I 
109TH CONGRESS 
1ST SESSION H. R. 3863 
To provide the Secretary of Education with waiver authority for the realloca-
tion rules in the Campus-Based Aid programs, and to extend the deadline 
by which funds have to be reallocated to institutions of higher education 
due to a natural disaster. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 22, 2005 
Mr. JINDAL (for himself, Mr. BOEHNER, Mr. MCKEON, Mr. BOUSTANY, Mr. 
PAUL, Mr. GEORGE MILLER of California, Mr. HINOJOSA, Mr. KILDEE, 
Mr. MARCHANT, and Mr. PICKERING) introduced the following bill; which 
was referred to the Committee on Education and the Workforce, and in 
addition to the Committee on the Budget, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To provide the Secretary of Education with waiver authority 
for the reallocation rules in the Campus-Based Aid pro-
grams, and to extend the deadline by which funds have 
to be reallocated to institutions of higher education due 
to a natural disaster. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; REFERENCES. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Natural Disaster Student Aid Fairness Act’’.
(b) REFERENCES.—References in this Act to ‘‘the 
Act’’ are references to the Higher Education Act of 1965 
(20 U.S.C. 1001 et seq.). 
SEC. 2. ALLOCATION AND USE OF CAMPUS-BASED HIGHER 
EDUCATION ASSISTANCE. 
(a) WAIVER OF MATCHING REQUIREMENTS.—Not-
withstanding 
sections 
413C(a)(2), 
443(b)(5), 
and 
463(a)(2) of the Act (20 U.S.C. 1070b–2(a)(2); 42 U.S.C. 
2753(b)(5); 20 U.S.C. 1087cc(a)(2)), with respect to 
funds made available for academic years 2004–2005 and 
2005–2006— 
(1) in the case of an institution of higher edu-
cation located in an area affected by a Gulf hurri-
cane disaster, the Secretary shall waive the require-
ment that a participating institution of higher edu-
cation provide a non-Federal share or a capital con-
tribution, as the case may be, to match Federal 
funds provided to the institution for the programs 
authorized pursuant to subpart 3 of part A, part C, 
and part E of title IV of the Act; and 
(2) in the case of an institution of higher edu-
cation that has accepted for enrollment any affected 
students, the Secretary may waive that matching re-
quirement after considering the institution’s student 
population and existing resources.
(b) WAIVER OF REALLOCATION RULES.— 
(1) AUTHORITY
TO
REALLOCATE.—Notwith-
standing sections 413D(d), 442(d), and 462(i) of the 
Act (20 U.S.C. 1070b–3(d); 42 U.S.C. 2752(d); 20 
U.S.C. 1087bb(i)), the Secretary shall— 
(A) reallocate any funds returned under 
any of those sections that were allocated to in-
stitutions of higher education for award year 
2004–2005 to an institution of higher education 
that is eligible under paragraph (2) of this sub-
section; and 
(B) waive the allocation reduction for 
award year 2006–2007 for an institution re-
turning more than 10 percent of its allocation 
under any of those sections. 
(2) ELIGIBLE
INSTITUTIONS
FOR
REALLOCA-
TION.—An institution of higher education may re-
ceive a reallocation of excess allocations under this 
subsection if the institution— 
(A) participates in the program for which 
excess allocations are being reallocated; and 
(B)(i) is located in an area affected by a 
Gulf hurricane disaster; or 
(ii) has accepted for enrollment any af-
fected students in academic year 2005–2006.
(3) BASIS OF REALLOCATION.—The Secretary 
shall determine the manner in which excess alloca-
tions shall be reallocated to institutions under para-
graph (1), and shall give additional consideration to 
the needs of institutions located in an area affected 
by a Gulf hurricane disaster. 
(4) ADDITIONAL
WAIVER
AUTHORITY.—Not-
withstanding any other provision of law, in order to 
carry out this subsection, the Secretary may waive 
or modify any statutory or regulatory provision re-
lating to the reallocation of excess allocations under 
subpart 3 of part A, part C, or part E of title IV 
of the Act in order to ensure that assistance is re-
ceived by affected institutions for affected students. 
(c) AVAILABILITY OF FUNDS DATE EXTENSION.— 
Notwithstanding any other provision of law— 
(1) any funds available to the Secretary under 
sections 413A, 441, and 461 of the Act (20 U.S.C. 
1070b; 42 U.S.C. 2751; 20 U.S.C. 1087aa) for 
which the period of availability would otherwise ex-
pire on September 30, 2005, shall be available for 
obligation by the Secretary until September 30, 
2006 for the purposes of the programs authorized 
pursuant to subpart 3 of part A, part C, and part 
E of title IV of the Act, respectively; and
(2) the Secretary may recall any funds allocated 
to an institution of higher education for award year 
2004–2005 under section 413D, 442, or 462 of the 
Act that, if not returned to the Secretary as excess 
allocations pursuant to any of those sections, would 
otherwise lapse on September 30, 2005, and reallo-
cate those funds in accordance with subsection 
(b)(1). 
SEC. 3. EMERGENCY DESIGNATION. 
Section 2 of this Act is designated as an emergency 
requirement pursuant to section 402 of H. Con. Res. 95 
(109th Congress). 
SEC. 4. TERMINATION OF AUTHORITY. 
The provisions of this Act shall cease to be effective 
one year after the date of the enactment of this Act. 
SEC. 5. DEFINITIONS. 
In this Act: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
(2) AFFECTED STUDENT.—The term ‘‘affected 
student’’ means an individual who has applied for or 
received student financial assistance under title IV 
of the Act, and who— 
(A) was enrolled or accepted for enroll-
ment, as of August 29, 2005, at an institution