Sec. 442. Allocation formula
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Section 442 ( 20 U.S.C. 1087–52 ) is amended to read as follows: For a fiscal year in which the amount appropriated under section 441(b) exceeds $700,000,000, the Secretary shall— reserve the lesser of— an amount equal to 20 percent of the amount by which the amount appropriated under section 441(b) exceeds $700,000,000; or $150,000,000; and allocate the amount reserved under clause
(i)to each improved institution in an amount— that bears the same proportion to the amount reserved under clause
(i)as the total amount of all Federal Pell Grant funds awarded at the improved institution for the second preceding fiscal year bears to the total amount of Federal Pell Grant funds awarded at improved institutions participating under this part for the second preceding fiscal year; and is not— less than $10,000; or greater than $1,500,000. For purposes of this paragraph, an improved institution is an institution that, on the date the Secretary makes an allocation under subparagraph (A)(ii) is, with respect to— the completion rate or graduation rate of Federal Pell Grant recipients at the institution, in the top 10 percent of— if the institution is an institution described in any of clauses
(iv)through
(ix)of section 132(d)(1)(B), all such institutions participating under this part for the preceding fiscal year; or if the institution is an institution described in any of clauses
(i)through
(iii)of section 132(d)(1)(B), all such institutions participating under this part for the preceding fiscal year; or the improvement of the completion rate or graduation rate between the preceding fiscal year and such date, in the top 10 percent of the institutions described in clause (i). For purposes of determining the completion rate or graduation rate under this section, a Federal Pell Grant recipient shall be counted as a completor or graduate if, within the normal time for completion of or graduation from the program, the student has completed or graduated from the program, or enrolled in any program of an institution participating in any program under this title for which the prior program provides substantial preparation. If an institution returns to the Secretary any portion of the sums allocated to such institution under this paragraph for any fiscal year, the Secretary shall reallot such excess to improved institutions on the same basis as under subparagraph (A)(ii)(I). From the amounts appropriated under section 441(b), the Secretary shall reserve to carry out section 448 such amounts as may be necessary for fiscal year 2019 and each of the 5 succeeding fiscal years. From the amount appropriated under section 441(b) for a fiscal year and remaining after the Secretary reserves funds under subsection (a), the Secretary shall allocate to each institution— for fiscal year 2019, an amount equal to the greater of— 90 percent of the amount the institution received under this subsection and subsection
(a)for fiscal year 2018, as such subsections were in effect with respect to such fiscal year (in this subparagraph referred to as the 2018 amount for the institution ); or the fair share amount for the institution determined under subsection (d); for fiscal year 2020, an amount equal to the greater of— 80 percent of the 2018 amount for the institution; or the fair share amount for the institution determined under subsection (d); for fiscal year 2021, an amount equal to the greater of— 60 percent of the 2018 amount for the institution; or the fair share amount for the institution determined under subsection (d); for fiscal year 2022, an amount equal to the greater of— 40 percent of the 2018 amount for the institution; or the fair share amount for the institution determined under subsection (d); and for fiscal year 2023, an amount equal to the greater of— 20 percent of the 2018 amount for the institution; or the fair share amount for the institution determined under subsection (d). If the amount appropriated under section 441(b) for a fiscal year and remaining after the Secretary reserves funds under subsection
(a)is less than the amount required to be allocated to the institutions under this subsection, then the amount of the allocation to each institution shall be ratably reduced. If the amounts allocated to each institution are ratably reduced under subparagraph
(A)for a fiscal year and additional amounts are appropriated for such fiscal year, the amount allocated to each institution from the additional amounts shall be increased on the same basis as the amounts under subparagraph
(A)were reduced (until each institution receives the amount required to be allocated under this subsection). From the amount appropriated under section 441(b) for fiscal year 2024 and each succeeding fiscal year and remaining after the Secretary reserves funds under subsection (a), the Secretary shall allocate to each institution the fair share amount for the institution determined under subsection (d). The fair share amount for an institution for a fiscal year shall be equal to the sum of the following: An amount equal to 50 percent of the amount that bears the same proportion to the available appropriated amount for such fiscal year as the total amount of Federal Pell Grant funds disbursed at the institution for the preceding fiscal year bears to the total amount of Federal Pell Grant funds awarded at all institutions participating under this part for the preceding fiscal year. An amount equal to 50 percent of the amount that bears the same proportion to the available appropriated amount for such fiscal year as the total amount of the undergraduate student need at the institution for the preceding fiscal year bears to the total amount of undergraduate student need at all institutions participating under this part for the preceding fiscal year. In this subsection: The term available appropriated amount means— the amount appropriated under section 441(b) for a fiscal year, minus the amounts reserved under subsection
(a)for such fiscal year. The term average cost of attendance means, with respect to an institution, the average of the attendance costs for a fiscal year for students which shall include— tuition and fees, computed on the basis of information reported by the institution to the Secretary, which shall include— total revenue received by the institution from undergraduate tuition and fees for the second year preceding the year for which it is applying for an allocation; and the institution's enrollment for such second preceding year; standard living expenses equal to 150 percent of the difference between the income protection allowance for a family of 5 with 1 in college and the income protection allowance for a family of 6 with 1 in college for a single independent student; and books and supplies, in an amount not exceeding $800. The term undergraduate student need means, with respect to an undergraduate student for a fiscal year, the lesser of the following: The total of the amount equal to (except the amount computed by this clause shall not be less than zero)— the average cost of attendance for the fiscal year, minus the total amount of each such undergraduate student’s expected family contribution (computed in accordance with part F of this title) for the preceding fiscal year. $12,500. If an institution returns more than 10 percent of its allocation under subsection (d), the institution's allocation for the next fiscal year shall be reduced by the amount returned. The Secretary may waive this paragraph for a specific institution if the Secretary finds that enforcing this paragraph would be contrary to the interest of the program. The Secretary shall, from time to time, set dates before which institutions must file applications for allocations under this part. .
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Sec. 442
Allocation formula
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