Title: Pell Grant Preservation and Expansion Act
Policy area: Education

Summary:
Pell Grant Preservation and Expansion Act
This bill amends the title IV (Student Assistance) of the Higher Education Act of 1965 to revise the Federal Pell Grant Program. Specifically, it:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1136 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1136

  To improve the structure of the Federal Pell Grant program, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 16, 2017

  Ms. Hirono (for herself, Mrs. Murray, Mr. Reed, Mr. Whitehouse, Ms. 
 Warren, and Mr. Schatz) introduced the following bill; which was read 
 twice and referred to the Committee on Health, Education, Labor, and 
                                Pensions

_______________________________________________________________________

                                 A BILL


 
  To improve the structure of the Federal Pell Grant program, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pell Grant Preservation and 
Expansion Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The United States needs individuals with the knowledge, 
        skills, and abilities that enable them to thrive as educated 
        citizens in society and successfully participate in an 
        interconnected economy.
            (2) Investments in higher education through student aid 
        such as the Federal Pell Grant program under section 401 of the 
        Higher Education Act of 1965 (20 U.S.C. 1070a) help students 
        and families reach, afford, and complete education and training 
        opportunities beyond high school.
            (3) The Federal Pell Grant program is the largest source of 
        federally funded grant aid for postsecondary education.
            (4) The Federal Pell Grant program allows millions of 
        people of the United States to attend college and is especially 
        vital to students of color. Three in 5 African American 
        undergraduate students, and one-half of all Latino 
        undergraduate students, rely on the Federal Pell Grant program.
            (5) The Federal Pell Grant program should continue to be a 
        reliable source of funding for aspiring students, their 
        families, and future generations that they can count on to be 
        there for them when they seek higher education.
            (6) To stabilize Federal Pell Grant funding and ensure the 
        grant will continue to serve millions of students now and in 
        the future, the program should become a fully mandatory program 
        that grows with inflation.
            (7) Protecting surplus funds, restoring prior eligibility 
        cuts, and expanding access to underserved students will give 
        millions of students and families the critical student aid 
        support they need and deserve.

SEC. 3. TABLE OF CONTENTS; REFERENCES.

    (a) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Findings.
Sec. 3. Table of contents; references.
Sec. 4. Funding Federal Pell Grants through mandatory funding.
Sec. 5. Restoring Federal Pell Grant eligibility for borrower defense.
Sec. 6. Federal Pell Grant eligibility for DREAMer students.
Sec. 7. Repeal of suspension of eligibility under the Higher Education 
                            Act of 1965 for grants, loans, and work 
                            assistance for drug-related offenses.
Sec. 8. Extending Federal Pell Grant eligibility of certain short-term 
                            programs.
Sec. 9. Providing Federal Pell grants for Iraq and Afghanistan 
                            veteran's dependents.
Sec. 10. Increasing support for working students by 35 percent.
Sec. 11. Increasing the Federal Pell Grant auto-zero threshold.
Sec. 12. Raising the total semesters of Federal Pell Grant eligibility.
Sec. 13. Conforming amendments.
Sec. 14. Effective date.
    (b) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

SEC. 4. FUNDING FEDERAL PELL GRANTS THROUGH MANDATORY FUNDING.

    (a) Mandatory Funding; Reinstating Eligibility for Incarcerated 
Individuals.--Section 401 (20 U.S.C. 1070a) is amended--
            (1) in subsection (a)(1), by striking ``through fiscal year 
        2017'';
            (2) in subsection (b)--
                    (A) by striking paragraphs (1), (6), and (7);
                    (B) by redesignating paragraph (8) as paragraph 
                (7);
                    (C) by striking subparagraph (A) of paragraph (2);
                    (D) by redesignating subparagraph (B) of paragraph 
                (2) as paragraph (2);
                    (E) by inserting before paragraph (2) (as 
                redesignated by subparagraph (D)) the following:
    ``(1) Amount.--The amount of the Federal Pell Grant for a student 
eligible under this subpart shall be--
            ``(A) the maximum Federal Pell Grant described in paragraph 
        (6); less
            ``(B) the amount equal to the amount determined to be the 
        expected family contribution with respect to such student for 
        such year.'';
                    (F) in paragraph (4), by striking ``maximum amount 
                of a Federal Pell Grant award determined under 
                paragraph (2)(A)'' and inserting ``maximum Federal Pell 
                Grant described in paragraph (6)'';
                    (G) in paragraph (5), by striking ``maximum amount 
                of a Federal Pell Grant award determined under 
                paragraph (2)(A)'' and inserting ``maximum amount of a 
                Federal Pell Grant award described in paragraph (6)'';
                    (H) by inserting after paragraph (5) the following:
            ``(6) Maximum federal pell grant.--
                    ``(A) Award year 2018-2019.--For award year 2018-
                2019, the maximum Federal Pell Grant shall be $6,420.
                    ``(B) Subsequent award years.--For award year 2019-
                2020 and each subsequent award year, the maximum 
                Federal Pell Grant shall be equal to the total maximum 
                Federal Pell Grant for the preceding award year under 
                this paragraph--
                            ``(i) increased by the annual adjustment 
                        percentage for the award year for which the 
                        amount under this subparagraph is being 
                        determined; and
                            ``(ii) rounded to the nearest $5.
                    ``(C) Definition of annual adjustment percentage.--
                In this paragraph, the term `annual adjustment 
                percentage,' as applied to an award year, is equal to 
                the estimated percentage increase in the Consumer Price 
                Index (as determined by the Secretary, using the 
                definition in section 478(f)) for the most recent 
                calendar year ending prior to the beginning of that 
                award year.''; and
                    (I) in paragraph (7), as redesignated by 
                subparagraph (B), by striking ``may exceed'' and all 
                that follows through the period and inserting ``may 
                exceed the maximum Federal Pell Grant available for an 
                award year.'';
            (3) in subsection (f)--
                    (A) in paragraph (1), by striking the matter 
                preceding subparagraph (A) and inserting the following: 
                ``After receiving an application for a Federal Pell 
                Grant under this subpart, the Secretary (including any 
                contractor of the Secretary processing applications for 
                Federal Pell Grants under this subpart) shall, in a 
                timely manner, furnish to the student financial aid 
                administrator at each institution of higher education 
                that a student awarded a Federal Pell Grant under this 
                subpart is attending, the expected family contribution 
                for each such student. Each such student financial 
                administrator shall--''; and
                    (B) in paragraph (3)--
                            (i) by striking ``after academic year 1986-
                        1987''; and
                            (ii) in paragraph (3), by striking ``the 
                        Committee on Appropriations of the Senate, the 
                        Committee on Appropriations of the House of 
                        Representatives, and'';
            (4) by striking subsections (g) and (h);
            (5) by redesignating subsections (i) and (j) as subsections 
        (g) and (h), respectively; and
            (6) by adding at the end the following:
    ``(k) Appropriation of Funds.--There are authorized to be 
appropriated, and there are appropriated, out of any money in the 
Treasury not otherwise appropriated, such sums as may be necessary for 
fiscal year 2017 and each subsequent fiscal year to provide the maximum 
Federal Pell Grant for which a student shall be eligible under this 
section during an award year.''.
    (b) Repeal of Scoring Requirement.--Section 406 of H. Con. Res. 95 
(109th Congress) is amended--
            (1) by striking subsection (b); and
            (2) by striking ``(a) In General.--Upon'' and inserting the 
        following: ``Upon''.

SEC. 5. RESTORING FEDERAL PELL GRANT ELIGIBILITY FOR BORROWER DEFENSE.

    Section 401(c)(5) (20 U.S.C. 1070a(c)(5)) is amended--
            (1) by striking ``(5) The period'' and inserting the 
        following: ``(5) Maximum period.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the period''; and
            (2) by adding at the end the following:
                    ``(B) Exception.--
                            ``(i) In general.--Any Federal Pell Grant 
                        that a student received during a period 
                        described in subclause (I) or (II) of clause 
                        (ii) shall not count towards the student's 
                        duration limits under this paragraph.
                            ``(ii) Applicable periods.--Clause (i) 
                        shall apply with respect to any Federal Pell 
                        Grant awarded to a student to attend an 
                        institution--
                                    ``(I) during a period--
                                            ``(aa) for which the 
                                        student received a loan under 
                                        this title; and
                                            ``(bb) for which the loan 
                                        described in item (aa) is 
                                        forgiven under--

                                                    ``(AA) section 
                                                437(c)(1) or 464(g)(1) 
                                                due to the closing of 
                                                the institution;

                                                    ``(BB) section 
                                                455(h) due to the 
                                                student's successful 
                                                assertion of a defense 
                                                to repayment of the 
                                                loan; or

                                                    ``(CC) section 
                                                432(a)(6), section 
                                                685.215 of title 34, 
                                                Code of Federal 
                                                Regulations (or a 
                                                successor regulation), 
                                                or any other loan 
                                                forgiveness provision 
                                                or regulation under 
                                                this Act, as a result 
                                                of a determination by 
                                                the Secretary or a 
                                                court that the 
                                                institution committed 
                                                fraud or other 
                                                misconduct; or

                                    ``(II) during a period for which 
                                the student did not receive a loan 
                                under this title but for which, if the 
                                student had received such a loan, the 
                                student would have qualified for loan 
                                forgiveness under subclause (I)(bb).''.

SEC. 6. FEDERAL PELL GRANT ELIGIBILITY FOR DREAMER STUDENTS.

    Section 484 (20 U.S.C. 1091) is amended--
            (1) in subsection (a)(5), by inserting ``, or be a Dreamer 
        student, as defined in subsection (u)'' after ``becoming a 
        citizen or permanent resident''; and
            (2) by adding at the end the following:
    ``(u) Dreamer Students.--
            ``(1) In general.--In this section, the term `Dreamer 
        student' means an individual who--
                    ``(A) was younger than 16 years of age on the date 
                on which the individual initially entered the United 
                States;
                    ``(B) has provided a list of each secondary school 
                that the student attended in the United States; and
                    ``(C)(i) has earned a high school diploma, the 
                recognized equivalent of such diploma from a secondary 
                school, or a high school equivalency diploma in the 
                United States or is scheduled to complete the 
                requirements for such a diploma or equivalent before 
                the next academic year begins;
                    ``(ii) has acquired a degree from an institution of 
                higher education or has completed not less than 2 years 
                in a program for a baccalaureate degree or higher 
                degree at an institution of higher education in the 
                United States and has made satisfactory academic 
                progress, as defined in subsection (c), during such 
                time period;
                    ``(iii) at any time was eligible for a grant of 
                deferred action under--
                            ``(I) the June 15, 2012, memorandum from 
                        the Secretary of Homeland Security entitled 
                        `Exercising Prosecutorial Discretion with 
                        Respect to Individuals Who Came to the United 
                        States as Children'; or
                            ``(II) the November 20, 2014, memorandum 
                        from the Secretary of Homeland Security 
                        entitled `Exercising Prosecutorial Discretion 
                        with Respect to Individuals Who Came to the 
                        United States as Children and with Respect to 
                        Certain Individuals Who Are the Parents of U.S. 
                        Citizens or Permanent Residents'; or
                    ``(iv) has served in the uniformed services, as 
                defined in section 101 of title 10, United States Code, 
                for not less than 4 years and, if discharged, received 
                an honorable discharge.
            ``(2) Hardship exception.--The Secretary shall issue 
        regulations that direct when the Department shall waive the 
        requirement of subparagraph (A) or (B), or both, of paragraph 
        (1) for an individual to qualify as a Dreamer student under 
        such paragraph, if the individual--
                    ``(A) demonstrates compelling circumstances for the 
                inability to satisfy the requirement of such 
                subparagraph (A) or (B), or both; and
                    ``(B) satisfies the requirement of paragraph 
                (1)(C).''.

SEC. 7. REPEAL OF SUSPENSION OF ELIGIBILITY UNDER THE HIGHER EDUCATION 
              ACT OF 1965 FOR GRANTS, LOANS, AND WORK ASSISTANCE FOR 
              DRUG-RELATED OFFENSES.

    (a) Repeal.--Subsection (r) of section 484 (20 U.S.C. 1091(r)) is 
repealed.
    (b) Revision of FAFSA Form.--Section 483 of the Higher Education 
Act of 1965 (20 U.S.C. 1090) is amended by adding at the end the 
following:
    ``(i) Convictions.--The Secretary shall not include any question 
about the conviction of an applicant for the possession or sale of 
illegal drugs on the FAFSA (or any other form developed under 
subsection (a)).''.
    (c) Conforming Amendments.--The Act (20 U.S.C. 1001 et seq.) is 
amended--
            (1) in section 428(b)(3) (20 U.S.C. 1078(b)(3))--
                    (A) in subparagraph (C), by striking ``485(l)'' and 
                inserting ``485(k)''; and
                    (B) in subparagraph (D), by striking ``485(l)'' and 
                inserting ``485(k)'';
            (2) in section 435(d)(5) (20 U.S.C. 1085(d)(5))--
                    (A) in subparagraph (E), by striking ``485(l)'' and 
                inserting ``485(k)''; and
                    (B) in subparagraph (F), by striking ``485(l)'' and 
                inserting ``485(k)'';
            (3) in section 484 (20 U.S.C. 1091), as amended by section 
        6, by redesignating subsections (s),(t), and (u) as subsections 
        (r), (s), and (t), respectively;
            (4) in section 485 (20 U.S.C. 1092)--
                    (A) by striking subsection (k); and
                    (B) by redesignating subsections (l) and (m) as 
                subsections (k) and (l), respectively; and
            (5) in section 487(e)(2)(B)(ii)(IV) (20 U.S.C. 
        1094(e)(2)(B)(ii)(IV)), by striking ``(l) of section 485'' and 
        inserting ``(k) of section 485''.

SEC. 8. EXTENDING FEDERAL PELL GRANT ELIGIBILITY OF CERTAIN SHORT-TERM 
              PROGRAMS.

    (a) In General.--Section 401 (20 U.S.C. 1070a), as amended by 
section 4, is further amended by inserting after subsection (h) the 
following:
    ``(i) Job Training Federal Pell Grant Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible career pathway program.--The term 
                `eligible career pathway program' means a program 
                that--
                            ``(i) meets the requirements of section 
                        484(d)(2);
                            ``(ii) is a program of training services 
                        listed under section 122(d) of the Workforce 
                        Innovation and Opportunity Act (29 U.S.C. 
                        3152(d)); and
                            ``(iii) is part of a career pathway, as 
                        defined in section 3 of such Act (29 U.S.C. 
                        3102).
                    ``(B) Job training program.--The term `job training 
                program' means a career and technical education program 
                at an institution of higher education that--
                            ``(i) provides not less than 150, and not 
                        more than 600, clock hours of instructional 
                        time over a period of not less than 8, and not 
                        more than 15, weeks;
                            ``(ii) provides training aligned with the 
                        requirements of employers in the State or local 
                        area, which may include in-demand industry 
                        sectors or occupations, as defined in section 3 
                        of the Workforce Innovation and Opportunity Act 
                        (29 U.S.C. 3102), in the State or local area 
                        (as defined in such section);
                            ``(iii) is a program of training services, 
                        and provided through an eligible provider of 
                        training services, listed under section 122(d) 
                        of such Act (29 U.S.C. 3152(d));
                            ``(iv) provides a student, upon completion 
                        of the program, with a recognized postsecondary 
                        credential, as defined in section 3 of such 
                        Act, that is recognized by employers in the 
                        relevant industry, including credentials 
                        recognized by industry or sector partnerships 
                        in the State or local area where the industry 
                        is located;
                            ``(v) has been determined, by the 
                        institution of higher education, to provide 
                        academic content, an amount of instructional 
                        time, and a recognized postsecondary credential 
                        that are sufficient to--
                                    ``(I) meet the hiring requirements 
                                of potential employers; and
                                    ``(II) satisfy any applicable 
                                educational prerequisite requirement 
                                for professional licensure or 
                                certification, so that the student who 
                                completes the program and seeks 
                                employment qualifies to take any 
                                licensure or certification examination 
                                needed to practice or find employment 
                                in an occupation that the program 
                                prepares students to enter;
                            ``(vi) may include integrated or basic 
                        skills courses; and
                            ``(vii) may be offered as part of an 
                        eligible career pathway program.
            ``(2) In general.--For the award year beginning on July 1, 
        2018, and each subsequent award year, the Secretary shall carry 
        out a program through which the Secretary shall award job 
        training Federal Pell Grants to students in job training 
        programs. Each job training Federal Pell Grant awarded under 
        this subsection shall have the same terms and conditions, and 
        be awarded in the same manner, as a Federal Pell Grant awarded 
        under subsection (a), except as follows:
                    ``(A) A student who is eligible to receive a job 
                training Federal Pell Grant under this subsection is a 
                student who--
                            ``(i) has not yet attained a baccalaureate 
                        degree or postbaccalaureate degree;
                            ``(ii) attends an institution of higher 
                        education;
                            ``(iii) is enrolled, or accepted for 
                        enrollment, in a job training program at such 
                        institution of higher education; and
                            ``(iv) meets all other eligibility 
                        requirements for a Federal Pell Grant (except 
                        with respect to the type of program of study, 
                        as provided in clause (iii)).
                    ``(B) The amount of a job training Federal Pell 
                Grant for an eligible student shall be determined under 
                subsection (b)(1), except that--
                            ``(i) the maximum Federal Pell Grant 
                        awarded under this subsection for an award year 
                        shall be 50 percent of the maximum Federal Pell 
                        Grant awarded under subsection (b)(5) 
                        applicable to that award year; and
                            ``(ii) subsection (b)(4) shall not apply.
            ``(3) Inclusion in total eligibility period.--Any period 
        during which a student receives a job training Federal Pell 
        Grant under this subsection shall be included in calculating 
        the student's period of eligibility for Federal Pell Grants 
        under subsection (c), and any regulations under such subsection 
        regarding students who are enrolled in an undergraduate program 
        on less than a full-time basis shall similarly apply to 
        students who are enrolled in a job training program at an 
        eligible institution on less than a full-time basis.''.
    (b) Additional Safeguards.--Section 496(a)(4) (20 U.S.C. 
1099b(a)(4)) is amended--
            (1) in subparagraph (A), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (B)(ii), by inserting ``and'' after the 
        semicolon; and
            (3) by adding at the end the following:
                    ``(C) if such agency or association has or seeks to 
                include within its scope of recognition the evaluation 
                of the quality of institutions of higher education 
                participating in the job training Federal Pell Grant 
                program under section 401(i), such agency or 
                association shall, in addition to meeting the other 
                requirements of this subpart, demonstrate to the 
                Secretary that, with respect to such job training 
                programs--
                            ``(i) the agency or association's standards 
                        include a process for determining whether the 
                        program provides training aligned with the 
                        requirements of employers in the State or local 
                        area served by the program; and
                            ``(ii) the agency or association requires a 
                        demonstration that the program--
                                    ``(I) has identified each 
                                recognized postsecondary credential 
                                offered and the corresponding industry 
                                or sector partnership that actively 
                                recognizes each credential in the 
                                relevant industry in the State or local 
                                area where the industry is located; and
                                    ``(II) provides the academic 
                                content and amount of instructional 
                                time that is sufficient to--
                                            ``(aa) meet the hiring 
                                        requirements of potential 
                                        employers; and
                                            ``(bb) satisfy any 
                                        applicable educational 
                                        prerequisites for professional 
                                        licensure or certification 
                                        requirements so that the 
                                        student who completes the 
                                        program and seeks employment 
                                        qualifies to take any licensure 
                                        or certification examination 
                                        that is needed to practice or 
                                        find employment in an 
                                        occupation that the program 
                                        prepares students to enter;''.

SEC. 9. PROVIDING FEDERAL PELL GRANTS FOR IRAQ AND AFGHANISTAN 
              VETERAN'S DEPENDENTS.

    (a) Amendments.--Part A of title IV (20 U.S.C. 1070a et seq.) is 
amended--
            (1) in section 401, as amended by section 8, by inserting 
        after subsection (i) the following:
    ``(j) Scholarships for Veteran's Dependents.--
            ``(1) Definition of eligible veteran's dependent.--In this 
        subsection, the term `eligible veteran's dependent' means a 
        dependent or an independent student--
                    ``(A) whose parent or guardian was a member of the 
                Armed Forces of the United States and died as a result 
                of performing military service in Iraq or Afghanistan 
                after September 11, 2001; and
                    ``(B) who, at the time of the parent or guardian's 
                death, was--
                            ``(i) less than 24 years of age; or
                            ``(ii) enrolled at an institution of higher 
                        education on a part-time or full-time basis.
            ``(2) Grants.--
                    ``(A) In general.--The Secretary shall award a 
                Federal Pell Grant, as modified in accordance with the 
                requirements of this subsection, to each eligible 
                veteran's dependent to assist in paying the eligible 
                veteran's dependent's cost of attendance at an 
                institution of higher education.
                    ``(B) Designation.--Federal Pell Grants made under 
                this subsection may be known as `Iraq and Afghanistan 
                Service Grants'.
            ``(3) Prevention of double benefits.--No eligible veteran's 
        dependent may receive a grant under both this subsection and 
        subsection (a).
            ``(4) Terms and conditions.--The Secretary shall award Iraq 
        and Afghanistan Service Grants under this subsection in the 
        same manner and with the same terms and conditions, including 
        the length of the period of eligibility, as the Secretary 
        awards Federal Pell Grants under subsection (a), except that--
                    ``(A) the award rules and determination of need 
                applicable to the calculation of Federal Pell Grants 
                under subsection (a) shall not apply to Iraq and 
                Afghanistan Service Grants;
                    ``(B) the provisions of paragraph (1)(B) and (3) of 
                subsection (b), and subsection (f), shall not apply;
                    ``(C) the maximum period determined under 
                subsection (c)(5) shall be determined by including all 
                Iraq and Afghanistan Service Grants received by the 
                eligible veteran's dependent, including such Grants 
                received under subpart 10 before the effective date of 
                this subsection; and
                    ``(D) an Iraq and Afghanistan Service Grant to an 
                eligible veteran's dependent for any award year shall 
                equal the maximum Federal Pell Grant available under 
                subsection (b)(5) for that award year, except that an 
                Iraq and Afghanistan Service Grant--
                            ``(i) shall not exceed the cost of 
                        attendance of the eligible veteran's dependent 
                        for that award year; and
                            ``(ii) shall be adjusted to reflect the 
                        attendance by the eligible veteran's dependent 
                        on a less than full-time basis in the same 
                        manner as such adjustments are made for a 
                        Federal Pell Grant under subsection (a).
            ``(5) Estimated financial assistance.--For purposes of 
        determinations of need under part F, an Iraq and Afghanistan 
        Service Grant shall not be treated as estimated financial 
        assistance as described in sections 471(3) and 480(j).''; and
            (2) by striking subpart 10 of part A (20 U.S.C. 1070h).
    (b) Effective Date; Transition.--
            (1) Effective date.--The amendments made by this section 
        shall take effect with respect to the award year immediately 
        following the date of enactment of this Act.
            (2) Transition.--The Secretary shall take such steps as are 
        necessary to transition from the Iraq and Afghanistan Service 
        Grants program under subpart 10 of part A of title IV of the 
        Higher Education Act of 1965 (20 U.S.C. 1070h), as in effect on 
        the day before the effective date of this section, and the Iraq 
        and Afghanistan Service Grants program under section 401(j) of 
        the Higher Education Act of 1965 (20 U.S.C. 1070a(j)), as 
        amended by this section.

SEC. 10. INCREASING SUPPORT FOR WORKING STUDENTS BY 35 PERCENT.

    (a) Dependent Students.--Section 475(g)(2)(D) (20 U.S.C. 
1087oo(g)(2)(D)) is amended to read as follows:
                    ``(D) an income protection allowance (or a 
                successor amount prescribed by the Secretary under 
                section 478) of $9,010 for academic year 2018-2019;''.
    (b) Independent Students Without Dependents Other Than a Spouse.--
Section 476(b)(1)(A)(iv) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended to 
read as follows:
                            ``(iv) an income protection allowance (or a 
                        successor amount prescribed by the Secretary 
                        under section 478)--
                                    ``(I) for single or separated 
                                students, or married students where 
                                both are enrolled pursuant to 
                                subsection (a)(2), of $14,010 for 
                                academic year 2018-2019; and
                                    ``(II) for married students where 
                                one is enrolled pursuant to subsection 
                                (a)(2), of $22,460 for academic year 
                                2018-2019;''.
    (c) Independent Students With Dependents Other Than a Spouse.--
Section 477(b)(4) (20 U.S.C. 1087qq(b)(4)) is amended to read as 
follows:
            ``(4) Income protection allowance.--The income protection 
        allowance is determined by the following table (or a successor 
        table prescribed by the Secretary under section 478), for 
        academic year 2018-2019:

                                          ``Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
  Family  Size                                          Number in College
----------------------------------------------------------------------------------------------------------------
                                                                                                     For each
   (including           1               2               3               4               5           additional
    student)                                                                                        subtract:
----------------------------------------------------------------------------------------------------------------
      2              $35,470         $29,410                                                           $6,030
      3               44,170          38,130         $32,070
      4               54,540          45,490          42,450         $36,370
      5               64,360          58,280          52,240          46,190         $40,160
      6               75,260          69,210          63,190          57,090          51,070
For each
additional
   add:                8,500                                                                              ''.
----------------------------------------------------------------------------------------------------------------

    (d) Updated Tables and Amounts.--Section 478(b) (20 U.S.C. 
1087rr(b)) is amended--
            (1) in paragraph (1), by striking subparagraphs (A) and (B) 
        and inserting the following:
                    ``(A) In general.--For each academic year after 
                academic year 2018-2019, the Secretary shall publish in 
                the Federal Register a revised table of income 
                protection allowances for the purpose of sections 
                475(c)(4) and 477(b)(4), subject to subparagraphs (B) 
                and (C).
                    ``(B) Table for independent students.--For each 
                academic year after academic year 2018-2019, the 
                Secretary shall develop the revised table of income 
                protection allowances by increasing each of the dollar 
                amounts contained in the table of income protection 
                allowances under section 477(b)(4) by a percentage 
                equal to the estimated percentage increase in the 
                Consumer Price Index (as determined by the Secretary 
                for the most recent calendar year ending prior to the 
                beginning of the academic year for which the 
                determination is being made), and rounding the result 
                to the nearest $10.''; and
            (2) in paragraph (2), by striking ``shall be developed'' 
        and all that follows through the period at the end and 
        inserting ``shall be developed for each academic year after 
        academic year 2018-2019, by increasing each of the dollar 
        amounts contained in such section for academic year 2018-2019 
        by a percentage equal to the estimated percentage increase in 
        the Consumer Price Index (as determined by the Secretary for 
        the most recent calendar year ending prior to the beginning of 
        the academic year for which the determination is being made), 
        and rounding the result to the nearest $10.''.

SEC. 11. INCREASING THE FEDERAL PELL GRANT AUTO-ZERO THRESHOLD.

    Section 479(c) (20 U.S.C. 1087ss(c)) is amended--
            (1) in paragraph (1)(B), by striking ``$23,000'' and 
        inserting ``$34,000'';
            (2) in paragraph (2)(B), by striking ``$23,000'' and 
        inserting ``$34,000''; and
            (3) in the matter following paragraph (2)(B), by striking 
        ``adjusted according to increases in the Consumer Price Index, 
        as defined in section 478(f)'' and inserting ``annually 
        increased by the estimated percentage change in the Consumer 
        Price Index, as defined in section 478(f), for the most recent 
        calendar year ending prior to the beginning of an award year, 
        and rounded to the nearest $1,000''.

SEC. 12. RAISING THE TOTAL SEMESTERS OF FEDERAL PELL GRANT ELIGIBILITY.

    Section 401(c)(5)(A) (20 U.S.C. 1070a(c)(5)(A)), as amended by 
section 5, is further amended by striking ``12'' each place the term 
appears and inserting ``14''.

SEC. 13. CONFORMING AMENDMENTS.

    The Act (20 U.S.C. 1001 et seq.) is amended--
            (1) in section 401A(d)(1)(B)(i) (20 U.S.C. 1070a-
        1(d)(1)(B)(i)), by striking ``section 401(b)(2)(B)'' and 
        inserting ``section 401(b)(2)'';
            (2) in section 402D(d)(1) (20 U.S.C. 1070a-14(d)(1)), by 
        striking ``section 401(b)(2)(A)'' and inserting ``section 
        401(b)(1)'';
            (3) in section 420R(d)(2) (20 U.S.C. 1070h(d)(2)), by 
        striking ``subsection (b)(1), the matter following subsection 
        (b)(2)(A)(v),'';
            (4) in section 435(a)(5)(A)(i)(I) (20 U.S.C. 
        1085(a)(5)(A)(i)(I)), by striking ``under section 
        401(b)(2)(A)'' and inserting ``, as appropriate, under section 
        401(b)(2)(A) (as in effect on the day before the effective date 
        of the Pell Grant Preservation and Expansion Act) or section 
        401(b)(1)'';
            (5) in section 483(e)(3)(A)(ii) (20 U.S.C. 
        1090(e)(3)(A)(ii)), by striking ``section 401(b)(2)(A)'' and 
        inserting ``section 401(b)(1)'';
            (6) in section 485E(b)(1)(A) (20 U.S.C. 1092f(b)(1)(A)), by 
        striking ``section 401(b)(2)(A)'' and inserting ``section 
        401(b)(1)''; and
            (7) in section 894(f)(2)(C)(ii)(I) (20 U.S.C. 
        1161y(f)(2)(C)(ii)(I)), by striking ``section 401(b)(2)(A)'' 
        and inserting ``section 401(b)(1)''.

SEC. 14. EFFECTIVE DATE.

    Except as otherwise provided, this Act, and the amendments made by 
this Act, shall take effect beginning on July 1, 2018, and shall apply 
to grant and award determinations made under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1001 et seq.) beginning with the 2018-
2019 award year.
                                 <all>