[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5363 Enrolled Bill (ENR)]

        H.R.5363

                     One Hundred Sixteenth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Thursday,
           the third day of January, two thousand and nineteen


                                 An Act


 
    To reauthorize mandatory funding programs for historically Black 
 colleges and universities and other minority-serving institutions, and 
                           for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES.
    This Act may be cited as the ``Fostering Undergraduate Talent by 
Unlocking Resources for Education Act'' or the ``FUTURE Act''.
SEC. 2. CONTINUED SUPPORT FOR MINORITY-SERVING INSTITUTIONS.
    Section 371(b)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 
1067q(b)(1)(A)) is amended by striking ``for each of the fiscal years 
2008 through 2019.'' and all that follows through the end of the 
subparagraph and inserting ``for fiscal year 2020 and each fiscal year 
thereafter.''.
SEC. 3. SECURE DISCLOSURE OF TAX-RETURN INFORMATION TO CARRY OUT THE 
HIGHER EDUCATION ACT OF 1965.
    (a) In General.--Paragraph (13) of section 6103(l) of the Internal 
Revenue Code of 1986 is amended to read as follows:
        ``(13) Disclosure of return information to carry out the higher 
    education act of 1965.--
            ``(A) Applications and recertifications for income-
        contingent or income-based repayment.--The Secretary shall, 
        upon written request from the Secretary of Education, disclose 
        to any authorized person, only for the purpose of (and to the 
        extent necessary in) determining eligibility for, or repayment 
        obligations under, income-contingent or income-based repayment 
        plans under title IV of the Higher Education Act of 1965 with 
        respect to loans under part D of such title, the following 
        return information from returns (for any taxable year specified 
        by the Secretary of Education as relevant to such purpose) of 
        an individual certified by the Secretary of Education as having 
        provided approval under section 494(a)(2) of such Act (as in 
        effect on the date of enactment of this paragraph) for such 
        disclosure:
                ``(i) Taxpayer identity information.
                ``(ii) Filing status.
                ``(iii) Adjusted gross income.
                ``(iv) Total number of exemptions claimed, if 
            applicable.
                ``(v) Number of dependents taken into account in 
            determining the credit allowed under section 24.
                ``(vi) If applicable, the fact that there was no return 
            filed.
            ``(B) Discharge of loan based on total and permanent 
        disability.--The Secretary shall, upon written request from the 
        Secretary of Education, disclose to any authorized person, only 
        for the purpose of (and to the extent necessary in) monitoring 
        and reinstating loans under title IV of the Higher Education 
        Act of 1965 that were discharged based on a total and permanent 
        disability (within the meaning of section 437(a) of such Act), 
        the following return information from returns (for any taxable 
        year specified by the Secretary of Education as relevant to 
        such purpose) of an individual certified by the Secretary of 
        Education as having provided approval under section 494(a)(3) 
        of such Act (as in effect on the date of enactment of this 
        paragraph) for such disclosure:
                ``(i) The return information described in clauses (i), 
            (ii), and (vi) of subparagraph (A).
                ``(ii) The return information described in subparagraph 
            (C)(ii).
            ``(C) Federal student financial aid.--The Secretary shall, 
        upon written request from the Secretary of Education, disclose 
        to any authorized person, only for the purpose of (and to the 
        extent necessary in) determining eligibility for, and amount 
        of, Federal student financial aid under a program authorized 
        under subpart 1 of part A, part C, or part D of title IV of the 
        Higher Education Act of 1965 the following return information 
        from returns (for the taxable year used for purposes of section 
        480(a) of such Act) of an individual certified by the Secretary 
        of Education as having provided approval under section 
        494(a)(1) of such Act (as in effect on the date of enactment of 
        this paragraph) for such disclosure:
                ``(i) Return information described in clauses (i) 
            through (vi) of subparagraph (A).
                ``(ii) The amount of any net earnings from self-
            employment (as defined in section 1402(a)), wages (as 
            defined in section 3121(a) or 3401(a)), and taxable income 
            from a farming business (as defined in section 236A(e)(4)).
                ``(iii) Amount of total income tax.
                ``(iv) Amount of any credit allowed under section 25A.
                ``(v) Amount of individual retirement account 
            distributions not included in adjusted gross income.
                ``(vi) Amount of individual retirement account 
            contributions and payments to self-employed SEP, Keogh, and 
            other qualified plans which were deducted from income.
                ``(vii) Amount of tax-exempt interest received.
                ``(viii) Amounts from retirement pensions and annuities 
            not included in adjusted gross income.
                ``(ix) If applicable, the fact that any of the 
            following schedules (or equivalent successor schedules) 
            were filed with the return:

                    ``(I) Schedule A.
                    ``(II) Schedule B.
                    ``(III) Schedule D.
                    ``(IV) Schedule E.
                    ``(V) Schedule F.
                    ``(VI) Schedule H.

                ``(x) If applicable, the amount reported on Schedule C 
            (or an equivalent successor schedule) as net profit or 
            loss.
            ``(D) Additional uses of disclosed information.--
                ``(i) In general.--In addition to the purposes for 
            which information is disclosed under subparagraphs (A), 
            (B), and (C), return information so disclosed may be used 
            by an authorized person, with respect to income-contingent 
            or income-based repayment plans, awards of Federal student 
            financial aid under a program authorized under subpart 1 of 
            part A, part C, or part D of title IV of the Higher 
            Education Act of 1965, and discharges of loans based on a 
            total and permanent disability (within the meaning of 
            section 437(a) of such Act), for purposes of--

                    ``(I) reducing the net cost of improper payments 
                under such plans, relating to such awards, or relating 
                to such discharges,
                    ``(II) oversight activities by the Office of 
                Inspector General of the Department of Education as 
                authorized by the Inspector General Act of 1978, and
                    ``(III) conducting analyses and forecasts for 
                estimating costs related to such plans, awards, or 
                discharges.

                ``(ii) Limitation.--The purposes described in clause 
            (i) shall not include the conduct of criminal 
            investigations or prosecutions.
                ``(iii) Redisclosure to institutions of higher 
            education, state higher education agencies, and designated 
            scholarship organizations.--Authorized persons may 
            redisclose return information received under subparagraph 
            (C), solely for the use in the application, award, and 
            administration of financial aid awarded by the Federal 
            government or awarded by a person described in subclause 
            (I), (II), or (III), to the following persons:

                    ``(I) An institution of higher education 
                participating in a program under subpart 1 of part A, 
                part C, or part D of title IV of the Higher Education 
                Act of 1965.
                    ``(II) A State higher education agency.
                    ``(III) A scholarship organization which is an 
                entity designated (prior to the date of the enactment 
                of this clause) by the Secretary of Education under 
                section 483(a)(3)(E) of such Act.

            This clause shall only apply to the extent that the 
            taxpayer with respect to whom the return information 
            relates provides written consent for such redisclosure to 
            the Secretary of Education.
            ``(E) Authorized person.--For purposes of this paragraph, 
        the term `authorized person' means, with respect to information 
        disclosed under subparagraph (A), (B), or (C), any person who--
                ``(i) is an officer, employee, or contractor, of the 
            Department of Education, and
                ``(ii) is specifically authorized and designated by the 
            Secretary of Education for purposes of such subparagraph 
            (applied separately with respect to each such 
            subparagraph).
            ``(F) Joint returns.--In the case of a joint return, any 
        disclosure authorized under subparagraph (A), (B), or (C) with 
        respect to an individual shall be treated for purposes of this 
        paragraph as applying with respect to the taxpayer.''.
    (b) Confidentiality of Return Information.--Section 6103(a)(3) of 
such Code is amended by inserting ``, (13)'' after ``(12)''.
    (c) Conforming Amendments.--
        (1) Section 6103(p)(3)(A) of such Code is amended by striking 
    ``(13)''.
        (2) Section 6103(p)(4) of such Code is amended by inserting ``, 
    (13)'' after ``(l)(10)'' each place it appears.
    (d) Effective Date.--The amendments made by this section shall 
apply to disclosures after the date of the enactment of this Act.
    (e) Requirement To Designate the Inspector General of the 
Department of Education as an Authorized Person.--The Secretary of 
Education shall authorize and designate the Inspector General of the 
Department of Education as an authorized person under subparagraph 
(E)(ii) of section 6103(l)(13) of the Internal Revenue Code of 1986 for 
purposes of subparagraphs (A), (B), and (C) of such section.
    (f) Report to Treasury.--The Secretary of Education shall annually 
submit a written report to the Secretary of the Treasury--
        (1) regarding redisclosures of return information under 
    subparagraph (D)(iii) of section 6103(l)(13) of the Internal 
    Revenue Code of 1986, including the number of such redisclosures; 
    and
        (2) regarding any unauthorized use, access, or disclosure of 
    return information disclosed under such section.
    (g) Report to Congress.--The Secretary of the Treasury (or the 
Secretary's designee) shall annually submit a written report to 
Congress regarding disclosures under section 6103(l)(13) of the 
Internal Revenue Code of 1986, including information provided to the 
Secretary under subsection (f).
SEC. 4. AUTOMATIC RECERTIFICATION OF INCOME.
    (a) Income-Contingent Repayment.--
        (1) In general.--Section 455(e) of the Higher Education Act of 
    1965 (20 U.S.C. 1087e(e)) is amended by adding at the end the 
    following:
        ``(8) Automatic recertification.--
            ``(A) In general.--The Secretary shall establish and 
        implement, with respect to any borrower described in 
        subparagraph (B), procedures to--
                ``(i) use return information disclosed under section 
            6103(l)(13) of the Internal Revenue Code of 1986, pursuant 
            to approval provided under section 494, to determine the 
            repayment obligation of the borrower without further action 
            by the borrower;
                ``(ii) allow the borrower (or the spouse of the 
            borrower), at any time, to opt out of disclosure under such 
            section 6103(l)(13) and instead provide such information as 
            the Secretary may require to determine the repayment 
            obligation of the borrower (or withdraw from the repayment 
            plan under this subsection); and
                ``(iii) provide the borrower with an opportunity to 
            update the return information so disclosed before the 
            determination of the repayment obligation of the borrower.
            ``(B) Applicability.--Subparagraph (A) shall apply to each 
        borrower of a loan made under this part who, on or after the 
        date on which the Secretary establishes procedures under such 
        subparagraph--
                ``(i) selects, or is required to repay such loan 
            pursuant to, an income-contingent repayment plan; or
                ``(ii) recertifies income or family size under such 
            plan.''.
        (2) Conforming amendment.--Section 455(e)(6) of the Higher 
    Education Act of 1965 (20 U.S.C. 1087e(e)(6)) is amended--
            (A) by striking ``including notification of such borrower'' 
        and all that follows through ``that if a borrower'' and 
        inserting ``including notification of such borrower, that if a 
        borrower''; and
            (B) by striking ``as determined using the information 
        described in subparagraph (A), or the alternative documentation 
        described in paragraph (3)''.
    (b) Income-Based Repayment.--Section 493C(c) of the Higher 
Education Act of 1965 (20 U.S.C. 1098e(c)) is amended--
        (1) by striking ``The Secretary shall establish'' and inserting 
    the following:
        ``(1) In general.--The Secretary shall establish''; and
        (2) by striking ``The Secretary shall consider'' and inserting 
    the following:
        ``(2) Procedures for eligibility.--The Secretary shall--
            ``(A) consider'';
        (3) by striking ``428C(b)(1)(E).'' and inserting the following: 
    ``428C(b)(1)(E); and
            ``(B) carry out, with respect to borrowers of any loan made 
        under part D (other than an excepted PLUS loan or excepted 
        consolidation loan), procedures for income-based repayment 
        plans that are equivalent to the procedures carried out under 
        section 455(e)(8) with respect to income-contingent repayment 
        plans.''.
SEC. 5. AUTOMATIC INCOME MONITORING PROCEDURES AFTER A TOTAL AND 
PERMANENT DISABILITY DISCHARGE.
    Section 437(a) of the Higher Education Act of 1965 (20 U.S.C. 
1087(a)) is amended by adding at the end the following:
        ``(3) Automatic income monitoring.--
            ``(A) In general.--The Secretary shall establish and 
        implement, with respect to any borrower described in 
        subparagraph (B), procedures to--
                ``(i) use return information disclosed under section 
            6103(l)(13) of the Internal Revenue Code of 1986, pursuant 
            to approval provided under section 494, to determine the 
            borrower's continued eligibility for the loan discharge 
            described in subparagraph (B);
                ``(ii) allow the borrower, at any time, to opt out of 
            disclosure under such section 6103(l)(13) and instead 
            provide such information as the Secretary may require to 
            determine the borrower's continued eligibility for such 
            loan discharge; and
                ``(iii) provide the borrower with an opportunity to 
            update the return information so disclosed before 
            determination of such borrower's continued eligibility for 
            such loan discharge.
            ``(B) Applicability.--Subparagraph (A) shall apply--
                ``(i) to each borrower of a loan that is discharged due 
            to the total and permanent disability (within the meaning 
            of this subsection) of the borrower; and
                ``(ii) during the period beginning on the date on which 
            such loan is so discharged and ending on the first day on 
            which such loan may no longer be reinstated.''.
SEC. 6. PROCEDURE AND REQUIREMENTS FOR REQUESTING TAX RETURN 
INFORMATION FROM THE INTERNAL REVENUE SERVICE.
    (a) In General.--Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1088 et seq.) is amended by adding at the end the 
following:
    ``SEC. 494. PROCEDURE AND REQUIREMENTS FOR REQUESTING TAX RETURN 
      INFORMATION FROM THE INTERNAL REVENUE SERVICE.
    ``(a) Notification and Approval Requirements.--
        ``(1) Federal student financial aid.--In the case of any 
    written or electronic application under section 483 by an 
    individual for Federal student financial aid under a program 
    authorized under subpart 1 of part A, part C, or part D, the 
    Secretary, with respect to such individual and any parent or spouse 
    whose financial information is required to be provided on such 
    application, shall--
            ``(A) notify such individuals that--
                ``(i) if such individuals provide approval under 
            subparagraph (B), the Secretary will have the authority to 
            request that the Secretary of the Treasury disclose return 
            information of such individuals to authorized persons (as 
            defined in section 6103(l)(13) of the Internal Revenue Code 
            of 1986) for the relevant purposes described in such 
            section; and
                ``(ii) the failure to provide such approval for such 
            disclosure will result in the Secretary being unable to 
            calculate eligibility for such aid to such individual; and
            ``(B) require, as a condition of eligibility for such aid, 
        that such individuals affirmatively approve the disclosure 
        described in subparagraph (A)(i).
        ``(2) Income-contingent and income-based repayment.--
            ``(A) New applicants.--In the case of any written or 
        electronic application by an individual for an income-
        contingent or income-based repayment plan for a loan under part 
        D, the Secretary, with respect to such individual and any 
        spouse of such individual, shall--
                ``(i) provide to such individuals the notification 
            described in paragraph (1)(A)(i);
                ``(ii) require, as a condition of eligibility for such 
            repayment plan, that such individuals--

                    ``(I) affirmatively approve the disclosure 
                described in paragraph (1)(A)(i) and agree that such 
                approval shall serve as an ongoing approval of such 
                disclosure until the date on which the individual 
                elects to opt out of such disclosure under section 
                455(e)(8) or the equivalent procedures established 
                under section 493C(c)(2)(B), as applicable; or
                    ``(II) provide such information as the Secretary 
                may require to confirm the eligibility of such 
                individual for such repayment plan.

            ``(B) Recertifications.--With respect to the first written 
        or electronic recertification (after the date of the enactment 
        of the FUTURE Act) of an individual's income or family size for 
        purposes of an income-contingent or income-based repayment plan 
        (entered into before the date of the enactment of the FUTURE 
        Act) for a loan under part D, the Secretary, with respect to 
        such individual and any spouse of such individual, shall meet 
        the requirements of clauses (i) and (ii) of subparagraph (A) 
        with respect to such recertification.
        ``(3) Total and permanent disability.--In the case of any 
    written or electronic application by an individual for a discharge 
    of a loan under this title based on total and permanent disability 
    (within the meaning of section 437(a)) that requires income 
    monitoring, the Secretary shall--
            ``(A) provide to such individual the notification described 
        in paragraph (1)(A)(i); and
            ``(B) require, as a condition of eligibility for such 
        discharge, that such individual--
                ``(i) affirmatively approve the disclosure described in 
            paragraph (1)(A)(i) and agree that such approval shall 
            serve as an ongoing approval of such disclosure until the 
            earlier of--

                    ``(I) the date on which the individual elects to 
                opt out of such disclosure under section 437(a)(3)(A); 
                or
                    ``(II) the first day on which such loan may no 
                longer be reinstated; or

                ``(ii) provide such information as the Secretary may 
            require to confirm the eligibility of such individual for 
            such discharge.
    ``(b) Limit on Authority.--The Secretary shall only have authority 
to request that the Secretary of the Treasury disclose return 
information under section 6103(l)(13) of the Internal Revenue Code of 
1986 with respect to an individual if the Secretary of Education has 
obtained approval under subsection (a) for such disclosure.''.
    (b) Conforming Amendment.--Section 484(q) of the Higher Education 
Act of 1965 (20 U.S.C. 1091(q)) is repealed.
SEC. 7. INCREASED FUNDING FOR FEDERAL PELL GRANTS.
    Section 401(b)(7)(A)(iv) of the Higher Education Act of 1965 (20 
U.S.C. 1070a(b)(7)(A)(iv)) is amended--
        (1) in subclause (X), by striking ``$1,430,000,000'' and 
    inserting ``$1,455,000,000''; and
        (2) in subclause (XI), by striking ``$1,145,000,000'' and 
    inserting ``$1,170,000,000''.
SEC. 8. REPORTS ON IMPLEMENTATION.
    (a) In General.--Not later than each specified date, the Secretary 
of Education and the Secretary of the Treasury shall issue joint 
reports to the Committees on Health, Education, Labor, and Pensions and 
Finance of the Senate and the Committees on Education and Labor and 
Ways and Means of the House of Representatives regarding the amendments 
made by this Act. Each such report shall include, as applicable--
        (1) an update on the status of implementation of the amendments 
    made by this Act;
        (2) an evaluation of how such implementation had affected the 
    processing of applications for Federal student financial aid, 
    applications for income-based repayment and income-contingent 
    repayment, and applications for discharge of loans under title IV 
    of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) based 
    on total and permanent disability; and
        (3) implementation issues and suggestions for potential 
    improvements.
    (b) Specified Date.--For purposes of subsection (a), the term 
``specified date'' means--
        (1) the date that is 90 days after the date of the enactment of 
    this Act;
        (2) the date that is 120 days after the first day that the 
    disclosure process established under section 6103(l)(13) of the 
    Internal Revenue Code of 1986, as amended by section 3(a) of this 
    Act, is operational and accessible to officers, employees, and 
    contractors of the Department of Education (as specifically 
    authorized and designated by the Secretary of Education); and
        (3) the date that is 1 year after the report date described in 
    paragraph (2).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.