S.Amdt. 5298

1. Adds TITLE __--EDUCATION AND LABOR wherever appropriate

   Adds a title

   Inserted: TITLE __--EDUCATION AND LABOR

   Inserted: SEC. ___. GRANTS FOR TUITION-FREE COMMUNITY COLLEGE.

   Inserted: Title VII of the Higher Education Act of 1965 (20 U.S.C. 1133 et seq.) is amended by adding at the end the following:

   Inserted: "PART F--AMERICA'S COLLEGE PROMISE

   Inserted: "SEC. 785. GRANT AWARDS.

   Inserted: "(a) In General.--Beginning with award year 2023-2024, from amounts appropriated to carry out this part under section 793 for any fiscal year, the Secretary shall award grants to States and eligible Tribal Colleges and Universities to pay the Federal share of expenditures needed to carry out the activities and services described in section 789.

   Inserted: "(b) Timing of Grant Awards.--The Secretary shall award grant funds under subsection (a) for an award year not less than 30 days before the first day of the award year.

   Inserted: "SEC. 786. FEDERAL SHARE; STATE SHARE.

   Inserted: "(a) Federal Share.--

   Inserted: "(1) In general.--

   Inserted: "(A) Amount.--Subject to paragraph (2), the amount of the Federal share of a grant under section 785 shall be based on a formula that provides, for each eligible student enrolled in a community college operated or controlled by the State or in an eligible Tribal College or University, a per-student amount (based on full-time equivalent enrollment) that is equal to the applicable percent described in subparagraph (B), or the percent described in paragraph (2) with respect to an eligible Tribal College or University, of--

   Inserted: "(i) for the 2023-2024 award year, the median resident community college tuition and fees per student in all States, not weighted for enrollment, for the most recent award year for which data are available; and

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   Inserted: "(ii) for each subsequent award year, the amount determined under this paragraph for the preceding award year, increased by the lesser of--

   Inserted: "(I) 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

   Inserted: "(II) 3 percent.

   Inserted: "(B) Applicable percent.--The applicable percent for a State receiving a grant under section 785 shall be--

   Inserted: "(i) for the 2023-2024 award year, 100 percent;

   Inserted: "(ii) for the 2024-2025 award year, 95 percent;

   Inserted: "(iii) for the 2025-2026 award year, 90 percent;

   Inserted: "(iv) for the 2026-2027 award year, 85 percent; and

   Inserted: "(v) for the 2027-2028 award year, 80 percent.

   Inserted: "(2) Tribal colleges and universities.--The amount of the Federal share for an eligible Tribal College or University receiving a grant under section 785 shall be the greater of--

   Inserted: "(A) 100 percent of the per-student amount determined in accordance with clause (i) or (ii) of paragraph (1)(A), as applicable, with respect to eligible students enrolled in such eligible Tribal College or University (based on full-time equivalent enrollment); or

   Inserted: "(B) the amount that is 100 percent of the total amount needed to set tuition and fees to $0 for all eligible students enrolled in such eligible Tribal College or University for the 2022-2023 award year, increased by the percentage increase in the Consumer Price Index (as determined by the Secretary) between July 1, 2022, and the applicable award year, and adjusted to reflect the enrollment in such eligible Tribal College or University for such applicable award year.

   Inserted: "(b) State Share.--

   Inserted: "(1) Formula.--

   Inserted: "(A) In general.--The State share of a grant under section 785 for each award year shall be the amount needed to pay the applicable percent described in subparagraph (B) of the median resident community college tuition and fees in all States, not weighted for enrollment, per student (based on full-time equivalent enrollment) determined in accordance with subsection (a)(1)(A)(i) for all eligible students enrolled in a community college operated or controlled by the State for such award year.

   Inserted: "(B) Applicable percent.--The applicable percent shall be--

   Inserted: "(i) for the 2023-2024 award year, 0 percent;

   Inserted: "(ii) for the 2024-2025 award year, 5 percent;

   Inserted: "(iii) for the 2025-2026 award year, 10 percent;

   Inserted: "(iv) for the 2026-2027 award year, 15 percent; and

   Inserted: "(v) for the 2027-2028 award year, 20 percent.

   Inserted: "(C) Obligation to provide share.--The State shall provide the State share even if the State is able to set tuition and fees charged to eligible students attending community colleges operated or controlled by the State to $0 as required by section 788(a) without such State share.

   Inserted: "(D) No double counting funds.--Except with respect to funding described in paragraph (2)(A), no funds that count toward the maintenance of effort requirement under section 788(c) may also count toward the State share under this subsection.

   Inserted: "(E) Special rule for outlying areas and territories.--

   Inserted: "(i) In general.--If the Secretary determines that requiring an outlying area or territory to provide a State share in accordance with this subsection would represent a substantial hardship for the outlying area or territory, the Secretary may reduce or waive the State share for such area or territory. If the Secretary so reduces or waives the amount of the State share of an outlying area or territory, the Secretary shall increase the applicable percent used to calculate the Federal share for such area or territory, in proportion to the reduction in the applicable percent used to calculate such State share.

   Inserted: "(ii) Definition.--For the purposes of this subparagraph, the term 'outlying area or territory' means the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, and the Freely Associated States.

   Inserted: "(2) Inclusion of state financial aid and local funds.--In the case of a State that demonstrates to the satisfaction of the Secretary that community colleges operated or controlled by such State will not experience a net reduction in total per-student revenue (including revenue derived from tuition and fees) as compared to the preceding fiscal year in such State, a State may include, as part of the State share--

   Inserted: "(A) any financial aid that is provided from State funds to an eligible student and that--

   Inserted: "(i)(I) is not awarded predominantly on the basis of merit, including programs awarded on the basis of predicted or actual academic performance or assessments; and

   Inserted: "(II) may be used by such student to pay any component of cost of attendance, as defined under section 472; and

   Inserted: "(B) any funds provided to community colleges by local governments in such State for the purpose of carrying out this part.

   Inserted: "(3) Relationship to maintenance of effort.--The inclusion of funds described in paragraph (2) as part of a State's share shall modify the maintenance of effort requirements under section 788(c) in accordance with the provisions of--

   Inserted: "(A) section 791(10)(B)(iii), with respect to funds included under paragraph (2)(A); and

   Inserted: "(B) section 791(10)(A)(ii), with respect to funds included under paragraph (2)(B).

   Inserted: "(4) No in-kind contributions.--A State shall not include in-kind contributions for purposes of the State share described in paragraph (1).

   Inserted: "(c) Determining Number of Eligible Students.--

   Inserted: "(1) In general.--For purposes of subsections (a) and (b), the Secretary shall, in consultation with the State or eligible Tribal College or University concerned, determine the estimated number of eligible students enrolled in the community colleges operated or controlled by such State or in such eligible Tribal College or University for the applicable award year.

   Inserted: "(2) Adjustment of grant amount.--For each year for which a State or eligible Tribal College or University receives a grant under section 785, the Secretary shall, once final enrollment data for such year are available--

   Inserted: "(A) in consultation with the State or eligible Tribal College or University concerned, determine the actual number of eligible students enrolled in the community colleges operated or controlled by such State or in such eligible Tribal College or University for the year covered by the grant; and

   Inserted: "(B) adjust the Federal share of the grant amount received by the State or eligible Tribal College or University and the State share under subsection (b) to reflect the actual number of eligible students, which may include applying the relevant adjustment to such Federal share or the State share, or both, in the subsequent award year.

   Inserted: "(d) Community Colleges Operated or Controlled by State to Include Community Colleges Operated or Controlled by Local Governments Within the State.--For purposes of this part, the term 'community college operated or controlled by a State' shall include a community college operated or controlled by a local government within such State.

   Inserted: "(e) Inapplicability of State Requirements to Eligible TCUs.--The Secretary may not apply any requirements applicable only to States under this part to an eligible Tribal College or University, including the requirements under subsection (b) and subsections (b) and (c) of section 788.

   Inserted: "SEC. 787. APPLICATIONS.

   Inserted: "In order to receive a grant under section 785, a State or eligible Tribal College or University shall submit an application to the Secretary that includes--

   Inserted: "(1) an estimate of the number of eligible students enrolled in the community colleges operated or controlled by the State or in the eligible Tribal College or University and the cost of waiving tuition and fees for all eligible students for each award year covered by the grant;

   Inserted: "(2) in the case of a State, a list of each of the community colleges operated or controlled by the State;

   Inserted: "(3) an assurance that each community college operated or controlled by the State, or the eligible Tribal College or University, as applicable, will set community college tuition and fees for eligible students to $0 as required by section 788(a);

   Inserted: "(4) a description of how the State or eligible Tribal College or University will ensure that programs leading to a recognized postsecondary credential meet the quality criteria established by the State under section 122(b)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152(b)(1)) or other quality criteria determined appropriate by the State or eligible Tribal College or University; and

   Inserted: "(5) an assurance that each community college operated or controlled by the State or the eligible Tribal College or University, as applicable, has entered into a program participation agreement under section 487.

   Inserted: "SEC. 788. PROGRAM REQUIREMENTS.

   Inserted: "(a) General Requirements.--As a condition of receiving a grant under section 785 in each award year, a State or eligible Tribal College or University shall--

   Inserted: "(1) ensure that the total amount of tuition and fees charged to an eligible student attending a community college operated or controlled by the State or the eligible Tribal College or University, as applicable, is $0;

   Inserted: "(2) not apply financial assistance for which an eligible student qualifies to tuition or fees; and

   Inserted: "(3) not use any funds provided under this part for administrative purposes relating to such grant.

   Inserted: "(b) State Requirements.--In addition to the requirements under subsection (a) and as a condition of receiving a grant under section 785, a State shall--

   Inserted: "(1) submit and implement 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

   Inserted: "(2) not later than 3 years after the date on which the State first receives a grant under section 785, certify to the Secretary that such alignment has been achieved.

   Inserted: "(c) State Maintenance of Effort.--A State receiving a grant under section 785 shall be entitled to receive its full allotment of funds under this part for a fiscal year only if, for each year of the grant, the State provides--

   Inserted: "(1) State fiscal support for higher education per full-time equivalent student at a level equal to or exceeding the average amount of State fiscal support for higher education per full-time equivalent student provided for the 3 consecutive preceding fiscal years;

   Inserted: "(2) financial support for operating 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 fiscal years; and

   Inserted: "(3) financial support for need-based financial aid at a level equal to or exceeding the average amount provided for the 3 consecutive preceding State fiscal years.

   Inserted: "(d) No Additional Eligibility Requirements.--A State or eligible Tribal College or University that receives a grant under section 785 may not impose additional eligibility requirements on eligible students other than the requirements under this part.

   Inserted: "SEC. 789. ALLOWABLE USES OF FUNDS.

   Inserted: "(a) In General.--Except as provided in subsection (b)--

   Inserted: "(1) a State shall use a grant under section 785 only to provide funds to each community college operated or controlled by the State to enable each such community college to set community college tuition and fees for eligible students to $0 as required under section 788(a); and

   Inserted: "(2) an eligible Tribal College or University shall use a grant under section 785 only to set community college tuition and fees for eligible students to $0 as required under section 788(a).

   Inserted: "(b) Additional Uses.--If a State or an eligible Tribal College or University demonstrates to the Secretary that the State or eligible Tribal College or University has grant funds remaining after meeting the demand for activities described in subsection (a), the State or eligible Tribal College or University shall use the remaining funds to carry out 1 or more of the following:

   Inserted: "(1) Providing need-based financial aid to students that may be used by such students to pay any component of cost of attendance, as defined under section 472.

   Inserted: "(2) Reducing unmet need at public 4-year institutions of higher education.

   Inserted: "(3) Improving student outcomes by implementing evidence-based institutional reforms or practices.

   Inserted: "(c) Supplement, Not Supplant.--Except as provided in section 786(b)(2)(A), funds made available under this part 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.

   Inserted: "(d) Continuation of Funding.--

   Inserted: "(1) In general.--Except as provided in paragraph (2), a State or an eligible Tribal College or University receiving a grant under section 785 for an award year may continue to receive funding under this part for subsequent award years conditioned on the availability of budget authority and on meeting the requirements of the grant, as determined by the Secretary.

   Inserted: "(2) Discontinuation.--The Secretary shall discontinue or reduce funding of the Federal share of a grant under section 785 or section 790 if the State or an eligible Tribal College or University has violated the terms of the grant.

   Inserted: "(e) Rule of Construction Regarding BIE Funds.--Nothing in this part shall be construed to impact the availability of funds from, or uses of funds provided by, the Bureau of Indian Education for Tribal Colleges and Universities.

   Inserted: "SEC. 790. SUPPLEMENTAL GRANTS.

   Inserted: "(a) In General.--From amounts made available under subsection (f), the Secretary shall award grants, through allotments in accordance with subsection (b), to covered States for the purpose of assisting the covered States in reducing the costs of eliminating community college tuition in accordance with this part.

   Inserted: "(b) Allotments.--For each fiscal year for which amounts are available under subsection (f), each covered State shall receive an allotment based on a formula developed by the Secretary that--

   Inserted: "(1) provides covered States with allotments under this section for each of fiscal years 2023 through 2028; and

   Inserted: "(2) accomplishes the purpose of this section.

   Inserted: "(c) Use of Funds.--A covered State receiving an allotment under this section shall use the allotment to assist in paying the State share of the program under this part, as required under section 786(b).

   Inserted: "(d) State Share Exception.--Notwithstanding section 786 or any other provision of this part--

   Inserted: "(1) the Secretary shall not include amounts from allotments provided under this section in the calculation of the Federal share of a grant under section 785; and

   Inserted: "(2) a State may include amounts provided under this section for a fiscal year for purposes of the State share described in section 786(b).

   Inserted: "(e) Definition of Covered State.--In this section, the term 'covered State' means a State that--

   Inserted: "(1) has received a grant under section 785;

   Inserted: "(2) applies for a supplemental grant under this section, in the manner determined by the Secretary; and

   Inserted: "(3) for the most recent award year for which data are available, had an average community college tuition and fees per in-State or in-district resident student, not weighted for enrollment, that is higher than the median resident community college tuition and fees per student in all States, not weighted for enrollment, for such award year.

   Inserted: "(f) Appropriations.--In addition to amounts otherwise available there is appropriated for fiscal year 2023, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available until September 30, 2030.

   Inserted: "SEC. 791. DEFINITIONS.

   Inserted: "In this part:

   Inserted: "(1) Career pathway.--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).

   Inserted: "(2) Community college.--The term 'community college' means--

   Inserted: "(A) a degree-granting public institution of higher education at which--

   Inserted: "(i) the highest degree awarded is an associate degree; or

   Inserted: "(ii) an associate degree is the predominant degree awarded;

   Inserted: "(B) an eligible Tribal College or University;

   Inserted: "(C) a degree-granting branch campus of a 4-year public institution of higher education, if, at such branch campus--

   Inserted: "(i) the highest degree awarded is an associate degree; or

   Inserted: "(ii) an associate degree is the predominant degree awarded; or

   Inserted: "(D) at the designation of the Secretary, in the case of a State that does not operate or control any institution that meets a definition under subparagraph (A) or (C), a college or similarly defined and structured academic entity--

   Inserted: "(i) that was in existence on July 1, 2022;

   Inserted: "(ii) within a 4-year public institution of higher education; and

   Inserted: "(iii) at which--

   Inserted: "(I) the highest degree awarded is an associate degree; or

   Inserted: "(II) an associate degree is the predominant degree awarded.

   Inserted: "(3) Dual or concurrent enrollment program.--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.

   Inserted: "(4) Early college high school.--The term 'early college high school' has the meaning given the term in section 8101 of the Elementary and Secondary Education Act of 1965.

   Inserted: "(5) Eligible student.--The term 'eligible student' means a student who--

   Inserted: "(A) is enrolled as an undergraduate student in an eligible program (as defined in section 481(b)) at a community college on not less than a half-time basis;

   Inserted: "(B) in the case of a student who is enrolled in a community college that charges different tuition rates on the basis of in-State or in-district residency, either--

   Inserted: "(i) qualifies for in-State or in-district resident tuition at such community college; or

   Inserted: "(ii) would qualify for such in-State or in-district resident tuition at such community college, but for the immigration status of such student;

   Inserted: "(C) has not been enrolled (whether full-time or less than full-time) for more than 6 semesters (or the equivalent) for which the community college tuition and fees of the student were set to $0 pursuant to section 788(a);

   Inserted: "(D) is not enrolled in a dual or concurrent enrollment program or early college high school; and

   Inserted: "(E) in the case of a student who is a United States citizen, has filed a Free Application for Federal Student Aid described in section 483 for the applicable award year for which the student is enrolled.

   Inserted: "(6) Eligible tribal college or university.--The term 'eligible Tribal College or University' means--

   Inserted: "(A) a 2-year Tribal College or University; or

   Inserted: "(B) a degree-granting Tribal College or University--

   Inserted: "(i) at which the highest degree awarded is an associate degree; or

   Inserted: "(ii) an associate degree is the predominant degree awarded.

   Inserted: "(7) Institution of higher education.--The term 'institution of higher education' has the meaning given the term in section 101.

   Inserted: "(8) Means-tested federal benefit program.--The term 'means-tested Federal benefit program' has the meaning given the term in section 479.

   Inserted: "(9) Recognized postsecondary credential.--The term 'recognized postsecondary credential' has the meaning given the term in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102).

   Inserted: "(10) State fiscal support for higher education.--

   Inserted: "(A) Inclusions.--

   Inserted: "(i) In general.--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--

   Inserted: "(I) 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; and

   Inserted: "(II) any funds described in clause (ii), if applicable.

   Inserted: "(ii) Local funds.--In the case of a State that includes, as part of the State share under section 786(b)(2)(B) for an award year, funds provided to community colleges by local governments in such State for the purpose of carrying out this part, local funds provided to community colleges operated or controlled by such State for operating expenses (excluding capital expenses and research and development costs) shall be included in the calculation of the State fiscal support for higher education for such award year under clause (i).

   Inserted: "(B) Exclusions.--State fiscal support for higher education for a State for a fiscal year shall not include--

   Inserted: "(i) funds described in subparagraph (A) that are returned to the State;

   Inserted: "(ii) State-appropriated funds derived from Federal sources, including funds provided under section 786(a);

   Inserted: "(iii) funds that are included in the State share under section 786(b), including funds included in the State share in accordance with paragraph (2)(A) of such section;

   Inserted: "(iv) 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 (C);

   Inserted: "(v) tuition, fees, or other educational charges paid directly by a student to a public institution of higher education or to the State;

   Inserted: "(vi) funds for--

   Inserted: "(I) financial aid to students attending, or operating expenses of--

   Inserted: "(aa) out-of-State institutions of higher education;

   Inserted: "(bb) proprietary institutions of higher education (as defined in section 102(b)); or

   Inserted: "(cc) institutions of higher education not accredited by an agency or association recognized by the Secretary pursuant to section 496;

   Inserted: "(II) financial aid to students awarded predominantly on the basis of merit, including programs awarded on the basis of predicted or actual academic performance or assessments;

   Inserted: "(III) research and development; or

   Inserted: "(IV) hospitals, athletics, or other auxiliary enterprises;

   Inserted: "(vii) corporate or other private donations directed to one or more institutions of higher education permitted to be expended by the State; or

   Inserted: "(viii) any other funds that the Secretary determines shall not be included in the calculation of State fiscal support for higher education for such State.

   Inserted: "(C) Adjustments for biennial appropriations.--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.

   Inserted: "(11) State fiscal support for higher education per full-time equivalent student.--The term 'State fiscal support for higher education per full-time equivalent student', when used with respect to a State for a fiscal year, means the amount that is equal to--

   Inserted: "(A) the State fiscal support for higher education for the previous fiscal year; divided by

   Inserted: "(B) the number of full-time equivalent students enrolled in public institutions of higher education in such State for such previous fiscal year.

   Inserted: "(12) Tribal college or university.--The term 'Tribal College or University' has the meaning given such term in section 316(b)(3).

   Inserted: "SEC. 792. SUNSET.

   Inserted: "(a) In General.--The authority to make grants under section 785 and 790 shall expire at the end of award year 2027-2028.

   Inserted: "(b) Inapplicability of GEPA Contingent Extension of Programs.--Section 422 of the General Education Provisions Act (20 U.S.C. 1226a) shall not apply to this part.

   Inserted: "SEC. 793. APPROPRIATION.

   Inserted: "In addition to amounts otherwise available, there is appropriated for fiscal year 2023, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary, to remain available until September 30, 2030, for carrying out this part (except for section 790).".

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