(ii) by redesignating paragraph (4) as 
paragraph (5); and 
(iii) by inserting after paragraph (3) 
the following: 
‘‘(4) eligible for free or reduced-price lunch 
under the Richard B. Russell National School Lunch 
Act; or’’; 
(5) in section 404E (20 U.S.C. 1070a–25)— 
(A) in subsection (a)— 
(i) by redesignating paragraphs (1) 
and (2) as paragraphs (2) and (3), respec-
tively; 
(ii) by inserting before paragraph (2), 
as redesignated by clause (i), the following: 
‘‘(1) APPLICATION REQUIREMENTS.— 
‘‘(A) PLAN FOR MAINTENANCE OF FINAN-
CIAL ASSISTANCE.—An eligible entity proposing 
to establish or maintain a financial assistance 
program providing scholarships for students as-
sisted by the program of the eligible entity 
under this chapter shall include a plan regard-
ing the financial application program with the 
application submitted under section 404C. 
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‘‘(B) SCHOLARSHIP
DETAILS.—Under a 
plan described in subparagraph (A), an eligible 
entity— 
‘‘(i) may elect to offer 1 or more types 
of scholarships; and 
‘‘(ii) shall describe, for each type of 
scholarship— 
‘‘(I) the minimum and maximum 
awards for the scholarships, consistent 
with section 404E(d), based on cri-
teria and disbursement priorities es-
tablished by the eligible entity; 
‘‘(II) the duration of the scholar-
ships, which may be single-year or 
multi-year awards; 
‘‘(III) the enrollment require-
ments 
for 
participating 
students, 
which may include providing scholar-
ships for participating students who 
are enrolled in an institution of higher 
education on less than a full-time 
basis during any award year; and 
‘‘(IV) notwithstanding subsection 
(g), any additional student eligibility 
criteria established by the eligible en-
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tity for earning and maintaining 
scholarships under this section, in-
cluding— 
‘‘(aa) financial need; 
‘‘(bb) meeting participation 
milestones in the activities of-
fered by the eligible entity under 
section 404D; 
‘‘(cc) meeting and maintain-
ing satisfactory academic mile-
stones; and 
‘‘(dd) other criteria aligned 
with State and local goals to 
incentivize postsecondary readi-
ness, access, and success.’’; and 
(iii) in paragraph (3), as redesignated 
by clause (i), by striking ‘‘may award’’ and 
inserting ‘‘may use not less than 10 per-
cent and not more than 50 percent of 
funds made available under this chapter to 
award’’; 
(B) in subsection (b)— 
(i) in the subsection heading, by in-
serting ‘‘STATE’’ before ‘‘LIMITATION’’; 
and 
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(ii) in paragraph (2), by striking ‘‘eli-
gible entity demonstrates’’ and all that fol-
lows through the period at the end and in-
serting the following: ‘‘eligible entity— 
‘‘(I) demonstrates that the eligi-
ble entity has another means of pro-
viding the students with the financial 
assistance described in this section or 
eligible students have reasonable ac-
cess to State and local financial as-
sistance programs; and 
‘‘(II) describes such means or ac-
cess in the application submitted 
under section 404C.’’; 
(C) in subsection (e)— 
(i) by striking paragraph (1) and in-
serting the following: 
‘‘(1) IN GENERAL.— 
‘‘(A) SCHOLARSHIP
PLAN.—Each eligible 
entity described in section 404A(c)(1) that re-
ceives a grant under this chapter shall hold in 
reserve, for the students served by such grant 
as described in section 404B(d)(1)(A) or 
404D(d), an estimated amount that is based on 
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the eligible entity’s scholarship plan described 
in subsection (a)(1). 
‘‘(B) INTEREST USE.—Interest earned on 
funds held in reserve under subparagraph (A) 
may be used by the eligible entity to administer 
the scholarship program during the award pe-
riod and through the post-award period de-
scribed in paragraph (4).’’; 
(ii) in paragraph (2)(B), by inserting 
‘‘, or been accepted for enrollment,’’ after 
‘‘enrolled’’; and 
(iii) in paragraph (3)— 
(I) in subparagraph (A), by strik-
ing ‘‘and’’ after the semicolon; 
(II) by redesignating subpara-
graph (B) as subparagraph (C); and 
(III) by inserting after subpara-
graph (A) the following: 
‘‘(B) the costs associated with enrolling in 
an institution of higher education; and’’; and 
(D) in subsection (g)— 
(i) in paragraph (3)— 
(I) by inserting ‘‘or, if the eligible 
entity chooses, in another program of 
study or credential program for which 
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an individual could use funds received 
under a Federal Pell Grant to at-
tend,’’ before ‘‘that is located’’; and 
(II) by striking ‘‘except that, at 
the State’s option’’ and inserting ‘‘ex-
cept that, at the eligible entity’s op-
tion’’; and 
(ii) in paragraph (4), by inserting 
‘‘and qualifies for an award, consistent 
with the eligible entity’s scholarship plan 
as described in subsection (a)(1)’’ after 
‘‘404D(a)’’; 
(6) in section 404G (20 U.S.C. 1070a–27)— 
(A) in subsection (b)— 
(i) in paragraph (1), by striking 
‘‘and’’ after the semicolon; 
(ii) in paragraph (2), by striking the 
period at the end and inserting ‘‘; and’’; 
and 
(iii) by inserting after paragraph (2) 
the following: 
‘‘(3) include the following metrics: 
‘‘(A) The number of students completing 
the Free Application for Federal Student Aid 
under section 483. 
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‘‘(B) If applicable, the number of students 
receiving a scholarship under section 404E. 
‘‘(C) The graduation rate of participating 
students from high school. 
‘‘(D) The enrollment of participating stu-
dents into postsecondary education. 
‘‘(E) Such other metrics as the Secretary 
may require.’’; and 
(B) in subsection (c)— 
(i) in the subsection heading, by in-
serting ‘‘AND
TECHNICAL
ASSISTANCE’’ 
after ‘‘FEDERAL EVALUATION’’; 
(ii) in the matter preceding paragraph 
(1)— 
(I) by inserting ‘‘after consulta-
tion with the community of eligible 
entities receiving grants under this 
chapter and’’ after ‘‘Secretary shall,’’; 
(II) by striking ‘‘0.75’’ and in-
serting ‘‘1’’; and 
(III) by striking ‘‘evaluate the ef-
fectiveness of the program and, as ap-
propriate, disseminate the results of 
the evaluation. Such evaluation shall 
include a separate analysis of’’; 
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(iii) by redesignating paragraphs (1) 
and (2) as subparagraphs (A) and (B), re-
spectively, and indenting the margins ap-
propriately; and 
(iv) before subparagraph (A) (as re-
designated by clause (iii)), by inserting the 
following: 
‘‘(1) provide pre-application technical assistance 
workshops for eligible entities and potential appli-
cants in any year in which new awards are expected 
to be made; 
‘‘(2) support initiatives designed to improve the 
research, data collection and infrastructure, and 
evaluation capacity of eligible entities; and 
‘‘(3) evaluate the effectiveness of the program 
and, as appropriate, disseminate the results of the 
evaluation. Such evaluation may include a separate 
analysis of—’’; and 
(7) in section 404H (20 U.S.C. 1070a–28)— 
(A) by striking ‘‘$400,000,000’’ and in-
serting ‘‘$500,000,000’’; and 
(B) by striking ‘‘2009’’ and inserting 
‘‘2020’’. 
Æ 
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