I 
114TH CONGRESS 
2D SESSION 
H. R. 4386 
To amend the Higher Education Act of 1965 to make certain improvements 
in the Federal Pell Grant Program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 13, 2016 
Mr. KILMER introduced the following bill; which was referred to the Com-
mittee on Education and the Workforce, and in addition to the Com-
mittee on Ways and Means, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To amend the Higher Education Act of 1965 to make certain 
improvements in the Federal Pell Grant Program, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Pathways to an Affordable Education Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
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Sec. 2. Increasing the Federal Pell Grant and adding a cost of living adjust-
ment. 
Sec. 3. Funding the Federal Pell Grant program through mandatory appropria-
tions. 
Sec. 4. Mandatory Federal Pell Grant increases. 
Sec. 5. Federal Pell Grant duration limit. 
Sec. 6. Restoration of eligibility for year-round Federal Pell Grants. 
Sec. 7. Expansion of Pell Grant exclusion from gross income. 
Sec. 8. Federal Pell Grant early communication. 
Sec. 9. Contribution from adjusted available income. 
SEC. 2. INCREASING THE FEDERAL PELL GRANT AND ADD-
ING A COST OF LIVING ADJUSTMENT. 
(a) IN GENERAL.—Section 401(b)(2)(A) of the High-
er Education Act of 1965 (20 U.S.C. 1070a(b)(2)(A)) is 
amended by striking clauses (i) and (ii) and inserting the 
following: 
‘‘(i)(I) for award year 2017–2018, 
$9,139; and 
‘‘(II) for award year 2018–2019 and 
each subsequent award year, the amount 
of the maximum Federal Pell Grant deter-
mined under this clause for the imme-
diately preceding award year, increased by 
a percentage equal to the estimated per-
centage increase, if any, in the Consumer 
Price Index (as determined by the Sec-
retary, using the definition in section 
478(f)) for the most recent calendar year 
ending prior to the beginning of that 
award year; plus 
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‘‘(ii) any additional amount specified 
for the maximum Federal Pell Grant in 
the last enacted appropriation Act applica-
ble to that award year, less’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to Federal Pell 
Grants awarded under section 401 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070a) for award year 
2017–2018 and each succeeding award year. 
SEC. 3. FUNDING THE FEDERAL PELL GRANT PROGRAM 
THROUGH MANDATORY APPROPRIATIONS. 
(a) IN GENERAL.—Section 401(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1070a(b)) is amend-
ed— 
(1) in paragraph (2), by adding at the end the 
following: 
‘‘(C)(i) For fiscal year 2017 and each suc-
ceeding fiscal year, there are appropriated, out of 
any money in the Treasury not otherwise appro-
priated, such sums as may be necessary to provide, 
in combination with any amounts separately appro-
priated under subparagraph (A)(ii), Federal Pell 
Grants under this section in the amount specified in 
subparagraph (A) to all eligible students. 
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‘‘(ii) The amounts made available by clause (i) 
for any fiscal year shall be available beginning on 
October 1 of that fiscal year, and shall remain avail-
able through September 30 of the succeeding fiscal 
year.’’; and 
(2) by striking paragraph (7). 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply with respect to Federal Pell 
Grants awarded under section 401 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070a) for award year 
2017–2018 and each succeeding award year. 
SEC. 4. MANDATORY FEDERAL PELL GRANT INCREASES. 
(a) INCREASES.—Section 401(b) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070a(b)) (as amended by 
this Act) is further amended— 
(1) in paragraph (2)— 
(A) by striking ‘‘(2)’’ and all that follows 
through ‘‘The amount of the Federal Pell 
Grant’’ and inserting ‘‘(2)(A) The amount of 
the Federal Pell Grant’’; 
(B) by moving the margins of subpara-
graph (A) two ems to the left; and 
(C) in subparagraph (A)— 
(i) by redesignating clause (iii) as 
clause (iv); and 
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(ii) by inserting after clause (ii) the 
following new clause (iii): 
‘‘(iii) the amount of the increase calculated 
under paragraph (7), less’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(7)(A) The amount of the maximum Federal Pell 
Grant for which an eligible student is eligible during an 
award year, as specified in paragraph (2)(A) for that 
award year, shall be increased by the difference between— 
‘‘(i) the average total cost of attendance for 
first-time, full-time undergraduate students in the 
United States at public 2-year institutions for stu-
dents living on-campus, as determined by the Na-
tional Center for Education Statistics, for the last 
academic year preceding the beginning of the fiscal 
year for which the increase is made; and 
‘‘(ii) the amount of the maximum Federal Pell 
Grant for which a student is eligible during an 
award year, as specified in paragraph (2)(A) for 
that award year. 
‘‘(B) For purposes of subparagraph (A), an eligible 
student is an otherwise eligible student who has a negative 
or zero estimated family contribution.’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply with respect to Federal Pell 
Grants awarded under section 401 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070a) for award year 
2017–2018 and each succeeding award year. 
SEC. 5. FEDERAL PELL GRANT DURATION LIMIT. 
(a) IN GENERAL.—Section 401(c)(5) of the Higher 
Education Act of 1965 (20 U.S.C. 1070a(c)(5)) is amend-
ed by striking ‘‘12 semesters’’ and inserting ‘‘15 semes-
ters’’ each place the term appears. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to Federal Pell 
Grants awarded under section 401 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070a) for award year 
2017–2018 and each succeeding award year. 
SEC. 6. RESTORATION OF ELIGIBILITY FOR YEAR-ROUND 
FEDERAL PELL GRANTS. 
(a) IN GENERAL.—Section 401(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1070a(b)) (as amended 
by this Act) is further amended by adding at the end the 
following: 
‘‘(8) YEAR-ROUND FEDERAL PELL GRANT STU-
DENTS.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of this subsection, the Secretary 
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shall award, to an eligible student who meets 
the requirements in subparagraph (B) who has 
received a Federal Pell Grant for an award year 
and is enrolled in a program of study for one 
or more additional payment periods during the 
same award year that are not otherwise covered 
by the student’s Federal Pell Grant, an addi-
tional Federal Pell Grant for the additional 
payment periods. 
‘‘(B) ELIGIBILITY.—In order to be eligible 
to receive the additional Federal Pell Grant for 
an award year that is described in subpara-
graph (A), a student shall, in addition to meet-
ing all eligibility requirements for the receipt of 
a Federal Pell Grant— 
‘‘(i) be enrolled on at least a half-time 
basis for a period of more than one aca-
demic year, or more than 2 semesters or 
the equivalent of 2 semesters, during a sin-
gle award year; and 
‘‘(ii) be enrolled in a program of in-
struction at an institution of higher edu-
cation for which the institution awards an 
associate or baccalaureate degree or a cer-
tificate. 
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