Sec. 2. Program authorized
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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: From amounts appropriated under section 499G 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 section 499E. Subject to paragraph (2), the Federal share of a grant under this subpart shall be based on a formula, determined by the Secretary, that— accounts for the State or Indian tribe’s share of eligible students; accounts for the ratio between a State or Indian tribe’s funding per full-time equivalent
(FTE)student at public colleges and universities and the average net price at State public four-year colleges and universities, in such a way as to reward States that keep net prices for students low while maintaining their investment in higher education; and provides, for each eligible student in the State or Indian tribe, a per-student amount that is at least 75 percent of— for the 2020–2021 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 amount determined under this clause 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 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 subpart 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 2020–2021 award year for all eligible students in the State or Indian tribe, respectively, for such fiscal year, except as provided in subparagraph (B). In the case of an Indian tribe described in subsection (a)(2), 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, as part of the State or tribal share, any need-based financial aid that— is provided from State or tribal funds to an eligible student; and may be used by such student to pay costs of attendance other than tuition and fees. A State or Indian tribe shall not include in-kind contributions for purposes of the State or tribal share described in paragraph (1). The Secretary of Education shall develop and implement a process for accurately estimating the number of eligible students in a State or Indian tribe for purposes of subsection
(a)and (b). For the first year for which grants are awarded under this subpart, the number of eligible students in a State or Indian tribe shall be considered to be equal to the number of eligible students that were in the State or tribe for the 2020–2021 school year. Not later than 180 days after the date on which a State or Indian tribe receives a grant under this subpart, the Secretary shall— in consultation with the State or tribe concerned, determine whether the actual number of eligible students 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 eligible students 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 subpart for the year covered by the grant accurately reflects the higher number of eligible students. In order to receive a grant under this subpart, 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. Each application under subsection
(a)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; 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 accordance with section 499D(a); 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 low-income, first-generation, adult, and other underrepresented students; the provision of direct support services such as— childcare, transportation, emergency financial assistance, and mental health and substance use disorder treatment; assistance in obtaining health insurance coverage; assistance securing affordable housing; efforts to address food insecurity and campus hunger; and efforts to facilitate student participation in means-tested Federal benefit programs (as defined in section 479(d)); providing accelerated learning opportunities, such as dual or concurrent enrollment programs, including early college high school programs; strengthening remedial education, especially for low-income, first-generation, adult and other underrepresented students; 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 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; an assurance that the State or Indian tribe will, to the extent practicable, assist eligible students in obtaining information about and accessing means-tested Federal benefit programs (as defined in section 479(d)) for which such students may be eligible; 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 subpart; and if the application is submitted by a State— an assurance that the State will, to the extent practicable, consider changes to State law that will enable more community college students to be eligible for means-tested Federal benefit programs (as defined in section 479(d)); an assurance that the State will meet the requirements of section 499D(b)(1) relating to the alignment of secondary and postsecondary education; and an assurance that the State will meet the requirements of section 499D(b)(2) relating to the improvement of transfer pathways between institutions of higher education. As a condition of receiving a grant under this subpart a State or Indian tribe shall meet the following requirements: For each year of the grant the total amount of community college resident tuition and fees charged to an eligible student in the State or Indian tribe shall be $0. For each year of the grant no amount of financial assistance for which an eligible student qualifies may be applied to such tuition or fees. As a condition of receiving a grant under this subpart a State shall meet the following requirements: The State shall— submit a plan to align the requirements for receiving a regular high school diploma from a public high school with the requirements for entering credit-bearing coursework at a participating community college; and not later than three years after the date on which the State first receives a grant under this subpart, certify to the Secretary that such alignment has been achieved. If a State does not provide the certification required under subparagraph
(A)by the date specified in such subparagraph, the State shall submit to the Secretary, at such time and in such manner as the Secretary may require— a written explanation for the delay in making the certification; and a plan that will enable the State to make the certification by not later than 5 years after the date on which the State first received a grant under this subpart. Not later than 3 years after the date on which a State first receives a grant under this subpart, such State shall certify to the Secretary that each public institution of higher education participating in any program under this title has entered into an articulation agreement (as defined in section 486A(a)) held in common with the other public institutions of higher education located in such State that are participating in any such program. Such articulation agreement shall, at a minimum, include— a common general education core curriculum consisting of not less than 30 credit hours or the equivalent coursework, which are fully transferrable to any such public institution of higher education in the State toward meeting specific degree or certificate requirements; common course numbering for substantially similar courses in such common general education core curriculum; and a guarantee that an associate degree in an academic major in the arts or sciences that is awarded by such a public institution of higher education in the State on or after the date that is not later than 3 years after the date on which the State first receives a grant under this subpart shall be fully transferrable to, and credited as, the first 2 years of a related baccalaureate program at a public institution of higher education in such State. If a State does not provide the certification required under subparagraph
(A)by the date specified in such subparagraph, the State shall submit to the Secretary, at such time and in such manner as the Secretary may require— a written explanation for the delay in making the certification; and a plan that will enable the State to make the certification by not later than 5 years after the date on which the State first received a grant under this subpart. The Secretary may not apply the requirements under this subsection to an Indian tribe. Except as provided in subsection (b), a State or Indian tribe shall use a grant under this subpart only to provide funds to participating community colleges to enable such community colleges to waive resident tuition and fees for eligible students as required under section 499D(a). If a State or Indian tribe demonstrates to the Secretary that it has grant funds remaining after meeting the demand for activities described in subsection (a), the State or Indian tribe may use those funds to carry out one or more of the following: 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, including early college high school programs. Improving affordability at 4-year public institutions of higher education. A State or Indian tribe that receives a grant under this subpart may not use any funds provided under this subpart for administrative purposes relating to the grant under this subpart. A State or Indian tribe receiving a grant under this subpart is entitled to receive its full allotment of funds under this subpart 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 three consecutive preceding fiscal years. In making the calculation under this subsection, 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; and financial support for operational expenses for public, four-year colleges and universities at a level equal to or exceeding the average amount provided for the three consecutive proceeding State or Indian tribe fiscal years. A State or Indian tribe receiving a grant under this subpart shall submit an annual report to the Secretary describing the uses of grant funds under this subpart, the progress made in fulfilling the requirements of the grant, and rates of graduation, transfer and attainment of recognized postsecondary credentials 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 subsection (e); 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 paragraph
(1)and an identification of State and Indian tribe best practices for achieving the purpose of this subpart. 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 subpart for a fiscal year may continue to receive funding under this subpart 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 subpart 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 section 499C. In this subpart: 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 Tribal Colleges and Universities under section 316 and public 2-year State institutions of higher education. The term dual or concurrent enrollment program has the meaning given the term in section 8101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 ). The term early college high school has the meaning given the term in section 8101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 ). The term eligible student means a student who— attends the community college on not less than a half-time basis; 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 community college tuition, as determined by the State or Indian tribe; or would qualify for such in-State resident community college tuition, but for the immigration status of such student. An otherwise eligible student shall lose eligibility 3 calendar years after first receiving benefits under this subpart. 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. 5130 ). The term institution of higher education has the meaning given the term in section 101. 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. For the purpose of making grants under this subpart there are authorized to be appropriated, and there are appropriated— $1,569,700,000 for fiscal year 2020; $3,472,880,000 for fiscal year 2021; $4,431,950,000 for fiscal year 2022; $6,204,030,000 for fiscal year 2023; $8,119,870,000 for fiscal year 2024; $9,297,430,000 for fiscal year 2025; $11,708,890,000 for fiscal year 2026; $14,971,330,000 for fiscal year 2027; $15,619,910,000 for fiscal year 2028; and $16,296,080,000 for fiscal year 2029 and each succeeding fiscal year. Funds appropriated under subsection
(a)shall remain available to the Secretary until expended. If the amount appropriated under subsection
(a)for a fiscal year is not sufficient to award each participating State and Indian tribe a grant under this subpart that is equal to the minimum amount of the Federal share described in section 499A, 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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