Sec. 212. Campus-based aid programs
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Notwithstanding subparts 3 and 4 of part A, or part C, of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070 et seq. ), or any other provision of law, except as expressly authorized by an Act of Congress enacted after the date of enactment of this Act, beginning on October 1, 2026, no funds are authorized to be appropriated, or may be expended, under this Act or any other Act to make payments to States for the Leveraging Educational Assistance Partnership Program under subpart 4 of part A of title IV ( 20 U.S.C. 1070c et seq. ), and the authority of the Secretary to carry out such program shall be terminated.
Subpart 4 of part A of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070c et seq. ) is amended to read as follows: It is the purpose of this subpart to provide performance-based grants to— assist institutions in providing certainty to students and families about postsecondary affordability; increase postsecondary access and economic mobility; and ensure that students, institutions, and taxpayers receive a financial return for investments in postsecondary education.
For award year 2026–2027 and each succeeding award year, from reserved funds remitted to the Secretary in accordance with section 454(d) and additional funds authorized under section 415E, as necessary, the Secretary shall award PROMISE grants to eligible institutions to carry out the purpose of this subpart. PROMISE grants awarded under this subpart shall be performance-based and shall be awarded to each eligible institution for a 6-year period in an amount that is determined in accordance with section 415D.
To be eligible for a PROMISE grant under this subpart, an institution shall— be an institution of higher education under section 102, except that an institution described in section 102(a)(1)(C) shall not be an eligible institution under this subpart; and meet the maximum total price guarantee requirements under subsection (c). An eligible institution seeking a PROMISE grant under this subpart (including a renewal of such a grant) shall submit to the Secretary an application, at such time as the Secretary may require, that contains the information required in this subsection.
Such application shall— demonstrate that the institution— meets the maximum total price guarantee requirements under subsection (c); and will continue to meet the maximum total price guarantee requirements for each award year during the grant period with respect to students first enrolling at the institution for each such award year; describe how grant funds awarded under this subpart will be used by the institution to carry out the purposes of this Act, including activities related to— postsecondary affordability, including— the expansion and continuation of the maximum total price guarantee requirements under subsection (c); and any other activities to be carried out by the institution to increase postsecondary affordability and minimize the total net price required for completion (as defined in section 132(a)) paid by students receiving need-based student aid; postsecondary access, which may include— the activities described in section 485E of this Act; and any other activities to be carried out by the institution to increase postsecondary access and expand opportunities for low- and middle-income students; and postsecondary student success, which may include— activities to improve completion rates and reduce time to credential, including the activities described in section 741 of this Act, as amended by the College Cost Reduction Act; activities to align programs of study with the needs of employers, including with respect to in-demand industry sectors or occupations (as defined in section 3 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3102 )); and any other activities to be carried out by the institution to increase value-added earnings and postsecondary student success; describe— how the institution will evaluate the effectiveness of the institution’s use of grant funds awarded under this subpart; and how the institution will collect and disseminate information on promising practices developed with the use of such grant funds; and in the case of an institution that has previously received a grant under this subpart, contain the evaluation required under paragraph
(3)for each previous grant. As a condition of eligibility for a PROMISE grant under this subpart, an institution shall— for each award year beginning after the date of enactment of the College Cost Reduction Act, not later than one year before the start of each such award year (except that, for the first award year beginning after such date of enactment, the institution shall meet these requirements as soon as practicable such date of enactment)— determine the maximum total price for completion, in accordance with subsection (e), for each program of study at the institution— applicable to students in each income category described in section 132(c)(2)(A)(i); and applicable to students in each student aid index category determined by the Secretary in accordance with section 132(c)(2)(A)(ii); and publish such information on the institution’s website and in the institution’s catalog, marketing materials, or other official publications; for the award year for which the institution is applying for a PROMISE grant, and at least one award year preceding such award year, provide to each student who first enrolls, or plans to enroll, in the institution during the award year and who receives Federal financial aid under this title a maximum total price guarantee, in accordance with this section, for the minimum guarantee period applicable to the student; and provide to the Secretary an assurance that the institution will continue to meet each of the maximum total price guarantee requirements under this subsection for students who first enroll, or plan to enroll, in the institution during each award year included in the grant period. The minimum period during which a student shall be provided a guarantee under subsection
(c)with respect to the maximum total price for completion of a program of study at an institution shall be the median time to credential of students who completed any undergraduate program of study at the institution during the most recent award year for which data are available, except that such minimum guarantee period shall not be less than the program length of the program of study in which the student is enrolled. An institution shall not be required to provide a maximum total price guarantee under subsection
(c)to a student after the conclusion of the 6-year period beginning on the first day on which the student enrolled at such institution. For the purposes of subsection (c), an institution shall determine, prior to the first award year in which a student enrolls at the institution, the maximum total price that may be charged to the student for completion of a program of study at the institution for the minimum guarantee period applicable to a student, before application of any Federal Pell Grants or other Federal financial aid under this title. Such a maximum total price for completion shall be determined for students in each income category and student aid index category (as determined in accordance with section 132(c)(2)(A)). In determining the maximum total price for completion to be charged to each such category of students, the institution may consider the ability of a category of students to pay tuition and fees (including the required costs described in section 124(b)(3)(A)(i)(I)), but may not include in such consideration any Federal Pell Grants or other Federal financial aid awards that may be available to such category of students under this title. In the event that a student receives more than one maximum total price guarantee because the student is included in more than one category of students for which the institution determines a maximum total price guarantee amount for the purposes of subsection (c), the maximum total price guarantee applicable to such student for the purposes of this section shall be equal to the lowest such guarantee amount. Subject to subsection (b), the amount of a PROMISE grant for an eligible institution for each year of the grant period shall be determined by the Secretary annually and shall be equal to— the amount determined by multiplying— the lesser of— the difference determined by subtracting one from the quotient of— the average, for the 3 most recent award years for which data are available, of the median value-added earnings (as defined in section 103) for each such award year of students who completed any program of study of the institution; divided by the average for the 3 most recent award years, of the maximum total price applicable for each such award year to students enrolled in the institution in any program of study who received financial aid under this title; or the number two; the average, for the 3 most recent award years, of the total dollar amount of Federal Pell Grants awarded to students enrolled in the institution in each such award year; and the average, for the 3 most recent award years, of the percentage of low-income students who received Federal financial assistance under this title who were enrolled in the institution in each such award year who— completed a program of study at the institution within 100 percent of the program length of such program; or only in the case of a two-year institution or a less than two-year institution— transfer to a four-year institution; and within 4 years after first enrolling at the two-year or less than two-year institution, complete a program of study at the four-year institution for which a bachelor’s degree (or substantially similar credential) is awarded; minus the sum of— the amount allocated to the institution under part C of title IV for the most recent fiscal year; and the amount allocated to the institution under subpart 3 of part A of title IV for the most recent fiscal year. In this section, the term low-income , when used with respect to a student, means that the student’s family income does not exceed the maximum income in the lowest income category described in section 132(c)(2)(A)(i). Notwithstanding subsection (a), the maximum amount an eligible institution may receive annually for a grant under this subpart shall be the amount equal to— the average, for the 3 most recent award years, of the number of students enrolled in the institution in an award year who receive Federal financial aid under this title; multiplied by $5,000. A PROMISE grant awarded under this subpart shall be used by an eligible institution to carry out the purposes of this subpart, including— carrying out activities included in the institution’s application for such grant related to postsecondary affordability, access, and student success; and evaluating the effectiveness of the activities carried out with such grant in accordance with section 415C(b)(3)(A); and collecting and disseminating promising practices related to the activities carried out with such grant, in accordance with section 415C(b)(3)(B). In order to offer an arrangement of types of aid which best fit the needs of each individual student, an institution may transfer up to 100 percent of the institution’s allotment under subpart 3 of this part or part C of this title (or both) to the institution’s allotment under this section. Funds transferred to an institution's allotment under this section may be used as a part of and for the same purposes as funds allotted under this subpart. The Secretary shall have no control over such transfer, except as specifically authorized, except for the collection and dissemination of information. To carry out this subpart, there shall be available to the Secretary any funds remitted to the Secretary as reimbursements in accordance with section 454(d) for any award year; and Beginning award year 2026–2027, if the amounts made available to the Secretary under paragraph
(1)to carry out this subpart in any award year are insufficient to fully fund the PROMISE grants awarded under this subpart in such award year, there shall be available to the Secretary, in addition to such amounts, any funds returned to the Secretary under section 484B in the previous award year. If the amounts made available to the Secretary under subsection
(a)to carry out this subpart for are not sufficient to provide grants to all eligible institutions in the amount determined under this subpart for an award year, the Secretary shall first provide grants to the eligible institutions that have the highest percentage of students who are low-income students (as defined in section 415D). . Section 484B of the Higher Education Act of 1965 ( 20 U.S.C. 1091b ) is amended by adding at the end the following: Notwithstanding any other provision of law, the Secretary shall reserve the funds returned to the Secretary under this section for 1 year after the return of such funds for the purpose of awarding PROMISE grants in accordance with subpart 4 of part A of this title. .
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