Title: America’s College Promise Act of 2021
Policy area: Education

Summary:
America's College Promise Act of 2021
This bill provides funding and establishes grant programs to expand access to higher education, including by providing free community college to students.
Specifically, the bill establishes a program to waive resident tuition and fees for community college students. The Department of Education (ED) must award grants to states and Indian tribes to pay the federal share (75% of the average resident community college tuition and fees per student) of the program.
As a condition of receiving such a grant, a state must (1) submit a plan to align the requirements for receiving a regular high school diploma with the requirements for entering credit-bearing coursework at community colleges; and (2) submit a plan to improve transfer pathways between institutions of higher education (IHEs), including by ensuring that associate degrees awarded by community colleges are fully transferable to four-year IHEs.
Next, the bill directs ED to award grants to states and Indian tribes for implementing evidence-based institutional reforms and innovative practices to improve student outcomes.
In addition, ED must award grants to participating historically Black colleges and universities, tribal colleges and universities, and minority-serving institutions to waive or significantly reduce the first 60 credits of tuition and fees for low-income students.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1396 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  1st Session
                                S. 1396

To amend the Higher Education Act of 1965 to establish State and Indian 
 Tribe grants for community colleges and grants for Historically Black 
   Colleges and Universities, Tribal Colleges and Universities, and 
         Minority-Serving Institutions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 27, 2021

 Ms. Baldwin (for herself, Mrs. Murray, Mr. Van Hollen, Ms. Klobuchar, 
Mr. Leahy, Ms. Hirono, Mr. Cardin, Ms. Duckworth, Mrs. Gillibrand, and 
  Mr. Durbin) introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
To amend the Higher Education Act of 1965 to establish State and Indian 
 Tribe grants for community colleges and grants for Historically Black 
   Colleges and Universities, Tribal Colleges and Universities, and 
         Minority-Serving Institutions, 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 ``America's College Promise Act of 
2021''.

     TITLE I--STATE AND INDIAN TRIBE GRANTS FOR COMMUNITY COLLEGES

SEC. 101. PROGRAM AUTHORIZED.

    Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
seq.) is amended by adding at the end the following:

     ``PART J--AMERICA'S COLLEGE PROMISE FEDERAL-STATE PARTNERSHIP

   ``Subpart 1--State and Indian Tribe Grants for Community Colleges

``SEC. 499A. IN GENERAL.

    ``From amounts appropriated under section 499G for any fiscal year, 
the Secretary shall award grants to eligible States and Indian tribes 
to pay the Federal share of expenditures needed to carry out the 
activities and services described in section 499E.

``SEC. 499B. FEDERAL SHARE; NON-FEDERAL SHARE.

    ``(a) Federal Share.--
            ``(1) In general.--Subject to paragraph (2), the amount of 
        the Federal share of a grant under this subpart shall be based 
        on a formula, determined by the Secretary, that provides, for 
        each eligible student in the State or Indian tribe, a per-
        student amount that is equal to 75 percent of--
                    ``(A) for the 2022-2023 award year, the average 
                resident community college tuition and fees per student 
                in all States for the most recent year for which data 
                are available; and
                    ``(B) for each subsequent award year, the amount 
                determined under this paragraph for the preceding award 
                year, increased by the lesser of--
                            ``(i) a percentage equal to the estimated 
                        percentage increase in the Consumer Price Index 
                        (as determined by the Secretary) since the date 
                        of such determination; or
                            ``(ii) 3 percent.
            ``(2) Indian tribes.--The amount of the Federal share for 
        an Indian tribe receiving a grant under this subpart shall be 
        the lesser of--
                    ``(A) the amount determined in accordance with 
                paragraph (1) with respect to such tribe; or
                    ``(B) the amount that is 95 percent of the total 
                amount needed to waive tuition and fees for all 
                eligible students enrolled in the community colleges 
                operated or controlled by such tribe.
    ``(b) State or Tribal Share.--
            ``(1) Formula.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                State or tribal share of a grant under this subpart for 
                each fiscal year shall be the amount needed to pay 25 
                percent of the average resident community college 
                tuition and fees per student in the 2022-2023 award 
                year for all eligible students in the State or tribe 
                for such fiscal year.
                    ``(B) Indian tribes.--The tribal share of a grant 
                awarded to an Indian tribe under this subpart for each 
                fiscal year shall be the lesser of--
                            ``(i) the amount determined in accordance 
                        with subparagraph (A) with respect to such 
                        tribe; or
                            ``(ii) 5 percent of the total amount needed 
                        to waive tuition and fees for all eligible 
                        students enrolled in the community colleges 
                        operated or controlled by such tribe.
            ``(2) Need-based aid.--A State or Indian tribe may include, 
        as part of the State or tribal share, any need-based financial 
        aid that--
                    ``(A) is provided from State or tribal funds to an 
                eligible student; and
                    ``(B) may be used by such student to pay costs of 
                attendance other than tuition and fees.
            ``(3) No in-kind contributions.--A State or Indian tribe 
        shall not include in-kind contributions for purposes of the 
        State or tribal share described in paragraph (1).
    ``(c) Determining Number of Eligible Students.--
            ``(1) In general.--For purposes of subsection (a) and 
        subsection (b), the Secretary shall develop and implement a 
        formula for accurately estimating the number of eligible 
        students in a State or Indian tribe and for making adjustments 
        based on the number of eligible students enrolled on less than 
        a full-time basis and the associated tuition and fees charged 
        to such students in proportion to the degree to which each such 
        student is not attending on a full-time basis.
            ``(2) Initial determination.--For the first year for which 
        grants are awarded under this subpart, the number of eligible 
        students in a State or Indian tribe shall be considered to be 
        equal to the number of eligible students who were in the State 
        or tribe for the preceding school year.
    ``(d) Adjustment of Grant Amount.--Not later than 180 days after 
the date on which a State or Indian tribe receives a grant under this 
subpart, the Secretary shall--
            ``(1) in consultation with the State or tribe concerned, 
        determine whether the actual number of eligible students in the 
        State or tribe for the year covered by the grant is greater 
        than the estimated number of such students that was used to 
        determine the amount of the grant; and
            ``(2) in the case of a determination under paragraph (1) 
        that the actual number of eligible students in the State or 
        tribe is higher than such estimate, issue a supplementary grant 
        payment to the State or tribe in an amount that ensures that 
        the total amount of the grant funds received by the State or 
        tribe under this subpart for the year covered by the grant 
        accurately reflects the higher number of eligible students.

``SEC. 499C. APPLICATIONS.

    ``(a) Submission.--In order to receive a grant under this subpart, 
a State or Indian tribe shall submit an application to the Secretary at 
such time, in such manner, and containing such information as the 
Secretary may require.
    ``(b) Contents.--Each application under subsection (a) shall 
include--
            ``(1) an estimate of the number of eligible students in the 
        State or Indian tribe and the cost of waiving community college 
        tuition and fees for all eligible students for each fiscal year 
        covered by the grant;
            ``(2) an assurance that each community college in the 
        State, or operated or controlled by the Indian tribe, as 
        applicable, will waive tuition and fees for eligible students 
        in accordance with section 499D(a);
            ``(3) a description of the promising and evidence-based 
        institutional reforms and innovative practices to improve 
        student outcomes, including transfer and completion rates, that 
        have been or will be adopted by each such community college, 
        such as--
                    ``(A) providing comprehensive academic, career, and 
                student support services (including mentoring, 
                advising, case management services, and career pathway 
                navigation), especially for low-income, first-
                generation, and adult students, and other students 
                belonging to racial and other groups that are 
                historically underrepresented in higher education;
                    ``(B) providing direct support services, or 
                assistance in applying for such services, such as--
                            ``(i) childcare, transportation, and 
                        emergency financial assistance;
                            ``(ii) assistance in obtaining health 
                        insurance coverage and accessing health care 
                        services, including behavioral and mental 
                        health services;
                            ``(iii) affordable housing;
                            ``(iv) nutrition assistance programs or 
                        free or discounted food; and
                            ``(v) means-tested Federal benefit 
                        programs, or similar State, tribal, or local 
                        benefit programs;
                    ``(C) providing accelerated learning opportunities, 
                such as dual or concurrent enrollment programs, 
                including early college high school programs, and 
                reforming course scheduling and credit awarding 
                policies to better meet the needs of students and 
                shorten time to completion;
                    ``(D) strengthening and reforming remedial and 
                developmental education, especially for low-income, 
                first-generation, and adult students, and other 
                students belonging to racial and other groups that are 
                historically underrepresented in higher education, 
                including through the use of multiple measures (such as 
                a student's college entrance examination score, grade 
                point average, high school course list, or a placement 
                examination) to identify students in need of remedial 
                education;
                    ``(E) utilizing career pathways, including through 
                building capacity for career and technical education, 
                as defined in section 3(5) of the Carl D. Perkins 
                Career and Technical Education Act of 2006 (20 U.S.C. 
                2302(5)), and programs of study, as defined in section 
                3(41) of such Act (20 U.S.C. 2302(41)), or degree 
                pathways; or
                    ``(F) providing expanded opportunities for 
                participating in work-based learning, which may include 
                apprenticeship programs, in students' programs of 
                study;
            ``(4) a description of how the State or Indian tribe will 
        ensure that programs leading to a recognized postsecondary 
        credential meet the quality criteria established by the State 
        under section 123(a) of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3153(a)) or other quality criteria 
        determined appropriate by the State or Indian tribe;
            ``(5) an assurance that each community college in the State 
        or under the authority of the Indian tribe have entered into 
        program participation agreements under section 487;
            ``(6) an assurance that the State or Indian tribe will, to 
        the maximum extent practicable, assist eligible students in 
        obtaining information about and accessing means-tested Federal 
        benefit programs and similar, State, tribal, and local benefit 
        programs for which such students may be eligible;
            ``(7) an assurance that, for each year of the grant, the 
        State or Indian tribe will notify each eligible student of the 
        student's remaining eligibility for assistance under this 
        subpart;
            ``(8) if the application is submitted by a State--
                    ``(A) a description of how the State will support 
                the scaling and increased adoption of the reforms and 
                practices described in paragraph (3);
                    ``(B) an assurance that the State will, to the 
                extent practicable, consider changes to State law that 
                will enable more community college students to be 
                eligible for means-tested Federal benefit programs and 
                similar State benefit programs;
                    ``(C) an assurance that the State will meet the 
                requirements of section 499D(b)(1) relating to the 
                alignment of secondary and postsecondary education; and
                    ``(D) an assurance that the State will meet the 
                requirements of section 499D(b)(2) relating to the 
                improvement of transfer pathways between institutions 
                of higher education; and
            ``(9) an assurance that the State or Indian tribe will 
        clearly communicate to prospective students, their families, 
        and the general public--
                    ``(A) plans to implement the program funded under 
                this subpart; and
                    ``(B) how eligible students can attend a community 
                college operated by the State or tribe without paying 
                the cost of tuition and fees.

``SEC. 499D. PROGRAM REQUIREMENTS.

    ``(a) General Requirements for States and Indian Tribes.--As a 
condition of receiving a grant under this subpart, a State or Indian 
tribe shall meet the following requirements:
            ``(1) For each year of the grant the total amount of 
        community college tuition and fees charged to an eligible 
        student in the State or Indian tribe shall be $0.
            ``(2) For each year of the grant no amount of financial 
        assistance for which an eligible student qualifies may be 
        applied to such tuition or fees.
    ``(b) State Requirements.--As a condition of receiving a grant 
under this subpart, a State shall meet the following requirements:
            ``(1) Alignment of k-12 and higher education.--
                    ``(A) In general.--The State shall--
                            ``(i) submit a plan to align the 
                        requirements for receiving a regular high 
                        school diploma from public schools in the State 
                        with the requirements for entering credit-
                        bearing coursework at community colleges in 
                        such State; and
                            ``(ii) not later than 3 years after the 
                        date on which the State first receives a grant 
                        under this subpart, certify to the Secretary 
                        that such alignment has been achieved.
                    ``(B) Failure to certify.--If a State does not 
                provide the certification required under subparagraph 
                (A) by the date specified in such subparagraph, the 
                State shall submit to the Secretary, at such time and 
                in such manner as the Secretary may require--
                            ``(i) a written explanation for the delay 
                        in making the certification; and
                            ``(ii) a plan that will enable the State to 
                        make the certification by not later than 5 
                        years after the date on which the State first 
                        received a grant under this subpart.
            ``(2) Transfer pathways.--
                    ``(A) In general.--The State shall--
                            ``(i) submit a plan, developed in 
                        collaboration with faculty from institutions of 
                        higher education in the State, to improve 
                        transfer pathways between institutions of 
                        higher education in the State, including by--
                                    ``(I) ensuring that associate 
                                degrees awarded by community colleges 
                                in the State are fully transferable to, 
                                and credited as, the first 2 years of 
                                related baccalaureate programs at 
                                public institutions of higher education 
                                in such State; and
                                    ``(II) ensuring that students 
                                attending community colleges in the 
                                State have access to comprehensive 
                                counseling regarding the process for 
                                transferring to a 4-year institution of 
                                higher education; and
                            ``(ii) not later than 3 years after the 
                        date on which the State first receives a grant 
                        under this subpart, certify to the Secretary 
                        that the State is carrying out the plan 
                        submitted in accordance with clause (i) and is 
                        meeting the requirements of subclauses (I) and 
                        (II) of such clause.
                    ``(B) Failure to certify.--If a State does not 
                provide the certification required under subparagraph 
                (A) by the date specified in such subparagraph, the 
                State shall submit to the Secretary, at such time and 
                in such manner as the Secretary may require--
                            ``(i) a written explanation for the delay 
                        in making the certification; and
                            ``(ii) a plan that will enable the State to 
                        make the certification by not later than 5 
                        years after the date on which the State first 
                        received a grant under this subpart.
            ``(3) Applicability.--The Secretary may not apply the 
        requirements under this subsection to an Indian tribe.
    ``(c) No Additional Eligibility Requirements.--A State or Indian 
tribe that receives a grant under this subpart may not impose 
additional eligibility requirements on eligible students other than the 
requirements under this subpart.

``SEC. 499E. ALLOWABLE USES OF FUNDS.

    ``(a) In General.--Except as provided in subsection (b), a State or 
Indian tribe shall use a grant under this subpart only to provide funds 
to each community college in the State, or operated or controlled by 
such tribe, as applicable, to enable each such community college to 
waive tuition and fees for eligible students as required under section 
499D(a).
    ``(b) Additional Uses.--If a State or Indian tribe demonstrates to 
the Secretary that the State or Indian tribe has grant funds remaining 
after meeting the demand for activities described in subsection (a), 
the State or Indian tribe may use those funds to carry out 1 or more of 
the following:
            ``(1) Enhancing the quality and equity of public higher 
        education to improve student outcomes, including transfer and 
        completion rates and labor market outcomes.
            ``(2) Investing in and diversifying the academic workforce.
            ``(3) Expanding the scope and capacity of high-quality 
        academic and occupational skills training programs at community 
        colleges, which may include collaboration with one or more 
        industry or sector partnerships (as defined in section 3 of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3201)).
            ``(4) Improving postsecondary education readiness in the 
        State or Indian tribe, including through outreach and early 
        intervention.
            ``(5) Expanding access to dual or concurrent enrollment 
        programs, such as early college high school programs.
            ``(6) Reducing unmet need at public 4-year institutions of 
        higher education.
    ``(c) Use of Funds for Administrative Purposes.--A State or Indian 
tribe that receives a grant under this subpart may not use any funds 
provided under this subpart for administrative purposes relating to 
such grant.
    ``(d) Maintenance of Effort.--A State or Indian tribe receiving a 
grant under this subpart shall be entitled to receive its full 
allotment of funds under this subpart for a fiscal year only if, for 
each year of the grant, the State or Indian tribe provides--
            ``(1) State fiscal support for higher education per FTE 
        student at a level equal to or exceeding the average amount of 
        State fiscal support for higher education per FTE student 
        provided for the 3 consecutive preceding fiscal years;
            ``(2) financial support for operational expenses (excluding 
        capital expenses and research and development costs) for public 
        4-year institutions of higher education at a level equal to or 
        exceeding the average amount provided for the 3 consecutive 
        preceding State or Indian tribe fiscal years; and
            ``(3) financial support for need-based financial aid at a 
        level equal to or exceeding the average amount provided for the 
        3 consecutive preceding State or Indian tribe fiscal years.
    ``(e) Supplement, Not Supplant.--Funds made available under this 
subpart shall be used to supplement, and not supplant, other Federal, 
State, tribal, and local funds that would otherwise be expended to 
carry out activities described in this section.
    ``(f) Report Requirements.--
            ``(1) Reporting by states and indian tribes.--A State or 
        Indian tribe receiving a grant under this subpart shall submit 
        to the Secretary an annual report that shall include--
                    ``(A) the uses of grant funds under this subpart;
                    ``(B) the progress made in fulfilling the 
                requirements of the grant;
                    ``(C) the rates of transfer, graduation, and 
                attainment of recognized postsecondary credentials at 
                participating community colleges, disaggregated by 
                race, income, and age; and
                    ``(D) any other information that the Secretary may 
                require.
            ``(2) Reporting by secretary.--The Secretary shall, on an 
        annual basis--
                    ``(A) compile and analyze the information described 
                in paragraph (1); and
                    ``(B) prepare and submit to the authorizing 
                committees a report containing--
                            ``(i) the analysis described in 
                        subparagraph (A); and
                            ``(ii) an identification of State and 
                        Indian tribe best practices for achieving the 
                        purpose of this subpart.
    ``(g) Technical Assistance.--The Secretary shall provide technical 
assistance to eligible States and Indian tribes concerning best 
practices regarding the promising and evidence-based institutional 
reforms and innovative practices to improve student outcomes and shall 
disseminate such best practices among the States and Indian tribes.
    ``(h) Continuation of Funding.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        State or Indian tribe receiving a grant under this subpart for 
        a fiscal year may continue to receive funding under this 
        subpart for future fiscal years conditioned on the availability 
        of budget authority and on meeting the requirements of the 
        grant, as determined by the Secretary.
            ``(2) Discontinuation.--The Secretary may discontinue 
        funding of the Federal share of a grant under this subpart if 
        the State or Indian tribe has violated the terms of the grant 
        or is not making adequate progress in implementing the reforms 
        described in the application submitted under section 499C.

``SEC. 499F. AUTOMATIC STABILIZERS FOR AMERICA'S COLLEGE PROMISE.

    ``(a) Maintenance of Effort Relief.--Notwithstanding subsection (d) 
of section 499E, a State that meets the qualifying spending 
requirements may request a waiver of the requirements under such 
subsection (d). The Secretary shall waive the requirements of such 
subsection (d) for a State that makes a qualifying request under this 
subsection as follows:
            ``(1) Tier i.--With respect to each State eligible for 
        relief under tier I, such requirements shall be waived for the 
        fiscal year succeeding the fiscal year in which the 
        determination of the State's eligibility for such relief is 
        made.
            ``(2) Tiers ii through v.--With respect to each State 
        eligible for relief under tier II, III, IV, or V, such 
        requirements shall be waived, in accordance with subsection 
        (d), for--
                    ``(A) the fiscal year in which the determination of 
                the State's eligibility for such relief is made;
                    ``(B) the fiscal year succeeding the fiscal year 
                described in subparagraph (A); or
                    ``(C) both such fiscal years.
    ``(b) Match Relief.--
            ``(1) State match relief.--Notwithstanding subsection (b) 
        of section 499B, a State that is eligible for relief under tier 
        II, III, IV, or V may request relief with respect to the 
        requirements of such subsection (b). The Secretary shall 
        provide relief from the requirements of such subsection (b), 
        for the applicable fiscal year or years, for a State that makes 
        a qualifying request under this paragraph as follows:
                    ``(A) Tier ii.--With respect to a State that is 
                eligible for relief under tier II, the Secretary 
                shall--
                            ``(i) apply section 499B(a)(1) by 
                        substituting `80 percent' for `75 percent'; and
                            ``(ii) apply section 499B(b)(1)(A) by 
                        substituting `20 percent' for `25 percent'.
                    ``(B) Tier iii.--With respect to a State that is 
                eligible for relief under tier III, the Secretary 
                shall--
                            ``(i) apply section 499B(a)(1) by 
                        substituting `85 percent' for `75 percent'; and
                            ``(ii) apply section 499B(b)(1)(A) by 
                        substituting `15 percent' for `25 percent'.
                    ``(C) Tier iv.--With respect to a State that is 
                eligible for relief under tier IV, the Secretary 
                shall--
                            ``(i) apply section 499B(a)(1) by 
                        substituting `90 percent' for `75 percent'; and
                            ``(ii) apply section 499B(b)(1)(A) by 
                        substituting `10 percent' for `25 percent'.
                    ``(D) Tier v.--With respect to a State that is 
                eligible for relief under tier V, the Secretary shall--
                            ``(i) apply section 499B(a)(1) by 
                        substituting `95 percent' for `75 percent'; and
                            ``(ii) apply section 499B(b)(1)(A), by 
                        substituting `5 percent' for `25 percent'.
            ``(2) Applicable fiscal years.--With respect to each State 
        eligible for relief under tier II, III, IV, or V, the Secretary 
        shall provide the relief under paragraph (1), in accordance 
        with subsection (d), for--
                    ``(A) the fiscal year in which the determination of 
                the State's eligibility for such relief is made;
                    ``(B) the fiscal year succeeding the fiscal year 
                described in subparagraph (A); or
                    ``(C) both such fiscal years.
    ``(c) State Eligibility.--A State's eligibility for relief under 
this section shall be determined as follows:
            ``(1) Tier i.--A State shall be eligible for relief under 
        tier I for a fiscal year in which--
                    ``(A)(i) the State was in an elevated unemployment 
                period at any point in the fiscal year; or
                    ``(ii) the Nation as a whole was in an elevated 
                unemployment period at any point in the fiscal year; 
                and
                    ``(B) the State is not eligible for relief under 
                any other tier.
            ``(2) Tier ii.--A State shall be eligible for relief under 
        tier II for a fiscal year in which--
                    ``(A)(i) the State average unemployment rate was 
                equal to or greater than 6.5 percent but less than 7.5 
                percent at any point in the fiscal year; or
                    ``(ii) the national average unemployment rate is 
                equal to or greater than 6.5 percent but less than 7.5 
                percent at any point in the fiscal year; and
                    ``(B) the State is not eligible for relief under 
                tier III, IV, or V.
            ``(3) Tier iii.--A State shall be eligible for relief under 
        tier III for a fiscal year in which--
                    ``(A)(i) the State average unemployment rate was 
                equal to or greater than 7.5 percent but less than 8.5 
                percent at any point in the fiscal year; or
                    ``(ii) the national average unemployment rate is 
                equal to or greater than 7.5 percent but less than 8.5 
                percent at any point in the fiscal year; and
                    ``(B) the State is not eligible for relief under 
                tier IV or V.
            ``(4) Tier iv.--A State shall be eligible for relief under 
        tier IV for a fiscal year in which--
                    ``(A)(i) the State average unemployment rate was 
                equal to or greater than 8.5 percent but less than 9.5 
                percent at any point in the fiscal year; or
                    ``(ii) the national average unemployment rate is 
                equal to or greater than 8.5 percent but less than 9.5 
                percent at any point in the fiscal year; and
                    ``(B) the State is not eligible for relief under 
                tier V.
            ``(5) Tier v.--A State shall be eligible for relief under 
        tier V for a fiscal year in which--
                    ``(A) the State average unemployment rate was equal 
                to or greater than 9.5 percent at any point in the 
                fiscal year; or
                    ``(B) the national average unemployment rate is 
                equal to or greater than 9.5 percent at any point in 
                the fiscal year.
    ``(d) Discretion in the Provision of Relief.--In determining the 
fiscal years for which to provide relief in accordance with subsections 
(a)(2) and (b) to a State that is eligible under tier II, III, IV, or 
V, the Secretary shall take into account the following:
            ``(1) In the case of a State that requests relief under 
        subsection (a)(2), the fiscal years for which the State 
        requests such relief, including--
                    ``(A) if the State requests such relief for the 
                fiscal year for which the determination of the State's 
                eligibility for such relief is made, the amount by 
                which the State is unable to meet the requirements of 
                section 499E(d) for such fiscal year; and
                    ``(B) if the State requests such relief for the 
                fiscal year succeeding the year described in 
                subparagraph (A), the amount by which the State 
                anticipates being unable to meet such requirements for 
                such succeeding fiscal year.
            ``(2) In the case of a State that requests relief under 
        subsection (b), the fiscal years for which the State requests 
        such relief, including--
                    ``(A) if the State requests such relief for the 
                fiscal year for which the determination of the State's 
                eligibility for such relief is made, the extent to 
                which the State is unable to meet the requirements of 
                section 499B(b) for such fiscal year; and
                    ``(B) if the State requests such relief for the 
                fiscal year succeeding the year described in 
                subparagraph (A), the extent to which the State 
                anticipates being unable to meet such requirements for 
                such succeeding fiscal year.
            ``(3) The actual or anticipated timing, severity, and 
        duration of the unemployment rate increase during--
                    ``(A) the fiscal year for which the determination 
                of the State's eligibility for such relief is made;
                    ``(B) the fiscal year succeeding the fiscal year 
                described in subparagraph (A); and
                    ``(C) the fiscal year preceding the fiscal year 
                described in subparagraph (A).
            ``(4) Other factors determined to be relevant by the 
        Secretary.
    ``(e) Indian Tribes.--
            ``(1) In general.--For purposes of determining the 
        eligibility of an Indian tribe to receive relief under this 
        section--
                    ``(A) an Indian tribe that operates or controls a 
                community college in a State that is eligible for 
                relief under any tier shall be treated as a State for 
                purposes of receiving relief under such tier, except as 
                otherwise provided in paragraph (2); and
                    ``(B) in the case of an Indian tribe that operates 
                or controls a community college in at least 2 different 
                States each of which is eligible for relief under 
                different tiers, the Indian tribe shall receive relief 
                under the tier offering the greatest level of relief.
            ``(2) Indian tribe match relief.--Notwithstanding 
        subsection (b) of section 499B, an Indian tribe that is 
        eligible for relief under tier II, III, IV, or V may request 
        relief with respect to the requirements of such subsection (b). 
        The Secretary shall provide relief from the requirements of 
        section 499B(b), for the applicable fiscal year or years, for 
        an Indian tribe that makes a qualifying request under this 
        paragraph, by--
                    ``(A) with respect to applying section 499B(a)(1), 
                providing the appropriate relief described in 
                subsection (b)(1) of this section;
                    ``(B) applying section 499B(a)(2)(B) by 
                substituting `100 percent' for `95 percent'; and
                    ``(C) applying section 499B(b)(1)(B)(ii), by 
                substituting `0 percent' for `5 percent'.
    ``(f) Definitions.--In this section:
            ``(1) Elevated unemployment period.--The term `elevated 
        unemployment period'--
                    ``(A) when used with respect to the Nation as a 
                whole, means a consecutive, 3-month period in a fiscal 
                year in which the national average unemployment rate is 
                not less than 0.5 percentage points above the lowest 
                national average unemployment rate for the 12-month 
                period preceding such 3-month period; and
                    ``(B) when used with respect to a State, means a 
                consecutive, 3-month period in a fiscal year in which 
                the State average unemployment rate is not less than 
                0.5 percentage points above the lowest State average 
                unemployment rate for the 12-month period preceding 
                such 3-month period.
            ``(2) Qualifying spending requirements.--The term 
        `qualifying spending requirements' means the requirements that 
        a State not disproportionately decrease spending for any of the 
        categories described in subparagraphs (A) through (C) of 
        section 499E(d)(1) relative to such State's overall, average 
        decrease in spending for the 3 consecutive preceding fiscal 
        years.
            ``(3) National average unemployment rate.--The term 
        `national average unemployment rate' means the average 
        (seasonally adjusted) rate of total unemployment in all States 
        for a consecutive, 3-month period in a fiscal year, based on 
        data from the Bureau of Labor Statistics of the Department of 
        Labor.
            ``(4) State average unemployment rate.--The term `State 
        average unemployment rate' means the average (seasonally 
        adjusted) rate of total unemployment in a State for a 
        consecutive, 3-month period in a fiscal year, based on data 
        from the Bureau of Labor Statistics of the Department of Labor.

``SEC. 499G. APPROPRIATIONS.

    ``There are authorized to be appropriated, and there are 
appropriated to carry out this subpart (in addition to any other 
amounts appropriated to carry out this subpart and out of any money in 
the Treasury not otherwise appropriated), such sums as may be necessary 
for fiscal year 2022 and each succeeding fiscal year.

``SEC. 499H. DEFINITIONS.

    ``In this subpart:
            ``(1) Apprenticeship.--The term `apprenticeship' means an 
        apprenticeship program registered under the Act of August 16, 
        1937 (commonly known as the `National Apprenticeship Act'; 50 
        Stat. 664, chapter 663; 29 U.S.C. 50 et seq.).
            ``(2) Career pathway.--The term `career pathway' has the 
        meaning given the term in section 3 of the Workforce Innovation 
        and Opportunity Act (29 U.S.C. 3102).
            ``(3) Community college.--The term `community college' 
        means a public institution of higher education at which the 
        highest degree that is predominantly awarded to students is an 
        associate's degree, including 2-year Tribal Colleges or 
        Universities under section 316 and public 2-year institutions 
        of higher education operated by a State.
            ``(4) Dual or concurrent enrollment program.--The term 
        `dual or concurrent enrollment program' has the meaning given 
        the term in section 8101 of the Elementary and Secondary 
        Education Act of 1965.
            ``(5) Early college high school.--The term `early college 
        high school' has the meaning given the term in section 8101 of 
        the Elementary and Secondary Education Act of 1965.
            ``(6) Eligible student.--The term `eligible student' means 
        a student who--
                    ``(A) is enrolled in an eligible program (as 
                defined in section 481(b)) at a community college on 
                not less than a half-time basis;
                    ``(B) either--
                            ``(i) qualifies for in-State resident 
                        community college tuition, as determined by the 
                        State or Indian tribe; or
                            ``(ii) would qualify for such in-State 
                        resident community college tuition, but for the 
                        immigration status of such student; and
                    ``(C) has not been enrolled (whether full-time or 
                less than full-time) for more than 6 semesters (or the 
                equivalent) for which the student received a waiver of 
                community college tuition and fees under section 
                499D(a).
            ``(7) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 102 of the Federally 
        Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5130).
            ``(8) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101.
            ``(9) Means-tested federal benefit program.--The term 
        `means-tested Federal benefit program' has the meaning given 
        the term in section 479.
            ``(10) Recognized postsecondary credential.--The term 
        `recognized postsecondary credential' has the meaning as 
        described in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
            ``(11) State fiscal support for higher education.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `State fiscal support for 
                higher education', used with respect to a State for a 
                fiscal year, means an amount that is equal to the gross 
                amount of applicable State funds appropriated or 
                dedicated, and expended by the State, including funds 
                from lottery receipts, in the fiscal year, that are 
                used to support institutions of higher education and 
                student financial aid for higher education in the 
                State.
                    ``(B) Exclusions.--State fiscal support for higher 
                education for a State for a fiscal year shall not 
                include--
                            ``(i) funds described in subparagraph (A) 
                        that are returned to the State;
                            ``(ii) State-appropriated funds derived 
                        from Federal sources, including funds provided 
                        under section 499B(b) and section 499J(b);
                            ``(iii) amounts that are portions of 
                        multiyear appropriations to be distributed over 
                        multiple years that are not to be spent for the 
                        year for which the calculation under this 
                        paragraph is being made, subject to 
                        subparagraph (D);
                            ``(iv) tuition, fees, or other educational 
                        charges paid directly by a student to a public 
                        institution of higher education or to the 
                        State;
                            ``(v) funds for--
                                    ``(I) financial aid programs 
                                provided to out-of-State institutions 
                                of higher education, including aid to 
                                students enrolled in such institutions;
                                    ``(II) merit-based financial aid to 
                                students awarded on the basis of 
                                predicted or actual academic 
                                performance;
                                    ``(III) financial aid for students 
                                attending, or annual operating expenses 
                                of, proprietary institutions of higher 
                                education (as defined in section 
                                102(b));
                                    ``(IV) financial aid for students 
                                attending, or annual operating expenses 
                                of, unaccredited institutions;
                                    ``(V) research and development;
                                    ``(VI) hospitals, athletics, or 
                                other auxiliary enterprises; or
                                    ``(VII) corporate or other private 
                                donations directed to 1 or more 
                                institutions of higher education 
                                permitted to be expended by the State; 
                                or
                            ``(vi) any other funds that the Secretary 
                        determines shall not be included in the 
                        calculation of State fiscal support for higher 
                        education for such State.
                    ``(C) Adjustments for biennial appropriations.--The 
                Secretary shall take into consideration any adjustments 
                to the calculations under this paragraph that may be 
                required to accurately reflect State fiscal support for 
                higher education in States with biennial appropriation 
                cycles.
                    ``(D) Indian tribes.--In determining the State 
                fiscal support for higher education of an Indian tribe 
                for a fiscal year, the Indian tribe shall be treated as 
                a State except as otherwise determined appropriate by 
                the Secretary.
            ``(12) State fiscal support for higher education per fte 
        student.--The term `State fiscal support for higher education 
        per FTE student', used with respect to a State or Indian tribe 
        for a fiscal year, means, the quotient of--
                    ``(A) the State fiscal support for higher education 
                for the previous fiscal year; divided by
                    ``(B) the number of full-time equivalent students 
                enrolled in public institutions of higher education in 
                such State or tribe for such previous fiscal year.''.

                     TITLE II--STUDENT SUCCESS FUND

SEC. 201. STUDENT SUCCESS FUND.

    Part J of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.), as added by section 101, is further amended by adding at 
the end the following:

                   ``Subpart 2--Student Success Fund

``SEC. 499I. IN GENERAL.

    ``From amounts appropriated under section 499O for any fiscal year, 
the Secretary shall carry out a grant program (to be known as the 
`Student Success Fund') to make grants to eligible entities to carry 
out the activities and services described in section 499L.

``SEC. 499J. FEDERAL SHARE AND MATCHING FUNDS.

    ``(a) Federal Share.--
            ``(1) Formula requirements.--The Federal share of a grant 
        under this subpart shall be based on a formula, developed by 
        the Secretary, that accounts for--
                    ``(A) the State or Indian tribe's relative share of 
                eligible students, as determined in accordance with 
                section 499B(c);
                    ``(B) the State or Indian tribe's relative share of 
                Federal Pell Grant recipients; and
                    ``(C) the ratio between a State or Indian tribe's 
                funding per full-time equivalent (FTE) student at 
                public institutions of higher education and the average 
                net price at public 4-year institutions of higher 
                education, in such a way as to reward States and Indian 
                tribes that keep net prices for students low while 
                maintaining their fiscal support for higher education.
            ``(2) Formula published before application deadline.--The 
        Secretary shall--
                    ``(A) develop the formula described in paragraph 
                (1);
                    ``(B) calculate estimated allotments for each 
                eligible entity under such formula; and
                    ``(C) publish such formula and estimated allotments 
                not later than the date of the notice soliciting 
                applications for participation in the program under 
                this subpart.
    ``(b) Matching Funds.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        eligible entity participating in the program under this subpart 
        shall provide, from non-Federal sources, in cash or in kind--
                    ``(A) in each of the first, second, third, and 
                fourth years of participation in the program, an amount 
                equal to 25 percent of the amount such entity received 
                under subsection (a) with respect to such year;
                    ``(B) in each of the fifth and sixth years of 
                participation in the program, an amount equal to 50 
                percent of the amount such entity received under 
                subsection (a) with respect to such year;
                    ``(C) in each of the seventh and eighth years of 
                participation in the program, an amount equal to 75 
                percent of the amount such entity received under 
                subsection (a) with respect to such year; and
                    ``(D) in the ninth year and each subsequent year 
                thereafter of participation in the program, an amount 
                equal to 100 percent of the amount such entity received 
                under subsection (a) with respect to such year.
            ``(2) Exception for indian tribes.--The Secretary may 
        modify or waive the matching fund requirements under paragraph 
        (1) in the case of an eligible entity that is an Indian tribe.
            ``(3) Reallotment.--If an eligible entity returns to the 
        Secretary any portion of the grant amount provided to such 
        eligible entity under this subpart for any fiscal year, or 
        requests a grant amount that is less than the Federal share 
        determined for such entity in accordance with subsection (a), 
        the Secretary shall reallot such excess amount for the 
        succeeding fiscal year, in addition to the amounts appropriated 
        under 499O for such succeeding fiscal year.
    ``(c) Supplement, Not Supplant.--Grant funds awarded under this 
subpart shall be used to supplement, and not supplant, other Federal, 
State, tribal, and local funds that would otherwise be expended to 
carry out activities assisted under this subpart.

``SEC. 499K. APPLICATIONS.

    ``(a) In General.--To be eligible to participate in the program 
under this subpart, an eligible entity shall submit an application to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may require, including--
            ``(1) a plan that includes--
                    ``(A) the amount of funds requested by the eligible 
                entity under this subpart and the intended use of such 
                funds;
                    ``(B) how the eligible entity will use the 
                requested funds to implement promising and evidence-
                based institutional reforms and innovative practices to 
                improve student outcomes, including--
                            ``(i) implementation of the reforms and 
                        practices identified by such entity under 
                        section 499C(b)(3); and
                            ``(ii) annual implementation benchmarks 
                        that the entity will use to track progress in 
                        implementing such reforms and practices;
                    ``(C) if the eligible entity is a State, how such 
                eligible entity will support the scaling of evidence-
                based and innovative initiatives system-wide;
                    ``(D) how the eligible entity will meet its 
                matching fund requirements under section 499J(b);
                    ``(E) if the eligible entity is a State, how such 
                eligible entity will prioritize spending on the public 
                institutions of higher education specified in paragraph 
                (2)(B); and
                    ``(F) the improvements the eligible entity 
                anticipates in student outcomes, including improvements 
                in transfer rates or completion rates, or both; and
            ``(2) if the eligible entity is a State, an analysis that 
        includes--
                    ``(A) with respect to each public institution of 
                higher education of the eligible entity--
                            ``(i) the total per-student funding;
                            ``(ii) the amount of per-student funding 
                        from State-appropriated funds;
                            ``(iii) the student demographics (including 
                        data on race, income, disability status, and 
                        remediation); and
                            ``(iv) transfer and completion rates, 
                        including such rates among low-income students, 
                        students of color, students with disabilities, 
                        and students in need of remediation; and
                    ``(B) whether, of the public institutions of higher 
                education of the eligible entity, the public 
                institutions of higher education that received less 
                funding on a per-student basis described in clause (i) 
                or (ii), or both, of subparagraph (A), are serving 
                disproportionately high shares of low-income students, 
                students of color, students with disabilities, or 
                students in need of remediation.
    ``(b) Approval.--
            ``(1) In general.--Not later than 180 days after receiving 
        a plan under subsection (a), the Secretary shall--
                    ``(A) approve the plan; or
                    ``(B) require revisions to such plan.
            ``(2) Revisions required.--An eligible entity shall make 
        such revisions as required by the Secretary under paragraph 
        (1)(B).
    ``(c) Publication.--The Secretary shall make each plan approved 
under subsection (b)(1)(A) and each plan revised under subsection 
(b)(2) available to the public on the website of the Department.

``SEC. 499L. PROGRAM REQUIREMENTS.

    ``(a) General Requirements.--
            ``(1) Report on demonstrated progress.--For the third year 
        in which an eligible entity participates in the program under 
        this subpart, and every 2 years thereafter, the eligible entity 
        shall submit a report to the Secretary, in such manner and 
        containing such information as the Secretary may require, that 
        includes--
                    ``(A) the progress in meeting the annual 
                implementation benchmarks included in the application 
                of such eligible entity under section 499K(a)(1)(B);
                    ``(B) the progress in improving the student 
                outcomes identified by the entity under section 
                499K(a)(1)(F); and
                    ``(C) with respect to the 2 years after such report 
                is submitted--
                            ``(i) a plan for the use of funds under 
                        this subpart; and
                            ``(ii) the amount of funds requested by the 
                        eligible entity under this subpart.
            ``(2) Approval.--Not later than 180 days after receiving a 
        plan under paragraph (1)(C)(i), the Secretary shall--
                    ``(A) approve the plan; or
                    ``(B) require revisions to such plan.
            ``(3) Revisions required.--An eligible entity shall make 
        such revisions as required by the Secretary under paragraph 
        (2)(B).
    ``(b) Failure To Meet Requirements.--If an eligible entity does not 
meet the annual implementation benchmarks included in the application 
of such eligible entity under section 499K(a)(1)(B), as required to be 
reported under subsection (a)(1)(A), such eligible entity shall submit 
to the Secretary, at such time and in such manner as the Secretary may 
require--
            ``(1) a written explanation for the delay in meeting such 
        requirements; and
            ``(2) a plan that will enable such eligible entity to meet 
        such requirements not later than 1 year after the date on which 
        the eligible entity submitted the written explanation under 
        paragraph (1).
    ``(c) Publication.--The Secretary shall make each plan approved 
under subsection (a)(2)(A), each plan revised under subsection (a)(3), 
and each plan submitted under subsection (b)(2) available to the public 
on the website of the Department.

``SEC. 499M. ALLOWABLE USES OF FUNDS.

    ``(a) In General.--Except as provided in subsection (b), an 
eligible entity shall use a grant under this subpart only to carry out 
the plan approved or revised for such year under section 499K.
    ``(b) Use of Funds for Administrative Purposes.--An eligible entity 
that receives a grant under this subpart may use not more than 5 
percent of such grant for administrative purposes relating to the grant 
under this subpart.
    ``(c) Prohibited Uses of Funds.--No funds received under this 
section shall be used to--
            ``(1) pay contractors for the provision of pre-enrollment 
        recruitment activities through a revenue sharing agreement; or
            ``(2) fund endowments, athletics, sectarian instruction, or 
        religious worship.

``SEC. 499N. ELIGIBLE ENTITY DEFINED.

    ``In this subpart, the term `eligible entity' means a State or 
Indian tribe that is a recipient of a grant under subpart 1.

``SEC. 499O. APPROPRIATIONS.

    ``(a) Authorization and Appropriations.--There are authorized to be 
appropriated, and there are appropriated to carry out this subpart (in 
addition to any other amounts appropriated to carry out this subpart 
and out of any money in the Treasury not otherwise appropriated), 
$1,000,000,000 for fiscal year 2022 and each succeeding fiscal year.
    ``(b) Availability.--Funds appropriated under subsection (a) shall 
remain available to the Secretary until expended.''.

TITLE III--PATHWAYS TO STUDENT SUCCESS FOR HISTORICALLY BLACK COLLEGES 
   AND UNIVERSITIES, TRIBAL COLLEGES AND UNIVERSITIES, AND MINORITY-
                          SERVING INSTITUTIONS

SEC. 301. GRANTS TO HISTORICALLY BLACK COLLEGES AND UNIVERSITIES, 
              TRIBAL COLLEGES AND UNIVERSITIES, AND MINORITY-SERVING 
              INSTITUTIONS.

    Part J of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.), as added and amended by this Act, is further amended by 
adding at the end the following:

 ``Subpart 3--Grants to Historically Black Colleges and Universities, 
  Tribal Colleges and Universities, and Minority-Serving Institutions

``SEC. 499P. PATHWAYS TO STUDENT SUCCESS FOR HISTORICALLY BLACK 
              COLLEGES AND UNIVERSITIES.

    ``From amounts appropriated under section 499U(a) for any fiscal 
year, the Secretary shall award grants to participating historically 
Black colleges or universities that meet the requirements of section 
499S(a) to--
            ``(1) encourage students to enroll and successfully 
        complete a bachelor's degree at such colleges and universities;
            ``(2) provide incentives to community college students to 
        transfer to such colleges and universities through strong 
        transfer pathways to complete a bachelor's degree program; and
            ``(3) support such colleges and universities to better 
        serve new and existing students by engaging in reforms and 
        innovations designed to improve completion rates and other 
        student outcomes.

``SEC. 499Q. PATHWAYS TO STUDENT SUCCESS FOR TRIBAL COLLEGES AND 
              UNIVERSITIES.

    ``From amounts appropriated under section 499U(a) for any fiscal 
year, the Secretary shall award grants to participating Tribal Colleges 
or Universities that meet the requirements of section 499S(a) to--
            ``(1) encourage students to enroll and successfully 
        complete a bachelor's degree at such Colleges and Universities;
            ``(2) provide incentives to community college students to 
        transfer to such Colleges and Universities through strong 
        transfer pathways to complete a bachelor's degree program; and
            ``(3) support such Colleges and Universities to better 
        serve new and existing students by engaging in reforms and 
        innovations designed to improve completion rates and other 
        student outcomes.

``SEC. 499R. PATHWAYS TO STUDENT SUCCESS FOR ALASKA NATIVE-SERVING 
              INSTITUTIONS, ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC 
              ISLANDER-SERVING INSTITUTIONS, HISPANIC-SERVING 
              INSTITUTIONS, NATIVE AMERICAN-SERVING NONTRIBAL 
              INSTITUTIONS, NATIVE HAWAIIAN-SERVING INSTITUTIONS, AND 
              PREDOMINANTLY BLACK INSTITUTIONS.

    ``From amounts appropriated under section 499U(a) for any fiscal 
year, the Secretary shall award grants to participating Alaska Native-
serving institutions, Asian American and Native American Pacific 
Islander-serving institutions, Hispanic-serving institutions, Native 
American-serving nontribal institutions, Native Hawaiian-serving 
institutions, and Predominantly Black institutions that meet the 
requirements of section 499S(a) to--
            ``(1) encourage students to enroll and successfully 
        complete a bachelor's degree at such institutions;
            ``(2) provide incentives to community college students to 
        transfer to such institutions through strong transfer pathways 
        to complete a bachelor's degree program; and
            ``(3) support such institutions to better serve new and 
        existing students by engaging in reforms and innovations 
        designed to improve completion rates and other student 
        outcomes.

``SEC. 499S. GRANT TERMS.

    ``(a) Institutional Eligibility.--An institution shall meet the 
requirements of this subsection if the institution--
            ``(1) in a public or nonprofit 4-year institution that has 
        a student body of which not less than 35 percent are low-income 
        students;
            ``(2) commits to maintaining or adopting and implementing 
        promising and evidence-based institutional reforms and 
        innovative practices to improve the completion rates and other 
        student outcomes, such as--
                    ``(A) providing comprehensive academic, career, and 
                student support services (including mentoring, 
                advising, case management services, and career pathway 
                navigation), especially for low-income, first-
                generation, and adult students, and other students 
                belonging to racial and other groups that are 
                historically underrepresented in higher education;
                    ``(B) providing direct support services, or 
                assistance in applying for such services, such as--
                            ``(i) childcare, transportation, and 
                        emergency financial assistance;
                            ``(ii) assistance in obtaining health 
                        insurance coverage and accessing health care 
                        services, including behavioral and mental 
                        health services;
                            ``(iii) affordable housing;
                            ``(iv) nutrition assistance programs or 
                        free or discounted food; and
                            ``(v) means-tested Federal benefit 
                        programs, or similar State, tribal, or local 
                        benefit programs;
                    ``(C) providing accelerated learning opportunities 
                and degree pathways, such as dual or concurrent 
                enrollment programs and pathways to graduate and 
                professional degree programs;
                    ``(D) partnering with employers, industry, 
                nonprofit associations, and other groups to provide 
                opportunities to advance learning outside the 
                classroom, including--
                            ``(i) work-based learning opportunities 
                        (such as internships or apprenticeships); or
                            ``(ii) programs designed to improve inter-
                        cultural development and personal growth (such 
                        as foreign exchange and study abroad programs); 
                        or
                    ``(E) strengthening remedial education, especially 
                for low-income, first-generation, and adult students, 
                and other students belonging to racial and other groups 
                that are historically underrepresented in higher 
                education, including through the use of multiple 
                measures (such as a student's college entrance 
                examination score, grade point average, high school 
                course list, or a placement examination) to identify 
                students in need of remedial education;
            ``(3) sets performance goals for improving student outcomes 
        for the duration of the grant; and
            ``(4) if receiving a grant for transfer students, has a 
        formal, statewide articulation agreement with community 
        colleges in the State in which such institution operates that 
        guarantees--
                    ``(A) that a student who earns postsecondary credit 
                at any community college in such State shall be able to 
                fully transfer such credit toward meeting related 
                degree or certificate requirements at such institution; 
                and
                    ``(B) that associate degrees awarded by community 
                colleges in the State are fully transferable to, and 
                credited as, the first 2 years of related baccalaureate 
                programs at such institution.
    ``(b) Grant Amount.--
            ``(1) Initial amount.--For the first year that an eligible 
        institution participates in the grant program under this 
        subpart and subject to paragraph (3), such eligible institution 
        shall receive a grant in an amount based on the product of--
                    ``(A) the actual cost of tuition and fees at the 
                eligible institution in such year (referred to in this 
                subpart as the per-student rebate); and
                    ``(B) the number of eligible students enrolled in 
                the eligible institution for the preceding year.
            ``(2) Subsequent increases.--For each succeeding year after 
        the first year of the grant program under this subpart, each 
        participating eligible institution shall receive a grant in the 
        amount determined under paragraph (1) for such year, except 
        that in no case shall the amount of the per-student rebate for 
        an eligible institution increase by more than 3 percent as 
        compared to the amount of such rebate for the preceding year.
            ``(3) Limitations.--
                    ``(A) Maximum per-student rebate.--No eligible 
                institution participating in the grant program under 
                this subpart shall receive a per-student rebate amount 
                for any year that is greater than the national average 
                of annual tuition and fees at public 4-year 
                institutions of higher education for such year, as 
                determined by the Secretary.
                    ``(B) First-year tuition and fees.--During the 
                first year of participation in the grant program under 
                this subpart, no eligible institution may increase 
                tuition and fees at a rate greater than any annual 
                increase at the eligible institution in the previous 5 
                years.
            ``(4) Students enrolled less than full-time.--The Secretary 
        shall develop and implement a formula for making adjustments to 
        grant amounts under this subpart based on the number of 
        eligible students at each eligible institution enrolled less 
        than full-time and the associated tuition and fees charged to 
        such students in proportion to the degree to which each such 
        student is not attending on a full-time basis.
    ``(c) Application.--An eligible institution that desires a grant 
under this subpart shall submit an application to the Secretary at such 
time, in such manner, and containing such information as the Secretary 
may require.
    ``(d) Use of Funds.--Funds awarded under this subpart to a 
participating eligible institution shall be used to waive or 
significantly reduce tuition and fees for eligible students by an 
amount not to exceed the annual per-student rebate amount. Such funds 
under this subpart may only be used to waive or reduce tuition and fees 
for the first 60 credits for which an eligible student is enrolled in 
the participating eligible institution.
    ``(e) Supplement, Not Supplant.--Funds made available under section 
499U to carry out this subpart shall be used to supplement, and not 
supplant, other Federal, State, tribal, and local funds that would 
otherwise be expended to carry out activities under this subpart.

``SEC. 499T. DEFINITIONS.

    ``In this subpart:
            ``(1) Alaska native-serving institution.--The term `Alaska 
        Native-serving institution' has the meaning given such term in 
        section 317(b).
            ``(2) Asian american and native american pacific islander-
        serving institution.--The term `Asian American and Native 
        American Pacific Islander-serving institution' has the meaning 
        given such term in section 371(c).
            ``(3) Eligible student.--The term `eligible student' means 
        a student, regardless of age, who--
                    ``(A) is enrolled in an eligible program (as 
                defined in section 481(b)) at a participating eligible 
                institution, on at least a half-time basis;
                    ``(B) is a low-income student;
                    ``(C) has been enrolled at such participating 
                eligible institution under this subpart for not more 
                than 60 credits; and
                    ``(D) has not been enrolled (whether full-time or 
                less than full-time) for more than 6 semesters (or the 
                equivalent) for which the student received a benefit 
                under this subpart.
            ``(4) Hispanic-serving institution.--The term `Hispanic-
        serving institution' has the meaning given such term in section 
        502.
            ``(5) Historically black college or university.--The term 
        `historically Black college or university' means a part B 
        institution described in section 322(2).
            ``(6) Low-income student.--The term `low-income student' 
        shall include--
                    ``(A) any student eligible for a Federal Pell Grant 
                under section 401; and
                    ``(B) any student who meets the financial 
                eligibility criteria for receiving a Federal Pell Grant 
                under section 401, but who is ineligible to receive a 
                Federal Pell Grant.
            ``(7) Native american-serving nontribal institution.--The 
        term `Native American-serving nontribal institution' has the 
        meaning given such term in section 371(c).
            ``(8) Native hawaiian-serving institution.--The term 
        `Native Hawaiian-serving institution' has the meaning given 
        such term in section 317(b).
            ``(9) Predominantly black institution.--The term 
        `Predominantly Black institution' has the meaning given such 
        term in section 371(c).
            ``(10) Tribal college or university.--The term `Tribal 
        College or University' has the meaning given the term in 
        section 316(b)(3).

``SEC. 499U. APPROPRIATIONS.

    ``(a) Authorization and Appropriations for HBCU, TCU, and MSI 
Grants.--For the purpose of carrying out this subpart there are 
authorized to be appropriated, and there are appropriated--
            ``(1) $98,100,000 for fiscal year 2022;
            ``(2) $321,040,000 for fiscal year 2023;
            ``(3) $1,912,010,000 for fiscal year 2024;
            ``(4) $1,988,710,000 for fiscal year 2025;
            ``(5) $2,068,960,000 for fiscal year 2026;
            ``(6) $2,151,010,000 for fiscal year 2027;
            ``(7) $2,184,900,000 for fiscal year 2028;
            ``(8) $2,329,370,000 for fiscal year 2029;
            ``(9) $2,423,910,000 for fiscal year 2030; and
            ``(10) $2,521,990,000 for fiscal year 2031 and each 
        succeeding fiscal year.
    ``(b) Availability.--Funds appropriated under subsection (a) for a 
fiscal year are to remain available to the Secretary through the two 
fiscal years following such fiscal year.
    ``(c) Insufficient Funds.--If the amount appropriated under 
subsection (a) for a fiscal year is not sufficient to award each 
institution participating in the grant programs under sections 499P, 
499Q, and 499R a grant under this subpart equal to 100 percent of the 
grant amount determined under section 499S(b), the Secretary may 
ratably reduce the amount of each such grant or take other actions 
necessary to ensure an equitable distribution of such amount 
appropriated under subsection (a).''.
                                 <all>