II 109th CONGRESS 1st Session S. 1228 IN THE SENATE OF THE UNITED STATES June 13, 2005 Ms. Cantwell introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To amend the Higher Education Act of 1965 to modify the computation of eligibility for certain Federal Pell Grants, and for other purposes.

1.

Short title

This Act may be cited as the Federal Pell Grant Eligibility Clarification Act of 2005.

2.

Consideration of current year circumstances

Section 480(a) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(a)) is amended— (1)in paragraph (1), by striking paragraph (2) and inserting paragraphs (2) and (3); and (2)by adding at the end the following: (3)

Consideration of current year circumstances for certain Pell grant awards

(A)

In general

If a student is a resident of a State that is in an extended benefit period (as determined under subparagraph (C)), then for purposes of calculating total income under paragraph (1) for a student seeking assistance under subpart 1 of part A, the Secretary shall reduce the student’s total income by an amount by which— (i)the adjusted gross income plus untaxed income and benefits for the preceding tax year minus excludable income (as defined in subsection (e)), exceeds (ii)the projected gross income plus untaxed income and benefits for the current tax year minus the projected excludable income (as defined in subsection (e)). (B)

Anti-fraud procedures

The Secretary shall establish procedures to ensure that computations made pursuant to subparagraph (A) are not fraudulent. (C)

Extended benefit period

For purposes of subparagraph (A), a State shall be considered to be in an extended benefit period if— (i)such a period is then in effect for such State under the Federal-State Extended Unemployment Compensation Act of 1970; or (ii)such a period would then be in effect for such State under such Act if section 203(d) of such Act were applied as if it had been amended by striking 5 each place it appears and inserting 4. .