Predominantly Black Institutions

Part A of title III of the Higher Education Act of 1965 (20 U.S.C. 1051 et seq.) is amended by inserting after section 317 (20 U.S.C. 1059d) the following new section:

318.

Predominantly Black Institutions

(a)

Findings and Purpose

(1)

Findings

The Congress finds that— (A)although Black Americans have made significant progress in closing the gap between Black and White enrollment in higher education— (i)Black Americans continue to trail Whites in the percentage of the college-age cohort who enroll and graduate from college; (ii)the college participation rate of Whites was 46 percent from 2000–2002, while that for Blacks was only 39 percent; and (iii)the gap between White and Black baccalaureate degree attainment rates also remains high, continuing to exceed 10 percent; (B)a growing number of Black American students are participating in higher education and are enrolled at a growing number of urban and rural Predominantly Black Institutions that have included in their mission the provision of academic training and education for both traditional and non-traditional minority students; (C)the overwhelming majority of students attending Predominantly Black Institutions come from low- and middle-income families and qualify for participation in the Federal student assistance programs or other need-based Federal programs; and recent data from the National Postsecondary Student Aid Study indicate that 47 percent of Pell grant recipients were Black compared to only 21 percent of Whites; (D)many of these students are also first generation college students who lack the appropriate academic preparation for success in college and whose parents lack the ordinary knowledge and information regarding financing a college education; (E)there is a particular national need to aid institutions of higher education that have become Predominantly Black Institutions by virtue of the fact that they have expanded opportunities for Black American and other minority students; (F)Predominantly Black Institutions fulfill a unique mission and represent a vital component of the American higher education landscape, far beyond that which was initially envisioned; (G)Predominantly Black Institutions serve the cultural and social advancement of low-income, Black American and other minority students and are a significant access point for these students to higher education and the opportunities offered by American society; (H)the concentration of these students in a limited number of two-year and four-year Predominantly Black Institutions and their desire to secure a degree to prepare them for a successful career places special burdens on those institutions who attract, retain, and graduate these students; and (I)financial assistance to establish or strengthen the physical plants, financial management, academic resources, and endowments of the Predominantly Black Institutions are appropriate methods to enhance these institutions and facilitate a decrease in reliance on governmental financial support and to encourage reliance on endowments and private sources. (2)

Purpose

It is the purpose of this section to assist Predominantly Black Institutions in expanding educational opportunity through a program of Federal assistance. (b)

Definitions

For purposes of this section: (1)

Predominantly Black Institution

The term Predominantly Black Institution means an institution of higher education— (A)that is an eligible institution (as defined in paragraph (5)(A) of this subsection) with a minimum of 1,000 undergraduate students; (B)at which at least 50 percent of the undergraduate students enrolled at the institution are low-income individuals or first-generation college students (as that term is defined in section 402A(g)); and (C)at which at least 50 percent of the undergraduate students are enrolled in an educational program leading to a bachelor’s or associate’s degree that the institution is licensed to award by the State in which it is located. (2)

Low-income individual

The term low-income individual has the meaning given such term in section 402A(g). (3)

Means-tested Federal benefit program

The term means-tested Federal benefit program means a program of the Federal Government, other than a program under title IV, in which eligibility for the programs’ benefits, or the amount of such benefits, or both, are determined on the basis of income or resources of the individual or family seeking the benefit. (4)

State

The term State means each of the 50 States and the District of Columbia. (5)

Other definitions

For purposes of this section, the terms defined by section 312 have the meanings provided by that section, except as follows: (A)

Eligible institution

(i)The term eligible institution means an institution of higher education that— (I)has an enrollment of needy undergraduate students as required and defined by subparagraph (B); (II)except as provided in section 392(b), the average educational and general expenditure of which are low, per full-time equivalent undergraduate student in comparison with the average educational and general expenditure per full-time equivalent undergraduate student of institutions that offer similar instruction; (III)has an enrollment of undergraduate students that is at least 40 percent Black American students; (IV)is legally authorized to provide, and provides within the State, an educational program for which the institution awards a bachelors degree, or in the case of a junior or community college, an associate’s degree; and (V)is accredited by a nationally recognized accrediting agency or association determined by the Secretary to be a reliable authority as to the quality of training offered, or is, according to such an agency or association, making reasonable progress toward accreditation. (ii)For purposes of the determination of whether an institution is an eligible institution under this subparagraph, the factor described under clause (i)(I) shall be given twice the weight of the factor described under clause (i)(III). (B)

Enrollment of needy students

The term enrollment of needy students means the enrollment at an eligible institution with respect to which at least 50 percent of the undergraduate students enrolled in an academic program leading to a degree— (i)in the second fiscal year preceding the fiscal year for which the determination is made, were Pell Grant recipients in such year; (ii)come from families that receive benefits under a means-tested Federal benefits program (as defined in subsection (b)(3)); (iii)attended a public or nonprofit private secondary school which is in the school district of a local educational agency which was eligible for assistance pursuant to title I of the Elementary and Secondary Education Act of 1965 in any year during which the student attended that secondary school, and which for the purpose of this paragraph and for that year was determined by the Secretary (pursuant to regulations and after consultation with the State educational agency of the State in which the school is located) to be a school in which the enrollment of children counted under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965 exceeds 30 percent of the total enrollment of that school; or (iv)are first-generation college students as that term is defined in section 402A(g), and a majority of such first-generation college students are low-income individuals. (c)

Authorized Activities

(1)

Types of activities authorized

Grants awarded pursuant to subsection (d) shall be used by Predominantly Black Institutions— (A)to assist the institution to plan, develop, undertake, and implement programs to enhance the institution’s capacity to serve more low- and middle-income Black American students; (B)to expand higher education opportunities for title IV eligible students by encouraging college preparation and student persistence in secondary and postsecondary education; and (C)to strengthen the institution’s financial ability to serve the academic needs of the students described in subparagraphs (A) and (B). (2)

Authorized activities

Grants made to an institution under subsection (d) shall be used for one or more of the following activities: (A)The activities described in section 311(a)(1) through (11). (B)Academic instruction in disciplines in which Black Americans are underrepresented. (C)Establishing or enhancing a program of teacher education designed to qualify students to teach in a public elementary or secondary school in the State that shall include, as part of such program, preparation for teacher certification. (D)Establishing community outreach programs which will encourage elementary and secondary students to develop the academic skills and the interest to pursue postsecondary education. (E)Other activities proposed in the application submitted pursuant to subsection (e) that— (i)contribute to carrying out the purposes of this section; and (ii)are approved by the Secretary as part of the review and acceptance of such application. (3)

Endowment Fund

(A)

In general

A Predominantly Black Institution may use not more than 20 percent of the grant funds provided under this section to establish or increase an endowment fund at the institution. (B)

Matching requirement

In order to be eligible to use grant funds in accordance with subparagraph (A), the Predominantly Black Institution shall provide matching funds from non-Federal sources, in an amount equal to or greater than the Federal funds used in accordance with subparagraph (A), for the establishment or increase of the endowment fund. (C)

Comparability

The provisions of part C regarding the establishment or increase of an endowment fund, that the Secretary determines are not inconsistent with this subsection, shall apply to funds used under subparagraph (A). (4)

Limitation

Not more than 50 percent of the allotment of any Predominantly Black Institution may be available for the purpose of constructing or maintaining a classroom, library, laboratory, or other instructional facility. (d)

Allotments to Predominantly Black Institutions

(1)

Allotment: Pell Grant basis

From the amounts appropriated to carry out this section for any fiscal year, the Secretary shall allot to each Predominantly Black Institution a sum which bears the same ratio to one-half that amount as the number of Pell Grant recipients in attendance at such institution at the end of the academic year preceding the beginning of that fiscal year bears to the total number of Pell Grant recipients at all institutions eligible under this section. (2)

Allotment: graduates basis

From the amounts appropriated to carry out this section for any fiscal year, the Secretary shall allot to each Predominantly Black Institution a sum which bears the same ratio to one-fourth that amount as the number of graduates for such school year at such institution bears to the total number of graduates for such school year at all intuitions eligible under this section. (3)

Allotment: graduates seeking a higher degree basis

From the amounts appropriated to carry out this section for any fiscal year, the Secretary shall allot to each Predominantly Black Institution a sum which bears the same ratio to one-fourth of that amount as the percentage of graduates per institution who are admitted to and in attendance at, within 2 years of graduation with an associates degree or a baccalaureate degree, either a baccalaureate degree-granting institution or a graduate or professional school in a degree program in disciplines in which Black American students are underrepresented, bears to the percentage of such graduates per institution for all eligible institutions. (4)

Minimum allotment

(A)Notwithstanding paragraphs (1), (2), and (3), the amount allotted to each Predominantly Black Institution under this section shall not be less than $250,000. (B)If the amount appropriated pursuant to section 399 for any fiscal year is not sufficient to pay the minimum allotment, the amount of such minimum allotment shall be ratably reduced. If additional sums become available for such fiscal year, such reduced allocation shall be increased on the same basis as it was reduced until the amount allotted equals the minimum allotment required by subparagraph (A). (5)

Reallotment

The amount of a Predominantly Black Institution’s allotment under paragraph (1), (2), (3), or (4) for any fiscal year, which the Secretary determines will not be required for such institution for the period such allotment is available, shall be available for reallotment to other Predominantly Black Institutions in proportion to the original allotment to such other institutions under this section for such fiscal year. The Secretary shall reallot such amounts from time to time, on such date and during such period as the Secretary deems appropriate. (e)

Applications

No Predominantly Black Institution shall be entitled to its allotment of Federal funds for any grant under subsection (d) for any period unless the institution submits an application to the Secretary at such time, in such manner, and containing or accompanied by such information as the Secretary may reasonably require. (f)

Application review process

Section 393 shall not apply to applications under this section. (g)

Prohibition

No Predominantly Black Institution that applies for and receives a grant under this section may apply for or receive funds under any other program under this part or part B of this title. (h)

Duration and carryover

Any funds paid to a Predominantly Black Institution under this section and not expended or used for the purposes for which the funds were paid within 10 years following the date of the grant awarded to such institution under this section shall be repaid to the Treasury of the United States.