[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3086 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 3086
To amend the Higher Education Act of 1965 to establish grants for
tuition-free community colleges, student success grants, 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
October 19, 2023
Ms. Baldwin (for herself, Ms. Hirono, Mr. Padilla, Ms. Klobuchar, Mr.
Durbin, Mr. Van Hollen, Mr. Cardin, Mrs. Murray, Ms. Duckworth, and Mr.
Lujan) 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 grants for
tuition-free community colleges, student success grants, 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
2023''.
TITLE I--GRANTS FOR TUITION-FREE 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--Grants for Tuition-free Community College
``SEC. 499A. IN GENERAL.
``From amounts appropriated under section 499G for any fiscal year,
the Secretary shall award grants to eligible States and eligible Tribal
Colleges and Universities 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.--
``(A) Amount.--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
enrolled in a community college operated or controlled
by the State or in an eligible Tribal College or
University, a per-student amount that is equal to the
applicable percent described in subparagraph (B) of--
``(i) for the 2024-2025 award year, the
average unweighted resident community college
tuition and fees per student in all States for
the most recent year for which data are
available; and
``(ii) 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.
``(B) Applicable percent.--The applicable percent
for a State receiving a grant under this subpart shall
be--
``(i) for the 2024-2025 award year, 100
percent;
``(ii) for the 2025-2026 award year, 95
percent;
``(iii) for the 2026-2027 award year, 90
percent;
``(iv) for the 2027-2028 award year, 85
percent; and
``(v) for the 2028-2029 award year and each
subsequent award year, 80 percent.
``(2) Tribal colleges and universities.--The amount of the
Federal share for an eligible Tribal College or University
receiving a grant under this subpart shall be the greater of--
``(A) 100 percent of the per-student amount
determined in accordance with clause (i) or (ii) of
paragraph (1)(A), as applicable, with respect to
eligible students enrolled in such eligible Tribal
College or University (based on full-time equivalent
enrollment); or
``(B) the amount that is 100 percent of the total
amount needed to set tuition and fees to $0 for all
eligible students enrolled in such eligible Tribal
College or University for the 2023-2024 award year,
increased by the percentage increase in the Consumer
Price Index (as determined by the Secretary) between
July 1, 2023, and the applicable award year, and
adjusted to reflect the enrollment in such eligible
Tribal College or University for such applicable award
year.
``(b) State Share.--
``(1) Formula.--
``(A) In general.--Subject to subparagraph (B), the
State share of a grant under this subpart for each
fiscal year shall be the amount needed to pay the
applicable percent described in subparagraph (B) of the
average unweighted resident community college tuition
and fees per student in the 2024-2025 award year for
all eligible students in the State for such award year.
``(B) Applicable percent.--The applicable
percentage shall be--
``(i) for the 2024-2025 award year, 0
percent;
``(ii) for the 2025-2026 award year, 5
percent;
``(iii) for the 2026-2027 award year, 10
percent;
``(iv) for the 2027-2028 award year, 15
percent; and
``(v) for the 2028-2029 award year and each
subsequent award year, 20 percent.
``(C) Obligation to provide share.--The State shall
provide the State share even if the State is able to
set tuition and fees charged to eligible students
attending community colleges operated or controlled by
the State to $0 as required by section 499D without
such State share.
``(D) No double counting funds.--No funds that
count toward the maintenance of effort requirement
under section 499D(c) may also count toward the State
share under this subsection.
``(E) Special rule for outlying areas and
territories.--
``(i) In general.--If the Secretary
determines that requiring an outlying area or
territory to provide a State share in
accordance with this subsection would represent
a substantial hardship for the outlying area or
territory, the Secretary shall reduce or waive
the State share for such area or territory. If
the Secretary so reduces or waives the amount
of the State share of an outlying area or
territory, the Secretary shall increase the
applicable percent used to calculate the
Federal share for such area or territory, in
proportion to the reduction in the applicable
percent used to calculate such State share.
``(ii) Definition.--For the purposes of
this subparagraph, the term `outlying area or
territory' means the Commonwealth of Puerto
Rico, the District of Columbia, Guam, American
Samoa, the United States Virgin Islands, the
Commonwealth of the Northern Mariana Islands,
and the Freely Associated States.
``(2) Inclusion of state financial aid and local funds.--In
the case of a State that demonstrates to the satisfaction of
the Secretary that community colleges operated or controlled by
such State will not experience a net reduction in total per-
student revenue (including revenue derived from tuition and
fees) as compared to the preceding State fiscal year in such
State, a State may include, as part of the State share--
``(A) any financial aid that is provided from State
funds to eligible students for such students' cost of
attendance that is not awarded predominantly on the
basis of merit; and
``(B) any funds provided to community colleges by
local governments in such State for the purpose of
carrying out this subpart, including for the purpose of
setting community college tuition and fees for eligible
students to $0 as required under section 499D.
``(3) Relationship to maintenance of effort.--The inclusion
of funds described in paragraph (2) as part of a State's share
shall modify the maintenance of effort requirements under
section 499D(c) in accordance with the provisions of--
``(A) section 499H(12)(B)(iii) with respect to
funds included under paragraph (2)(A); and
``(B) section 499H(12)(B)(ii), with respect to
funds included under paragraph (2)(B).
``(4) No in-kind contributions.--A State shall not include
in-kind contributions for purposes of the State 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 and for making adjustments based on the number of
eligible students enrolled in the community colleges operated
or controlled by a State or in an eligible Tribal College or
University 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 eligible Tribal College or University
shall be considered to be equal to the number of eligible
students who were in the State or eligible Tribal College or
University for the preceding school year.
``(d) Adjustment of Grant Amount.--Not later than 180 days after
the date on which a State or eligible Tribal College or University
receives a grant under this subpart, the Secretary shall--
``(1) in consultation with the State or eligible Tribal
College or University concerned, determine whether the actual
number of eligible students in the State or eligible Tribal
College or University 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
eligible Tribal College or University is higher than such
estimate, issue a supplementary grant payment to the State or
eligible Tribal College or University in an amount that ensures
that the total amount of the grant funds received by the State
or eligible Tribal College or University under this subpart for
the year covered by the grant accurately reflects the higher
number of eligible students.
``(e) Community Colleges Operated or Controlled by State To Include
Community Colleges Operated or Controlled by Local Governments Within
the State.--For purposes of this subpart, the term `community college
operated or controlled by a State' shall include a community college
operated or controlled by a local government within such State.
``(f) Inapplicability of State Requirements to Eligible TCUs.--The
Secretary may not apply any requirements applicable only to States
under this subpart to an eligible Tribal College or University,
including the requirements under subsection (b) and subsection (b) and
(c) of section 499D.
``SEC. 499C. APPLICATIONS.
``(a) Submission.--In order to receive a grant under this subpart,
a State or an eligible Tribal College or University 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
enrolled in the community colleges operated or controlled by
the State or in the eligible Tribal College or University and
the cost of waiving community college tuition and fees for all
eligible students for each award year covered by the grant;
``(2) in the case of a State, a list of each of the
community colleges operated or controlled by the State;
``(3) an assurance that each community college operated or
controlled by the State, or the eligible Tribal College or
University, as applicable, will set community college tuition
and fees for eligible students to $0 as required by section
499D(a);
``(4) 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;
``(5) a description of how the State or eligible Tribal
College or University will ensure that programs leading to a
recognized postsecondary credential meet the quality criteria
established by the State under section 122(b)(1) of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3152(b)(1))
or other quality criteria determined appropriate by the State
or eligible Tribal College or University;
``(6) an assurance that each community college operated or
controlled by the State or the eligible Tribal College or
University, as applicable, has entered into a program
participation agreement under section 487;
``(7) an assurance that the State or eligible Tribal
College or University will assist eligible students in
obtaining information about and accessing means-tested Federal
benefit programs and similar, State, tribal, and local benefit
programs that can provide financial assistance for any
component of the student's cost of attendance, as defined under
section 472, other than tuition and fees;
``(8) an assurance that, for each year of the grant, the
State or eligible Tribal College or University will notify each
eligible student of the student's remaining eligibility for
assistance under this subpart;
``(9) 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 (4);
``(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
``(10) an assurance that the State or eligible Tribal
College or University will clearly communicate to prospective
students, including students with prior college experience who
have not completed a postsecondary degree or credential, 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 or controlled by the State or eligible
Tribal College or University without paying tuition and
fees.
``SEC. 499D. PROGRAM REQUIREMENTS.
``(a) General Requirements.--As a condition of receiving a grant
under this subpart, a State or eligible Tribal College or University
shall meet the following requirements:
``(1) Ensure that the total amount of tuition and fees
charged to an eligible student in the State or the eligible
Tribal College or University 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.
``(3) The State or eligible Tribal College or University
may not use any funds provided under this subpart for
administrative purposes relating to such grant.
``(b) State Requirements.--In addition to the requirements under
subsection (a), 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;
``(II) increasing the
transferability of individual courses
within the certificate or associate
programs offered by community colleges
in the State to related baccalaureate
programs offered by institutions of
higher education in such State to
maximize the transferability of credits
for students who transfer before
completing an associate degree;
``(III) expanding the use of
reverse transfer policies that allow
institutions to--
``(aa) implement the
process of retroactively
granting a certificate or
associate degree to students
who had not completed the
requirements for such
certificate or degree before
they transferred; and
``(bb) allow academic
credits for coursework
completed at a 4-year
institution to be applied to a
previously attended community
college for the purpose of
obtaining an associate degree
or a certificate; and
``(IV) 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)
through (IV) 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 eligible Tribal
College or University.
``(c) State Maintenance of Effort.--A State 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 provides--
``(1) State fiscal support for higher education per full-
time equivalent student at a level equal to or exceeding the
average amount of State fiscal support for higher education per
full-time equivalent student provided for the 3 consecutive
preceding fiscal years;
``(2) financial support for operating 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 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 fiscal years.
``(d) No Additional Eligibility Requirements.--A State or eligible
Tribal College or University that receives a grant under this subpart
may not impose additional eligibility requirements on eligible students
other than the requirements under this subpart.
``(e) Eligibility for Benefits.--No individual shall be determined
to be ineligible to receive benefits provided under this subpart
(including tuition and fees set to $0 and other aid provided under this
subpart) on the basis of citizenship, alienage, or immigration status.
``SEC. 499E. ALLOWABLE USES OF FUNDS.
``(a) In General.--Except as provided in subsection (b), a State or
eligible Tribal College or University shall use a grant under this
subpart only to ensure that the total amount of tuition and fees
charged to an eligible student in the State or the eligible Tribal
College or University shall be $0.
``(b) Additional Uses.--If a State or an eligible Tribal College or
University demonstrates to the Secretary that the State or eligible
Tribal College or University has grant funds remaining after meeting
the demand for activities described in subsection (a), the State or
eligible Tribal College or University may use those funds to carry out
1 or more of the following:
``(1) Providing need-based financial aid to students that
may be used by such students to pay any component of cost of
attendance, as defined under section 472.
``(2) Improving student outcomes by implementing evidence-
based institutional reforms or practices.
``(3) Enhancing the quality and equity of public higher
education to improve student outcomes, including transfer and
completion rates and labor market outcomes.
``(4) Investing in and diversifying the academic workforce.
``(5) 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)).
``(6) Improving postsecondary education readiness in the
State, including through outreach and early intervention.
``(7) Expanding access to dual or concurrent enrollment
programs, such as early college high school programs.
``(8) Reducing unmet need at public 4-year institutions of
higher education.
``(c) Use of Funds for Administrative Purposes.--A State or Tribal
College or University that receives a grant under this subpart may not
use any funds provided under this subpart for administrative purposes
relating to such grant.
``(d) 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.
``(e) Report Requirements.--
``(1) Reporting by states .--A State 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 best
practices for achieving the purpose of this
subpart.
``(f) Technical Assistance.--The Secretary shall provide technical
assistance to States and eligible Tribal Colleges and Universities
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 such entities.
``(g) Continuation of Funding.--
``(1) In general.--Except as provided in paragraph (2), a
State or an eligible Tribal College or University 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 eligible Tribal College or University 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.
``(h) Rule of Construction Regarding BIE Funds.--Nothing in this
subpart shall be construed to impact the availability of funds from, or
uses of funds provided by, the Bureau of Indian Education for Tribal
Colleges and Universities.
``SEC. 499F. AUTOMATIC STABILIZERS FOR AMERICA'S COLLEGE PROMISE.
``(a) Maintenance of Effort Relief.--Notwithstanding subsection (c)
of section 499D, a State that meets the qualifying spending
requirements may request a waiver of the requirements under such
subsection (c). The Secretary shall waive the requirements of such
subsection (c) 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) State Share 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)(B)(v) by
substituting `85 percent' for `80 percent'; and
``(ii) apply section 499B(b)(1)(B)(v) by
substituting `15 percent' for `20 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)(B)(v) by
substituting `90 percent' for `80 percent';
``(ii) apply section 499B(b)(1)(B)(v) by
substituting `10 percent' for `20 percent';
``(iii) apply section 499B(a)(1)(B)(iv) by
substituting `90 percent' for `85 percent'; and
``(iv) apply section 499B(b)(1)(B)(iv) by
substituting `10 percent' for `15 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)(B)(v) by
substituting 95 percent' for `80 percent';
``(ii) apply section 499B(b)(1)(B)(v) by
substituting `5 percent' for `20 percent';
``(iii) apply section 499B(a)(1)(B)(iv) by
substituting `95 percent' for `85 percent';
``(iv) apply section 499B(b)(1)(B)(iv) by
substituting `5 percent' for `15 percent';
``(v) apply section 499B(a)(1)(B)(iii) by
substituting `95 percent' for `90 percent'; and
``(vi) apply section 499B(b)(1)(B)(iii) by
substituting `5 percent' for `10 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)(B)(v) by
substituting 100 percent' for `80 percent';
``(ii) apply section 499B(b)(1)(B)(v) by
substituting `0 percent' for `20 percent';
``(iii) apply section 499B(a)(1)(B)(iv) by
substituting `100 percent' for '85 percent';
``(iv) apply section 499B(b)(1)(B)(iv) by
substituting `0 percent' for `15 percent';
``(v) apply section 499B(a)(1)(B)(iii) by
substituting `100 percent' for `90 percent';
``(vi) apply section 499B(b)(1)(B)(iii) by
substituting `0 percent' for `10 percent';
``(vii) apply section 499B(a)(1)(B)(ii) by
substituting `100 percent' for `95 percent';
and
``(viii) apply section 499B(b)(1)(B)(ii) by
substituting `0 percent' for `5 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 499D(c) 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) Continued Payment to Employees.--A State that receives relief
under subsection (a) or (b) shall, to the greatest extent practicable,
continue to pay its employees of, and contractors with, public
institutions of higher education in the State during the period in
which the State is receiving such relief.
``(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 paragraphs (1) through (3) of section
499D(c) 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 2024 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) a degree-granting public institution of
higher education at which--
``(i) the highest degree awarded is an
associate degree; or
``(ii) an associate degree is the
predominant degree awarded;
``(B) an eligible Tribal College or University;
``(C) a degree-granting branch campus of a 4-year
public institution of higher education if, at such
branch campus--
``(i) the highest degree awarded is an
associate degree; or
``(ii) an associate degree is the
predominant degree awarded; or
``(D) at the designation of the Secretary, in the
case of a State that does not operate or control any
institution that meets a definition under subparagraph
(A) or (C), a college or similarly defined and
structured academic entity--
``(i) that was in existence on July 1,
2021;
``(ii) within a 4-year public institution
of higher education; and
``(iii) at which--
``(I) the highest degree awarded is
an associate degree; or
``(II) an associate degree is the
predominant degree awarded.
``(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 as an undergraduate student in an
eligible program (as defined in section 481(b)) at a
community college on not less than a half-time basis;
``(B) in the case of a student who is enrolled in a
community college that charges different tuition rates
on the basis of in-State or in-district residency,
either--
``(i) qualifies for in-State or in-district
resident community college tuition; or
``(ii) would qualify for such in-State or
in-district resident tuition at such community
college, 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 community college tuition and
fees of the student were set to $0 pursuant to section
499D(a);
``(D) is not enrolled in a dual or concurrent
enrollment program or early college high school; and
``(E) in the case of a student who is a United
States citizen, has filed a FAFSA described in section
483 for the applicable award year for which the student
is enrolled.
``(7) Eligible tribal college or university.--The term
`eligible Tribal College or University' means--
``(A) a 2-year Tribal College or University; or
``(B) a degree-granting Tribal College or
University--
``(i) at which the highest degree awarded
is an associate degree; or
``(ii) an associate degree is the
predominant degree awarded.
``(8) Evidence-based institutional reforms and innovative
practices.--The term `evidence-based institutional reforms and
innovative practices' means practices or reforms that meet the
criteria for `evidence tier 1' and `evidence tier 2' under
section 4611(a)(2) of the Elementary and Secondary Education
Act of 1965, as determined by the Secretary in accordance with
such section.
``(9) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 101.
``(10) Means-tested federal benefit program.--The term
`means-tested Federal benefit program' has the meaning given
the term in section 479.
``(11) Recognized postsecondary credential.--The term
`recognized postsecondary credential' has the meaning given the
term in section 3 of the Workforce Innovation and Opportunity
Act (29 U.S.C. 3102).
``(12) State fiscal support for higher education.--
``(A) Inclusions.--
``(i) 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--
``(I) 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; and
``(II) any funds described in
clause (ii).
``(ii) Local funds.--In the case of a State
that includes, as part of the State share under
section 499B(b)(2)(B) for an award year, funds
provided to community colleges by local
governments in such State for the purpose of
carrying out this subpart, local funds provided
to community colleges operated or controlled by
such State for operating expenses (excluding
capital expenses and research and development
costs) shall be included in the calculation of
the State fiscal support for higher education
for such award year under clause (i).
``(B) Exclusions.--State fiscal support for higher
education for a State for a fiscal year shall not
include--
``(i) funds described in subparagraph
(A)(i) 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) funds that are included in the
State share under section 499B(b) (except as
provided in subparagraph (A)(ii) of this
paragraph), including funds included in the
State share in accordance with paragraph (2)(A)
of such section;
``(iv) 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 (C);
``(v) tuition, fees, or other educational
charges paid directly by a student to a public
institution of higher education or to the
State;
``(vi) funds for--
``(I) financial aid to students
attending, or operating expenses of--
``(aa) out-of-State
institutions of higher
education;
``(bb) proprietary
institutions of higher
education (as defined in
section 102(b)); or
``(cc) institutions of
higher education not accredited
by an agency or association
recognized by the Secretary
pursuant to section 496;
``(II) financial aid to students
awarded predominantly on the basis of
merit, including programs awarded on
the basis of predicted or actual
academic performance or assessment;
``(III) research and development;
``(IV) hospitals, athletics, or
other auxiliary enterprises; or
``(V) corporate or other private
donations directed to 1 or more
institutions of higher education
permitted to be expended by the State;
or
``(vii) 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.
``(13) State fiscal support for higher education per full-
time equivalent student.--The term `State fiscal support for
higher education per full-time equivalent student', when used
with respect to a State for a fiscal year, means, the amount
that is equal to--
``(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 for such previous fiscal year.
``(14) Tribal college or university.--The term `Tribal
College or University' has the meaning given such term in
section 316(b)(3).''.
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.
``(a) 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.
``(b) Priority.--In awarding funds under this subpart, the
Secretary shall give priority to eligible entities that propose to use
a significant share of grant funds to improve enrollment, retention,
transfer, or completion rates or labor market outcomes among students
of color, low-income students, students with disabilities, students in
need of remediation, first generation college students, student
parents, and other underserved student populations.
``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 Tribal College or University
relative share of eligible students, as determined in
accordance with section 499B(c);
``(B) the State or Tribal College or University
relative share of Federal Pell Grant recipients; and
``(C) the ratio between a State or Tribal College
or University 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 tribal colleges and universities.--The
Secretary may modify or waive the matching fund requirements
under paragraph (1) in the case of an eligible entity that is a
Tribal College or University.
``(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)(4); 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
Tribal College or University 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 2024 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 2024;
``(2) $321,040,000 for fiscal year 2025;
``(3) $1,912,010,000 for fiscal year 2026;
``(4) $1,988,710,000 for fiscal year 2027;
``(5) $2,068,960,000 for fiscal year 2028;
``(6) $2,151,010,000 for fiscal year 2029;
``(7) $2,184,900,000 for fiscal year 2030;
``(8) $2,329,370,000 for fiscal year 2031;
``(9) $2,423,910,000 for fiscal year 2032; and
``(10) $2,521,990,000 for fiscal year 2033 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).''.
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