Sec. 101. 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 amount of the Federal share of a grant under this subpart shall be based on a formula, determined by the Secretary, that provides, for each eligible student in the State or Indian tribe, a per-student amount that is equal to 75 percent of— for the 2022–2023 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 paragraph 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.

The amount of the Federal share for an Indian tribe receiving a grant under this subpart shall be the lesser of— the amount determined in accordance with paragraph

(1)with respect to such tribe; or the amount that is 95 percent of the total amount needed to waive tuition and fees for all eligible students enrolled in the community colleges operated or controlled by such tribe. Subject to subparagraph (B), 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 resident community college tuition and fees per student in the 2022–2023 award year for all eligible students in the State or tribe for such fiscal year. The tribal share of a grant awarded to an Indian tribe under this subpart for each fiscal year shall be the lesser of— the amount determined in accordance with subparagraph

(A)with respect to such tribe; or 5 percent of the total amount needed to waive tuition and fees for all eligible students enrolled in the community colleges operated or controlled by such tribe. 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). For purposes of subsection

(a)and subsection (b), the Secretary shall develop and implement a formula for accurately estimating the number of eligible students in a State or Indian tribe and for making adjustments based on the number of eligible students enrolled on less than a full-time basis and the associated tuition and fees charged to such students in proportion to the degree to which each such student is not attending on a full-time basis. 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 who 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 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 in the case of a determination 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 Indian 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— an estimate of the number of eligible students in the State or Indian tribe and the cost of waiving community college tuition and fees for all eligible students for each fiscal year covered by the grant; an assurance that each community college in the State, or operated or controlled by the Indian tribe, as applicable, will waive 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 transfer and completion rates, that have been or will be adopted by each such community college, such as— providing comprehensive academic, career, and student support services (including mentoring, advising, case management services, and career pathway navigation), especially for low-income, first-generation, and adult students, and other students belonging to racial and other groups that are historically underrepresented in higher education; providing direct support services, or assistance in applying for such services, such as— childcare, transportation, and emergency financial assistance; assistance in obtaining health insurance coverage and accessing health care services, including behavioral and mental health services; affordable housing; nutrition assistance programs or free or discounted food; and means-tested Federal benefit programs, or similar State, tribal, or local benefit programs; providing accelerated learning opportunities, such as dual or concurrent enrollment programs, including early college high school programs, and reforming course scheduling and credit awarding policies to better meet the needs of students and shorten time to completion; strengthening and reforming remedial and developmental education, especially for low-income, first-generation, and adult students, and other students belonging to racial and other groups that are historically underrepresented in higher education, including through the use of multiple measures (such as a student’s college entrance examination score, grade point average, high school course list, or a placement examination) to identify students in need of remedial education; utilizing career pathways, including through building capacity for career and technical education, as defined in section 3(5) of the Carl D. Perkins Career and Technical Education Act of 2006 ( 20 U.S.C. 2302(5) ), and programs of study, as defined in section 3(41) of such Act ( 20 U.S.C. 2302(41) ), or degree pathways; or providing expanded opportunities for participating in work-based learning, which may include apprenticeship programs, in students’ programs of study; 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 each community college 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 maximum extent practicable, assist eligible students in obtaining information about and accessing means-tested Federal benefit programs and similar, State, tribal, and local benefit programs 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; if the application is submitted by a State— a description of how the State will support the scaling and increased adoption of the reforms and practices described in paragraph (3); 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 and similar State benefit programs; 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; and an assurance that the State or Indian tribe will clearly communicate to prospective students, their families, and the general public— plans to implement the program funded under this subpart; and how eligible students can attend a community college operated by the State or tribe without paying the cost of tuition and fees. 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 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 public schools in the State with the requirements for entering credit-bearing coursework at community colleges in such State; and not later than 3 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

(i)and is meeting the requirements of subclauses

(I)and

(II)of such clause. 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. A State or Indian tribe that receives a grant under this subpart may not impose additional eligibility requirements on eligible students other than the requirements under this subpart. Except as provided in subsection (b), a State or Indian tribe shall use a grant under this subpart only to provide funds to each community college in the State, or operated or controlled by such tribe, as applicable, to enable each such community college to waive tuition and fees for eligible students as required under section 499D(a). If a State or Indian tribe demonstrates to the Secretary that the State or Indian tribe 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 1 or more of the following: Enhancing the quality and equity of public higher education to improve student outcomes, including transfer and completion rates and labor market outcomes. Investing in and diversifying the academic workforce. Expanding the scope and capacity of high-quality academic and occupational skills training programs at community colleges, which may include collaboration with one or more industry or sector partnerships (as defined in section 3 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3201 )). Improving postsecondary education readiness in the State or Indian tribe, including through outreach and early intervention. Expanding access to dual or concurrent enrollment programs, such as early college high school programs. Reducing unmet need at public 4-year 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 such grant. A State or Indian tribe receiving a grant under this subpart shall be 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— State fiscal support for higher education per FTE student at a level equal to or exceeding the average amount of State fiscal support for higher education per FTE student provided for the 3 consecutive preceding fiscal years; financial support for operational expenses (excluding capital expenses and research and development costs) for public 4-year institutions of higher education at a level equal to or exceeding the average amount provided for the 3 consecutive preceding State or Indian tribe fiscal years; and financial support for need-based financial aid at a level equal to or exceeding the average amount provided for the 3 consecutive preceding State or Indian tribe fiscal years. Funds made available under this subpart shall be used to supplement, and not supplant, other Federal, State, tribal, and local funds that would otherwise be expended to carry out activities described in this section. A State or Indian tribe receiving a grant under this subpart shall submit to the Secretary an annual report that shall include— the uses of grant funds under this subpart; the progress made in fulfilling the requirements of the grant; the rates of transfer, graduation, and attainment of recognized postsecondary credentials at participating community colleges, disaggregated by race, income, and age; and any other information that the Secretary may require. The Secretary shall, on an annual basis— compile and analyze the information described in paragraph (1); and prepare and submit to the authorizing committees a report containing— the analysis described in subparagraph (A); 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. Except as provided in paragraph (2), 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. Notwithstanding subsection

(d)of section 499E, a State that meets the qualifying spending requirements may request a waiver of the requirements under such subsection (d). The Secretary shall waive the requirements of such subsection

(d)for a State that makes a qualifying request under this subsection as follows: With respect to each State eligible for relief under tier I, such requirements shall be waived for the fiscal year succeeding the fiscal year in which the determination of the State’s eligibility for such relief is made. With respect to each State eligible for relief under tier II, III, IV, or V, such requirements shall be waived, in accordance with subsection (d), for— the fiscal year in which the determination of the State’s eligibility for such relief is made; the fiscal year succeeding the fiscal year described in subparagraph (A); or both such fiscal years. Notwithstanding subsection

(b)of section 499B, a State that is eligible for relief under tier II, III, IV, or V may request relief with respect to the requirements of such subsection (b). The Secretary shall provide relief from the requirements of such subsection (b), for the applicable fiscal year or years, for a State that makes a qualifying request under this paragraph as follows: With respect to a State that is eligible for relief under tier II, the Secretary shall— apply section 499B(a)(1) by substituting 80 percent for 75 percent ; and apply section 499B(b)(1)(A) by substituting 20 percent for 25 percent . With respect to a State that is eligible for relief under tier III, the Secretary shall— apply section 499B(a)(1) by substituting 85 percent for 75 percent ; and apply section 499B(b)(1)(A) by substituting 15 percent for 25 percent . With respect to a State that is eligible for relief under tier IV, the Secretary shall— apply section 499B(a)(1) by substituting 90 percent for 75 percent ; and apply section 499B(b)(1)(A) by substituting 10 percent for 25 percent . With respect to a State that is eligible for relief under tier V, the Secretary shall— apply section 499B(a)(1) by substituting 95 percent for 75 percent ; and apply section 499B(b)(1)(A), by substituting 5 percent for 25 percent . With respect to each State eligible for relief under tier II, III, IV, or V, the Secretary shall provide the relief under paragraph (1), in accordance with subsection (d), for— the fiscal year in which the determination of the State’s eligibility for such relief is made; the fiscal year succeeding the fiscal year described in subparagraph (A); or both such fiscal years. A State’s eligibility for relief under this section shall be determined as follows: A State shall be eligible for relief under tier I for a fiscal year in which— the State was in an elevated unemployment period at any point in the fiscal year; or the Nation as a whole was in an elevated unemployment period at any point in the fiscal year; and the State is not eligible for relief under any other tier. A State shall be eligible for relief under tier II for a fiscal year in which— the State average unemployment rate was equal to or greater than 6.5 percent but less than 7.5 percent at any point in the fiscal year; or the national average unemployment rate is equal to or greater than 6.5 percent but less than 7.5 percent at any point in the fiscal year; and the State is not eligible for relief under tier III, IV, or V. A State shall be eligible for relief under tier III for a fiscal year in which— the State average unemployment rate was equal to or greater than 7.5 percent but less than 8.5 percent at any point in the fiscal year; or the national average unemployment rate is equal to or greater than 7.5 percent but less than 8.5 percent at any point in the fiscal year; and the State is not eligible for relief under tier IV or V. A State shall be eligible for relief under tier IV for a fiscal year in which— the State average unemployment rate was equal to or greater than 8.5 percent but less than 9.5 percent at any point in the fiscal year; or the national average unemployment rate is equal to or greater than 8.5 percent but less than 9.5 percent at any point in the fiscal year; and the State is not eligible for relief under tier V. A State shall be eligible for relief under tier V for a fiscal year in which— the State average unemployment rate was equal to or greater than 9.5 percent at any point in the fiscal year; or the national average unemployment rate is equal to or greater than 9.5 percent at any point in the fiscal year. In determining the fiscal years for which to provide relief in accordance with subsections (a)(2) and

(b)to a State that is eligible under tier II, III, IV, or V, the Secretary shall take into account the following: In the case of a State that requests relief under subsection (a)(2), the fiscal years for which the State requests such relief, including— if the State requests such relief for the fiscal year for which the determination of the State’s eligibility for such relief is made, the amount by which the State is unable to meet the requirements of section 499E(d) for such fiscal year; and if the State requests such relief for the fiscal year succeeding the year described in subparagraph (A), the amount by which the State anticipates being unable to meet such requirements for such succeeding fiscal year. In the case of a State that requests relief under subsection (b), the fiscal years for which the State requests such relief, including— if the State requests such relief for the fiscal year for which the determination of the State’s eligibility for such relief is made, the extent to which the State is unable to meet the requirements of section 499B(b) for such fiscal year; and if the State requests such relief for the fiscal year succeeding the year described in subparagraph (A), the extent to which the State anticipates being unable to meet such requirements for such succeeding fiscal year. The actual or anticipated timing, severity, and duration of the unemployment rate increase during— the fiscal year for which the determination of the State’s eligibility for such relief is made; the fiscal year succeeding the fiscal year described in subparagraph (A); and the fiscal year preceding the fiscal year described in subparagraph (A). Other factors determined to be relevant by the Secretary. For purposes of determining the eligibility of an Indian tribe to receive relief under this section— an Indian tribe that operates or controls a community college in a State that is eligible for relief under any tier shall be treated as a State for purposes of receiving relief under such tier, except as otherwise provided in paragraph (2); and in the case of an Indian tribe that operates or controls a community college in at least 2 different States each of which is eligible for relief under different tiers, the Indian tribe shall receive relief under the tier offering the greatest level of relief. Notwithstanding subsection

(b)of section 499B, an Indian tribe that is eligible for relief under tier II, III, IV, or V may request relief with respect to the requirements of such subsection (b). The Secretary shall provide relief from the requirements of section 499B(b), for the applicable fiscal year or years, for an Indian tribe that makes a qualifying request under this paragraph, by— with respect to applying section 499B(a)(1), providing the appropriate relief described in subsection (b)(1) of this section; applying section 499B(a)(2)(B) by substituting 100 percent for 95 percent ; and applying section 499B(b)(1)(B)(ii), by substituting 0 percent for 5 percent . In this section: The term elevated unemployment period — when used with respect to the Nation as a whole, means a consecutive, 3-month period in a fiscal year in which the national average unemployment rate is not less than 0.5 percentage points above the lowest national average unemployment rate for the 12-month period preceding such 3-month period; and when used with respect to a State, means a consecutive, 3-month period in a fiscal year in which the State average unemployment rate is not less than 0.5 percentage points above the lowest State average unemployment rate for the 12-month period preceding such 3-month period. The term qualifying spending requirements means the requirements that a State not disproportionately decrease spending for any of the categories described in subparagraphs

(A)through

(C)of section 499E(d)(1) relative to such State’s overall, average decrease in spending for the 3 consecutive preceding fiscal years. The term national average unemployment rate means the average (seasonally adjusted) rate of total unemployment in all States for a consecutive, 3-month period in a fiscal year, based on data from the Bureau of Labor Statistics of the Department of Labor. The term State average unemployment rate means the average (seasonally adjusted) rate of total unemployment in a State for a consecutive, 3-month period in a fiscal year, based on data from the Bureau of Labor Statistics of the Department of Labor. There are authorized to be appropriated, and there are appropriated to carry out this subpart (in addition to any other amounts appropriated to carry out this subpart and out of any money in the Treasury not otherwise appropriated), such sums as may be necessary for fiscal year 2022 and each succeeding fiscal year. In this subpart: The term apprenticeship means an apprenticeship program registered under the Act of August 16, 1937 (commonly known as the National Apprenticeship Act ; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.). 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 or Universities under section 316 and public 2-year institutions of higher education operated by a State. 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. The term early college high school has the meaning given the term in section 8101 of the Elementary and Secondary Education Act of 1965. The term eligible student means a student who— is enrolled in an eligible program (as defined in section 481(b)) at a community college on not less than a half-time basis; 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; and has not been enrolled (whether full-time or less than full-time) for more than 6 semesters (or the equivalent) for which the student received a waiver of community college tuition and fees under section 499D(a). 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 means-tested Federal benefit program has the meaning given the term in section 479. 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 ). Except as provided in subparagraph (B), the term State fiscal support for higher education , used with respect to a State for a fiscal year, means an amount that is equal to the gross amount of applicable State funds appropriated or dedicated, and expended by the State, including funds from lottery receipts, in the fiscal year, that are used to support institutions of higher education and student financial aid for higher education in the State. State fiscal support for higher education for a State for a fiscal year shall not include— funds described in subparagraph

(A)that are returned to the State; State-appropriated funds derived from Federal sources, including funds provided under section 499B(b) and section 499J(b); amounts that are portions of multiyear appropriations to be distributed over multiple years that are not to be spent for the year for which the calculation under this paragraph is being made, subject to subparagraph (D); tuition, fees, or other educational charges paid directly by a student to a public institution of higher education or to the State; funds for— financial aid programs provided to out-of-State institutions of higher education, including aid to students enrolled in such institutions; merit-based financial aid to students awarded on the basis of predicted or actual academic performance; financial aid for students attending, or annual operating expenses of, proprietary institutions of higher education (as defined in section 102(b)); financial aid for students attending, or annual operating expenses of, unaccredited institutions; research and development; hospitals, athletics, or other auxiliary enterprises; or corporate or other private donations directed to 1 or more institutions of higher education permitted to be expended by the State; or any other funds that the Secretary determines shall not be included in the calculation of State fiscal support for higher education for such State. The Secretary shall take into consideration any adjustments to the calculations under this paragraph that may be required to accurately reflect State fiscal support for higher education in States with biennial appropriation cycles. In determining the State fiscal support for higher education of an Indian tribe for a fiscal year, the Indian tribe shall be treated as a State except as otherwise determined appropriate by the Secretary. The term State fiscal support for higher education per FTE student , used with respect to a State or Indian tribe for a fiscal year, means, the quotient of— the State fiscal support for higher education for the previous fiscal year; divided by the number of full-time equivalent students enrolled in public institutions of higher education in such State or tribe for such previous fiscal year. .

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