Sec. 4804. Unmet need for Federal Pell Grant recipients
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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: Subject to paragraph (2), from amounts appropriated under subsection
(f)for any fiscal year, the Secretary may award grants to eligible States and Indian tribes described in paragraph
(3)to pay the Federal share of expenditures needed to carry out the activities and services described in subsection (d). The Secretary may not make grants under paragraph
(1)in fiscal year unless all grants eligible to be made under subpart 1 have been made for such fiscal year. A State or Indian tribe may only be eligible for a grant under this section in a fiscal year if such State or Indian tribe received a grant under subpart 1 for such fiscal year. Subject to paragraph (2), 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 Pell Grant recipients; provides, for each Pell Grant recipient in the State or Indian tribe, a per-student amount that is at least 75 percent of— for the first award year for which grants are made under this section, the average unmet need of Pell Grant recipients in all States for the most recent year for which data are available; and for each subsequent award year, the amount determined under this subparagraph for the preceding award year, increased by the lesser of— 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 3 percent. In any case in which not less than 75 percent of the students at the institutions of higher education 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 Pell Grant recipients enrolled in such institutions of higher education. 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 unmet need of Pell Grant recipients in all States in the first award year for which grants are made under this section for all Pell Grant recipients in the State or Indian tribe, respectively, for such fiscal year, except as provided in clause (ii). In the case of an Indian tribe described in paragraph (1)(B), the amount of such Indian tribe’s tribal share shall not exceed 5 percent of the total amount needed to pay the average unmet need for all Pell Grant recipients enrolled in the institutions of higher education described in such paragraph. A State or Indian tribe may include, as part of the State or tribal share, any need-based financial aid that— is provided from State or tribal funds to a Pell Grant recipient; and may be used by such student to pay costs of attendance other than tuition and fees. The Secretary shall develop and implement a process for accurately estimating the number of Pell Grant recipients in a State or Indian tribe for purposes of paragraphs
(1)and (2). For the first year for which grants are awarded under this section, the number of Pell Grant recipients in a State or Indian tribe shall be considered to be equal to the number of Pell Grant recipients that were in the State or tribe for the preceding school year. Not later than 180 days after the date on which a State or Indian tribe receives a grant under this section, the Secretary shall— in consultation with the State or tribe concerned, determine whether the actual number of Pell Grant recipients in the State or Tribe 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 if it is determined under paragraph
(1)that the actual number of Pell Grant recipients in the State or Tribe is higher than such estimate, issue a supplementary grant payment to the State or tribe in an amount that ensures that the total amount of the grant funds received by the State or tribe under this section for the year covered by the grant accurately reflects the higher number of Pell Grant recipients. In order to receive a grant under this section, a State or tribe shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. A State or Indian tribe shall use a grant under this section only to provide to each Pell Grant recipient a grant that equals the unmet need of such recipient. 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 rates of transfer, graduation, and attainment of recognized postsecondary credentials at institutions of higher education in the State or Indian tribe, including such rates disaggregated by race, income, and age, and including any other information as the Secretary may require. The Secretary annually shall— compile and analyze the information described in paragraph (2); and prepare and submit a report to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Labor 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 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. Funds made available under this section shall be used to supplement, and not supplant, other Federal, State, and local funds that would otherwise be expended to carry out activities under this section. In this section: 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. The term Pell Grant recipient means a student who— attends a public institution of higher education on not less than a half-time basis; is a recipient of a Federal Pell Grant under subpart 1 of part A of title IV of this Act; is maintaining satisfactory progress (as defined in section 484(c)) in the student’s course of study; is enrolled in an eligible program (as defined in section 481(b)); and either— qualifies for in-State resident institution of higher education tuition, as determined by the State or Indian tribe; or would qualify for such in-State tuition, but for the immigration status of such student. An otherwise Pell Grant recipient shall lose eligibility under this section— after 3 years of receiving benefits under this section for enrollment at a community college (as defined in section 499F); and after 6 years of receiving benefits under this section for enrollment in a 4-year institution of higher education. 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 State has the meaning given the term in section 103. The term unmet need means, with respect to a Pell Grant recipient, the amount determined by calculating the difference between— the institution's cost of attendance (as defined in section 472) for the year for which the determination is made; and the sum of— the total amount of need-based grant aid and merit-based grant aid, from Federal, State, and institutional sources, provided to such Pell Grant recipient for the year for which the determination is made; and the expected family contribution for such Pell Grant recipient for the year for which the determination is made. For the purpose of making grants under this section there are authorized to be appropriated such sums as may be necessary to carry out this section for fiscal year 2021 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), the Secretary may ratably reduce the amount of each such grant or take other actions necessary to ensure an equitable distribution of such amount. The Secretary is authorized, subject to the availability of appropriations, to transfer amounts authorized to be appropriated to carry out subpart 1 for a fiscal year to make grants under this section if all grants eligible to be made under such subpart have been made for such fiscal year. .
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