Sec. 499. State-Federal college affordability partnership
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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: The purpose of this part is to establish a State-Federal partnership that incentivizes State investment in public higher education. In this part: The term eligible State means a State that provides net State operating support per FTE student in an amount equal to not less than 50 percent of the amount that reflects the maximum Federal Pell Grant award amount.
The term full-time equivalent student number means a number that reflects the sum of the number of students enrolled full time at a public institution of higher education in the State, plus the full-time equivalent of the number of students enrolled part time (determined on the basis of the quotient of the sum of the credit hours of all part-time students divided by 12) at such institutions. The Secretary may establish a methodology for calculating the full-time equivalent student number and may offer guidance to States in determining the State's full-time equivalent student number for purposes of this part.
The term net State operating support means an amount that is equal to the amount of State funds and local government appropriations used to support public higher education annual operating expenses in the State, calculated in accordance with subparagraphs
(A)and (B). A State's net State operating support shall be an amount that is equal to the difference resulting from the gross amount of State funds annually appropriated for public higher education operating expenses in the State; minus— such appropriations that are returned to the State; State-appropriated funds derived from Federal sources, including funds provided under this part; local government funds not appropriated for operating support for public higher education; amounts that are portions of multi-year appropriations to be distributed over multiple years; tuition charges remitted to the State to offset State appropriations; State funding for students in non-credit continuing or adult education courses and non-credit extension courses; sums appropriated to private nonprofit institutions of higher education, or to proprietary institutions of higher education, for capital outlay or operating expenses; and any other funds excluded under subparagraph (B). Net State operating support does not include funds for— student aid programs that provide grants to students attending in-State private nonprofit institutions of higher education, in-State proprietary institutions of higher education, independent institutions, in-State public institutions, and out-of-State institutions; capital outlay; deferred maintenance; research and development; or any other funds that the Secretary may exclude. The term Net State Operating Support per FTE student means, for a fiscal year— the net State operating support for the previous fiscal year; divided by the full-time equivalent student number for the previous fiscal year. The term public institution means an institution of higher education (as defined in section 101) whose liabilities are backed by the full faith and credit of the State or its equivalent, as determined in accordance with section 668.15 of title 34, Code of Federal Regulations, or any successor regulation. The term private nonprofit institution of higher education means an institution of higher education, as defined in section 102, that is a private nonprofit institution. The term proprietary institution of higher education has the meaning given the term in section 102(b). The Secretary shall award annual block grants to eligible States to encourage States to provide additional funding for public higher education. An eligible State receiving a block grant under this part shall allocate 100 percent of block grant funding to public institutions for public higher education expenditures in accordance with subsection (c). A public institution that receives funds under this title shall— use a portion of such funds to directly reduce tuition costs or mitigate the need to raise tuition and fees for students residing in the State; use a portion of such funds to support the enrollment of low-income students (as measured by eligibility for Federal Pell Grants) in the institution; and create a publicly available report that documents an institution’s efforts to satisfy the requirements described in paragraphs
(1)and (2). A public institution may not use funds received under this title to increase its endowment. No funds awarded under this title may be used for the modernization, renovation, or repair of stadiums or other facilities of a public institution primarily used for athletic contests or events for which admission is charged to the general public. Nothing in this section shall be construed to prohibit a State from establishing additional requirements for public institutions in the State for the purpose of increasing the affordability of higher education. The Secretary shall award a block grant to an eligible State for a fiscal year in an amount equal to the product of— the marginal Federal match amount, as determined under subsection
(b)for the fiscal year and adjusted in accordance with subsection (c); multiplied by the full-time equivalent student number for the previous fiscal year. The Federal match amount will be determined in accordance with the following table: Net State Operating Support Per FTE student Federal match amount per FTE student Below $2,865 No match $2,865 to $4,388 20% of the excess over $2,865 $4,389 to $5,443 $304.6, plus 30% of the excess over $4,389 $5,444 to $6,303 $620.8, plus 40% of the excess over $5,444 $6,304 to $7,449 $964.4, plus 50% of the excess over $6,304 $7,450 to $8,595 $1,536.9, plus 10% of the excess over $7,450 Above $8,595 No match above $1,651.4. For each award year subsequent to 2014, the dollar amounts in the table under subsection
(b)shall only be increased (rounded to the nearest dollar) by the percentage by which— the maximum Pell Grant award amount for such award year, exceeds $5,730. If the sums made available under this part for any fiscal year are insufficient to pay the full amounts that all States are eligible to receive in accordance with this section for such year, the Secretary shall establish procedures for ratably reducing each State's award amount. Beginning for the first fiscal year after a State receives a block grant under this part, the State shall prepare and submit an annual report to the Secretary, which shall include detailed information about the State's use of grant funds to increase the affordability of public higher education and increase the enrollment of low-income students (as measured by eligibility for a Federal Pell Grant). A report described in paragraph
(1)shall— describe all actions taken to incentivize public institutions to reduce tuition costs, or mitigate the need to raise tuition and fees for in-State students; explain the extent to which public institutions supported the enrollment of low-income students who are eligible for Federal Pell Grants or other need-based financial assistance; disclose how the State distributed the allotment provided under this part to all public institutions, and the rationale for such distribution; include the aggregated graduation rates for low-income students (based on eligibility for Federal Pell Grants), part-time students, and transfer students, disaggregated by type of degree or credential; and be publicly available in a manner that is easily accessible to parents, students, and consumer advocates. Each State receiving an allotment under this part for a fiscal year shall— ensure that the amount expended by the State, from funds derived from non-Federal sources, for net State operating support per FTE student for the preceding fiscal year was not less than the amount expended by the State for net State operating support per FTE student for the second preceding fiscal year; and demonstrate the State's compliance with subparagraph
(A)by providing the Secretary with a written assurance and detailed documentation. If a State does not comply with paragraph (1), the State's grant award under this part shall be reduced by an amount equal to the product of— the difference between— the net State operating support per FTE student for the second preceding fiscal year; minus the net State operating support per FTE student for the preceding fiscal year; multiplied by the full-time equivalent student number for the previous fiscal year. Each State receiving an allotment under this part for a fiscal year shall, as a condition of receiving the allotment, maintain the level of State student financial aid support provided for costs associated with postsecondary education at not less than the level of such support provided for the academic year immediately preceding the year for which the State is receiving the allotment. Notwithstanding subsections
(b)and (c), the Secretary may waive any maintenance of support and effort requirement described in such subsections for a State if there is a clear case of a significant economic downturn in the State. Such determination shall only be made by the Secretary following a written appeal by the State that documents recent and significant decreases in economic activity in the State. There are authorized to be appropriated to carry out this part such sums as may be necessary for fiscal year 2015 and each of the five succeeding fiscal years. .
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Sec. 499
State-Federal college affordability partnership
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