[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2266 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                S. 2266

To amend the Higher Education Act of 1965 to provide greater access to 
   higher education for America's students, to eliminate educational 
 barriers for participation in a public service career, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 12, 2023

  Mr. Cardin 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 provide greater access to 
   higher education for America's students, to eliminate educational 
 barriers for participation in a public service career, 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.

    This Act may be cited as the ``Strengthening American Communities 
Act of 2023''.

SEC. 2. PURPOSE.

    It is the purpose of this Act to provide greater access to higher 
education for America's students, to eliminate educational barriers for 
participation in a public service career by providing an opportunity 
for potential public servants to obtain an undergraduate education, and 
to establish an accelerated form of the public service loan forgiveness 
program for more immediate loan forgiveness for existing public 
servants holding Federal Direct Stafford Loans, Federal Direct 
Unsubsidized Stafford Loans, and Federal Direct PLUS Loans.

                   TITLE I--AMERICA'S COLLEGE PROMISE

SEC. 100. SHORT TITLE.

    This title may be cited as the ``America's College Promise Act of 
2023''.

    Subtitle A--State and Indian Tribe Grants for Community Colleges

SEC. 101. PROGRAM AUTHORIZED.

    Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
seq.) is amended by adding at the end the following:

     ``PART J--AMERICA'S COLLEGE PROMISE FEDERAL-STATE PARTNERSHIP

   ``Subpart 1--State and Indian Tribe Grants for Community Colleges

``SEC. 499A. IN GENERAL.

    ``From amounts appropriated under section 499G for any fiscal year, 
the Secretary shall award grants to eligible States and Indian tribes 
to pay the Federal share of expenditures needed to carry out the 
activities and services described in section 499E.

``SEC. 499B. FEDERAL SHARE; NON-FEDERAL SHARE.

    ``(a) Federal Share.--
            ``(1) In general.--Subject to paragraph (2), the amount of 
        the Federal share of a grant under this subpart shall be based 
        on a formula, determined by the Secretary, that provides, for 
        each eligible student in the State or Indian tribe, a per-
        student amount that is equal to 75 percent of--
                    ``(A) for the 2022-2023 award year, the average 
                resident community college tuition and fees per student 
                in all States for the most recent year for which data 
                are available; and
                    ``(B) for each subsequent award year, the amount 
                determined under this paragraph for the preceding award 
                year, increased by the lesser of--
                            ``(i) a percentage equal to the estimated 
                        percentage increase in the Consumer Price Index 
                        (as determined by the Secretary) since the date 
                        of such determination; or
                            ``(ii) 3 percent.
            ``(2) Indian tribes.--The amount of the Federal share for 
        an Indian tribe receiving a grant under this subpart shall be 
        the lesser of--
                    ``(A) the amount determined in accordance with 
                paragraph (1) with respect to such tribe; or
                    ``(B) the amount that is 95 percent of the total 
                amount needed to waive tuition and fees for all 
                eligible students enrolled in the community colleges 
                operated or controlled by such tribe.
    ``(b) State or Tribal Share.--
            ``(1) Formula.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                State or tribal share of a grant under this subpart for 
                each fiscal year shall be the amount needed to pay 25 
                percent of the average resident community college 
                tuition and fees per student in the 2022-2023 award 
                year for all eligible students in the State or tribe 
                for such fiscal year.
                    ``(B) Indian tribes.--The tribal share of a grant 
                awarded to an Indian tribe under this subpart for each 
                fiscal year shall be the lesser of--
                            ``(i) the amount determined in accordance 
                        with subparagraph (A) with respect to such 
                        tribe; or
                            ``(ii) 5 percent of the total amount needed 
                        to waive tuition and fees for all eligible 
                        students enrolled in the community colleges 
                        operated or controlled by such tribe.
            ``(2) Need-based aid.--A State or Indian tribe may include, 
        as part of the State or tribal share, any need-based financial 
        aid that--
                    ``(A) is provided from State or tribal funds to an 
                eligible student; and
                    ``(B) may be used by such student to pay costs of 
                attendance other than tuition and fees.
            ``(3) No in-kind contributions.--A State or Indian tribe 
        shall not include in-kind contributions for purposes of the 
        State or tribal share described in paragraph (1).
    ``(c) Determining Number of Eligible Students.--
            ``(1) In general.--For purposes of subsection (a) and 
        subsection (b), the Secretary shall develop and implement a 
        formula for accurately estimating the number of eligible 
        students in a State or Indian tribe and for making adjustments 
        based on the number of eligible students enrolled on less than 
        a full-time basis and the associated tuition and fees charged 
        to such students in proportion to the degree to which each such 
        student is not attending on a full-time basis.
            ``(2) Initial determination.--For the first year for which 
        grants are awarded under this subpart, the number of eligible 
        students in a State or Indian tribe shall be considered to be 
        equal to the number of eligible students who were in the State 
        or tribe for the preceding school year.
    ``(d) Adjustment of Grant Amount.--Not later than 180 days after 
the date on which a State or Indian tribe receives a grant under this 
subpart, the Secretary shall--
            ``(1) in consultation with the State or tribe concerned, 
        determine whether the actual number of eligible students in the 
        State or tribe for the year covered by the grant is greater 
        than the estimated number of such students that was used to 
        determine the amount of the grant; and
            ``(2) in the case of a determination under paragraph (1) 
        that the actual number of eligible students in the State or 
        tribe is higher than such estimate, issue a supplementary grant 
        payment to the State or tribe in an amount that ensures that 
        the total amount of the grant funds received by the State or 
        tribe under this subpart for the year covered by the grant 
        accurately reflects the higher number of eligible students.

``SEC. 499C. APPLICATIONS.

    ``(a) Submission.--In order to receive a grant under this subpart, 
a State or Indian tribe shall submit an application to the Secretary at 
such time, in such manner, and containing such information as the 
Secretary may require.
    ``(b) Contents.--Each application under subsection (a) shall 
include--
            ``(1) an estimate of the number of eligible students in the 
        State or Indian tribe and the cost of waiving community college 
        tuition and fees for all eligible students for each fiscal year 
        covered by the grant;
            ``(2) an assurance that each community college in the 
        State, or operated or controlled by the Indian tribe, as 
        applicable, will waive tuition and fees for eligible students 
        in accordance with section 499D(a);
            ``(3) a description of the promising and evidence-based 
        institutional reforms and innovative practices to improve 
        student outcomes, including transfer and completion rates, that 
        have been or will be adopted by each such community college, 
        such as--
                    ``(A) providing comprehensive academic, career, and 
                student support services (including mentoring, 
                advising, case management services, and career pathway 
                navigation), especially for low-income, first-
                generation, and adult students, and other students 
                belonging to racial and other groups that are 
                historically underrepresented in higher education;
                    ``(B) providing direct support services, or 
                assistance in applying for such services, such as--
                            ``(i) childcare, transportation, and 
                        emergency financial assistance;
                            ``(ii) assistance in obtaining health 
                        insurance coverage and accessing health care 
                        services, including behavioral and mental 
                        health services;
                            ``(iii) affordable housing;
                            ``(iv) nutrition assistance programs or 
                        free or discounted food; and
                            ``(v) means-tested Federal benefit 
                        programs, or similar State, tribal, or local 
                        benefit programs;
                    ``(C) providing accelerated learning opportunities, 
                such as dual or concurrent enrollment programs, 
                including early college high school programs, and 
                reforming course scheduling and credit awarding 
                policies to better meet the needs of students and 
                shorten time to completion;
                    ``(D) strengthening and reforming remedial and 
                developmental education, especially for low-income, 
                first-generation, and adult students, and other 
                students belonging to racial and other groups that are 
                historically underrepresented in higher education, 
                including through the use of multiple measures (such as 
                a student's college entrance examination score, grade 
                point average, high school course list, or a placement 
                examination) to identify students in need of remedial 
                education;
                    ``(E) utilizing career pathways, including through 
                building capacity for career and technical education, 
                as defined in section 3(5) of the Carl D. Perkins 
                Career and Technical Education Act of 2006 (20 U.S.C. 
                2302(5)), and programs of study, as defined in section 
                3(41) of such Act (20 U.S.C. 2302(41)), or degree 
                pathways; or
                    ``(F) providing expanded opportunities for 
                participating in work-based learning, which may include 
                apprenticeship programs, in students' programs of 
                study;
            ``(4) a description of how the State or Indian tribe will 
        ensure that programs leading to a recognized postsecondary 
        credential meet the quality criteria established by the State 
        under section 123(a) of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3153(a)) or other quality criteria 
        determined appropriate by the State or Indian tribe;
            ``(5) an assurance that each community college in the State 
        or under the authority of the Indian tribe have entered into 
        program participation agreements under section 487;
            ``(6) an assurance that the State or Indian tribe will, to 
        the maximum extent practicable, assist eligible students in 
        obtaining information about and accessing means-tested Federal 
        benefit programs and similar, State, tribal, and local benefit 
        programs for which such students may be eligible;
            ``(7) an assurance that, for each year of the grant, the 
        State or Indian tribe will notify each eligible student of the 
        student's remaining eligibility for assistance under this 
        subpart;
            ``(8) if the application is submitted by a State--
                    ``(A) a description of how the State will support 
                the scaling and increased adoption of the reforms and 
                practices described in paragraph (3);
                    ``(B) an assurance that the State will, to the 
                extent practicable, consider changes to State law that 
                will enable more community college students to be 
                eligible for means-tested Federal benefit programs and 
                similar State benefit programs;
                    ``(C) an assurance that the State will meet the 
                requirements of section 499D(b)(1) relating to the 
                alignment of secondary and postsecondary education; and
                    ``(D) an assurance that the State will meet the 
                requirements of section 499D(b)(2) relating to the 
                improvement of transfer pathways between institutions 
                of higher education; and
            ``(9) an assurance that the State or Indian tribe will 
        clearly communicate to prospective students, their families, 
        and the general public--
                    ``(A) plans to implement the program funded under 
                this subpart; and
                    ``(B) how eligible students can attend a community 
                college operated by the State or tribe without paying 
                the cost of tuition and fees.

``SEC. 499D. PROGRAM REQUIREMENTS.

    ``(a) General Requirements for States and Indian Tribes.--As a 
condition of receiving a grant under this subpart, a State or Indian 
tribe shall meet the following requirements:
            ``(1) For each year of the grant the total amount of 
        community college tuition and fees charged to an eligible 
        student in the State or Indian tribe shall be $0.
            ``(2) For each year of the grant no amount of financial 
        assistance for which an eligible student qualifies may be 
        applied to such tuition or fees.
    ``(b) State Requirements.--As a condition of receiving a grant 
under this subpart, a State shall meet the following requirements:
            ``(1) Alignment of k-12 and higher education.--
                    ``(A) In general.--The State shall--
                            ``(i) submit a plan to align the 
                        requirements for receiving a regular high 
                        school diploma from public schools in the State 
                        with the requirements for entering credit-
                        bearing coursework at community colleges in 
                        such State; and
                            ``(ii) not later than 3 years after the 
                        date on which the State first receives a grant 
                        under this subpart, certify to the Secretary 
                        that such alignment has been achieved.
                    ``(B) Failure to certify.--If a State does not 
                provide the certification required under subparagraph 
                (A) by the date specified in such subparagraph, the 
                State shall submit to the Secretary, at such time and 
                in such manner as the Secretary may require--
                            ``(i) a written explanation for the delay 
                        in making the certification; and
                            ``(ii) a plan that will enable the State to 
                        make the certification by not later than 5 
                        years after the date on which the State first 
                        received a grant under this subpart.
            ``(2) Transfer pathways.--
                    ``(A) In general.--The State shall--
                            ``(i) submit a plan, developed in 
                        collaboration with faculty from institutions of 
                        higher education in the State, to improve 
                        transfer pathways between institutions of 
                        higher education in the State, including by--
                                    ``(I) ensuring that associate 
                                degrees awarded by community colleges 
                                in the State are fully transferable to, 
                                and credited as, the first 2 years of 
                                related baccalaureate programs at 
                                public institutions of higher education 
                                in such State; and
                                    ``(II) ensuring that students 
                                attending community colleges in the 
                                State have access to comprehensive 
                                counseling regarding the process for 
                                transferring to a 4-year institution of 
                                higher education; and
                            ``(ii) not later than 3 years after the 
                        date on which the State first receives a grant 
                        under this subpart, certify to the Secretary 
                        that the State is carrying out the plan 
                        submitted in accordance with clause (i) and is 
                        meeting the requirements of subclauses (I) and 
                        (II) of such clause.
                    ``(B) Failure to certify.--If a State does not 
                provide the certification required under subparagraph 
                (A) by the date specified in such subparagraph, the 
                State shall submit to the Secretary, at such time and 
                in such manner as the Secretary may require--
                            ``(i) a written explanation for the delay 
                        in making the certification; and
                            ``(ii) a plan that will enable the State to 
                        make the certification by not later than 5 
                        years after the date on which the State first 
                        received a grant under this subpart.
            ``(3) Applicability.--The Secretary may not apply the 
        requirements under this subsection to an Indian tribe.
    ``(c) No Additional Eligibility Requirements.--A State or Indian 
tribe that receives a grant under this subpart may not impose 
additional eligibility requirements on eligible students other than the 
requirements under this subpart.

``SEC. 499E. ALLOWABLE USES OF FUNDS.

    ``(a) In General.--Except as provided in subsection (b), a State or 
Indian tribe shall use a grant under this subpart only to provide funds 
to each community college in the State, or operated or controlled by 
such tribe, as applicable, to enable each such community college to 
waive tuition and fees for eligible students as required under section 
499D(a).
    ``(b) Additional Uses.--If a State or Indian tribe demonstrates to 
the Secretary that the State or Indian tribe has grant funds remaining 
after meeting the demand for activities described in subsection (a), 
the State or Indian tribe may use those funds to carry out 1 or more of 
the following:
            ``(1) Enhancing the quality and equity of public higher 
        education to improve student outcomes, including transfer and 
        completion rates and labor market outcomes.
            ``(2) Investing in and diversifying the academic workforce.
            ``(3) Expanding the scope and capacity of high-quality 
        academic and occupational skills training programs at community 
        colleges, which may include collaboration with one or more 
        industry or sector partnerships (as defined in section 3 of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3201)).
            ``(4) Improving postsecondary education readiness in the 
        State or Indian tribe, including through outreach and early 
        intervention.
            ``(5) Expanding access to dual or concurrent enrollment 
        programs, such as early college high school programs.
            ``(6) Reducing unmet need at public 4-year institutions of 
        higher education.
    ``(c) Use of Funds for Administrative Purposes.--A State or Indian 
tribe that receives a grant under this subpart may not use any funds 
provided under this subpart for administrative purposes relating to 
such grant.
    ``(d) Maintenance of Effort.--A State or Indian tribe receiving a 
grant under this subpart shall be entitled to receive its full 
allotment of funds under this subpart for a fiscal year only if, for 
each year of the grant, the State or Indian tribe provides--
            ``(1) State fiscal support for higher education per FTE 
        student at a level equal to or exceeding the average amount of 
        State fiscal support for higher education per FTE student 
        provided for the 3 consecutive preceding fiscal years;
            ``(2) financial support for operational expenses (excluding 
        capital expenses and research and development costs) for public 
        4-year institutions of higher education at a level equal to or 
        exceeding the average amount provided for the 3 consecutive 
        preceding State or Indian tribe fiscal years; and
            ``(3) financial support for need-based financial aid at a 
        level equal to or exceeding the average amount provided for the 
        3 consecutive preceding State or Indian tribe fiscal years.
    ``(e) Supplement, Not Supplant.--Funds made available under this 
subpart shall be used to supplement, and not supplant, other Federal, 
State, tribal, and local funds that would otherwise be expended to 
carry out activities described in this section.
    ``(f) Report Requirements.--
            ``(1) Reporting by states and indian tribes.--A State or 
        Indian tribe receiving a grant under this subpart shall submit 
        to the Secretary an annual report that shall include--
                    ``(A) the uses of grant funds under this subpart;
                    ``(B) the progress made in fulfilling the 
                requirements of the grant;
                    ``(C) the rates of transfer, graduation, and 
                attainment of recognized postsecondary credentials at 
                participating community colleges, disaggregated by 
                race, income, and age; and
                    ``(D) any other information that the Secretary may 
                require.
            ``(2) Reporting by secretary.--The Secretary shall, on an 
        annual basis--
                    ``(A) compile and analyze the information described 
                in paragraph (1); and
                    ``(B) prepare and submit to the authorizing 
                committees a report containing--
                            ``(i) the analysis described in 
                        subparagraph (A); and
                            ``(ii) an identification of State and 
                        Indian tribe best practices for achieving the 
                        purpose of this subpart.
    ``(g) Technical Assistance.--The Secretary shall provide technical 
assistance to eligible States and Indian tribes concerning best 
practices regarding the promising and evidence-based institutional 
reforms and innovative practices to improve student outcomes and shall 
disseminate such best practices among the States and Indian tribes.
    ``(h) Continuation of Funding.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        State or Indian tribe receiving a grant under this subpart for 
        a fiscal year may continue to receive funding under this 
        subpart for future fiscal years conditioned on the availability 
        of budget authority and on meeting the requirements of the 
        grant, as determined by the Secretary.
            ``(2) Discontinuation.--The Secretary may discontinue 
        funding of the Federal share of a grant under this subpart if 
        the State or Indian tribe has violated the terms of the grant 
        or is not making adequate progress in implementing the reforms 
        described in the application submitted under section 499C.

``SEC. 499F. AUTOMATIC STABILIZERS FOR AMERICA'S COLLEGE PROMISE.

    ``(a) Maintenance of Effort Relief.--Notwithstanding subsection (d) 
of section 499E, a State that meets the qualifying spending 
requirements may request a waiver of the requirements under such 
subsection (d). The Secretary shall waive the requirements of such 
subsection (d) for a State that makes a qualifying request under this 
subsection as follows:
            ``(1) Tier i.--With respect to each State eligible for 
        relief under tier I, such requirements shall be waived for the 
        fiscal year succeeding the fiscal year in which the 
        determination of the State's eligibility for such relief is 
        made.
            ``(2) Tiers ii through v.--With respect to each State 
        eligible for relief under tier II, III, IV, or V, such 
        requirements shall be waived, in accordance with subsection 
        (d), for--
                    ``(A) the fiscal year in which the determination of 
                the State's eligibility for such relief is made;
                    ``(B) the fiscal year succeeding the fiscal year 
                described in subparagraph (A); or
                    ``(C) both such fiscal years.
    ``(b) Match Relief.--
            ``(1) State match relief.--Notwithstanding subsection (b) 
        of section 499B, a State that is eligible for relief under tier 
        II, III, IV, or V may request relief with respect to the 
        requirements of such subsection (b). The Secretary shall 
        provide relief from the requirements of such subsection (b), 
        for the applicable fiscal year or years, for a State that makes 
        a qualifying request under this paragraph as follows:
                    ``(A) Tier ii.--With respect to a State that is 
                eligible for relief under tier II, the Secretary 
                shall--
                            ``(i) apply section 499B(a)(1) by 
                        substituting `80 percent' for `75 percent'; and
                            ``(ii) apply section 499B(b)(1)(A) by 
                        substituting `20 percent' for `25 percent'.
                    ``(B) Tier iii.--With respect to a State that is 
                eligible for relief under tier III, the Secretary 
                shall--
                            ``(i) apply section 499B(a)(1) by 
                        substituting `85 percent' for `75 percent'; and
                            ``(ii) apply section 499B(b)(1)(A) by 
                        substituting `15 percent' for `25 percent'.
                    ``(C) Tier iv.--With respect to a State that is 
                eligible for relief under tier IV, the Secretary 
                shall--
                            ``(i) apply section 499B(a)(1) by 
                        substituting `90 percent' for `75 percent'; and
                            ``(ii) apply section 499B(b)(1)(A) by 
                        substituting `10 percent' for `25 percent'.
                    ``(D) Tier v.--With respect to a State that is 
                eligible for relief under tier V, the Secretary shall--
                            ``(i) apply section 499B(a)(1) by 
                        substituting `95 percent' for `75 percent'; and
                            ``(ii) apply section 499B(b)(1)(A), by 
                        substituting `5 percent' for `25 percent'.
            ``(2) Applicable fiscal years.--With respect to each State 
        eligible for relief under tier II, III, IV, or V, the Secretary 
        shall provide the relief under paragraph (1), in accordance 
        with subsection (d), for--
                    ``(A) the fiscal year in which the determination of 
                the State's eligibility for such relief is made;
                    ``(B) the fiscal year succeeding the fiscal year 
                described in subparagraph (A); or
                    ``(C) both such fiscal years.
    ``(c) State Eligibility.--A State's eligibility for relief under 
this section shall be determined as follows:
            ``(1) Tier i.--A State shall be eligible for relief under 
        tier I for a fiscal year in which--
                    ``(A)(i) the State was in an elevated unemployment 
                period at any point in the fiscal year; or
                    ``(ii) the Nation as a whole was in an elevated 
                unemployment period at any point in the fiscal year; 
                and
                    ``(B) the State is not eligible for relief under 
                any other tier.
            ``(2) Tier ii.--A State shall be eligible for relief under 
        tier II for a fiscal year in which--
                    ``(A)(i) the State average unemployment rate was 
                equal to or greater than 6.5 percent but less than 7.5 
                percent at any point in the fiscal year; or
                    ``(ii) the national average unemployment rate is 
                equal to or greater than 6.5 percent but less than 7.5 
                percent at any point in the fiscal year; and
                    ``(B) the State is not eligible for relief under 
                tier III, IV, or V.
            ``(3) Tier iii.--A State shall be eligible for relief under 
        tier III for a fiscal year in which--
                    ``(A)(i) the State average unemployment rate was 
                equal to or greater than 7.5 percent but less than 8.5 
                percent at any point in the fiscal year; or
                    ``(ii) the national average unemployment rate is 
                equal to or greater than 7.5 percent but less than 8.5 
                percent at any point in the fiscal year; and
                    ``(B) the State is not eligible for relief under 
                tier IV or V.
            ``(4) Tier iv.--A State shall be eligible for relief under 
        tier IV for a fiscal year in which--
                    ``(A)(i) the State average unemployment rate was 
                equal to or greater than 8.5 percent but less than 9.5 
                percent at any point in the fiscal year; or
                    ``(ii) the national average unemployment rate is 
                equal to or greater than 8.5 percent but less than 9.5 
                percent at any point in the fiscal year; and
                    ``(B) the State is not eligible for relief under 
                tier V.
            ``(5) Tier v.--A State shall be eligible for relief under 
        tier V for a fiscal year in which--
                    ``(A) the State average unemployment rate was equal 
                to or greater than 9.5 percent at any point in the 
                fiscal year; or
                    ``(B) the national average unemployment rate is 
                equal to or greater than 9.5 percent at any point in 
                the fiscal year.
    ``(d) Discretion in the Provision of Relief.--In determining the 
fiscal years for which to provide relief in accordance with subsections 
(a)(2) and (b) to a State that is eligible under tier II, III, IV, or 
V, the Secretary shall take into account the following:
            ``(1) In the case of a State that requests relief under 
        subsection (a)(2), the fiscal years for which the State 
        requests such relief, including--
                    ``(A) if the State requests such relief for the 
                fiscal year for which the determination of the State's 
                eligibility for such relief is made, the amount by 
                which the State is unable to meet the requirements of 
                section 499E(d) for such fiscal year; and
                    ``(B) if the State requests such relief for the 
                fiscal year succeeding the year described in 
                subparagraph (A), the amount by which the State 
                anticipates being unable to meet such requirements for 
                such succeeding fiscal year.
            ``(2) In the case of a State that requests relief under 
        subsection (b), the fiscal years for which the State requests 
        such relief, including--
                    ``(A) if the State requests such relief for the 
                fiscal year for which the determination of the State's 
                eligibility for such relief is made, the extent to 
                which the State is unable to meet the requirements of 
                section 499B(b) for such fiscal year; and
                    ``(B) if the State requests such relief for the 
                fiscal year succeeding the year described in 
                subparagraph (A), the extent to which the State 
                anticipates being unable to meet such requirements for 
                such succeeding fiscal year.
            ``(3) The actual or anticipated timing, severity, and 
        duration of the unemployment rate increase during--
                    ``(A) the fiscal year for which the determination 
                of the State's eligibility for such relief is made;
                    ``(B) the fiscal year succeeding the fiscal year 
                described in subparagraph (A); and
                    ``(C) the fiscal year preceding the fiscal year 
                described in subparagraph (A).
            ``(4) Other factors determined to be relevant by the 
        Secretary.
    ``(e) Indian Tribes.--
            ``(1) In general.--For purposes of determining the 
        eligibility of an Indian tribe to receive relief under this 
        section--
                    ``(A) an Indian tribe that operates or controls a 
                community college in a State that is eligible for 
                relief under any tier shall be treated as a State for 
                purposes of receiving relief under such tier, except as 
                otherwise provided in paragraph (2); and
                    ``(B) in the case of an Indian tribe that operates 
                or controls a community college in at least 2 different 
                States each of which is eligible for relief under 
                different tiers, the Indian tribe shall receive relief 
                under the tier offering the greatest level of relief.
            ``(2) Indian tribe match relief.--Notwithstanding 
        subsection (b) of section 499B, an Indian tribe that is 
        eligible for relief under tier II, III, IV, or V may request 
        relief with respect to the requirements of such subsection (b). 
        The Secretary shall provide relief from the requirements of 
        section 499B(b), for the applicable fiscal year or years, for 
        an Indian tribe that makes a qualifying request under this 
        paragraph, by--
                    ``(A) with respect to applying section 499B(a)(1), 
                providing the appropriate relief described in 
                subsection (b)(1) of this section;
                    ``(B) applying section 499B(a)(2)(B) by 
                substituting `100 percent' for `95 percent'; and
                    ``(C) applying section 499B(b)(1)(B)(ii), by 
                substituting `0 percent' for `5 percent'.
    ``(f) Definitions.--In this section:
            ``(1) Elevated unemployment period.--The term `elevated 
        unemployment period'--
                    ``(A) when used with respect to the Nation as a 
                whole, means a consecutive, 3-month period in a fiscal 
                year in which the national average unemployment rate is 
                not less than 0.5 percentage points above the lowest 
                national average unemployment rate for the 12-month 
                period preceding such 3-month period; and
                    ``(B) when used with respect to a State, means a 
                consecutive, 3-month period in a fiscal year in which 
                the State average unemployment rate is not less than 
                0.5 percentage points above the lowest State average 
                unemployment rate for the 12-month period preceding 
                such 3-month period.
            ``(2) Qualifying spending requirements.--The term 
        `qualifying spending requirements' means the requirements that 
        a State not disproportionately decrease spending for any of the 
        categories described in subparagraphs (A) through (C) of 
        section 499E(d)(1) relative to such State's overall, average 
        decrease in spending for the 3 consecutive preceding fiscal 
        years.
            ``(3) National average unemployment rate.--The term 
        `national average unemployment rate' means the average 
        (seasonally adjusted) rate of total unemployment in all States 
        for a consecutive, 3-month period in a fiscal year, based on 
        data from the Bureau of Labor Statistics of the Department of 
        Labor.
            ``(4) State average unemployment rate.--The term `State 
        average unemployment rate' means the average (seasonally 
        adjusted) rate of total unemployment in a State for a 
        consecutive, 3-month period in a fiscal year, based on data 
        from the Bureau of Labor Statistics of the Department of Labor.

``SEC. 499G. APPROPRIATIONS.

    ``There are authorized to be appropriated, and there are 
appropriated to carry out this subpart (in addition to any other 
amounts appropriated to carry out this subpart and out of any money in 
the Treasury not otherwise appropriated), such sums as may be necessary 
for fiscal year 2023 and each succeeding fiscal year.

``SEC. 499H. DEFINITIONS.

    ``In this subpart:
            ``(1) Apprenticeship.--The term `apprenticeship' means an 
        apprenticeship program registered under the Act of August 16, 
        1937 (commonly known as the `National Apprenticeship Act'; 50 
        Stat. 664, chapter 663; 29 U.S.C. 50 et seq.).
            ``(2) Career pathway.--The term `career pathway' has the 
        meaning given the term in section 3 of the Workforce Innovation 
        and Opportunity Act (29 U.S.C. 3102).
            ``(3) Community college.--The term `community college' 
        means a public institution of higher education at which the 
        highest degree that is predominantly awarded to students is an 
        associate's degree, including 2-year Tribal Colleges or 
        Universities under section 316 and public 2-year institutions 
        of higher education operated by a State.
            ``(4) Dual or concurrent enrollment program.--The term 
        `dual or concurrent enrollment program' has the meaning given 
        the term in section 8101 of the Elementary and Secondary 
        Education Act of 1965.
            ``(5) Early college high school.--The term `early college 
        high school' has the meaning given the term in section 8101 of 
        the Elementary and Secondary Education Act of 1965.
            ``(6) Eligible student.--The term `eligible student' means 
        a student who--
                    ``(A) is enrolled in an eligible program (as 
                defined in section 481(b)) at a community college on 
                not less than a half-time basis;
                    ``(B) either--
                            ``(i) qualifies for in-State resident 
                        community college tuition, as determined by the 
                        State or Indian tribe; or
                            ``(ii) would qualify for such in-State 
                        resident community college tuition, but for the 
                        immigration status of such student; and
                    ``(C) has not been enrolled (whether full-time or 
                less than full-time) for more than 6 semesters (or the 
                equivalent) for which the student received a waiver of 
                community college tuition and fees under section 
                499D(a).
            ``(7) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 102 of the Federally 
        Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5130).
            ``(8) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101.
            ``(9) Means-tested federal benefit program.--The term 
        `means-tested Federal benefit program' has the meaning given 
        the term in section 479.
            ``(10) Recognized postsecondary credential.--The term 
        `recognized postsecondary credential' has the meaning as 
        described in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
            ``(11) State fiscal support for higher education.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `State fiscal support for 
                higher education', used with respect to a State for a 
                fiscal year, means an amount that is equal to the gross 
                amount of applicable State funds appropriated or 
                dedicated, and expended by the State, including funds 
                from lottery receipts, in the fiscal year, that are 
                used to support institutions of higher education and 
                student financial aid for higher education in the 
                State.
                    ``(B) Exclusions.--State fiscal support for higher 
                education for a State for a fiscal year shall not 
                include--
                            ``(i) funds described in subparagraph (A) 
                        that are returned to the State;
                            ``(ii) State-appropriated funds derived 
                        from Federal sources, including funds provided 
                        under section 499B(b) and section 499J(b);
                            ``(iii) amounts that are portions of 
                        multiyear appropriations to be distributed over 
                        multiple years that are not to be spent for the 
                        year for which the calculation under this 
                        paragraph is being made, subject to 
                        subparagraph (D);
                            ``(iv) tuition, fees, or other educational 
                        charges paid directly by a student to a public 
                        institution of higher education or to the 
                        State;
                            ``(v) funds for--
                                    ``(I) financial aid programs 
                                provided to out-of-State institutions 
                                of higher education, including aid to 
                                students enrolled in such institutions;
                                    ``(II) merit-based financial aid to 
                                students awarded on the basis of 
                                predicted or actual academic 
                                performance;
                                    ``(III) financial aid for students 
                                attending, or annual operating expenses 
                                of, proprietary institutions of higher 
                                education (as defined in section 
                                102(b));
                                    ``(IV) financial aid for students 
                                attending, or annual operating expenses 
                                of, unaccredited institutions;
                                    ``(V) research and development;
                                    ``(VI) hospitals, athletics, or 
                                other auxiliary enterprises; or
                                    ``(VII) corporate or other private 
                                donations directed to 1 or more 
                                institutions of higher education 
                                permitted to be expended by the State; 
                                or
                            ``(vi) any other funds that the Secretary 
                        determines shall not be included in the 
                        calculation of State fiscal support for higher 
                        education for such State.
                    ``(C) Adjustments for biennial appropriations.--The 
                Secretary shall take into consideration any adjustments 
                to the calculations under this paragraph that may be 
                required to accurately reflect State fiscal support for 
                higher education in States with biennial appropriation 
                cycles.
                    ``(D) Indian tribes.--In determining the State 
                fiscal support for higher education of an Indian tribe 
                for a fiscal year, the Indian tribe shall be treated as 
                a State except as otherwise determined appropriate by 
                the Secretary.
            ``(12) State fiscal support for higher education per fte 
        student.--The term `State fiscal support for higher education 
        per FTE student', used with respect to a State or Indian tribe 
        for a fiscal year, means, the quotient of--
                    ``(A) the State fiscal support for higher education 
                for the previous fiscal year; divided by
                    ``(B) the number of full-time equivalent students 
                enrolled in public institutions of higher education in 
                such State or tribe for such previous fiscal year.''.

                    Subtitle B--Student Success Fund

SEC. 111. STUDENT SUCCESS FUND.

    Part J of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.), as added by section 101, is further amended by adding at 
the end the following:

                   ``Subpart 2--Student Success Fund

``SEC. 499I. IN GENERAL.

    ``From amounts appropriated under section 499O for any fiscal year, 
the Secretary shall carry out a grant program (to be known as the 
`Student Success Fund') to make grants to eligible entities to carry 
out the activities and services described in section 499L.

``SEC. 499J. FEDERAL SHARE AND MATCHING FUNDS.

    ``(a) Federal Share.--
            ``(1) Formula requirements.--The Federal share of a grant 
        under this subpart shall be based on a formula, developed by 
        the Secretary, that accounts for--
                    ``(A) the State or Indian tribe's relative share of 
                eligible students, as determined in accordance with 
                section 499B(c);
                    ``(B) the State or Indian tribe's relative share of 
                Federal Pell Grant recipients; and
                    ``(C) the ratio between a State or Indian tribe's 
                funding per full-time equivalent (FTE) student at 
                public institutions of higher education and the average 
                net price at public 4-year institutions of higher 
                education, in such a way as to reward States and Indian 
                tribes that keep net prices for students low while 
                maintaining their fiscal support for higher education.
            ``(2) Formula published before application deadline.--The 
        Secretary shall--
                    ``(A) develop the formula described in paragraph 
                (1);
                    ``(B) calculate estimated allotments for each 
                eligible entity under such formula; and
                    ``(C) publish such formula and estimated allotments 
                not later than the date of the notice soliciting 
                applications for participation in the program under 
                this subpart.
    ``(b) Matching Funds.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        eligible entity participating in the program under this subpart 
        shall provide, from non-Federal sources, in cash or in kind--
                    ``(A) in each of the first, second, third, and 
                fourth years of participation in the program, an amount 
                equal to 25 percent of the amount such entity received 
                under subsection (a) with respect to such year;
                    ``(B) in each of the fifth and sixth years of 
                participation in the program, an amount equal to 50 
                percent of the amount such entity received under 
                subsection (a) with respect to such year;
                    ``(C) in each of the seventh and eighth years of 
                participation in the program, an amount equal to 75 
                percent of the amount such entity received under 
                subsection (a) with respect to such year; and
                    ``(D) in the ninth year and each subsequent year 
                thereafter of participation in the program, an amount 
                equal to 100 percent of the amount such entity received 
                under subsection (a) with respect to such year.
            ``(2) Exception for indian tribes.--The Secretary may 
        modify or waive the matching fund requirements under paragraph 
        (1) in the case of an eligible entity that is an Indian tribe.
            ``(3) Reallotment.--If an eligible entity returns to the 
        Secretary any portion of the grant amount provided to such 
        eligible entity under this subpart for any fiscal year, or 
        requests a grant amount that is less than the Federal share 
        determined for such entity in accordance with subsection (a), 
        the Secretary shall reallot such excess amount for the 
        succeeding fiscal year, in addition to the amounts appropriated 
        under 499O for such succeeding fiscal year.
    ``(c) Supplement, Not Supplant.--Grant funds awarded under this 
subpart shall be used to supplement, and not supplant, other Federal, 
State, tribal, and local funds that would otherwise be expended to 
carry out activities assisted under this subpart.

``SEC. 499K. APPLICATIONS.

    ``(a) In General.--To be eligible to participate in the program 
under this subpart, an eligible entity shall submit an application to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may require, including--
            ``(1) a plan that includes--
                    ``(A) the amount of funds requested by the eligible 
                entity under this subpart and the intended use of such 
                funds;
                    ``(B) how the eligible entity will use the 
                requested funds to implement promising and evidence-
                based institutional reforms and innovative practices to 
                improve student outcomes, including--
                            ``(i) implementation of the reforms and 
                        practices identified by such entity under 
                        section 499C(b)(3); and
                            ``(ii) annual implementation benchmarks 
                        that the entity will use to track progress in 
                        implementing such reforms and practices;
                    ``(C) if the eligible entity is a State, how such 
                eligible entity will support the scaling of evidence-
                based and innovative initiatives system-wide;
                    ``(D) how the eligible entity will meet its 
                matching fund requirements under section 499J(b);
                    ``(E) if the eligible entity is a State, how such 
                eligible entity will prioritize spending on the public 
                institutions of higher education specified in paragraph 
                (2)(B); and
                    ``(F) the improvements the eligible entity 
                anticipates in student outcomes, including improvements 
                in transfer rates or completion rates, or both; and
            ``(2) if the eligible entity is a State, an analysis that 
        includes--
                    ``(A) with respect to each public institution of 
                higher education of the eligible entity--
                            ``(i) the total per-student funding;
                            ``(ii) the amount of per-student funding 
                        from State-appropriated funds;
                            ``(iii) the student demographics (including 
                        data on race, income, disability status, and 
                        remediation); and
                            ``(iv) transfer and completion rates, 
                        including such rates among low-income students, 
                        students of color, students with disabilities, 
                        and students in need of remediation; and
                    ``(B) whether, of the public institutions of higher 
                education of the eligible entity, the public 
                institutions of higher education that received less 
                funding on a per-student basis described in clause (i) 
                or (ii), or both, of subparagraph (A), are serving 
                disproportionately high shares of low-income students, 
                students of color, students with disabilities, or 
                students in need of remediation.
    ``(b) Approval.--
            ``(1) In general.--Not later than 180 days after receiving 
        a plan under subsection (a), the Secretary shall--
                    ``(A) approve the plan; or
                    ``(B) require revisions to such plan.
            ``(2) Revisions required.--An eligible entity shall make 
        such revisions as required by the Secretary under paragraph 
        (1)(B).
    ``(c) Publication.--The Secretary shall make each plan approved 
under subsection (b)(1)(A) and each plan revised under subsection 
(b)(2) available to the public on the website of the Department.

``SEC. 499L. PROGRAM REQUIREMENTS.

    ``(a) General Requirements.--
            ``(1) Report on demonstrated progress.--For the third year 
        in which an eligible entity participates in the program under 
        this subpart, and every 2 years thereafter, the eligible entity 
        shall submit a report to the Secretary, in such manner and 
        containing such information as the Secretary may require, that 
        includes--
                    ``(A) the progress in meeting the annual 
                implementation benchmarks included in the application 
                of such eligible entity under section 499K(a)(1)(B);
                    ``(B) the progress in improving the student 
                outcomes identified by the entity under section 
                499K(a)(1)(F); and
                    ``(C) with respect to the 2 years after such report 
                is submitted--
                            ``(i) a plan for the use of funds under 
                        this subpart; and
                            ``(ii) the amount of funds requested by the 
                        eligible entity under this subpart.
            ``(2) Approval.--Not later than 180 days after receiving a 
        plan under paragraph (1)(C)(i), the Secretary shall--
                    ``(A) approve the plan; or
                    ``(B) require revisions to such plan.
            ``(3) Revisions required.--An eligible entity shall make 
        such revisions as required by the Secretary under paragraph 
        (2)(B).
    ``(b) Failure To Meet Requirements.--If an eligible entity does not 
meet the annual implementation benchmarks included in the application 
of such eligible entity under section 499K(a)(1)(B), as required to be 
reported under subsection (a)(1)(A), such eligible entity shall submit 
to the Secretary, at such time and in such manner as the Secretary may 
require--
            ``(1) a written explanation for the delay in meeting such 
        requirements; and
            ``(2) a plan that will enable such eligible entity to meet 
        such requirements not later than 1 year after the date on which 
        the eligible entity submitted the written explanation under 
        paragraph (1).
    ``(c) Publication.--The Secretary shall make each plan approved 
under subsection (a)(2)(A), each plan revised under subsection (a)(3), 
and each plan submitted under subsection (b)(2) available to the public 
on the website of the Department.

``SEC. 499M. ALLOWABLE USES OF FUNDS.

    ``(a) In General.--Except as provided in subsection (b), an 
eligible entity shall use a grant under this subpart only to carry out 
the plan approved or revised for such year under section 499K.
    ``(b) Use of Funds for Administrative Purposes.--An eligible entity 
that receives a grant under this subpart may use not more than 5 
percent of such grant for administrative purposes relating to the grant 
under this subpart.
    ``(c) Prohibited Uses of Funds.--No funds received under this 
section shall be used to--
            ``(1) pay contractors for the provision of pre-enrollment 
        recruitment activities through a revenue sharing agreement; or
            ``(2) fund endowments, athletics, sectarian instruction, or 
        religious worship.

``SEC. 499N. ELIGIBLE ENTITY DEFINED.

    ``In this subpart, the term `eligible entity' means a State or 
Indian tribe that is a recipient of a grant under subpart 1.

``SEC. 499O. APPROPRIATIONS.

    ``(a) Authorization and Appropriations.--There are authorized to be 
appropriated, and there are appropriated to carry out this subpart (in 
addition to any other amounts appropriated to carry out this subpart 
and out of any money in the Treasury not otherwise appropriated), 
$1,000,000,000 for fiscal year 2023 and each succeeding fiscal year.
    ``(b) Availability.--Funds appropriated under subsection (a) shall 
remain available to the Secretary until expended.''.

Subtitle C--Pathways to Student Success for Historically Black Colleges 
   and Universities, Tribal Colleges and Universities, and Minority-
                          Serving Institutions

SEC. 121. GRANTS TO HISTORICALLY BLACK COLLEGES AND UNIVERSITIES, 
              TRIBAL COLLEGES AND UNIVERSITIES, AND MINORITY-SERVING 
              INSTITUTIONS.

    Part J of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.), as added and amended by this Act, is further amended by 
adding at the end the following:

 ``Subpart 3--Grants to Historically Black Colleges and Universities, 
  Tribal Colleges and Universities, and Minority-Serving Institutions

``SEC. 499P. PATHWAYS TO STUDENT SUCCESS FOR HISTORICALLY BLACK 
              COLLEGES AND UNIVERSITIES.

    ``From amounts appropriated under section 499U(a) for any fiscal 
year, the Secretary shall award grants to participating historically 
Black colleges or universities that meet the requirements of section 
499S(a) to--
            ``(1) encourage students to enroll and successfully 
        complete a bachelor's degree at such colleges and universities;
            ``(2) provide incentives to community college students to 
        transfer to such colleges and universities through strong 
        transfer pathways to complete a bachelor's degree program; and
            ``(3) support such colleges and universities to better 
        serve new and existing students by engaging in reforms and 
        innovations designed to improve completion rates and other 
        student outcomes.

``SEC. 499Q. PATHWAYS TO STUDENT SUCCESS FOR TRIBAL COLLEGES AND 
              UNIVERSITIES.

    ``From amounts appropriated under section 499U(a) for any fiscal 
year, the Secretary shall award grants to participating Tribal Colleges 
or Universities that meet the requirements of section 499S(a) to--
            ``(1) encourage students to enroll and successfully 
        complete a bachelor's degree at such Colleges and Universities;
            ``(2) provide incentives to community college students to 
        transfer to such Colleges and Universities through strong 
        transfer pathways to complete a bachelor's degree program; and
            ``(3) support such Colleges and Universities to better 
        serve new and existing students by engaging in reforms and 
        innovations designed to improve completion rates and other 
        student outcomes.

``SEC. 499R. PATHWAYS TO STUDENT SUCCESS FOR ALASKA NATIVE-SERVING 
              INSTITUTIONS, ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC 
              ISLANDER-SERVING INSTITUTIONS, HISPANIC-SERVING 
              INSTITUTIONS, NATIVE AMERICAN-SERVING NONTRIBAL 
              INSTITUTIONS, NATIVE HAWAIIAN-SERVING INSTITUTIONS, AND 
              PREDOMINANTLY BLACK INSTITUTIONS.

    ``From amounts appropriated under section 499U(a) for any fiscal 
year, the Secretary shall award grants to participating Alaska Native-
serving institutions, Asian American and Native American Pacific 
Islander-serving institutions, Hispanic-serving institutions, Native 
American-serving nontribal institutions, Native Hawaiian-serving 
institutions, and Predominantly Black institutions that meet the 
requirements of section 499S(a) to--
            ``(1) encourage students to enroll and successfully 
        complete a bachelor's degree at such institutions;
            ``(2) provide incentives to community college students to 
        transfer to such institutions through strong transfer pathways 
        to complete a bachelor's degree program; and
            ``(3) support such institutions to better serve new and 
        existing students by engaging in reforms and innovations 
        designed to improve completion rates and other student 
        outcomes.

``SEC. 499S. GRANT TERMS.

    ``(a) Institutional Eligibility.--An institution shall meet the 
requirements of this subsection if the institution--
            ``(1) in a public or nonprofit 4-year institution that has 
        a student body of which not less than 35 percent are low-income 
        students;
            ``(2) commits to maintaining or adopting and implementing 
        promising and evidence-based institutional reforms and 
        innovative practices to improve the completion rates and other 
        student outcomes, such as--
                    ``(A) providing comprehensive academic, career, and 
                student support services (including mentoring, 
                advising, case management services, and career pathway 
                navigation), especially for low-income, first-
                generation, and adult students, and other students 
                belonging to racial and other groups that are 
                historically underrepresented in higher education;
                    ``(B) providing direct support services, or 
                assistance in applying for such services, such as--
                            ``(i) childcare, transportation, and 
                        emergency financial assistance;
                            ``(ii) assistance in obtaining health 
                        insurance coverage and accessing health care 
                        services, including behavioral and mental 
                        health services;
                            ``(iii) affordable housing;
                            ``(iv) nutrition assistance programs or 
                        free or discounted food; and
                            ``(v) means-tested Federal benefit 
                        programs, or similar State, tribal, or local 
                        benefit programs;
                    ``(C) providing accelerated learning opportunities 
                and degree pathways, such as dual or concurrent 
                enrollment programs and pathways to graduate and 
                professional degree programs;
                    ``(D) partnering with employers, industry, 
                nonprofit associations, and other groups to provide 
                opportunities to advance learning outside the 
                classroom, including--
                            ``(i) work-based learning opportunities 
                        (such as internships or apprenticeships); or
                            ``(ii) programs designed to improve inter-
                        cultural development and personal growth (such 
                        as foreign exchange and study abroad programs); 
                        or
                    ``(E) strengthening remedial education, especially 
                for low-income, first-generation, and adult students, 
                and other students belonging to racial and other groups 
                that are historically underrepresented in higher 
                education, including through the use of multiple 
                measures (such as a student's college entrance 
                examination score, grade point average, high school 
                course list, or a placement examination) to identify 
                students in need of remedial education;
            ``(3) sets performance goals for improving student outcomes 
        for the duration of the grant; and
            ``(4) if receiving a grant for transfer students, has a 
        formal, statewide articulation agreement with community 
        colleges in the State in which such institution operates that 
        guarantees--
                    ``(A) that a student who earns postsecondary credit 
                at any community college in such State shall be able to 
                fully transfer such credit toward meeting related 
                degree or certificate requirements at such institution; 
                and
                    ``(B) that associate degrees awarded by community 
                colleges in the State are fully transferable to, and 
                credited as, the first 2 years of related baccalaureate 
                programs at such institution.
    ``(b) Grant Amount.--
            ``(1) Initial amount.--For the first year that an eligible 
        institution participates in the grant program under this 
        subpart and subject to paragraph (3), such eligible institution 
        shall receive a grant in an amount based on the product of--
                    ``(A) the actual cost of tuition and fees at the 
                eligible institution in such year (referred to in this 
                subpart as the per-student rebate); and
                    ``(B) the number of eligible students enrolled in 
                the eligible institution for the preceding year.
            ``(2) Subsequent increases.--For each succeeding year after 
        the first year of the grant program under this subpart, each 
        participating eligible institution shall receive a grant in the 
        amount determined under paragraph (1) for such year, except 
        that in no case shall the amount of the per-student rebate for 
        an eligible institution increase by more than 3 percent as 
        compared to the amount of such rebate for the preceding year.
            ``(3) Limitations.--
                    ``(A) Maximum per-student rebate.--No eligible 
                institution participating in the grant program under 
                this subpart shall receive a per-student rebate amount 
                for any year that is greater than the national average 
                of annual tuition and fees at public 4-year 
                institutions of higher education for such year, as 
                determined by the Secretary.
                    ``(B) First-year tuition and fees.--During the 
                first year of participation in the grant program under 
                this subpart, no eligible institution may increase 
                tuition and fees at a rate greater than any annual 
                increase at the eligible institution in the previous 5 
                years.
            ``(4) Students enrolled less than full-time.--The Secretary 
        shall develop and implement a formula for making adjustments to 
        grant amounts under this subpart based on the number of 
        eligible students at each eligible institution enrolled less 
        than full-time and the associated tuition and fees charged to 
        such students in proportion to the degree to which each such 
        student is not attending on a full-time basis.
    ``(c) Application.--An eligible institution that desires a grant 
under this subpart shall submit an application to the Secretary at such 
time, in such manner, and containing such information as the Secretary 
may require.
    ``(d) Use of Funds.--Funds awarded under this subpart to a 
participating eligible institution shall be used to waive or 
significantly reduce tuition and fees for eligible students by an 
amount not to exceed the annual per-student rebate amount. Such funds 
under this subpart may only be used to waive or reduce tuition and fees 
for the first 60 credits for which an eligible student is enrolled in 
the participating eligible institution.
    ``(e) Supplement, Not Supplant.--Funds made available under section 
499U to carry out this subpart shall be used to supplement, and not 
supplant, other Federal, State, tribal, and local funds that would 
otherwise be expended to carry out activities under this subpart.

``SEC. 499T. DEFINITIONS.

    ``In this subpart:
            ``(1) Alaska native-serving institution.--The term `Alaska 
        Native-serving institution' has the meaning given such term in 
        section 317(b).
            ``(2) Asian american and native american pacific islander-
        serving institution.--The term `Asian American and Native 
        American Pacific Islander-serving institution' has the meaning 
        given such term in section 371(c).
            ``(3) Eligible student.--The term `eligible student' means 
        a student, regardless of age, who--
                    ``(A) is enrolled in an eligible program (as 
                defined in section 481(b)) at a participating eligible 
                institution, on at least a half-time basis;
                    ``(B) is a low-income student;
                    ``(C) has been enrolled at such participating 
                eligible institution under this subpart for not more 
                than 60 credits; and
                    ``(D) has not been enrolled (whether full-time or 
                less than full-time) for more than 6 semesters (or the 
                equivalent) for which the student received a benefit 
                under this subpart.
            ``(4) Hispanic-serving institution.--The term `Hispanic-
        serving institution' has the meaning given such term in section 
        502.
            ``(5) Historically black college or university.--The term 
        `historically Black college or university' means a part B 
        institution described in section 322(2).
            ``(6) Low-income student.--The term `low-income student' 
        shall include--
                    ``(A) any student eligible for a Federal Pell Grant 
                under section 401; and
                    ``(B) any student who meets the financial 
                eligibility criteria for receiving a Federal Pell Grant 
                under section 401, but who is ineligible to receive a 
                Federal Pell Grant.
            ``(7) Native american-serving nontribal institution.--The 
        term `Native American-serving nontribal institution' has the 
        meaning given such term in section 371(c).
            ``(8) Native hawaiian-serving institution.--The term 
        `Native Hawaiian-serving institution' has the meaning given 
        such term in section 317(b).
            ``(9) Predominantly black institution.--The term 
        `Predominantly Black institution' has the meaning given such 
        term in section 371(c).
            ``(10) Tribal college or university.--The term `Tribal 
        College or University' has the meaning given the term in 
        section 316(b)(3).

``SEC. 499U. APPROPRIATIONS.

    ``(a) Authorization and Appropriations for HBCU, TCU, and MSI 
Grants.--For the purpose of carrying out this subpart there are 
authorized to be appropriated, and there are appropriated--
            ``(1) $98,100,000 for fiscal year 2023;
            ``(2) $321,040,000 for fiscal year 2024;
            ``(3) $1,912,010,000 for fiscal year 2025;
            ``(4) $1,988,710,000 for fiscal year 2026;
            ``(5) $2,068,960,000 for fiscal year 2027;
            ``(6) $2,151,010,000 for fiscal year 2028;
            ``(7) $2,184,900,000 for fiscal year 2029;
            ``(8) $2,329,370,000 for fiscal year 2030;
            ``(9) $2,423,910,000 for fiscal year 2031; and
            ``(10) $2,521,990,000 for fiscal year 2032 and each 
        succeeding fiscal year.
    ``(b) Availability.--Funds appropriated under subsection (a) for a 
fiscal year are to remain available to the Secretary through the two 
fiscal years following such fiscal year.
    ``(c) Insufficient Funds.--If the amount appropriated under 
subsection (a) for a fiscal year is not sufficient to award each 
institution participating in the grant programs under sections 499P, 
499Q, and 499R a grant under this subpart equal to 100 percent of the 
grant amount determined under section 499S(b), the Secretary may 
ratably reduce the amount of each such grant or take other actions 
necessary to ensure an equitable distribution of such amount 
appropriated under subsection (a).''.

       TITLE II--NATIONAL PUBLIC SERVICE EDUCATION GRANT PROGRAM

SEC. 201. NATIONAL PUBLIC SERVICE EDUCATION GRANT PROGRAM.

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

     ``Subpart 11--National Public Service Education Grant Program

``SEC. 420T. NATIONAL PUBLIC SERVICE EDUCATION GRANT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Cost of attendance.--
                    ``(A) In general.--The term `cost of attendance' 
                means tuition, fees, on-campus room and board, books 
                and supplies, personal expenses, and transportation.
                    ``(B) On-campus room and board.--The term `on-
                campus room and board' means--
                            ``(i) the cost to a student of a double 
                        room on campus; and
                            ``(ii) the cost of a resident student meal 
                        plan.
            ``(2) Eligible institution.--The term `eligible 
        institution' means a public 4-year institution of higher 
        education or a private, nonprofit 4-year institution of higher 
        education.
            ``(3) Eligible student.--The term `eligible student' means 
        a student who--
                    ``(A) has received an associate's degree or has 
                earned not less than 60 credits toward a baccalaureate 
                degree;
                    ``(B) is enrolled, at an eligible institution 
                awarded a grant under this section, on a full-time 
                basis in a course of study that will lead to employment 
                in a public service job; and
                    ``(C) has submitted a Free Application for Federal 
                Student Aid (FAFSA) to the Department.
            ``(4) Public service job.--The term `public service job' 
        has the meaning given the term in section 455(m)(3)(B).
    ``(b) Establishment of Program.--The Secretary shall establish a 
National Public Service Education Grant program to assist in paying for 
the cost of attendance for an undergraduate education to students who 
commit to work for not less than 3 years in a public service job upon 
completion of their baccalaureate degree.
    ``(c) Grants From the Department to Eligible Institutions.--
            ``(1) In general.--The Secretary shall award grants to 
        eligible institutions to enable the eligible institutions to 
        award grants to eligible students who commit to work for not 
        less than 3 years in a public service job upon completion of 
        their baccalaureate degree.
            ``(2) Duration.--Grants awarded to eligible institutions 
        under this subsection shall be 5 years in duration. Subject to 
        subsection (e), such a grant may be extended for additional 5-
        year periods.
            ``(3) Amounts.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall award a grant to 
                an eligible institution under this subsection for a 
                fiscal year in an amount equal to the lesser of--
                            ``(i) the average annual cost of in-State 
                        tuition, fees, and on-campus room and board in 
                        the State in which the institution is located 
                        at a public 4-year institution of higher 
                        education during the fiscal year multiplied by 
                        the number of eligible students enrolled at the 
                        institution who apply for a grant under this 
                        section during the fiscal year; or
                            ``(ii) the actual annual cost of tuition, 
                        fees, and on-campus room and board at the 
                        eligible institution during the fiscal year 
                        multiplied by the number of eligible students 
                        enrolled at the institution who apply for a 
                        grant under this section during the fiscal 
                        year.
                    ``(B) Nontraditional calendar.--The calculation of 
                the cost of tuition, fees, and on-campus room and board 
                under subparagraph (A) with respect to an eligible 
                student who applies for a grant under this section for 
                enrollment during the summer or other nontraditional 
                period shall be the cost of the cost of tuition, fees, 
                and on-campus room and board for such summer or other 
                nontraditional period.
            ``(4) Applications.--The Secretary shall design an 
        application for eligible institutions to participate in the 
        grant program under this subsection that includes a description 
        of how the eligible institution, if awarded a grant under this 
        subsection, will provide services to students as follows:
                    ``(A) Provide comprehensive academic and student 
                support services for eligible students awarded grants 
                under this section, including mentoring and advising, 
                particularly for first-generation and minority 
                students.
                    ``(B) Provide accelerated learning opportunities 
                for eligible students awarded grants under this section 
                to receive their baccalaureate degree and any required 
                certificate or license to work in their respective 
                public service job in less than 2 years if an eligible 
                student seeks to complete the degree in less than 2 
                years.
                    ``(C) Foster opportunities for eligible students 
                awarded grants under this section to connect with 
                potential public service job employers through the 
                Corporation for National and Community Service.
                    ``(D) Any additional information determined 
                necessary by the Secretary.
    ``(d) Grants to Eligible Students.--
            ``(1) In general.--Each eligible institution that receives 
        a grant under subsection (c) shall award grants to eligible 
        students enrolled at the institution.
            ``(2) Application.--An eligible student who desires to 
        receive a grant under this section shall submit an application 
        to the eligible institution that includes the following:
                    ``(A) An agreement to work for not less than 3 
                years in a public service job upon completion of their 
                baccalaureate degree.
                    ``(B) Information that demonstrates that the 
                student is an eligible student for purposes of section 
                484.
                    ``(C) Information that demonstrates that the 
                student has received counseling from the Department 
                that explains the terms and conditions of the grant 
                award.
                    ``(D) Any additional information determined 
                necessary by the Secretary.
            ``(3) Grant amount.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an eligible institution shall award a 
                grant to an eligible student enrolled at the 
                institution for an academic year in an amount equal to 
                the total grant amount received by the eligible 
                institution under subsection (c) for the fiscal year 
                preceding the academic year divided by the number of 
                students to whom the eligible institution awards grants 
                under this subsection for such academic year.
                    ``(B) Nontraditional calendar.--An eligible 
                institution shall award a grant to an eligible student 
                who applies for a grant under this section for 
                enrollment during the summer or other nontraditional 
                period in an amount, from the total grant amount 
                received by the eligible institution under subsection 
                (c), that is prorated to reflect the cost of tuition, 
                fees, and on-campus room and board for such summer or 
                other nontraditional period.
            ``(4) Cost of attendance beyond grant amount.--
                    ``(A) Amounts not covered by npseg grants.--
                            ``(i) Public institutions.--
                                    ``(I) In general.--An eligible 
                                institution that is a public 
                                institution of higher education shall 
                                cover the excess costs to meet the 
                                difference between the in-State 
                                tuition, fees, and on-campus room and 
                                board at the institution and the amount 
                                awarded to the eligible student through 
                                the grant award under paragraph (3), 
                                through a combination of grant and 
                                work-study awards under this title for 
                                which the eligible student may be 
                                eligible, campus-based aid programs, 
                                State-based merit or need-based aid, or 
                                other institutional-based merit- or 
                                need-based aid. An eligible institution 
                                that is a public institution of higher 
                                education may cover, with respect to an 
                                eligible student, any amounts of the 
                                cost of attendance that are in excess 
                                of the total amount awarded to the 
                                eligible student through the grant 
                                award under paragraph (3) and the 
                                amount of excess costs provided under 
                                this subclause based on the 
                                demonstrated financial need of the 
                                student.
                                    ``(II) Student contribution.--The 
                                eligible student shall be responsible 
                                for any amounts of the cost of 
                                attendance that are in excess of the 
                                total amount awarded to the eligible 
                                student through the grant award under 
                                paragraph (3) and the amount of excess 
                                costs provided under subclause (I). The 
                                eligible student may be eligible for 
                                Federal student aid in accordance with 
                                subparagraph (B) for the remaining cost 
                                of attendance amount for which the 
                                student is responsible.
                            ``(ii) Private institution.--
                                    ``(I) Matching amount.--
                                            ``(aa) In general.--An 
                                        eligible institution that is a 
                                        private, nonprofit institution 
                                        of higher education shall--

                                                    ``(AA) with respect 
                                                to an eligible student 
                                                described in item (bb), 
                                                cover excess costs 
                                                toward meeting an 
                                                eligible student's cost 
                                                of attendance in an 
                                                amount equal to or 
                                                greater than the amount 
                                                of the grant award to 
                                                the eligible student 
                                                described in paragraph 
                                                (3); and

                                                    ``(BB) with respect 
                                                to an eligible student 
                                                not described in item 
                                                (bb), not be obligated 
                                                to provide additional 
                                                institutional-based 
                                                financial aid to such 
                                                student.

                                            ``(bb) Eligible students.--
                                        An eligible student is 
                                        described in this item if the 
                                        student's (or the student's 
                                        parents' in the case of a 
                                        dependent student) adjusted 
                                        gross income for the taxable 
                                        year that is 1 year prior to 
                                        the taxable year that ends 
                                        immediately prior to the 
                                        beginning of the first award 
                                        year of the program under this 
                                        section is equal to or less 
                                        than $125,000, indexed for 
                                        inflation by regulation of the 
                                        Secretary.
                                            ``(cc) Source of aid.--The 
                                        required amount described in 
                                        item (aa)(AA) may be provided 
                                        through a combination of grant 
                                        and work-study awards under 
                                        this title for which the 
                                        eligible student may be 
                                        eligible, campus-based aid 
                                        programs, State-based merit or 
                                        need-based aid, or other 
                                        institutional-based merit- or 
                                        need-based aid.
                                    ``(II) Student contribution.--The 
                                eligible student shall be responsible 
                                for any amounts of the cost of 
                                attendance that are in excess of the 
                                total amount awarded to that eligible 
                                student through the grant award under 
                                paragraph (3) and the amount of excess 
                                costs provided under subclause (I). The 
                                eligible student may be eligible for 
                                Federal student aid in accordance with 
                                subparagraph (B) for the remaining cost 
                                of attendance amount for which the 
                                student is responsible.
                            ``(iii) Student choice.--An eligible 
                        student who receives a Federal work-study award 
                        by an eligible institution to meet the cost of 
                        attendance beyond a grant awarded under this 
                        section may choose to decline the Federal work-
                        study award and take out a Federal Direct 
                        Unsubsidized Stafford Loan. An eligible 
                        institution shall be considered to have met the 
                        institution's responsibilities if a student 
                        chooses to take out such a loan in lieu of a 
                        Federal work-study award.
                    ``(B) First dollar award.--An eligible institution 
                shall consider the grant award under this subsection as 
                the first dollar award, to be available prior to other 
                funds awarded by the Department of Education under this 
                title, the State involved, or the institution.
                    ``(C) Housing.--An eligible student who receives a 
                grant under this subsection may use the grant amounts 
                for off-campus housing but the student may not use such 
                grant amounts for any amounts for such off-campus 
                housing that are in excess of the cost of on-campus 
                room and board.
            ``(5) Classes in nontraditional calendars.--An eligible 
        student who receives a grant under this subsection may use the 
        grant amounts for enrollment during any period of study.
    ``(e) Institutional Accountability.--
            ``(1) In general.--Each eligible institution that receives 
        a grant under subsection (c) shall--
                    ``(A) provide comprehensive academic and student 
                support services for eligible students awarded grants 
                under this section, including mentoring and advising, 
                particularly for first-generation and minority 
                students;
                    ``(B) provide accelerated learning opportunities 
                for eligible students awarded grants under this section 
                to receive their baccalaureate degree and any required 
                certificate or license to work in their respective 
                public service job in less than 2 years if an eligible 
                student seeks to complete the degree in less than 2 
                years; and
                    ``(C) foster opportunities for eligible students 
                awarded grants under this section to connect with 
                potential public service job employers through the 
                Corporation for National and Community Service.
            ``(2) Biennial report.--
                    ``(A) In general.--Each eligible institution that 
                receives a grant under subsection (c) shall submit a 
                biennial report to the Secretary describing the 
                following:
                            ``(i) Academic and student support services 
                        offered to eligible students awarded grants 
                        under this section.
                            ``(ii) Such students' progress towards 
                        baccalaureate degree completion and graduation.
                            ``(iii) Outreach to potential public 
                        service job employers for the eligible students 
                        awarded grants under this section.
                    ``(B) Continuing grant awards to eligible 
                institutions.--The Secretary may continue grant awards 
                to an eligible institution under subsection (c) after 
                the initial 5-year grant period for additional 5-year 
                periods if--
                            ``(i) the institution complies with the 
                        requirements of paragraph (1); and
                            ``(ii) the eligible students awarded grants 
                        under this section who are enrolled at the 
                        institution have a baccalaureate degree 
                        graduation rate that meets or exceeds a rate 
                        determined appropriate by the Secretary.
                    ``(C) Discontinuing grant awards to eligible 
                institutions.--
                            ``(i) In general.--The Secretary may 
                        discontinue grant awards to an eligible 
                        institution under subsection (c) after the 
                        initial 5-year grant period based on the 
                        outcome of the biennial reports under 
                        subparagraph (A).
                            ``(ii) Notification.--Prior to the 
                        Secretary discontinuing a grant award under 
                        clause (i), the Secretary shall notify the 
                        institution, prior to the start of the 5th year 
                        of the 5-year grant period, in a publically 
                        available format, that the institution is, or 
                        is potentially, out of compliance with the 
                        requirements of the grant award and may have 
                        the institution's grant awards discontinued.
                            ``(iii) Modifications.--In the 5th year of 
                        the 5-year grant period, an eligible 
                        institution may make modifications to the 
                        institution's grant program and appeal to the 
                        Secretary for a renewal of the institution's 
                        grant.
                            ``(iv) Decision.--The Secretary, prior to 
                        the conclusion of the 5-year grant period, 
                        shall render a decision on whether to continue 
                        grant awards to an eligible institution.
                            ``(v) Remaining responsibility.--If the 
                        Secretary discontinues grant awards to an 
                        eligible institution under subsection (c), the 
                        institution shall be responsible for 
                        maintaining academic and student support 
                        services and providing the full remaining costs 
                        for eligible students awarded a grant under 
                        this section prior to such discontinuation to 
                        receive their baccalaureate degree debt free.
            ``(3) Institutional prohibitions.--Each eligible 
        institution that receives a grant under subsection (c) may 
        not--
                    ``(A) use grant funds for administrative purposes; 
                or
                    ``(B) establish different tuition prices between 
                eligible students who receive grants under this section 
                and students who do not receive grants under this 
                section for pursuing the same course of study.
    ``(f) Student Accountability.--
            ``(1) Enrollment; gpa; service.--
                    ``(A) In general.--An eligible student awarded a 
                grant under this section shall--
                            ``(i) maintain full-time enrollment in 
                        order to complete the student's baccalaureate 
                        degree in not more than 2 years; and
                            ``(ii) maintain satisfactory academic 
                        progress, defined as a 3.0 grade point average 
                        (GPA) or higher, and meet all other 
                        institutional standards for academic progress.
                    ``(B) Two weeks of service.--
                            ``(i) In general.--Except as otherwise 
                        provided in this subparagraph, an eligible 
                        student awarded a grant under this section 
                        shall serve for 80 hours as a participant in a 
                        Corporation for National and Community Service 
                        national service project for each year the 
                        eligible student receives the grant. The 
                        eligible institution shall assist in placing 
                        the eligible student in such a project relevant 
                        to the eligible student's course of study. Such 
                        required hours may be completed at any point 
                        during the student's enrollment but shall be 
                        completed prior to the date the eligible 
                        student receives the student's baccalaureate 
                        degree.
                            ``(ii) Other project.--If an eligible 
                        student resides in an area without a local 
                        Corporation for National and Community Service 
                        national service project available, the student 
                        may instead participate in a service project 
                        with a community action agency, a local 
                        government agency, or an organization described 
                        in section 501(c)(3) of the Internal Revenue 
                        Code of 1986.
                            ``(iii) Medical exemption.--The Secretary 
                        may grant an eligible student a medical 
                        exemption from the service commitment under 
                        this subparagraph if the student becomes 
                        medically unable to complete the service 
                        commitment over the course of the academic 
                        year. An eligible student granted such an 
                        exemption shall complete the service commitment 
                        upon recovery without risking eligibility 
                        status in the grant program under this section.
            ``(2) Satisfactory progress.--
                    ``(A) After one year.--In the case in which an 
                eligible student awarded a grant under this section 
                does not maintain satisfactory academic progress, as 
                described in paragraph (1)(A)(ii), after the first 
                academic year for which the student received the grant, 
                the student shall--
                            ``(i) serve an additional year in a public 
                        service job beyond the 3-year commitment upon 
                        receiving the student's baccalaureate degree; 
                        and
                            ``(ii) receive additional academic supports 
                        from the eligible institution in which the 
                        student is enrolled.
                    ``(B) After two years.--In the case in which an 
                eligible student awarded a grant under this section 
                does not receive a baccalaureate degree after the 
                second academic year for which the student received the 
                grant, the total of the grant award amount and 
                remaining funds provided by the institution shall be 
                treated as a Federal Direct Unsubsidized Stafford Loan 
                under part D of title IV, and shall be subject to 
                repayment, as described in paragraph (4).
                    ``(C) Appeals.--In the case in which an eligible 
                student awarded a grant under this section does not 
                maintain satisfactory academic progress, as described 
                in paragraph (1)(A)(ii), after the first academic year 
                for which the student received the grant, the student 
                may appeal the decision to serve an additional year, as 
                described in subparagraph (A)(i). The appeal shall be 
                made in writing to the eligible institution and include 
                an academic plan approved by the student's adviser. The 
                academic plan shall show a clear pathway to graduation 
                within 1 year.
            ``(3) Public service job work obligation.--
                    ``(A) In general.--Except as provided in paragraph 
                (2)(A)(i) and subparagraph (C), an eligible student 
                awarded a grant under this section shall work for not 
                less than 3 years in a public service job after 
                receiving the student's baccalaureate degree. Such 3 
                years (or 4 years, in the case of a scenario described 
                in paragraph (2)(A)(i)) may be consecutive or 
                nonconsecutive but shall be completed not later than 5 
                years (or 6 years, in the case of a scenario described 
                in paragraph (2)(A)(i)) after the date the student 
                receives the student's baccalaureate degree.
                    ``(B) Notification.--An eligible student awarded a 
                grant under this section shall notify the Department, 
                utilizing a form designed by the Secretary, of the 
                student's compliance or noncompliance with subparagraph 
                (A) annually until such student completes the student's 
                work obligation.
                    ``(C) Deferment for graduate school.--The work 
                obligation described in subparagraph (A) of an eligible 
                student awarded a grant under this section who enrolls 
                as a full-time student in a post-baccalaureate degree 
                program not later than 3 years after the date the 
                student receives the student's baccalaureate degree 
                shall be deferred during the period of such full-time 
                enrollment. Any years of service completed prior to 
                full-time enrollment in a post-baccalaureate degree 
                program shall count toward such work obligation.
            ``(4) Repayment for noncompliance.--In the event that an 
        eligible student awarded a grant under this section fails or 
        refuses to comply with the work obligation as described in 
        paragraph (3), or the student does not receive a baccalaureate 
        degree after the second academic year for which the student 
        received the grant, as described in paragraph (2)(B), the sum 
        of the amounts of any grants received by the student shall, 
        upon a determination of such a failure or refusal in such 
        service obligation or failure to receive a baccalaureate 
        degree, be treated as a Federal Direct Unsubsidized Stafford 
        Loan under part D of title IV, and shall be subject to 
        repayment, together with interest thereon accruing from the 
        date of the grant award, in accordance with terms and 
        conditions specified by the Secretary in regulations under this 
        section.
            ``(5) Medical exemption.--The Secretary may grant an 
        eligible student awarded a grant under this section a medical 
        exemption--
                    ``(A) from the requirement of maintaining 
                satisfactory academic progress under paragraph 
                (1)(A)(ii); or
                    ``(B) from a term or condition of the work 
                obligation of the student if the student becomes 
                medically unable to complete the student's studies or 
                public service job work obligation.

``SEC. 420U. NATIONAL PUBLIC SERVICE EDUCATION GRANT PROGRAM FOR 
              MINORITY-SERVING INSTITUTIONS AND HBCUS.

    ``(a) Definitions.--In this section:
            ``(1) Eligible institution.--The term `eligible 
        institution' means a minority-serving institution or 
        historically black college or university that is a public 4-
        year institution of higher education or a private, nonprofit 4-
        year institution of higher education.
            ``(2) Eligible student.--The term `eligible student' means 
        a student who--
                    ``(A) has received an associate's degree or has 
                earned not less than 60 credits toward a baccalaureate 
                degree;
                    ``(B) is enrolled, at an eligible institution 
                awarded a grant under this section, on a full-time 
                basis in a course of study that will lead to employment 
                in a public service job; and
                    ``(C) has submitted a Free Application for Federal 
                Student Aid (FAFSA) to the Department.
            ``(3) Historically black college or university.--The term 
        `historically black college or university' means a part B 
        institution described in section 322(2).
            ``(4) Minority-serving institution.--The term `minority-
        serving institution' means any public or nonprofit institution 
        of higher education--
                    ``(A) described in paragraphs (2) through (7) of 
                section 371(a); and
                    ``(B) designated as a minority-serving institution 
                by the Secretary.
            ``(5) On-campus room and board.--The term `on-campus room 
        and board' means--
                    ``(A) the cost to a student of a double room on 
                campus; and
                    ``(B) the cost of a resident student meal plan.
            ``(6) Public service job.--The term `public service job' 
        has the meaning given the term in section 455(m)(3)(B).
    ``(b) Establishment of Program.--The Secretary shall establish a 
National Public Service Education Grant program for eligible 
institutions to provide a debt-free undergraduate education to students 
who commit to work for not less than 3 years in a public service job 
upon completion of their baccalaureate degree.
    ``(c) Grants From the Department to Eligible Institutions.--
            ``(1) In general.--The Secretary shall award grants to 
        eligible institutions to enable the eligible institutions to 
        award grants to eligible students who commit to work for not 
        less than 3 years in a public service job upon completion of 
        their baccalaureate degree.
            ``(2) Duration.--Grants awarded to eligible institutions 
        under this subsection shall be 5 years in duration. Subject to 
        subsection (e), such a grant may be extended for additional 5-
        year periods.
            ``(3) Amounts.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall award a grant to 
                an eligible institution under this subsection for a 
                fiscal year in an amount equal to the actual annual 
                cost of in-State tuition, fees, and on-campus room and 
                board at the eligible institution during the fiscal 
                year multiplied by the number of eligible students 
                enrolled at the institution who apply for a grant under 
                this section during the fiscal year.
                    ``(B) Nontraditional calendar.--The calculation of 
                the cost of tuition, fees, and on-campus room and board 
                under subparagraph (A) with respect to an eligible 
                student who applies for a grant under this section for 
                enrollment during the summer or other nontraditional 
                period shall be the cost of the cost of tuition, fees, 
                and on-campus room and board for such summer or other 
                nontraditional period.
            ``(4) Applications.--The Secretary shall design an 
        application for eligible institutions to participate in the 
        grant program under this subsection that includes a description 
        of how the eligible institution, if awarded a grant under this 
        subsection, will provide services to students as follows:
                    ``(A) Provide comprehensive academic and student 
                support services for eligible students awarded grants 
                under this section, including mentoring and advising, 
                particularly for first-generation and minority 
                students.
                    ``(B) Provide accelerated learning opportunities 
                for eligible students awarded grants under this section 
                to receive their baccalaureate degree and any required 
                certificate or license to work in their respective 
                public service job in less than 2 years if an eligible 
                student seeks to complete the degree in less than 2 
                years.
                    ``(C) Foster opportunities for eligible students 
                awarded grants under this section to connect with 
                potential public service job employers through the 
                Corporation for National and Community Service.
                    ``(D) Any additional information determined 
                necessary by the Secretary.
    ``(d) Grants to Eligible Students.--
            ``(1) In general.--Each eligible institution that receives 
        a grant under subsection (c) shall award grants to eligible 
        students enrolled at the institution.
            ``(2) Application.--An eligible student who desires to 
        receive a grant under this section shall submit an application 
        to the eligible institution that includes the following:
                    ``(A) An agreement to work for not less than 3 
                years in a public service job upon completion of their 
                baccalaureate degree.
                    ``(B) Information that demonstrates that the 
                student is an eligible student for purposes of section 
                484.
                    ``(C) Information that demonstrates that the 
                student has received counseling from the Department 
                that explains the terms and conditions of the grant 
                award.
                    ``(D) Any additional information determined 
                necessary by the Secretary.
            ``(3) Grant amount.--
                    ``(A) In general.--An eligible institution shall 
                award a grant to an eligible student enrolled at the 
                institution for an academic year in an amount equal to 
                the total grant amount received by the eligible 
                institution under subsection (c) for the fiscal year 
                preceding the academic year divided by the number of 
                students to whom the eligible institution awards grants 
                under this subsection for such academic year.
                    ``(B) Nontraditional calendar.--An eligible 
                institution shall award a grant to an eligible student 
                who applies for a grant under this section for 
                enrollment during the summer or other nontraditional 
                period in an amount, from the total grant amount 
                received by the eligible institution under subsection 
                (c), that is prorated to reflect the cost of tuition, 
                fees, and on-campus room and board for such summer or 
                other nontraditional period.
            ``(4) Cost of attendance beyond grant amount.--
                    ``(A) Amounts not covered by npseg grants.--
                            ``(i) Public institution.--An eligible 
                        institution that is a public institution of 
                        higher education may cover, with respect to an 
                        eligible student, any amounts of the cost of 
                        attendance that are in excess of the total 
                        amount awarded to the eligible student through 
                        the grant award under paragraph (3), based on 
                        the demonstrated financial need of the student. 
                        For the remaining costs, the eligible student 
                        enrolled at an eligible institution that is a 
                        public institution shall be responsible for any 
                        amounts of the cost of attendance that are in 
                        excess of the total amount awarded to that 
                        eligible student through the grant award under 
                        paragraph (3) and any amount provided pursuant 
                        to the preceding sentence. The eligible student 
                        may be eligible for Federal student aid in 
                        accordance with subparagraph (B) for the 
                        remaining cost of attendance amount for which 
                        the student is responsible.
                            ``(ii) Private institution.--
                                    ``(I) In general.--An eligible 
                                institution that is a private, 
                                nonprofit institution of higher 
                                education shall--
                                            ``(aa) with respect to an 
                                        eligible student described in 
                                        subclause (II), cover excess 
                                        costs toward meeting an 
                                        eligible student's cost of 
                                        attendance in an amount equal 
                                        to or greater than the amount 
                                        of the grant award to the 
                                        eligible student described in 
                                        paragraph (3); and
                                            ``(bb) with respect to an 
                                        eligible student not described 
                                        in subclause (II), not be 
                                        obligated to provide additional 
                                        institutional-based financial 
                                        aid to such student.
                                    ``(II) Eligible students.--An 
                                eligible student is described in this 
                                subclause if the student's (or the 
                                student's parents' in the case of a 
                                dependent student) adjusted gross 
                                income for the taxable year that is 1 
                                year prior to the taxable year that 
                                ends immediately prior to the beginning 
                                of the first award year of the program 
                                under this section is equal to or less 
                                than $125,000, indexed for inflation by 
                                regulation of the Secretary.
                                    ``(III) Source of aid.--The 
                                required amount described in subclause 
                                (I)(aa) may be provided through a 
                                combination of grant and work-study 
                                awards under this title for which the 
                                eligible student may be eligible, 
                                campus-based aid programs, State-based 
                                merit or need-based aid, or other 
                                institutional-based merit- or need-
                                based aid.
                                    ``(IV) Student contribution.--The 
                                eligible student shall be responsible 
                                for any amounts of the cost of 
                                attendance that are in excess of the 
                                total amount awarded to that eligible 
                                student through the grant award under 
                                paragraph (3) and the amount of excess 
                                costs provided under subclause (I). The 
                                eligible student may be eligible for 
                                Federal student aid in accordance with 
                                subparagraph (B) for the remaining cost 
                                of attendance amount for which the 
                                student is responsible.
                            ``(iii) Student choice.--An eligible 
                        student who receives a Federal work-study award 
                        by an eligible institution to meet the cost of 
                        attendance beyond a grant awarded under this 
                        section may choose to decline the Federal work-
                        study award and take out a Federal Direct 
                        Unsubsidized Stafford Loan. An eligible 
                        institution shall be considered to have met the 
                        institution's responsibilities if a student 
                        chooses to take out such a loan in lieu of a 
                        Federal work-study award.
                    ``(B) First dollar award.--In calculating an 
                eligible student's financial need to cover excess costs 
                described in subparagraph (A), the eligible institution 
                shall consider the grant award under this subsection as 
                the first dollar award, to be available prior to other 
                funds awarded by the Department of Education under this 
                title, the State involved, or the institution. If a 
                grant awarded to an eligible student under this section 
                is equal to the cost of tuition, fees, and on-campus 
                room and board for such student, the eligible 
                institution shall not be required to provide additional 
                institutional scholarship or grant based aid to the 
                eligible student.
                    ``(C) Housing.--An eligible student who receives a 
                grant under this subsection may use the grant amounts 
                for off-campus housing but the student may not use such 
                grant amounts for any amounts for such off-campus 
                housing that are in excess of the cost of on-campus 
                room and board.
            ``(5) Classes in nontraditional calendars.--An eligible 
        student who receives a grant under this subsection may use the 
        grant amounts for enrollment during any period of study.
    ``(e) Institutional Accountability.--
            ``(1) In general.--Each eligible institution that receives 
        a grant under subsection (c) shall--
                    ``(A) provide comprehensive academic and student 
                support services for eligible students awarded grants 
                under this section, including mentoring and advising, 
                particularly for first-generation and minority 
                students;
                    ``(B) provide accelerated learning opportunities 
                for eligible students awarded grants under this section 
                to receive their baccalaureate degree and any required 
                certificate or license to work in their respective 
                public service job in less than 2 years if an eligible 
                student seeks to complete the degree in less than 2 
                years; and
                    ``(C) foster opportunities for eligible students 
                awarded grants under this section to connect with 
                potential public service job employers through the 
                Corporation for National and Community Service.
            ``(2) Biennial report.--
                    ``(A) In general.--Each eligible institution that 
                receives a grant under subsection (c) shall submit a 
                biennial report to the Secretary describing the 
                following:
                            ``(i) Academic and student support services 
                        offered to eligible students awarded grants 
                        under this section.
                            ``(ii) Such students' progress towards 
                        baccalaureate degree completion and graduation.
                            ``(iii) Outreach to potential public 
                        service job employers for the eligible students 
                        awarded grants under this section.
                    ``(B) Continuing grant awards to eligible 
                institutions.--The Secretary may continue grant awards 
                to an eligible institution under subsection (c) after 
                the initial 5-year grant period for additional 5-year 
                periods if--
                            ``(i) the institution complies with the 
                        requirements of paragraph (1); and
                            ``(ii) the eligible students awarded grants 
                        under this section who are enrolled at the 
                        institution have a baccalaureate degree 
                        graduation rate that meets or exceeds a rate 
                        determined appropriate by the Secretary.
                    ``(C) Discontinuing grant awards to eligible 
                institutions.--
                            ``(i) In general.--The Secretary may 
                        discontinue grant awards to an eligible 
                        institution under subsection (c) after the 
                        initial 5-year grant period based on the 
                        outcome of the biennial reports under 
                        subparagraph (A).
                            ``(ii) Notification.--Prior to the 
                        Secretary discontinuing a grant award under 
                        clause (i), the Secretary shall notify the 
                        institution, prior to the start of the 5th year 
                        of the 5-year grant period, in a publically 
                        available format, that the institution is, or 
                        is potentially, out of compliance with the 
                        requirements of the grant award and may have 
                        the institution's grant awards discontinued.
                            ``(iii) Modifications.--In the 5th year of 
                        the 5-year grant period, an eligible 
                        institution may make modifications to the 
                        institution's grant program and appeal to the 
                        Secretary for a renewal of the institution's 
                        grant.
                            ``(iv) Decision.--The Secretary, prior to 
                        the conclusion of the 5-year grant period, 
                        shall render a decision on whether to continue 
                        grant awards to an eligible institution.
                            ``(v) Remaining responsibility.--If the 
                        Secretary discontinues grant awards to an 
                        eligible institution under subsection (c), the 
                        institution shall be responsible for 
                        maintaining academic and student support 
                        services and providing the full remaining costs 
                        for eligible students awarded a grant under 
                        this section prior to such discontinuation to 
                        receive their baccalaureate degree debt free.
            ``(3) Institutional prohibitions.--Each eligible 
        institution that receives a grant under subsection (c) may 
        not--
                    ``(A) use grant funds for administrative purposes; 
                or
                    ``(B) establish different tuition prices between 
                eligible students who receive grants under this section 
                and students who do not receive grants under this 
                section for pursuing the same course of study.
    ``(f) Student Accountability.--
            ``(1) Enrollment; gpa; service.--
                    ``(A) In general.--An eligible student awarded a 
                grant under this section shall--
                            ``(i) maintain full-time enrollment in 
                        order to complete the student's baccalaureate 
                        degree in not more than 2 years; and
                            ``(ii) maintain satisfactory academic 
                        progress, defined as a 3.0 grade point average 
                        (GPA) or higher, and meet all other 
                        institutional standards for academic progress.
                    ``(B) Two weeks of service.--
                            ``(i) In general.--Except as otherwise 
                        provided in this subparagraph, an eligible 
                        student awarded a grant under this section 
                        shall serve for 80 hours as a participant in a 
                        Corporation for National and Community Service 
                        national service project for each year the 
                        eligible student receives the grant. The 
                        eligible institution shall assist in placing 
                        the eligible student in such a project relevant 
                        to the eligible student's course of study. Such 
                        required hours may be completed at any point 
                        during the student's enrollment but shall be 
                        completed prior to the date the eligible 
                        student receives the student's baccalaureate 
                        degree.
                            ``(ii) Other project.--If an eligible 
                        student resides in an area without a local 
                        Corporation for National and Community Service 
                        national service project available, the student 
                        may instead participate in a service project 
                        with a community action agency, a local 
                        government agency, or an organization described 
                        in section 501(c)(3) of the Internal Revenue 
                        Code of 1986.
                            ``(iii) Medical exemption.--The Secretary 
                        may grant an eligible student a medical 
                        exemption from the service commitment under 
                        this subparagraph if the student becomes 
                        medically unable to complete the service 
                        commitment over the course of the academic 
                        year. An eligible student granted such an 
                        exemption shall complete the service commitment 
                        upon recovery without risking eligibility 
                        status in the grant program under this section.
            ``(2) Satisfactory progress.--
                    ``(A) After one year.--In the case in which an 
                eligible student awarded a grant under this section 
                does not maintain satisfactory academic progress, as 
                described in paragraph (1)(A)(ii), after the first 
                academic year for which the student received the grant, 
                the student shall--
                            ``(i) serve an additional year in a public 
                        service job beyond the 3-year commitment upon 
                        receiving the student's baccalaureate degree; 
                        and
                            ``(ii) receive additional academic supports 
                        from the eligible institution in which the 
                        student is enrolled.
                    ``(B) After two years.--In the case in which an 
                eligible student awarded a grant under this section 
                does not receive a baccalaureate degree after the 
                second academic year for which the student received the 
                grant, the total of the grant award amount and 
                remaining funds provided by the institution shall be 
                treated as a Federal Direct Unsubsidized Stafford Loan 
                under part D of title IV, and shall be subject to 
                repayment, as described in paragraph (4).
                    ``(C) Appeals.--In the case in which an eligible 
                student awarded a grant under this section does not 
                maintain satisfactory academic progress, as described 
                in paragraph (1)(A)(ii), after the first academic year 
                for which the student received the grant, the student 
                may appeal the decision to serve an additional year, as 
                described in subparagraph (A)(i). The appeal shall be 
                made in writing to the eligible institution and include 
                an academic plan approved by the student's adviser. The 
                academic plan shall show a clear pathway to graduation 
                within 1 year.
            ``(3) Public service job work obligation.--
                    ``(A) In general.--Except as provided in paragraph 
                (2)(A)(i) and subparagraph (C), an eligible student 
                awarded a grant under this section shall work for not 
                less than 3 years in a public service job after 
                receiving the student's baccalaureate degree. Such 3 
                years (or 4 years, in the case of a scenario described 
                in paragraph (2)(A)(i)) may be consecutive or 
                nonconsecutive but shall be completed not later than 5 
                years (or 6 years, in the case of a scenario described 
                in paragraph (2)(A)(i)) after the date the student 
                receives the student's baccalaureate degree.
                    ``(B) Notification.--An eligible student awarded a 
                grant under this section shall notify the Department, 
                utilizing a form designed by the Secretary, of the 
                student's compliance or noncompliance with subparagraph 
                (A) annually until such student completes the student's 
                work obligation.
                    ``(C) Deferment for graduate school.--The work 
                obligation described in subparagraph (A) of an eligible 
                student awarded a grant under this section who enrolls 
                as a full-time student in a post-baccalaureate degree 
                program not later than 3 years after the date the 
                student receives the student's baccalaureate degree 
                shall be deferred during the period of such full-time 
                enrollment. Any years of service completed prior to 
                full-time enrollment in a post-baccalaureate degree 
                program shall count toward such work obligation.
            ``(4) Repayment for noncompliance.--In the event that an 
        eligible student awarded a grant under this section fails or 
        refuses to comply with the work obligation as described in 
        paragraph (3), or the student does not receive a baccalaureate 
        degree after the second academic year for which the student 
        received the grant, as described in paragraph (2)(B), the sum 
        of the amounts of any grants received by the student shall, 
        upon a determination of such a failure or refusal in such 
        service obligation or failure to meet satisfactory academic 
        progress, be treated as a Federal Direct Unsubsidized Stafford 
        Loan under part D of title IV, and shall be subject to 
        repayment, together with interest thereon accruing from the 
        date of the grant award, in accordance with terms and 
        conditions specified by the Secretary in regulations under this 
        section.
            ``(5) Medical exemption.--The Secretary may grant an 
        eligible student awarded a grant under this section a medical 
        exemption--
                    ``(A) from the requirement of maintaining 
                satisfactory academic progress under paragraph 
                (1)(A)(ii); or
                    ``(B) from a term or condition of the work 
                obligation of the student if the student becomes 
                medically unable to complete the student's studies or 
                public service job work obligation.''.

      TITLE III--DEBT-FREE PUBLIC SERVICE LOAN FORGIVENESS PROGRAM

SEC. 301. DEBT-FREE PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.

    (a) In General.--Section 455(m) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(m)) is amended by adding at the end the following:
            ``(5) Debt-free public service loan forgiveness program.--
                    ``(A) In general.--Beginning after the date of 
                enactment of the Strengthening American Communities Act 
                of 2023, after the conclusion of each employment period 
                in a public service job, as described in subparagraph 
                (B), the Secretary shall cancel the percent specified 
                in such subparagraph of the total amount due on any 
                eligible Federal Direct Loan made after the date of 
                enactment of the Strengthening American Communities Act 
                of 2023 for a borrower who--
                            ``(i) is employed in such public service 
                        job;
                            ``(ii) submits an employment certification 
                        form described in subparagraph (C);
                            ``(iii) is enrolled in a repayment plan 
                        described in paragraph (1)(A); and
                            ``(iv) notifies the Department that the 
                        borrower seeks loan cancellation under this 
                        paragraph.
                    ``(B) Percent amount.--The percent of a loan that 
                shall be canceled under subparagraph (A) is as follows:
                            ``(i) In the case of a borrower who 
                        completes 2 years of employment in a public 
                        service job, 15 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                            ``(ii) In the case of a borrower who 
                        completes 4 years of employment in a public 
                        service job, 15 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                            ``(iii) In the case of a borrower who 
                        completes 6 years of employment in a public 
                        service job, 20 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                            ``(iv) In the case of a borrower who 
                        completes 8 years of employment in a public 
                        service job, 20 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                            ``(v) In the case of a borrower who 
                        completes 10 years of employment in a public 
                        service job, 30 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                    ``(C) Employment certification form.--
                            ``(i) In general.--In order to receive loan 
                        cancellation under this paragraph, a borrower 
                        shall submit to the Secretary an employment 
                        certification form that is developed by the 
                        Secretary and includes at least self-
                        certification of employment, a separate part 
                        for employer certification that indicates the 
                        dates of employment, and any additional 
                        information required by the Secretary.
                            ``(ii) Deferment.--If a borrower submits to 
                        the Secretary the employment certification form 
                        described in clause (i), during the period in 
                        which the borrower is employed in a public 
                        service job for which loan cancellation is 
                        eligible under this paragraph, the borrower's 
                        eligible Federal Direct Loan shall be placed in 
                        deferment.
                    ``(D) Interest canceled.--If a portion of a loan is 
                canceled under this paragraph for any year, the entire 
                amount of interest on such loan that accrues for such 
                year shall be canceled.
                    ``(E) No retroactivity.--A borrower may not receive 
                credit for purposes of loan forgiveness under this 
                paragraph for years of employment in a public service 
                job that occurred before the date of enactment of the 
                Strengthening American Communities Act of 2023.
                    ``(F) Leaving public service.--
                            ``(i) In general.--If a borrower who 
                        receives loan cancellation under this paragraph 
                        leaves the public service job, either 
                        voluntarily or involuntarily, for which the 
                        borrower received loan cancellation before the 
                        total amount due on the eligible Federal Direct 
                        Loan is cancelled under this paragraph, such 
                        borrower shall retain eligibility for 
                        accelerated loan cancellation under this 
                        paragraph for such eligible Federal Direct Loan 
                        if the borrower commences employment in a 
                        public service job not later than 3 years after 
                        the date the borrower left the public service 
                        job for which the borrower received loan 
                        cancellation.
                            ``(ii) Eligibility status.--If a borrower 
                        described in clause (i) commences employment in 
                        a public service job within the time period 
                        described in clause (i), such borrower shall 
                        resume eligibility for accelerated loan 
                        cancellation under this paragraph for such 
                        eligible Federal Direct Loan. Such borrower 
                        upon resumption of eligibility shall be 
                        considered to have completed the number of 
                        years of employment in a public service job at 
                        the last completed loan cancellation period 
                        described in subparagraph (B) for such 
                        borrower, even if the borrower had actually 
                        completed an additional year of employment in a 
                        public service job.
                            ``(iii) Loss of eligibility.--If a borrower 
                        described in clause (i) does not commence 
                        employment in a public service job within the 
                        time period described in clause (i), such 
                        borrower shall no longer be eligible for loan 
                        cancellation under this paragraph but may be 
                        eligible for loan cancellation for such loan 
                        under paragraph (1).''.
    (b) Notification of Program.--The Secretary of Education, in order 
to inform public servants of the benefits of the debt-free public 
service loan cancellation program established under section 455(m)(5) 
of the Higher Education Act of 1965 (20 U.S.C. 1087e(m))--
            (1) shall make guidance publicly available to the employers 
        of public servants to make public servants aware of such 
        program; and
            (2) is encouraged to work in partnership with State 
        licensing agencies to make recently licensed public servants 
        aware of such program.
                                 <all>