Sec. 101. State and Indian tribe grants for community college

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From amounts appropriated under subsection (g)(1) 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 subsection (e). Subject to subparagraph (B), the Federal share of a grant under this section shall be based on a formula, determined by the Secretary, that— accounts for the State or Indian tribe’s share of eligible students; and provides, for each eligible student in the State or Indian tribe, a per-student amount that is— not less than 300 percent of the per-student amount of the State or Indian tribe share, determined under paragraph (2), subject to subclause (II); and not greater than 75 percent of— for the 2016–2017 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 for each subsequent award year, the average resident community college tuition and fees per student in all States calculated under this subclause for the preceding year, increased by the lesser of— the percentage by which the average resident community college tuition and fees per student in all States for the most recent year for which data are available increased as compared to such average for the preceding year; or 3 percent.

In any case in which not less than 75 percent of the students at the community colleges operated or controlled by an Indian tribe are low-income students, the amount of the Federal share for such Indian tribe shall be not less than 95 percent of the total amount needed to waive tuition and fees for all eligible students enrolled in such community colleges. The State or tribal share of a grant under this section for each fiscal year shall be the amount needed to pay 25 percent of the average community college resident tuition and fees per student in all States in the 2016–2017 award year for all eligible students in the State or Indian tribe, respectively, for such fiscal year, except as provided in clause (ii).

In a case in which not less than 5 percent of the students at the community colleges operated or controlled by an Indian tribe are low-income students, the amount of such Indian tribe’s tribal share shall not exceed 5 percent of the total amount needed to waive tuition and fees for all eligible students enrolled in such community colleges. A State or Indian tribe may include any need-based financial aid provided through State or tribal funds to eligible students as part of the State or tribal share.

A State or Indian tribe shall not include in-kind contributions for purposes of the State or tribal share described in subparagraph (A). To be eligible for a grant under this section, a State or Indian tribe shall agree to waive community college resident tuition and fees for all eligible students for each year of the grant. For each fiscal year for which a State or Indian tribe desires a grant under this section, an application shall be submitted to the Secretary at such time, in such manner, and containing such information as the Secretary may require.

Such application shall be submitted by— in the case of a State, the Governor, the State agency with jurisdiction over higher education, or another agency designated by the Governor to administer the program under this section; or in the case of an Indian tribe, the governing body of such tribe. Each State or Indian tribe application shall include, at a minimum— an estimate of the number of eligible students in the State or Indian tribe and the cost of waiving community college resident tuition and fees for all eligible students for each fiscal year covered by the grant, with annual increases of an amount that shall not exceed 3 percent of the prior year’s average resident community college tuition and fees; an assurance that all community colleges in the State or under the jurisdiction of the Indian tribe, respectively, will waive resident tuition and fees for eligible students in programs that are— academic programs with credits that can fully transfer via articulation agreement toward a baccalaureate degree or postbaccalaureate degree at any public institution of higher education in the State; or occupational skills training programs that lead to a recognized postsecondary credential that is in an in-demand industry sector or occupation in the State; a description of the promising and evidence-based institutional reforms and innovative practices to improve student outcomes, including completion or transfer rates, that have been or will be adopted by the participating community colleges, such as— providing comprehensive academic and student support services, including mentoring and advising, especially for first-generation and minority students; providing accelerated learning opportunities, such as dual or concurrent enrollment programs; advancing competency-based education; strengthening remedial education, especially for low-income students, first generation students, adult students, and students from other underrepresented groups in postsecondary education; implementing course redesigns of high-enrollment courses to improve student outcomes and reduce cost; or utilizing career pathways or degree pathways; a description of how the State or Indian tribe will promote alignment between its public secondary school and postsecondary education systems, including between 2-year and 4-year public institutions of higher education and with minority-serving institutions described in section 371 of the Higher Education Act of 1965 ( 20 U.S.C. 1067q ), to expand awareness of and access to postsecondary education, reduce the need for remediation and repeated coursework, and improve student outcomes; 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; an assurance that all participating community colleges in the State or under the authority of the Indian tribe have entered into program participation agreements under section 487 of the Higher Education Act of 1965 ( 20 U.S.C. 1094 ); 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 section; and a description of how the State or Indian tribe will promote the improved performance of public institutions of higher education through funding reform, including through the use of a performance-based model that allocates a portion of the State or Indian tribe's public higher education expenditures based on the performance of those institutions on State-specified metrics, including successful student outcomes.

A State or Indian tribe shall use a grant under this section only to provide funds to participating community colleges to waive resident tuition and fees for eligible students who are enrolled in— academic programs with credits that can fully transfer via articulation agreement toward a baccalaureate degree or postbaccalaureate degree at any public institution of higher education in the State; or occupational skills training programs that lead to a recognized postsecondary credential that is in an in-demand industry sector or occupation in the State.

If a State or Indian tribe demonstrates to the Secretary that it has grant funds remaining after meeting the demand for activities described in paragraph (1), the State or Indian tribe may use those funds to carry out one or more of the following: Expanding the waiver of resident tuition and fees at community college to students who are returning students or otherwise not enrolling in postsecondary education for the first time, and who meet the student eligibility requirements of clauses

(ii)through

(v)of subsection (f)(4)(A). Expanding the scope and capacity of high-quality academic and occupational skills training programs at community colleges. Improving postsecondary education readiness in the State or Indian tribe, through outreach and early intervention. Expanding access to dual or concurrent enrollment programs. Improving affordability at 4-year public institutions of higher education. A State or Indian tribe that receives a grant under this section may not use any funds provided under this section for administrative purposes relating to such grant. A State or Indian tribe receiving a grant under this section is entitled to receive its full allotment of funds under this section for a fiscal year only if, for each year of the grant, the State or Indian tribe provides financial support for public higher education at a level equal to or exceeding the average amount provided per full-time equivalent student for public institutions of higher education for the 3 consecutive preceding State or Indian tribe fiscal years. In making the calculation under this paragraph, the State or Indian tribe shall exclude capital expenses and research and development costs and include need-based financial aid for students who attend public institutions of higher education. A State or Indian tribe receiving a grant under this section shall submit an annual report to the Secretary— describing the uses of grant funds under this section, the progress made in fulfilling the requirements of the grant, and the rates of graduation, transfer, and attainment of a recognized postsecondary credential for the students at participating community colleges; and including any other information as the Secretary may require. The Secretary annually shall— compile and analyze the information described in paragraph (5); and prepare and submit a report to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and the Workforce of the House of Representatives containing the analysis described in subparagraph

(A)and an identification of State and Indian tribe best practices for achieving the purpose of this section. 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 as described in subsection (d)(2)(C) and shall disseminate such best practices among the States and Indian tribes. A State or Indian tribe receiving a grant under this section for a fiscal year may continue to receive funding under this section for future fiscal years conditioned on the availability of budget authority and on meeting the requirements of the grant, as determined by the Secretary. The Secretary may discontinue funding of the Federal share of a grant under this section 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 subsection (d). In this section: 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 ). 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 tribally controlled colleges under section 316 of the Higher Education Act of 1965 ( 20 U.S.C. 1059c ) and public 2-year State institutions of higher education. The term dual or concurrent enrollment program means an academic program through which a secondary school student is able simultaneously to earn credit toward a secondary school diploma and a postsecondary degree or other recognized postsecondary credential, including an early college high school program. The term eligible student means a student who— enrolls in a community college for the first time, regardless of age, after the date of enactment of this Act; or is enrolled in a community college, for the first time, as of the date of enactment of this Act; attends the community college on not less than a half-time basis; is maintaining satisfactory progress, as defined in section 484(c) of the Higher Education Act of 1965 ( 20 U.S.C. 1091(c) ), in the student's course of study; qualifies for resident tuition, as determined by the State or Indian tribe; and is enrolled in an eligible program described in subsection (d)(2)(B). An otherwise eligible student shall lose eligibility 3 calendar years after first receiving benefits under this section. The term in-demand industry sector or occupation has the meaning given the term in section 3 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3102 ). 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. 479a ). The term institution of higher education has the meaning given the term in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 ). 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 ). The term Secretary means the Secretary of Education. The term State has the meaning given the term in section 103 of the Higher Education Act of 1965 ( 20 U.S.C. 1003 ). For the purpose of making grants under this section, there are authorized to be appropriated, and there are appropriated— $1,365,000,000 for fiscal year 2016; $3,020,000,000 for fiscal year 2017; $3,854,000,000 for fiscal year 2018; $5,395,000,000 for fiscal year 2019; $7,061,000,000 for fiscal year 2020; $8,085,000,000 for fiscal year 2021; $10,182,000,000 for fiscal year 2022; $13,019,000,000 for fiscal year 2023; $13,583,000,000 for fiscal year 2024; and $14,171,000,000 for fiscal year 2025 and each succeeding fiscal year. Funds appropriated under paragraph

(1)shall remain available to the Secretary until expended. If the amount appropriated under paragraph

(1)for a fiscal year is not sufficient to award each participating State and Indian tribe a grant under this section that is equal to the minimum amount of the Federal share described in subsection (b)(1), the Secretary may ratably reduce the amount of each such grant or take other actions necessary to ensure an equitable distribution of such amount.

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