I 
113TH CONGRESS 
2D SESSION 
H. R. 4767 
To amend the Higher Education Act of 1965 to strengthen Federal-State 
partnerships in postsecondary education. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 29, 2014 
Mr. HINOJOSA (for himself, Mr. GRIJALVA, Mr. DANNY K. DAVIS of Illinois, 
Mr. FATTAH, and Ms. VELA´ZQUEZ) introduced the following bill; which 
was referred to the Committee on Education and the Workforce 
A BILL 
To amend the Higher Education Act of 1965 to strengthen 
Federal-State partnerships in postsecondary education. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Partnerships for Af-
fordability and Student Success Act’’. 
SEC. 2. STATE COMMITMENT TO AFFORDABLE COLLEGE 
EDUCATION. 
Section 137 of the Higher Education Act of 1965 (20 
U.S.C. 1015f) is amended— 
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(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) MAINTENANCE OF EFFORT REQUIRED.—For 
the academic year beginning on July 1, 2014, and for each 
of the 4 succeeding academic years, a State shall— 
‘‘(1) maintain State support for institutions of 
higher education (not including support for capital 
projects or research and development, or tuition and 
fees paid by students) at least at the level of such 
support for the academic year beginning on July 1, 
2012; and 
‘‘(2) maintain State support for student finan-
cial aid for paying costs associated with postsec-
ondary education at least at the level of such sup-
port for the academic year beginning on July 1, 
2012.’’; 
(2) by striking subsection (c) and inserting the 
following: 
‘‘(c) WAIVER.— 
‘‘(1) IN GENERAL.—The Secretary shall waive 
the requirements of subsection (a) if the Secretary 
determines that such a waiver would be appropriate 
due to exceptional or uncontrollable circumstances, 
such as a natural disaster or a precipitous decline in 
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the financial resources of a State or State edu-
cational agency, as appropriate. 
‘‘(2) NO REQUIREMENT TO AMEND BUDGET.— 
The Secretary shall not require a State to make 
changes to an enacted budget as a condition of re-
ceiving a waiver under paragraph (1). 
‘‘(3) CONSULTATION.—The Secretary shall con-
sult with the States in developing the criteria and 
procedures for reviewing waiver requests.’’; and 
(3) by striking subsection (d). 
SEC. 3. FEDERAL AND STATE PARTNERSHIPS FOR COL-
LEGE ACCESS, AFFORDABILITY, AND COM-
PLETION. 
Subpart 4 of part A of title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070c et seq.) is amended 
to read as follows: 
‘‘Subpart 4—Federal and State Partnerships for 
College Access, Affordability, and Completion 
‘‘SEC. 415A. PURPOSE. 
‘‘It is the purpose of this subpart for the Secretary 
to make incentive grants to States to assist States in— 
‘‘(1) providing grants to eligible students at-
tending institutions of higher education or partici-
pating in programs of study abroad that are ap-
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proved for credit by institutions of higher education 
at which such students are enrolled; 
‘‘(2) providing subgrants to eligible institutions 
or consortia of eligible institutions— 
‘‘(A) to improve student outcomes, such as 
completion and transfer rates and workforce 
outcomes for graduates; and 
‘‘(B) to develop and implement practices 
that result in reduced costs for students; and 
‘‘(3) providing public accountability and con-
sumer information on the performance of institu-
tions of higher education operating within the State. 
‘‘SEC. 415B. STATE ELIGIBILITY; DEFINITIONS. 
‘‘(a) INCENTIVE
GRANTS.—The Secretary shall 
award incentive grants, in accordance with the provisions 
of this subpart, to States to pay the Federal share of the 
cost of carrying out the activities described in paragraphs 
(1) through (3) of section 415A. The incentive grant shall 
consist of the allotment determined for the State under 
section 415C. 
‘‘(b) STATE ELIGIBILITY.—In order to be eligible to 
receive an incentive grant under this subpart, a State shall 
enter into an agreement with the Secretary. The agree-
ment shall contain the following assurances: 
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‘‘(1) Federal funds received by the State under 
this subpart will supplement and not supplant other 
Federal and State funds otherwise available to carry 
out activities described in this subpart. 
‘‘(2) The State will maintain its commitment to 
affordable higher education as described in section 
137. 
‘‘(3) The State will fulfill its role in program in-
tegrity under section 495. 
‘‘(4) The State has a comprehensive plan for 
public postsecondary education that addresses the 
following: 
‘‘(A) Measurable goals for student out-
comes, including enrollment, participation, and 
completion rates. 
‘‘(B) Measurable goals for college afford-
ability in the State. 
‘‘(C) Alignment of such plan with the 
workforce and economic development plans of 
the State. 
‘‘(D) Alignment of such plan with the ele-
mentary and secondary education plan for the 
State. 
‘‘(E) The postsecondary educational needs 
of unserved and underserved individuals within 
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the State, including individuals beyond tradi-
tional college age. 
‘‘(5) The State provides for direct, equitable, 
and active participation by representatives of institu-
tions of higher education, including the voluntary 
participation of private, nonprofit institutions of 
higher education, and other stakeholders in the com-
prehensive planning process. 
‘‘(c) DEFINITIONS.—In this subpart: 
‘‘(1) ELIGIBLE INSTITUTION.—The term ‘eligi-
ble institution’ means— 
‘‘(A) an institution of higher education; 
‘‘(B) an institution of higher education in 
partnership with— 
‘‘(i) a nonprofit or community-based 
organization that has demonstrated suc-
cess in improving student outcomes in 
postsecondary education; or 
‘‘(ii) a local workforce investment 
board; or 
‘‘(C) a consortium of institutions of higher 
education. 
‘‘(2) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
meaning given the term in section 101(a). 
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‘‘SEC. 415C. ALLOTMENT AMONG STATES. 
‘‘(a) ALLOTMENT BASED ON NUMBER OF ELIGIBLE 
STUDENTS IN ATTENDANCE.—Except as provided in sub-
section (b), from the sums appropriated under section 
415H for a fiscal year, the Secretary shall allot to each 
eligible State for such fiscal year an amount that bears 
the same ratio to such sums as the number of students 
residing in such State who are eligible for a Federal Pell 
Grant bears to the total number of such students in all 
the eligible States. The Secretary shall calculate such ratio 
based on data for the most recent year for which satisfac-
tory data are available. 
‘‘(b) MINIMUM ALLOTMENT.—The amount of any eli-
gible State’s allotment under subsection (a) for any fiscal 
year may not be less than 1 percent of the sums appro-
priated under section 415H for such year. 
‘‘(c) REALLOTMENT.—The amount of any State’s al-
lotment under subsection (a) for any fiscal year which the 
Secretary determines will not be required for such fiscal 
year for the Federal-State partnership program of that 
State shall be available for reallotment from time to time, 
on such dates during such year as the Secretary may fix, 
to other States in proportion to the original allotments to 
such States under such subsection for such year, but with 
such proportionate amount for any of such States being 
reduced to the extent it exceeds the sum the Secretary 
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estimates such State needs and will be able to use for such 
year for carrying out the State plan. The total of such 
reductions shall be similarly reallotted among the States 
whose proportionate amounts were not so reduced. 
‘‘(d) ALLOTMENTS SUBJECT TO COMPLIANCE.—The 
Secretary shall make payments for incentive grants under 
this subpart only to States that continue to meet the re-
quirements of this subpart. 
‘‘SEC. 415D. APPLICATIONS. 
‘‘(a) IN GENERAL.—In order to receive an incentive 
grant under this subpart, the State agency with jurisdic-
tion over higher education, or another agency or entity 
designated by the Governor or chief executive of the State 
to administer the program under this subpart, shall sub-
mit an application to the Secretary at such time, in such 
manner, and accompanied by such information as the Sec-
retary may require. 
‘‘(b) CONTENT
OF APPLICATION.—An application 
submitted under subsection (a) shall contain— 
‘‘(1) a description of how grant funds will assist 
the State in meeting its goals for student outcomes, 
including enrollment and completion; 
‘‘(2) a description of how the grant funds will 
assist the State in meeting its goals for college af-
fordability, including measures to minimize tuition 
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‘‘(8) a description of the stakeholder consulta-
tion, including efforts to engage the voluntary par-
ticipation of private, nonprofit institutions, carried 
out in the development of the application. 
‘‘SEC. 415E. PAYMENT OF FEDERAL SHARE OF GRANTS. 
‘‘(a) IN GENERAL.— 
‘‘(1) DISTRIBUTION.—A State awarded an in-
centive grant under this subpart— 
‘‘(A) shall use grant funds to award stu-
dent grants; and 
‘‘(B) may use grant funds to award sub-
grants to eligible institutions. 
‘‘(2) GRANTS TO STUDENTS.—A State awarded 
an incentive grant under this subpart shall establish 
a program to award grants to students that complies 
with the following: 
‘‘(A) The program is administered by a 
single State agency. 
‘‘(B) The program provides that an insti-
tution of higher education that had a student 
who received funds under this subpart at any 
time beginning on July 1, 2010, through the 
day before the date of enactment of the Part-
nerships for Affordability and Student Success 
Act and that is eligible to participate in a pro-
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gram authorized under this title, shall be eligi-
ble to participate under this paragraph. 
‘‘(C) The program provides that such 
grants to students will be in amounts not to ex-
ceed the student’s cost of attendance per aca-
demic year for attendance at an institution of 
higher education. Such grants, in combination 
with other State or Federal student assistance, 
shall not exceed the student’s cost of attend-
ance in any given academic year. 
‘‘(D) The program provides for the selec-
tion of grant recipients on the basis of substan-
tial financial need determined under part F and 
by the State. 
‘‘(E) The program provides for the pay-
ment of the non-Federal share of such grants 
from funds supplied by such State which rep-
resent an additional expenditure for such year 
by such State for grants for students attending 
institutions of higher education over the 
amount expended by such State for such 
grants, if any, during the second fiscal year 
preceding the fiscal year in which such State 
initially received funds under this subpart. 
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‘‘(F) The program provides that if the 
State’s allotment under this subpart is based, 
in part, on the financial need demonstrated by 
students who are independent students or at-
tending the institution less than full time, a 
reasonable proportion of the State’s allotment 
shall be made available to such students. 
‘‘(G) The program will notify students re-
ceiving grants under this subpart that such 
grants are Federal–State partnership grants 
and are funded by the Federal Government and 
the State. 
‘‘(3) 
SUBGRANTS
TO
ELIGIBLE
INSTITU-
TIONS.—A State awarded an incentive grant under 
this subpart may establish a program to award sub-
grants to eligible institutions that complies with the 
following: 
‘‘(A) The program is administered by a 
single State agency. 
‘‘(B) The program provides for the selec-
tion of subgrant recipients based on criteria set 
by the State agency. 
‘‘(C) The program provides for subgrants 
that support activities that will assist the State 
in achieving— 
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‘‘(i) the State’s measurable goals for 
student outcomes, including enrollment, 
participation, and completion rates for 
underrepresented or underserved popu-
lations; 
‘‘(ii) the State’s measurable goals for 
college affordability, including innovative 
methods for reducing costs; 
‘‘(iii) improved workforce outcomes 
for graduates; and 
‘‘(iv) the State’s measurable goals for 
strengthening the eligible institutions de-
scribed in paragraphs (1) through (7) of 
section 371(a). 
‘‘(D) The program provides for the dis-
semination of promising practices developed 
through subgrant activities. 
‘‘(4) FISCAL
CONTROL; REPORTS.—A State 
awarded an incentive grant under this subpart shall 
provide— 
‘‘(A) for such fiscal control and fund ac-
counting procedures as may be necessary to as-
sure proper disbursement of and accounting for 
Federal funds paid under this subpart; and 
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‘‘(B) for the making of such reports, in 
such form and containing such information, as 
may be reasonably necessary to enable the Sec-
retary to perform the Secretary’s functions 
under this subpart. 
‘‘(b) RESERVATION AND DISBURSEMENT OF ALLOT-
MENTS AND REALLOTMENTS.— 
‘‘(1) IN GENERAL.—Upon approval of an appli-
cation for an incentive grant under this subpart, the 
Secretary shall reserve from the applicable allotment 
(including any applicable reallotment) available, the 
amount of such payment, which (subject to the lim-
its of such allotment or reallotment) shall be equal 
to the Federal share of the cost of the grants to stu-
dents or subgrants to eligible institutions or con-
sortia of such institutions covered by such applica-
tion. 
‘‘(2) PAYMENT.—The Secretary shall pay such 
reserved amount, in advance or by way of reimburse-
ment, and in such installments as the Secretary may 
determine. 
‘‘(3) AMENDMENT.—The Secretary may amend 
the reservation of any amount under this subsection, 
either upon approval of an amendment of the appli-
cation or upon revision of the estimated cost of the 
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grants to students or subgrants to eligible institu-
tions with respect to which such reservation was 
made. If the Secretary approves an upward revision 
of such estimated cost, the Secretary may reserve 
the Federal share of the added cost only from the 
applicable allotment (or reallotment) available at the 
time of such approval. 
‘‘(c) FEDERAL SHARE.—The Federal share of the 
cost of carrying out the activities described in paragraphs 
(1) through (3) of section 415A is equal to 66.66 percent. 
‘‘(d) CERTAIN ACTIVITIES FOR WHICH NON-FED-
ERAL SHARE MAY BE PROVIDED IN CASH OR IN KIND.— 
For activities described in section 415A(2), the non-Fed-
eral share may be provided in cash or in kind, fairly evalu-
ated. 
‘‘(e) REPORTING.—A State that desires to receive 
payments for continuing incentive grants under this sub-
part shall report the following information to the Sec-
retary on an annual basis: 
‘‘(1) The State’s progress in meeting its goals 
for college affordability, including measures to mini-
mize tuition increases at public institutions and 
measures to increase the availability of need-based 
student aid. 
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‘‘(2) The State’s progress in meeting the post-
secondary needs of underrepresented or underserved 
populations in the State, including how the State is 
strengthening the eligible institutions described in 
paragraphs (1) through (7) of section 371(a). 
‘‘(3) A list of any subgrants made to eligible in-
stitutions. 
‘‘(4) The State’s report card described in sec-
tion 415F. 
‘‘SEC. 415F. STATE REPORT CARDS. 
‘‘Each State that receives an allotment under this 
subpart shall report annually to the public on its progress 
in meeting its public postsecondary education goals and 
comprehensive plan for public higher education. Such re-
port shall include— 
‘‘(1) information, as determined by the State in 
consultation with stakeholders, on student outcomes, 
including enrollment, participation, and completion 
rates, disaggregated by race, ethnicity, disability sta-
tus, and socio-economic status; 
‘‘(2) information, as determined by the State in 
consultation with stakeholders, on workforce out-
comes for graduates; 
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‘‘(3) information on college costs, including tui-
tion increases, student indebtedness, and the avail-
ability of need-based aid; and 
‘‘(4) information on the consumer complaints 
related to the performance of institutions of higher 
education reported to the State in the prior year. 
‘‘SEC. 415G. PARTICIPATION OF PRIVATE, NONPROFIT IN-
STITUTIONS OF HIGHER EDUCATION. 
‘‘(a) VOLUNTARY PARTICIPATION.—A private, non-
profit institution of higher education may voluntarily elect 
to participate in a State’s efforts under the plan described 
in section 415B(b)(6). A State— 
‘‘(1) shall not require any private, nonprofit in-
stitution to participate in such efforts; and 
‘‘(2) may require such an institution that volun-
tarily elects to participate in such efforts to provide 
appropriate information to allow the State to assess 
the institution’s progress towards the goals and ac-
tivities described in subparagraphs (A) through (E) 
of section 415B(b)(6). 
‘‘(b) RULE OF CONSTRUCTION.—Nothing in this sub-
part, including voluntary participation described in sub-
section (a), shall be construed to— 
‘‘(1) authorize the Secretary, a State, or an of-
ficer or employee of the Department or of a State 
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to exercise any direction, supervision, or control over 
a private, nonprofit institution of higher education, 
including control over curriculum, program of in-
struction, administration, governance, personnel, ar-
ticulation, the awarding of credit, graduation or de-
gree requirements, or admissions; 
‘‘(2) authorize the Secretary, a State, or an of-
ficer or employee of the Department or of a State 
to require a private, nonprofit institution of higher 
education to participate in a longitudinal data sys-
tem; or 
‘‘(3) limit the application of the General Edu-
cation Provisions Act. 
‘‘(c) ENFORCEMENT.—If any State fails or refuses 
to comply with any provision of this section, the State 
shall no longer be eligible for assistance under this sub-
part. 
‘‘SEC. 415H. AUTHORIZATION OF APPROPRIATIONS; RES-
ERVATIONS. 
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated to carry out this subpart such sums as may 
be necessary for fiscal year 2015 and each of the 4 suc-
ceeding fiscal years. 
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‘‘(b) RESERVATION.—Not less than 70 percent of 
funds allocated to a State shall be reserved for providing 
grants to eligible students. 
‘‘(c) RESERVATION FOR CONSUMER INFORMATION 
AND ADMINISTRATIVE EXPENSES.—Not more than 8 per-
cent of the funds allocated to a State may be used to pro-
vide public accountability and consumer information on 
the performance of institutions of higher education and 
for administering the grant.’’. 
Æ 
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