[Congressional Record Volume 168, Number 133 (Saturday, August 6, 2022)]
[Senate]
[Pages S4298-S4301]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5298. Mr. MERKLEY (for himself and Mr. Sanders) submitted an 
amendment intended to be proposed by him to the bill H.R. 5376, to 
provide for reconciliation pursuant to title II of S. Con. Res. 14; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                     TITLE __--EDUCATION AND LABOR

     SEC. ___. GRANTS FOR TUITION-FREE COMMUNITY COLLEGE.

       Title VII of the Higher Education Act of 1965 (20 U.S.C. 
     1133 et seq.) is amended by adding at the end the following:

                  ``PART F--AMERICA'S COLLEGE PROMISE

     ``SEC. 785. GRANT AWARDS.

       ``(a) In General.--Beginning with award year 2023-2024, 
     from amounts appropriated to carry out this part under 
     section 793 for any fiscal year, the Secretary shall award 
     grants to States and eligible Tribal Colleges and 
     Universities to pay the Federal share of expenditures needed 
     to carry out the activities and services described in section 
     789.
       ``(b) Timing of Grant Awards.--The Secretary shall award 
     grant funds under subsection (a) for an award year not less 
     than 30 days before the first day of the award year.

     ``SEC. 786. FEDERAL SHARE; STATE SHARE.

       ``(a) Federal Share.--
       ``(1) In general.--
       ``(A) Amount.--Subject to paragraph (2), the amount of the 
     Federal share of a grant under section 785 shall be based on 
     a formula that provides, for each eligible student enrolled 
     in a community college operated or controlled by the State or 
     in an eligible Tribal College or University, a per-student 
     amount (based on full-time equivalent enrollment) that is 
     equal to the applicable percent described in subparagraph 
     (B), or the percent described in paragraph (2) with respect 
     to an eligible Tribal College or University, of--
       ``(i) for the 2023-2024 award year, the median resident 
     community college tuition and fees per student in all States, 
     not weighted for enrollment, for the most recent award year 
     for which data are available; and
       ``(ii) 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.

       ``(B) Applicable percent.--The applicable percent for a 
     State receiving a grant under section 785 shall be--
       ``(i) for the 2023-2024 award year, 100 percent;
       ``(ii) for the 2024-2025 award year, 95 percent;
       ``(iii) for the 2025-2026 award year, 90 percent;
       ``(iv) for the 2026-2027 award year, 85 percent; and
       ``(v) for the 2027-2028 award year, 80 percent.
       ``(2) Tribal colleges and universities.--The amount of the 
     Federal share for an eligible Tribal College or University 
     receiving a grant under section 785 shall be the greater of--
       ``(A) 100 percent of the per-student amount determined in 
     accordance with clause (i) or

[[Page S4299]]

     (ii) of paragraph (1)(A), as applicable, with respect to 
     eligible students enrolled in such eligible Tribal College or 
     University (based on full-time equivalent enrollment); or
       ``(B) the amount that is 100 percent of the total amount 
     needed to set tuition and fees to $0 for all eligible 
     students enrolled in such eligible Tribal College or 
     University for the 2022-2023 award year, increased by the 
     percentage increase in the Consumer Price Index (as 
     determined by the Secretary) between July 1, 2022, and the 
     applicable award year, and adjusted to reflect the enrollment 
     in such eligible Tribal College or University for such 
     applicable award year.
       ``(b) State Share.--
       ``(1) Formula.--
       ``(A) In general.--The State share of a grant under section 
     785 for each award year shall be the amount needed to pay the 
     applicable percent described in subparagraph (B) of the 
     median resident community college tuition and fees in all 
     States, not weighted for enrollment, per student (based on 
     full-time equivalent enrollment) determined in accordance 
     with subsection (a)(1)(A)(i) for all eligible students 
     enrolled in a community college operated or controlled by the 
     State for such award year.
       ``(B) Applicable percent.--The applicable percent shall 
     be--
       ``(i) for the 2023-2024 award year, 0 percent;
       ``(ii) for the 2024-2025 award year, 5 percent;
       ``(iii) for the 2025-2026 award year, 10 percent;
       ``(iv) for the 2026-2027 award year, 15 percent; and
       ``(v) for the 2027-2028 award year, 20 percent.
       ``(C) Obligation to provide share.--The State shall provide 
     the State share even if the State is able to set tuition and 
     fees charged to eligible students attending community 
     colleges operated or controlled by the State to $0 as 
     required by section 788(a) without such State share.
       ``(D) No double counting funds.--Except with respect to 
     funding described in paragraph (2)(A), no funds that count 
     toward the maintenance of effort requirement under section 
     788(c) may also count toward the State share under this 
     subsection.
       ``(E) Special rule for outlying areas and territories.--
       ``(i) In general.--If the Secretary determines that 
     requiring an outlying area or territory to provide a State 
     share in accordance with this subsection would represent a 
     substantial hardship for the outlying area or territory, the 
     Secretary may reduce or waive the State share for such area 
     or territory. If the Secretary so reduces or waives the 
     amount of the State share of an outlying area or territory, 
     the Secretary shall increase the applicable percent used to 
     calculate the Federal share for such area or territory, in 
     proportion to the reduction in the applicable percent used to 
     calculate such State share.
       ``(ii) Definition.--For the purposes of this subparagraph, 
     the term `outlying area or territory' means the Commonwealth 
     of Puerto Rico, the District of Columbia, Guam, American 
     Samoa, the United States Virgin Islands, the Commonwealth of 
     the Northern Mariana Islands, and the Freely Associated 
     States.
       ``(2) Inclusion of state financial aid and local funds.--In 
     the case of a State that demonstrates to the satisfaction of 
     the Secretary that community colleges operated or controlled 
     by such State will not experience a net reduction in total 
     per-student revenue (including revenue derived from tuition 
     and fees) as compared to the preceding fiscal year in such 
     State, a State may include, as part of the State share--
       ``(A) any financial aid that is provided from State funds 
     to an eligible student and that--
       ``(i)(I) is not awarded predominantly on the basis of 
     merit, including programs awarded on the basis of predicted 
     or actual academic performance or assessments; and
       ``(II) may be used by such student to pay any component of 
     cost of attendance, as defined under section 472; and
       ``(B) any funds provided to community colleges by local 
     governments in such State for the purpose of carrying out 
     this part.
       ``(3) Relationship to maintenance of effort.--The inclusion 
     of funds described in paragraph (2) as part of a State's 
     share shall modify the maintenance of effort requirements 
     under section 788(c) in accordance with the provisions of--
       ``(A) section 791(10)(B)(iii), with respect to funds 
     included under paragraph (2)(A); and
       ``(B) section 791(10)(A)(ii), with respect to funds 
     included under paragraph (2)(B).
       ``(4) No in-kind contributions.--A State shall not include 
     in-kind contributions for purposes of the State share 
     described in paragraph (1).
       ``(c) Determining Number of Eligible Students.--
       ``(1) In general.--For purposes of subsections (a) and (b), 
     the Secretary shall, in consultation with the State or 
     eligible Tribal College or University concerned, determine 
     the estimated number of eligible students enrolled in the 
     community colleges operated or controlled by such State or in 
     such eligible Tribal College or University for the applicable 
     award year.
       ``(2) Adjustment of grant amount.--For each year for which 
     a State or eligible Tribal College or University receives a 
     grant under section 785, the Secretary shall, once final 
     enrollment data for such year are available--
       ``(A) in consultation with the State or eligible Tribal 
     College or University concerned, determine the actual number 
     of eligible students enrolled in the community colleges 
     operated or controlled by such State or in such eligible 
     Tribal College or University for the year covered by the 
     grant; and
       ``(B) adjust the Federal share of the grant amount received 
     by the State or eligible Tribal College or University and the 
     State share under subsection (b) to reflect the actual number 
     of eligible students, which may include applying the relevant 
     adjustment to such Federal share or the State share, or both, 
     in the subsequent award year.
       ``(d) Community Colleges Operated or Controlled by State to 
     Include Community Colleges Operated or Controlled by Local 
     Governments Within the State.--For purposes of this part, the 
     term `community college operated or controlled by a State' 
     shall include a community college operated or controlled by a 
     local government within such State.
       ``(e) Inapplicability of State Requirements to Eligible 
     TCUs.--The Secretary may not apply any requirements 
     applicable only to States under this part to an eligible 
     Tribal College or University, including the requirements 
     under subsection (b) and subsections (b) and (c) of section 
     788.

     ``SEC. 787. APPLICATIONS.

       ``In order to receive a grant under section 785, a State or 
     eligible Tribal College or University shall submit an 
     application to the Secretary that includes--
       ``(1) an estimate of the number of eligible students 
     enrolled in the community colleges operated or controlled by 
     the State or in the eligible Tribal College or University and 
     the cost of waiving tuition and fees for all eligible 
     students for each award year covered by the grant;
       ``(2) in the case of a State, a list of each of the 
     community colleges operated or controlled by the State;
       ``(3) an assurance that each community college operated or 
     controlled by the State, or the eligible Tribal College or 
     University, as applicable, will set community college tuition 
     and fees for eligible students to $0 as required by section 
     788(a);
       ``(4) a description of how the State or eligible Tribal 
     College or University will ensure that programs leading to a 
     recognized postsecondary credential meet the quality criteria 
     established by the State under section 122(b)(1) of the 
     Workforce Innovation and Opportunity Act (29 U.S.C. 
     3152(b)(1)) or other quality criteria determined appropriate 
     by the State or eligible Tribal College or University; and
       ``(5) an assurance that each community college operated or 
     controlled by the State or the eligible Tribal College or 
     University, as applicable, has entered into a program 
     participation agreement under section 487.

     ``SEC. 788. PROGRAM REQUIREMENTS.

       ``(a) General Requirements.--As a condition of receiving a 
     grant under section 785 in each award year, a State or 
     eligible Tribal College or University shall--
       ``(1) ensure that the total amount of tuition and fees 
     charged to an eligible student attending a community college 
     operated or controlled by the State or the eligible Tribal 
     College or University, as applicable, is $0;
       ``(2) not apply financial assistance for which an eligible 
     student qualifies to tuition or fees; and
       ``(3) not use any funds provided under this part for 
     administrative purposes relating to such grant.
       ``(b) State Requirements.--In addition to the requirements 
     under subsection (a) and as a condition of receiving a grant 
     under section 785, a State shall--
       ``(1) submit and implement 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
       ``(2) not later than 3 years after the date on which the 
     State first receives a grant under section 785, certify to 
     the Secretary that such alignment has been achieved.
       ``(c) State Maintenance of Effort.--A State receiving a 
     grant under section 785 shall be entitled to receive its full 
     allotment of funds under this part for a fiscal year only if, 
     for each year of the grant, the State provides--
       ``(1) State fiscal support for higher education per full-
     time equivalent student at a level equal to or exceeding the 
     average amount of State fiscal support for higher education 
     per full-time equivalent student provided for the 3 
     consecutive preceding fiscal years;
       ``(2) financial support for operating 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 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 fiscal years.
       ``(d) No Additional Eligibility Requirements.--A State or 
     eligible Tribal College or University that receives a grant 
     under section 785 may not impose additional eligibility 
     requirements on eligible students other than the requirements 
     under this part.

     ``SEC. 789. ALLOWABLE USES OF FUNDS.

       ``(a) In General.--Except as provided in subsection (b)--

[[Page S4300]]

       ``(1) a State shall use a grant under section 785 only to 
     provide funds to each community college operated or 
     controlled by the State to enable each such community college 
     to set community college tuition and fees for eligible 
     students to $0 as required under section 788(a); and
       ``(2) an eligible Tribal College or University shall use a 
     grant under section 785 only to set community college tuition 
     and fees for eligible students to $0 as required under 
     section 788(a).
       ``(b) Additional Uses.--If a State or an eligible Tribal 
     College or University demonstrates to the Secretary that the 
     State or eligible Tribal College or University has grant 
     funds remaining after meeting the demand for activities 
     described in subsection (a), the State or eligible Tribal 
     College or University shall use the remaining funds to carry 
     out 1 or more of the following:
       ``(1) Providing need-based financial aid to students that 
     may be used by such students to pay any component of cost of 
     attendance, as defined under section 472.
       ``(2) Reducing unmet need at public 4-year institutions of 
     higher education.
       ``(3) Improving student outcomes by implementing evidence-
     based institutional reforms or practices.
       ``(c) Supplement, Not Supplant.--Except as provided in 
     section 786(b)(2)(A), funds made available under this part 
     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.
       ``(d) Continuation of Funding.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     State or an eligible Tribal College or University receiving a 
     grant under section 785 for an award year may continue to 
     receive funding under this part for subsequent award 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 shall discontinue or 
     reduce funding of the Federal share of a grant under section 
     785 or section 790 if the State or an eligible Tribal College 
     or University has violated the terms of the grant.
       ``(e) Rule of Construction Regarding BIE Funds.--Nothing in 
     this part shall be construed to impact the availability of 
     funds from, or uses of funds provided by, the Bureau of 
     Indian Education for Tribal Colleges and Universities.

     ``SEC. 790. SUPPLEMENTAL GRANTS.

       ``(a) In General.--From amounts made available under 
     subsection (f), the Secretary shall award grants, through 
     allotments in accordance with subsection (b), to covered 
     States for the purpose of assisting the covered States in 
     reducing the costs of eliminating community college tuition 
     in accordance with this part.
       ``(b) Allotments.--For each fiscal year for which amounts 
     are available under subsection (f), each covered State shall 
     receive an allotment based on a formula developed by the 
     Secretary that--
       ``(1) provides covered States with allotments under this 
     section for each of fiscal years 2023 through 2028; and
       ``(2) accomplishes the purpose of this section.
       ``(c) Use of Funds.--A covered State receiving an allotment 
     under this section shall use the allotment to assist in 
     paying the State share of the program under this part, as 
     required under section 786(b).
       ``(d) State Share Exception.--Notwithstanding section 786 
     or any other provision of this part--
       ``(1) the Secretary shall not include amounts from 
     allotments provided under this section in the calculation of 
     the Federal share of a grant under section 785; and
       ``(2) a State may include amounts provided under this 
     section for a fiscal year for purposes of the State share 
     described in section 786(b).
       ``(e) Definition of Covered State.--In this section, the 
     term `covered State' means a State that--
       ``(1) has received a grant under section 785;
       ``(2) applies for a supplemental grant under this section, 
     in the manner determined by the Secretary; and
       ``(3) for the most recent award year for which data are 
     available, had an average community college tuition and fees 
     per in-State or in-district resident student, not weighted 
     for enrollment, that is higher than the median resident 
     community college tuition and fees per student in all States, 
     not weighted for enrollment, for such award year.
       ``(f) Appropriations.--In addition to amounts otherwise 
     available there is appropriated for fiscal year 2023, out of 
     any money in the Treasury not otherwise appropriated, 
     $2,000,000,000, to remain available until September 30, 2030.

     ``SEC. 791. DEFINITIONS.

       ``In this part:
       ``(1) 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).
       ``(2) Community college.--The term `community college' 
     means--
       ``(A) a degree-granting public institution of higher 
     education at which--
       ``(i) the highest degree awarded is an associate degree; or
       ``(ii) an associate degree is the predominant degree 
     awarded;
       ``(B) an eligible Tribal College or University;
       ``(C) a degree-granting branch campus of a 4-year public 
     institution of higher education, if, at such branch campus--
       ``(i) the highest degree awarded is an associate degree; or
       ``(ii) an associate degree is the predominant degree 
     awarded; or
       ``(D) at the designation of the Secretary, in the case of a 
     State that does not operate or control any institution that 
     meets a definition under subparagraph (A) or (C), a college 
     or similarly defined and structured academic entity--
       ``(i) that was in existence on July 1, 2022;
       ``(ii) within a 4-year public institution of higher 
     education; and
       ``(iii) at which--

       ``(I) the highest degree awarded is an associate degree; or
       ``(II) an associate degree is the predominant degree 
     awarded.

       ``(3) 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.
       ``(4) 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.
       ``(5) Eligible student.--The term `eligible student' means 
     a student who--
       ``(A) is enrolled as an undergraduate student in an 
     eligible program (as defined in section 481(b)) at a 
     community college on not less than a half-time basis;
       ``(B) in the case of a student who is enrolled in a 
     community college that charges different tuition rates on the 
     basis of in-State or in-district residency, either--
       ``(i) qualifies for in-State or in-district resident 
     tuition at such community college; or
       ``(ii) would qualify for such in-State or in-district 
     resident tuition at such community college, but for the 
     immigration status of such student;
       ``(C) has not been enrolled (whether full-time or less than 
     full-time) for more than 6 semesters (or the equivalent) for 
     which the community college tuition and fees of the student 
     were set to $0 pursuant to section 788(a);
       ``(D) is not enrolled in a dual or concurrent enrollment 
     program or early college high school; and
       ``(E) in the case of a student who is a United States 
     citizen, has filed a Free Application for Federal Student Aid 
     described in section 483 for the applicable award year for 
     which the student is enrolled.
       ``(6) Eligible tribal college or university.--The term 
     `eligible Tribal College or University' means--
       ``(A) a 2-year Tribal College or University; or
       ``(B) a degree-granting Tribal College or University--
       ``(i) at which the highest degree awarded is an associate 
     degree; or
       ``(ii) an associate degree is the predominant degree 
     awarded.
       ``(7) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 101.
       ``(8) Means-tested federal benefit program.--The term 
     `means-tested Federal benefit program' has the meaning given 
     the term in section 479.
       ``(9) Recognized postsecondary credential.--The term 
     `recognized postsecondary credential' has the meaning given 
     the term in section 3 of the Workforce Innovation and 
     Opportunity Act (29 U.S.C. 3102).
       ``(10) State fiscal support for higher education.--
       ``(A) Inclusions.--
       ``(i) 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--

       ``(I) 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; and
       ``(II) any funds described in clause (ii), if applicable.

       ``(ii) Local funds.--In the case of a State that includes, 
     as part of the State share under section 786(b)(2)(B) for an 
     award year, funds provided to community colleges by local 
     governments in such State for the purpose of carrying out 
     this part, local funds provided to community colleges 
     operated or controlled by such State for operating expenses 
     (excluding capital expenses and research and development 
     costs) shall be included in the calculation of the State 
     fiscal support for higher education for such award year under 
     clause (i).
       ``(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 786(a);
       ``(iii) funds that are included in the State share under 
     section 786(b), including funds included in the State share 
     in accordance with paragraph (2)(A) of such section;
       ``(iv) 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

[[Page S4301]]

     this paragraph is being made, subject to subparagraph (C);
       ``(v) tuition, fees, or other educational charges paid 
     directly by a student to a public institution of higher 
     education or to the State;
       ``(vi) funds for--

       ``(I) financial aid to students attending, or operating 
     expenses of--

       ``(aa) out-of-State institutions of higher education;
       ``(bb) proprietary institutions of higher education (as 
     defined in section 102(b)); or
       ``(cc) institutions of higher education not accredited by 
     an agency or association recognized by the Secretary pursuant 
     to section 496;

       ``(II) financial aid to students awarded predominantly on 
     the basis of merit, including programs awarded on the basis 
     of predicted or actual academic performance or assessments;
       ``(III) research and development; or
       ``(IV) hospitals, athletics, or other auxiliary 
     enterprises;

       ``(vii) corporate or other private donations directed to 
     one or more institutions of higher education permitted to be 
     expended by the State; or
       ``(viii) 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.
       ``(11) State fiscal support for higher education per full-
     time equivalent student.--The term `State fiscal support for 
     higher education per full-time equivalent student', when used 
     with respect to a State for a fiscal year, means the amount 
     that is equal to--
       ``(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 for 
     such previous fiscal year.
       ``(12) Tribal college or university.--The term `Tribal 
     College or University' has the meaning given such term in 
     section 316(b)(3).

     ``SEC. 792. SUNSET.

       ``(a) In General.--The authority to make grants under 
     section 785 and 790 shall expire at the end of award year 
     2027-2028.
       ``(b) Inapplicability of GEPA Contingent Extension of 
     Programs.--Section 422 of the General Education Provisions 
     Act (20 U.S.C. 1226a) shall not apply to this part.

     ``SEC. 793. APPROPRIATION.

       ``In addition to amounts otherwise available, there is 
     appropriated for fiscal year 2023, out of any money in the 
     Treasury not otherwise appropriated, such sums as may be 
     necessary, to remain available until September 30, 2030, for 
     carrying out this part (except for section 790).''.
                                 ______