Sec. 4. State responsibility
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Section 401 of the Higher Education Act of 1965 ( 20 U.S.C. 1070a ) is amended by adding at the end the following: Each State that receives funds under this Act shall maintain expenditures and State financial aid for institutions of higher education in the State, with respect to a fiscal year, at an amount that is equal to or more than the average amount of State expenditures and State financial aid for institutions of higher education in the State for the 10 fiscal years preceding such fiscal year.
Notwithstanding any other provision of law and beginning 5 years after the date of enactment of the Degrees Not Debt Act of 2019 , the Secretary shall not make a payment under this subpart to an institution of higher education for a fiscal year for the purpose of making a Federal Pell Grant to eligible students in attendance at such institution and any such student shall not be eligible to receive a Federal Pell Grant for attendance at such institution for the fiscal year, if the institution— is an institution of higher education, as defined in section 102; and is located in a State that has not maintained expenditures and State financial aid for institutions of higher education in the State, with respect to the fiscal year, at an amount that is equal to or more than the average amount of State expenditures and State financial aid for institutions of higher education in the State for the 5 fiscal years preceding such fiscal year.
The Secretary may waive the requirement of paragraph
(1)for a State, for one fiscal year at a time, and the provisions of paragraph
(2)shall have no effect for such fiscal year if the Secretary determines that granting a waiver would be equitable due to exceptional or uncontrollable circumstances such as a natural disaster or a precipitous and unforeseen decline in the financial resources of the State. .
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Sec. 4
State responsibility
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