[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1399 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1399

    To amend the Internal Revenue Code of 1986 to combine the Hope 
Scholarship Credit and the deduction for qualified tuition and related 
 expenses into a refundable college affordability and creating chances 
 for educational success for students (ACCESS) credit, to establish an 
   Early Federal Pell Grant Commitment Demonstration Program, and to 
             increase the maximum Federal Pell Grant Award.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 15, 2007

   Mr. Biden introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to combine the Hope 
Scholarship Credit and the deduction for qualified tuition and related 
 expenses into a refundable college affordability and creating chances 
 for educational success for students (ACCESS) credit, to establish an 
   Early Federal Pell Grant Commitment Demonstration Program, and to 
             increase the maximum Federal Pell Grant Award.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``College Affordability and Creating 
Chances for Educational Success for Students Act of 2007''.

                 TITLE I--COLLEGE ACCESS TAX CREDIT ACT

SEC. 101. SHORT TITLE.

    This title may be cited as the ``College ACCESS Tax Credit Act''.

SEC. 102. COLLEGE AFFORDABILITY AND CREATING CHANCES FOR EDUCATIONAL 
              SUCCESS FOR STUDENTS (ACCESS) CREDIT.

    (a) Allowance of Credit.--
            (1) In general.--Subpart C of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 (relating to 
        refundable credits) is amended by redesignating section 36 as 
        section 37 and by inserting after section 35 the following new 
        section:

``SEC. 36. COLLEGE AFFORDABILITY AND CREATING CHANCES FOR EDUCATIONAL 
              SUCCESS FOR STUDENTS (ACCESS) CREDIT.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this subtitle for any taxable year an amount 
equal to the qualified tuition and related expenses paid by the 
taxpayer during the taxable year (for education furnished during any 
academic period beginning in such taxable year).
    ``(b) Limitations.--
            ``(1) In general.--The credit allowed under this section 
        shall not exceed $3,000 with respect to any student for any 
        taxable year.
            ``(2) Lifetime limitation.--The credit allowed under this 
        section with respect to any student shall not exceed--
                    ``(A) the excess (if any) of --
                            ``(i) $12,000 with respect to education 
                        furnished prior to the date such student 
                        receives a baccalaureate degree, over
                            ``(ii) the aggregate credit allowed under 
                        this section with respect to such education for 
                        all prior taxable years, and
                    ``(B) the excess (if any) of--
                            ``(i) $6,000 with respect to education 
                        furnished after to the date such student 
                        receives a baccalaureate degree, over
                            ``(ii) the aggregate credit allowed under 
                        this section with respect to such education for 
                        all prior taxable years.
            ``(3) Limitation based on modified adjusted gross income.--
                    ``(A) In general.--The amount which would (but for 
                this subsection) be taken into account under subsection 
                (a) for the taxable year shall be reduced (but not 
                below zero) by the amount determined under subparagraph 
                (B).
                    ``(B) Amount of reduction.--The amount determined 
                under this subparagraph is the amount which bears the 
                same ratio to the amount which would be so taken into 
                account as--
                            ``(i) the excess of--
                                    ``(I) the taxpayer's modified 
                                adjusted gross income for such taxable 
                                year, over
                                    ``(II) $65,000 ($130,000 in the 
                                case of a joint return), bears to
                            ``(ii) $18,500 ($37,000 in the case of a 
                        joint return).
                    ``(C) Modified adjusted gross income.--The term 
                `modified adjusted gross income' means the adjusted 
                gross income of the taxpayer for the taxable year 
                increased by any amount excluded from gross income 
                under section 911, 931, or 933.
            ``(4) Denial of credit if student convicted of a felony 
        drug offense.--The credit under subsection (a) shall not be 
        allowed for qualified tuition and related expenses for the 
        enrollment or attendance of a student for any academic period 
        if such student has been convicted of a Federal or State felony 
        offense consisting of the possession or distribution of a 
        controlled substance before the end of the taxable year with or 
        within which such period ends.
    ``(c) Election Not To Have Section Apply.--A taxpayer may elect not 
to have this section apply with respect to the qualified tuition and 
related expenses of an individual for any taxable year.
    ``(d) Definitions.--For purposes of this section, the terms 
`qualified tuition and related expenses' and `eligible educational 
institution' shall have the meaning give such terms under section 
25A(d).
    ``(e) Special Rules.--For purposes of this section, rules similar 
to the rules of paragraphs (1) through (7) of section 25A shall apply.
    ``(f) Inflation Adjustment.--
            ``(1) Dollar limitation on amount of credit.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2007, the $3,000 amount under 
                subsection (b)(1) shall be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2006' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--If any amount as adjusted under 
                subparagraph (A) is not a multiple of $100, such amount 
                shall be rounded to the next lowest multiple of $100.
            ``(2) Income limits.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2007, each of the dollar amounts in 
                subsection (b)(2)(B) shall each be increased by an 
                amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2006' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--If any amount as adjusted under 
                subparagraph (A) is not a multiple of $1,000, such 
                amount shall be rounded to the next lowest multiple of 
                $1,000.
    ``(g) Regulations.--The Secretary may prescribe such regulations as 
may be necessary or appropriate to carry out this section, including 
regulations providing for a recapture of the credit allowed under this 
section in cases where there is a refund in a subsequent taxable year 
of any amount which was taken into account in determining the amount of 
such credit.''.
            (2) Refundability of credit.--Paragraph (2) of section 
        1324(b) of title 31, United States Code, is amended by 
        inserting before the period ``or enacted by the College ACCESS 
        Tax Credit Act''.
            (3) Conforming amendments.--
                    (A) Subparagraph (A) of section 135(d)(2) of the 
                Internal Revenue Code of 1986 is amended by striking 
                ``section 25A'' and inserting ``sections 25A and 36''.
                    (B) Section 529 of such Code is amended by striking 
                ``the credit allowed to the taxpayer or any other 
                person under section 25A'' in subclause (II) of 
                subsection (c)(3)(B)(v) and inserting ``any credit 
                allowed to the taxpayer or any other person under 
                sections 25A and 36''.
                    (C) Section 530 of such Code is amended by striking 
                ``the credit allowed to the taxpayer or any other 
                person under section 25A'' in subclause (II) of 
                subsection (d)(2)(C)(i) and inserting ``any credit 
                allowed to the taxpayer or any other person under 
                sections 25A and 36''.
                    (D) Subparagraph (J) of section 6213(g)(2) of such 
                Code is amended by striking ``section 25A(g)(1)'' and 
                inserting ``section 25A(g)(1) or 36(e)(1)''.
                    (E) Section 6501(m) of such Code is amended by 
                inserting ``36(c),'' before ``, 40(f)''
                    (F) The table of sections for subpart C of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                striking the item relating to section 36 and inserting 
                the following:

``Sec. 36. College affordability and creating chances for educational 
                            success for students (ACCESS) credit.
``Sec. 37. Overpayments of tax.''.
    (b) Repeal of Hope Scholarship Credit.--
            (1) In general.--Subsection (a) of section 25A of the 
        Internal Revenue Code of 1986 is amended to read as follows:
    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 20 percent of so much of the 
qualified tuition and related expenses paid by the taxpayer during the 
taxable year (for education furnished during any academic period 
beginning in such taxable year) as does not exceed $10,000.''.
            (2) Conforming amendments.--
                    (A) Section 25A of such Code is amended by striking 
                subsections (b) and (c) and by redesignating 
                subsections (d), (e), (f), (g), (h), and (i) as 
                subsections (b), (c), (d), (e), (f), and (g).
                    (B) Section 25A(e) of such Code, as redesignated by 
                subparagraph (A), is amended by adding at the end the 
                following:
            ``(8) Coordination with college affordability and creating 
        chances for educational success for students (access) credit.--
        The qualified tuition and related expenses with respect to an 
        individual for whom a credit under section 36 is allowed for 
        the taxable year shall not be taken into account under this 
        section.
            ``(9) Certain expenses eligible.--For purposes of this 
        section, qualified tuition and related expenses shall include 
        expenses described in subsection (d)(1) with respect to any 
        course of instruction at an eligible educational institution to 
        acquire or improve job skills of the individual.''.
                    (C) Paragraph (2) of section 25A(e) of such Code, 
                as redesignated by subparagraph (A), is amended by 
                striking ``before the application of subsections (b), 
                (c), and (d)'' and inserting ``before the application 
                of subsection (b) and paragraphs (8) and (9) of this 
                subsection''.
                    (D) Section 25A(f) of such Code, as redesignated by 
                subparagraph (A), is amended to read as follows:
    ``(f) Inflation Adjustment.--
            ``(1) In general.--In the case of a taxable year beginning 
        after 2001, the $40,000 and $80,000 amounts in subsection 
        (b)(2) shall each be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2000' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--If any amount as adjusted under 
        subparagraph (A) is not a multiple of $1,000, such amount shall 
        be rounded to the next lowest multiple of $1,000.''.
                    (E) The heading for section 25A of such Code is 
                amended--
                            (i) by striking ``hope and'', and
                            (ii) by striking ``credits'' and inserting 
                        ``credit''.
                    (F) The item relating to section 25A in the table 
                of sections for subpart A of part IV of subchapter A of 
                chapter 1 of such Code is amended to read as follows:

``25A. Lifetime Learning credit.''.
                    (G)(i) Subparagraph (B) of section 72(t)(7) of such 
                Code is amended by striking ``section 25A(g)(2)'' and 
                inserting ``section 25A(e)(2)''.
                    (ii) Section 221(d) of such Code is amended--
                            (I) by striking ``section 25A(g)(2)'' in 
                        paragraph (2)(B) and inserting ``section 
                        25A(e)(2)'',
                            (II) by striking ``section 25A(f)(2)'' in 
                        paragraph (2)(B) and inserting ``section 
                        25A(d)(2)'', and
                            (III) by striking ``section 25A(b)(3)'' in 
                        paragraph (3) and inserting ``section 
                        25A(b)(3)(B)''.
                    (iii) Section 529 of such Code is amended--
                            (I) by striking ``section 25A(g)(2)'' in 
                        subclause (I) of subsection (c)(3)(B)(v) and 
                        inserting ``section 25A(e)(2)'', and
                            (II) by striking ``section 25A(b)(3)'' in 
                        clause (i) of subsection (e)(3)(B) and 
                        inserting ``section 25A(b)(3)(A)''.
                    (iv) Section 530 of such Code is amended--
                            (I) by striking ``section 25A(g)(2)'' in 
                        subclause (I) of subsection (d)(2)(C)(i) and 
                        inserting ``section 25A(e)(2)'', and
                            (II) by striking ``section 25A(g)(2)'' in 
                        clause (iii) of subsection (d)(4)(B) and 
                        inserting ``section 25A(e)(2)''.
                    (v) Subsection (e) of section 6050S of such Code is 
                amended by striking ``(g)(2) thereof'' and inserting 
                ``(e)(2) thereof''.
                    (vi) Subparagraph (J) of section 6213(g)(2) of such 
                Code, as amended by subsection 9a)(3), is amended by 
                striking ``section 25A(g)(1)'' and inserting ``section 
                25A(e)(1)''.
    (c) Repeal of Deduction for Qualified Tuition and Related 
Expenses.--
            (1) In general.--Part VII of subchapter B of chapter 1 of 
        the Internal Revenue Code of 1986 is amended by striking 
        section 222.
            (2) Conforming amendments.--
                    (A) The table of sections for part VII of 
                subchapter B of chapter 1 of such Code is amended by 
                striking the item relating to section 222.
                    (B) The following sections of the Internal Revenue 
                Code of 1986 are each amended by striking ``222,'':
                            (i) Section 86(b)(2)(A).
                            (ii) Section 135(c)(4)(A).
                            (iii) Section 137(b)(3)(A).
                            (iv) Section 199(d)(2)(A).
                            (v) Section 219(g)(3)(A)(ii).
                            (vi) Section 221(b)(2)(C)(i).
                    (C) Section 469(i)(3)(F)(iii) of such Code is 
                amended by striking ``221, and 222'' and inserting 
                ``and 221''.
    (d) Effective Date.--The amendments made by this section shall 
apply to expenses paid after December 31, 2006, for education furnished 
in academic periods beginning after such date.

  TITLE II--EARLY FEDERAL PELL GRANT COMMITMENT DEMONSTRATION PROGRAM

SEC. 201. EARLY FEDERAL PELL GRANT COMMITMENT DEMONSTRATION PROGRAM.

    Subpart 1 of part A of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070a et seq.) is amended by adding at the end the 
following:

``SEC. 401B. EARLY FEDERAL PELL GRANT COMMITMENT DEMONSTRATION PROGRAM.

    ``(a) Demonstration Program Authority.--
            ``(1) In general.--The Secretary is authorized to carry out 
        an Early Federal Pell Grant Commitment Demonstration Program 
        under which--
                    ``(A) the Secretary awards grants to 4 State 
                educational agencies, in accordance with paragraph (2), 
                to pay the administrative expenses incurred in 
                participating in the demonstration program under this 
                section; and
                    ``(B) the Secretary awards Federal Pell Grants to 
                participating students in accordance with this section.
            ``(2) Grants.--
                    ``(A) In general.--From amounts appropriated under 
                subsection (g) for a fiscal year, the Secretary is 
                authorized to award grants to 4 State educational 
                agencies to enable the State educational agencies to 
                pay the administrative expenses incurred in 
                participating in a demonstration program under which 
                students in 8th grade who are eligible for a free or 
                reduced price meal receive a commitment to receive a 
                Federal Pell Grant early in their academic careers.
                    ``(B) Equal amounts.--The Secretary shall award 
                grants under this section in equal amounts to each of 
                the 4 participating State educational agencies.
    ``(b) Demonstration Project Requirements.--Each of the 4 
demonstration projects assisted under this section shall meet the 
following requirements:
            ``(1) Participants.--
                    ``(A) In general.--The State educational agency 
                shall make participation in the demonstration project 
                available to 2 cohorts of students, which shall consist 
                of--
                            ``(i) 1 cohort of 8th grade students who 
                        begin the participation in academic year 2007-
                        2008; and
                            ``(ii) 1 cohort of 8th grade students who 
                        begin the participation in academic year 2008-
                        2009.
                    ``(B) Students in each cohort.--Each cohort of 
                students shall consist of not more than 10,000 8th 
                grade students who qualify for a free or reduced price 
                meal under the Richard B. Russell National School Lunch 
                Act or the Child Nutrition Act of 1966.
            ``(2) Student data.--The State educational agency shall 
        ensure that student data from local educational agencies 
        serving students who participate in the demonstration project, 
        as well as student data from local educational agencies serving 
        a comparable group of students who do not participate in the 
        demonstration project, are available for evaluation of the 
        demonstration project.
            ``(3) Federal pell grant commitment.--Each student who 
        participates in the demonstration project receives a commitment 
        from the Secretary to receive a Federal Pell Grant during the 
        first academic year that student is in attendance at an 
        institution of higher education as an undergraduate, if the 
        student applies for Federal financial aid (via the FAFSA) 
        during the student's senior year of secondary school and during 
        succeeding years.
            ``(4) Applicability of federal pell grant requirements.--
        The requirements of section 401 shall apply to Federal Pell 
        Grants awarded pursuant to this section, except that the amount 
        of each participating student's Federal Pell Grant only shall 
        be calculated by deeming such student to have an expected 
        family contribution equal to zero.
            ``(5) Application process.--The Secretary shall establish 
        an application process to select State educational agencies to 
        participate in the demonstration program and State educational 
        agencies shall establish an application process to select local 
        educational agencies within the State to participate in the 
        demonstration project.
            ``(6) Local educational agency participation.--Subject to 
        the 10,000 statewide student limitation described in paragraph 
        (1), a local educational agency serving students, not less than 
        50 percent of whom are eligible for a free or reduced price 
        meal under the Richard B. Russell National School Lunch Act or 
        the Child Nutritional Act of 1966, shall be eligible to 
        participate in the demonstration project.
    ``(c) State Educational Agency Applications.--
            ``(1) In general.--Each State educational agency desiring 
        to participate in the demonstration program under this section 
        shall submit an application to the Secretary at such time and 
        in such manner as the Secretary may require.
            ``(2) Contents.--Each application shall include--
                    ``(A) a description of the proposed targeted 
                information campaign for the demonstration project and 
                a copy of the plan described in subsection (f)(2);
                    ``(B) a description of the student population that 
                will receive an early commitment to receive a Federal 
                Pell Grant under this section;
                    ``(C) an assurance that the State educational 
                agency will fully cooperate with the ongoing evaluation 
                of the demonstration project; and
                    ``(D) such other information as the Secretary may 
                require.
    ``(d) Selection Considerations.--
            ``(1) Selection of state educational agencies.--In 
        selecting State educational agencies to participate in the 
        demonstration program, the Secretary shall consider--
                    ``(A) the number and quality of State educational 
                agency applications received;
                    ``(B) the Department's capacity to oversee and 
                monitor each State educational agency's participation 
                in the demonstration program;
                    ``(C) a State educational agency's--
                            ``(i) financial responsibility;
                            ``(ii) administrative capability;
                            ``(iii) commitment to focusing State 
                        resources, in addition to any resources 
                        provided under part A of title I of the 
                        Elementary and Secondary Education Act of 1965, 
                        on students who receive assistance under such 
                        part A;
                            ``(iv) the ability and plans of a State 
                        educational agency to run an effective and 
                        thorough targeted information campaign for 
                        students served by local educational agencies 
                        eligible to participate in the demonstration 
                        project; and
                            ``(v) ensuring the participation in the 
                        demonstration program of a diverse group of 
                        students with respect to ethnicity and gender.
            ``(2) Local educational agency.--In selecting local 
        educational agencies to participate in a demonstration project 
        under this section, the State educational agency shall 
        consider--
                    ``(A) the number and quality of local educational 
                agency applications received;
                    ``(B) the State educational agency's capacity to 
                oversee and monitor each local educational agency's 
                participation in the demonstration project;
                    ``(C) a local educational agency's--
                            ``(i) financial responsibility;
                            ``(ii) administrative capability;
                            ``(iii) commitment to focusing local 
                        resources, in addition to any resources 
                        provided under part A of title I of the 
                        Elementary and Secondary Education Act of 1965, 
                        on students who receive assistance under such 
                        part A;
                            ``(iv) the ability and plans of a local 
                        educational agency to run an effective and 
                        thorough targeted information campaign for 
                        students served by the local educational 
                        agency; and
                            ``(v) ensuring the participation in the 
                        demonstration project of a diverse group of 
                        students with respect to ethnicity and gender.
    ``(e) Evaluation.--
            ``(1) In general.--From amounts appropriated under section 
        (g) for a fiscal year, the Secretary shall reserve not more 
        than $1,000,000 to award a grant or contract to an organization 
        outside the Department for an independent evaluation of the 
        impact of the demonstration program assisted under this 
        section.
            ``(2) Competitive basis.--The grant or contract shall be 
        awarded on a competitive basis.
            ``(3) Matters evaluated.--The evaluation described in this 
        subsection shall--
                    ``(A) determine the number of individuals who were 
                encouraged by the demonstration program to pursue 
                higher education;
                    ``(B) identify the barriers to the effectiveness of 
                the demonstration program;
                    ``(C) assess the cost-effectiveness of the 
                demonstration program in improving access to higher 
                education;
                    ``(D) identify the reasons why participants in the 
                demonstration program either received or did not 
                receive a Federal Pell Grant;
                    ``(E) identify intermediate outcomes (relative to 
                postsecondary education attendance), such as whether 
                participants--
                            ``(i) were more likely to take a college-
                        prep curriculum while in secondary school;
                            ``(ii) submitted any college applications; 
                        and
                            ``(iii) took the PSAT, SAT, or ACT;
                    ``(F) identify the number of individuals 
                participating in the demonstration program who pursued 
                an associate's degree or a bachelor's degree, as well 
                as other forms of postsecondary education;
                    ``(G) compare the findings of the demonstration 
                program with respect to participants to comparison 
                groups (of similar size and demographics) that did not 
                participate in the demonstration program; and
                    ``(H) identify the impact on the parents of 
                students eligible to participate in the demonstration 
                program.
            ``(4) Dissemination.--The findings of the evaluation shall 
        be widely disseminated to the public by the organization 
        conducting the evaluation as well as by the Secretary.
    ``(f) Targeted Information Campaign.--
            ``(1) In general.--Each State educational agency receiving 
        a grant under this section shall, in cooperation with the 
        participating local educational agencies within the State and 
        the Secretary, develop a targeted information campaign for the 
        demonstration program assisted under this section.
            ``(2) Plan.--Each State educational agency receiving a 
        grant under this section shall include in the application 
        submitted under subsection (c) a written plan for their 
        proposed targeted information campaign. The plan shall include 
        the following:
                    ``(A) Outreach.--Outreach to students and their 
                families, at a minimum, at the beginning and end of 
                each academic year of the demonstration project.
                    ``(B) Distribution.--How the State educational 
                agency plans to provide the outreach described in 
                subparagraph (A) and to provide the information 
                described in subparagraph (C).
                    ``(C) Information.--The annual provision by the 
                State educational agency to all students and families 
                participating in the demonstration program of 
                information regarding--
                            ``(i) the estimated statewide average 
                        higher education institution cost data for each 
                        academic year, which cost data shall be 
                        disaggregated by--
                                    ``(I) type of institution, 
                                including--
                                            ``(aa) 2-year public 
                                        colleges;
                                            ``(bb) 4-year public 
                                        colleges; and
                                            ``(cc) 4-year private 
                                        colleges;
                                    ``(II) by component, including--
                                            ``(aa) tuition and fees; 
                                        and
                                            ``(bb) room and board;
                            ``(ii) Federal Pell Grants, including--
                                    ``(I) the maximum Federal Pell 
                                Grant for each academic year;
                                    ``(II) when and how to apply for a 
                                Federal Pell Grant; and
                                    ``(III) what the application 
                                process for a Federal Pell Grant 
                                requires;
                            ``(iii) State-specific college savings 
                        programs;
                            ``(iv) State-based merit aid;
                            ``(v) State-based financial aid; and
                            ``(vi) Federal financial aid available to 
                        students, including eligibility criteria for 
                        the Federal financial aid and an explanation of 
                        the Federal financial aid programs.
            ``(3) Cohorts.--The information described in paragraph 
        (2)(C) shall be provided to 2 cohorts of students annually for 
        the duration of the students' participation in the 
        demonstration program. The 2 cohorts shall consist of--
                    ``(A) 1 cohort of 8th grade students who begin the 
                participation in academic year 2007-2008; and
                    ``(B) 1 cohort of 8th grade students who begin the 
                participation in academic year 2008-2009.
            ``(4) Reservation.--Each State educational agency receiving 
        a grant under this section shall reserve $200,000 of the grant 
        funds received each fiscal year for each of the 2 cohorts of 
        students (for a total reservation of $400,000 each fiscal year) 
        served by the State to carry out their targeted information 
        campaign described in this subsection.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) $1,300,000 for fiscal year 2008, of which--
                    ``(A) $500,000 shall be available to carry out 
                subsection (e); and
                    ``(B) $800,000 shall be available to carry out 
                subsection (f)(2)(C);
            ``(2) $1,600,000 for fiscal year 2009, of which $1,600,000 
        shall be available to carry out subsection (f)(2)(C);
            ``(3) $1,600,000 for fiscal year 2010, of which $1,600,000 
        shall be available to carry out subsection (f)(2)(C);
            ``(4) $2,100,000 for fiscal year 2011, of which--
                    ``(A) $500,000 shall be available to carry out 
                subsection (e); and
                    ``(B) $1,600,000 shall be available to carry out 
                subsection (f)(2)(C);
            ``(5) $1,600,000 for fiscal year 2012, of which $1,600,000 
        shall be available to carry out subsection (f)(2)(C);
            ``(6) $14,600,000 for fiscal year 2013, of which--
                    ``(A) $800,000 shall be available to carry out 
                subsection (f)(2)(C); and
                    ``(B) $13,800,000 shall be available for Federal 
                Pell Grants provided in accordance with this section; 
                and
            ``(7) $13,800,000 for fiscal year 2014, of which 
        $13,800,000 shall be available for Federal Pell Grants provided 
        in accordance with this section.''.

        TITLE III--INCREASE IN FEDERAL PELL GRANT MAXIMUM AWARD

SEC. 301. INCREASE OF MAXIMUM FEDERAL PELL GRANT AMOUNT.

    Section 401(b)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 
1070a(b)(2)(A)) is amended by striking clauses (i) through (v) and 
inserting the following:
            ``(i) $5,100 for academic year 2007-2008;
            ``(ii) $5,400 for academic year 2008-2009;
            ``(iii) $5,700 for academic year 2009-2010;
            ``(iv) $6,000 for academic year 2010-2011; and
            ``(v) $6,300 for academic year 2011-2012,''.
                                 <all>