[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1855 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 1855
To amend the Higher Education Act of 1965 to improve college access and
college completion for all students.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 13, 2019
Mr. Coons (for himself and Ms. Rosen) 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 improve college access and
college completion for all students.
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 ``Access, Success, and Persistence In
Reshaping Education Act of 2019'' or the ``ASPIRE Act''.
SEC. 2. IMPROVING COLLEGE ACCESS AND COMPLETION FOR ALL STUDENTS.
(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. 493E. IMPROVING COLLEGE ACCESS AND COMPLETION FOR ALL STUDENTS.
``(a) Definitions.--Except as otherwise provided in this section,
in this section:
``(1) Average student-related expenditure.--
``(A) In general.--The term `average student-
related expenditure' means, with respect to the most
recent fiscal year ending before the October of an
academic year, the total amount of an institution's
instructional expenditures, student services
expenditures, and the proportion of academic support
expenditures that goes towards instruction, divided by
the number of full-time equivalent students enrolled in
the institution for the academic year.
``(B) Instructional expenditures.--The term
`instructional expenditures'--
``(i) includes--
``(I) expenditures for the
colleges, schools, departments, and
other instructional divisions of the
institution and expenses for
departmental research and public
service that are not separately
budgeted;
``(II) general academic
instruction, occupational and
vocational instruction, community
education, preparatory and adult basic
education, and remedial and tutorial
instruction conducted by the teaching
faculty for the institution's students;
and
``(III) expenses for both credit
and non-credit activities;
``(ii) may include information technology
expenses related to instructional activities if
the institution separately budgets and expenses
information technology resources; and
``(iii) does not include expenses for
academic administration where the primary
function is administration.
``(C) Student services expenditures.--The term
`student services expenditures'--
``(i) includes expenses for admissions,
registrar activities, and activities whose
primary purpose is to contribute to the
emotional and physical well-being of students
and to their intellectual, cultural, and social
development outside the context of the formal
instructional program; and
``(ii) may include information technology
expenses related to student service activities
if the institution separately budgets and
expenses information technology resources,
otherwise these expenses are included in
institutional support.
``(D) Academic support expenditures.--The term
`academic support expenditures' includes--
``(i) expenses of activities and services
that support the institution's primary missions
of instruction, research, and public service,
including--
``(I) the retention, preservation,
and display of educational materials;
``(II) organized activities that
provide support services to the
academic functions of the institution;
``(III) media such as audiovisual
services;
``(IV) academic administration; and
``(V) formally organized and
separately budgeted academic personnel
development and course and curriculum
development expenses; and
``(ii) information technology expenses
related to academic support activities or, if
an institution does not separately budget and
expense information technology resources, the
costs associated with the three primary
programs shall be applied to this function and
the remainder to institutional support.
``(E) Full-time equivalent students enrolled.--The
term `full-time equivalent students enrolled' means the
number of full-time students enrolled, plus--
``(i) in the case of an institution of
higher education that is a public, 4-year
institution--
``(I) the number of part-time
undergraduate students enrolled
multiplied by 0.403543; and
``(II) the number of part-time
graduate students enrolled multiplied
by 0.361702;
``(ii) in the case of an institution of
higher education that is a private, nonprofit
or for profit, 4-year institution--
``(I) the number of part-time
undergraduate students enrolled
multiplied by 0.392857; and
``(II) the number of part-time
graduate students enrolled multiplied
by 0.382059;
``(iii) in the case of an institution of
higher education that is a public, 2-year
institution, the number of part-time
undergraduate students enrolled multiplied by
0.335737; and
``(iv) in the case of an institution of
higher education that is not described in
clause (i), (ii), or (iii), the number of part-
time undergraduate students enrolled multiplied
by 0.397058.
``(2) Institution of higher education.--The term
`institution of higher education' means an institution of
higher education (as defined in section 101(a)) or a
proprietary institution of higher education (as defined in
section 102(b))--
``(A) that predominately awards more bachelor's
degrees than associate's degrees and certificates; and
``(B) that enrolls not less than 30 first-time,
full-time, degree- or certificate-seeking undergraduate
students.
``(3) Low-income or working class student.--The term `low-
income or working class student' means a student who is
eligible to receive a Federal Pell Grant.
``(4) Moderate-income student.--The term `moderate-income
student' means a student who is eligible to receive a
subsidized Federal Direct Stafford Loan but not eligible to
receive a Federal Pell Grant.
``(5) Remedial course.--The term `remedial course' means a
course of study that is determined by the institution which
offers such course to be necessary to help a student be
prepared for the pursuit of a first undergraduate bachelor's
degree but does not count for credit toward the degree.
``(6) Underrepresented minority.--The term
`underrepresented minority' means Alaskan Native, Black (not of
Hispanic origin), Hispanic (including persons of Mexican,
Puerto Rican, Cuban, and Central or South American origin),
Native American, or Pacific Islander (including Native
Hawaiian) minority group.
``(b) Improving College Access.--
``(1) In general.--
``(A) Required participation.--In order for an
institution of higher education to participate in any
student financial assistance program under this title,
the institution shall participate in the improving
college access program under this subsection.
``(B) No condition on eligibility for participation
for ranking.--Eligibility to participate in any student
financial assistance program under this title shall not
be conditioned on an institution's position on the
ranking completed under this subsection.
``(2) Calculation of percentages of federal pell grant
recipients.--
``(A) In general.--For academic year 2020-2021 and
for each succeeding academic year, the Secretary shall
determine, for each institution of higher education,
the percentage of bachelor's degree-seeking students
who enrolled at the institution for the first-time in a
full-time capacity for the academic year who received a
Federal Pell Grant for such academic year.
``(B) Ranking.--
``(i) In general.--For academic year 2020-
2021 and for each succeeding academic year, the
Secretary shall rank the institutions according
to the percentages determined under
subparagraph (A).
``(ii) Trigger mark.--For academic year
2020-2021 and for each succeeding academic
year, the Secretary shall determine, based on
the rankings under this subparagraph, the
percentage, determined under subparagraph (A),
at which and above which marks the top 95
percent of those institutions ranked.
``(C) Safe harbor reached.--
``(i) Safe harbor mark.--For academic year
2020-2021, the Secretary shall determine, based
on the rankings under subparagraph (B)(i) for
such academic year, the percentage, determined
under subparagraph (A), at which and above
which marks the top 90 percent of those
institutions ranked.
``(ii) Comparison of trigger mark to safe
harbor mark.--If the trigger mark determined
under subparagraph (B)(ii) for an academic year
is at or above the safe harbor mark determined
under clause (i), no institution shall be
subject to the provisions of paragraph (3) for
such academic year.
``(3) Consequences of low ranking.--
``(A) Notification.--
``(i) In general.--Subject to paragraph
(2)(C)(ii), for academic year 2020-2021 and for
each succeeding academic year, the Secretary
shall notify each institution of higher
education that is in the bottom 5 percent of
those institutions ranked under paragraph
(2)(B)--
``(I) that the institution is in
such bottom 5 percent of those
institutions ranked;
``(II) of the trigger mark
described in paragraph (2)(B)(ii) that
such institution must meet or rise
above; and
``(III) that the institution has 90
days to appeal to the Secretary to be
removed from the bottom 5 percent of
those institutions ranked.
``(ii) Appeal.--An institution of higher
education that is in the bottom 5 percent of
those institutions ranked under paragraph
(2)(B) for an academic year may appeal to the
Secretary, within 90 days of the notification
under clause (i), to be removed from such
bottom 5 percent ranking if--
``(I) the Secretary's calculation
of its ranking is not accurate, and
that recalculation of such ranking
would raise the ranking of the
institution above the bottom 5 percent
of those institutions ranked; or
``(II) the institution's percentage
of all bachelor's degree-seeking
students enrolled at the institution
who received a Federal Pell Grant for
the academic year is sufficiently high,
as determined by the Secretary.
``(iii) Automatic removal.--An institution
of higher education that is in the bottom 5
percent of those institutions ranked under
paragraph (2)(B) for an academic year but whose
average percentage for the academic year and
the 2 preceding academic years of bachelor's
degree-seeking students who enrolled at the
institution for the first-time in a full-time
capacity for the academic year and the 2
preceding academic years who received a Federal
Pell Grant for the academic year and the 2
preceding academic years is at or above the
trigger mark described in paragraph (2)(B)(ii)
for the academic year, shall be automatically
removed from such bottom 5 percent ranking.
``(B) Plan.--An institution of higher education
that is in the bottom 5 percent of those institutions
ranked under paragraph (2)(B) for an academic year and
not removed under subparagraph (A) shall develop a
plan, not later than 1 year after the date of the
notification under subparagraph (A)(i) and in
consultation with the Secretary, to meet or rise above
the trigger mark described in paragraph (2)(B)(ii)
applicable for the academic year for which the
institution is in the bottom 5 percent of those
institutions ranked and not removed.
``(C) Calculation of average.--For each institution
of higher education that is in the bottom 5 percent of
those institutions ranked under paragraph (2)(B) for an
academic year and not removed under subparagraph (A),
the Secretary shall--
``(i) grant the institution a hold harmless
year for the academic year succeeding the
academic year for which the institution
receives notification under subparagraph
(A)(i); and
``(ii) determine the average percentage
over the 3 succeeding academic years following
the hold harmless academic year described in
clause (i) of bachelor's degree-seeking
students who enrolled at the institution for
the first-time in a full-time capacity for each
of such 3 succeeding academic years who
received a Federal Pell Grant for each of such
3 succeeding academic years.
``(D) Failure to improve.--
``(i) In general.--Except as provided in
clause (ii), if an institution of higher
education has an average percentage determined
under subparagraph (C)(ii) that is less than
the trigger mark described in paragraph
(2)(B)(ii) for the academic year for which the
institution is in the bottom 5 percent of those
institutions ranked under paragraph (2)(B) and
not removed under subparagraph (A) that
triggered such determination, the Secretary
shall impose on such institution a penalty
described in subparagraph (E).
``(ii) Delay of penalty.--
``(I) In general.--The Secretary
may delay imposing a penalty described
in subparagraph (E) with respect to an
institution that has an average
percentage determined under
subparagraph (C)(ii) that is less than
the trigger mark described in paragraph
(2)(B)(ii) for the academic year for
which the institution is in the bottom
5 percent of those institutions ranked
under paragraph (2)(B) and not removed
under subparagraph (A) that triggered
such determination, but whose
percentage determined for the most
recent academic year is at or above
such trigger mark.
``(II) Period of delay.--The
Secretary may delay imposing a penalty
under subclause (I) for a period of not
more than 2 years.
``(III) New 3-year average.--With
respect to an institution for which the
Secretary delays imposing a penalty
under this clause for a period of not
more than 2 years, the Secretary, at
the end of such delay period, shall
determine the average percentage over
the 3 preceding years of bachelor's
degree-seeking students who enrolled at
the institution for the first-time in a
full-time capacity for each of such 3
preceding academic years and who
received a Federal Pell Grant for each
of such 3 preceding academic years. If
the institution has an average
percentage that is less than the
trigger mark described in paragraph
(2)(B)(ii) for the academic year for
which the institution is in the bottom
5 percent of those institutions ranked
under paragraph (2)(B) and not removed
under subparagraph (A) that triggered
such determination, the Secretary shall
impose on such institution a penalty
described in subparagraph (E).
``(E) Penalties.--
``(i) In general.--The Secretary shall
impose a penalty under this paragraph in an
amount determined under this subparagraph.
``(ii) Amount of penalty.--
``(I) In general.--The penalty to
be imposed under this subparagraph with
respect to an institution shall be a
fee-per-student penalty, in which the
number of additional students
determined with respect to such
institution under subclause (II) for an
academic year is multiplied by the
institution's average student-related
expenditure for the academic year.
``(II) Number of additional
students to be determined.--With
respect to an institution of higher
education that is subject to the
penalty under this subparagraph, the
Secretary shall determine the total
number of additional students the
institution would need to enroll over 3
years as Federal Pell Grant recipients
to meet the trigger mark described in
paragraph (2)(B)(ii). Such number shall
be calculated by determining the
percentage equal to subtracting the
average percentage determined under
subparagraph (C)(ii) from the trigger
mark described in paragraph (2)(B)(ii)
for the academic year for which the
institution is in the bottom 5 percent
of those institutions ranked under
paragraph (2)(B) and not removed under
subparagraph (A) that triggered such
determination, and multiplying such
determined percentage by the number of
bachelor's degree-seeking students who
enrolled at the institution for the
first-time in a full-time capacity for
an academic year over the 3 preceding
academic years.
``(iii) Collection of penalty fees.--The
Secretary shall--
``(I) collect penalty fees imposed
under this paragraph not later than 1
year after such penalty is imposed; and
``(II) use the fees collected under
subclause (I) to fund the completion
improvement program under subsection
(d) and the completion bonus program
under subsection (e).
``(iv) Prohibition on use of institutional
need-based grant aid to pay fees.--An
institution of higher education that is subject
to a penalty under this paragraph may not, in
order to pay such penalty fee--
``(I) reduce the amount of
institutional need-based grant aid
awarded to students to attend the
institution; or
``(II) increase tuition or fees.
``(F) Appeals.--
``(i) In general.--An institution of higher
education that is subject to a penalty under
this paragraph may appeal the decision to
impose such penalty or the amount of the
penalty to the Secretary.
``(ii) Content of appeal.--The appeals
process shall permit the institution to
demonstrate, to the satisfaction of the
Secretary--
``(I) that there was a
miscalculation of the penalty amount;
or
``(II) that there is some
unforeseen and extreme circumstance
that should warrant a waiver from such
penalty or a reduction in the amount of
such penalty.
``(c) Improving Completion.--
``(1) In general.--
``(A) In general.--In order for an institution of
higher education to participate in any student
financial assistance program under this title, the
institution shall participate in the improving college
completion program under this subsection.
``(B) Election by public or other nonprofit
institutions.--An institution of higher education that
is a public or other nonprofit institution of higher
education may elect for the Secretary not to impose on
such institution a penalty described in paragraph
(3)(E), and the Secretary shall be bound by such
election. An institution that makes such election shall
be deemed to have participated in the improving college
completion program for the purposes of satisfying the
requirement of paragraph (A) and shall not be eligible
to receive a grant under the completion improvement
program under subsection (d) or the completion bonus
program under subsection (e).
``(C) Definition of institution of higher
education.--In this subsection, the term `institution
of higher education' means an institution of higher
education (as defined in section 101(a)) or a
proprietary institution of higher education (as defined
in section 102(b))--
``(i) that predominately awards more
bachelor's degrees than associate's degrees and
certificates; and
``(ii) that enrolls not less than 30 first-
time, full-time bachelor's degree- or
equivalent-degree-seeking undergraduate
students.
``(D) No condition on eligibility for participation
for ranking.--Eligibility to participate in any student
financial assistance program under this title shall not
be conditioned on an institution's position on the
ranking completed under this subsection.
``(2) Calculation of percentages of completion.--
``(A) In general.--For academic year 2020-2021 and
for each succeeding academic year, the Secretary shall
determine, for each institution of higher education
that participates in any program under this title, the
percentage of first-time, full-time bachelor's degree-
seeking students who enrolled at the institution who
graduate within 6 years.
``(B) Ranking.--
``(i) In general.--For academic year 2020-
2021 and for each succeeding academic year, the
Secretary shall rank the institutions according
to the percentages determined under
subparagraph (A).
``(ii) Trigger mark.--For academic year
2020-2021 and for each succeeding academic
year, the Secretary shall determine, based on
the rankings under clause (i), the percentage,
determined under subparagraph (A), at which and
above which marks the top 95 percent of the
institutions ranked.
``(iii) Rankings for peer groups of
institutions.--
``(I) In general.--For academic
year 2020-2021 and for each succeeding
academic year, the Secretary shall rank
the institutions according to the
percentages determined under
subparagraph (A) in each peer group of
institutions described in subclause
(II).
``(II) Peer groups.--For academic
year 2020-2021 and for each succeeding
academic year, the Secretary shall
establish peer groups of institutions.
Each peer group shall include
approximately 10 to 15, but not less
than 3, institutions that are included
in such group based on similar
institutional characteristics. Such
characteristics shall include the
following:
``(aa) The percentage of
first-time, full-time students
enrolled at the institution who
receive a Federal Pell Grant.
``(bb) The average SAT or
ACT score of first-time, full-
time students enrolled at the
institution.
``(cc) The average high
school GPA of first-time, full-
time students enrolled at the
institution.
``(dd) The institution's
average student-related
expenditure.
``(ee) Other
characteristics that the
Secretary determines are
appropriate.
``(III) Peer group adjustment.--To
provide for fair comparisons among
institutions serving different student
populations and institutional
resources, an institution that is in
the bottom 5 percent of the
institutions ranked under clause (i)
but in the top two-thirds of
institutions ranked in the
institution's peer group, as determined
under subclause (II), shall be removed
from the bottom 5 percent of the
institutions ranked under clause (i).
The Secretary shall not impose on such
an institution a penalty described in
paragraph (3)(E).
``(C) Safe harbor reached.--
``(i) Safe harbor mark.--For academic year
2020-2021, the Secretary shall determine, based
on the rankings under subparagraph (B)(i) for
such academic year, the percentage, determined
under subparagraph (A), at which and above
which marks the top 90 percent of those
institutions ranked.
``(ii) Comparison of trigger mark to safe
harbor mark.--If the trigger mark determined
under subparagraph (B)(ii) for an academic year
is at or above the safe harbor mark determined
under clause (i), no institution shall be
subject to the provisions of paragraph (3) for
such academic year.
``(3) Consequences of low ranking.--
``(A) In general.--
``(i) In general.--Subject to paragraph
(2)(C)(ii), for academic year 2020-2021 and for
each succeeding academic year, the Secretary
shall notify each institution of higher
education that is in the bottom 5 percent of
those institutions ranked under paragraph
(2)(B)(i) (and not removed under paragraph
(2)(B)(iii)(III))--
``(I) that the institution is in
such bottom 5 percent of those
institutions ranked for the academic
year;
``(II) of the applicable trigger
mark described in paragraph (2)(B)(ii)
that such institution must meet or rise
above; and
``(III) that the institution has 90
days to appeal to the Secretary to be
removed from the bottom 5 percent of
those institutions ranked.
``(ii) Appeal.--An institution of higher
education that is in the bottom 5 percent of
those institutions ranked under paragraph
(2)(B)(i) (and not removed under paragraph
(2)(B)(iii)(III)) for an academic year may
appeal to the Secretary, within 90 days of the
notification under clause (i), to be removed
from such bottom 5 percent ranking if the
Secretary's calculation of its ranking is not
accurate, and that recalculation of such
ranking would raise the ranking of the
institution above the bottom 5 percent of those
institutions ranked.
``(iii) Automatic removal.--An institution
of higher education that is in the bottom 5
percent of those institutions ranked under
paragraph (2)(B)(i) (and not removed under
paragraph (2)(B)(iii)(III)) for an academic
year but whose average percentage for the
academic year and the 2 preceding academic
years of first-time, full-time bachelor's
degree-seeking students who enrolled at the
institution who graduate within 6 years is at
or above the trigger mark described in
paragraph (2)(B)(ii) for the academic year,
shall be automatically removed from such bottom
5 percent ranking.
``(B) Plan.--For academic year 2020-2021 and for
each fifth succeeding academic year, an institution of
higher education that is in the bottom 5 percent of
those institutions ranked under paragraph (2)(B) and
not removed under paragraph (2)(B) or subparagraph (A)
shall develop a plan, not later than 1 year after the
date of the notification under subparagraph (A)(i) and
in consultation with the Secretary, to meet or rise
above the trigger mark described in paragraph
(2)(B)(ii), applicable for the academic year for which
this institution is in the bottom 5 percent of those
institutions ranked under paragraph (2)(B) and not
removed under paragraph (2)(B) or subparagraph (A) that
triggered such determination.
``(C) Calculation of average.--
``(i) In general.--For academic year 2020-
2021 and for each fifth succeeding academic
year, for each institution of higher education
that is in the bottom 5 percent of those
institutions ranked under paragraph (2)(B) and
not removed under paragraph (2)(B) or
subparagraph (A) for an academic year, the
Secretary shall--
``(I) grant the institution 2 hold
harmless years for the academic years
succeeding the academic year for which
the institution receives notification
under subparagraph (A)(i); and
``(II) determine the average
percentage over the 3 succeeding
academic years (as determined under
clause (ii)) following the hold
harmless academic years described in
clause (i) of first-time, full-time
bachelor's degree-seeking students who
enrolled at the institution who
graduate within 6 years.
``(ii) Under-resourced years.--In
determining the 3 succeeding academic years
under clause (i)(II), the Secretary shall skip
any academic year that succeeds an academic
year for which less than $25,000,000 is
collected under subsection (b)(3)(E).
``(D) Failure to improve.--
``(i) In general.--Except as provided in
clause (ii) or paragraph (1)(B), if an
institution of higher education has an average
percentage determined under subparagraph
(C)(i)(II) that is less than the applicable
trigger mark described in paragraph (2)(B)(ii),
the Secretary shall impose on such institution
a penalty described in subparagraph (E).
``(ii) Delay of penalty.--
``(I) In general.--The Secretary
may delay imposing a penalty described
in subparagraph (E) with respect to an
institution that has an average
percentage determined under
subparagraph (C)(i)(II) that is less
than the applicable trigger mark
described in paragraph (2)(B)(ii), but
whose percentage determined for the
most recent academic year is at or
above such trigger mark.
``(II) Period of delay.--The
Secretary may delay imposing a penalty
under subclause (I) for a period of not
more than 2 years.
``(III) New average.--With respect
to an institution for which the
Secretary delays imposing a penalty
under this clause for a period of not
more than 2 years, the Secretary, at
the end of such delay period, shall
determine the average percentage over
the 3 preceding years of first-time,
full-time bachelor's degree-seeking
students who enrolled at the
institution who graduate within 6
years. If the institution has an
average percentage that is less than
the trigger mark described in paragraph
(2)(B)(ii), the Secretary shall impose
on such institution a penalty described
in subparagraph (E).
``(E) Penalties.--
``(i) First penalty year.--
``(I) In general.--Beginning with
the fifth academic year after which
penalty fees are collected under
subsection (b)(3)(E), an institution of
higher education that is subject to a
penalty under this paragraph--
``(aa) that is a
proprietary institution of
higher education (as defined in
section 102(b)), shall pay to
the Secretary a $1,000,000
penalty; and
``(bb) that is not a
proprietary institution of
higher education (as defined in
section 102(b)), shall pay to
the Secretary for an academic
year an amount equal to 25
percent of the total amount of
funds made available under
subsection (d) to the
institution during the 4
academic years preceding the
academic year for which the
penalty is due under this
paragraph.
``(II) Use of penalties.--The
Secretary shall use the penalty fees
under this clause to fund the
completion improvement program under
subsection (d) and the completion bonus
program under subsection (e).
``(ii) Second penalty year.--One year after
the first academic year for which an
institution of higher education that is not a
proprietary institution of higher education (as
defined in section 102(b)) pays a penalty under
clause (i)(I)(bb), the Secretary shall
determine the average percentage for such year
after such first academic year and the 2
preceding academic years of first-time, full-
time bachelor's degree-seeking students who
enrolled at the institution who graduate within
6 years. If such average percentage is less
than the trigger mark described in paragraph
(2)(B)(ii) for such year after such first
academic year, the institution of higher
education shall pay to the Secretary for such
year after such first academic year an amount
equal to 40 percent of the total amount of
funds made available under subsection (d) to
the institution during the 5 academic years
preceding the academic year for which the
penalty is due under this clause. The Secretary
shall use such penalty fees to fund the
completion improvement program under subsection
(d) and the completion bonus program under
subsection (e).
``(iii) Third penalty year.--Two years
after the first academic year for which an
institution of higher education that is not a
proprietary institution of higher education (as
defined in section 102(b)) pays a penalty under
clause (i)(I)(bb), the Secretary shall
determine the average percentage for such
second year after such first academic year and
the 2 preceding academic years of first-time,
full-time bachelor's degree-seeking students
who enrolled at the institution who graduate
within 6 years. If such average percentage is
less than the trigger mark described in
paragraph (2)(B)(ii) for such second year after
such first academic year, the institution of
higher education shall pay to the Secretary for
such second year after such first academic year
an amount equal to 50 percent of the total
amount of funds made available under subsection
(d) to the institution during the 6 academic
years preceding the academic year for which the
penalty is due under this clause. The Secretary
shall use such penalty fees to fund the
completion improvement program under subsection
(d) and the completion bonus program under
subsection (e).
``(iv) Prohibitions.--An institution of
higher education that is subject to a penalty
under this subparagraph--
``(I) shall ensure that students
enrolled at the institution receive the
full amount of funding under this title
they would otherwise have received had
the institution not been subject to
such penalty; and
``(II) may not, in order to pay for
the penalty fee--
``(aa) reduce the amount of
institutional need-based grant
aid awarded to students to
attend the institution; and
``(bb) raise tuition or
fees.
``(v) Waiver.--The Secretary may waive or
reduce a penalty under this subparagraph if the
Secretary determines such a waiver is necessary
to avoid extreme hardship for the students
enrolled at the institution of higher education
on which the penalty would be imposed.
``(vi) Payment plan.--The Secretary may
allow an institution of higher education that
owes a penalty under this subparagraph to enter
into a payment plan to pay such penalty amount.
``(F) Appeals.--
``(i) In general.--An institution of higher
education that is subject to a penalty under
this paragraph may appeal the decision to
impose such penalty to the Secretary.
``(ii) Content of appeal.--The appeals
process shall permit the institution to
demonstrate, to the satisfaction of the
Secretary that there is some unforeseen and
extreme circumstance that should warrant a
waiver from such penalty, a reduction in the
amount of such penalty, or removal of the
institution from the bottom 5 percent of those
institutions ranked under paragraph (2)(B).
``(d) Completion Improvement Program.--
``(1) In general.--From funds available under paragraph
(5), the Secretary shall establish a completion improvement
program to award grants to eligible institutions of higher
education to support reforms to improve completion rates.
``(2) Eligible institutions.--An institution of higher
education is eligible to receive a grant under this subsection
if the institution--
``(A) is a public or other nonprofit institution of
higher education that is in the bottom 5 percent of
those institutions ranked under subsection (c)(2)(B);
``(B) has not been removed from the bottom 5
percent of those institutions ranked pursuant to
paragraph (2)(B)(iii)(III) or (3)(A) of subsection (c);
and
``(C) has not elected to be exempt under subsection
(c)(1)(B).
``(3) Determination of grant amount.--
``(A) In general.--In awarding grants under this
subsection, the Secretary shall determine a grant
amount for each eligible institution according to the
formula under subparagraph (B).
``(B) Grant amount formula.--
``(i) In general.--Except as provided in
clause (iii), the grant amount for an eligible
institution described in paragraph (2) for a
fiscal year shall be equal to the Pell weight
of such institution for the fiscal year,
determined under clause (ii), multiplied by the
amount available under paragraph (5) for such
fiscal year.
``(ii) Pell weight.--
``(I) In general.--The Pell weight
of an eligible institution for a fiscal
year shall be equal to a percentage
that is determined by dividing the
institution's Pell enrollment
determined under subclause (II) for the
fiscal year by the total Pell
enrollment determined under subclause
(III) for the fiscal year.
``(II) Institution's pell
enrollment.--An eligible institution's
Pell enrollment for a fiscal year shall
be equal to the percentage of
bachelor's degree-seeking students
enrolled at the institution for the
academic year that ended immediately
preceding such fiscal year who received
a Federal Pell Grant for such academic
year.
``(III) Total pell enrollment.--The
total Pell enrollment for a fiscal year
shall be equal to the sum of the
percentages of bachelor's degree-
seeking students enrolled at each
eligible institution, described in
paragraph (2), for the academic year
that ended immediately preceding such
fiscal year who received a Federal Pell
Grant for such academic year.
``(iii) Maximum grant amount.--The maximum
grant amount for an eligible institution
described in paragraph (2) for a fiscal year
shall be $2,000,000. An eligible institution
may choose to receive a grant amount that is
less than $2,000,000. Any amounts available
under paragraph (5) for such fiscal year that
are remaining after awarding grants in
accordance with this subparagraph shall be used
to carry out the completion bonus program under
subsection (e).
``(4) Use of funds.--An institution of higher education
that receives a grant under this subsection shall use the grant
funds for reforms and practices that are part of the
improvement plan of the institution, as described under
subsection (c)(3)(B)(i), which may include the following:
``(A) Increasing funds available for Federal Work-
Study Programs for undergraduate students.
``(B) Increasing need-based institutional aid to
students who are eligible for Federal Pell Grants.
``(C) Enhancing academic advising and student
support services.
``(D) Expanding accelerated learning opportunities.
``(E) Improving remedial course offerings.
``(F) Data- and technology-driven efforts to
increase college completion rates.
``(G) Enhancing regular and proactive career
advising and loan counseling services, including post-
enrollment services.
``(H) Efforts to close completion gaps--
``(i) between non-low-income or working
class students and low-income or working class
students; and
``(ii) between non-underrepresented
minority students and underrepresented minority
students.
``(5) Available funds.--Funds shall be available to carry
out this subsection from the penalty fees collected under
subsections (b)(3)(E) and (c)(3)(E).
``(e) Completion Bonus Program.--
``(1) In general.--From funds available under paragraph
(5), the Secretary shall establish a completion bonus program
to award grants on a competitive basis to eligible institutions
of higher education to support reforms to improve completion
rates.
``(2) Eligible institutions.--An institution of higher
education is eligible to receive a grant under this subsection
if the institution--
``(A) is not in the bottom 5 percent of those
institutions ranked under subsection (c)(2)(B); and
``(B) is not in the bottom 5 percent of those
institutions ranked under subsection (b)(2)(B).
``(3) Application and priority.--
``(A) Application.--An eligible institution that
desires a grant under this subsection shall submit an
application to the Secretary at such time, in such
manner, and containing such information as the
Secretary may require.
``(B) Consideration and priority.--In awarding
grants under this subsection, the Secretary--
``(i) may consider an eligible
institution's affordability, student loan
repayment rate, and other factors; and
``(ii) shall give priority to an eligible
institution that is a part B institution (as
defined in section 322) or a minority-serving
institution (as described in section 371(a)).
``(4) Use of funds.--An eligible institution that receives
a grant under this subsection shall use the grant funds for
reforms and practices to improve completion rates, which may
include the following:
``(A) Increasing funds available for Federal Work-
Study Programs for undergraduate students.
``(B) Increasing need-based institutional aid to
students who are eligible for Federal Pell Grants.
``(C) Enhancing academic advising and student
support services.
``(D) Expanding accelerated learning opportunities.
``(E) Improving remedial course offerings.
``(F) Data- and technology-driven efforts to
increase college completion rates.
``(G) Enhancing regular and proactive career
advising and loan counseling services, including post-
enrollment services.
``(H) Efforts to close completion gaps--
``(i) between non-low-income or working
class students and low-income or working class
students; and
``(ii) between non-underrepresented
minority students and underrepresented minority
students.
``(I) Enhancing the quality of the institution's
academic programs.
``(5) Available funds.--Funds shall be available to carry
out this subsection from funds from the penalty fees collected
under subsections (b)(3)(E) and (c)(3)(E) that are remaining
after grants are awarded for the completion improvement program
under subsection (d).
``(f) Non-Financial Reward Bonus Program.--
``(1) In general.--The Secretary shall award non-financial
rewards to institutions of higher education that have a proven
record of making college more affordable and increasing college
access and success for low-income or working class students and
moderate-income students.
``(2) Institutional eligibility.--An institution of higher
education is eligible for a non-financial reward under this
subsection for an academic year if--
``(A) the percentage of first-time, full-time
bachelor's degree-seeking students who enrolled at the
institution for the academic year who received a
Federal Pell Grant for such academic year falls within
the top 50 percent of ranked institutions, as
determined by the Secretary for the academic year;
``(B) the percentage of first-time, full-time
bachelor's degree-seeking students who enrolled at the
institution who graduate within 6 years falls within
the top 25 percent of ranked institutions, as
determined by the Secretary for the academic year; and
``(C) the institution is not under Federal
investigation for a sanction for an academic or
financial irregularity.
``(3) Applications.--An institution of higher education
that desires to receive a non-financial reward under this
subsection shall submit an application to the Secretary at such
time, in such manner, and containing such information as the
Secretary may require.
``(4) Priority.--Priority in awarding non-financial rewards
under this subsection shall go to institutions of higher
education that have small or diminishing gaps in the completion
rates--
``(A) between non-low-income or working class
students and low-income or working class students; and
``(B) between non-underrepresented minority
students and underrepresented minority students.
``(5) Non-financial rewards.--Non-financial rewards under
this subsection may include the following:
``(A) Reporting less frequently and avoiding
duplicative reporting requirements.
``(B) Extra points in Department grant competitions
for which institutions of higher education are eligible
entities.
``(C) Waiving the multiple disbursement rule or
disbursement delays.
``(D) Preferable status for experimental sites.
``(g) Best Practices.--The Secretary shall establish a publicly
available electronic database identifying best practices--
``(1) of institutions of higher education that were in the
bottom 5 percent of those institutions ranked under the
improving college access program under subsection (b) or the
improving college completion program under subsection (c) for
academic year 2017-2018 or for any succeeding academic year and
that have improved their ranking;
``(2) of eligible institutions of higher education awarded
grants under the completion bonus program under subsection (e)
to support reforms to improve completion rates; and
``(3) that the Secretary has determined in carrying out
this section.
``(h) Accountability Rule of Construction.--Nothing in this section
shall be construed to affect accountability provisions under other
sources of law.
``(i) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be
necessary.''.
(b) Report to Congress.--Not later than 2 years after the date of
enactment of this Act, the Secretary of Education shall submit a report
to Congress that provides recommendations on ways to expand section
493E of the Higher Education Act of 1965, as added by subsection (a),
to institutions with predominantly associate's-degree seeking students,
as well as other institutions of higher education not covered by such
section.
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