[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.