Construction, maintenance, renovation, 
and improvement of classrooms, libraries, labora-
tories, and other instructional facilities, including 
purchase or rental of telecommunications technology 
equipment or services. 
‘‘(3) Purchase of library books, periodicals, 
technical and other scientific journals, microfilm, 
microfiche, and other educational materials, includ-
ing telecommunications program materials. 
‘‘(4) Support for low-income postbaccalaureate 
students including outreach, academic support serv-
ices, mentoring, scholarships, fellowships, and other 
financial assistance to permit the enrollment of such 
students 
in 
postbaccalaureate 
certificate 
and 
postbaccalaureate degree granting programs. 
‘‘(5) Creating or improving facilities for Inter-
net or other distance education technologies, includ-
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961 
ing purchase or rental of telecommunications tech-
nology equipment or services. 
‘‘(6) Collaboration with other institutions of 
higher education to expand postbaccalaureate certifi-
cate and postbaccalaureate degree offerings. 
‘‘(7) Other activities proposed in the application 
submitted pursuant to section 514 that— 
‘‘(A) contribute to carrying out the pur-
poses of this part; and 
‘‘(B) are approved by the Secretary as part 
of the review and acceptance of such applica-
tion. 
‘‘(c) FACULTY DEVELOPMENT ACTIVITIES.—Grants 
awarded under this part may be used for one or more of 
the following activities for faculty development: 
‘‘(1) Support of faculty exchanges, faculty de-
velopment, faculty research, curriculum development, 
and academic instruction. 
‘‘(2) Financial support to graduate students 
planning to pursue academic careers who desire to 
become faculty at Hispanic-serving institutions. 
‘‘(3) Career services in preparing for an aca-
demic career and identifying opportunities. 
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