Sec. 4802. Student Success Fund
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Part I of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq.), as added by section 4801, is further amended by adding at the end the following: From amounts appropriated under section 499N 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. The Federal share of a grant under this subpart shall be determined using the formula determined under section 499B(1).
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— in each of the first, second, third, and fourth year 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; in each of the fifth and sixth year 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; in each of the seventh and eighth year 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 in each 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. The Secretary may waive the matching fund requirements under paragraph
(1)in the case of an eligible entity that is an Indian tribe if at least 75 percent of the students at the institutions of higher education operated or controlled by such Indian tribe are low-income students. If an eligible entity returns to the Secretary any portion of the sums allocated to such eligible entity under this section for any fiscal year, the Secretary shall reallot such excess as part of the available appropriated amount for the succeeding fiscal year. Grant funds awarded under this subpart shall be used to supplement, and not supplant, other Federal, State, and local funds that would otherwise be expended to carry out activities assisted under this subpart. An eligible entity may only participate in the program under this subpart in a year in which such entity receives a grant under subpart 1. 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— a plan that includes— the amount of funds requested by the eligible entity under this subpart and the intended use of such funds; how the eligibility entity will use the requested funds to implement the promising and evidence-based institutional reforms and innovative practices to improve student outcomes identified by such entity under section 499C(b)(3), including annual implementation benchmarks that the entity will use to track progress in implementing such reforms and practices; how the eligible entity will meet its matching fund requirements under section 499I(b); 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 the improvements the eligible entity anticipates in student outcomes, including improvements in transfer rates or completion rates, or both. if the eligible entity is a State, an analysis that includes— with respect to each public institution of higher education of the eligible entity— the total per-student funding; the amount of per-student funding from State-appropriated funds; the student demographics (including, data on race, income, disability status, and remediation); and transfer and completion rates, including such rates among low-income students, students of color, students with disabilities, and students in need of remediation; and an analysis of 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. Not later than 180 days after receiving a plan under subsection (a), the Secretary shall— approve the plan; or require revisions to such plan. An eligible entity shall make such revisions as required by the Secretary under paragraph (1)(B). 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. 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— the progress in meeting the annual implementation benchmarks included in the application of such eligible entity under section 499J(a)(1)(B); the progress in improving the student outcomes identified by the entity under section 499(J)(a)(1)(E); and with respect to the 2 years after such report is submitted— a plan for the use of funds under this subpart; and the amount of funds requested by the eligible entity under this subpart . Not later than 180 days after receiving a plan under paragraph (1)(C)(i), the Secretary shall— approve the plan; or require revisions to such plan. An eligible entity shall make such revisions as required by the Secretary under paragraph (2)(B). If an eligible entity does not meet the annual implementation benchmarks included in the application of such eligible entity under section 499J(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— a written explanation for the delay in meeting such requirements; and 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). 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. Except as provided in subsection (b), an eligible entity shall use a grant under this subpart only to allocate funds in accordance with the plan submitted for such year under section 499J(a)(1). An eligible entity that receives a grant under this subpart may use not more than 10 percent of such grant for administrative purposes relating to the grant under this subpart. In this subpart, the term eligible entity means a State or Indian tribe that received a grant under subpart 1 for the fiscal year in which such State or Indian tribe receives a grant under this subpart. For the purpose of making grants under this subpart there are authorized to be appropriated and there are appropriated $500,000,000 for fiscal year 2021 and each succeeding fiscal year. Funds appropriated under subsection
(a)shall remain available to the Secretary until expended. .
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Sec. 4802
Student Success Fund
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