[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2054 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                S. 2054

 To amend the Higher Education Act of 1965 to strengthen Federal-State 
                partnerships in postsecondary education.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 15, 2021

 Mr. Reed (for himself and Ms. Collins) 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 strengthen Federal-State 
                partnerships in postsecondary education.

    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 ``Partnerships for Affordability and 
Student Success Act''.

SEC. 2. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.

    Section 137 of the Higher Education Act of 1965 (20 U.S.C. 1015f) 
is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Maintenance of Effort Required.--For the academic year 
beginning on July 1, 2021, and for each of the 4 succeeding academic 
years, a State shall--
            ``(1) maintain State support for institutions of higher 
        education (not including support for capital projects or 
        research and development, or tuition and fees paid by students) 
        at a level that is equal to or greater than the average level 
        of such support for the 3 most recent academic years for which 
        satisfactory data are available; and
            ``(2) maintain State support for student financial aid for 
        paying costs associated with postsecondary education at a level 
        that is equal to or greater than the average level of such 
        support for the 3 most recent academic years for which 
        satisfactory data are available.'';
            (2) by striking subsection (c) and inserting the following:
    ``(c) Waiver.--
            ``(1) In general.--The Secretary shall waive the 
        requirements of subsection (a) if the Secretary determines that 
        such a waiver would be appropriate due to exceptional or 
        uncontrollable circumstances, such as a natural disaster or a 
        precipitous decline in the financial resources of a State or 
        State educational agency, as appropriate.
            ``(2) Consultation.--The Secretary shall consult with the 
        States in developing the criteria and procedures for reviewing 
        waiver requests.
            ``(3) Timeline.--Not later than 120 days after the date of 
        enactment of the Partnerships for Affordability and Student 
        Success Act, the Secretary shall publish the criteria and 
        procedures for reviewing waiver requests under this 
        subsection.''; and
            (3) by striking subsection (d).

SEC. 3. FEDERAL AND STATE PARTNERSHIPS FOR COLLEGE ACCESS, 
              AFFORDABILITY, AND COMPLETION.

    Subpart 4 of part A of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070c et seq.) is amended to read as follows:

    ``Subpart 4--Federal and State Partnerships for College Access, 
                     Affordability, and Completion

``SEC. 415A. PURPOSE.

    ``It is the purpose of this subpart for the Secretary to make 
incentive grants to States to assist States in--
            ``(1) providing grants to eligible students attending 
        institutions of higher education or participating in programs 
        of study abroad that are approved for credit by institutions of 
        higher education at which such students are enrolled;
            ``(2) reducing the cost of attendance at public 
        institutions of higher education;
            ``(3) providing subgrants to eligible institutions or 
        consortia of eligible institutions--
                    ``(A) to improve student outcomes, such as 
                completion and transfer rates, attainment of 
                postsecondary degrees and credentials, and workforce 
                outcomes for graduates; and
                    ``(B) to develop and implement practices that 
                result in reduced costs for students; and
            ``(4) providing public accountability and consumer 
        information on the performance of institutions of higher 
        education operating within the State.

``SEC. 415B. STATE ELIGIBILITY; ELIGIBLE INSTITUTIONS.

    ``(a) Incentive Grants.--The Secretary shall award incentive 
grants, in accordance with the provisions of this subpart, to States to 
pay the Federal share of the cost of carrying out the activities 
described in paragraphs (1) through (3) of section 415A. The incentive 
grant shall consist of the allotment determined for the State under 
section 415C.
    ``(b) State Eligibility.--In order to be eligible to receive an 
incentive grant under this subpart, a State shall enter into an 
agreement with the Secretary. The agreement shall contain the following 
assurances:
            ``(1) Federal funds received by the State under this 
        subpart will supplement and not supplant other Federal and 
        State funds otherwise available to carry out activities 
        described in this subpart.
            ``(2) The State will maintain its commitment to affordable 
        higher education as described in section 137.
            ``(3) The State will fulfill its role in program integrity 
        under section 495.
            ``(4) The State or a State-designated entity has or will 
        develop a comprehensive plan for public postsecondary education 
        that addresses the following:
                    ``(A) Measurable goals for student outcomes, 
                including enrollment, completion, and attainment of 
                postsecondary degrees and credentials.
                    ``(B) Measurable goals for college affordability in 
                the State.
                    ``(C) Alignment of such plan with the economic 
                development plans that the State may have, including 
                the unified State plan submitted under section 102 of 
                the Workforce Innovation and Opportunity Act.
                    ``(D) Alignment of such plan with the elementary 
                and secondary education plan for the State.
                    ``(E) The postsecondary educational needs of 
                unserved and underserved individuals within the State, 
                including individuals beyond traditional college age 
                and students attending part time.
            ``(5) The State provides for direct, equitable, and active 
        participation by representatives of institutions of higher 
        education, including the voluntary participation of private, 
        nonprofit institutions of higher education, and other 
        stakeholders in the comprehensive planning process.
    ``(c) Eligible Institutions.--In this subpart, the term `eligible 
institution' means--
            ``(1) an institution of higher education, as defined in 
        section 101(a);
            ``(2) an institution of higher education, as defined in 
        section 101(a), in partnership with--
                    ``(A) a nonprofit or community-based organization 
                that has demonstrated success in improving student 
                outcomes in postsecondary education; or
                    ``(B) a local workforce investment board; or
            ``(3) a consortium of institutions of higher education, as 
        defined in section 101(a).

``SEC. 415C. ALLOTMENT AMONG STATES.

    ``(a) Allotment Based on Number of Eligible Students in 
Attendance.--
            ``(1) In general.--Except as provided in subsection (b), 
        from the sums appropriated under section 415H for a fiscal 
        year, the Secretary shall allot to each eligible State for such 
        fiscal year an amount equal to the sum of--
                    ``(A) an amount that bears the same relationship to 
                50 percent of the amount appropriated under section 
                415H for such fiscal year as the number of residents in 
                the State aged 5 through 17 who are living below the 
                poverty line applicable to the resident's family size 
                (as determined under section 673(2) of the Community 
                Services Block Grant Act (42 U.S.C. 9902)) bears to the 
                total number of such residents in all States; and
                    ``(B) an amount that bears the same relationship to 
                50 percent of the amount appropriated under section 
                415H for such fiscal year as the number of residents in 
                the State aged 25 and older who have not attained a 
                postsecondary degree or credential (as determined by 
                the American Community Survey) bears to the total 
                number of such residents in all States.
            ``(2) Data.--The Secretary shall calculate such ratio based 
        on data for the most recent year for which satisfactory data 
        are available.
    ``(b) Minimum Allotment.--The amount of any eligible State's 
allotment under subsection (a) for any fiscal year may not be less than 
1 percent of the sums appropriated under section 415H for such year.
    ``(c) Reallotment.--The amount of any State's allotment under 
subsection (a) for any fiscal year which the Secretary determines will 
not be required for such fiscal year for the Federal-State partnership 
program of that State shall be available for reallotment from time to 
time, on such dates during such year as the Secretary may fix, to other 
States in proportion to the original allotments to such States under 
such subsection for such year, but with such proportionate amount for 
any of such States being reduced to the extent it exceeds the sum the 
Secretary estimates such State needs and will be able to use for such 
year for carrying out the State plan. The total of such reductions 
shall be similarly reallotted among the States whose proportionate 
amounts were not so reduced.
    ``(d) Allotments Subject to Compliance.--The Secretary shall make 
payments for incentive grants under this subpart only to States that 
continue to meet the requirements of this subpart.

``SEC. 415D. APPLICATIONS.

    ``(a) In General.--In order to receive an incentive grant under 
this subpart, the State agency with jurisdiction over higher education, 
or another agency or entity designated by the Governor or chief 
executive of the State to administer the program under this subpart, 
shall submit an application to the Secretary at such time, in such 
manner, and accompanied by such information as the Secretary may 
require.
    ``(b) Content of Application.--An application submitted under 
subsection (a) shall contain--
            ``(1) a description of how grant funds will assist the 
        State in meeting its goals for student outcomes, including 
        enrollment, completion, and attainment of postsecondary degrees 
        and credentials;
            ``(2) a description of how the grant funds will assist the 
        State in meeting its goals for college affordability, including 
        any measures to minimize tuition costs at public institutions 
        of higher education and measures to increase the availability 
        of need-based student aid;
            ``(3) a description of how grant funds will assist the 
        State in meeting the postsecondary needs of underrepresented or 
        underserved populations in the State, including individuals 
        beyond traditional college age and students attending part 
        time;
            ``(4) a description of how the State's comprehensive plan 
        for public higher education is aligned with the workforce and 
        economic development plans of the State;
            ``(5) a description of the process the State will use to 
        make subgrants to eligible institutions or consortia of 
        eligible institutions;
            ``(6) a description of how the State will evaluate the 
        effectiveness of such subgrants and how the State will 
        disseminate information on promising practices developed as a 
        result of such subgrants;
            ``(7) a description of how the State will make publicly 
        available an annual report on the progress in meeting State 
        goals for public postsecondary education; and
            ``(8) a description of the stakeholder consultation, 
        including efforts to engage the voluntary participation of 
        private, nonprofit institutions, carried out in the development 
        of the application.
    ``(c) Approval.--
            ``(1) In general.--An application submitted under 
        subsection (a) shall be subject to the approval of Secretary.
            ``(2) Timeline.--An application submitted under subsection 
        (a) shall be considered to be approved at the end of the 90-day 
        period beginning on the day the application is submitted, 
        unless the Secretary makes a written determination, during the 
        90-day period, that the application is inconsistent with the 
        provisions of this subpart.

``SEC. 415E. PAYMENT OF FEDERAL SHARE OF GRANTS.

    ``(a) In General.--
            ``(1) Distribution.--A State awarded an incentive grant 
        under this subpart--
                    ``(A) shall use grant funds to award student 
                grants; and
                    ``(B) may use grant funds to award subgrants to 
                eligible institutions.
            ``(2) Grants to students.--A State awarded an incentive 
        grant under this subpart shall establish a program to award 
        grants to students that complies with the following:
                    ``(A) The program is administered by a single State 
                agency.
                    ``(B) The program provides that an institution of 
                higher education that had a student who received funds 
                under this subpart at any time beginning on July 1, 
                2010, through the day before the date of enactment of 
                the Partnerships for Affordability and Student Success 
                Act and that is eligible to participate in a program 
                authorized under this title, shall be eligible to 
                participate under this paragraph.
                    ``(C) The program provides that such grants to 
                students will be in amounts not to exceed the student's 
                cost of attendance per academic year for attendance at 
                an institution of higher education. Such grants, in 
                combination with other State or Federal student 
                assistance, shall not exceed the student's cost of 
                attendance in any given academic year.
                    ``(D) The program provides for the selection of 
                grant recipients on the basis of substantial financial 
                need determined under part F and by the State.
                    ``(E) The program provides that if the State's 
                allotment under this subpart is based, in part, on the 
                financial need demonstrated by students who are 
                independent students or attending the institution less 
                than full time, a reasonable proportion of the State's 
                allotment shall be made available to such students.
                    ``(F) The program will notify students receiving 
                grants under this subpart that such grants are Federal-
                State partnership grants and are funded by the Federal 
                Government and the State.
            ``(3) Subgrants to eligible institutions.--A State awarded 
        an incentive grant under this subpart may establish a program 
        to award subgrants to eligible institutions that complies with 
        the following:
                    ``(A) The program is administered by a single State 
                agency.
                    ``(B) The program provides for the selection of 
                subgrant recipients based on criteria set by the State 
                agency.
                    ``(C) The program provides for subgrants that 
                support activities that will assist the State in 
                achieving--
                            ``(i) the State's measurable goals for 
                        student outcomes, including enrollment, 
                        completion, and attainment of postsecondary 
                        degrees and credentials;
                            ``(ii) the State's measurable goals for 
                        college affordability, including innovative 
                        methods for reducing costs; and
                            ``(iii) improved workforce outcomes for 
                        graduates.
                    ``(D) The program provides for public dissemination 
                of the results of the subgrant activities.
            ``(4) Fiscal control; reports.--A State awarded an 
        incentive grant under this subpart shall provide--
                    ``(A) for such fiscal control and fund accounting 
                procedures as may be necessary to assure proper 
                disbursement of and accounting for Federal funds paid 
                under this subpart; and
                    ``(B) for the making of such reports, in such form 
                and containing such information, as may be reasonably 
                necessary to enable the Secretary to perform the 
                Secretary's functions under this subpart.
    ``(b) Reservation and Disbursement of Allotments and 
Reallotments.--
            ``(1) In general.--Upon approval of an application for an 
        incentive grant under this subpart, the Secretary shall reserve 
        from the applicable allotment (including any applicable 
        reallotment) available, the amount of such payment, which 
        (subject to the limits of such allotment or reallotment) shall 
        be equal to the Federal share of the cost of the grants to 
        students or subgrants to eligible institutions or consortia of 
        such institutions covered by such application.
            ``(2) Payment.--The Secretary shall pay such reserved 
        amount, in advance or by way of reimbursement, and in such 
        installments as the Secretary may determine.
            ``(3) Amendment.--The Secretary may amend the reservation 
        of any amount under this subsection, either upon approval of an 
        amendment of the application or upon revision of the estimated 
        cost of the grants to students or subgrants to eligible 
        institutions with respect to which such reservation was made. 
        If the Secretary approves an upward revision of such estimated 
        cost, the Secretary may reserve the Federal share of the added 
        cost only from the applicable allotment (or reallotment) 
        available at the time of such approval.
    ``(c) Federal Share.--The Federal share of the cost of carrying out 
the activities described in paragraphs (1) through (3) of section 415A 
is equal to 66.66 percent.
    ``(d) Certain Activities for Which Non-Federal Share May Be 
Provided in Cash or In Kind.--For activities described in section 
415A(2), the non-Federal share may be provided in cash or in kind, 
fairly evaluated.
    ``(e) Reporting.--A State that desires to receive payments for 
continuing incentive grants under this subpart shall report the 
following information to the Secretary on an annual basis:
            ``(1) The State's progress in meeting its goals for college 
        affordability, including measures to minimize tuition increases 
        at public institutions and measures to increase the 
        availability of need-based student aid.
            ``(2) The State's progress in meeting the postsecondary 
        needs of underrepresented or underserved populations in the 
        State.
            ``(3) A list of any subgrants made to eligible 
        institutions.
            ``(4) The State's annual report described in section 415F.

``SEC. 415F. ANNUAL REPORTS.

    ``Each State that receives an allotment under this subpart shall 
report annually to the public on its progress in meeting its public 
postsecondary education goals and comprehensive plan for public higher 
education. Such report shall include--
            ``(1) information, as determined by the State in 
        consultation with stakeholders, on student outcomes, including 
        enrollment and completion rates, disaggregated by age, 
        enrollment status, race, ethnicity, disability status, and 
        socio-economic status;
            ``(2) information, as determined by the State in 
        consultation with stakeholders, on workforce outcomes for 
        graduates;
            ``(3) information on college costs, including tuition 
        increases, student indebtedness, and the availability of need-
        based aid; and
            ``(4) information on the consumer complaints related to the 
        performance of institutions of higher education reported to the 
        State in the prior year.

``SEC. 415G. PARTICIPATION OF PRIVATE, NONPROFIT INSTITUTIONS OF HIGHER 
              EDUCATION.

    ``(a) Voluntary Participation.--A private, nonprofit institution of 
higher education may voluntarily elect to participate in a State's 
efforts under the plan described in section 415B(b)(4). A State--
            ``(1) shall not require any private, nonprofit institution 
        to participate in such efforts; and
            ``(2) may require such an institution that voluntarily 
        elects to participate in such efforts to provide appropriate 
        information to allow the State to assess the institution's 
        progress towards the goals and activities described in 
        subparagraphs (A) through (E) of section 415B(b)(4).
    ``(b) Rule of Construction.--Nothing in this subpart, including 
voluntary participation described in subsection (a), shall be construed 
to--
            ``(1) authorize the Secretary, a State, or an officer or 
        employee of the Department or of a State to exercise any 
        direction, supervision, or control over a private, nonprofit 
        institution of higher education, including control over 
        curriculum, program of instruction, administration, governance, 
        personnel, articulation, the awarding of credit, graduation or 
        degree requirements, or admissions; or
            ``(2) limit the application of the General Education 
        Provisions Act.
    ``(c) Enforcement.--If any State fails or refuses to comply with 
any provision of this section, the State shall no longer be eligible 
for assistance under this subpart.

``SEC. 415H. AUTHORIZATION OF APPROPRIATIONS; RESERVATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this subpart such sums as may be necessary for fiscal year 2022 and 
each of the 4 succeeding fiscal years.
    ``(b) Reservation.--Not less than 50 percent of funds allotted to a 
State under this subpart shall be reserved for providing grants to 
eligible students.
    ``(c) Reservation for Consumer Information and Administrative 
Expenses.--Not more than 8 percent of the funds allotted to a State may 
be used to provide public accountability and consumer information on 
the performance of institutions of higher education and for 
administering the grant.''.
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